Document:

Exhibit 10.7

 

EXHIBIT 1, LEASE DATA
  Two Canal Park
 Cambridge, Massachusetts 02141
 (the “Building”)

 

	
Execution Date:
    	
 
    	
October 8, 2014
    
	
 
    	
 
    	
 
    
	
Tenant:
    	
 
    	
CarGurus LLC,
   a Massachusetts limited liability company
    
	
 
    	
 
    	
 
    
	
Tenant’s Address:
    	
 
    	
One Bow Street, 4th Floor
   Cambridge, Massachusetts 02138

 

With a copy to:

Schlesinger and Buchbinder, LLP
   1200 Walnut Street
   Newton, Massachusetts 02461
   Attn: Alan J. Schlesinger, Esq.
    
	
 
    	
 
    	
 
    
	
Landlord:
    	
 
    	
BCSP Cambridge Two Property LLC,
   a Delaware limited liability company
    
	
 
    	
 
    	
 
    
	
Landlord’s Address:
    	
 
    	
c/o Beacon Capital Partners, LLC
   200 State Street, 5th Floor
   Boston, Massachusetts 02109

with a copy to:

Goulston & Storrs PC
   400 Atlantic Avenue
   Boston, Massachusetts 02110
   Attn: Two Canal Park
    
	
 
    	
 
    	
 
    
	
Building:
    	
 
    	
Two Canal Park
   Cambridge, Massachusetts 02141
    
	
 
    	
 
    	
 
    
	
Plot:
    	
 
    	
The parcel(s) of land on which the Building is   located and the other improvements thereon (including the Building, driveways   and landscaping).
    
	
 
    	
 
    	
 
    
	
Common Areas:
    	
 
    	
The common walkways and accessways located on the   Lot, as the same may be changed, from time to time.
    
	
 
    	
 
    	
 
    
	
Article 2 
    	
Premises:
    	
 
    	
The entirety of the fourth (4th) floor of the   Building, containing approximately 48,059 rentable square feet in accordance   with the latest BOMA Standard Method of Measurement, substantially as shown   on the Lease Plan, attached hereto and incorporated herein as Exhibit 2
    
				

 

Exhibit 1 - 1

 

	
 
    	
 
    	
Total Rentable Area of the Premises: 48,059 square   feet
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
Total Rentable Area of the Building: 206,567 square   feet
    
	
 
    	
 
    	
 
    
	
Section 3.1 
    	
Estimated Commencement Date:
    	
 
    	
May 1, 2015
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
Commencement Date:
    	
 
    	
As defined in Section 3.1.
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
Rent Commencement Date:
    	
 
    	
The date six (6) months after the Commencement   Date
    
	
 
    	
 
    	
 
    	
 
    
	
Section 3.2 
    	
Expiration Date:
    	
 
    	
The date eighty-four (84) months (plus the partial   month, if any) after the Rent Commencement Date, unless earlier terminated or   extended per Article 29.16
    
	
 
    	
 
    	
 
    	
 
    
	
Article 5 
    	
Permitted Use:
    	
 
    	
General business offices.
    
	
 
    	
 
    	
 
    	
 
    
	
Article 6 
    	
Yearly Rent:
    	
 
    	
 
    

 

	
Period
    	
 
    	
Yearly Rent
    	
 
    	
Monthly
   Payment
    	
 
    	
Per Rentable
   Square Foot
    	
 
    
	
Commencement Date — day before Rent Commencement Date
    	
 
    	
$
    	
0
    	
 
    	
$
    	
0
    	
 
    	
$
    	
0
    	
 
    
	
Lease Year 1
    	
 
    	
$
    	
2,643,245.00
    	
 
    	
$
    	
220,270.42
    	
 
    	
$
    	
55.00
    	
 
    
	
Lease Year 2
    	
 
    	
$
    	
2,691,304.00
    	
 
    	
$
    	
224,275.33
    	
 
    	
$
    	
56.00
    	
 
    
	
Lease Year 3
    	
 
    	
$
    	
2,739,363.00
    	
 
    	
$
    	
228,280.25
    	
 
    	
$
    	
57.00
    	
 
    
	
Lease Year 4
    	
 
    	
$
    	
2,787,422.00
    	
 
    	
$
    	
232,285.17
    	
 
    	
$
    	
58.00
    	
 
    
	
Lease Year 5
    	
 
    	
$
    	
2,835,481.00
    	
 
    	
$
    	
236,290.08
    	
 
    	
$
    	
59.00
    	
 
    
	
Lease Year 6
    	
 
    	
$
    	
2,883,540.00
    	
 
    	
$
    	
240,295.00
    	
 
    	
$
    	
60.00
    	
 
    
	
Lease Year 7
    	
 
    	
$
    	
2,931,599.00
    	
 
    	
$
    	
244,299.92
    	
 
    	
$
    	
61.00
    	
 
    

 

	
 
    	
For purposes hereof, “Lease Year”   shall mean a twelve-month period beginning on the Rent Commencement Date or   any anniversary of the Rent Commencement Date, except that if the Rent   Commencement Date does not fall on the first day of a calendar month, then   the first Lease Year shall begin on the Rent Commencement Date and end on the   last day of the month containing the first anniversary of the Rent Commencement   Date, and each succeeding Lease Year shall begin on the day following the   last day of the prior Lease Year.
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
Tenant shall have no obligation to pay Yearly Rent   for the period commencing as of the Commencement Date, and expiring as of the   day before the Rent Commencement Date (the “Rent   Abatement Period”).  During   the Rent Abatement Period, only Yearly Rent shall be abated, and all   additional rent and other costs and charges specified in the Lease shall   remain as due and payable pursuant to the provisions of the Lease.
    
	
 
    	
 
    	
 
    	
 
    
	
Article 7
    	
Security Deposit:
    	
 
    	
$1,500,000.00, in the   form of a Letter of Credit, subject to reduction in accordance with   Article 7
    

 

Exhibit 1 - 2

 

	
Article 8
    	
Utilities:
    	
 
    	
Landlord shall provide   utilities to Tenant as set forth in Article 8 hereof.
    
	
 
    	
 
    	
 
    	
 
    
	
Article 9
    	
Operating Costs in the   Base Year:
    	
 
    	
The actual amount of   Operating Costs for calendar year 2015
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
Tax Base:
    	
 
    	
The actual amount of   Taxes for fiscal year 2016 (i.e., July 1, 2015, through June 30,   2016)
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
Tenant’s Proportionate   Share:
    	
 
    	
The percentage   determined by dividing the rentable square footage of the Premises by the   rentable square footage of the Building.    Landlord represents that this percentage is 23.27%
    
	
 
    	
 
    	
 
    	
 
    
	
Section 29.3
    	
Broker:
    	
 
    	
For   Tenant:                                CB Richard Ellis/New England
   For Landlord:                     CB Richard Ellis/New England
    
	
 
    	
 
    	
 
    	
 
    
	
Section 29.5
    	
Enforcement   of Arbitration:
    	
 
    	
Massachusetts;   Superior Court
    
	
 
    	
 
    	
 
    	
 
    
	
Section 29.12   
    	
Parking:
    	
 
    	
Number   of Parking Passes:  As set forth in   Section 29.12
    

 

Exhibit 1 - 3

 

	
 
    	
TABLE   OF CONTENTS
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
Page
    
	
 
    	
 
    	
 
    
	
1.
    	
INCORPORATION OF   EXHIBITS; REFERENCE DATA
    	
1
    
	
 
    	
 
    	
 
    
	
2.
    	
DESCRIPTION OF DEMISED   PREMISES
    	
1
    
	
 
    	
 
    	
 
    
	
 
    	
2.1
    	
Demised Premises
    	
1
    
	
 
    	
2.2
    	
Appurtenant Rights
    	
1
    
	
 
    	
2.3
    	
Exclusions and   Reservations
    	
1
    
	
 
    	
2.4
    	
Rentable Area
    	
2
    
	
 
    	
 
    	
 
    
	
3.
    	
TERM OF LEASE
    	
2
    
	
 
    	
 
    	
 
    
	
 
    	
3.1
    	
Definitions
    	
2
    
	
 
    	
3.2
    	
Term
    	
2
    
	
 
    	
3.3
    	
Declaration Fixing   Commencement Date
    	
2
    
	
 
    	
 
    	
 
    	
 
    
	
4.
    	
CONDITION OF PREMISES -   LANDLORD’S CONTRIBUTION - ENTRY BY TENANT PRIOR TO COMMENCEMENT DATE
    	
2
    
	
 
    	
 
    	
 
    
	
 
    	
4.1
    	
Definitions
    	
2
    
	
 
    	
4.2
    	
TI Plans
    	
4
    
	
 
    	
4.3
    	
Landlord’s TI Work
    	
8
    
	
 
    	
4.4
    	
Governmental Permits,   Certificates of Occupancy and Approvals
    	
8
    
	
 
    	
4.5
    	
Completion Date
    	
8
    
	
 
    	
4.6
    	
When Premises Deemed   Ready
    	
9
    
	
 
    	
4.7
    	
Landlord’s Base   Building Work
    	
10
    
	
 
    	
4.8
    	
Landlord’s Contribution
    	
10
    
	
 
    	
4.9
    	
Landlord’s Space Plan   Contribution
    	
12
    
	
 
    	
4.10
    	
Tenant’s Delay -   Additional Costs
    	
12
    
	
 
    	
4.11
    	
Preparation of Premises   - Outside Contractors
    	
12
    
	
 
    	
4.12
    	
Conclusiveness of Landlord’s   Performance
    	
13
    
	
 
    	
4.13
    	
Tenant Payments of   Construction Cost
    	
13
    
	
 
    	
4.14
    	
Additional Landlord   Contribution
    	
13
    
	
 
    	
4.15
    	
Construction Rent
    	
14
    
	
 
    	
4.16
    	
Base Building Systems
    	
14
    
	
 
    	
 
    	
 
    
	
5.
    	
USE OF PREMISES
    	
14
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
5.1
    	
Permitted Use
    	
14
    
	
 
    	
5.2
    	
Prohibited Uses
    	
15
    
	
 
    	
5.3
    	
Licenses and Permits
    	
15
    
	
 
    	
 
    	
 
    	
 
    
	
6.
    	
RENT
    	
15
    
	
 
    	
 
    	
 
    
	
7.
    	
SECURITY DEPOSIT
    	
16
    
	
 
    	
 
    	
 
    
	
 
    	
7.1
    	
Security Deposit
    	
16
    
	
 
    	
7.2
    	
Letter of Credit
    	
16
    
	
 
    	
7.3
    	
Reduction in Letter of   Credit
    	
17
    

 

i

 

	
 
    	
TABLE   OF CONTENTS
    	
 
    
	
 
    	
(continued)
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
Page
    
	
 
    	
 
    	
 
    
	
8.
    	
SERVICES FURNISHED BY   LANDLORD
    	
18
    
	
 
    	
 
    	
 
    
	
 
    	
8.1
    	
Electric Current
    	
18
    
	
 
    	
8.2
    	
Water
    	
19
    
	
 
    	
8.3
    	
Elevators, Heat, and   Cleaning
    	
19
    
	
 
    	
8.4
    	
Air Conditioning
    	
20
    
	
 
    	
8.5
    	
Additional Heat,   Cleaning and Air Conditioning Services
    	
20
    
	
 
    	
8.6
    	
Additional Air   Conditioning Equipment
    	
20
    
	
 
    	
8.7
    	
Repairs
    	
21
    
	
 
    	
8.8
    	
Interruption or   Curtailment of Services
    	
21
    
	
 
    	
8.9
    	
Energy Conservation
    	
22
    
	
 
    	
8.10
    	
Miscellaneous
    	
22
    
	
 
    	
8.11
    	
Access
    	
22
    
	
 
    	
 
    	
 
    	
 
    
	
9.
    	
OPERATING COSTS AND   TAXES
    	
22
    
	
 
    	
 
    	
 
    
	
 
    	
9.1
    	
Definitions
    	
22
    
	
 
    	
9.2
    	
Tax Excess
    	
28
    
	
 
    	
9.3
    	
Operating Costs Excess
    	
28
    
	
 
    	
9.4
    	
Part Years
    	
28
    
	
 
    	
9.5
    	
Effect of Taking
    	
29
    
	
 
    	
9.6
    	
Disputes, etc.
    	
29
    
	
 
    	
 
    	
 
    	
 
    
	
10.
    	
CHANGES OR ALTERATIONS   BY LANDLORD
    	
29
    
	
 
    	
 
    	
 
    
	
11.
    	
FIXTURES, EQUIPMENT AND   IMPROVEMENTS—REMOVAL BY TENANT
    	
30
    
	
 
    	
 
    	
 
    
	
12.
    	
ALTERATIONS AND IMPROVEMENTS   BY TENANT
    	
31
    
	
 
    	
 
    	
 
    
	
13.
    	
TENANT’S   CONTRACTORS—MECHANICS’ AND OTHER LIENS—STANDARD OF TENANT’S   PERFORMANCE—COMPLIANCE WITH LAWS
    	
32
    
	
 
    	
 
    	
 
    
	
14.
    	
REPAIRS BY TENANT—FLOOR   LOAD
    	
33
    
	
 
    	
 
    	
 
    
	
 
    	
14.1
    	
Repairs by Tenant
    	
33
    
	
 
    	
14.2
    	
Floor Load—Heavy   Machinery
    	
33
    
	
 
    	
 
    	
 
    	
 
    
	
15.
    	
INSURANCE, INDEMNIFICATION,   EXONERATION AND EXCULPATION
    	
33
    
	
 
    	
 
    	
 
    
	
 
    	
15.1
    	
General Liability   Insurance
    	
33
    
	
 
    	
15.2
    	
General
    	
33
    
	
 
    	
15.3
    	
Property of Tenant
    	
34
    
	
 
    	
15.4
    	
Bursting of Pipes, etc.
    	
34
    
	
 
    	
15.5
    	
Repairs and   Alterations—No Diminution of Rental Value
    	
35
    
	
 
    	
 
    	
 
    	
 
    
	
16.
    	
ASSIGNMENT, MORTGAGING   AND SUBLETTING
    	
35
    
	
 
    	
 
    	
 
    
	
17.
    	
MISCELLANEOUS COVENANTS
    	
40
    
	
 
    	
 
    	
 
    
	
 
    	
17.1
    	
Rules and   Regulations
    	
40
    

 

ii

 

	
 
    	
 
    	
TABLE   OF CONTENTS
    	
 
    
	
 
    	
 
    	
(continued)
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
Page
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
17.2
    	
Access to Premises
    	
40
    
	
 
    	
17.3
    	
Accidents to Sanitary   and Other Systems
    	
41
    
	
 
    	
17.4
    	
Signs, Blinds and   Drapes
    	
41
    
	
 
    	
17.5
    	
Estoppel Certificate
    	
41
    
	
 
    	
17.6
    	
Prohibited Materials   and Property
    	
42
    
	
 
    	
17.7
    	
Requirements of   Law—Fines and Penalties
    	
42
    
	
 
    	
17.8
    	
Tenant’s Acts—Effect on   Insurance
    	
43
    
	
 
    	
17.9
    	
Miscellaneous
    	
43
    
	
 
    	
 
    	
 
    	
 
    
	
18.
    	
DAMAGE BY FIRE, ETC.
    	
43
    
	
 
    	
 
    	
 
    
	
19.
    	
WAIVER OF SUBROGATION
    	
45
    
	
 
    	
 
    	
 
    
	
20.
    	
CONDEMNATION - EMINENT   DOMAIN
    	
45
    
	
 
    	
 
    	
 
    
	
21.
    	
DEFAULT
    	
46
    
	
 
    	
 
    	
 
    
	
 
    	
21.1
    	
Conditions of   Limitation - Re-entry - Termination
    	
46
    
	
 
    	
21.2
    	
Grace Period
    	
47
    
	
 
    	
21.3
    	
Damages - Termination
    	
48
    
	
 
    	
21.4
    	
Fees and Expenses
    	
49
    
	
 
    	
21.5
    	
Waiver of Redemption
    	
49
    
	
 
    	
21.6
    	
Landlord’s Remedies Not   Exclusive
    	
50
    
	
 
    	
 
    	
 
    	
 
    
	
22.
    	
END OF TERM - ABANDONED   PROPERTY
    	
50
    
	
 
    	
 
    	
 
    
	
23.
    	
SUBORDINATION
    	
51
    
	
 
    	
 
    	
 
    
	
24.
    	
QUIET ENJOYMENT
    	
52
    
	
 
    	
 
    	
 
    
	
25.
    	
ENTIRE AGREEMENT —   WAIVER — SURRENDER
    	
53
    
	
 
    	
 
    	
 
    
	
 
    	
25.1
    	
Entire Agreement
    	
53
    
	
 
    	
25.2
    	
Waiver by Landlord
    	
53
    
	
 
    	
25.3
    	
Surrender
    	
53
    
	
 
    	
 
    	
 
    	
 
    
	
26.
    	
INABILITY TO   PERFORM - EXCULPATORY CLAUSE
    	
54
    
	
 
    	
 
    	
 
    
	
27.
    	
BILLS AND NOTICES
    	
55
    
	
 
    	
 
    	
 
    
	
28.
    	
PARTIES BOUND — TITLE
    	
55
    
	
 
    	
 
    	
 
    
	
29.
    	
MISCELLANEOUS
    	
56
    
	
 
    	
 
    	
 
    
	
 
    	
29.1
    	
Separability
    	
56
    
	
 
    	
29.2
    	
Captions, etc.
    	
56
    
	
 
    	
29.3
    	
Broker
    	
56
    
	
 
    	
29.4
    	
Intentionally Omitted
    	
56
    
	
 
    	
29.5
    	
Arbitration
    	
56
    
	
 
    	
29.6
    	
Governing Law
    	
57
    
	
 
    	
29.7
    	
Assignment of Rents
    	
57
    
	
 
    	
29.8
    	
Representation of   Authority
    	
57
    

 

iii

 

	
 
    	
 
    	
TABLE   OF CONTENTS
    	
 
    
	
 
    	
 
    	
(continued)
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
Page
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
29.9
    	
Expenses Incurred by   Landlord Upon Tenant Requests
    	
57
    
	
 
    	
29.10
    	
Survival
    	
58
    
	
 
    	
29.11
    	
Financial Statements
    	
58
    
	
 
    	
29.12
    	
Parking
    	
58
    
	
 
    	
29.13
    	
Anti-Terrorism   Representations
    	
60
    
	
 
    	
29.14
    	
Waiver of Trial by Jury
    	
60
    
	
 
    	
29.15
    	
No Offset
    	
60
    
	
 
    	
29.16
    	
Tenant’s Option to   Extend the Term of the Lease
    	
61
    
	
 
    	
29.17
    	
Tenant’s Right of First   Refusal
    	
63
    
	
 
    	
29.18
    	
Tenant’s Limited   Expansion Option
    	
65
    
	
 
    	
29.19
    	
Tenant’s Termination   Option
    	
67
    
	
 
    	
29.20
    	
Notice of Lease
    	
69
    

 

EXHIBITS

 

Exhibit 1 - Lease Data

Exhibit 2 - Lease Plan

Exhibit 3 - Insurance Provisions

Exhibit 4 - Rules and Regulations

Exhibit 5 - Form of Commencement Date Letter

Exhibit 6 - Form of Letter of Credit

Exhibit 7 - Definition of Shell Condition

 

iv

 

THIS LEASE between Landlord and Tenant named in Exhibit 1 is entered into on the Execution Date as stated in Exhibit 1.

 

Landlord demises to Tenant, and Tenant takes from Landlord, the Premises upon and subject to the provisions of this Lease.

 

1.                                      INCORPORATION OF EXHIBITS; REFERENCE DATA

 

The Exhibits attached to this Lease are made a part hereof.  Any reference in this Lease to any of the terms defined in any such Exhibit shall have the meaning set forth in such Exhibit.

 

2.                                      DESCRIPTION OF DEMISED PREMISES

 

2.1                               Demised Premises.  The Premises are that portion of the Building as described in Exhibit 1, as the same may change from time to time in accordance with the terms hereof.

 

2.2                               Appurtenant Rights.  Tenant shall have, as appurtenant to the Premises, the non-exclusive right to use in common with others entitled thereto: (a) the common lobbies, hallways, stairways and elevators of the Building serving the Premises in common with others; (b) the Common Areas, as defined in Exhibit I; (c) if the Premises include less than the entire rentable area of any floor, the common toilets and other common facilities of such floor; and (d) access to the parking areas appurtenant to the Premises, subject to Section 29.12; and no other appurtenant rights or easements.  Tenant’s use of such areas shall be subject to the terms hereof and to the Rules and Regulations as set forth in Exhibit 4 hereof.  Tenant acknowledges that Landlord has no obligation to allow any particular telecommunication service provider to have access to the Building or to the Premises, and that if Landlord permits such access, Landlord may require the service provider to pay Landlord a reasonable fee therefor.

 

2.3                               Exclusions and Reservations.  The following are not part of the Premises: all the perimeter walls of the Premises except the inner surfaces thereof, any balconies (except to the extent any balconies are shown as part of the Premises on Exhibit 2), terraces or roofs adjacent to the Premises, and any space in or adjacent to the Premises used for risers, shafts, stacks, pipes, conduits, wires and appurtenant fixtures, fan rooms, ducts, electric or other utilities, sinks or other Building facilities.  Landlord reserves the right to access and use any of the foregoing, as well as the right to enter the Premises for the purposes of operation, maintenance, decoration and repair.  Notwithstanding anything to the contrary in the Lease contained:

 

(a)                                 Landlord, its agents, employees and contractors shall not, except in an emergency and except for normal cleaning and maintenance operations, (i) exercise any right which it has to enter the Premises without giving Tenant reasonable advance notice; and (ii) exercise any right which it has to enter the Premises outside of Business Hours without giving Tenant advance notice thereof; and

 

(b)                                 Landlord shall use reasonable efforts to minimize any interference with Tenant’s use and enjoyment of the Premises arising from any entry into the Premises by Landlord.

 

1

 

2.4                               Rentable Area. Total Rentable Area of the Premises and the Building are agreed to be the amounts set forth in Exhibit 1.

 

3.                                      TERM OF LEASE

 

3.1                               Definitions. As used in this Lease the following terms have the following meanings:

 

(a)                                 “Estimated Commencement Date” - The date (as stated in Exhibit 1) on which it is estimated that the Premises will be ready for Tenant’s occupancy for the Permitted Use.

 

(b)                                 “Commencement Date” - The date on which the Premises are ready for Tenant’s occupancy (as set forth in Section 4.6) for the Permitted Use. If the Premises are not ready for such occupancy, but if Landlord allows Tenant to take possession of the whole or any part of the Premises for the Permitted Use, then the Commencement Date shall be the date on which Tenant takes such possession and commences use of the Premises for the Permitted Use.

 

3.2                               Term. The “Term” of this Lease shall commence on the Commencement Date and end on the Expiration Date as stated in Exhibit 1, unless extended or terminated pursuant to the terms hereof.

 

3.3                               Declaration Fixing Commencement Date. Once the Commencement Date has been determined, Landlord and Tenant shall execute an agreement, in the form attached hereto as Exhibit 5, in which shall be stated the Commencement Date, the Rent Commencement Date and the Expiration Date.

 

4.                                      CONDITION OF PREMISES - LANDLORD’S CONTRIBUTION - ENTRY BY TENANT PRIOR TO COMMENCEMENT DATE

 

4.1                               Definitions. As used in this Lease the words and terms which follow mean and include the following:

 

(a)                                 “Construction Force Majeure” shall mean whenever a period of time is prescribed for the taking of an action or performance of a non-monetary obligation by Landlord, the period of time for the performance of such action or performance of such obligation shall be extended by the number of days that the performance is actually delayed by events or circumstances outside of the reasonable control of Landlord, including industry wide strikes affecting similar construction projects at the time, acts of God, industry wide shortages of labor or materials affecting similar construction projects at the time after reasonably diligent efforts to obtain the same, war, terrorist acts, civil disturbances, government acts or regulations, and other causes beyond the reasonable control (such as an inability to obtain utility services from third-parties) of Landlord, but the unavailability of funds shall not be deemed a cause beyond the reasonable control of Landlord for this purpose. Any dispute as to whether any event or situation constitutes Construction Force Majeure may be referred by either Landlord or Tenant for resolution by binding arbitration pursuant to Section 29.5; provided, however, that Landlord shall notify Tenant within ten (10) business days after Landlord has knowledge of such Construction Force Majeure delay (failing which the time period of the subject Construction

 

2

 

Force Majeure delay shall run from the date such notice is actually received by Tenant); provided further that if and to the extent that any delay is attributable to any act, failure to act or neglect of Landlord or its agents or contractors, or Landlord’s failure to utilize its commercially reasonable efforts in the performance of its obligations under this Lease, then in any such event such delay shall not constitute a Construction Force Majeure delay.

 

(b)                                 “Landlord’s TI Work” shall mean the work to be performed by Landlord in preparing the Premises for Tenant’s occupancy, as shown on Tenant’s Approved TI Plans (as defined below) and the actual costs related thereto (but without mark-up by Landlord and specifically excluding all consultant, architect and engineering fees incurred by Tenant), as more particularly described and provided for in the third paragraph of Section 4.2; provided that Landlord’s TI Work shall exclude work to be performed in connection with Tenant’s data and telephone cabling, computer systems, furniture and furniture systems, office equipment (e.g. copiers) and similar items (such excluded work collectively, “Tenant Installations”).

 

(c)                                  “Punch List Items” shall mean any and all minor or insubstantial details of construction, decoration or mechanical adjustments that remain to be done in such space or any part thereof following Substantial Completion of such space, or portion thereof, which (taking into account both of the items to be completed and the work required to complete such items) will not materially interfere with Tenant’s conduct of business in such space.

 

(d)                                 “Substantially Completed” (or “Substantial Completion”) shall mean that (i) Landlord’s Base Building Work (as hereinafter defined) is Substantially Completed, (ii) Landlord’s TI Work, as shown on the Approved TI Plans, has been completed in accordance with the provisions of this Lease (including, without limitation, that such work has been completed in a good and workmanlike manner and substantially in accordance with the Approved TI Plans), except only Punch List Items (as provided below) and such work that Tenant needs to perform in connection with Tenant Installations and (ii) all conditions to the issuance of a temporary certificate of occupancy for the Premises have been satisfied allowing for lawful occupancy of the Premises by Tenant, except only conditions related solely to the completion of Tenant’s Installations, as (i) and (ii) are evidenced by a written notice of substantial completion from Landlord to Tenant, which notice of substantial completion shall be subject to confirmation by Tenant’s architect (which confirmation or objection, if Tenant’s architect does not agree that Substantial Completion of Landlord’s TI Work or any applicable portion thereof has occurred, shall be given (if at all) as promptly as possible and no more than three (3) business days after Tenant’s receipt of Landlord’s notification, and which confirmation (if any) shall specify any good faith objections and/or Tenant’s architect’s determination that Substantial Completion of Landlord’s TI Work (or applicable portions thereof) has not occurred). If Landlord shall provide only a temporary and not a permanent certificate of occupancy then Landlord’s notice of Substantial Completion will include Landlord’s covenant to complete all of Landlord’s TI Work and Landlord’s Base Building Work required for obtaining a permanent certificate of occupancy. The failure of Tenant’s architect to confirm Landlord’s notification of Substantial Completion of Landlord’s TI Work as set forth herein or to object in writing thereto within such three (3) business day period shall be deemed a confirmation that Substantial Completion has occurred. If Tenant’s architect objects to any matters set forth in Landlord’s notice of Substantial Completion of Landlord’s TI Work and notifies Landlord thereof within three (3) business days following receipt of the notice and the parties are unable to

 

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resolve the dispute within ten (10) days of Tenant’s architect’s notice of objection, either party may elect to refer the dispute to resolution by binding arbitration pursuant to Section 29.5.

 

(e)                                  “Tenant Delay” shall mean any delay in Substantial Completion of Landlord’s TI Work to the extent actually resulting from any of the following: (i) changes, alterations or additions required or requested by Tenant in the layout or finish of such space or any part thereof made subsequent to the approval by Landlord of the Approved Tl Plans, (ii) caused in whole or in part by Tenant through the delay of Tenant in submitting any plans and/or specifications, supplying information, approving plans, specifications or estimates, giving authorizations or otherwise, in each case beyond the time frames set forth in this Lease (or, in the absence of any time frame, beyond five (5) business days), (iii) caused in whole or in part by delay and/or default on the part of Tenant or its architects, engineers, consultants or vendors, or (iv) due to the inclusion of any “special work” or “long lead time” items (whether by reason of ordering time or complexity of construction) in the work contemplated by the Approved TI Plans and identified by Landlord in writing as such (which writing shall also contain Landlord’s good faith estimate as to the length of the delay and proposed alternatives, if any, which will eliminate the Tenant Delay) as soon as is practical but not later than the issuance of the GMP (as hereinafter defined), unless Tenant elects to utilize Landlord’s proposed alternatives. The duration of any Tenant Delay shall not exceed the period from the date of occurrence of the condition causing such Tenant Delay through the date upon which such condition is corrected. Notwithstanding anything to the contrary contained herein, any delay by Tenant in submitting any portion of the TI Plans to Landlord by the date required for such portion under this Lease shall automatically (and without any need for such delay to actually cause a delay in the availability of the Premises for occupancy) be deemed a Tenant Delay equal to the number of days Tenant is delayed in submitting such portion of the TI Plans. The consequence of a Tenant Delay is set forth in this Article 4. Landlord shall give Tenant notice of any claim of Tenant Delay on or before five (5) business days following the date that Landlord obtains actual knowledge of the occurrence of the matters giving rise to a claim of Tenant Delay and, if Landlord fails so to give such timely notice, Landlord may not claim Tenant Delay with respect to any period of delay occurring prior to Landlord’s delivery of the notice to Tenant with respect to such matters of which Landlord had actual knowledge. If Tenant disputes Landlord’s determination as to whether a Tenant Delay has occurred or the length thereof, Tenant shall notify Landlord in writing (“Tenant Delay Dispute Notice”) within three (3) business days following receipt of Landlord’s notice of Tenant Delay whereupon the dispute shall be resolved in accordance with Section 29.5 of this Lease. If Tenant fails to give a timely Tenant Delay Dispute Notice, Tenant shall be deemed to have waived any right to contest the claim of Tenant Delay asserted by Landlord.

 

4.2                               TI Plans.

 

(a)                                 Submission of Plans. Tenant shall be solely responsible for the timely (as more fully set forth below) preparation and submission to Landlord of the schematic design drawings (“Schematic Design Drawings for Landlord’s TI Work”), design development drawings (“Design Development Drawings for Landlord’s TI Work”) and of the final full sets of scaled and dimensioned construction documents, including architectural, electrical, mechanical, plumbing, sprinkler, life safety and other construction drawings, plans and specifications (“Construction Drawings for Landlord’s TI Work”, and together with the

 

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Schematic Design Drawings for Landlord’s TI Work and the Design Development Drawings for Landlord’s TI Work, the “TI Plans”) (the final Construction Drawings for Landlord’s TI Work as approved by Landlord and Tenant pursuant to this Section 4.2 being herein referred to as the “Approved TI Plans”) necessary to construct the tenant improvements in the Premises for Tenant’s occupancy, as well as the ancillary equipment to be installed by Landlord as part of Landlord’s TI Work to specifically serve the Premises, which plans shall (i) be certified by an architect or engineer licensed in the Commonwealth of Massachusetts, (ii) comply with all applicable laws, (iii) be submitted to Landlord sufficiently early to meet the Plan Approval Deadlines set forth below and (iv) be subject to approval (in form and substance) by Landlord (which approval shall not be unreasonably withheld, conditioned or delayed). Landlord’s approval is solely given for the benefit of Landlord, and neither Tenant nor any third party shall have the right to rely upon Landlord’s approval of any of the TI Plans for any purpose whatsoever. Landlord shall respond to any plan submission by Tenant within five (5) business days after (i) Landlord’s receipt of the original submission (except that Landlord shall have seven (7) business days to respond to Tenant’s submission of the Construction Drawings) and (ii) Landlord’s receipt of any resubmission. If Landlord fails to respond within such five (5) business day period, and such failure continues for five (5) business days after notice thereof, the applicable TI Plans shall be deemed approved. In the event Landlord’s approval of the any TI Plans is withheld or conditioned, Landlord shall send written notification to Tenant (“Landlord’s Notification”) thereof within the applicable period set forth above, which shall include a reasonably detailed statement identifying the reasons for such refusal or condition. Tenant shall promptly (and in any event within five (5) business days after delivery of the applicable Landlord’s Notification) have the Construction Drawings for Landlord’s TI Work incorporate the matters referred to in Landlord’s Notification, or, in the event a Landlord’s Notification is given with respect to the Construction Drawings for Landlord’s TI Work, have such Construction Drawings revised by its architect to incorporate all reasonable objections and conditions presented by Landlord’s Notification and shall resubmit Construction Drawings for Landlord’s TI Work to Landlord within five (5) business days of Landlord’s Notification. Such process shall be followed until the Construction Drawings for Landlord’s TI Work shall have been approved by Landlord without unreasonable objection or condition. Notwithstanding anything herein to the contrary, Tenant shall submit to Landlord:

 

(x)                                 the Schematic Design Drawings for Landlord’s TI Work on or before November 3, 2014;

 

(y)                                 the Design Development Drawings for Landlord’s TI Work on or before December 1, 2014; and

 

(z)                                  the Construction Drawings for Landlord’s TI Work on or before December 31, 2014 (such dates being collectively referred to as the “Plan Submittal Deadlines”).

 

Without limiting the foregoing, Tenant shall be responsible for all elements of the design set forth in the TI Plans (including, without limitation, compliance with law, functionality of design, the structural integrity of the design and the configuration of the Premises), and Landlord’s approval of any TI Plans shall in no event relieve Tenant of the responsibility for such design. Tenant agrees to remain solely responsible for the timely preparation and submission of all such TI Plans and for all elements of the design of such TI Plans and, except as

 

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otherwise specifically provided in this Lease, for all costs related thereto, subject to reimbursement from Landlord’s Contribution and except as otherwise set forth herein. Notwithstanding the foregoing, Landlord shall pay the cost of demolishing the existing improvements in Area B of the Premises so as to put them in the same condition (vis-à-vis demolition) as Area A of the Premises is as of the Execution Date, and shall not charge the cost thereof against Landlord’s Contribution.

 

(b)                                 Construction Manager. Landlord shall select, and Tenant hereby approves, MJA Construction as the construction manager (“Construction Manager”) for the performance of Landlord’s TI Work, pursuant to a separate construction management agreement (which shall be a guaranteed maximum price contract) to be entered into by Landlord and Construction Manager for Landlord’s TI Work (the “Construction Management Agreement”). Tenant may appoint a construction representative by written notice to Landlord from time to time (“Construction Representative”). In such event, Tenant hereby authorizes Landlord to rely in connection with design and construction upon approval and other actions on Tenant’s behalf by such Construction Representative.

 

(c)                                  Estimating. Promptly after approval of the Schematic Design Drawings for Landlord’s TI Work and the Design Development Drawings for Landlord’s TI Work, Landlord shall submit such plans to the Construction Manager. Landlord shall cause the Construction Manager to prepare an estimated cost to complete (each a “Cost Estimate”) based on such submissions. Provided Tenant submits the TI Plans in accordance with the Plan Submittal Deadlines, Landlord shall use reasonable efforts to cause the Construction Manager to deliver the applicable Cost Estimate to Tenant:

 

(x)                                 with respect to the Schematic Design Drawings for Landlord’s TI Work not later than November 17, 2014; and,

 

(y)                                 with respect to the Design Development Drawings for Landlord’s TI Work not later than December 15, 2014 (collectively, the “Estimate Dates”).

 

Tenant shall have the right to modify the TI Plans to accommodate value engineering as a result of any Cost Estimate, which revisions shall be included in the next submission to Landlord.

 

(d)                                 GMP. Upon Landlord’s review and final approval of the Approved TI Plans, Construction Manager shall solicit on an open book basis competitive, fixed price bids for the performance of Landlord’s TI Work for the Premises from at least three (3) subcontractors per trade from the list of approved subcontractors (although certain long-term lead items may be bid prior to issuance of Approved TI Plans). Landlord shall provide Tenant or Tenant’s Representative with a copy of each bid received and all supporting material received by Landlord. During the ten (10) business day period following obtaining of the bids, (1) Landlord shall (x) level the bids, (y) deliver to Tenant the “bid sheet” and (z) provide Tenant the opportunity to review the leveled bids and (2) Tenant shall be entitled to make value engineering changes to the Approved TI Plans, subject to Landlord’s approval (which approval shall not be unreasonably withheld, delayed or conditioned) and any such value engineering changes constituting Tenant Delay (to the extent Substantial Completion of Landlord’s TI Work is

 

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actually delayed as a result thereof), which value engineering changes shall be incorporated into the leveled bids. After the completion of the leveling of the bids and the value engineering changes, Landlord and Construction Manager shall submit to Tenant the estimated cost of Landlord’s TI Work for the Premises which shall consist of, but not be limited to, the following: (i) estimated permit and filing fees (including expediter fees), (ii) a guaranteed maximum price for all work covered under the Construction Management Agreement (the “GMP”) which shall include all costs reflected in the approved subcontractor bids using the most responsible, competitive and competent subcontractor, fees and costs payable to Construction Manager (provided, however, that the construction management fee payable to Construction Manager shall not exceed 2.75% of the GMP) pursuant to the terms of the approved Construction Management Agreement for Landlord’s TI Work, costs of subguard insurance (Landlord confirming that payment and performance bonds will not be requested from the Construction Manager or subcontractors performing Landlord’s TI Work), costs of all other insurance required to be obtained in connection with Landlord’s TI Work, including builder’s risk insurance and comprehensive general liability insurance, general conditions costs and a Landlord’s budget contingency amount (“Contingency”) equal to three percent (3%) of the aggregate amount of the preceding components of the GMP, (iii) third party project management fees, if any, paid by Landlord, if Landlord reasonably deems it necessary to engage a third party project manager, not to exceed $30,000.00, (iv) cost of controlled inspections, contractor preconstruction services and cost estimating and (v) such other out-of-pocket costs reasonably approved by Landlord and Tenant which are reasonably to be incurred by Landlord and are associated with and reasonably necessary for Landlord’s TI Work for the Premises and excluding all consultant, architect and engineering fees incurred by Tenant (collectively, the “Final TI Cost”). Tenant shall approve or disapprove the Final TI Cost within two (2) business days from receipt thereof (which approval shall not be unreasonably withheld, conditioned or delayed and any delay by Tenant in the approval of the Final TI Cost beyond such four (4) business day period shall constitute deemed approval thereof). Upon Tenant’s approval (or deemed approval) of the Final TI Cost (the “Approved Budget”), Landlord shall be authorized to proceed with the execution of Landlord’s TI Work and award the bids.

 

(e)                                  Changes. Tenant shall have the right to make changes (“Changes”) from time to time in the Approved TI Plans by submitting revised plans, indicating the proposed Changes. Such Changes to the extent affecting the Building’s systems or the structural integrity of the Building shall be subject to Landlord’s approval (which shall not be unreasonably withheld, delayed or conditioned) but shall otherwise not require Landlord’s approval. Landlord shall notify Tenant of its approval or disapproval of any such proposed Change for which Landlord’s approval is required within seven (7) days following receipt of such proposed Change (or such longer period as may be reasonably necessary for Landlord to price such Change). Within such seven (7) day period (or such longer period as may be reasonably necessary for Landlord to price the Change), if Landlord approves the proposed Change or if the proposed Change does not require Landlord’s approval as set forth herein, Landlord shall notify Tenant of the total amount of any net increase or decrease in the cost of Landlord’s TI Work, and any Tenant Delay in the completion of Landlord’s TI Work, resulting therefrom by presenting Tenant with a change order containing such information (a “Change Order”). If Landlord has the right to approve the Change, Landlord’s failure to respond to such Change within the seven (7) day period (or such longer period as may be reasonably necessary for Landlord to price such Change) shall be deemed a disapproval of such Change. For time sensitive Changes, Landlord shall

 

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endeavor to respond in a shorter period than seven (7) days if reasonably possible. If Tenant does not accept the Change Order within three (3) business days of the giving of such notice, Landlord shall not make the proposed Change. If Tenant accepts the Change Order (including the adjustment in the cost of Landlord’s TI Work and the Tenant Delay in the completion of Landlord’s TI Work resulting therefrom as set forth in the Change Order), the provisions of this Article 4 shall apply to Landlord’s TI Work as adjusted by the approved Change Order and the Approved Budget and GMP shall be increased or decreased as a result of the Change Order (but maintaining the three percent (3%) Contingency for the GMP and Approved Budget as set forth above). Any time during which the performance of Landlord’s TI Work must be postponed or delayed (in whole or in part) in order to review and approve any such Changes and determine the cost thereof as well as any additional time required to implement any such Changes shall all constitute Tenant Delay to the extent the foregoing actually delay Substantial Completion of Landlord’s TI Work (provided that Landlord notifies Tenant (i) in writing prior to postponing or delaying Landlord’s TI Work that a delay will occur or (ii) in the Change Order that a delay will occur, regardless of whether Tenant accepts the Change Order).

 

4.3                               Landlord’s TI Work. Upon finalizing the Approved TI Plans, Landlord shall construct, at Tenant’s sole cost and expense (except for Landlord’s Contribution and except as otherwise set forth herein), Landlord’s TI Work in substantial compliance with the Approved TI Plans in a good and workmanlike manner. Landlord’s construction of Landlord’s T1 Work shall be performed in such a manner as to most prudently and efficiently complete all of such work in a timely manner in accordance with the terms of this Lease, including, to the extent applicable, construction coordination among contractors, subcontractors and vendors for all such work and for the Tenant Installations to facilitate Tenant’s occupancy, as reasonably directed by Landlord. Subject to Construction Force Majeure, Tenant Delay and Section 4.5, Landlord shall use diligent efforts to complete Landlord’s TI Work on or before the Estimated Commencement Date.

 

4.4                               Governmental Permits, Certificates of Occupancy and Approvals. All permits, temporary certificates of occupancy and other governmental approvals necessary for the performance of Landlord’s TI Work and the use and occupancy of the Premises (or applicable portion thereof) by Tenant upon Substantial Completion shall be obtained by Landlord, provided that those permits, certificates and approvals applicable to Landlord’s TI Work shall, except as otherwise specifically provided in this Lease, be obtained by Landlord at Tenant’s sole cost and expense (subject to reimbursement from Landlord’s Contribution). Landlord shall file with the appropriate governmental authority any and all portions of the Approved TI Plans required in order to obtain such permits, certificates and approvals, and diligently proceed to have the permits and temporary certificate of occupancy issued for the Premises. In connection with any temporary certificate of occupancy obtained by Landlord for Landlord’s TI Work, Landlord shall keep and maintain such temporary certificate of occupancy in full force and effect and diligently complete all necessary portions of Landlord’s Base Building Work and/or Landlord’s TI Work required for issuance of a permanent and unconditional certificate of occupancy.

 

4.5                               Completion Date. Subject to delay by Construction Force Majeure and Tenant Delay, Landlord shall Substantially Complete Landlord’s TI Work in substantial conformance with the Approved TI Plans and have the Premises Substantially Complete and ready for Tenant’s occupancy on the Estimated Commencement Date. The failure to have the Premises

 

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Substantially Complete and ready for Tenant’s occupancy on the Estimated Commencement Date shall not affect the validity of this Lease or the obligations of Tenant hereunder, nor shall the same be construed in any way to extend the term of this Lease except as may be specifically otherwise herein provided. Tenant shall not have any claim against Landlord and Landlord shall have no liability to Tenant if the Premises are not Substantially Complete and ready for Tenant’s occupancy on the Estimated Commencement Date. Notwithstanding the foregoing, if the Commencement Date has not occurred on or before the Outside Completion Date (defined below), Tenant shall be entitled to a rent abatement against Tenant’s obligation to pay Yearly Rent following the Rent Commencement Date equal to one (1) day for each day between the Outside Completion Date and the Rent Commencement Date. The parties agree that the foregoing rent abatement constitutes liquidated damages reasonably calculated to reimburse Tenant for its costs and expenses and not a penalty. The “Outside Completion Date” shall mean September 1, 2015, provided, however, that the Outside Completion Date shall be extended by the length of any delays in Landlord’s TI Work arising from delay by Construction Force Majeure. Notwithstanding the foregoing, if the Commencement Date shall not have occurred on or before the Outside Date, as hereinafter defined, then Tenant shall have the right, exercisable by a written thirty (30) day termination notice given on or after the Outside Date, to terminate the Lease. If the Commencement Date occurs on or before the thirtieth (30th) day after Landlord receives such termination notice, Tenant’s termination notice shall be deemed to be void and of no force or effect. If the Commencement Date does not occur on or before such thirtieth (30th) day this Lease shall terminate and shall be of no further force or effect, except that, if Tenant has previously paid any Landlord’s TI Work Cost Excess (defined below) to Landlord, then Landlord shall refund such amount to Tenant within ten (10) days after the effective date of such termination. For the purposes hereof, the “Outside Date” shall be defined as November 1, 2015, provided however, that the Outside Date shall be extended by the length of any delays in Landlord’s Work arising from any Tenant Delay or from Force Majeure (as that term is defined in Article 26 below).

 

4.6                               When Premises Deemed Ready. The Premises shall be conclusively deemed ready for Tenant’s occupancy as soon as Landlord’s TI Work has been Substantially Completed and Landlord’s Base Building Work is completed. Landlord and Tenant shall set a mutually convenient time on or before such date for Tenant, Tenant’s architect, Landlord, and Landlord’s contractor to inspect the Premises and Landlord’s TI Work therein. With respect to Landlord’s TI Work, not later than three (3) business days after such inspection, Tenant’s architect shall prepare and submit to Landlord a list of Punch List Items and other items to be completed with respect to such space. Subject to Tenant Delay and Construction Force Majeure, Landlord shall use diligent efforts to complete such Punch List Items as promptly as possible and in any event (subject to extension for Construction Force Majeure and Tenant Delay) within thirty (30) days following such inspection (unless particular Punch List Items cannot be completed within the thirty (30) day period, in which case such sixty (60) day period shall be extended for such time as may be reasonably necessary to enable Landlord to complete such Punch List Items). Notwithstanding any other provisions of this Article 4, if the delay in the Substantial Completion of the Premises is due to a Tenant Delay, then the Commencement Date shall be the date that the Premises would have been Substantially Completed but for any Tenant Delay. If, pursuant to the foregoing, the Commencement Date occurs before the Premises is in fact Substantially Completed, Tenant shall not (except with Landlord’s consent) be entitled to take possession of such space until the Premises is in fact Substantially Completed. Any of Landlord’s TI Work in

 

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the Premises not fully completed on the Commencement Date shall thereafter be so completed with reasonable diligence by Landlord. Any dispute as to whether any portion of the Premises is Substantially Complete may be referred by either Landlord or Tenant for resolution by binding arbitration pursuant to Section 29.5. Landlord shall deliver the Premises to Tenant with all Building systems serving the Building, including, without limitation, the HVAC, electrical, life safety and plumbing systems in good working condition.

 

4.7                               Landlord’s Base Building Work. Landlord shall, at Landlord’s cost and expense, perform the following work (“Landlord’s Base Building Work”) in the Premises: (i) put the Premises in Shell Condition, as defined in Exhibit 7 hereof, and (ii) install a separate meter to measure the consumption of electricity for lights and plugs in the Premises (but specifically excluding electricity for Base Building HVAC). Landlord shall perform Landlord’s Base Building Work on or before the Commencement Date, provided however, that Landlord’s failure to complete Landlord’s Base Building Work on or before the Commencement Date shall not give rise to any claims for abatement of rent or damages on account of the delay in completion of Landlord’s Base Building Work.

 

4.8                               Landlord’s Contribution.

 

(a)                                 Landlord shall, in the manner hereinafter set forth, contribute up to Two Million Eight Hundred Eighty-Three Thousand Five Hundred Forty and 00/100 Dollars ($2,883,540.00) (“Landlord’s Contribution”) towards the hard and soft cost of Landlord’s TI Work (including, without limitation, architectural, engineering and project management fees) (collectively, the “Total Cost of Landlord’s TI Work”). If the Total Cost of Landlord’s TI Work exceeds the amount of Landlord’s Contribution, Tenant shall pay Landlord the excess amount (all such costs, “Landlord’s TI Work Cost Excess”) within twenty (20) business days after demand therefor, which demand Landlord may make at any time after the determination of Landlord’s TI Work Cost Excess. Landlord shall notify Tenant from time to time of Landlord’s good faith estimate of the Total Cost of Landlord’s TI Work and of Landlord’s TI Work Cost Excess, and any such notice shall be accompanied by supporting documentation evidencing such cost. Landlord shall disburse from Landlord’s Contribution until Landlord has paid the entire cost of Landlord’s TI Work or Landlord has expended the entire amount of Landlord’s Contribution. Any dispute between Landlord and Tenant with respect to the amount payable pursuant to any requisition that is not resolved within ten (10) days after the date of the requisition shall be resolved by arbitration conducted pursuant to Section 29.5 below. For the purposes of this Section 4.8(a), a “requisition” shall mean written documentation showing in reasonable detail the costs of the work or other improvements contracted for by Landlord, issued on AIA Form G702 (or such other form as may be reasonably acceptable to both Landlord and Tenant). Landlord shall follow customary and prudent practices in connection with the requisitioning and payment for Landlord’s TI Work, including, without limitation, requirements as to lien waivers and holdback amounts.

 

(b)                                 Tenant shall have the right to apply any portion of Landlord’s Contribution in excess of the Total Cost of Landlord’s TI Work to architectural, engineering and project management fees incurred by Tenant in connection with preparation of the Approved TI Plans and the performance of Landlord’s TI Work or to Tenant Installations (collectively, the “Permitted Soft Costs”). With respect to any portion of Landlord’s Contribution that may be

 

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used for Permitted Soft Costs, provided that Tenant is not in default of its obligations under this Lease beyond applicable periods of notice and grace at the time that Tenant requests any requisition on account of Landlord’s Contribution, Landlord shall pay the cost of the work shown on each requisition submitted by Tenant to Landlord to Tenant, or if requested by Tenant, to the party performing the work, within thirty (30) days of submission thereof by Tenant to Landlord. For the purposes of this Section 4.8(b), a “requisition” shall mean written documentation showing in reasonable detail the costs of the work or other improvements contracted for by Tenant, issued on AIA Form G702 (or such other form as may be reasonably acceptable to both Landlord and Tenant), or in the case of architectural and/or engineering costs or other costs where an AIA G702 is not appropriate written documentation, consisting of invoices evidencing the costs incurred by Tenant. Each requisition shall be accompanied by evidence reasonably satisfactory to Landlord that all work covered by previous requisitions submitted by Tenant and funded by Landlord’s Contribution has been fully paid by Tenant (including delivery to Landlord of written waivers of liens from all contractors, laborers and suppliers of materials for such work). Notwithstanding anything to the contrary herein contained:

 

(1)                                 Landlord shall have no obligation to advance funds on account of Landlord’s Contribution with respect to work contracted for by Tenant unless and until Landlord has received the requisition in question, together with certifications from Tenant’s architect, if applicable, certifying that the work shown on the requisition has been performed substantially in accordance with applicable law and substantially in accordance with Tenant’s approved plans.

 

(2)                                 Landlord shall pay requisitions of Landlord’s Contribution to Tenant with respect to work contracted for by Tenant, in the case of paid invoices submitted by Tenant, or to Tenant’s contractor or other party performing the work, in the case of unpaid invoices submitted by Tenant.

 

(3)                                 Landlord shall have no obligation to pay Landlord’s Contribution in respect of any requisition submitted after the first anniversary of the Execution Date of this Lease (“Outside Requisition Date”), except to the extent Tenant notifies Landlord prior to the Outside Requisition Date that any amount which is or will be the subject of a requisition is being disputed and that the work which is the subject of such requisition has been completed prior to the Outside Requisition Date.

 

(4)                                 Tenant shall not be entitled to any unused portion of Landlord’s Contribution.

 

(5)                                 Landlord shall have the right, upon reasonable advance notice to Tenant, to inspect Tenant’s books and records relating to each requisition in order to verify the amount thereof. Tenant shall submit requisition(s) no more often than monthly.

 

(c)                                  Except for Landlord’s Contribution, Tenant shall bear all other costs of Landlord’s TI Work. Landlord shall have no liability or responsibility for any claim, injury or damage alleged to have been caused by the particular materials, whether building standard or

 

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non-building standard, selected by Tenant in connection with Landlord’s TI Work, except to the extent set forth in Section 4.12.

 

(d)                                 If any work, including, but not by way of limitation, installation of built-in equipment by the manufacturer or distributor thereof, shall be performed by contractors not employed by Landlord, Tenant shall take necessary reasonable measures to the end that such contractor shall cooperate in all ways with Landlord’s contractors to avoid any delay to the work being performed by Landlord’s contractors or conflict in any other way with the performance of such work.

 

4.9                               Landlord’s Space Plan Contribution.  In addition to Landlord’s Contribution, Landlord shall contribute up to Four Thousand Eight Hundred Five and 90/100 Dollars ($4,805.90) towards the cost of preliminary design work in the Premises (“Landlord’s Space Plan Contribution”).  Landlord’s Space Plan Contribution shall be paid to Tenant within thirty (30) days after Tenant’s written request therefor accompanied by copies of invoices evidencing the payment of such costs by Tenant.

 

4.10                        Tenant’s Delay - Additional Costs.  If a Tenant Delay occurs or Tenant fails to comply with any terms or conditions contained in this Article 4, in each case beyond the time frames set forth in this Lease (or, in the absence of any time frame, beyond five (5) business days), and such Tenant Delay or failure is not due to any act or (where there is an obligation under this Lease to act) omission of Landlord, any additional actual cost to Landlord in connection with the completion of the Landlord’s TI Work in accordance with the terms of this Lease shall be promptly paid by Tenant to Landlord to the extent that such additional actual cost is the result of such Tenant Delay or failure of Tenant, and Landlord’s TI Costs exceed Landlord’s Contribution (in which case the unutilized Landlord’s Contribution shall be disbursed on account of Tenant to Landlord to pay such additional actual costs).  For the purposes of the immediately preceding sentence, the expression “additional actual cost to Landlord” shall mean the actual cost over and above such actual cost as would have been the aggregate actual cost to Landlord of completing Landlord’s TI Work in accordance with the terms of this Lease had there been no such failure or Tenant Delay.  Nothing contained in this Section 4.10 shall limit or qualify or prejudice any other covenants, agreements, terms, provisions and conditions contained in this Lease, including, but not limited to Section 4.2.  Any dispute between Landlord and Tenant as to any amounts owing pursuant to this Section 4.10 may be referred by Landlord or Tenant for resolution by binding arbitration in accordance with Section 29.5.

 

4.11                        Preparation of Premises - Outside Contractors.  Landlord shall provide Tenant and its contractors, architects and engineers with access to the Premises at least thirty (30) days prior to the Commencement Date, provided that such entry does not create any material interference in the performance of Landlord’s TI Work, solely as follows:

 

(a)                                 Access shall be coordinated and provided by Landlord at appropriate times (i.e., prior to closing walls and ceilings) during the construction process to Tenant and its contractors to enable Tenant and its contractors to install the Tenant Installations, including, without limitation, data, telecommunication, security, audio visual and other wiring and cabling and to install racking and other equipment, as shown on the Approved TI Plans and shall use commercially reasonable efforts to provide Tenant with reasonable access no later than the date

 

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that is fourteen (14) days prior to the later of (1) Substantial Completion and (2) the Estimated Commencement Date, to install furniture systems and related equipment (and connect the same to power sources), to the extent such installation can be performed without unreasonable interference with Landlord’s TI Work;

 

(b)                                 Tenant and Tenant’s architects and engineers shall be given access to the Premises throughout the period that construction of Landlord’s TI Work is ongoing, for purposes of inspecting such work; and

 

(c)                                  All such early access shall be coordinated with and by Landlord and the Construction Manager and their contractors and shall be performed by Tenant and Tenant’s contractors, architects and engineers in a manner which does not unreasonably interfere with Landlord’s completion of Landlord’s TI Work.  Any such interference shall constitute Tenant Delay (to the extent it actually delays Substantial Completion).

 

4.12                        Conclusiveness of Landlord’s Performance.  Except as set forth in the next sentence, Tenant shall be conclusively deemed to have agreed that Landlord has performed all of its obligations under this Article 4 with respect to the Premises except as to matters under warranty unless not later than the end of the second calendar month next beginning after the Commencement Date, Tenant shall give Landlord written notice specifying the respects in which Landlord has not performed any such obligation for the Premises.  Notwithstanding the foregoing, Landlord shall, at Landlord’s sole cost, not to be included in Operating Costs, correct any defects in Landlord’s TI Work of which Tenant shall give Landlord written notice not later than the date that is eleven (11) months after Substantial Completion of Landlord’s TI Work.  Landlord shall obtain customary warranties from the contractors performing Landlord’s TI Work and shall keep such warranties in full force and effect.  All warranties related to Landlord’s TI Work shall be assignable to Tenant, and at Tenant’s request upon the expiration of the eleven (11) month period described above, Landlord shall assign any such warranties then in effect to Tenant unless Landlord is then enforcing any of such warranties (in which case Landlord shall assign such warranties to Tenant upon resolution of such enforcement).

 

4.13                        Tenant Payments of Construction Cost.  Landlord shall have the same rights and remedies which Landlord has upon the nonpayment of Yearly Rent and other charges due under this Lease for nonpayment of any amounts which Tenant is required to pay to Landlord or Landlord’s contractor in connection with the construction and initial preparation of the Premises (including, without limitation, any amounts which Tenant is required to pay in accordance with Sections 4.7 and 4.9 hereof) or in connection with any construction in the Premises performed for Tenant by Landlord, Landlord’s contractor or any other person, firm or entity after the Commencement Date.

 

4.14                        Additional Landlord Contribution.  If Landlord’s TI Work Cost Excess exceeds Seven Hundred Twenty Thousand Eight Hundred Eighty-Five and 00/100 Dollars ($720,885.00) (the “Minimum Tenant Funded Cost Excess”), then Tenant shall have the right, by written notice to Landlord delivered on or before the start of Landlord’s TI Work, to request that Landlord fund some or all of Landlord’s TI Work Cost Excess in excess of the Minimum Tenant Funded Cost Excess, up to a maximum amount of Seven Hundred Twenty Thousand Eight Hundred Eighty-Five and 00/100 Dollars ($720,885.00) (the amount so requested, “Landlord’s

 

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Additional Contribution”).  If Tenant timely makes such request, then Landlord shall contribute Landlord’s Additional Contribution toward the cost of Landlord’s TI Work Cost Excess, such funds to be disbursed in the same manner as Landlord’s Contribution.  For avoidance of doubt, it is the intent of the parties that to the extent there is a Landlord’s TI Work Cost Excess, (i) Tenant shall be obligated to fund the first $720,885.00 thereof, (ii) Tenant shall have the right, but not the obligation, to cause Landlord to fund up to the next $720,885.00 thereof as Landlord’s Additional Contribution, and (iii) Tenant shall be obligated to fund any Landlord’s TI Work Cost Excess in excess of $1,441,770.00.

 

4.15                        Construction Rent.  Commencing as of the Commencement Date (if the Commencement Date is the first day of a calendar month, or otherwise on the first day of the calendar month next following the Commencement Date), and continuing on the first day of each month thereafter throughout the term of the Lease, Tenant shall pay to Landlord, as additional rent, Construction Rent, as hereinafter defined, based upon the amount of Landlord’s Additional Contribution.  Tenant’s monthly payments of Construction Rent shall be equal to the amount of equal monthly payments of principal and interest which would be necessary to repay a loan in the amount of Landlord’s Additional Contribution, together with interest at the rate of seven percent (7%) per annum, on a level payment direct reduction basis over a term equal to the term of the Lease.  Monthly payments of Construction Rent shall be payable at the same time and in the same manner as Yearly Rent is payable under the Lease, but shall commence on the Commencement Date rather than on the Rent Commencement Date.  Construction Rent shall not be abated or reduced for any reason whatsoever (including, without limitation, untenantability of the Premises or termination of the Lease).  Without limiting the foregoing, the rent abatement provisions of Articles 18 and 20 of the Lease shall not apply to Construction Rent.  Since the payment of Construction Rent represents a reimbursement to Landlord of costs which Landlord will incur in connection with the construction of the Premises, if there is any default (beyond the expiration of any applicable grace periods) of any of Tenant’s obligations under the Lease (including, without limitation, its obligation to pay Construction Rent) or if the term of this Lease is terminated for any reason whatsoever prior to the termination of the Term of the Lease, Tenant shall pay to Landlord, immediately upon demand, the unamortized balance of Landlord’s Additional Contribution.  Tenant’s obligation to pay the unamortized balance of Landlord’s Additional Contribution shall be in addition to all other rights and remedies which Landlord has based upon any default of Tenant under the Lease, and Tenant shall not be entitled to any credit or reduction in such payment based upon amounts collected by Landlord from reletting the Premises after the default of Tenant.

 

4.16                        Base Building Systems.  Landlord agrees that the base building systems including, without limitation, HVAC, plumbing, electrical, elevator services, roofing, fire safety access and emergency egress systems serving the Premises shall be in good working order on the Commencement Date.

 

5.                                      USE OF PREMISES

 

5.1                               Permitted Use.  Tenant shall occupy and use the Premises for the Permitted Use as stated in Exhibit 1 and for no other purposes.  Without limiting the generality of the foregoing, Tenant agrees that it shall not use the Premises or any part thereof, or permit the Premises or any part thereof to be used for the preparation or dispensing of food, except that Tenant may, with

 

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Landlord’s prior written consent (including approval of plans for any such equipment that has a water connection), which consent shall not be unreasonably withheld, install at its own cost and expense so-called hot-cold water fountains, coffee makers, microwave ovens and commonly used pantry equipment (excluding, however, stovetops, hot plates, ovens or toaster ovens; however, toaster ovens with an auto-shutoff feature shall be permitted) for the preparation of beverages and foods, provided that no cooking, frying, etc., are carried on in the Premises to such extent as requires special exhaust venting.

 

5.2                               Prohibited Uses.  Notwithstanding any other provision of this Lease, Tenant shall not use, or suffer or permit the use or occupancy of, or suffer or permit anything to be done in or anything to be brought into or kept in or about the Premises or the Building or any part thereof (including, without limitation, any materials, appliances or equipment used in the construction or other preparation of the Premises and furniture and carpeting): (i) which would violate any of the covenants, agreements, terms, provisions and conditions of this Lease or matters of record applicable to or binding upon the Premises; (ii) for any unlawful purposes or in any unlawful manner; (iii) which, in the reasonable judgment of Landlord shall in any way (a) materially impair the appearance of the Building; or (b) materially impair, interfere with or otherwise diminish the quality of any of the Building services or the proper and economic heating, cleaning, ventilating, air conditioning or other servicing of the Building or Premises; or with the use or occupancy of any of the other areas of the Building, occasion injury or damage to any occupants of the Premises or other tenants or occupants of the Building or a material interference with the permitted use and occupancy of the Building by such tenants or occupants; or (iv) which is inconsistent with the maintenance of the Building as an office building of the first class in the quality of its maintenance, use, or occupancy.  Tenant shall not install or use any electrical or other equipment of any kind which, in the reasonable judgment of Landlord, might cause any such impairment, interference, discomfort, inconvenience, annoyance or injury.

 

5.3                               Licenses and Permits.  Tenant shall be responsible for obtaining and maintaining any governmental license or permit required for the proper and lawful conduct of Tenant’s business and shall at all times comply with the terms and conditions of each such license or permit.  Tenant shall use the Premises in accordance with all applicable laws.

 

6.                                      RENT

 

Commencing on the Rent Commencement Date and continuing throughout the Term, Tenant shall pay the Yearly Rent and other charges, at the rate stated in Exhibit 1, to Landlord monthly, in advance, without demand on the first day of each month.  Notwithstanding the foregoing, Tenant shall pay the first monthly installment of rent on the execution of this Lease.  Rent shall be prorated for any partial calendar month during the Term.  The rent shall be payable to Landlord or, if Landlord shall so direct in writing, to Landlord’s agent or nominee, at the office of Landlord or such place as Landlord may designate in writing from time to time, without offset or deduction.  Yearly Rent and any other sums due hereunder not paid on or before the date due shall bear interest for each month or fraction thereof from the due date until paid computed at the annual rate of five (5) percentage points over the so-called The Wall Street Journal prime rate or at any applicable lesser maximum legally permissible rate for debts of this nature.  In addition, if Tenant fails to pay any installment of rent or any other sums due

 

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hereunder when due, Tenant shall pay Landlord an administration fee equal to five percent (5%) of the past due amount.

 

7.                                      SECURITY DEPOSIT

 

7.1                               Security Deposit.  Tenant shall, at the time that Tenant executes and delivers this Lease to Landlord, pay to Landlord a security deposit (the “Security Deposit”) in the amount set forth in Exhibit 1 securing Tenant’s obligations under this Lease.  In no event shall the Security Deposit be deemed to be a prepayment of rent or a measure of liquidated damages.  Tenant agrees that no interest shall accrue on the Security Deposit and that Landlord shall have the right to commingle the Security Deposit with other funds of Landlord.  In the event that Tenant shall default in any of its obligations under this Lease, Landlord shall have the right, without prior notice to Tenant, to apply the Security Deposit (or any portion thereof) towards the cure of any such default.  Tenant shall promptly, upon notice from Landlord, pay to Landlord any amount so applied by Landlord in order to restore the full amount of the Security Deposit.  In addition, in the event of a termination based upon the default of Tenant under this Lease, or a rejection of this Lease pursuant to the provisions of the Federal Bankruptcy Code, Landlord shall have the right to apply the Security Deposit (from time to time, if necessary) to cover the full amount of damages and other amounts due from Tenant to Landlord under this Lease.  Any amounts so applied shall, at Landlord’s election, be applied first to any unpaid rent and other charges which were due prior to the filing of the petition for protection under the Federal Bankruptcy Code.  The application of all or any part of the Security Deposit to any obligation or default of Tenant under this Lease shall not deprive Landlord of any other rights or remedies Landlord may have or constitute a waiver by Landlord.  Provided that Tenant is not in default of any of its obligations under this Lease at the expiration of the Term, Landlord shall refund to Tenant any portion of the Security Deposit which Landlord is then holding.

 

7.2                               Letter of Credit

 

(a)                                 In lieu of a cash Security Deposit, Tenant may deliver to Landlord, on the date that Tenant executes and delivers this Lease to Landlord, an Irrevocable Standby Letter of Credit (the “Letter of Credit”) which shall be (1) in the form attached hereto as Exhibit 6 (with such changes as Landlord may from time to time reasonably request), (2) issued by a bank approved in writing by Landlord with an investment grade credit rating from Moody’s (i.e., a rating of Baa3 or above), S&P (i.e., a rating of BBB- or above), or Fitch (i.e., a rating of BBB- or above) (an “Acceptable Bank”), (3) upon which presentment may be made in Boston, MA, Washington, DC, or elsewhere in the continental United States if presentation may be made by overnight courier (e.g., Federal Express), (4) in the amount set forth in Exhibit 1, and (5) for a term of at least one (1) year, subject to automatic extension in accordance with the terms of the Letter of Credit.  If the issuer of the Letter of Credit ceases to qualify as an Acceptable Bank or becomes subject to insolvency or receivership proceedings of any sort, Tenant shall be required to deliver a substitute Letter of Credit satisfying the conditions hereof (the “Substitute Letter of Credit”) within fifteen (15) business days after notice thereof from Landlord.  If the issuer of the Letter of Credit gives notice of its election not to renew such Letter of Credit for any additional period, Tenant shall be required to deliver a Substitute Letter of Credit at least thirty (30) days prior to the expiration of the term of such Letter of Credit.  If Tenant fails to furnish such renewal or replacement by the applicable deadline set forth above, Landlord may draw upon

 

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such Letter of Credit and hold the proceeds thereof (the “Security Proceeds”) as a cash Security Deposit pursuant to the terms of Section 7.1.  Tenant agrees that it shall maintain the Letter of Credit, in the full amount required hereunder, in effect until a date which is at least sixty (60) days after the Expiration Date of this Lease.  Tenant’s failure to maintain or replace the Letter of Credit as required hereunder shall be treated as a failure to pay rent for purposes of Landlord’s remedies.

 

(b)                                 If Tenant is in default of its obligations under this Lease, then Landlord shall have the right, at any time after such event, without giving any further notice to Tenant, to draw down from the Letter of Credit (or Substitute Letter of Credit or Additional Letter of Credit, as defined below, as the case may be) (i) the amount necessary to cure such default or (ii) if such default cannot reasonably be cured by the expenditure of money, the amount which, in Landlord’s opinion, is necessary to satisfy Tenant’s liability in account thereof.  In the event of any such draw by Landlord, Tenant shall, within fifteen (15) business days of written demand therefor, deliver to Landlord an additional Letter of Credit satisfying the foregoing conditions (the “Additional Letter of Credit”), except that the amount of such Additional Letter of Credit shall be the amount of such draw.  In addition, in the event of a termination based upon the default of Tenant under this Lease, or a rejection of this Lease pursuant to the provisions of the Federal Bankruptcy Code, Landlord shall have the right to draw upon the Letter of Credit (from time to time, if necessary) to cover the full amount of damages and other amounts due from Tenant to Landlord under this Lease.  Any amounts so drawn shall, at Landlord’s election, be applied first to any unpaid rent and other charges which were due prior to the filing of the petition for protection under the Federal Bankruptcy Code.  Tenant hereby covenants and agrees not to oppose, contest or otherwise interfere with any attempt by Landlord to draw down from said Letter of Credit including, without limitation, by commencing an action seeking to enjoin or restrain Landlord from drawing upon said Letter of Credit.  Tenant also hereby expressly waives any right or claim it may have to seek such equitable relief.  In addition to whatever other rights and remedies Landlord may have against Tenant if Tenant breaches its obligations under this paragraph, Tenant hereby acknowledges that it shall be liable for any and all damages which Landlord may suffer as a result of any such breach.

 

(c)                                  Upon request of Landlord, Tenant shall, at its expense, cooperate with Landlord in obtaining an amendment to or replacement of any Letter of Credit which Landlord is then holding so that the amended or new Letter of Credit reflects the name of any new owner of the Building.

 

(d)                                 To the extent that Landlord has not previously drawn upon any Letter of Credit, Substitute Letter of Credit, Additional Letter of Credit or Security Proceeds (collectively, the “Collateral”) held by Landlord, Landlord shall return such Collateral to Tenant on the expiration of the Term, less any amounts due from Tenant hereunder.

 

(e)                                  In no event shall the proceeds of any Letter of Credit be deemed to be a prepayment of rent or a measure of liquidated damages.

 

7.3                               Reduction in Letter of Credit.  Provided that Tenant (i) has not been in default of any of its monetary or material non-monetary obligations under this Lease in the twelve (12) months prior to the applicable Reduction Date, as hereafter defined, and (ii) has not been in

 

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default under this Lease beyond applicable notice and cure periods at any time during the Term (collectively, “Reduction Conditions”), the Letter of Credit shall be reduced as set forth below on each of the Reduction Dates.  As used herein, the “Hard Reduction Date” shall be the first day of the forty-third (43rd) full calendar month following the Rent Commencement Date (e.g., on June 1, 2019 if the Rent Commencement Date is November 10, 2015) and the “Revenue Reduction Date” shall be the first day of the month following the end of the first calendar year in the Term in which Tenant’s total annual revenue equals or exceeds Seventy Million and 00/100 Dollars ($70,000,00.00), as evidenced by a certified copy of Tenant’s most recent audited financial statements.  Provided that the Reduction Conditions are met on the applicable Reduction Date, the Letter of Credit shall be reduced by Five Hundred Thousand and 00/100 Dollars ($500,000.00), effective as of the Hard Reduction Date, and by Five Hundred Thousand and 00/100 Dollars ($500,000.00), effective as of the Revenue Reduction Date.  The parties acknowledge that the Revenue Reduction Date may occur before or after the Hard Reduction Date, or may never occur.  Tenant shall request such reduction in a written notice to Landlord after the applicable Reduction Date, and if the Reduction Conditions have been met, Landlord shall so notify Tenant, whereupon Tenant shall provide Landlord with a Substitute Letter of Credit in the reduced amount (in which event Landlord shall forthwith return the previously held Letter of Credit), or an amendment to the Letter of Credit reducing it to the reduced amount.  If the Reduction Conditions are not met on a Reduction Date, Tenant shall have no further right to reduce the amount of the Letter of Credit pursuant to this Section 7.3.

 

8.                                      SERVICES FURNISHED BY LANDLORD

 

8.1                               Electric Current.

 

(a)                                 The parties acknowledge that Landlord shall, as part of Landlord’s Base Building Work (as defined in Section 4.7), install a separate meter to measure the consumption of electricity in the Premises.  Tenant shall contract directly with the company supplying electricity to the Building for electric service, which service shall be billed directly to, and paid for by, Tenant.  Landlord shall maintain the separate meter, at Landlord’s cost, during the Term of the Lease.

 

(b)                                 If Tenant shall require electric current for use in the Premises in excess of such amount as is customarily required for office use in the amount of floor area comprised by the Premises, and if (i) in Landlord’s reasonable judgment, Landlord’s facilities are inadequate for such excess requirements or (ii) such excess use shall result in an additional burden on the Building air conditioning system and additional cost to Landlord on account thereof, then, as the case may be, (x) Landlord, upon written request and at the sole cost and expense of Tenant, will furnish and install such additional wire, conduits, feeders, switchboards and appurtenances as reasonably may be required to supply such additional requirements of Tenant if current therefor be available to Landlord, provided that the same shall be permitted by applicable laws and insurance regulations and shall not cause damage to the Building or the Premises or cause or create a dangerous or hazardous condition or entail excessive or unreasonable alterations or repairs or interfere with or disturb other tenants or occupants of the Building or (y) Tenant shall reimburse Landlord for such additional cost, as aforesaid.  In the case of any additional electrical equipment being installed by or for Tenant, all the electricity serving such equipment shall be

 

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submetered, at Tenant’s sole cost and expense, and Tenant shall reimburse Landlord for the cost of electricity consumed by such equipment as shown on such submeter.

 

(c)                                  Subject to the provisions of Section 8.8, Landlord shall not in any way be liable or responsible to Tenant for any loss, damage or expense which Tenant may sustain or incur if the quantity, character, or supply of electrical energy is changed or is no longer available or suitable for Tenant’s requirements.

 

(d)                                 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, conditioned, or delayed, and Tenant will promptly advise Landlord of any other alteration or addition to such electrical equipment and/or appliances.

 

8.2                               Water.

 

Landlord shall furnish cold water for ordinary premises, cleaning, toilet, lavatory and drinking purposes and hot water for the core restroom sinks.  If Tenant requires, uses or consumes water for any purpose other than for the aforementioned purposes, Landlord may (i) assess a reasonable charge for the additional water so used or consumed by Tenant or (ii) install a water meter and thereby measure Tenant’s water consumption for all purposes.  In the latter event, Landlord shall pay the cost of the meter and the cost of installation thereof and shall keep said meter and installation equipment in good working order and repair.  Tenant agrees to pay for water consumed, as shown on said meter, together with the sewer charge based on said meter charges, as and when bills are rendered, and on default in making such payment Landlord may pay such charges and collect the same from Tenant.  All piping and other equipment and facilities for use of water outside the Building core will be installed and maintained by contractors approved by Landlord at Tenant’s sole cost and expense.

 

8.3                               Elevators, Heat, and Cleaning.

 

(a)                                 “Business Hours” shall be defined as Mondays-Fridays (other than Building Holidays, as hereinafter defined) during the hours between 8:00 a.m. and 8:00 p.m. and on Saturdays (other than Building Holidays) during the hours between 8:00 a.m. and 1:00 p.m. “Building Holidays” shall include New Year’s Day, Martin Luther King Day, Presidents’ Day, Memorial Day, Independence Day, Labor Day, Columbus Day, Veterans’ Day, Thanksgiving Day and Christmas Day, and any other day declared a holiday by the federal government or the Commonwealth of Massachusetts.

 

(b)                                 Landlord at its expense shall: (i) provide necessary elevator facilities during Business Hours and have one elevator in operation available for Tenant’s non-exclusive use at all other times; (ii) furnish heat (substantially equivalent to that being furnished in first-class office buildings in Cambridge, Massachusetts to the Premises during Business Hours; and (iii) cause the office areas of the Premises to be cleaned on Mondays-Fridays (except for Building Holidays) provided the same are kept in order by Tenant substantially in accordance with the cleaning standards generally prevailing in first-class office buildings in Cambridge, Massachusetts.

 

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(c)                                  With respect to furnishing heat on Saturdays, if Landlord determines that the majority of tenants in the Building are not utilizing their premises on Saturdays, then in order to conserve energy, Landlord reserves the right to provide such service only on request; service during the hours between 8:00 a.m. and 1:00 p.m. will be without charge to Tenant, but Tenant must request same by giving Landlord written notice thereof at least one (1) business day prior to the date such service is required.

 

8.4                               Air Conditioning.

 

(a)                                 Landlord shall furnish to and distribute in the Premises air conditioning as normal seasonal changes may require during Business Hours when air conditioning may reasonably be required for the comfortable occupancy of the Premises by Tenant.  Tenant agrees to close the blinds when necessary because of the sun’s position, whenever the air conditioning system is in operation, and to abide by all the reasonable regulations and requirements which Landlord may prescribe for, the proper functioning and protection of the air conditioning system.

 

(b)                                 With respect to furnishing air conditioning on Saturdays, if Landlord determines that the majority of tenants in the Building are not utilizing their premises on Saturdays, then in order to conserve energy, Landlord reserves the right to provide such service only on request; service during the hours between 8:00 a.m. and 1:00 p.m. will be without charge to Tenant, but Tenant must request same by giving Landlord written notice thereof at least one (1) business day prior to the date such service is required.

 

8.5                               Additional Heat, Cleaning and Air Conditioning Services.

 

(a)                                 Landlord will use reasonable efforts, upon one (1) business day’s advance written notice from Tenant of its requirements in that regard, to furnish additional cleaning services to the Premises on days and at times other than as above provided.  Furthermore, Tenant can request additional heat or air conditioning services to the Premises on days and at times other than as above provided on demand from the Premises.

 

(b)                                 Tenant will pay to Landlord a reasonable charge (i) for any such additional heat or air conditioning service required by Tenant on an hourly basis at the prevailing hourly rate, (ii) for any extra cleaning of the Premises required because of the carelessness or indifference of Tenant or because of the nature of Tenant’s business, and (iii) for any cleaning done at the request of Tenant of any portions of the Premises which may be used for storage, a shipping room or other non-office purposes.  If the cost to Landlord for cleaning the Premises shall be increased due to the installation in the Premises, at Tenant’s request, of any materials or finish other than those which are building standard, Tenant shall pay to Landlord an amount equal to such increase in cost.  Landlord hereby represents to Tenant that, as of the Execution Date of this Lease, the charge of overtime heating and cooling is $75.00 per hour (subject to Landlord’s right, from time to time, to increase such charge to reflect actual increases in the cost of providing such services after prior notice to Tenant).

 

8.6                               Additional Air Conditioning Equipment.  In the event Tenant requires additional air conditioning for business machines, meeting rooms or other special purposes, or because of occupancy or excess electrical loads, any additional air conditioning units, chillers, condensers,

 

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compressors, ducts, piping and other equipment, such additional air conditioning equipment will be installed and maintained by contractors approved by Landlord at Tenant’s sole cost and expense, but only if, in Landlord’s reasonable judgment, the same will not cause damage or injury to the Building or create a dangerous or hazardous condition or entail excessive or unreasonable alterations, repairs or expense or interfere with or disturb other tenants; and Tenant shall reimburse Landlord in such an amount as will compensate Landlord for the cost incurred by Landlord in operating such additional air conditioning equipment.  All such equipment shall be submetered as provided in Section 8.1 hereof Landlord agrees that the HVAC in the Building is sufficient for Tenant’s Permitted Use based on the layout provided for Landlord’s TI Work.

 

8.7                               Repairs.  Except as otherwise provided in Articles 18 and 20, and subject to Tenant’s obligations in Article 14, Landlord shall keep and maintain the roof, exterior walls, structural floor slabs, columns, elevators, public stairways and corridors, public lavatories, equipment (including, without limitation, sanitary, plumbing, fire and life safety, electrical, heating, air conditioning, or other systems), exterior windows (except the interior surfaces of windows in tenant spaces), entrance to the Building, lobby of the Building and the Building Garage (as defined in Article 29.12) and other common facilities of both the Building and the Common Areas in good condition and repair.

 

8.8                               Interruption or Curtailment of Services.

 

(a)                                 When necessary by reason of accident or emergency, or for repairs, alterations, replacements or improvements which in the reasonable judgment of Landlord are desirable or necessary to be made, or of difficulty or inability in securing supplies or labor, or of strikes, or of Force Majeure (as defined in Article 26 hereof), whether such other cause be similar or dissimilar to those hereinabove specifically mentioned until said cause has been removed, Landlord reserves the right to interrupt, curtail, stop or suspend (i) the furnishing of heating, elevator, air conditioning, and cleaning services and (ii) the operation of the plumbing and electric systems.  Landlord shall exercise reasonable diligence to eliminate the cause of any such interruption, curtailment, stoppage or suspension, but there shall be no diminution or abatement of rent or other compensation due from Landlord to Tenant hereunder, nor shall this Lease be affected or any of Tenant’s obligations hereunder reduced, and Landlord shall have no responsibility or liability for any such interruption, curtailment, stoppage, or suspension of services or systems.

 

(b)                                 Notwithstanding anything to the contrary in this Lease contained, if the Premises shall lack any service which Landlord is required to provide hereunder (thereby rendering the Premises or a portion thereof untenantable) (a “Service Interruption”) so that, for the Landlord Service Interruption Cure Period, as hereinafter defined, the continued operation in the ordinary course of Tenant’s business is materially adversely affected and if Tenant ceases to use the affected portion of the Premises during the period of untenantability as the direct result of such lack of service, then, provided that Tenant ceases to use the affected portion of the Premises during the entirety of the Landlord Service Interruption Cure Period and that such untenantability and Landlord’s inability to cure such condition is not caused by the fault or neglect of Tenant or Tenant’s agents, employees or contractors, Yearly Rent, Operating Expense Excess and Tax Excess shall thereafter be abated in proportion to such untenantability until such condition is cured sufficiently to allow Tenant to occupy the affected portion of the Premises.  For the

 

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purposes hereof, the “Landlord Service Interruption Cure Period” shall be defined as three (3) consecutive business days after Landlord’s receipt of written notice from Tenant of the condition causing untenantability in the Premises, provided however, that the Landlord Service Interruption Cure Period shall be seven (7) consecutive business days after Landlord’s receipt of written notice from Tenant of such condition causing untenantability in the Premises if either the condition was caused by causes beyond Landlord’s control or Landlord is unable to cure such condition as the result of causes beyond Landlord’s control.

 

(c)                                  The provisions of subparagraph (b) of this Section 8.8 shall not apply in the event of untenantability caused by fire or other casualty, or taking (see Articles 18 and 20).  The remedies set forth in this Section 8.8 shall be Tenant’s sole remedies in the event of a Service Interruption.

 

8.9                               Energy Conservation.  Notwithstanding anything to the contrary in this Article 8 or in this Lease contained, Landlord may institute, and Tenant shall comply with, such policies, programs and measures as may be necessary, required, or expedient for the conservation and/or preservation of energy or energy services, or as may be necessary or required to comply with applicable codes, rules, regulations or standards.

 

8.10                        Miscellaneous.  All services provided by Landlord to Tenant are based upon an assumed maximum premises population of one person per two hundred (200) square feet of Total Rentable Area of the Premises (one person per one hundred fifty (150) square feet of Total Rentable Area of the Premises for air conditioning), which limit Tenant shall in no event exceed.

 

8.11                        Access.  So long as Tenant shall comply with Landlord’s reasonable security program for the Building, Tenant shall have access to the Premises and (for monthly pass holders) the Building Garage twenty-four (24) hours per day, three hundred sixty-five (365) days per year, during the Term of this Lease, except in an emergency.  The Building is currently accessed by an electronic access system wherein tenants are permitted access to the Building by presenting electronic access cards at the electronic card readers.  Tenant shall have the right, at Tenant’s cost and subject to Landlord’s review and approval, and provided that Tenant provides Landlord with access cards or codes thereto, to install a security system controlling access to the Premises that is compatible with the Building system.

 

9.                                      OPERATING COSTS AND TAXES

 

9.1                               Definitions.  As used in this Article 9, the words and terms which follow mean and include the following:

 

(a)                                 “Operating Year” shall mean a calendar year in which occurs any part of the Term of this Lease.

 

(b)                                 “Operating Costs in the Base Year” shall be the amount as stated in Exhibit 1.

 

(c)                                  “Tenant’s Proportionate Share” shall be the percentage as stated in Exhibit 1.

 

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(d)                                 “Taxes” shall mean the real estate taxes and other taxes, levies and assessments imposed upon the Building and the land on which it stands and upon any personal property of Landlord used in the operation thereof, or Landlord’s interest in the Building or such personal property; charges, fees and assessments for transit, housing, police, fire or other governmental services or purported benefits to the Building; service or user payments in lieu of taxes; any assessments in connection with any business improvement district in which the Building may be located or any similar program(s) in which the Building may participate; and any and all other taxes, levies, betterments, assessments and charges arising from the ownership, leasing, operating, use or occupancy of the Building or based upon rentals derived therefrom, which are or shall be imposed by National, State, Municipal or other authorities.  As of the Execution Date, “Taxes” shall not include any franchise, rental, income or profit tax, capital levy or excise, provided, however, that any of the same and any other tax, excise, fee, levy, charge or assessment, however described, that may in the future be levied or assessed as a substitute for or an addition to, in whole or in part, any tax, levy or assessment which would otherwise constitute “Taxes,” whether or not now customary or in the contemplation of the parties on the Execution Date of this Lease, shall constitute “Taxes,” but only to the extent calculated as if the Building and the land upon which it stands is the only real estate owned by Landlord.  “Taxes” shall also include expenses of tax abatement or other proceedings contesting assessments or levies.  Wherever the term “Building” is used in determining Taxes, it shall mean Taxes specific to the actual Building, or the equitably prorated and apportioned portion of those Taxes which apply to the Building together with other buildings or properties.

 

(e)                                  “Tax Base” shall be the amount stated in Exhibit 1 and shall apply to a Tax Period of twelve (12) months.  Tax Base shall be reduced pro rata if and to the extent that the Tax Period contains fewer than twelve (12) months.

 

(f)                                   “Tax Period” shall be any fiscal/tax period in respect of which Taxes are due and payable to the appropriate governmental taxing authority, any portion of which period occurs during the Term of this Lease, the first such Tax Period being the one in which the Rent Commencement Date occurs.

 

(g)                                  “Operating Costs”:

 

(1)                                 Definition of Operating Costs.  “Operating Costs” shall mean all costs incurred by Landlord in the operation and management, for repair and replacements, cleaning and maintenance of the Building including, without limitation, vehicular and pedestrian passageways related to the Building, related equipment, facilities and appurtenances, elevators, cooling and heating equipment.  In the event that Landlord or Landlord’s managers or agents perform services for the benefit of the Building off-site which would otherwise be performed on-site (e.g., accounting), the cost of such services shall be reasonably allocated among the properties benefiting from such service and shall be included in Operating Costs.  Operating Costs shall include, without limitation, those categories of “Specifically Included Categories of Operating Costs”, as set forth below, but shall not include “Excluded Costs,” as hereinafter defined.  If Landlord incurs Operating Costs for the Building together with

 

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one or more other buildings or properties, the shared costs and expenses shall be equitably prorated and apportioned between the Building and the other buildings or properties.  Wherever the term “Building” is used in determining Operating Costs, it shall mean Operating Costs specific to the actual Building, or the equitably prorated and apportioned portion of those costs which apply to the Building together with other buildings or properties.

 

(2)                                 Definition of Excluded Costs.  “Excluded Costs” shall be defined as the following:

 

(i)                                     Costs of renovating or otherwise improving, decorating, painting or redecorating space for tenants or other occupants of the Building.

 

(ii)                                  Leasing fees or commissions, advertising and promotional expenses, legal fees, the cost of tenant improvements, build out allowances, moving expenses, assumption of rent under existing leases and other concessions incurred in connection with leasing space in the Building.

 

(iii)                               All capital expenditures, depreciation and amortization, except as otherwise explicitly provided in this Article 9.

 

(iv)                              Any cost or expense to the extent that Landlord is reimbursed other than as a payment for Operating Costs, including, but not limited to, (i) work or services performed for any tenant (including Tenant) at such tenant’s cost, (ii) the cost of any item for which Landlord is paid or reimbursed by warranties, service contracts, insurance proceeds or otherwise, (iii) increased insurance premiums or taxes assessed specifically to any tenant of the Building, (iv) charges (including applicable taxes) for electricity, water and other utilities for which Landlord is reimbursed by any tenant; and (v) costs incurred in connection with the making of repairs which are the reimbursed by another tenant of the Building.

 

(v)                                 Wages, salaries, or other compensation paid to any executive employees above the grade of general 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 Costs, to the extent only that the cost of such service does not exceed competitive cost of such service had such service been rendered by an outside consultant.

 

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(vi)                              Interest on debt or amortization payments on any mortgage or mortgages (except to the extent that such interest is included together with the amortization of capital expenditures which are permitted to be passed through pursuant to the provisions of this Article 9).

 

(3)                                 Capital Expenditures.  Capital expenditures for replacements of existing capital items shall not be included in Operating Costs.  If a new capital item is acquired which does not replace another capital item which was worn out, has become obsolete, etc., then there shall be included in Operating Costs for each Operating Year in which and after such capital expenditure is made the Annual Charge-Off of such capital expenditure.

 

(i)                                     Limitation.  Notwithstanding anything to the contrary herein contained, with respect to a new (i.e., as opposed to replacement) capital expenditure, such capital expenditure shall be included in Operating Costs only if:

 

(x)                                 the new capital item being acquired is required by law first enacted or adopted after the Execution Date of this Lease; or

 

(y)                                 The new capital item is reasonably projected to reduce Operating Costs.

 

(ii)                                  Annual Charge-Off.  “Annual Charge-Off” shall be defined as the annual amount of principal and interest payments which would be required to repay a loan (“Capital Loan”) in equal monthly installments over the Useful Life, as hereinafter defined, of the capital item in question on a level payment direct reduction basis at an annual interest rate equal to the Capital Interest Rate, as hereinafter defined, where the initial principal balance is the cost of the capital item in question.  However, if a particular capital expenditure effects savings in Building operating costs including, without limitation, energy-related costs, and such savings, on an annual basis (“Annual Savings”), exceed the Annual Charge-Off of such capital expenditure computed as aforesaid, then and in such event, the Annual Charge-Off shall be increased to an amount equal to the Annual Savings; and in such circumstances, the increased Annual Charge-Off (in the amount of the Annual Savings) shall be made for such period of time as it would take to fully amortize the cost of the capital item in question, together with interest thereon at the Capital Interest Rate as aforesaid, in equal monthly payments, each in the amount of one-twelfth (1/12th) of the Annual Savings, with such payments being applied first to interest and the balance to principal.

 

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(iii)                               Useful Life.  “Useful Life” shall be reasonably determined by Landlord in accordance with generally accepted accounting principles and practices in effect at the time of acquisition of the capital item.

 

(iv)                              Capital interest Rate.  “Capital Interest Rate” shall be defined as an annual rate of either the so-called The Wall Street Journal prime rate at the time the capital expenditure is made or, if the capital item is acquired through third-party financing, then the actual (including fluctuating) rate paid by Landlord in financing the acquisition of such capital item.

 

(4)                                 “Specifically Included Categories of Operating Costs.” Operating Costs shall include, but not be limited to, the following:

 

Taxes (other than real estate taxes):  Sales, Federal Social Security, Unemployment and Medicare Taxes and contributions and State Unemployment taxes and contributions accruing to and paid by Landlord on account of all employees of Landlord and/or Landlord’s managing agent, who are employed in, about or on account of the Building, except that taxes levied upon the net income of Landlord and taxes withheld from employees, and “Taxes” as defined in Section 9.1(d) shall not be included herein.

 

Water:  All charges and rates connected with water supplied to the Building and related sewer use charges.

 

Heat and Air Conditioning:  All charges connected with heat and air conditioning supplied to the Building, excluding capital expenses for replacement, except as otherwise permitted under this Lease.

 

Wages:  Wages and the cost of all employee benefits of all employees of Landlord and/or Landlord’s managing agent who are employed in, about or on account of the Building.

 

Cleaning:  The cost of labor and material for cleaning the Building, surrounding areaways and windows in the Building.

 

Elevator Maintenance:  All expenses for or on account of the upkeep and maintenance of all elevators in the Building.

 

Management Fee:  The cost of professional management of the Building in an amount equal to three percent (3%) of the gross revenues of the Building, as adjusted per Section 9.1(g)(5) below.

 

Office Expenses:  The cost of office expense, including, without limitation, rent, business supplies and equipment.

 

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Electricity:  The cost of all electric current for the operation of any machine, appliance or device used for the operation of the Premises and the Building, including the cost of electric current for the elevators, lights, air conditioning and heating, but not including electric current which is paid for directly to the utility by any occupant of the Building.  If and so long as Tenant is billed directly by the electric utility for its own consumption as determined by its separate meter, or billed directly by Landlord as determined by a check meter, then Operating Costs shall include only Building and public area electric current consumption and not any demised premises electric current consumption.  Wherever separate metering is unlawful, prohibited by utility company regulation or tariff or is otherwise impracticable, relevant consumption figures for the purposes of this Article 9 shall be determined by fair and reasonable allocations and engineering estimates made by Landlord.  Furthermore, if and to the extent that the figure for Operating Costs in the Base Year shall include any component representing the cost to Landlord of electric current supplied to any tenant’s premises under so-called “rent-inclusion” lease arrangements, then if such cost is eliminated from Operating Costs in an Operating Year in accordance with the foregoing provisions, the figure for Operating Costs in the Base Year for the purposes of this Article 9 shall likewise be reduced by the amount for such cost component.

 

Insurance, etc.:  Fire, casualty, liability, rent loss and such other insurance as may from time to time be carried by Landlord with respect to the Building, and the fees of Landlord’s insurance consultants or brokers in connection therewith.

 

Other:  Any common area or other charges which Landlord is required to pay with respect to Landlord’s interest in the Building pursuant to any condominium, reciprocal easement or other similar documents applicable thereto and all other expenses customarily incurred in connection with the operation and maintenance of first-class office buildings in the City or Town wherein the Building is located including, without limitation, insurance deductible amounts.

 

(5)                                 Gross-Up Provision.  Notwithstanding the foregoing, in determining the amount of Operating Costs for any calendar year or portion thereof falling within the Term (including Operating Costs in the Base Year), if less than ninety-five percent (95%) of the Rentable Area of the Building shall have been occupied by tenants at any time during the period in question, then, at Landlord’s election, Operating Costs for such period shall be adjusted to equal the amount Operating Costs would have been for such period had occupancy been ninety-five percent (95%) throughout such period.  The extrapolation of Operating Costs under this paragraph shall be performed by appropriately adjusting the cost of those components of Operating Costs that are impacted by changes in the occupancy of the Building.

 

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9.2                               Tax Excess.  If in any Tax Period the Taxes exceed the Tax Base, Tenant shall pay to Landlord Tenant’s Proportionate Share of such excess, such amount being hereinafter referred to as “Tax Excess”.  Tenant shall pay the Tax Excess as follows: commencing July 1, 2016, Tenant shall make monthly estimated payments on account of the projected Tax Excess, as reasonably estimated by Landlord on the basis of the most recent Tax data available.  Such monthly estimated payments shall be made commencing on the aforesaid date and otherwise at the same time and in the same manner as Tenant’s monthly payments of Yearly Rent.  Landlord shall furnish to Tenant, after the end of each year, a statement setting forth in reasonable detail the basis for the computation of Tax Excess.  If the total of Tenant’s monthly estimated payments with respect to any Tax Period is greater than the actual Tax Excess for such Tax Period, Tenant may credit the difference against the next installment of rental or other charges due to Landlord hereunder.  If the total of such payments is less than the actual Tax Excess for such Tax Period, Tenant shall pay the difference to Landlord within thirty (30) days after Landlord’s billed therefor.

 

Appropriate credit against Tax Excess shall be given for any refund obtained by reason of a reduction in any Taxes by the Assessors or the administrative, judicial or other governmental agency responsible therefor.  The original computations, as well as reimbursement or payments of additional charges, if any, or allowances, if any, under the provisions of this Section 9.2 shall be based on the original assessed valuations, including the valuation for fiscal/tax year 2016, with adjustments to be made at a later date when the tax refund, if any, shall be paid to Landlord by the taxing authorities.  Expenditures for legal fees and for other similar or dissimilar reasonable third party expenses incurred in obtaining the tax refund may be charged against the tax refund before the adjustments are made for the Tax Period.

 

9.3                               Operating Costs Excess.  If the Operating Costs in any Operating Year exceed the Operating Costs in the Base Year, Tenant shall pay to Landlord Tenant’s Proportionate Share of such excess, such amount being hereinafter referred to as “Operating Costs Excess.” Tenant shall pay the Operating Costs Excess as follows: commencing on the later to occur of (x) January 1, 2016 and (y) the Rent Commencement Date, Tenant shall make monthly estimated payments on account of the projected Operating Costs Excess, as reasonably estimated by Landlord on the basis of the most recent Operating Costs data or budget available.  Such monthly estimated payments shall be made commencing on the aforesaid date and otherwise at the same time and in the same manner as Tenant’s monthly payments of Yearly Rent.  Landlord shall furnish to Tenant, after the end of each year, a statement setting forth in reasonable detail the basis for the computation of Operating Costs Excess for each year, and shall provide Tenant with reasonable supporting information upon written request therefor given within two hundred seventy (270) days of Tenant’s receipt of such statement.  If the total of Tenant’s monthly estimated payments with respect to any Operating Year is greater than the actual Operating Costs Excess for such Operating Year, Tenant may credit the difference against the next installment of rental or other charges due to Landlord hereunder (or, if the Term shall have been terminated or expired, Landlord shall refund such excess within thirty (30) days after written request therefor).  If the total of such payments is less than the actual Operating Costs Excess for such Operating Year, Tenant shall pay the difference to Landlord within thirty (30) days after billed therefor.

 

9.4                               Part Years.  If Tenant is obligated to pay Operating Costs Excess or Tax Excess for only a part of an Operating Year or a Tax Period, Tenant’s Proportionate Share of the

 

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Operating Costs Excess or Tax Excess, as the case may be, in respect of such Operating Year or Tax Period shall be reduced to an amount determined by multiplying such Tenant’s Proportionate Share by a fraction, the numerator of which is the number of days within such Operating Year or Tax Period for which Tenant has liability for the Operating Costs Excess or Tax Excess, as the case may be, and the denominator of which is three hundred sixty-five (365).

 

9.5                               Effect of Taking.  In the event of any taking of the Building or the land upon which it stands under circumstances whereby this Lease shall not terminate under the provisions of Article 20 then, for the purposes of determining Tax Excess there shall be substituted for the Tax Base originally provided for herein a fraction of such Tax Base, the numerator of which fraction shall be the Taxes for the first Tax Period subsequent to the condemnation or taking which takes into account such condemnation or taking, and the denominator of which shall be the Taxes for the last Tax Period prior to the condemnation or taking, which did not take into account such condemnation or taking.  Tenant’s Proportionate Share shall be adjusted appropriately to reflect the proportion of the Premises and/or the Building remaining after such taking.

 

9.6                               Disputes, etc.  Any disputes arising under this Article 9 may, at the election of either party, be submitted to arbitration as hereinafter provided.  Any obligations under this Article 9 which shall not have been paid at the expiration or sooner termination of the Term of this Lease shall survive such expiration and shall be paid when and as the amount of same shall be determined to be due.

 

10.                               CHANGES OR ALTERATIONS BY LANDLORD

 

Landlord reserves the right, exercisable by itself or its nominee, at any time and from time to time without the same constituting an actual or constructive eviction and without incurring any liability to Tenant therefor or otherwise affecting Tenant’s obligations under this Lease, to make such changes, alterations, additions, improvements, repairs or replacements in or to: (i) the Building (including the Premises, provided that any changes made to the Premises shall not materially impact Tenant’s use thereof for the Permitted Use or materially reduce the usable area of the Premises) and the fixtures and equipment thereof, (ii) the street entrances, halls, passages, elevators, escalators, and stairways of the Building, and (iii) the Common Areas and facilities located therein, as Landlord may deem necessary or desirable, and to change the arrangement and/or location of entrances or passageways, doors and doorways, and corridors, elevators, stairs, toilets, or other public parts of the Building (other than to or within the Premises) and/or the Common Areas, provided, however, that there be no unreasonable material obstruction of the right of access to the Premises or the parking described in Section 29.12, or unreasonable interference with the use and enjoyment of the Premises by Tenant.  Any entry by Landlord shall be in accordance with Section 2.3.  Nothing contained in this Article 10 shall be deemed to relieve Tenant of any duty, obligation or liability of Tenant with respect to making any repair, replacement or improvement or complying with any law, order or requirement of any governmental or other authority.  Landlord reserves the right to adopt and at any time and from time to time to change the name or address of the Building provided Landlord gives at least thirty (30) days’ prior written notice to Tenant, at any time, and further provided that Landlord shall reimburse Tenant for the actual reasonable cost of new stationery, business cards and marketing materials required as a result of such change.  Neither this Lease nor any use by

 

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Tenant shall give Tenant any right or easement for the use of any door, passage, concourse or walkway within the Building (other than to or within the Premises) or in the Common Areas, and the use of such doors, passages, concourses or walkways may be regulated or discontinued at any time and from time to time by Landlord without notice to Tenant and without affecting the obligation of Tenant hereunder or incurring any liability to Tenant therefor, provided, however, that there be no unreasonable obstruction of the right of access to, or unreasonable interference with the use of the Premises by Tenant.  Landlord shall use commercially reasonable efforts to perform exceptionally noisy or otherwise invasive work in the vicinity of the Premises in a manner which will minimize interference with Tenant’s use and enjoyment of the Premises to the extent reasonably practicable.

 

If at any time any windows of the Premises are temporarily closed or darkened for any reason whatsoever including but not limited to Landlord’s own acts, Landlord shall not be liable for any damage Tenant may sustain thereby, and Tenant shall not be entitled to any compensation therefor nor abatement of rent, nor shall the same release Tenant from its obligations hereunder or constitute an eviction, provided that Landlord shall use commercially reasonable efforts to minimize the period during which any windows are closed or darkened as aforesaid.

 

11.                               FIXTURES, EQUIPMENT AND IMPROVEMENTS—REMOVAL BY TENANT

 

All fixtures, equipment, improvements and appurtenances attached to or built into the Premises prior to or during the Term, whether by Landlord at its expense or at the expense of Tenant (either or both) or by Tenant shall be and remain part of the Premises and shall not be removed by Tenant during or at the end of the Term unless Landlord otherwise elects to require Tenant to remove such fixtures, equipment, improvements and appurtenances, in accordance with Articles 12 and/or 22 of this Lease.  All electric, plumbing, heating and sprinkling systems, fixtures and outlets, vaults, paneling, molding, shelving, radiator enclosures, cork, rubber, linoleum and composition floors, ventilating, silencing, air conditioning and cooling equipment, shall be deemed to be included in such fixtures, equipment, improvements and appurtenances, whether or not attached to or built into the Premises.  Landlord agrees to notify Tenant whether it will be required to remove any such fixtures, equipment, improvements and appurtenances at the end of the term at the time that Landlord approves Tenant’s plans for same.  Where not built into the Premises, all removable electric fixtures, carpets, drinking or tap water facilities, furniture, or trade fixtures or business equipment or Tenant’s inventory or stock in trade shall not be deemed to be included in such fixtures, equipment, improvements and appurtenances and may be, and upon the request of Landlord, will be, removed by Tenant upon the condition that such removal shall not materially damage the Premises or the Building and that the cost of repairing any damage to the Premises or the Building arising from installation or such removal shall be paid by Tenant.  If this Lease shall be terminated by reason of Tenant’s breach or default, then, notwithstanding anything to the contrary in this Lease contained, Landlord shall have a lien against all Tenant’s property in the Premises or elsewhere in the Building at the time of such termination to secure Landlord’s rights under Article 21 hereof.  Tenant shall, within ten (10) days of Landlord’s written request, from time to time, execute and deliver to Landlord such documentation (e.g., UCC statements) as may be necessary to enable Landlord to perfect such lien.

 

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12.                               ALTERATIONS AND IMPROVEMENTS BY TENANT

 

Tenant shall make no alterations, decorations, installations, removals, additions or improvements in or to the Premises (“Alterations”) without Landlord’s prior written consent and then only those that are made by contractors or mechanics approved by Landlord.  No installations or work shall be undertaken or begun by Tenant until: (i) Landlord has approved written plans and specifications and a time schedule for such work; (ii) Tenant has made provision for either written waivers of liens from all contractors, laborers and suppliers of materials for such installations or work, the filing of lien bonds on behalf of such contractors, laborers and suppliers, or other appropriate protective measures approved by Landlord; and (iii) Tenant has procured appropriate surety payment and performance bonds with respect to work, the cost of which exceeds Seventy-Five Thousand and 00/100 Dollars ($75,000.00).  No amendments or additions to such plans and specifications shall be made without the prior written consent of Landlord.  Landlord’s consent and approval required under this Article 12 shall not be unreasonably withheld.  Landlord’s approval is solely given for the benefit of Landlord, and neither Tenant nor any third party shall have the right to rely upon Landlord’s approval of Tenant’s plans for any purpose whatsoever.  Without limiting the foregoing, Tenant shall be responsible for all elements of the design of Tenant’s plans (including, without limitation, compliance with law, functionality of design, the structural integrity of the design, the configuration of the Premises and the placement of Tenant’s furniture, appliances and equipment), and Landlord’s approval of Tenant’s plans shall in no event relieve Tenant of the responsibility for such design.  Landlord shall have no liability or responsibility for any claim, injury or damage alleged to have been caused by the particular materials, whether building standard or non-building standard, appliances or equipment selected by Tenant in connection with any work performed by or on behalf of Tenant in the Premises including, without limitation, furniture, carpeting, copiers, laser printers, computers and refrigerators.  Any such Alterations shall be done at Tenant’s sole expense and at such times and in such manner as Landlord may from time to time reasonably designate, and Tenant shall pay Landlord an oversight fee equal to three percent (3%) of the hard costs of any such work.  If Tenant shall make any Alterations, then Landlord may elect to require Tenant at the expiration or sooner termination of the Term of this Lease to restore the Premises to substantially the same condition as existed at the Commencement Date.  If Tenant so requests in writing at the time that Tenant requests Landlord’s approval of such Alterations, Landlord agrees to make such election at the time that Landlord approves Tenant’s plans for any such Alterations.

 

Notwithstanding anything to the contrary herein contained, Tenant shall have the right, without obtaining Landlord’s consent and without paying the aforesaid oversight fee, to make interior nonstructural Alterations costing not more than Seventy-Five Thousand and 00/100 Dollars ($75,000.00) in each instance, provided however that:

 

(a)                                 Tenant shall give prior written notice to Landlord of such Alterations;

 

(b)                                 Tenant shall submit to Landlord plans for such Alterations if Tenant utilizes plans for such Alterations; and

 

(c)                                  such Alterations shall not materially affect any of the Building’s systems, or the ceiling of the Premises.

 

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13.                               TENANT’S CONTRACTORS—MECHANICS’ AND OTHER LIENS—STANDARD OF TENANT’S PERFORMANCE—COMPLIANCE WITH LAWS

 

Whenever Tenant shall make any Alterations in or to the Premises—whether such work be done prior to or after the Commencement Date—Tenant will strictly observe the following covenants and agreements:

 

(a)                                 Tenant agrees that it will not, either directly or indirectly, use any contractors and/or materials if, in the reasonable judgment of Landlord, their use may cause any harm to Landlord or create any difficulty, whether in the nature of a labor dispute or otherwise, in the construction, maintenance and/or operation of the Building or any part thereof

 

(b)                                 In no event shall any material or equipment be incorporated in or added to the Premises, so as to become a fixture or otherwise a part of the Building, in connection with any such Alteration which is subject to any lien (other than a notice of contract or mechanics’ lien which shall be governed by the provisions hereunder set forth), charge, mortgage or other encumbrance of any kind whatsoever or is subject to any security interest or any form of title retention agreement, except for leased office equipment that is not permanently attached to the Premises.  No installations or work shall be undertaken or begun by Tenant until Tenant has complied with the requirements of Article 12 hereof.  Any mechanic’s lien filed against the Premises or the Building for work claimed to have been done for, or materials claimed to have been furnished to, Tenant shall be discharged by Tenant within twenty (20) days thereafter, at Tenant’s expense by filing the bond required by law or otherwise.  If Tenant fails so to discharge or bond any lien, Landlord may do so at Tenant’s expense, and Tenant shall reimburse Landlord for any expense or cost incurred by Landlord in so doing within fifteen (15) days after rendition of a bill therefor.

 

(c)                                  All installations or work done by Tenant shall be at its own expense (except as otherwise specifically set forth herein) and shall at all times comply with (i) laws, rules, orders and regulations of governmental authorities having jurisdiction thereof; (ii) orders, rules and regulations of any Board of Fire Underwriters, or any other body hereafter constituted exercising similar functions, and governing insurance rating bureaus; (iii) the Rules and Regulations of Landlord, initially set forth in Exhibit 4 hereof, as the same may be modified from time to time over the Term of this Lease; and (iv) plans and specifications prepared by and at the expense of Tenant theretofore submitted to and approved by Landlord.

 

(d)                                 Tenant shall procure all necessary permits before undertaking any work in the Premises; do all of such work in a good and workmanlike manner, employing materials of good quality and complying with all governmental requirements; and defend, save harmless, exonerate and indemnify Landlord and Landlord’s managing agent from all injury, loss or damage to any person or property occasioned by or growing out of such work, except to the extent caused by the negligence or willful misconduct of Landlord.  Tenant shall cause contractors employed by Tenant (i) to carry the insurance required in Section II of Exhibit 3 and (ii) to submit certificates evidencing such coverage to Landlord prior to the commencement of such work.

 

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14.                               REPAIRS BY TENANT—FLOOR LOAD

 

14.1                        Repairs by Tenant.  Except as otherwise provided in Article 8 hereof, Tenant shall keep the Premises neat and clean and in such repair, order and condition as the same are in on the Commencement Date or may be put in during the Term hereof, reasonable use and wearing thereof and damage by fire or by other casualty excepted.  Tenant shall be solely responsible for the proper maintenance of all equipment and appliances operated by Tenant within the Premises, including, without limitation, copiers, laser printers, computers and refrigerators.  Tenant shall make all repairs in and about the Premises necessary to preserve them in such repair, order and condition, which repairs shall be in quality and class equal to the original work.  Landlord may elect, at the expense of Tenant, to make any such repairs or to repair any damage or injury to the Building or, during the continuance of any Event of Default, the Premises caused by moving property of Tenant in or out of the Building, or by installation or removal of furniture or other property, or by misuse by, or neglect, or improper conduct of, Tenant or Tenant’s servants, employees, agents, contractors, or licensees.

 

14.2                        Floor Load—Heavy Machinery.  Tenant shall not place a load upon any floor of the Premises exceeding the floor load per square foot of area which such floor was designed to carry and which is allowed by law.  Landlord reserves the right to prescribe the weight and position of all unusually heavy business machines and mechanical equipment, including safes, which shall be placed so as to distribute the weight.  Business machines and mechanical equipment shall be placed and maintained by Tenant at Tenant’s expense in settings sufficient in Landlord’s judgment to absorb and prevent vibration, noise and annoyance.  Tenant shall not move any safe, heavy machinery, heavy equipment, freight, bulky matter, or fixtures into or out of the Building without Landlord’s prior written consent.  If such safe, machinery, equipment, freight, bulky matter or fixtures require special handling, Tenant agrees to employ only persons holding a Master Rigger’s License to do said work, and that all work in connection therewith shall comply with applicable laws and regulations.  Any such moving shall be at the sole risk and hazard of Tenant, and Tenant will defend, indemnify and save Landlord harmless against and from any liability, loss, injury, claim or suit resulting directly or indirectly from such moving.  Except as otherwise required or directed in writing by Landlord, proper placement of all such business machines, etc., in the Premises shall be Tenant’s responsibility.

 

15.                               INSURANCE, INDEMNIFICATION, EXONERATION AND EXCULPATION

 

15.1                        General Liability Insurance.  Tenant shall procure, keep in force, maintain and pay for insurance throughout the Term in accordance with the terms and in the amounts set forth in Exhibit 3.

 

15.2                        General.  Tenant will save Landlord, its agents and employees, harmless and will exonerate, defend and indemnify Landlord, its agents and employees, from and against any and all claims, liabilities or penalties asserted by or on behalf of any person, firm, corporation or public authority arising from Tenant’s breach of this Lease or:

 

(a)                                 On account of or based upon any injury to person, or loss of or damage to property, sustained or occurring on the Premises on account of or based upon the act, omission,

 

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fault, negligence or misconduct of any person whomsoever (except to the extent the same is caused by Landlord, its agents, contractors or employees);

 

(b)                                 On account of or based upon any injury to person, or loss of or damage to property, sustained or occurring elsewhere (other than on the Premises) in or about the Building (and, in particular, without limiting the generality of the foregoing, on or about the elevators, stairways, public corridors, sidewalks, concourses, arcades, malls, galleries, vehicular tunnels, approaches, areaways, roof, or other appurtenances and facilities used in connection with the Building or Premises) on account of or based upon the act, omission, fault, negligence or misconduct of Tenant, its agents, employees or contractors or anyone acting by, through or under any of the foregoing; and

 

(c)                                  On account of or based upon (including monies due on account of) any work or thing whatsoever done (other than by Landlord or its contractors, or agents or employees of either, or anyone acting by, through or under any of the foregoing) on the Premises during the Term of this Lease and during the period of time, if any, prior to the Commencement Date that Tenant may have been given access to the Premises.

 

15.3                        Property of Tenant.  In addition to and not in limitation of the foregoing, Tenant covenants and agrees that, to the maximum extent permitted by law, all merchandise, furniture, fixtures and property of every kind, nature and description related or arising out of Tenant’s leasehold estate hereunder, which may be in or upon the Premises or Building, in the public corridors, or on the sidewalks, areaways and approaches adjacent thereto, shall be at the sole risk and hazard of Tenant, and that if the whole or any part thereof shall be damaged, destroyed, stolen or removed from any cause or reason whatsoever, other than as a direct result of the gross negligence or willful misconduct of Landlord, its agents, contractors, or employees, no part of said damage or loss shall be charged to, or borne by, Landlord.

 

15.4                        Bursting of Pipes, etc.  Landlord shall not be liable for any injury or damage to persons or property resulting from fire, explosion, falling plaster, steam, gas, air contaminants or emissions, electricity, electrical or electronic emanations or disturbance, water, rain or snow or leaks from any part of the Building or from the pipes, appliances, equipment or plumbing works or from the roof, street or sub-surface or from any other place or caused by dampness, vandalism, malicious mischief or by any other cause of whatever nature, unless (x) caused by or due to the negligence of Landlord, its agents, servants or employees, and (y) if Tenant knew of such condition sufficiently in advance of the occurrence of any such injury or damage as would have enabled Landlord to prevent such damage or loss had Tenant notified Landlord of such condition, only after (i) notice to Landlord of the condition and (ii) the expiration of a reasonable time (such reasonableness to take into account the potential seriousness of the condition and, in the event of imminent danger to persons or property, shall mean promptly upon receipt of such notice) after such notice has been received by Landlord without Landlord having taken all reasonable and practicable means to cure or correct such condition.  In the case of (ii) above, pending such cure or correction by Landlord, Tenant shall take such commercially reasonably prudent temporary measures and safeguards to prevent any injury, loss or damage to persons or property within the Premises.  Subject to the foregoing, in no event shall Landlord be liable for any loss, the risk of which is covered by Tenant’s insurance or is required to be so covered by this Lease; nor shall Landlord or its agents be liable for any such damage caused by other tenants

 

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or persons in the Building or caused by operations in construction of any private, public, or quasi-public work; nor shall Landlord be liable for any latent defect in the Premises or in the Building.  Nothing in this Section 15.4 shall abrogate Landlord’s continuing repair obligations set forth in Section 8.7 hereof.

 

15.5                        Repairs and Alterations—No Diminution of Rental Value.

 

(a)                                 Except as may be otherwise specifically provided in this Lease, there shall be no allowance to Tenant for diminution of rental value and no liability on the part of Landlord by reason of inconvenience, annoyance or injury to Tenant arising from any repairs, alterations, additions, replacements or improvements, or any related work made by Landlord, Tenant or others in or to any portion of the Building or Premises or any property adjoining the Building, or in or to fixtures, appurtenances, or equipment thereof, or for failure of Landlord or others to make any repairs, alterations, additions or improvements in or to any portion of the Building, or of the Premises, or in or to the fixtures, appurtenances or equipment thereof.

 

(b)                                 Notwithstanding anything to the contrary in this Lease contained, if due to any such repairs, alterations, replacements, or improvements made by Landlord or if due to Landlord’s failure to make any repairs, alterations, or improvements required to be made by Landlord, any portion of the Premises becomes untenantable so that for the Premises Untenantability Cure Period, as hereinafter defined, the continued operation in the ordinary course of Tenant’s business is materially adversely affected, then, provided that Tenant ceases to use the affected portion of the Premises during the entirety of the Premises Untenantability Cure Period by reason of such untenantability, and that such untenantability and Landlord’s inability to cure such condition is not caused by the fault or neglect of Tenant or Tenant’s agents, employees or contractors, Yearly Rent, Operating Expense Excess and Tax Excess shall thereafter be abated in proportion to such untenantability until the day such condition is completely corrected.  For the purposes hereof, the “Premises Untenantability Cure Period” shall be defined as three (3) consecutive business days after Landlord’s receipt of written notice from Tenant of the condition causing untenantability in the Premises, provided however, that the Premises Untenantability Cure Period shall be seven (7) consecutive business days after Landlord’s receipt of written notice from Tenant of such condition causing untenantability in the Premises if either the condition was caused by causes beyond Landlord’s control or Landlord is unable to cure such condition as the result of causes beyond Landlord’s control.

 

(c)                                  The provisions of subparagraph (b) of this Section 15.5 shall not apply in the event of untenantability caused by fire or other casualty, or taking (see Articles 18 and 20).  The remedies set forth in this Section 15.5 shall be Tenant’s sole remedies in the event of Landlord’s failure to make any repairs, alterations, or improvements required to be made by Landlord.

 

16.                               ASSIGNMENT, MORTGAGING AND SUBLETTING

 

(a)                                 Except as expressly provided in this Article 16, Tenant covenants and agrees that neither this Lease nor the Term and estate hereby granted, nor any interest herein or therein, will be assigned, mortgaged, pledged, hypothecated, encumbered or otherwise transferred, voluntarily, by operation of law or otherwise, and that neither the Premises, nor any

 

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part thereof will be encumbered in any manner by reason of any act or omission on the part of Tenant, or used or occupied, or permitted to be used or occupied, or utilized for desk space or for mailing privileges, by anyone other than Tenant, or for any use or purpose other than the Permitted Use, or be sublet, or offered or advertised for subletting without the prior written consent of Landlord, which consent shall be granted or withheld in accordance with this Article 16.  Notwithstanding the foregoing, it is hereby expressly understood and agreed however, if Tenant is a business entity, that the assignment or transfer of this Lease, and the Term and estate hereby granted, to any business entity into which Tenant is merged or reorganized, or with which Tenant is consolidated, or which purchases all or substantially all of the ownership interests or assets of Tenant, which business entity shall have a net worth at least equal to the greater of (x) that of Tenant immediately prior to such merger, reorganization, consolidation or purchase, or (y) that of Tenant on the Execution Date hereof (such business entity being hereinafter called “Permitted Assignee”), shall not be deemed to be prohibited hereby if, and upon the express conditions that (i) Tenant is not in default of its obligations hereunder on the date of such merger, reorganization, consolidation or purchase, (ii) Permitted Assignee owns or will own immediately after such merger, reorganization, consolidation or purchase all or substantially all of the assets of Tenant, and (iii) Permitted Assignee and Tenant shall promptly execute, acknowledge and deliver to Landlord an agreement (“Assumption Agreement”) in form and substance reasonably satisfactory to Landlord whereby Permitted Assignee shall agree to be independently bound by and upon all the covenants, agreements, terms, provisions and conditions set forth in this Lease on the part of Tenant to be performed, and whereby Permitted Assignee shall expressly agree that the provisions of this Article 16 shall, notwithstanding such assignment or transfer, continue to be binding upon it with respect to all future assignments and transfers.

 

(b)                                 Except for an assignment or sublease to a Permitted Assignee or to an Affiliated Entity, as defined in Article 16(c) below, and provided that in the case of a proposed sublease, the proposed sublease is for in excess of fifty percent (50%) of the Premises then demised to Tenant under the Lease and is for a term that is for substantially all or all of the then remaining Term of the Lease (a “Triggering Sublease”) then, notwithstanding anything to the contrary in this Lease contained:

 

(1)                                 Tenant shall, prior to offering or advertising the Premises, or any portion thereof, for sublease or assignment give Landlord a Recapture Offer, as hereinafter defined.

 

(2)                                 For the purposes hereof, a “Recapture Offer” shall be defined as a notice in writing from Tenant to Landlord which:

 

(i)                                     States that Tenant desires to sublet the Premises, or a portion thereof, or to assign its interest in this Lease.

 

(ii)                                  Identifies the affected portion of the Premises (“Recapture Premises”).

 

(iii)                               Identifies the period of time (“Recapture Period”) during which Tenant proposes to sublet the Recapture Premises or to assign its interest in this Lease.

 

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(iv)                              Offers to Landlord to terminate this Lease in respect of the Recapture Premises (in the case of a proposed assignment of Tenant’s interest in this Lease or a subletting for the remainder of the Term of this Lease) or to suspend the Term of this Lease pro tanto in respect of the Recapture Period (i.e., the Term of this Lease in respect of the Recapture Premises shall be terminated during the Recapture Period and Tenant’s rental obligations shall be reduced in proportion to the ratio of the Total Rentable Area of the Recapture Premises to the Total Rentable Area of the Premises then demised to Tenant).

 

(3)                                 Landlord shall have thirty (30) days to accept a Recapture Offer.  If Landlord does not timely give written notice to Tenant accepting a Recapture Offer or, if Tenant desires to enter into a sublease that is not a Triggering Sublease, then Landlord agrees that it will not unreasonably withhold or delay its consent to a sublease of the Recapture Premises for the Recapture Period, or an assignment of Tenant’s interest in this Lease, as the case may be, to a Qualified Transferee, as hereinafter defined.

 

(4)                                 For the purposes hereof, a “Qualified Transferee” shall be defined as a person, firm or corporation which, in Landlord’s reasonable opinion:

 

(i)                                     is financially responsible and of good reputation;

 

(ii)                                  is engaged in a business, the functional aspects of which, with respect to the Premises, are similar to the use of other premises made by other office space tenants in the Building; and

 

(iii)                               is not a Restricted Occupant, as hereinafter defined.

 

(5)                                 For the purposes hereof, a “Restricted Occupant” shall be defined as any tenant or subtenant of premises in the Building (“Occupant”) unless such Occupant satisfies all three of the following criteria:

 

(i)                                     Such Occupant desires to occupy the Recapture Premises for expansion purposes only; and

 

(ii)                                  Such Occupant’s occupancy of the Recapture Premises will not, either directly or indirectly, cause a vacancy in the premises which such Occupant then occupies in the Building; and

 

(iii)                               Such Occupant’s need, as to the size of premises and length of term, cannot then (i.e., at the time that Tenant requests Landlord’s consent to such Occupant) be satisfied by Landlord.

 

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(6)                                 Notwithstanding anything to the contrary in this Article 16(b) contained:

 

(i)                                     If Tenant is in default of its obligations under this Lease at the time that it makes the aforesaid offer to Landlord, such default shall be deemed to be a “reasonable” reason for Landlord withholding its consent to any proposed subletting or assignment; and

 

(ii)                                  If Tenant does not enter into a sublease with a subtenant (or an assignment to an assignee, as the case may be) approved by Landlord, as aforesaid, on or before the date which is one hundred eighty (180) days after the earlier of: (x) the expiration of said thirty (30) day period, or (y) the date that Landlord notifies Tenant that Landlord will not accept Tenant’s offer to terminate or suspend this Lease, then Landlord shall have the right arbitrarily to withhold its consent to any subletting or assignment proposed to be entered into by Tenant after the expiration of said one hundred eighty (180) day period unless Tenant again offers, in accordance with this Article 16(b), either to terminate or to suspend this Lease in respect of the portion of the Premises proposed to be sublet (or in respect of the entirety of the Premises in the event of a proposed assignment, as the case may be).  If Tenant shall make any subsequent offers to terminate or suspend this Lease pursuant to this Article 16(b), any such subsequent offers shall be treated in all respects as if it is Tenant’s first offer to suspend or terminate this Lease pursuant to this Article 16(b), provided that the period of time Landlord shall have in which to accept or reject such subsequent offer shall be thirty (30) days.

 

(7)                                 Notwithstanding anything to the contrary herein contained, Tenant shall have no right, under this Article 16(b) hereof, prior to the date one (1) year after the Commencement Date.  Without limiting the foregoing, Tenant shall have no right to give Landlord a Recapture Offer prior to the date one (1) year after the Commencement Date.

 

(8)                                 No subletting or assignment shall relieve Tenant of its primary obligation as party-Tenant hereunder, nor shall it reduce or increase Landlord’s obligations under this Lease.

 

(c)                                  Notwithstanding anything to the contrary herein contained, Tenant shall have the right, without obtaining Landlord’s consent and without giving Landlord a Recapture Offer, to assign its interest in this Lease or to sublease the Premises, or any portion thereof, to an Affiliated Entity, as hereinafter defined, so long as such entity remains in such relationship to Tenant, and provided that prior to or simultaneously with such assignment or sublease, such Affiliated Entity executes and delivers to Landlord an Assumption Agreement, as hereinabove

 

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defined.  For the purposes hereof, an “Affiliated Entity” shall be defined as any entity which is controlled by, is under common control with, or which controls Tenant.  For the purposes hereof, control shall mean the direct or indirect ownership of more than fifty (50%) percent of the beneficial interest of the entity in question.

 

(d)                                 If this Lease be assigned, or if the Premises or any part thereof be sublet or occupied by anybody other than Tenant, Landlord may, at any time and from time to time, collect rent and other charges from the assignee, subtenant or occupant, and apply the net amount collected to the rent and other charges herein reserved then due and thereafter becoming due, but no such assignment, subletting, occupancy or collection shall be deemed a waiver of this covenant, or the acceptance of the assignee, subtenant or occupant as a tenant, or a release of Tenant from the further performance by Tenant of covenants on the part of Tenant herein contained.  Any consent by Landlord to a particular assignment or subletting shall not in any way diminish the prohibition stated in the first sentence of this Article 16 or the continuing liability of Tenant named on Exhibit 1 as the party Tenant under this Lease.  No assignment or subletting shall affect the purpose for which the Premises may be used as stated in Exhibit 1.

 

(e)                                  In the event of an assignment of this Lease or a sublease of the Premises or any portion thereof to anyone other than a Permitted Assignee or Affiliated Entity, Tenant shall pay to Landlord fifty percent (50%) of any Net Transfer Profit (as defined below), payable in accordance with the following.  In the case of an assignment of this Lease, “Net Transfer Profit”: (1) shall be defined as a lump sum in the amount (if any) by which any consideration paid by the assignee in consideration of or as an inducement to Tenant to make said assignment exceeds the reasonable attorneys’ fees, construction costs and brokerage fees incurred by Tenant in order to effect such assignment (collectively, “Transfer Expenses”), and (2) shall be payable concurrently with the payment to be made by the assignee to Tenant.  In the case of a sublease, “Net Transfer Profit”:  (3) shall be defined as a monthly amount equal to the amount by which the sublease rent and other charges payable by the subtenant to Tenant under the sublease exceed the sum of the rent and other charges payable under this Lease for the Premises or allocable to the sublet portion thereof, once Tenant has recouped the Transfer Expenses applicable to such sublease from such excess, and (4) shall be payable on a monthly basis concurrently with the subtenant’s payment of rent to Tenant under the sublease.

 

(f)                                   The listing of any name other than that of Tenant, whether on the doors of the Premises or on the Building directory, or otherwise, shall not operate to vest in any such other person, firm or corporation any right or interest in this Lease or in the Premises or be deemed to effect or evidence any consent of Landlord, it being expressly understood that any such listing is a privilege extended by Landlord revocable at will by written notice to Tenant.

 

(g)                                  Tenant shall pay Landlord a review fee of $1,000.00 for Landlord’s review of any requests by Tenant to sublet the Premises or assign its interest in this Lease, provided that if Landlord’s actual reasonable costs and expenses therefor (including reasonable attorneys’ fees) exceed $1,000.00, Tenant shall reimburse Landlord for its actual reasonable costs and expenses in lieu of a fixed review fee.  Such fee or costs shall be deemed to be additional rent under this Lease.

 

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17.                               MISCELLANEOUS COVENANTS

 

Tenant covenants and agrees as follows:

 

17.1                        Rules and Regulations.  Tenant will faithfully observe and comply with the Rules and Regulations annexed hereto as Exhibit 4 and such other and further reasonable Rules and Regulations as Landlord hereafter at any time or from time to time may make and may communicate in writing to Tenant, which in the reasonable judgment of Landlord shall be necessary for the reputation, safety, care or appearance of the Building, or the preservation of good order therein, or the operation or maintenance of the Building, or the equipment thereof, or the comfort of tenants or others in the Building, provided, however, that in the case of any conflict between the provisions of this Lease and any such regulations, the provisions of this Lease shall control, and provided further that nothing contained in this Lease shall be construed to impose upon Landlord any duty or obligation to enforce the Rules and Regulations or the terms, covenants or conditions in any other lease as against any other tenant and Landlord shall not be liable to Tenant for violation of the same by any other tenant, its servants, employees, agents, contractors, visitors, invitees or licensees.  Notwithstanding anything to the contrary in this Lease contained, Landlord agrees that it will not enforce said Rules and Regulations against Tenant in a discriminatory or arbitrary manner.

 

17.2                        Access to Premises.  Tenant shall: (i) permit Landlord to erect, use and maintain pipes, ducts and conduits in and through the Premises, provided the same do not reduce the floor area to more than a de minimus extent, or materially adversely affect the appearance thereof; (ii) upon prior oral/email notice (except that no notice shall be required in emergency situations), permit Landlord and any mortgagee of the Building or the Building and land or of the interest of Landlord therein, and any lessor under any underlying lease, and their representatives, to have free and unrestricted access to and, subject to Section 2.3 hereof, to enter upon the Premises at all reasonable hours for the purposes of inspection or of making repairs, replacements or improvements in or to the Premises or the Building or equipment (including, without limitation, sanitary, electrical, heating, air conditioning or other systems) or of complying with all laws, orders and requirements of governmental or other authority or of exercising any right reserved to Landlord by this Lease (including the right during the progress of any such repairs, replacements or improvements or while performing work and furnishing materials in connection with compliance with any such laws, orders or requirements to take upon or through, or to keep and store within, the Premises all necessary materials, tools and equipment); and (iii) permit Landlord, at reasonable times, to show the Premises during ordinary Business Hours to any existing or prospective mortgagee, purchaser, or assignee of any mortgage of the Building or of the Building and the land or of the interest of Landlord therein, and during the period of twelve (12) months next preceding the Expiration Date to any person contemplating the leasing of the Premises or any part thereof.  If Tenant shall not be personally present to open and permit an entry into the Premises at any time when for any reason an entry therein shall be necessary or permissible, upon not less than two (2) business days’ written notice, except that no notice shall be required in an emergency, Landlord or Landlord’s agents may enter the same by a master key, or may forcibly enter the same, without rendering Landlord or such agents liable therefor (if during such entry Landlord or Landlord’s agents shall accord reasonable care to Tenant’s property), and without in any manner affecting the obligations and covenants of this Lease.  Provided that Landlord shall incur no material additional expense thereby, Landlord shall

 

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exercise its rights of access to the Premises permitted under any of the terms and provisions of this Lease in such manner as to minimize to the extent practicable interference with Tenant’s use and occupation of the Premises.

 

17.3                        Accidents to Sanitary and Other Systems.  Tenant shall give to Landlord prompt notice of any fire or accident in the Premises or in the Building and of any damage to, or defective condition in, any part or appurtenance of the Building including, without limitation, sanitary, electrical, ventilation, heating and air conditioning or other systems located in, or passing through, the Premises of which Tenant has actual knowledge.  Except as otherwise provided in Articles 18 and 20, and subject to Tenant’s obligations in Article 14, such damage or defective condition shall be remedied by Landlord with reasonable diligence, but if such damage or defective condition was caused by Tenant or by the employees, licensees, contractors or invitees of Tenant, the cost to remedy the same shall be paid by Tenant.  In addition, all reasonable costs incurred by Landlord in connection with the investigation of any notice given by Tenant shall be paid by Tenant if the reported damage or defective condition was caused by Tenant or by the employees, licensees, contractors, or invitees of Tenant.  Tenant shall not be entitled to claim any eviction from the Premises or any damages arising from any such damage or defect unless the same (i) shall have been occasioned by the negligence of Landlord, its agents, servants or employees and (ii) shall not, after notice to Landlord of the condition claimed to constitute negligence, have been cured or corrected within a reasonable time after such notice has been received by Landlord; and in case of a claim of eviction unless such damage or defective condition shall have rendered the Premises untenantable and they shall not have been made tenantable by Landlord within a reasonable time.

 

17.4                        Signs, Blinds and Drapes.  Tenant shall put no signs in any part of the Building.  No signs or blinds may be put on or in any window or elsewhere if visible from the exterior of the Building, nor may the building standard drapes or blinds be removed by Tenant.  Notwithstanding the foregoing, Tenant shall have the right, during the Term of this Lease, to list Tenant’s name on the Building directory in the lobby of the Building and on the fourth (4th) floor lobby directory.  The initial listing of Tenant’s name shall be at Landlord’s cost and expense.  Any changes, replacements or additions by Tenant to such directory shall be at Tenant’s sole cost and expense.  Landlord shall, at Landlord’s cost and expense, install a Building standard tenant identification sign on Tenant’s entrance door to the Premises listing the name of Tenant.  Tenant may hang its own drapes, provided that they shall not in any way interfere with the building standard drapery or blinds or be visible from the exterior of the Building and that such drapes are so hung and installed that when drawn, the building standard drapery or blinds are automatically also drawn.  Any signs or lettering in the public corridors or on the doors shall conform to Landlord’s building standard design.  Neither Landlord’s name, nor the name of the Building or the name of any other structure erected or used in conjunction therewith shall be used without Landlord’s consent in any advertising material (except on business stationery or as an address in advertising matter), nor shall any such name, as aforesaid, be used in any undignified, confusing, detrimental or misleading manner.

 

17.5                        Estoppel Certificate.  Each of Landlord and Tenant shall at any time and from time to time upon not less than ten (10) business days’ prior notice from the other party (the “Requesting Party”), execute, acknowledge and deliver to the Requesting Party a statement in writing certifying that this Lease is unmodified and in full force and effect (or if there have been

 

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modifications, that the same is in full force and effect as modified and stating the modifications), and the dates to which the Yearly Rent and other charges have been paid in advance, if any, stating whether or not the Requesting Party is in default in performance of any covenant, agreement, term, provision or condition contained in this Lease and, if so, specifying each such default and such other facts as the Requesting Party may reasonably request, it being intended that any such statement delivered pursuant hereto may be relied upon by any prospective purchaser of the Building or of the Building and the land or of any interest of Landlord therein or of any interest in Tenant, any mortgagee or prospective mortgagee thereof, any lessor or prospective lessor thereof, any lessee or prospective lessee thereof, or any prospective assignee of any mortgage thereof.  Time is of the essence in respect of any such requested certificate, each party hereby acknowledging the importance of such certificates in mortgage financing arrangements, prospective sale and the like.  If either of Landlord or Tenant fails to so execute and deliver such estoppel certificate within such ten (10) day period, then the requesting party shall be entitled to send the other party a second notice requesting such execution and delivery of such estoppel certificate (“Second Notice”), and if the other party fails to execute and deliver such estoppel certificate within three (3) days after the Second Notice, then such failure shall be deemed to be a default of the other party’s obligations under the Lease.  The provisions of Section 26(d) shall not apply to any default pursuant to this Section 17.5.

 

17.6                        Prohibited Materials and Property.  Tenant shall not bring or permit to be brought or kept in or on the Premises and shall not bring elsewhere in the Building (i) any inflammable, combustible or explosive fluid, material , chemical or substance including, without limitation, any hazardous substances (collectively, “Hazardous Materials”) as defined under applicable state or local law, under the Federal Comprehensive Environmental Response Compensation and Liability Act (CERCLA), 42 USC §9601 et seq., as amended, under Section 3001 of the Federal Resource Conservation and Recovery Act of 1976, as amended, or under any regulation of any governmental authority regulating environmental or health matters (except for standard office and cleaning supplies used, stored, and disposed of in accordance with applicable law), (ii) any materials, appliances or equipment (including, without limitation, materials, appliances and equipment selected by Tenant for the construction or other preparation of the Premises and furniture and carpeting) which pose any danger to life, safety or health or may cause damage, injury or death; (iii) any unique, unusually valuable, rare or exotic property, work of art or the like unless the same is fully insured under the insurance set forth in Exhibit 3, or (iv) any data processing, electronic, optical or other equipment or property of a delicate, fragile or vulnerable nature unless the same are housed, shielded and protected against harm and damage, whether by cleaning or maintenance personnel, radiations or emanations from other equipment now or hereafter installed in the Building, or otherwise.  Tenant shall not cause or permit any potentially harmful air emissions, odors of cooking or other processes, or any unusual or other objectionable odors or emissions to emanate from or permeate the Premises.

 

17.7                        Requirements of Law—Fines and Penalties.  Tenant at its sole expense shall comply with all laws, rules, orders and regulations, including, without limitation, all energy-related requirements, of Federal, State, County and Municipal Authorities and with any direction of any public officer or officers, pursuant to law, which shall impose any duty upon Landlord or Tenant with respect to or arising out of Tenant’s particular use (as opposed to office use, generically) of the Premises.  Tenant shall reimburse and compensate Landlord for all expenditures made by, or damages or fines sustained or incurred by, Landlord due to

 

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nonperformance or noncompliance with or breach or failure to observe any item, covenant, or condition of this Lease upon Tenant’s part to be kept, observed, performed or complied with.  If Tenant receives notice of any violation of law, ordinance, order or regulation applicable to the Premises, it shall give prompt notice thereof to Landlord.

 

17.8                        Tenant’s Acts—Effect on Insurance.  Tenant shall not do or permit to be done any act or thing upon the Premises and shall not do any act or thing elsewhere in the Building which will invalidate or be in conflict with any insurance policies covering the Building and the fixtures and property therein; and shall not do, or permit to be done, any act or thing upon the Premises which shall subject Landlord to any liability or responsibility for injury to any person or persons or to property by reason of any business or operation being carried on upon said Premises or for any other reason.  Tenant at its own expense shall comply with all rules, orders, regulations and requirements of the Board of Fire Underwriters, or any other similar body having jurisdiction, and shall not (i) do, or permit anything to be done, in or upon the Premises, or bring or keep anything therein, except as now or hereafter permitted by the Fire Department, Board of Underwriters, Fire Insurance Rating Organization, or other authority having jurisdiction, and then only in such quantity and manner of storage as will not increase the rate for any insurance applicable to the Building, or (ii) use the Premises in a manner which shall increase such insurance rates on the Building, or on property located therein, over that applicable when Tenant first took occupancy of the Premises hereunder.  If by reason of the failure of Tenant to comply with the provisions hereof the insurance rate applicable to any policy of insurance shall at any time thereafter be higher than it otherwise would be, Tenant shall reimburse Landlord for that part of any insurance premiums thereafter paid by Landlord, which shall have been charged because of such failure by Tenant.

 

17.9                        Miscellaneous.  Tenant shall not suffer or permit the Premises or any fixtures, equipment or utilities therein or exclusively serving the same, to be overloaded, damaged or defaced, nor permit any hole to be drilled or made in any part thereof.  Tenant shall not suffer or permit any employee, contractor, business invitee or visitor to violate any covenant, agreement or obligations of Tenant under this Lease.

 

18.                               DAMAGE BY FIRE, ETC.

 

(a)                                 During the entire Term of this Lease, and adjusting insurance coverages to reflect current values from time to time:—(i) Landlord shall keep the Building (excluding Alterations installed in the Premises after the Commencement Date (“Later Alterations”) and any personal property or trade fixtures installed by or at the expense of Tenant) insured in accordance with Exhibit 3; and (ii) Tenant shall keep its personal property and trade fixtures in and about the Premises and the Later Alterations insured in accordance with Exhibit 3.

 

(b)                                 If any portion of the Premises required to be insured by Landlord under the preceding paragraph shall be damaged by fire or other insured casualty, or the use thereof or access thereto shall be legally prohibited (or prohibited by Landlord) due to fire or other insured casualty (regardless of whether or not such fire or other insured casualty actually damages the Premises), Landlord shall proceed with diligence, subject to the then applicable statutes, building codes, zoning ordinances, and regulations of any governmental authority, and at the expense of Landlord (but only to the extent of insurance proceeds made available to Landlord by any

 

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mortgagee of the real property of which the Premises are a part) to repair or cause to be repaired such damage, provided, however, in respect of any Later Alterations as shall have been damaged by such fire or other casualty and which (in the judgment of Landlord) can more effectively be repaired as an integral part of Landlord’s repair work on the Premises, that such repairs to such Later Alterations shall be performed by Landlord but at Tenant’s expense; in all other respects, all repairs to and replacements of Tenant’s property and Later Alterations shall be made by and at the expense of Tenant.  If the Premises or any part thereof shall have been rendered unfit for use and occupation hereunder by reason of such damage, the Yearly Rent (together with Operating Costs Excess and Tax Excess) or a just and proportionate part thereof, according to the nature and extent to which the Premises shall have been so rendered unfit, shall be suspended or abated until the Premises (except as to the property which is to be repaired by or at the expense of Tenant), or legal access thereto or use thereof as aforesaid, shall have been restored as nearly as practicably may be to the condition in which they were immediately prior to such fire or other casualty, provided, however, that if Landlord or any mortgagee of the Building or of the Building and the land or Landlord’s interest therein shall be unable to collect the insurance proceeds (including rent insurance proceeds) applicable to such damage or associated business interruption because of some action or inaction on the part of Tenant, or the employees, licensees or invitees of Tenant, there shall be no abatement of rent.  Landlord shall not be liable for delays in the making of any such repairs which are due to government regulation, casualties and strikes, unavailability of labor and materials, and other causes beyond the reasonable control of Landlord, nor shall Landlord be liable for any inconvenience or annoyance to Tenant or injury to the business of Tenant resulting from delays in repairing such damage.  If (i) the Premises (or legal access thereto or use thereof) are so damaged or prevented by fire or other casualty (whether or not insured) at any time during the last thirty months of the Term hereof that the cost to repair such damage is reasonably estimated to exceed one third of the total Yearly Rent payable hereunder for the period from the estimated date of restoration until the Expiration Date, or (ii) the Building (whether or not including any portion of the Premises) is so damaged by fire or other casualty (whether or not insured) that substantial alteration or reconstruction or demolition of the Building shall in Landlord’s judgment be required, then and in either of such events, this Lease and the Term hereof may be terminated at the election of Landlord by a notice in writing of its election so to terminate which shall be given by Landlord to Tenant within sixty (60) days following such fire or other casualty, the effective termination date of which shall be not less than thirty (30) days after the day on which such termination notice is received by Tenant.  In the event of any termination, this Lease and the Term hereof shall expire as of such effective termination date as though that were the Expiration Date as stated in Exhibit 1 and the Yearly Rent shall be apportioned as of such date; and if the Premises or any part thereof shall have been rendered unfit for use and occupation by reason of such damage the Yearly Rent (together with Operating Costs Excess and Tax Excess) for the period from the date of the fire or other casualty to the effective termination date, or a just and proportionate part thereof, according to the nature and extent to which the Premises shall have been so rendered unfit, shall be abated.

 

(c)                                  If any portion of the Premises or any portion of the Building shall be damaged or destroyed by fire or other casualty to the extent that the operation of Tenant’s business in the Premises in the normal course is materially adversely affected, then, within forty-five (45) days of such fire or other casualty, Landlord shall submit to Tenant a reasonable engineering estimate as to the estimated length of time to complete such repairs.  If the time period (“Estimated Restoration Period”) set forth in such estimate shall exceed one hundred

 

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eighty (180) days of the date of such casualty, Tenant may elect, by a notice sent within fifteen (15) days after notice of such estimate is sent to Tenant, to terminate this Lease.  If such estimate shall fall within the 180-day limit, Tenant shall have no such right to terminate and Landlord shall, subject to the provisions of this Article 18, proceed to complete the repairs or restoration, subject always to delays for causes beyond Landlord’s reasonable control including, but not limited to the causes specified in Article 26 hereof, and the other limitations set forth in this Article 18.

 

19.                               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 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, and in the case of Tenant, against 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 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.  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.

 

20.                               CONDEMNATION - EMINENT DOMAIN

 

In the event that the Premises or any part thereof, or the whole or any material part of the Building, shall be taken or appropriated by eminent domain or shall be condemned for any public or quasi-public use, or (by virtue of any such taking, appropriation or condemnation) shall suffer any damage (direct, indirect or consequential) for which Landlord or Tenant shall be entitled to compensation, then (and in any such event) this Lease and the Term hereof may be terminated at the election of Landlord by a notice in writing of its election so to terminate which shall be given by Landlord to Tenant within sixty (60) days following the date on which Landlord shall have received notice of such taking, appropriation or condemnation.  In the event that a material part of the Premises or the means of access thereto shall be so taken, appropriated or condemned, then (and in any such event) this Lease and the Term hereof may be terminated at the election of Tenant by a notice in writing of its election so to terminate which shall be given by Tenant to Landlord within sixty (60) days following the date on which Tenant shall have received notice of such taking, appropriation or condemnation.

 

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Upon the giving of any such notice of termination (either by Landlord or Tenant) this Lease and the Term hereof shall terminate on or retroactively as of the date on which Tenant shall be required to vacate any part of the Premises or shall be deprived of a substantial part of the means of access thereto, provided, however, that Landlord may in Landlord’s notice elect to terminate this Lease and the Term hereof retroactively as of the date on which such taking, appropriation or condemnation became legally effective.  In the event of any such termination, this Lease and the Term hereof shall expire as of such effective termination date as though that were the Expiration Date as stated in Exhibit 1, and the Yearly Rent (together with Operating Costs Excess and Tax Excess) shall be apportioned as of such date.  If neither party (having the right so to do) elects to terminate Landlord will, with reasonable diligence and at Landlord’s expense, restore the remainder of the Premises, or the remainder of the means of access, as nearly as practicably may be to the same condition as obtained prior to such taking, appropriation or condemnation in which event (i) the Total Rentable Area shall be equitably adjusted, (ii) a just proportion of the Yearly Rent, according to the nature and extent of the taking, appropriation or condemnation and the resulting permanent injury to the Premises and the means of access thereto, shall be permanently abated, and (iii) a just proportion of the remainder of the Yearly Rent, according to the nature and extent of the taking, appropriation or condemnation and the resultant injury sustained by the Premises and the means of access thereto, shall be abated until what remains of the Premises and the means of access thereto shall have been restored as fully as may be for permanent use and occupation by Tenant hereunder.  Except for any award specifically reimbursing Tenant for moving or relocation expenses, there are expressly reserved to Landlord all rights to compensation and damages created, accrued or accruing by reason of any such taking, appropriation or condemnation, in implementation and in confirmation of which Tenant does hereby acknowledge that Landlord shall be entitled to receive all such compensation and damages, grant to Landlord all and whatever rights (if any) Tenant may have to such compensation and damages, and agree to execute and deliver all and whatever further instruments of assignment as Landlord may from time to time request.  In the event of any taking of the Premises or any part thereof for temporary (i.e., not in excess of one (1) year) use, (i) this Lease shall be and remain unaffected thereby, and (ii) Tenant shall be entitled to receive for itself any award made to the extent allocable to the Premises in respect of such taking on account of such use, provided, that if any taking is for a period extending beyond the Term of this Lease, such award shall be apportioned between Landlord and Tenant as of the Expiration Date or earlier termination of this Lease.

 

21.                               DEFAULT

 

21.1                        Conditions of Limitation - Re-entry - Termination.  This Lease and the herein Term and estate are, upon the condition that if (a) subject to Section 21.2, Tenant shall neglect or fail to perform or observe any of Tenant’s covenants or agreements herein, including (without limitation) the covenants or agreements with regard to the payment when due of rent, additional charges, reimbursement for increase in Landlord’s costs, or any other charge payable by Tenant to Landlord when due (all of which shall be considered as part of Yearly Rent for the purposes of invoking Landlord’s statutory or other rights and remedies in respect of payment defaults); or (b) intentionally omitted; or (c) Tenant shall be involved in financial difficulties as evidenced by an admission in writing by Tenant of Tenant’s inability to pay its debts generally as they become due, or by the making or offering to make a composition of its debts with its creditors; or (d) Tenant shall make an assignment or trust mortgage, or other conveyance or transfer of like

 

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nature, of all or a substantial part of its property for the benefit of its creditors, or (e) an attachment or other legal process shall issue against Tenant or its property and a sale of any of its assets shall be held thereunder; or (f) any judgment, final beyond appeal or any lien, attachment or the like shall be entered, recorded or filed against Tenant in any court, registry, etc.  and Tenant shall fail to pay such judgment within sixty (60) days after the judgment shall have become final beyond appeal or to discharge or secure by surety bond such lien, attachment, etc.  within sixty (60) days of such entry, recording or filing, as the case may be; or (g) the leasehold hereby created shall be taken on execution or by other process of law and shall not be revested in Tenant within sixty (60) days thereafter; or (h) a receiver, sequesterer, trustee or similar officer shall be appointed by a court of competent jurisdiction to take charge of all or any part of Tenant’s property and such appointment shall not be vacated within sixty (60) days; or (i) any proceeding shall be instituted by or against Tenant pursuant to any of the provisions of any Act of Congress or State law relating to bankruptcy, reorganizations, arrangements, compositions or other relief from creditors, and, in the case of any proceeding instituted against it, if Tenant shall fail to have such proceedings dismissed within sixty (60) days or if Tenant is adjudged bankrupt or insolvent as a result of any such proceeding, or (j) any event shall occur or any contingency shall arise whereby this Lease, or the Term and estate thereby created, would (by operation of law or otherwise) devolve upon or pass to any person, firm or corporation other than Tenant, except as expressly permitted under Article 16 hereof - then, and in any such event (except as hereinafter in Section 21.2 otherwise provided) Landlord may, by notice to Tenant, elect to terminate this Lease; and thereupon (and without prejudice to any remedies which might otherwise be available for arrears of rent or other charges due hereunder or preceding breach of covenant or agreement and without prejudice to Tenant’s liability for damages as hereinafter stated), upon the giving of such notice, this Lease shall terminate as of the date specified therein as though that were the Expiration Date as stated in Exhibit 1.  Without being taken or deemed to be guilty of any manner of trespass or conversion, and without being liable to indictment, prosecution or damages therefor, Landlord may, in any manner permitted by law, enter into and upon the Premises (or any part thereof in the name of the whole); repossess the same as of its former estate; and expel Tenant and those claiming under Tenant.  The words “re-entry” and “re-enter” as used in this Lease are not restricted to their technical legal meanings.

 

21.2                        Grace Period.  Notwithstanding anything to the contrary in this Article contained, Landlord agrees not to take any action to terminate this Lease (a) for default by Tenant in the payment when due of any sum of money, if Tenant shall cure such default within five (5) days after written notice thereof is given by Landlord to Tenant, provided, however, that no such notice need be given and no such default in the payment of money shall be curable if on two (2) prior occasions in any twelve (12) month period there had been a default in the payment of money which had been cured after notice thereof had been given by Landlord to Tenant as herein provided or (b) for default by Tenant in the performance of any covenant other than a covenant to pay a sum of money, if Tenant shall cure such default within a period of thirty (30) days after written notice thereof given by Landlord to Tenant (except where the nature of the default is such that remedial action should appropriately take place sooner, as indicated in such written notice), or within such additional period as may reasonably be required to cure such default if (because of governmental restrictions or any other cause beyond the reasonable control of Tenant) the default is of such a nature that it cannot be cured within such thirty-(30)-day period, provided, however, (1) that there shall be no extension of time beyond such thirty-(30)-day period for the curing of any such default unless, not more than ten (10) days after the receipt of the notice of default,

 

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Tenant in writing (i) shall specify the cause on account of which the default cannot be cured during such period and shall advise Landlord of its intention duly to institute all steps necessary to cure the default and (ii) shall, as soon as reasonably practicable, duly institute and thereafter diligently prosecute to completion all steps necessary to cure such default and, (2) that no notice of the opportunity to cure a default need be given, and no grace period whatsoever shall be allowed to Tenant, if the default is incurable or if the covenant or condition the breach of which gave rise to default had, by reason of a breach on a prior occasion, been the subject of a notice hereunder to cure such default.

 

Notwithstanding anything to the contrary in this Section 21.2 contained, except to the extent prohibited by applicable law, any statutory notice and grace periods provided to Tenant by law are hereby expressly waived by Tenant.

 

21.3                        Damages - Termination.  Upon the termination of this Lease under the provisions of this Article 21, Tenant shall pay to Landlord the rent and other charges payable by Tenant to Landlord up to the time of such termination, shall continue to be liable for any preceding breach of covenant, and in addition, shall pay to Landlord as damages, at the election of Landlord

 

either:

 

(x)                                 the amount (the “Excess Amount”) by which, at the time of the termination of this Lease (or at any time thereafter if Landlord shall have initially elected damages under subparagraph (y), below), (i) the aggregate of the rent and other charges projected over the period commencing with such termination and ending on the Expiration Date as stated in Exhibit 1 exceeds (ii) the aggregate projected rental value of the Premises for such period, as such Excess Amount is reduced to present value using a discount rate of the then-applicable federal discount rate;

 

or:

 

(y)                                 amounts equal to the rent and other charges which would have been payable by Tenant had this Lease not been so terminated, payable upon the due dates therefor specified herein following such termination and until the Expiration Date as specified in Exhibit 1, provided, however, if Landlord shall re-let the Premises during such period, that Landlord shall credit Tenant with the net rents received by Landlord from such re-letting, such net rents to be determined by first deducting from the gross rents as and when received by Landlord from such re-letting the expenses incurred or paid by Landlord in terminating this Lease, as well as the expenses of re-letting, including altering and preparing the Premises for new tenants, brokers’ commissions, and all other similar and dissimilar expenses properly chargeable against the Premises and the rental therefrom, it being understood that any such re-letting may be for a period equal to or shorter or longer than the remaining Term of this Lease; and provided, further, that (i) in no event shall Tenant be entitled to receive any excess of such net rents over the sums payable by Tenant to Landlord hereunder and (ii) in no event shall Tenant be entitled in any suit for the collection of damages pursuant to this Subparagraph (y) to a credit in respect of any net rents from a re-letting except to the extent that such net rents are actually received by Landlord.  If the Premises or any part thereof should be re-let in combination with other space, then proper

 

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apportionment on a square foot area basis shall be made of the rent received from such re-letting and of the expenses of re-letting.

 

In calculating the rent and other charges under Subparagraph (x), above, there shall be included, in addition to the Yearly Rent, Tax Excess and Operating Costs Excess, all other considerations agreed to be paid or performed by Tenant, on the assumption that all such amounts and considerations would have remained constant (except as herein otherwise provided) for the balance of the full Term hereby granted.

 

Suit or suits for the recovery of such damages, or any installments thereof, may be brought by Landlord from time to time at its election, and nothing contained herein shall be deemed to require Landlord to postpone suit until the date when the Term of this Lease would have expired if it had not been terminated hereunder.

 

Nothing herein contained shall be construed as limiting or precluding the recovery by Landlord against Tenant of any sums or damages to which, in addition to the damages particularly provided above, Landlord may lawfully be entitled by reason of any default hereunder on the part of Tenant.

 

21.4                        Fees and Expenses.

 

(a)                                 If Tenant shall default in the performance of any covenant on Tenant’s part to be performed as in this Lease contained, beyond any applicable notice and grace period except in the case of emergency, Landlord may immediately, or at any time thereafter, without notice, perform the same for the account of Tenant.  If Landlord at any time is compelled to pay or elects to pay any sum of money, or do any act which will require the payment of any sum of money, by reason of the failure of Tenant to comply with any provision hereof, beyond any applicable notice and grace period except in the case of emergency, or if Landlord is compelled to or does incur any expense, including reasonable attorneys’ fees, in instituting, prosecuting, and/or defending any action or proceeding instituted by reason of any default of Tenant hereunder, Tenant shall on demand pay to Landlord by way of reimbursement the sum or sums so paid by Landlord with all costs and damages, plus interest computed as provided in Article 6 hereof.

 

(b)                                 Each party shall pay the other party’s cost and expense, including reasonable attorneys’ fees, incurred (i) in enforcing any obligation under this Lease or (ii) as a result of either party without its fault, being made party to any litigation pending by or against the other party or any persons claiming through or under the other party.  In the event of any litigation between the parties, the losing party shall, upon demand, reimburse the prevailing party for its reasonable attorneys’ fees and court costs.

 

21.5                        Waiver of Redemption.  Tenant does hereby waive and surrender all rights and privileges which it might have under or by reason of any present or future law to redeem the Premises or to have a continuance of this Lease for the Term hereby demised after being dispossessed or ejected therefrom by process of law or under the terms of this Lease or after the termination of this Lease as herein provided.

 

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21.6                        Landlord’s Remedies Not Exclusive.  The specified remedies to which Landlord may resort hereunder are cumulative and are not intended to be exclusive of any remedies or means of redress to which Landlord may at any time be lawfully entitled, 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.

 

22.                               END OF TERM - ABANDONED PROPERTY

 

Upon the expiration or other termination of the Term of this Lease, Tenant shall peaceably quit and surrender to Landlord the Premises and all alterations and additions thereto, broom clean, in good order, repair and condition (except as provided herein and in Section 8.7 and Articles 18 and 20) excepting only ordinary wear and use and damage by fire or other casualty for which, under other provisions of this Lease, Tenant has no responsibility of repair or restoration.  Tenant shall remove all of its property, including, without limitation, all telecommunication, computer and other cabling installed by or for Tenant in the Premises or elsewhere in the Building, and, to the extent specified by Landlord, all alterations and additions made by Tenant and all partitions wholly within the Premises, and shall repair any damages to the Premises or the Building caused by their installation or by such removal.  Tenant’s obligation to observe or perform this covenant shall survive the expiration or other termination of the Term of this Lease.

 

Tenant will remove any personal property from the Building and the Premises upon or prior to the expiration or termination of this Lease and any such property which shall remain in the Building or the Premises thereafter shall be conclusively deemed to have been 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 and retain 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 Yearly Rent, additional or other charges payable hereunder by Tenant to Landlord and any damages to which Landlord may be entitled under Article 21 hereof or pursuant to law.

 

Any holding over by Tenant or anyone claiming under Tenant after the expiration of the Term of this Lease shall be treated as a tenancy at sufferance and shall be on the terms and conditions as set forth in this Lease, as far as applicable except that Tenant shall pay as a use and occupancy charge an amount equal to the greater of (x) one hundred fifty percent (150%) for the first sixty (60) days of such holding over and two hundred percent (200%) thereafter of the Yearly Rent and Tax Excess and Operating Costs Excess calculated (on a daily basis) at the highest rate payable under the terms of this Lease, or (y) one hundred twenty-five percent (125%) of the fair market rental value of the Premises, in each case for the period measured from the day on which Tenant’s hold-over commences and terminating on the day on which Tenant vacates the Premises.  In addition, Tenant shall save Landlord, its agents and employees, harmless and will exonerate, defend and indemnify Landlord, its agents and employees, from and against any and all damages which Landlord may suffer on account of Tenant’s hold-over in the Premises after the expiration or prior termination of the Term of this Lease.  Notwithstanding the foregoing, Tenant shall not be liable for consequential damages unless Tenant fails to vacate the Premises within sixty (60) days after the expiration or earlier termination of the Term of the Lease.

 

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23.                               SUBORDINATION

 

(a)                                 Subject to any mortgagee’s or ground lessor’s election, as hereinafter provided for, this Lease is subject and subordinate in all respects to all matters of record (including, without limitation, deeds and land disposition agreements), ground leases and/or underlying leases, and all mortgages, any of which may now or hereafter be placed on or affect such leases and/or the real property of which the Premises are a part, or any part of such real property, and/or Landlord’s interest or estate therein, and to each advance made and/or hereafter to be made under any such mortgages, and to all renewals, modifications, consolidations, replacements and extensions thereof and all substitutions therefor; provided, however, that the holder of any future mortgage shall enter into a subordination, non-disturbance and attornment agreement with Tenant which agreement shall be on such mortgagee’s then-current standard form, provided that the same is commercially reasonable.  In confirmation of such subordination, Tenant shall execute, acknowledge and deliver promptly any certificate or instrument that Landlord and/or any mortgagee and/or lessor under any ground or underlying lease and/or their respective successors in interest may request.  Notwithstanding the foregoing, upon Tenant’s written request after the execution and delivery hereof, Landlord agrees to use reasonable efforts to obtain.  Tenant shall pay any charges (including reasonable legal fees) required by such mortgagee as a condition to entering into such agreement.  Landlord hereby represents that, as of the Execution Date, there are no mortgages affecting the Building.

 

(b)                                 Any such mortgagee or ground lessor may from time to time subordinate or revoke any such subordination of the mortgage or ground lease held by it to this Lease.  Such subordination or revocation, as the case may be, shall be effected by written notice to Tenant and by recording an instrument of subordination or of such revocation, as the case may be, with the appropriate registry of deeds or land records and to be effective without any further act or deed on the part of Tenant.  In confirmation of such subordination or of such revocation, as the case may be, Tenant shall execute, acknowledge and promptly deliver any certificate or instrument that Landlord, any mortgagee or ground lessor may request.

 

(c)                                  Without limitation of any of the provisions of this Lease, if any ground lessor or mortgagee shall succeed to the interest of Landlord by reason of the exercise of its rights under such ground lease or mortgage (or the acceptance of voluntary conveyance in lieu thereof) or any third party (including, without limitation, any foreclosure purchaser or mortgage receiver) shall succeed to such interest by reason of any such exercise or the expiration or sooner termination of such ground lease, however caused, then such successor may, upon notice and request to Tenant (which, in the case of a ground lease, shall be within thirty (30) days after such expiration or sooner termination), succeed to the interest of Landlord under this Lease, provided, however, that such successor shall not: (i) be liable for any previous act or omission of Landlord under this Lease; (ii) be subject to any offset, defense, or counterclaim which shall theretofore have accrued to Tenant against Landlord; (iii) have any obligation with respect to any security deposit unless it shall have been paid over or physically delivered to such successor; or (iv) be bound by any previous modification of this Lease or by any previous payment of Yearly Rent for a period greater than one (1) month, made without such ground lessor’s or mortgagee’s consent where such consent is required by applicable ground lease or mortgage documents.  In the event of such succession to the interest of Landlord — and notwithstanding that any such mortgage or ground lease may antedate this Lease — Tenant shall attorn to such successor and shall ipso facto

 

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be and become bound directly to such successor in interest to Landlord to perform and observe all Tenant’s obligations under this Lease without the necessity of the execution of any further instrument, provided that such ground lessor or mortgagee agrees that provided Tenant is not in default under the terms of this Lease beyond all applicable notice and cure periods, it shall not disturb Tenant quiet enjoyment of the Premises.  Nevertheless, Tenant agrees at any time and from time to time during the Term hereof to execute a suitable instrument in confirmation of Tenant’s agreement to attorn, as aforesaid and the mortgagee’s agreement not to disturb Tenant’s occupancy.

 

(d)                                 The term “mortgage(s)” as used in this Lease shall include any mortgage or deed of trust.  The term “mortgagee(s)” as used in this Lease shall include any mortgagee or any trustee and beneficiary under a deed of trust or receiver appointed under a mortgage or deed of trust.  The term “mortgagor(s)” as used in this Lease shall include any mortgagor or any grantor under a deed of trust.

 

(e)                                  If Tenant fails to execute, acknowledge and deliver any such certificate or instrument within ten (10) days after Landlord or such mortgagee or such ground lessor has made written request therefor, then Landlord shall be entitled to send Tenant a second notice requesting such execution and delivery of such certificate or instrument (“Second Notice”), and if Tenant fails to execute and deliver such certificate or instrument within three (3) days after the Second Notice, then Tenant shall pay to Landlord a fee in the amount of Five Hundred and 00/100 Dollars ($500.00) per day for each day beyond the third (3rd) day after the Second Notice that Tenant fails to execute and deliver such certificate or instrument.  Such fee shall be in addition to Landlord’s other remedies hereunder.

 

(f)                                   In the event of any failure by Landlord to perform, fulfill or observe any agreement by Landlord herein, in no event will Landlord be deemed to be in default under this Lease permitting Tenant to exercise any or all rights or remedies under this Lease until Tenant shall have given written notice of such failure to any mortgagee (ground lessor and/or trustee) of which Tenant shall have been advised in writing and until a reasonable period of time shall have elapsed following the giving of such notice, during which such mortgagee (ground lessor and/or trustee) shall have the right, but shall not be obligated, to remedy such failure.

 

24.                               QUIET ENJOYMENT

 

Landlord covenants that if, and so long as, Tenant keeps and performs each and every covenant, agreement, term, provision and condition herein contained on the part and on behalf of Tenant to be kept and performed, Tenant shall quietly enjoy the Premises from and against the claims of all persons claiming by, through or under Landlord subject, nevertheless, to the covenants, agreements, terms, provisions and conditions of this Lease and to the mortgages, ground leases and/or underlying leases to which this Lease is subject and subordinate, as hereinabove set forth.

 

Without incurring any liability to Tenant, Landlord may permit access to the Premises and open the same, whether or not Tenant shall be present, upon any demand of any receiver, trustee, assignee for the benefit of creditors, sheriff, marshal or court officer entitled to, or reasonably purporting to be entitled to, such access for the purpose of taking possession of, or

 

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removing, Tenant’s property or for any other lawful purpose (but this provision and any action by Landlord hereunder shall not be deemed a recognition by Landlord that the person or official making such demand has any right or interest in or to this Lease, or in or to the Premises), or upon demand of any representative of the fire, police, building, sanitation or other department of the city, state or federal governments.

 

25.                               ENTIRE AGREEMENT — WAIVER — SURRENDER

 

25.1                        Entire Agreement.  This Lease and the Exhibits made a part hereof contain the entire and only agreement between the parties and any and all statements and representations, written and oral, including previous correspondence and agreements between the parties hereto, are merged herein.  Tenant acknowledges that all representations and statements upon which it relied in executing this Lease are contained herein and that Tenant in no way relied upon any other statements or representations, written or oral.  Any executory agreement hereafter made shall be ineffective to change, modify, discharge or effect an abandonment of this Lease in whole or in part unless such executory agreement is in writing and signed by the party against whom enforcement of the change, modification, discharge or abandonment is sought.

 

25.2                        Waiver by Landlord.  The failure of Landlord to seek redress for violation, or to insist upon the strict performance, of any covenant or condition of this Lease, or any of the Rules and Regulations promulgated hereunder, shall not prevent a subsequent act, which would have originally constituted a violation, from having all the force and effect of an original violation.  The receipt by Landlord of rent with knowledge of the breach of any covenant of this Lease shall not be deemed a waiver of such breach.  The failure of Landlord to enforce any of such Rules and Regulations against Tenant and/or any other tenant in the Building shall not be deemed a waiver of any such Rules and Regulations, provided that Landlord agrees that it will not enforce said Rules and Regulations against Tenant in a discriminatory or arbitrary manner.  No provisions of this Lease shall be deemed to have been waived by Landlord unless such waiver be in writing signed by Landlord.  No payment by Tenant or receipt by Landlord of a lesser amount than the monthly rent herein stipulated shall be deemed to be other than on account of the stipulated rent, nor shall any endorsement or statement on any check or any letter accompanying any check or payment as rent be deemed an accord and satisfaction, and Landlord may accept such check or payment without prejudice to Landlord’s right to recover the balance of such rent or pursue any other remedy in this Lease provided.

 

25.3                        Surrender.  No act or thing done by Landlord during the Term hereby demised 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 this Lease or a surrender of the Premises.  In the event that Tenant at any time desires to have Landlord underlet the Premises for Tenant’s account, Landlord or Landlord’s agents are authorized to receive the keys for such purposes without releasing Tenant from any of the obligations under this Lease, and Tenant hereby relieves Landlord of any liability for loss of or damage to any of Tenant’s effects in connection with such underletting.

 

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26.                               INABILITY TO PERFORM - EXCULPATORY CLAUSE

 

(a)                                 Except as may be otherwise specifically herein provided, this Lease and the obligations of Tenant to pay rent hereunder and perform all the other covenants, agreements, terms, provisions and conditions hereunder on the part of Tenant to be performed shall in no way be affected, impaired or excused because Landlord is unable to fulfill any of its obligations under this Lease or is unable to supply or is delayed in supplying any service expressly or impliedly to be supplied or is unable to make or is delayed in making any repairs, replacements, additions, alterations, improvements or decorations or is unable to supply or is delayed in supplying any equipment or fixtures if Landlord is prevented or delayed from so doing by reason of Force Majeure, as hereinafter defined.  In each such instance of inability of Landlord to perform, Landlord shall exercise reasonable diligence to eliminate the cause of such inability to perform.  For purposes of this Lease, “Force Majeure” shall mean any prevention, delay or stoppage due to governmental regulation, strikes, lockouts, acts of God, acts of war, terrorist acts, civil commotions, unusual scarcity of or inability to obtain labor or materials, labor difficulties, casualty or other causes reasonably beyond a party’s control or attributable to the other party’s action or inaction.

 

(b)                                 Except as may be otherwise specifically herein provided, this Lease and the obligations of Landlord to perform all the covenants, agreements, terms, provisions and conditions hereunder on the part of Landlord to be performed shall in no way be affected, impaired or excused because Tenant is unable to fulfill any of its obligations under this Lease (specifically excepting, however, the obligation to pay rent and the obligation to vacate the Premises at the expiration or earlier termination of the Term hereof, as to which obligations this Section 26(b) shall not apply) if Tenant is prevented or delayed from so doing by reason of Force Majeure.  In each such instance of inability of Tenant to perform, Tenant shall exercise reasonable diligence to eliminate the cause of such inability to perform.

 

(c)                                  Tenant shall neither assert nor seek to enforce any claim against Landlord, or Landlord’s agents or employees, or the assets of Landlord or of Landlord’s agents or employees, for breach of this Lease or otherwise, other than against Landlord’s interest in the Building of which the Premises are a part and in the uncollected rents, issues and profits thereof, and Tenant agrees to look solely to such interest for the satisfaction of any liability of Landlord under this Lease, it being specifically agreed that in no event shall Landlord or Landlord’s agents or employees (or any of the officers, trustees, directors, partners, beneficiaries, joint venturers, members, stockholders or other principals or representatives, and the like, disclosed or undisclosed, thereof) ever be personally liable for any such liability.  This paragraph shall not limit any right that Tenant might otherwise have to obtain injunctive relief against Landlord or to take any other action which shall not involve the personal liability of Landlord to respond in monetary damages from Landlord’s assets other than Landlord’s interest in said real estate, as aforesaid.  In no event shall Landlord or Landlord’s agents or employees (or any of the officers, trustees, directors, partners, beneficiaries, joint venturers, members, stockholders or other principals or representatives and the like, disclosed or undisclosed, thereof) ever be liable for consequential or incidental damages.  Without limiting the foregoing, in no event shall Landlord or Landlord’s agents or employees (or any of the officers, trustees, directors, partners, beneficiaries, joint venturers, members, stockholders or other principals or representatives and the like, disclosed or undisclosed, thereof) ever be liable for lost profits of Tenant.

 

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(d)                                 Landlord shall not be deemed to be in default of its obligations under this Lease unless Tenant has given Landlord written notice of such default, and Landlord has failed to cure such default within thirty (30) days after Landlord receives such notice or such longer period of time as Landlord may reasonably require to cure such default.  Except as otherwise expressly provided in this Lease, in no event shall Tenant have the right to terminate this Lease nor shall Tenant’s obligation to pay Yearly Rent or other charges under this Lease abate based upon any default by Landlord of its obligations under this Lease.

 

27.                               BILLS AND NOTICES

 

Any notice, consent, request, bill, demand or statement hereunder by either party to the other party (“Notice”) shall be in writing and shall be deemed to have been duly given when either delivered or served personally, or when delivery is first attempted or refused, provided that such Notice shall be addressed to Landlord at its address as stated in Exhibit 1 and to Tenant at the Premises (or at Tenant’s address as stated in Exhibit 1, if delivered or mailed prior to Tenant’s occupancy of the Premises), or if any address for notices shall have been duly changed as hereinafter provided, if addressed as aforesaid to the party at such changed address.  Notices shall be delivered by hand, by United States mail (certified, return receipt requested, and prepaid), or by Federal Express or other recognized overnight delivery service which provides a receipt for, or other proof of, delivery (prepaid).  Either party may at any time change the address or specify an additional address for such Notices by delivering or mailing, as aforesaid, to the other party a notice stating the change and setting forth the changed or additional address, provided such changed or additional address is a street address within the United States.

 

All bills and statements for reimbursement or other payments or charges due from Tenant to Landlord hereunder shall be due and payable in full, unless herein otherwise provided, within thirty (30) days after submission thereof by Landlord to Tenant.  Tenant’s failure to make timely payment of any amounts indicated by such bills and statements, whether for work done by Landlord at Tenant’s request, reimbursement provided for by this Lease or for any other sums properly owing by Tenant to Landlord, shall be treated as a default in the payment of rent, in which event Landlord shall have all rights and remedies provided in this Lease for the nonpayment of rent.  If Tenant has not objected to any statement of additional rent which is rendered by Landlord to Tenant within one hundred eighty (180) days after Landlord has rendered the same to Tenant, then the same shall be deemed to be a final account between Landlord and Tenant not subject to any further dispute.

 

28.                               PARTIES BOUND — TITLE

 

The covenants, agreements, terms, provisions and conditions of this Lease shall bind and benefit the successors and assigns of the parties hereto with the same effect as if mentioned in each instance where a party hereto is named or referred to, except that no violation of the provisions of Article 16 hereof shall operate to vest any rights in any successor or assignee of Tenant and that the provisions of this Article 28 shall not be construed as modifying the conditions of limitation contained in Article 21 hereof.

 

If, in connection with or as a consequence of the sale, transfer or other disposition of the real estate (land and/or Building, either or both, as the case may be) of which the Premises are a

 

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part, Landlord ceases to be the owner of the reversionary interest in the Premises, Landlord shall be entirely freed and relieved from the performance and observance thereafter of all covenants and obligations hereunder on the part of Landlord to be performed and observed, it being understood and agreed in such event (and it shall be deemed and construed as a covenant running with the land) that the person succeeding to Landlord’s ownership of said reversionary interest shall thereupon and thereafter assume, and perform and observe, any and all of such covenants and obligations of Landlord.

 

29.                               MISCELLANEOUS

 

29.1                        Separability.  If any provision of this Lease or portion of such provision or the application thereof to any person or circumstance is for any reason held invalid or unenforceable, the remainder of this Lease (or the remainder of such provision) and the application thereof to other persons or circumstances shall not be affected thereby.

 

29.2                        Captions, etc.  The captions are inserted only as a matter of convenience and for reference, and in no way define, limit or describe the scope of this Lease nor the intent of any provisions thereof.  References to “State” shall mean, where appropriate, the District of Columbia and other Federal territories, possessions, as well as a state of the United States.

 

29.3                        Broker.  Tenant represents and warrants that it has not directly or indirectly dealt, with respect to the leasing of office space in the Building, with any broker or had its attention called to the Premises or other space to let in the Building, etc. by anyone other than the broker, person or firm, if any, designated in Exhibit 1.  Tenant agrees to defend, exonerate and save harmless and indemnify Landlord and anyone claiming by, through or under Landlord against any claims for a commission arising out of the execution and delivery of this Lease or out of negotiations between Landlord and Tenant with respect to the leasing of other space in the Building, provided that Landlord shall be solely responsible for the payment of brokerage commissions to the broker, person or firm, if any, designated as Landlord’s Broker in Exhibit 1.  Landlord represents and warrants that, in connection with the execution and delivery of the Lease, it has not directly or indirectly dealt with any broker other than the brokers designated on Exhibit 1.  Landlord agrees to defend, exonerate and save harmless Tenant and anyone claiming by, through, or under Tenant against any claims arising in breach of the representation and warranty set forth in the immediately preceding sentence.

 

29.4                        Intentionally Omitted.

 

29.5                        Arbitration.  Any disputes relating to provisions or obligations in this Lease as to which a specific provision or a reference to arbitration is made herein shall be submitted to arbitration in accordance with the provisions of applicable state law (as identified in Section 29.6), as from time to time amended.  Arbitration proceedings, including the selection of an arbitrator, shall be conducted pursuant to the rules, regulations and procedures from time to time in effect as promulgated by the American Arbitration Association.  Prior written notice of application by either party for arbitration shall be given to the other at least ten (10) days before submission of the application to the said Association’s office in Boston, Massachusetts.  The arbitrator shall hear the parties and their evidence.  The decision of the arbitrator shall be binding and conclusive, and judgment upon the award or decision of the arbitrator may be entered in the

 

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appropriate court of law (as identified on Exhibit 1), and the parties consent to the jurisdiction of such court and further agree that any process or notice of motion or other application to the Court or a Judge thereof may be served outside the Commonwealth of Massachusetts by registered mail or by personal service, provided a reasonable time for appearance is allowed.  The costs and expenses of each arbitration hereunder and their apportionment between the parties shall be determined by the arbitrator in his award or decision.  No arbitrable dispute shall be deemed to have arisen under this Lease prior to (i) the expiration of the period of twenty (20) days after the date of the giving of written notice by the party asserting the existence of the dispute together with a description thereof sufficient for an understanding thereof; and (ii) where a Tenant payment (e.g., Tax Excess or Operating Costs Excess under Article 9 hereof) is in issue, the amount billed by Landlord having been paid by Tenant.

 

29.6                        Governing Law.  This Lease is made pursuant to, and shall be governed by, and construed in accordance with, the laws of the Commonwealth of Massachusetts and any applicable local municipal rules, regulations, by-laws, ordinances and the like.

 

29.7                        Assignment of Rents.

 

With reference to any assignment by Landlord of its interest in this Lease, or the rents payable hereunder, conditional in nature or otherwise, which assignment is made to or held by a bank, trust company, insurance company or other institutional lender holding a mortgage or ground lease on the Building or Landlord’s interest therein, Tenant agrees:

 

(a)                                 that the execution thereof by Landlord and the acceptance thereof by such mortgagee and/or ground lessor shall never be deemed an assumption by such mortgagee and/or ground lessor of any of the obligations of Landlord thereunder, unless such mortgagee and/or ground lessor shall, by written notice sent to Tenant, elect to receive rent payments; and

 

(b)                                 that, except as aforesaid, such mortgagee and/or ground lessor shall be treated as having assumed Landlord’s obligations thereunder only upon notice of its exercise of the option stated in Article 23 hereof to receive rents under this Lease.

 

29.8                        Representation of Authority.  By his execution hereof each of the signatories on behalf of the respective parties hereby warrants and represents to the other that he or she is duly authorized to execute this Lease on behalf of such party.  If Tenant is a corporation, Tenant hereby appoints the signatory whose name appears below on behalf of Tenant as Tenant’s attorney-in-fact for the purpose of executing this Lease for and on behalf of Tenant.

 

29.9                        Expenses Incurred by Landlord Upon Tenant Requests.  Except in connection with requests by Tenant to sublet the Premises or assign its interest in this Lease, as to which the review fee set forth in Article 16 shall apply, and requests in connection with Alterations (as to which the fee set forth in Article 12 shall apply, Tenant shall, upon demand, reimburse Landlord for all reasonable third party expenses, including, without limitation, legal fees, incurred by Landlord in connection with all requests by Tenant for consents, approvals or execution of collateral documentation related to this Lease, including, without limitation, costs incurred by Landlord in the review and approval of Tenant’s plans and specifications in connection with proposed alterations to be made by Tenant to the Premises and requests by Tenant for Landlord

 

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to execute waivers of Landlord’s interest in Tenant’s property in connection with third party financing by Tenant.  Such costs shall be deemed to be additional rent under this Lease.

 

29.10                 Survival.  Without limiting any other obligation of Tenant which may survive the expiration or prior termination of the Term of this Lease, all obligations on the part of Tenant to indemnify, defend, or hold Landlord harmless, as set forth in this Lease (including, without limitation, Tenant’s obligations under Sections 13(d), 15.3, and 29.3) shall survive the expiration or prior termination of the Term of this Lease.

 

29.11                 Financial Statements.  Tenant, within fifteen (15) days after request (such request to be made not more than one time in any twelve (12) month period unless required in connection with a contemplated sale or refinancing of the Building, or unless Tenant is in default beyond applicable notice and grace periods of its obligations under the Lease), shall provide Landlord with a current financial statement and such other information as Landlord may reasonably request in order to create a “business profile” of Tenant and determine Tenant’s ability to fulfill its obligations under this Lease.  Landlord shall maintain all financial information of Tenant in confidence, except Landlord may disclose such information to lenders, prospective purchasers of the Building or Landlord’s interest therein, and its professional advisors after obtaining assurances from such parties that they will maintain such information in confidence.

 

29.12                 Parking.

 

(a)                                 Number of Passes.  Landlord shall provide to Tenant certain monthly parking passes (“Parking Passes”) in the parking garage located beneath the Building (“Building Garage”), as follows:

 

	
Location
    	
 
    	
Minimum/Maximum
   Number of Passes
    	
 
    	
Reserved/Unreserved
    
	
Building Garage
    	
 
    	
Minimum: 28 
   Maximum: 28
    	
 
    	
Unreserved
    
	
Building Garage
    	
 
    	
Minimum: 2 
   Maximum: 2
    	
 
    	
Reserved
    

 

(b)                                 Parking Passes.  During the Term of this Lease, Tenant shall have the right to use, and shall be obligated to pay for, twenty-eight (28) unreserved Parking Passes.  The unreserved Parking Passes shall be paid for by Tenant at the then current prevailing rate for unreserved parking in the Building Garage, as such rate may vary from time to time.  Landlord hereby represents to Tenant that, as of the Execution Date of this Lease, the charge for unreserved Parking Passes is $250.00 per month, per pass, subject to increase from time to time.  During the Term of this Lease, Tenant shall have the right to use, and shall be obligated to pay for, two (2) reserved Parking Passes.  The reserved Parking Passes shall be paid for by Tenant at the then current prevailing rate for reserved parking in the Building Garage, as such rate may vary from time to time.  Landlord hereby represents to Tenant that, as of the Execution Date of this Lease, the charge for reserved Parking Passes is $300.00 per month, per pass, subject to increase from time to time.

 

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(c)                                  Building Garage Operator.  Landlord hereby reserves the right to enter into a management agreement or lease with an entity for the Building Garage (“Building Garage Operator”).  In such event, Tenant, upon request of Landlord, shall enter into a parking agreement with the Building Garage Operator and pay the Building Garage Operator the monthly charge established hereunder, and Landlord shall have no liability for claims arising through acts or omissions of the Building Garage Operator unless caused by the negligence or willful misconduct of Landlord.  It is understood and agreed that the identity of the Building Garage Operator may change from time to time during the Term.  In connection therewith, any parking lease or agreement entered into between Tenant and a Building Garage Operator shall be freely assignable by such Building Garage Operator or any successors thereto.

 

(d)                                 No Liability — Building Garage.  Neither Landlord nor any Building Garage Operator shall be responsible for money, jewelry, vehicles or other personal property lost in or stolen from the Building Garage regardless of whether such loss or theft occurs when the Building Garage or other areas therein are locked or otherwise secured.  Except as caused by the negligence or willful misconduct of Landlord or any Building Garage Operator and without limiting the terms of the preceding sentence, neither Landlord nor any Building Garage Operator shall be liable for any loss, injury or damage to persons using the Building Garage or vehicles or other property therein, it being agreed that, to the fullest extent permitted by Law, the use of the Building Garage shall be at the sole risk of Tenant and its employees.

 

(e)                                  General Provisions.  Tenant shall have no right to sublet, assign, or otherwise transfer any of the Parking Passes, other than in connection with an assignment of this Lease or a sublease of part or all of the Premises permitted pursuant to Article 16 hereof.  No deductions or allowances shall be made for days when Tenant or any of its employees does not utilize the parking facilities or for Tenant utilizing less than all of the Parking Passes, unless Tenant is unable to use the any of Tenant’s parking passes for more than one (1) business day pursuant to this Section 29.12 due to the unavailability of such parking passes.  If, for any reason, Tenant shall fail timely to pay the charge for said Parking Passes, such failure will be a monetary default hereunder and at Landlord’s election, in addition to Landlord’s other remedies hereunder, Tenant shall have no further right to such Parking Pass under this Section 29.12.  Parking pursuant to the unreserved Parking Passes will be on an unassigned, non-reserved basis, and shall be subject to the rules and regulations from time to time in force.  Parking pursuant to the reserved Parking Passes will be on an assigned, reserved basis, and shall be subject to the rules and regulations from time to time in force.

 

(f)                                   Parking Rules and Regulations.  Landlord or the Building Garage Operator shall have the right from time to time to promulgate reasonable rules and regulations regarding the Building Garage, the Parking Passes and the use thereof, including, but not limited to, rules and regulations controlling the flow of traffic to and from various parking areas, the angle and direction of parking and the like.  Tenant shall comply with and cause its employees to comply with all such rules and regulations as well as all reasonable additions and amendments thereto.

 

(g)                                  No Overnight Storage.  Tenant shall not store or permit its employees to store any vehicles in the Building Garage without the prior written consent of Landlord or the Building Garage Operator.  Except for emergency repairs, Tenant and its employees shall not

 

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perform any work on any vehicles while located in the Building Garage or on the Property.  If it is necessary for Tenant or its employees to leave a vehicle in the Building Garage overnight, Tenant shall provide Landlord and the Building Garage Operator with prior notice thereof designating the license plate number and model of such vehicle.

 

(h)                                 Temporary Closure — Building Garage.  Landlord and the Building Garage Operator shall have the right to temporarily close the Building Garage or certain areas therein in order to perform necessary repairs, maintenance and improvements to the Building Garage.

 

(i)                                     Access Cards.  The Building Garage Operator may elect to provide parking cards or keys to control access to the Building Garage.  In such event, Landlord or the Building Garage Operator shall provide Tenant with one card or key for each Building Garage Pass that Tenant is entitled to hereunder, provided that Landlord or the Building Garage Operator shall have the right to require Tenant or its employees to place a deposit on such access cards or keys and to pay a fee for any lost or damaged cards or keys.

 

29.13                 Anti-Terrorism Representations.  Tenant represents and warrants to Landlord that:

 

(a)                                 Tenant is not, and shall not during the Term of this Lease become, a person or entity with whom Landlord is restricted from doing business under the Uniting and Strengthening America by Providing Appropriate Tools Required to Intercept and Obstruct Terrorism Act of 2001, H.R. 3162, Public Law 107-56 (commonly known as the “USA Patriot Act”) and Executive Order Number 13224 on Terrorism Financing, effective September 24, 2001 and regulations promulgated pursuant thereto, including, without limitation, persons and entities named on the Office of Foreign Asset Control Specially Designated Nationals and Blocked Persons List (collectively, “Prohibited Persons”); and

 

(b)                                 Tenant is not currently conducting any business or engaged in any transactions or dealings, or otherwise associated with, any Prohibited Persons in connection with the use or occupancy of the Premises; and

 

(c)                                  Tenant will not in the future during the Term of this Lease engage in any transactions or dealings, or be otherwise associated with, any Prohibited Persons in connection with the use or occupancy of the Premises.

 

29.14                 Waiver of Trial by Jury.  Each of Landlord and Tenant hereby waives any right to trial by jury in any action, proceeding or brought by either Landlord or Tenant on any matters whatsoever arising out of or any way connected with this Lease, the relationship of Landlord and Tenant, 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.

 

29.15                 No Offset.  Except as may be otherwise expressly provided in this Lease, in no event shall Tenant have the right to terminate or cancel this Lease or to withhold rent or to set-off any claim or damages against rent as a result of any default by Landlord or breach by Landlord of its covenants or warranties or promises under this Lease, 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.  Further, Tenant

 

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shall not assert any right to deduct the cost of repairs or any monetary claim against Landlord from rent thereafter due and payable, but shall look solely to Landlord for satisfaction of such claim.

 

29.16                 Tenant’s Option to Extend the Term of the Lease.  On the conditions, which conditions Landlord may waive, at its election, by written notice to Tenant at any time, that Tenant is not in default of its covenants and obligations under the Lease, beyond applicable grace and cure periods, as of the time of option exercise and as of the commencement of the hereinafter described additional Term, that Tenant has not assigned this Lease other than to a Permitted Assignee, and that Tenant, itself, or a Permitted Assignee, is occupying at least seventy-five percent (75%) of the Premises then demised to Tenant, both as of the time of option exercise and as of the commencement of the hereinafter described additional term, Tenant shall have the option (“Extension Option”) to extend the Term of this Lease for one (1) additional five (5) year period, such additional term commencing as of commencing as of the expiration of the initial term of the Lease (“Extension Term”).  Tenant may exercise its Extension Option by giving Landlord written notice (“Extension Notice”) on or before the date that is twelve (12) months prior to the expiration of the Expiration Date of the initial Term of the Lease.  Upon the timely giving of the Extension Notice, the term of this Lease shall be deemed extended upon all of the terms and conditions of this Lease.  If Tenant fails to timely give the Extension Notice, as aforesaid, Tenant shall have no further right to extend the term of this Lease, time being of the essence of this Section 29.16.

 

(b)                                 The Yearly Rent during the Extension Term shall be based upon the Fair Market Rental Value, as defined in and determined pursuant to Subparagraph (e) of this Section 29.16, as of the commencement of the Extension Term, of the Premises then demised to Tenant.

 

(c)                                  Tenant shall have no further option to extend the Term of the Lease other than the Extension Term.

 

(d)                                 Notwithstanding the fact that Tenant’s exercise of the Extension Option shall be self-executing, as aforesaid, the parties shall promptly execute a lease amendment reflecting the Extension Term after Tenant exercises the Extension Option, except that, if has not yet been determined, the Yearly Rent payable in respect of the Extension Term may not be set forth in said amendment.  In such event, after such Yearly Rent is determined, the parties shall execute a written agreement confirming the same.  The execution of such lease amendment shall not be deemed to waive any of the conditions to Tenant’s exercise of its rights under this Section 29.16, unless otherwise specifically provided in such lease amendment.

 

(e)                                  (i)                                     “Fair Market Rental Value” shall be computed as of the commencement of the Extension Term at the then current annual rental charge (i.e., the sum of Yearly Rent plus escalation and other charges), including provisions for subsequent increases and other adjustments for renewal leases or renewal agreements to lease then currently being executed in comparable space located in the Building, or if no leases or agreements to lease (including letters of intent, if executed by both Landlord and Tenant) are then currently being executed in the Building, the Fair Market Rental Value shall be determined by reference to renewal leases or renewal agreements to lease (including letters of intent, if executed by both Landlord and Tenant) then currently being negotiated or executed for comparable space located

 

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elsewhere in comparable first-class office buildings located in the East Cambridge, Massachusetts market area.  In determining Fair Market Rental Value, all relevant factors shall be considered.

 

(ii)                                  Dispute as to Fair Market Rental Value

 

Landlord shall initially designate Fair Market Rental Value by notice to Tenant thereof given at least eleven (11) months before the Expiration Date.  If Tenant disagrees with Landlord’s designation of a Fair Market Rental Value, Tenant shall have the right, by written notice given within thirty (30) days after Tenant has been notified of Landlord’s designation, to provide Landlord with Tenant’s written designation of Fair Market Rental Value and submit such Fair Market Rental Value to arbitration, failing which, Tenant shall be conclusively deemed to have accepted Landlord’s designation of Fair Market Rental Value.  If Tenant so notifies Landlord, Fair Market Rental Value shall be submitted to arbitration as follows: Fair Market Rental Value shall be determined by impartial arbitrators, one to be chosen by the Landlord, one to be chosen by Tenant, and a third to be selected, if necessary, as below provided.  The arbitrators shall select whichever of Tenant’s or Landlord’s written designation of Fair Market Rental Value is nearest to the Fair Market Rental Value determined by the arbitrators and shall have no authority to select any other amount as the Fair Market Rental Value.  The unanimous written decision of the two first chosen, without selection and participation of a third arbitrator, or otherwise, the written decision of a majority of three arbitrators chosen and selected as aforesaid, shall be conclusive and binding upon Landlord and Tenant.  Landlord and Tenant shall each notify the other of its chosen arbitrator within ten (10) days following the call for arbitration and, unless such two arbitrators shall have reached a unanimous decision within thirty (30) days after their designation, they shall so notify the Boston Bar Association (or such organization as may succeed to said Boston Bar Association) and request him to select an impartial third arbitrator, who shall be an office building owner or a real estate broker dealing with like types of properties, to determine Fair Market Rental Value as herein defined.  Such third arbitrator and the first two chosen shall, subject to commercial arbitration rules of the American Arbitration Association, hear the parties and their evidence and render their decision within thirty (30) days following the conclusion of such hearing and notify Landlord and Tenant thereof.  Landlord and Tenant shall bear the expense of the third arbitrator (if any) equally.  The decision of the arbitrator shall be binding and conclusive, and judgment upon the award or decision of the arbitrator may be entered in the appropriate court of law (as identified on Exhibit 1); and the parties consent to the jurisdiction of such court and further agree that any process or notice of motion or other application to the Court or a Judge thereof may be served outside the Commonwealth of Massachusetts by registered mail or by personal service, provided a reasonable time for appearance is allowed.  If the dispute between the parties as to a Fair Market Rental Value has not been resolved before the commencement of Tenant’s obligation to pay rent based upon such Fair Market Rental Value, then Tenant shall pay Yearly Rent and other charges under the Lease in respect of the Premises in question based upon the Fair Market Rental Value designated by Landlord until either the agreement of the parties as to the Fair Market Rental Value, or the decision of the arbitrators, as the case may be, at which time Tenant shall pay any underpayment of rent and other charges to Landlord, or Landlord shall refund any overpayment of rent and other charges to Tenant.

 

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29.17                 Tenant’s Right of First Refusal.

 

(a)                                 Grant of Option; Conditions.  On the conditions set forth below, which conditions Landlord may waive, at its election, by written notice to Tenant at any time, Tenant shall have the ongoing right of first refusal (the “Right of First Refusal”) with respect to all or any portion of the third (3rd) floor of the Building (the “Refusal Space”) for the period from the Execution Date hereof through the date Landlord first executes a lease for the Refusal Space in question with Tenant or another party.  (In other words, the Refusal Space is currently vacant, and Tenant’s Right of First Refusal with respect to any portion of the Refusal Space shall end on the date Landlord first enters into a lease for such portion, whether such lease is with Tenant or with another party.) Tenant’s Right of First Refusal shall be exercised as follows: When Active Negotiations, as hereinafter defined, have occurred with respect to all or a portion of the Refusal Space, Landlord shall advise Tenant (the “Advice”) of the terms of such Active Negotiations (with the Pro Rata Modifications, as hereinafter defined) (provided, however, that if the Active Negotiations are in effect because of the exchange of 4 bona fide written proposals, as set forth below, then the Advice shall be based upon the terms of Landlord’s last proposal, with the Pro Rata Modifications) and Tenant may lease the Refusal Space, under such terms, by providing Landlord with written notice of exercise (the “Notice of Exercise”) within five (5) business days after the date of the Advice.  As used herein, “Active Negotiations” means that Landlord has entered into negotiations with a third party tenant (a “Prospect”) for such portion of the Refusal Space, which negotiations have progressed to the earlier to occur of (i) an exchange of four (4) bona fide written proposals between Landlord and the Prospect, or (ii) a signed letter of intent between Landlord and the Prospect.  Notwithstanding the foregoing, Tenant shall have no such Right of First Refusal and Landlord need not provide Tenant with an Advice if:

 

(1)                                 Tenant is in default under the Lease beyond any applicable notice and cure periods at the time that Landlord would otherwise deliver the Advice; or

 

(2)                                 the Premises, or any portion thereof, is sublet at the time Landlord would otherwise deliver the Advice, other than to a Permitted Assignee; or

 

(3)                                 the Lease has been assigned prior to the date Landlord would otherwise deliver the Advice, other than to a Permitted Assignee; or

 

(4)                                 the Refusal Space is not intended for the exclusive use of Tenant or a Permitted Assignee during the Term.

 

(b)                                 Terms for Refusal Space.

 

Upon Tenant’s delivery of a Notice of Exercise, the Refusal Space in question shall be considered a part of the Premises, provided that except as otherwise set forth herein, all of the terms stated in the Advice shall govern Tenant’s leasing of the Refusal Space and only to the extent that they do not conflict with the Advice, the terms and conditions of the Lease shall apply to the Refusal Space.  The following shall apply to Tenant’s leasing of the Refusal Space:

 

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(1)                                 The term for the Refusal Space shall commence upon the commencement date stated in the Advice.

 

(2)                                 If at least five (5) years remain in the Term at the time Tenant delivers its Notice of Exercise, then the term for the Refusal Space shall be coterminous with the Term hereof.  If less than five (5) years remain in the Term at the time Tenant delivers its Notice of Exercise, then the term for the Refusal Space shall be as set forth in the Advice.

 

(3)                                 Tenant shall pay Yearly Rent and additional rent for the Refusal Space in accordance with the terms and conditions of the Advice.

 

(4)                                 If, pursuant to Section 29.17 (b)(2) above, the term for the Refusal Space is different than the term contemplated by the Active Negotiations, then any free rent or Landlord construction allowance contemplated in the Active Negotiations shall be pro-rated to reflect such difference in term (the “Pro Rata Modifications”).

 

(5)                                 The Refusal Space (including improvements and personalty, if any) shall be accepted by Tenant in its condition and as-built configuration existing on the earlier of the date Tenant takes possession of the Refusal Space or the date the term for such Refusal Space commences, unless the Advice specifies work to be performed by Landlord in the Refusal Space, in which case Landlord shall perform such work in the Refusal Space.

 

(c)                                  Termination of Right of First Refusal.  The rights of Tenant hereunder with respect to the Refusal Space shall terminate on the earliest to occur of (i) Tenant’s failure to exercise its Right of First Refusal within the five (5) business day period provided in subparagraph (a) above (provided, however, that if Landlord does not lease the Refusal Space to the Prospect whose interest triggered Tenant’s Right of First Refusal in substantial accordance with the terms of the Advice, then Tenant shall continue to have a Right of First Refusal with respect to any other Prospect interested in the Refusal Space or with respect to the Prospect on any terms materially different from the Advice, subject to all of the other conditions of this Section 29.17, including without limitation the outside date referenced in (iii) below); (ii) the date Landlord would have provided Tenant an Advice if Tenant had not been in violation of one or more of the conditions set forth in subparagraph (a) above, and (iii) with respect to each portion of the Refusal Space, the date such portion is first leased to Tenant or someone else.  (the “Outside Refusal Space Date”).

 

(d)                                 Refusal Space Amendment.  If Tenant exercises its Right of First Refusal, Landlord shall prepare an amendment (the “Refusal Space Amendment”) adding the Refusal Space to the Premises in accordance with the provisions set forth above and reflecting the changes in the Yearly Rent, Total Rentable Area of the Premises, Tenant’s Proportionate Share and other appropriate terms.  A copy of the Refusal Space Amendment shall be sent to Tenant within a reasonable time after Landlord’s receipt of the Notice of Exercise executed by Tenant, and Tenant shall execute and return the Refusal Space Amendment to Landlord within fifteen

 

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(15) days thereafter, but an otherwise valid exercise of the Right of First Refusal shall be fully effective whether or not the Refusal Space Amendment is executed.

 

(e)                                  Confidentiality.  Tenant agrees to keep all of the information contained in the Advice, including without limitation the identity of the Prospect, strictly confidential.

 

(f)                                   Landlord shall keep Tenant apprised of Landlord’s receipt of any proposals from potential prospective tenants of the Refusal Space prior to the Outside Refusal Space Date.

 

29.18                 Tenant’s Limited Expansion Option.

 

(a)                                 Grant of Option; Conditions.  On the conditions set forth below, which conditions Landlord may waive, at its election, by written notice to Tenant at any time, Tenant shall have the one-time right of expansion (the “Expansion Option”) to lease a block of space (the “Expansion Space”) containing a minimum of 20,000 contiguous rentable square feet of floor area and a maximum of the entire remainder of the Unleased (as hereinafter defined) space on the applicable floor of the Building, the exact size and location of which is to be reasonably designated by Landlord, within the Potential Expansion Space, as hereinafter defined.  The Expansion Space shall be located on the third (3rd) floor of the Building, provided, however, that if there is not at least 20,000 contiguous rentable square feet of floor area of Unleased space on the third (3rd) floor of the Building, then the Expansion Space shall be located on the fifth (5th) floor of the Building (collectively, the “Potential Expansion Space”).  Tenant’s Expansion Option shall be in effect for the period from the Execution Date hereof through the date that there is no longer sufficient Unleased Potential Expansion Space remaining to satisfy the Expansion Space (such date, the “Expansion Option Expiration Date”).  As used herein, “Unleased” shall mean that Landlord (i) has not executed a lease for the space in question (with Tenant or with another tenant(s)), and (ii) Landlord does not have copies of a lease for such space outstanding.  (In other words, the Potential Expansion Space is currently vacant, and Tenant’s Expansion Option with respect to each portion of the Potential Expansion Space shall end on the date Landlord first enters into a lease for such portion, whether such lease is with Tenant or with another party.  Furthermore, during any period in which Landlord has a draft lease outstanding, Tenant shall also have no rights in the space to which such draft apply.) While the Expansion Space may be located anywhere within the Potential Expansion Space, Tenant shall have only one Expansion Option hereunder, to lease only one Expansion Space.  Notwithstanding the foregoing, Tenant shall have no such Expansion Option if, at the time of option exercise or at the Commencement Date with respect to the Expansion Space:

 

(1)                                 Tenant is in default under the Lease beyond any applicable notice and cure periods; or

 

(2)                                 more than twenty-five percent (25%) of the Premises is sublet, other than to a Permitted Assignee; or

 

(3)                                 the Lease has been assigned other than to a Permitted Assignee; or

 

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(4)                                 the Expansion Space is not intended for the exclusive use of Tenant or any Permitted Assignee during the Term.

 

(b)                                 Exercise of Rights to Expansion Space.  Tenant may exercise its option to lease the Expansion Space by giving written notice (“Expansion Exercise Notice”) to Landlord on or before the Expansion Option Expiration Date.  If Tenant fails timely to give such notice, Tenant shall have no further right to lease such Expansion Space, time being of the essence of this Section 29.18.  Upon Tenant’s delivery of the Expansion Exercise Notice, the Expansion Space shall be considered a part of the Premises, and except as otherwise set forth herein, all of the terms and conditions of the Lease shall apply to the Expansion Space.

 

(c)                                  Lease Provisions Applying to Expansion Space.  The following shall apply to Tenant’s leasing of the Expansion Space:

 

(1)                                 The term for the Expansion Space shall commence upon the date Landlord delivers the Expansion Space to Tenant, broom clean and free of tenants or other occupants.

 

(2)                                 The term for the Expansion Space shall be coterminous with the Term hereof, but in no event less than five (5) years.

 

(3)                                 If Tenant delivers the Expansion Exercise Notice within four (4) months of the Execution Date hereof, Tenant shall pay Yearly Rent and additional rent for the Expansion Space, and be entitled to a Landlord’s Contribution with respect to the Expansion Space, all at the same rate on a per square foot basis as applicable to the Premises originally demised hereunder, but notwithstanding anything to the contrary herein contained, the Rent Commencement Date with respect to the Expansion Space shall be the same as the Rent Commencement Date for the Premises originally demised hereunder.

 

(4)                                 If Tenant delivers the Expansion Exercise Notice after the date four (4) months after the Execution Date hereof, the Yearly Rent rental rate in respect of such RFO Premises shall be based upon the Fair Market Rental Value determined as set forth above.

 

(d)                                 Condition of Expansion Space.  Tenant shall take such Expansion Space “as-is” in its then (i.e. as of the date of delivery) state of construction, finish, and decoration, without any obligation on the part of Landlord to construct or prepare the Expansion Space for Tenant’s occupancy, unless otherwise agreed by Landlord in writing at Landlord’s discretion.  The foregoing shall not operate to exclude or waive any improvement allowances, Rent abatement, free Rent or other concessions determined to be part of the Fair Market Rental Value.

 

(e)                                  Expansion Space Amendment.  If Tenant exercises its Expansion Option, Landlord shall prepare an amendment (the “Expansion Space Amendment”) adding the Expansion Space to the Premises in accordance with the provisions set forth above and reflecting the changes in the Yearly Rent, Total Rentable Area of the Premises, Tenant’s Proportionate Share and other appropriate terms.  A copy of the Expansion Space Amendment shall be sent to

 

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Tenant within a reasonable time after Landlord’s receipt of the Expansion Exercise Notice, and Tenant shall execute and return the Expansion Space Amendment to Landlord within fifteen (15) days thereafter, but an otherwise valid exercise of the Expansion Option shall be fully effective whether or not the Expansion Space Amendment is executed.

 

29.19                 Tenant’s Termination Option.On the conditions set forth below (which conditions Landlord may waive by written notice to Tenant at any time), Tenant shall have the right (“Termination Right”), provided that the Lack of Expansion Space (as hereinafter defined) is in effect, to terminate the term of the Lease effective as of the fifth (5th) anniversary of the Rent Commencement Date (“Effective Termination Date”) by giving Landlord notice (“Tenant’s Termination Notice”) on or before the fourth (4th) anniversary of the Rent Commencement Date (“Notice Date”) and by paying to Landlord, at the time that Tenant gives Tenant’s Termination Notice, the Termination Fee, as hereinafter defined.  Notwithstanding the foregoing, Tenant shall have no such Termination Right if any of the following conditions (collectively, the “Prohibited Conditions”) exist:

 

(1)                                 at the time Tenant delivers Tenant’s Termination Notice or at the Effective Termination Date, Tenant is in default under the Lease beyond any applicable notice and cure periods; or

 

(2)                                 at the time Tenant delivers Tenant’s Termination Notice or at the Effective Termination Date, the Premises, or any portion thereof, is sublet to anyone other than a Permitted Assignee; or

 

(3)                                 at the time Tenant delivers Tenant’s Termination Notice or at the Effective Termination Date, the Lease has been assigned to anyone other than a Permitted Assignee; or

 

(4)                                 the Other Lease Condition, as hereinafter defined, is not met.  As used herein, the “Other Lease Condition” means both of the following:

 

(i)                                     within sixty (60) days after the delivery of Tenant’s Termination Notice, Tenant shall deliver to Landlord a copy of a fully-executed letter of intent for Tenant to lease premises within the greater Boston metropolitan area containing at least 15,000 square feet of rentable floor area more than the rentable floor area of the Premises at the time Tenant delivered Tenant’s Termination Notice (premises meeting such criteria, the “Other Premises”); and

 

(ii)                                  on or before the Effective Termination Date, Tenant shall deliver to Landlord a copy of a fully-executed lease for Other Premises.

 

(iii)                               Both the copy of the letter of intent to lease the Other Premises, and the copy of the lease for the Other Premises,

 

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may be redacted to remove financial information, but not the location of the building and the size of the Other Premises.

 

(b)                                 As noted above, Tenant’s Termination Right is conditioned upon the Lack of Expansion Space, as hereinafter defined, being in effect at the time Tenant delivers Tenant’s Termination Notice.  As used herein, the “Lack of Expansion Space” shall mean all of the following:

 

(1)                                 The aggregate square footage of rentable floor area of the Premises leased to Tenant hereunder, or leased to Tenant in the buildings owned by affiliates of Landlord known as One Canal Park and/or Ten Canal Park, shall have been increased over the period from the Execution Date through the date of Tenant’s Termination Notice (whether through the exercise of Tenant’s Expansion Option, the exercise of Tenant’s Right of First Refusal, or otherwise) (such increased rentable floor area leased to Tenant, the “Added Space”) by less than 30,000 square feet of rentable floor area; and

 

(2)                                 Tenant shall give Landlord notice (“Expansion Request”), not more than sixty (60) days and not less than thirty (30) days prior to the Notice Date, that it wishes to lease from Landlord additional premises having a minimum square footage of the difference between the Added Space and 30,000 rentable square feet (the “Requested Space”); and

 

(3)                                 Landlord shall not have notified Tenant, on or before the date thirty (30) days after its receipt of the Expansion Request, that Landlord or its affiliates has Qualifying Space, as hereinafter defined, available for leasing to Tenant.  As used herein, “Qualifying Space” means one or more blocks of space (which need not be contiguous) within the Building, One Canal Park and/or Ten Canal Park provided that (a) the smallest such space shall be equal to or larger than the lesser of (i) 10,000 square feet of rentable floor area and (ii) the size of the Requested Space, and the aggregate rentable floor area of such space(s) does not exceed the greater of (x) the Requested Space, or (y) 50,000 square feet of rentable floor area.

 

(c)                                  If Tenant timely and properly exercises its Termination Right and timely pays to Landlord the Termination Fee, and if no Prohibited Conditions exist (unless waived in writing by Landlord), then the term of the Lease shall terminate as of the Effective Termination Date, and Yearly Rent and other charges shall be apportioned as of said Effective Termination Date.

 

(d)                                 For the purposes hereof, the “Termination Fee” shall be equal to the sum of (i) the Unamortized Portion, as hereinafter defined, of Landlord’s Transaction Costs, as hereinafter defined, plus (ii) an amount equal to one half (1/2) of the Yearly Rent in effect for Lease Year 6.  The “Unamortized Portion” shall be defined as the amount of principal which would remain unpaid as of the Effective Termination Date with respect to a loan in an original

 

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principal amount equal to Landlord’s Transaction Costs and which is repaid in equal monthly payments of principal and interest on a direct reduction basis over the seven (7) year term of the Lease (beginning on the Rent Commencement Date) with interest at the rate of seven (7%) percent per annum.  For the purposes hereof, “Landlord’s Transaction Costs” shall be Landlord’s Contribution plus the brokerage commissions incurred by Landlord in connection with this Lease (including any commissions or tenant improvement allowances in connection with any Added Space).

 

29.20                 Notice of Lease.  Landlord and Tenant agree not to record this Lease.  Both parties will, however, execute, acknowledge and deliver a Notice of Lease in recordable form.  Such notice shall include information about all rights of first refusal, extension and expansion options therefor.

 

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IN WITNESS WHEREOF the parties hereto have executed this Deed of Lease in multiple copies, each to be considered an original hereof, as a sealed instrument on the day and year noted in Exhibit 1 as the Execution Date.

 

	
LANDLORD:
    	
TENANT:
    
	
 
    	
 
    
	
BCSP CAMBRIDGE TWO PROPERTY LLC,   a
    	
CARGURUS LLC,
    
	
Delaware limited liability   company
    	
a Massachusetts limited liability   company
    
	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
By: 
    	
/s/ Philip J. Brannigan, Jr.
    	
 
    	
By: 
    	
/s/ E. Langley Steinert
    
	
Name: 
    	
Philip J. Brannigan, Jr.
    	
 
    	
Name: 
    	
E. Langley Steinert
    
	
Title: 
    	
Managing Director
    	
 
    	
Title: 
    	
CEO
    
	
 
    	
 
    	
Hereunto   Duly Authorized
    
	
 
    	
 
    	
10/9/14
    

 

 

EXHIBIT 2

 

LEASE PLAN

 

Exhibit 2-1

 

EXHIBIT 3

 

INSURANCE PROVISIONS

 

1.                                      TENANT INSURANCE

 

A.                                    Tenant shall procure, maintain and pay for, from a company or companies lawfully authorized to do business in the jurisdiction in which the Building is located having a rating of A-VIII or better by AM Best and otherwise reasonably acceptable to Landlord, the following types of insurance as will protect the Tenant and Landlord against claims which may be claimed to have occurred from and after the time Tenant and/or its contractors first enter the Premises and continuing through the expiration of the Term of this Lease or, if later, the last day that Tenant or anyone claiming by, through or under Tenant is in occupancy of all or a portion of the Premises:

 

(i)                                     Commercial General Liability Insurance, as hereinafter defined, with the following minimum limits:

 

(a)                                 $1,000,000                                  Each Occurrence;

 

(b)                                 $2,000,000                                  General Aggregate

 

(c)                                  $1,000,000                                  Personal and Advertising Injury; and

 

(d)                                 $2,000,000                                  Products-Completed Operations Aggregate.

 

(ii)                                  Umbrella/Excess Liability Insurance, as hereinafter defined, with a per occurrence and annual aggregate limit of $4,000,000 per location (“Umbrella Limit”).

 

(iii)                               Property Insurance, as hereinafter defined, insuring Tenant’s personal property and trade fixtures in and about the Premises and the Later Alterations (as defined in Article 18) in an amount equal to one hundred percent (100%) replacement cost value.

 

(iv)                              Flood insurance insuring Tenant’s personal property and trade fixtures in and about the Premises and the Later Alterations (as defined in Article 18) in an amount equal to one hundred percent (100%) replacement cost value or, if less, the maximum amount of coverage commercially available.

 

(v)                                 Terrorism coverage, where commercially available, is recommended.

 

B.                                    In no event shall Landlord be responsible for Tenant’s business interruption exposure or loss which shall be the Tenant’s sole responsibility.  The foregoing shall not, however, affect any provisions for rent abatement which are specifically set forth in the Lease.

 

Exhibit 3-1

 

C.                                    All insurance required of Tenant (and Tenant’s contractors) shall be primary and non-contributory and maintained under valid and enforceable policies, for the full limits and coverage terms required herein.  To the extent such a provision is then available from Tenant’s insurer, such insurance shall provide that it shall not be canceled or modified without at least thirty (30) days’ prior written notice to Tenant and Landlord.  On or before the time Tenant and/or its contractors enter the Premises in accordance with Articles 4 and 12 of this Lease and thereafter not less than fifteen (15) days prior to the expiration date of each expiring policy, copies of the declaration pages of the policies required herein, or certificates of insurance evidencing insurance coverage required herein and setting forth in full the provisions thereof and issued by such insurers, in either case together with evidence satisfactory to Landlord of the payment of all premiums for such policies, shall be delivered by Tenant to Landlord, and certificates as aforesaid of such policies shall, upon request of Landlord, be delivered by Tenant to the holder of any mortgage affecting the Premises.  Upon written request from Landlord, full copies of policies shall be made available.

 

D.                                    Landlord may require, from time to time additional insurance coverages and limits as may be reasonable and customary for similar first-class office buildings in the City or Town wherein the Building is located.

 

E.                                     In the event Tenant subleases all or any part of the Premises, Tenant shall require its subtenant(s) to also carry and maintain the same insurance coverage terms and limits as required herein of Tenant.

 

2.                                      TENANT CONTRACTOR INSURANCE

 

A.                                    Tenant shall cause contractors employed by Tenant to carry:

 

(i)                                     Worker’s Compensation Insurance in compliance with statutory requirements, and Employer’s Liability Insurance, as hereinafter defined,

 

(ii)                                  Automobile Liability Insurance, and

 

(iii)                               Commercial General Liability and Umbrella Liability Insurance covering such contractors on or about the Premises in the amount stated in Section 1.A. above or in such other reasonable amount as Landlord shall require.

 

B.                                    Tenant shall submit, or shall cause such contractors employed by Tenant to submit, certificates evidencing such coverage to Landlord prior to the commencement of any Alterations in or to the Premises and at least 15 days prior to any policy renewals.

 

C.                                    All insurance carried by Tenant’s Contractors shall be primary and non-contributory and Tenant shall cause each of Tenant’s contractors to require and

 

Exhibit 3-2

 

maintain the foregoing insurance requirements of its subcontractors and sub-sub contractors at all tiers.

 

3.                                      LANDLORD INSURANCE

 

During the entire Term of this Lease, and adjusting insurance coverages to reflect current values from time to time, Landlord shall keep the Building (excluding Later Alterations, as defined in Article 18, and any personal property or trade fixtures belonging to Tenant or those claiming by, through or under Tenant) insured against loss or damage caused by any peril covered under fire, extended coverage and all risk insurance in an amount equal to one hundred percent (100%) replacement cost value above foundation walls.

 

4.                                      DEFINITIONS

 

A.                                    Commercial General Liability Insurance:  commercial general liability insurance including coverage for bodily injury (inclusive of but not limited to coverage for death, and mental anguish), property damage, premises operations, personal & advertising injury, independent contractors, products and completed operations, and contractual liability coverages Such policy shall provide coverage on an occurrence form and be endorsed to have the General Aggregate set forth above apply on a per location basis, and the deductibles and/or self-insured retentions thereunder shall be commercially reasonable.  The Contractual General Liability Insurance shall include coverage sufficient to meet Tenant’s indemnity obligations in this Lease to the extent they are insurable.  Landlord, Landlord’s managing agent and any other parties requested by Landlord from time to time in writing shall each be added as an additional insured (using form CG2010(11/85) or equivalent, or another form reasonably approved by Landlord in writing) on a primary non-contributory basis on the Commercial General Liability Insurance policy.

 

B.                                    Umbrella/Excess Liability Insurance:  umbrella/excess liability insurance on a follow form basis with a per occurrence and annual aggregate limit of the Umbrella Limit set forth above per location.  Coverage shall be excess of Commercial General Liability Insurance (including products and completed operations coverage), Automobile Liability Insurance (if applicable) and Employer’s Liability Insurance (if applicable) with coverage being concurrent with and not more restrictive than the underlying insurance policies and shall include the same additional insured provisions as the Commercial General Liability Insurance, and the deductibles and/or self-insured retentions thereunder shall be commercially reasonable.

 

C.                                    Property Insurance:  property insurance against loss or damage caused by any peril covered under an all risk insurance policy or its equivalent.  The Property Insurance policy shall include coverage for business interruption including extra expense to insure Tenant’s ongoing business operations at Premises should the Tenant be unable to continue operations due to an insurable event.  Tenant is also responsible for any and all boiler & machinery/machinery and equipment

 

Exhibit 3-3

 

insurance relating to its own equipment, and such Property Insurance shall include such coverage.  Such Property Insurance shall insure the interests of both Landlord and Tenant as their respective interests may appear from time to time and shall name Landlord as an insured ATIMA, and the deductibles and/or self-insured retentions thereunder shall be commercially reasonable.  The proceeds of such Property Insurance shall first be used for the replacement or restoration of such personal property or trade fixtures and the Later Alterations until such restoration or replacement is complete and then to mitigate business interruption loss and extra expense.  Such insurance shall include waivers of subrogation (as included in Article 19).

 

D.                                    Employer’s Liability Insurance:  employer’s liability insurance in the amount of $500,000 each accident for bodily injury by accident, $500,000 each employee for bodily injury by disease, and $500,000 policy limit for bodily injury by disease, or such other amount as may be required by the Umbrella/Excess Liability Insurance to effect umbrella coverage.

 

Exhibit 3-4

 

EXHIBIT 4

 

RULES AND REGULATIONS

 

1.                                      The sidewalks, entrances, passages, courts, elevators, vestibules, stairways, corridors or halls or other parts of the Building not occupied by any tenant shall not be obstructed or encumbered by any tenant or used for any purpose other than ingress and egress to and from the Premises.  Landlord shall have the right to control and operate the public portions of the Building, and the facilities furnished for the common use of the tenants, in such a manner as Landlord deems best for the benefit of the tenants generally.  No tenant shall permit the visit to its premises of persons in such numbers or under such conditions as to interfere with the use and enjoyment by other tenants of the entrances, corridors, elevators and other public portions or facilities of the Building.

 

2.                                      No awnings or other projections shall be attached to the outside walls of the Building without the prior written consent of Landlord.  No drapes, blinds, shades, or screens shall be attached to or hung in, or used in connection with any window or door of the Premises, without the prior written consent of Landlord.  Such awnings, projections, curtains, blinds, shades, screens or other fixtures must be of a quality, type, design and color, and attached in the manner approved by Landlord.  Drapes installed by the tenant for their use must be cleaned by the tenant.  Landlord shall have the right to require Tenant to remove, in Landlord’s reasonable discretion, any items placed on the windowsills of the Premises that are visible from outside of the Building.

 

3.                                      No sign, advertisement, notice or other lettering shall be exhibited, inscribed, painted or affixed by tenant on any part of the outside or inside of the Premises or Building without the prior written consent of Landlord.  In the event of the violation of the foregoing by any tenant, Landlord may remove same without any liability, and may charge the expense incurred by such removal to the tenant or tenants violating this rule.  Interior signs on doors and directory tablet shall be inscribed, painted or affixed for each tenant by Landlord at the expense of such tenant, and shall be of a size, color and style acceptable to Landlord.

 

4.                                      No showcases or other articles shall be put in front of or affixed to any part of the exterior of the Building, nor placed in the halls, corridors or vestibules without the prior written consent of Landlord.

 

5.                                      The water and wash closets and other plumbing fixtures shall not be used for any purposes other than those for which they were constructed, and no sweepings, rubbish, rags or other substances shall be thrown therein.  All damages resulting from any misuse of the fixtures shall be borne by the tenant who, or whose servants, employees, agents, visitors or licensees, shall have caused the same.

 

6.                                      There shall be no marking, painting, drilling into or in any way defacing any part of the Premises or the Building.  No boring, cutting or stringing of wires shall be permitted.  Tenant shall not construct, maintain, use or operate within the Premises or elsewhere within or on the outside of the Building, any electrical device, wiring or apparatus in connection with a loud speaker system or other sound system.

 

Exhibit 4-1

 

7.                                      No vehicles or animals, birds or pets of any kind (other than animals providing assistance to persons with disabilities) shall be brought into or kept in or about the Premises, and no cooking shall cause or permit any unusual or objectionable odors to be produced upon or emanate from the Premises.  Tenant shall have the right to use the freight elevator to transport bicycles to the Premises.

 

8.                                      The Premises shall not be used for manufacturing, for the storage of merchandise, or for the sale of merchandise, goods or property of any kind at auction.

 

9.                                      No tenant shall make, or permit to be made, any unseemly or disturbing noises or disturb or interfere with occupants of this or neighboring buildings or premises of those having business with them whether by the use of any musical instrument, radio, talking machine, unmusical noise, whistling, singing, or in any other way.  No tenant shall throw anything out of the doors or windows or down the corridors or stairs.

 

10.                               No inflammable, combustible or explosive fluid, chemical or substance shall be brought or kept upon the Premises.

 

11.                               No additional locks or bolts of any kind shall be placed upon any of the doors, or windows by any tenant, nor shall any changes be made in existing locks or the mechanism thereof.  The doors leading to the corridors or main halls shall be kept closed during Business Hours except as they may be used for ingress or egress.  Each tenant shall, upon the termination of its tenancy, restore to Landlord all keys to stores, offices, storage, and toilet rooms either furnished to or otherwise procured by such tenant, and in the event of the loss of any keys, so furnished, such tenant shall pay to Landlord the cost thereof.

 

12.                               All removals, or the carrying in or out of any safes, freight, furniture or bulky matter of any description must take place during the hours which Landlord or its Agent may determine from time to time.  Landlord reserves the right to inspect all freight to be brought into the Building and to exclude from the Building all freight which violates any of these Rules and Regulations or this Lease of which these Rules and Regulations are a part.

 

13.                               Intentionally Omitted.

 

14.                               Any person employed by any tenant to do janitorial work within the Premises must obtain Landlord’s consent and such person shall, while in the Building and outside of said Premises, comply with all instructions issued by the Superintendent of the Building.  No tenant shall engage or pay any employees on the Premises, except those actually working for such tenant on said Premises.

 

15.                               Landlord reserves the right to exclude from the Building at all times any person who is not known or does not properly identify himself to the building management or watchman on duty.  Landlord may at his option require all persons admitted to or leaving the Building between the hours of 6:00 p.m. and 8:00 a.m., Monday through Saturday, Sundays and legal holidays to register.  Each tenant shall be responsible for all persons for whom it authorizes entry into or exit out of the Building, and shall be liable to Landlord for all acts of such persons.

 

Exhibit 4-2

 

16.                               The Premises shall not be used for lodging or sleeping or for any immoral or illegal purpose.

 

17.                               Each tenant, before closing and leaving the premises at any time, shall see that all windows are closed and all lights turned off.

 

18.                               The requirements of tenant will be attended to only upon application at the office of the Building.  Employees shall not perform any work or do anything outside of the regular duties, unless under special instruction from the management of the Building.

 

19.                               Canvassing, soliciting and peddling in the Building are prohibited, and each tenant shall cooperate to prevent the same.

 

20.                               Only hand trucks equipped with rubber tires and side guards may be used in the Building.

 

21.                               Access plates to under floor conduits shall be left exposed.  Where carpet is installed, carpet shall be cut around access plates.  Where tenant elects not to provide removable plates in their carpet for access into the under floor duct system, it shall be the tenant’s responsibility to pay for the removal and replacement of the carpet for any access needed into the duct system at any time in the future.

 

22.                               Mats, trash or other objects shall not be placed in the public corridors.

 

23.                               Landlord does not maintain or clean suite finishes which are non-standard, such as kitchens, bathrooms, wallpaper, special lights, etc.  However, should the need for repairs arise, Landlord will arrange for the work to be done at the tenant’s expense.

 

24.                               Landlord will furnish and install light bulbs for the building standard fluorescent or incandescent fixtures only.  For special fixtures, the tenant will stock his own bulbs, which will be installed by Landlord when so requested by the tenant.

 

25.                               Tenant shall comply with all workplace smoking Laws.  There shall be no smoking in bathrooms, elevator lobbies, elevators, and other common areas, or anywhere in the Building or the Building Garage or within the no-smoking zones outside the Building as designated by Landlord, from time to time (Tenant acknowledging that the entire Building is smoke-free).

 

26.                               Each tenant shall handle its newspapers and “office paper” in the manner required by applicable law and shall conform with any recycling plan instituted by Landlord.

 

27.                               Prior to serving alcoholic beverages in the Premise, Tenant shall obtain from Landlord a copy of Landlord’s then-current policies regarding alcoholic beverages, and shall comply therewith (including, without limitation, compliance with the insurance requirements set forth therein).

 

28.                               Violation of these rules and regulations, or any amendments thereto, shall be a default under this Lease, entitling Landlord to all remedies therefor.

 

Exhibit 4-3

 

29.                               Landlord may upon request by any tenant, waive the compliance by such tenant of any of the foregoing rules and regulations, provided that (i) no waiver shall be effective unless signed by Landlord or Landlord’s authorized Agent, (ii) any such waiver shall not relieve such tenant from the obligation to comply with such rule or regulation in the future unless expressly consented to by Landlord, and (iii) no waiver granted to any tenant shall relieve any other tenant from the obligation of complying with the foregoing rules and regulations unless such other tenant has received a similar waiver in writing from Landlord.

 

30.                               In the event of any conflict between any provisions in this Lease and these rules and regulations, the provisions set forth in this Lease shall control.

 

Exhibit 4-4

 

EXHIBIT 5

 

FORM OF COMMENCEMENT DATE AGREEMENT

 

Reference is made to that certain Lease by and between [[Landlord name]], a                         , Landlord, and                         , a                         , Tenant, and dated             .

 

Landlord and Tenant hereby confirm and agree that:

 

1.                                      The Commencement Date under this Lease is             .

 

2.                                      The Rent Commencement Date under this Lease is             .

 

3.                                      The Expiration Date under this Lease is             .

 

4.                                      With respect to the initial build out of the Premises, Tenant shall be required to remove the following items at the expiration or earlier termination of the Lease: all telecommunication, computer, and other cabling installed by or for Tenant in the Premises or elsewhere in the Building, and                            .  Tenant’s obligations to remove any further Alterations to the Premises shall be governed by the provisions of the Lease, including, without limitation, Articles 12 and 22 thereof.

 

This Commencement Date Agreement is executed as of               , 201  .

 

	
 
    	
LANDLORD:
    
	
 
    	
 
    
	
 
    	
                                                                          ,
    
	
 
    	
a
    
	
 
    	
 
    
	
 
    	
By:
    	
 
    
	
 
    	
 
    	
Name:
    	
 
    
	
 
    	
 
    	
Title:
    	
 
    
	
 
    	
 
    
	
 
    	
TENANT:
    
	
 
    	
 
    
	
 
    	
                                                                          ,
    
	
 
    	
a
    
	
 
    	
 
    
	
 
    	
By:
    	
 
    
	
 
    	
 
    	
Name:
    	
 
    
	
 
    	
 
    	
Title:
    	
 
    
	
 
    	
 
    
	
 
    	
 
    	
Hereunto Duly Authorized
    
					

 

Exhibit 5-1

 

EXHIBIT 6

 

FORM OF LETTER OF CREDIT

 

BENEFICIARY:                                                                                                                                                                                                                                                     ISSUANCE DATE:

 

, 201

 

[[LANDLORD]]

 

IRREVOCABLE STANDBY LETTER OF CREDIT NO.

 

ACCOUNTEE/APPLICANT:                                                                                                                                                                                   MAXIMUM/AGGREGATE

CREDIT AMOUNT:

$

USD:

 

LADIES AND GENTLEMEN:

 

We hereby establish our irrevocable letter of credit in your favor for account of the applicant up to an aggregate amount not to exceed $             US Dollars available by your draft(s) drawn on ourselves at sight accompanied by:

 

Your statement, signed by a purportedly authorized officer/official certifying that the Beneficiary is entitled to draw upon this Letter of Credit (in the amount of the draft submitted herewith) pursuant to this Lease (the “Lease”) dated                                                    by and between                   , as Landlord, and                   , as Tenant.

 

Draft(s) must indicate name and issuing bank and credit number and must be presented at this office.

 

You shall have the right to make partial draws against this Letter of Credit from time to time.

 

Funds will be made available to Beneficiary on the same day as a sight draft is presented by Beneficiary.

 

This Letter of Credit is transferable without charge to you at any time and from time to time and may be transferred in its entirety only.  In the event of a transfer, we reserve the right to require reasonable evidence of such transfer as a condition to any draw hereunder.  Any such transfer is to be effective at our counters and is contingent upon:

 

A.                                    The satisfactory completion of our transfer form attached hereto; and

 

B.                                    The return of the original of this Letter of Credit and all amendments thereto for endorsement thereon by us to the transferee.

 

Exhibit 6-1

 

This Letter of Credit shall expire at our office on             , 201   (the “Stated Expiration Date”).  It is a condition of this Letter of Credit that the Stated Expiration Date shall be deemed automatically extended without amendment for successive one (1) year periods from such Stated Expiration Date, unless at least forty-five (45) days prior to such Stated Expiration Date (or any anniversary thereof) we shall notify you and the Accountee/Applicant in writing by certified mail (return receipt) that we elect not to consider this Letter of Credit extended for any such additional one (1) year period.

 

We expressly agree and acknowledge that we shall not refuse to pay on any draw permitted under this Letter of Credit in the event that the Accountee/Applicant opposes, contests or otherwise attempts to interfere with any attempt by Landlord to draw down from said Letter of Credit.

 

Except as otherwise expressly stated herein, this Letter of Credit is subject to the “Uniform Customs and Practice for Documentary Credits, International Chamber of Commerce, Publication No. 500 (1993 Revision)”.

 

Exhibit 6-2

 

EXHIBIT 7

 

DEFINITION OF SHELL CONDITION

 

·                                          All partitions and ceilings removed up to the perimeter window wall and building core.  This does not include restroom areas.

 

·                                          All column enclosures to remain where practical

 

·                                          All non-base building HVAC units to be removed with associated electrical and plumbing removed back to source

 

·                                          All hangers removed from upper decking

 

·                                          All flooring (carpet & vinyl) removed to concrete decking

 

·                                          All electrical and tel/data wiring removed back to source

 

·                                          All plumbing supply and waste lines removed back to source

 

·                                          All sprinkler heads to be turned to face up toward ceiling deck (when required)

 

·                                          Fire alarm system devises will be removed with the exception of required core and elevator lobby devices

 

·                                          Temporary lighting installed

 

Exhibit 7-1Exhibit 10.8

 

NOTICE OF LEASE

 

	
LANDLORD:
    	
 
    	
55 Cambridge Parkway, LLC, a Delaware limited   liability company
    
	
TENANT:
    	
 
    	
CarGurus, Inc. a Delaware corporation
    
	
DATE OF EXECUTION:
    	
 
    	
March 11, 2016
    
	
DEMISED PREMISES:
    	
 
    	
Approximately 30,534 rentable square feet,   consisting of approximately 15,267 rentable square feet of space on the fifth   (5th) floor of the West Wing of the Building (the “Fifth   Floor Premises”), and approximately 15,267 rentable square feet of   space on the sixth (e) floor of the West Wing of the Building (the “Sixth Floor Premises”). The Premises are located in the   building commonly known as 55 Cambridge Parkway (the “Building”),   having a street address of 55 Cambridge Parkway, Cambridge, MA.
    
	
TERM
    AND
    COMMENCEMENT DATE:
    	
 
    	
Commencing on the date on which Landlord delivers   the Premises to Tenant with the “Shell Condition Work” (as defined in the   Lease) substantially completed and terminating November 30, 2022 (the “Original Term”) subject to extension as provided herein.
    
	
RIGHTS OF
    EXTENSION:
    	
 
    	
So long as there shall not then be an Event of   Default under the Lease, Tenant may extend this Lease for one   (I) additional period of five (5) years (the “Extension Term”), by   delivering written notice of the exercise thereof to Landlord not later than   twelve (12) months (nor earlier than eighteen (18) months) before the   expiration of the Original Term.
    
	
RIGHTS OF FIRST OFFER
    	
 
    	
Subject to the terms and provisions of the Lease,   during the Term of the Lease, Tenant has certain rights of first offer to   lease: (a) any space that is contiguous to the Premises on the fifth   (5th) floor of the East Wing of the Building (the “5th Floor   East Wing Space”) as approximately shown on Exhibit J-1   attached to the Lease; (b) any space that is contiguous to the Premises   on the sixth (6th) floor of the East Wing of the Building (the “6th Floor East Wing Space”) as approximately shown on Exhibit J-2 attached to the   Lease; and (c) any space that is contiguous to the Premises on the   seventh (7th) floor of the West Wing of the Building (the “7th Floor West Wing Space”) as approximately shown on Exhibit J-3 attached to the   Lease.
    

 

[SIGNATURE PAGE FOLLOWS]

 

 

Executed as of the 11th day of March, 2016.

 

	
 
    	
LANDLORD:
    
	
 
    	
 
    
	
 
    	
55 CAMBRIDGE PARKWAY, LLC,
    
	
 
    	
a Delaware limited   liability company
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
Invesco ICRE   Massachusetts REIT Holdings, LLC,
    
	
 
    	
 
    	
its sole member
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
By: 
    	
/s/ Kevin Johnson
    
	
 
    	
 
    	
 
    	
Name: 
    	
Kevin Johnson
    
	
 
    	
 
    	
 
    	
Title: 
    	
Vice President
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
Execution   Date: As of March 28, 2016
    
	
 
    	
 
    	
 
    
	
 
    	
TENANT:
    
	
 
    	
 
    
	
 
    	
CARGURUS, INC.
    
	
 
    	
a Delaware corporation
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/ E. Langley Steinert
    
	
 
    	
Name: 
    	
E. Langley Steinert
    
	
 
    	
Title: 
    	
CEO
    
	
 
    	
 
    	
 
    
	
 
    	
Execution Date: As of   March 11, 2016
    
						

 

STATE OF TEXAS

 

Dallas County, Texas

 

On this 28 of March, 2016, before me, the undersigned notary public, personally appeared Kevin Johnson as Vice President of Invesco ICRE Massachusetts REIT Holdings, LLC, in its capacity as sole member of 55 Cambridge Parkway, LLC, proved to me through satisfactory evidence of identification, which was a Texas driver’s license, to be the person whose name is signed on the preceding or attached document and acknowledged to me that he/she signed it voluntarily for its stated purpose.

 

	
 
    	
/s/ Tara L. Hall
    
	
 
    	
Notary Public
    
	
 
    	
My commission expires 10/28/2019
    

 

 

COMMONWEALTH OF MASSACHUSETTS

 

SS

 

On this  11th day of March, 2016, before me, the undersigned notary public, personally appeared  E. Langley Steinert as CEO of CarGurus, Inc. proved to me through satisfactory evidence of identification, which was a Massachusetts driver’s license, to be the person whose name is signed on the preceding or attached document and acknowledged to me that he/she signed it voluntarily for its stated purpose.

 

	
 
    	
/s/ Allison R. Beakley
    
	
 
    	
Notary Public
    
	
 
    	
My commission expires 5/5/2017
    

 

 

OFFICE LEASE AGREEMENT

 

FOR SPACE AT

 

55 CAMBRIDGE PARKWAY, CAMBRIDGE, MA

 

BETWEEN

 

55 CAMBRIDGE PARKWAY, LLC,
 a Delaware limited liability company

 

AS LANDLORD

 

AND

 

CARGURUS, INC.

a Delaware corporation

 

AS TENANT

 

DATED

 

As of March 11, 2016

 

 

TABLE OF CONTENTS

 

	
 
    	
 
    	
Page
    
	
 
    	
 
    	
 
    
	
1.
    	
Definitions and Basic   Provisions
    	
1
    
	
 
    	
 
    	
 
    
	
2.
    	
Lease Grant
    	
1
    
	
 
    	
 
    	
 
    
	
3.
    	
Tender of Possession
    	
1
    
	
 
    	
 
    	
 
    
	
4.
    	
Rent
    	
2
    
	
 
    	
 
    	
 
    
	
5.
    	
Delinquent Payment; Handling   Charges
    	
2
    
	
 
    	
 
    	
 
    
	
6.
    	
Security Deposit
    	
2
    
	
 
    	
 
    	
 
    
	
7.
    	
Services; Utilities;   Common Areas
    	
4
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
(a)
    	
Services
    	
4
    
	
 
    	
(b)
    	
Excess Utility Use
    	
4
    
	
 
    	
(c)
    	
Common Areas
    	
6
    
	
 
    	
(d)
    	
Recycling and Waste   Management
    	
6
    
	
 
    	
(e)
    	
Sustainability   Initiative
    	
7
    
	
 
    	
 
    	
 
    
	
8.
    	
Alterations; Repairs;   Maintenance; Signs
    	
7
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
(a)
    	
Alterations
    	
7
    
	
 
    	
(b)
    	
Repairs; Maintenance
    	
8
    
	
 
    	
(c)
    	
Performance of Work
    	
10
    
	
 
    	
(d)
    	
Mechanic’s Liens
    	
10
    
	
 
    	
(e)
    	
Signs
    	
11
    
	
 
    	
 
    	
 
    	
 
    
	
9.
    	
Use
    	
11
    
	
 
    	
 
    	
 
    
	
10.
    	
Assignment and   Subletting
    	
12
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
(a)
    	
Transfers
    	
12
    
	
 
    	
(b)
    	
Consent Standards
    	
12
    
	
 
    	
(c)
    	
Request for Consent
    	
13
    
	
 
    	
(d)
    	
Conditions to Consent
    	
13
    
	
 
    	
(e)
    	
Attornment by   Subtenants
    	
14
    
	
 
    	
(f)
    	
Cancellation
    	
14
    
	
 
    	
(g)
    	
Additional Compensation
    	
14
    
	
 
    	
 
    	
 
    
	
11.
    	
Insurance; Waivers;   Subrogation; Indemnity
    	
14
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
(a)
    	
Tenant’s Insurance
    	
14
    
	
 
    	
(b)
    	
Landlord’s Insurance
    	
16
    
	
 
    	
(c)
    	
Waiver of Subrogation
    	
17
    
	
 
    	
(d)
    	
Indemnity
    	
17
    
	
 
    	
 
    	
 
    
	
12.
    	
Subordination;   Attornment; Notice to Landlord’s Mortgagee
    	
17
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
(a)
    	
Subordination
    	
17
    
	
 
    	
(b)
    	
Attornment
    	
17
    
	
 
    	
(c)
    	
Notice to Landlord’s   Mortgagee
    	
17
    
	
 
    	
(d)
    	
Landlord’s Mortgagee’s Protection   Provisions
    	
18
    
	
 
    	
 
    	
 
    
	
13.
    	
Rules and   Regulations
    	
18
    
	
 
    	
 
    	
 
    
	
14.
    	
Condemnation
    	
18
    

 

i

 

TABLE OF CONTENTS

(continued)

 

	
 
    	
 
    	
Page
    
	
 
    	
 
    	
 
    
	
 
    	
(a)
    	
Total Taking
    	
18
    
	
 
    	
(b)
    	
Partial Taking -   Tenant’s Rights
    	
18
    
	
 
    	
(c)
    	
Partial Taking -   Landlord’s Rights
    	
18
    
	
 
    	
(d)
    	
Award
    	
18
    
	
 
    	
 
    	
 
    
	
15.
    	
Fire or Other Casualty
    	
18
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
(a)
    	
Repair Estimate
    	
18
    
	
 
    	
(b)
    	
Tenant’s Rights
    	
19
    
	
 
    	
(c)
    	
Landlord’s Rights
    	
19
    
	
 
    	
(d)
    	
Repair Obligation
    	
19
    
	
 
    	
(e)
    	
Abatement of Rent
    	
19
    
	
 
    	
 
    	
 
    
	
16.
    	
Personal Property Taxes
    	
19
    
	
 
    	
 
    	
 
    
	
17.
    	
Events of Default
    	
19
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
(a)
    	
Payment Default
    	
20
    
	
 
    	
(b)
    	
Abandonment
    	
20
    
	
 
    	
(c)
    	
Estoppel/Financial   Statements/Commencement Date Letter
    	
20
    
	
 
    	
(d)
    	
Insurance
    	
20
    
	
 
    	
(e)
    	
Mechanic’s Liens
    	
20
    
	
 
    	
(f)
    	
Other Defaults
    	
20
    
	
 
    	
(g)
    	
Insolvency
    	
20
    
	
 
    	
 
    	
 
    
	
18.
    	
Remedies
    	
20
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
(a)
    	
Termination of Lease
    	
20
    
	
 
    	
(b)
    	
Termination of   Possession
    	
21
    
	
 
    	
(c)
    	
Perform Acts on Behalf   of Tenant
    	
21
    
	
 
    	
 
    	
 
    
	
19.
    	
Payment by Tenant;   Non-Waiver; Cumulative Remedies
    	
21
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
(a)
    	
Payment by Tenant
    	
21
    
	
 
    	
(b)
    	
No Waiver
    	
22
    
	
 
    	
(c)
    	
Cumulative Remedies
    	
22
    
	
 
    	
(d)
    	
No Designation
    	
22
    
	
 
    	
(e)
    	
No Counterclaim
    	
22
    
	
 
    	
 
    	
 
    
	
20.
    	
Landlord Default
    	
22
    
	
 
    	
 
    	
 
    
	
21.
    	
Surrender of Premises
    	
22
    
	
 
    	
 
    	
 
    
	
22.
    	
Holding Over
    	
23
    
	
 
    	
 
    	
 
    
	
23.
    	
Certain Rights Reserved   by Landlord
    	
23
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
(a)
    	
Building Operations
    	
23
    
	
 
    	
(b)
    	
Security
    	
23
    
	
 
    	
(c)
    	
Repairs and Maintenance
    	
23
    
	
 
    	
(d)
    	
Prospective Purchasers   and Lenders
    	
23
    
	
 
    	
(e)
    	
Prospective Tenants
    	
23
    
	
 
    	
 
    	
 
    
	
24.
    	
Intentionally Omitted
    	
24
    
	
 
    	
 
    	
 
    
	
25.
    	
Hazardous Materials
    	
24
    

 

ii

 

TABLE OF CONTENTS

(continued)

 

	
 
    	
 
    	
Page
    
	
 
    	
 
    	
 
    
	
26.
    	
Miscellaneous.
    	
25
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
(a)
    	
Landlord Transfer
    	
25
    
	
 
    	
(b)
    	
Landlord’s Liability
    	
25
    
	
 
    	
(c)
    	
Force Majeure
    	
26
    
	
 
    	
(d)
    	
Brokerage
    	
26
    
	
 
    	
(e)
    	
Estoppel Certificates
    	
26
    
	
 
    	
(f)
    	
Notices
    	
26
    
	
 
    	
(g)
    	
Separability
    	
26
    
	
 
    	
(h)
    	
Amendments; Binding   Effect
    	
26
    
	
 
    	
(i)
    	
Quiet Enjoyment
    	
27
    
	
 
    	
(j)
    	
No Merger
    	
27
    
	
 
    	
(k)
    	
No Offer
    	
27
    
	
 
    	
(l)
    	
Entire Agreement
    	
27
    
	
 
    	
(m)
    	
Entire Agreement
    	
27
    
	
 
    	
(n)
    	
Governing Law
    	
27
    
	
 
    	
(o)
    	
Recording
    	
27
    
	
 
    	
(p)
    	
Joint and Several   Liability
    	
27
    
	
 
    	
(q)
    	
Financial Reports
    	
27
    
	
 
    	
(r)
    	
Landlord’s Fees
    	
27
    
	
 
    	
(s)
    	
Telecommunications
    	
27
    
	
 
    	
(t)
    	
Representations and   Warranties
    	
28
    
	
 
    	
(u)
    	
Confidentiality
    	
28
    
	
 
    	
(v)
    	
Authority
    	
28
    
	
 
    	
(w)
    	
Adjacent Excavation
    	
28
    
	
 
    	
(x)
    	
No Reliance
    	
29
    
	
 
    	
(y)
    	
List of Exhibits
    	
29
    
	
 
    	
 
    	
 
    
	
27.
    	
Other Provisions
    	
30
    

 

iii

 

BASIC LEASE INFORMATION

 

This Basic Lease Information is attached to and incorporated by reference to an Office Lease Agreement between Landlord and Tenant, as defined below.

 

	
Lease Date:
    	
 
    	
Dated as of March 11, 2016
    
	
 
    	
 
    	
 
    
	
Landlord:
    	
 
    	
55 Cambridge Parkway, LLC, a Delaware limited   liability company
    
	
 
    	
 
    	
 
    
	
Tenant:
    	
 
    	
CarGurus, Inc., a Delaware corporation
    
	
 
    	
 
    	
 
    
	
Premises:
    	
 
    	
Approximately 30,534 rentable square feet,   consisting of approximately 15,267 rentable square feet of space on the fifth   (5th) floor of the West Wing of the Building (the “Fifth   Floor Premises”), and approximately 15,267 rentable square feet of   space on the sixth (661) floor of die West Wing of the Building (the “Sixth Floor Premises”). The Premises are located in the   building commonly known as 55 Cambridge Parkway (die “Building”),   having a street address of 55 Cambridge Parkway, Cambridge, MA. The Premises   are outlined on the plan attached to the Lease as Exhibit A.   The land on which the Building is located (the “Land”)   is described on Exhibit B.   The term “Project” shall collectively refer to the Building, the Land and the   driveways, parking facilities, and similar improvements and easements   associated with the foregoing or the operation thereof, including without   limitation die Common Areas (as defined in Section 7(c)).
    
	
 
    	
 
    	
 
    
	
Original Term:
    	
 
    	
The period beginning on the Commencement Date and   ending at 5:00 p.m. local time on November 30, 2022.
    
	
 
    	
 
    	
 
    
	
Commencement Date:
    	
 
    	
The date on which Landlord delivers the Premises to   Tenant with the “Shell Condition Work” (as such term is defined herein)   substantially completed.
    
	
 
    	
 
    	
 
    
	
Base Rent Commencement Date:
    	
 
    	
Sixth Floor Premises: September 1, 2016 (the “Sixth Floor Premises Rent Commencement Date”)

Fifth Floor Premises: November 1, 2016 (the “Fifth Floor Premises Rent Commencement Date”)
    
	
 
    	
 
    	
 
    
	
Base Rent:
    	
 
    	
Base Rent shall be payable at the following amounts   (the monthly components of which Base Rent shall be referred to herein as “Monthly Base Rent”):

 

(i)                          For   the two (2) month period commencing on the Sixth Floor Premises Rent   Commencement Date (i.e., September 1, 2016) and ending on   October 31, 2016: at the rate of $1,114,491.00 per annum ($92,874.25 per   month);

 

(ii)                       For the ten   (10) month period commencing on the Fifth Floor Premises Rent   Commencement Date (i.e., November 1, 2016) and ending on August 31,   2017: at the rate of $2,228,982.00 per annum ($185,748.50 per month);

 

(iii)                    For the   twelve (12) month period commencing on September 1, 2017 and ending on   August 31, 2018: at the rate of $2,259,516.00 per annum ($188,293.00 per   month);

 

(iv)                   For the   twelve (12) month period commencing on September 1, 2018
    

 

 

	
 
    	
 
    	
and ending on   August 31, 2019: at the rate of $2,290,050.00 per annum ($190,837.50 per   month);

 

(v)                       For the   twelve (12) month period commencing on September 1, 2019 and ending on   August 31, 2020: at the rate of $2,320,584.00 per annum ($193,382.00 per   month);

 

(vi)                    For the   twelve (12) month period commencing on September 1, 2020 and ending on   August 31, 2021: at the rate of $2,351,118.00 per annum ($195,926.50 per   month);

 

(vii)                 For the twelve   (12) month period commencing on September 1, 2021 and ending on   August 31, 2022: at the rate of $2,381,652.00 per annum ($198,471.00 per   month); and

 

(viii)              For the three   (3) month period commencing on September 1, 2022 and ending on   November 30, 2022: at the rate of $2,412,186.00 per annum ($201,015.50   per month).
    
	
 
    	
 
    	
 
    
	
Security Deposit:
    	
 
    	
$773,528.00 in the form of a Letter of Credit,   subject to reduction in accordance with Paragraph 6.
    
	
 
    	
 
    	
 
    
	
Rent:
    	
 
    	
Base Rent, Additional Rent, Taxes and Insurance   (each as defined in Exhibit C   hereto) and electricity charges and Parking Charges (as defined in Exhibit I hereto) and all   other sums that Tenant may owe to Landlord or otherwise be required to pay   under the Lease.
    
	
 
    	
 
    	
 
    
	
Permitted Use:
    	
 
    	
General office use, and for no other purpose   whatsoever.
    
	
 
    	
 
    	
 
    
	
Tenant’s Proportionate Share:
    	
 
    	
11.13%, which is the percentage obtained by dividing   (a) the number of rentable square feet in the Premises as stated above   by (b) the rental square feet in the Building at the time a respective   charge was incurred, which at the time of execution of this Lease is 274,235   rentable square feet.
    
	
 
    	
 
    	
 
    
	
Initial Liability Insurance Amount:
    	
 
    	
$5,000,000
    
	
 
    	
 
    	
 
    
	
Broker/Agent:
    	
 
    	
For Tenant: CBRE / New England
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
For Landlord: Lincoln Property Company
    
	
 
    	
 
    	
 
    
	
Tenant’s Address:
    	
 
    	
 
    	
With a copy to:
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
Two Canal Park, Suite 4

Cambridge, MA 02141

Attention: Jason Trevisan
   Telephone: 617-466-3670
    	
 
    	
Alan J. Schlesinger

Schlesinger and Buchbinder, LLP

1200 Walnut Street

Newton, MA 02461

 
    
					

 

 

	
Landlord’s Address:
    	
 
    	
For all Notices:
    	
 
    	
With a copy to:
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
c/o Lincoln Property Company

55 Cambridge Parkway

Cambridge, MA 02142
    	
 
    	
Invesco Real Estate

1166 Avenue of the Americas

New York, New York 10036
    
	
 
    	
 
    	
Attention: Baron Hartley
    	
 
    	
Attention: 
    	
Asset Manager
    
	
 
    	
 
    	
Telephone: (617) 494-9197
    	
 
    	
 
    	
55 Cambridge Parkway
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
Cambridge, MA 02142
    
	
 
    	
 
    	
 
    	
 
    	
Telephone: 
    	
(212) 278-9224
    

 

[SIGNATURES TO BASIC LEASE INFORMATION ON FOLLOWING PAGE]

 

 

The foregoing Basic Lease Information is incorporated into and made a part of the Lease identified above. If any conflict exists between any Basic Lease Information and the Lease, then the Lease shall control.

 

	
 
    	
LANDLORD:
    
	
 
    	
55 CAMBRIDGE PARKWAY, LLC,
    
	
 
    	
a Delaware limited   liability company
    
	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
Invesco ICRE   Massachusetts REIT Holdings, LLC,
    
	
 
    	
 
    	
its sole member
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
By:
    	
/s/ Kevin Johnson
    
	
 
    	
 
    	
 
    	
Name:
    	
Kevin Johnson
    
	
 
    	
 
    	
 
    	
Title:
    	
Vice President
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
TENANT:
    
	
 
    	
 
    
	
 
    	
CARGURUS, INC.
    
	
 
    	
a Delaware corporation
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/ E. Langley Steinert
    
	
 
    	
Name:
    	
E. Langley Steinert
    
	
 
    	
Title:
    	
CEO
    
	
 
    	
 
    
	
 
    	
Execution Date: As of   March 11, 2016
    
							

 

 

OFFICE LEASE AGREEMENT

 

This Office Lease Agreement (this “Lease”) is entered into as of March 11, 2016, between 55 Cambridge Parkway, LLC, a Delaware limited liability company (“Landlord”), and CarGurus, Inc., a Delaware corporation (“Tenant”).

 

1.             Definitions and Basic Provisions. The definitions and basic provisions set forth in the Basic Lease Information (the “Basic Lease Information”) executed by Landlord and Tenant contemporaneously herewith are incorporated herein by reference for all purposes. Additionally, the following terms shall have the following meanings when used in this Lease: “Affiliate” means any person or entity which, directly or indirectly, through one or more intermediaries, controls, is controlled by, or is under common control with the party in question; “Building’s Structure” means the Building’s exterior walls, roof, elevator shafts (if any), footings, foundations, structural portions of load-bearing walls, structural floors and subfloors, and structural columns and beams; “Building’s Systems” means the Premises’ and Building’s HVAC, life-safety, plumbing, electrical, and mechanical systems; “Business Day(s)” means Monday through Friday of each week, exclusive of Holidays; “Holidays” means New Year’s Day, Memorial Day, Independence Day, Labor Day, Thanksgiving Day, Christmas Day, and any other nationally, regionally or state recognized holiday observed by Landlord at the Building; “Laws” means all federal, state, and local laws, ordinances, rules and regulations, all court orders, governmental directives, and governmental orders and all interpretations of the foregoing, and all restrictive covenants affecting the Project, and “Law” shall mean any of the foregoing; “Normal Business Hours” means 8 a.m. to 6 p.m. on Business Days and 8 a.m. to 1 p.m. on Saturdays, exclusive of Holidays; “Tenant’s Off-Premises Equipment” means any of Tenant’s equipment or other property that may be located on or about the Project (other than inside the Premises); and “Tenant Party” means any of the following persons: Tenant; any assignees claiming by, through, or under Tenant; any subtenants claiming by, through, or under Tenant; and any of their respective agents, contractors and employees.

 

2.             Lease Grant. Subject to the terms of this Lease, Landlord leases to Tenant, and Tenant leases from Landlord, the Premises (as defined in the Basic Lease Information).

 

3.             Tender of Possession. Subject to the other terms and provisions of this Lease, Landlord and Tenant presently anticipate that possession of the Premises will be tendered to Tenant in the condition required by this Lease on or about the date that is twenty (20) days from the date that both parties have executed and delivered this Lease (such 20th day shall be referred to herein as the “Estimated Delivery Date”). If Landlord is unable to tender possession of the Premises in such condition to Tenant by the Estimated Delivery Date, then: (a) the validity of this Lease shall not be affected or impaired thereby; (b) Landlord shall not be in default hereunder or be liable for damages therefor; and (c) Tenant shall accept possession of the Premises when Landlord tenders possession thereof to Tenant, provided that for each day of delay in Landlord’s tender of possession beyond the tenth (le) day after the Estimated Delivery Date, each Base Rent Commencement Date shall be extended for one (1) day. Except for the work described in Exhibit D hereto (the “Shell Condition Work”), Tenant hereby acknowledges and agrees that it shall accept the Premises in their “AS-IS” condition, and Landlord shall have no obligation to perform any work therein (including, without limitation, the construction of any tenant finish-work or other improvements therein), and shall not be obligated to reimburse Tenant or provide an allowance for any costs related to the demolition or construction of improvements therein other than the Landlord’s Allowance, the Landlord’s Space Planning Allowance and, if so elected by Tenant, the Additional Landlord Allowance (as such terms are defined in Exhibit E hereto) pursuant to the terms and provisions of Exhibit E hereto. Landlord shall use reasonable efforts to substantially complete the Shell Condition Work on or before the Estimated Delivery Date, subject to the conditions of this Section 3. By occupying the Premises, Tenant shall be deemed to have accepted the Premises in their condition as of the date of such occupancy except as to items noted by Tenant within fifteen (15) days. Prior to occupying the

 

 

Premises, Tenant shall execute and deliver to Landlord a letter substantially in the form of Exhibit G hereto confirming: (1) the Commencement Date (as defined in the Basic Lease Information), the applicable Base Rent Commencement Dates (as defined in the Basic Lease Information) and the expiration date of the Original Term (as defined in the Basic Lease Information); (2) that Tenant has accepted the Premises; and (3) that subject to Tenant’s right to note deficiencies within fifteen (15) days, Landlord has performed all of its obligations with respect to the Premises; however, the failure of the parties to execute such letter shall not defer the Commencement Date, the applicable Base Rent Commencement Date or otherwise invalidate this Lease. Tenant’s failure to execute such document within ten (10) days of receipt thereof from Landlord shall be an Event of Default (as defined in Section 17) under this Lease if such execution is warranted by the facts and shall be deemed to constitute Tenant’s agreement to the contents of such document. Occupancy of the Premises by Tenant prior to the Commencement Date shall be subject to all of the provisions of this Lease excepting only those requiring the payment of Rent.

 

4.             Rent. Tenant shall timely pay to Landlord Rent (as defined in the Basic Lease Information), including the amounts set forth in Exhibit C hereto, without notice, demand, deduction or set-off (except as otherwise expressly provided herein), by good and sufficient check drawn on a national banking association at Landlord’s address provided for in this Lease or as otherwise specified by Landlord and shall be accompanied by all applicable state and local sales or use taxes, if applicable. Unless otherwise prohibited by law, Tenant shall make Rent payments to Landlord via Automated Clearing House payment processing approved by Landlord. Except as otherwise expressly set forth in this Lease, Tenant shall have no right to withhold or abate any payment of Base Rent, Additional Rent, Taxes, Insurance or other payment, or to set off any amount against the Base Rent, Additional Rent, Taxes, Insurance or other payment then due and payable, or to terminate this Lease, because of any breach or alleged breach by Landlord of this Lease or because of the condition of the Premises. Tenant hereby acknowledges and agrees that it has been represented by counsel of its choice and has participated fully in the negotiation of this Lease.

 

Base Rent, adjusted as herein provided, shall be payable monthly in advance beginning on the Sixth Floor Premises Rent Commencement Date. Thereafter, Base Rent shall be payable on the first (1st) day of each month beginning on the Sixth Floor Premises Rent Commencement Date. Tenant shall pay Additional Rent, Taxes and Insurance (each as defined in Exhibit C) at the same time and in the same manner as Base Rent.

 

5.             Delinquent Payment; Handling Charges. All payments required of Tenant hereunder which are past due for more than five (5) days shall bear interest from the date due until paid at the lesser of fifteen percent (15%) per annum or the maximum lawful rate of interest (such lesser amount is referred to herein as the “Default Rate”); additionally, Landlord, in addition to all other rights and remedies available to it, may charge Tenant a fee equal to five percent (5%) of a payment delinquent by more than seven (7) days to reimburse Landlord for its cost and inconvenience incurred as a consequence of Tenant’s delinquency. Any such late charge and interest payment shall be payable as Additional Rent under this Lease, shall not be considered a waiver by Landlord of any default by Tenant hereunder, and shall be payable immediately on demand. In no event, however, shall the charges permitted under this Section 5 or elsewhere in this Lease, to the extent they are considered to be interest under applicable Law, exceed the maximum lawful rate of interest.

 

6.             Security Deposit. On the date hereof, Tenant shall deliver the Security Deposit to Landlord, which Landlord shall hold, as security, for and during the Term.

 

Tenant shall deliver the Security Deposit to Landlord on the date hereof in the form of an irrevocable and unconditional letter of credit (the “Letter of Credit”) issued by and drawable upon any

 

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commercial bank, trust company, national banking association or savings and loan association satisfactory to Landlord (the “Issuing Bank”). A current list of acceptable Issuing Banks is attached to this Lease as Exhibit M. Such Letter of Credit shall (a) name Landlord as beneficiary, (b) be in the amount of the Security Deposit, (c) have a term of not less than one year, (d) permit multiple drawings, (e) be fully transferable by Landlord without the payment of any fees or charges by Landlord, and (f) otherwise be in form and content satisfactory to Landlord. If upon any transfer of the Letter of Credit, any fees or charges shall be so imposed, then such fees or charges shall be payable solely by Tenant and the Letter of Credit shall so specify. The Letter of Credit shall provide that it shall be deemed automatically renewed, without amendment, for consecutive periods of one year each thereafter during the Term unless the Issuing Bank sends a notice (the “Non-Renewal Notice”) to Landlord by certified mail, return receipt requested, not less than forty-five (45) days next preceding the then expiration date of the Letter of Credit stating that the Issuing Bank has elected not to renew the Letter of Credit. Landlord shall have the right, upon receipt of the Non-Renewal Notice, to draw the full amount of the Letter of Credit, by sight draft on the Issuing Bank, and shall thereafter hold or apply the cash proceeds of the Letter of Credit pursuant to the terms of this Section. The Issuing Bank shall agree with all drawers, endorsers and bona fide holders that drafts drawn under and in compliance with the terms of the Letter of Credit will be duly honored upon presentation to the Issuing Bank at an office location in Boston or another location acceptable to Landlord. The Letter of Credit shall be subject in all respects to the Uniform Customs and Practice for Documentary Credits (1993 revision), International Chamber of Commerce Publication No. 500.

 

If there shall be an Event of Default (as defined in Section 17), Landlord may apply or retain the whole or any part of the cash Security Deposit or may notify the Issuing Bank and thereupon receive all or a portion of the Security Deposit represented by the Letter of Credit and use, apply, or retain the whole or any part of such proceeds, as the case may be, but only to the extent required for the payment of any rent or any other sums as to which Tenant is in default including (a) any sum which Landlord may expend or may be required to expend by reason of Tenant’s default, and/or (b) any damages or deficiency to which Landlord is entitled pursuant to this Lease or applicable legal requirements, whether such damages or deficiency accrues before or after summary proceedings or other reentry by Landlord. If Landlord applies or retains any part of the Security Deposit, Tenant, upon demand, shall deposit with Landlord the amount so applied or retained so that Landlord shall have the full Security Deposit on hand at all times during the Term. If Tenant shall fully and faithfully comply with all of the terms, covenants and conditions of this Lease, die Security Deposit shall be returned to Tenant within thirty (30) days after the expiration of the Term and after delivery of possession of the Premises to Landlord in the manner required by this Lease. Tenant expressly agrees that Tenant shall have no right to apply any portion of the Security Deposit against any of Tenant’s obligations to pay rent or other sums due hereunder.

 

Upon a sale of the Land or the Building or any financing of Landlord’s interest therein, Landlord shall transfer the cash Security Deposit or the Letter of Credit, as applicable, to the vendee or lender (if required by such lender). With respect to the Letter of Credit, within five (5) days after notice of such sale or financing, Tenant, at its sole cost, shall arrange for the transfer of the Letter of Credit to the new landlord or the lender (if required by such lender), as designated by Landlord in the foregoing notice or have the Letter of Credit reissued in the name of the new landlord or the lender. Provided that such cash Security Deposit or Letter of Credit is transferred to the new landlord or lender, Tenant shall look solely to the new landlord or lender for the return of such cash Security Deposit or Letter of Credit and the provisions hereof shall apply to every transfer or assignment made of the Security Deposit to a new landlord. Tenant shall not assign or encumber or attempt to assign or encumber the cash Security Deposit or Letter of Credit and neither Landlord nor its successors or assigns shall be bound by any such action or attempted assignment, or encumbrance.

 

Provided that Tenant (i) has not been in default of any of its monetary or material non-monetary obligations under this Lease in the twelve (12) months prior to the applicable Reduction Date, as hereafter

 

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defined, and (ii) has not been in default under this Lease beyond applicable notice and cure periods at any time during the Term (collectively, “Reduction Conditions”), the Letter of Credit may be reduced as set forth below on the Reduction Date. As used herein, “Reduction Date” shall be the first day of the month following the end of the first full calendar year in the Term in which Tenant’s total annual revenue from Tenant’s sales equals or exceeds One Hundred Fifty Million and 00/100 Dollars ($150,000,00.00) for such calendar year, as evidenced by Tenant’s written financial statements prepared in accordance with GAAP, as certified by Tenant’s chief financial officer and held in confidence by Landlord in the same manner as provided for financial statements in Section 26(q). Provided that die Reduction Conditions are met on the Reduction Date, die Letter of Credit shall be reduced by $193,382.00 effective as of the Reduction Date, thereby leaving a remaining balance of $580,146.00 (the “Reduced Amount”). Tenant shall request such reduction in a written notice to Landlord within sixty (60) days after die applicable Reduction Date, and if the Reduction Conditions have been met, Landlord shall so notify Tenant, whereupon Tenant shall provide Landlord with a Substitute Letter of Credit in the Reduced Amount (in which event Landlord shall forthwith return the previously held Letter of Credit), or an amendment to the Letter of Credit reducing it to the Reduced Amount.

 

7.             Services; Utilities; Common Areas.

 

(a)           Services. Landlord covenants during the Term: (i) to furnish through Landlord’s employees or independent contractors, the Building services listed in Exhibit K, the costs for which shall be included in Operating Costs; and (ii) to furnish through Landlord’s employees or independent contractors, reasonable additional Building operation services upon reasonable advance request of Tenant at equitable rates from time to time established by Landlord to be paid by Tenant. If Tenant desires HVAC service at a time other than Normal Business Hours, then such services shall be supplied to Tenant upon the written request of Tenant delivered to Landlord before 3:00 p.m. on the Business Day preceding such extra usage, and Tenant shall pay to Landlord the cost of such services within thirty (30) days after Landlord has delivered to Tenant an invoice therefor. Notwithstanding die foregoing, as an energy conservation measure, Landlord will not run heating and air conditioning equipment serving the Premises on Saturdays unless requested by Tenant (provided that Tenant shall not be charged for such Saturday service unless it is outside of Normal Business Hours). The costs incurred by Landlord in providing HVAC service to Tenant at a time other than Normal Business Hours, shall include costs for electricity, water, sewage, water treatment, labor, metering, filtering, and maintenance reasonably allocated by Landlord to providing such service (collectively, the “Overtime HVAC Charge”). The current hourly Overtime HVAC Charge, which hourly rate is subject to change from time-to-time, is $75.00 per hour per air handler utilized for the Premises.

 

(b)           Excess Utility Use. Landlord shall not be required to furnish electrical current for equipment whose electrical energy consumption exceeds normal office usage. If Tenant’s requirements for or consumption of electricity exceed the electricity to be provided by Landlord as described in Exhibit K, Landlord shall, at Tenant’s expense, make reasonable efforts to supply such service through the then-existing feeders and risers and electrical panels serving the Building and the Premises, and Tenant shall pay to Landlord the cost of such service within thirty (30) days after Landlord has delivered to Tenant an invoice therefor. Landlord may determine the amount of such additional consumption and potential consumption by any verifiable method, including installation of a separate meter in the Premises installed, maintained, and read by Landlord, at Tenant’s expense. Tenant shall not install any electrical equipment requiring voltage in excess of Building capacity unless approved in advance by Landlord, which approval may be withheld in Landlord’s sole discretion. The use of electricity in the Premises shall not exceed the capacity of existing feeders and risers and electrical panels to or wiring in the Premises. Any risers or wiring required to meet Tenant’s excess electrical requirements shall, upon Tenant’s written request, be installed by Landlord, at Tenant’s cost, if, in Landlord’s judgment, the same are necessary and shall not cause permanent damage to the Building or the Premises,

 

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cause or create a dangerous or hazardous condition, entail excessive or unreasonable alterations, repairs, or expenses, or interfere with or disturb other tenants of the Building. If Tenant uses machines or equipment in the Premises which affect the temperature otherwise maintained by the air conditioning system or otherwise overload any utility, Landlord may install supplemental air conditioning units or other supplemental equipment in the Premises, and the cost thereof, including the cost of installation, operation, use, and maintenance, shall be paid by Tenant to Landlord within thirty (30) days after Landlord has delivered to Tenant an invoice therefor. Landlord’s obligation to furnish services under Exhibit K shall be subject to the rules and regulations of the supplier of such services and governmental rules and regulations. Landlord may, upon not less than thirty (30) days’ prior written notice to Tenant, discontinue any such service to the Premises, provided Landlord first arranges for a direct connection thereof through die supplier of such service. Tenant shall, however, be responsible for contracting with the supplier of such service and for paying all deposits for, and costs relating to, such service.

 

Landlord shall have the right to install on-site power (i.e., solar or small wind) at the Building or Project provided that no such installation shall unreasonably interfere with Tenant’s operations or machinery. Tenant agrees to cooperate with Landlord in connection with the installation and on-going operation of such on-site power. Tenant shall have no right to any renewable energy credits resulting from on-site renewable energy generation, even if Tenant uses such energy. Landlord may retain or assign such renewable energy credits in Landlord’s sole discretion.

 

(i)            Consumption Data. Tenant shall within ten (10) days of request by Landlord provide consumption data in form reasonably required by Landlord: (i) for any utility billed directly to Tenant and any subtenant or licensee; and (ii) for any submetered or separately metered utility supplied to the Premises for which Landlord is not responsible for reading. If Tenant utilizes separate services from those of Landlord, Tenant hereby consents to Landlord obtaining the information directly from such service providers and, upon ten (10) days prior written request, Tenant shall execute and deliver to Landlord and the service providers such written releases as the service providers may request evidencing Tenant’s consent to deliver the data to Landlord. Any information provided hereunder shall be held confidential except for its limited use to evidence compliance with any sustainability standards.

 

(ii)           Data Center. Tenant may not operate a Data Center within the Premises without the express written consent of Landlord. The term “Data Center” shall have the meaning set forth in the U.S. Environmental Protection Agency’s ENERGY STAR® program and is a space specifically designed and equipped to meet the needs of high-density computing equipment, such as server racks, used for data storage and processing. The space will have dedicated, uninterruptible power supplies and cooling systems. Data Center functions may include traditional enterprise services, on-demand enterprise services, high-performance computing, internet facilities and/or hosting facilities. A Data Center does not include space within the Premises utilized as a “server closet” or for a computer training area. In conjunction with the completion and operation of the Data Center approved by Landlord, Tenant shall furnish the following information to Landlord:

 

(1)           Within ten (10) days of completion, Tenant shall report to Landlord the total gross floor area (in square feet) of the Data Center measured between the principal exterior surfaces of the enclosing fixed walls and including all supporting functions dedicated for use in the Data Center, such as any raised-floor computing space, server rack aisles, storage silos, control console areas, battery rooms, mechanical rooms for cooling equipment, administrative office areas, elevator shafts, stairways, break rooms and restrooms. If Tenant alters or modifies the area of the Data Center approved by Landlord in its sole discretion, Tenant shall furnish an updated report to Landlord on the square footage within ten (10) days following completion of the alterations or modifications.

 

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(2)           Within ten (10) days following the close of each month of operation of the Data Center, monthly IT Energy Readings at the output of the Uninterruptible Power Supply (UPS), measured in total kWh utilized for die preceding month (as opposed to instantaneous power readings), failing which in addition to same being an Event of Default, Tenant shall be obligated to pay to Landlord the Late Reporting Fee.

 

(c)           Common Areas. The term “Common Area” is defined for all purposes of this Lease as that part of the Project intended for the common use of all tenants, including among other facilities, the ground floor lobby, elevator lobbies and hallways on multi-tenant floors, parking areas, private streets and alleys, landscaping, curbs, loading areas, sidewalks, malls and promenades (enclosed or otherwise), lighting facilities, drinking fountains, meeting rooms, public toilets, the parking garage (if any), and specifically including the third floor exterior roof deck and the like, but excluding: (i) space in the Building designated for rental for commercial purposes, as the same may exist from time to time; (ii) streets and alleys maintained by a public authority; and (iii) areas leased to a single-purpose user where access is restricted. In addition, although the roof(s) of the Building is not literally part of the Common Area, it will be deemed to be so included for purposes of: (x) Landlord’s ability to prescribe rules and regulations regarding same; and (y) its inclusion for purposes of Operating Costs reimbursements. Landlord reserves the right to change from time to time the dimensions and location of the Common Area, as well as the dimensions, identities, locations and types of any buildings, signs or other improvements in the Building provided that any such change shall not materially and adversely impact Tenant’s access to the Premises. For example, and without limiting the generality of the immediately preceding sentence, Landlord may from time to time substitute for any parking area other areas reasonably accessible to the tenants of the Building, which areas may be elevated, surface or underground. Tenant, and its employees and customers, and when duly authorized pursuant to the provisions of this Lease, its subtenants, licensees and concessionaires, shall have the non-exclusive right to use the Common Area (excluding roof(s)) as constituted from time to time, such use to be in common with Landlord and other tenants in the Building and other persons permitted by the Landlord to use the same, and subject to rights of governmental authorities, easements, other restrictions of record, and such reasonable rules and regulations governing use as Landlord may from time to time prescribe. For example, and without limiting the generality of Landlord’s ability to establish rules and regulations governing all aspects of the Common Area, Tenant agrees as follows:

 

(i)            Tenant shall not solicit business within the Common Area nor take any action which would interfere with the rights of other persons to use the Common Area.

 

(ii)           Landlord may temporarily close any part of the Common Area for such periods of time as may be necessary to make repairs or alterations or to prevent the public from obtaining prescriptive rights.

 

(iii)          With regard to the roof(s) of the building(s) in the Project, use of the roof(s) is reserved to Landlord, or with regard to any tenant demonstrating to Landlord’s satisfaction a need to use same, to such tenant after receiving prior written consent from Landlord.

 

(d)           Recycling and Waste Management. Tenant covenants and agrees, at its sole cost and expense: (i) to comply with all present and future laws, orders and regulations of the Federal, State, county, municipal or other governing authorities, departments, commissions, agencies and boards regarding the collection, sorting, separation, and recycling of garbage, trash, rubbish and other refuse (collectively, “trash”); (ii) to comply with Landlord’s recycling policy as part of Landlord’s Sustainability Initiative (defined below) where it may be more stringent than applicable Law; (iii) to sort and separate its trash and recycling into such categories as are provided by Law or Landlord’s Sustainability Initiative; (iv) that each separately sorted category of trash and recycling shall be placed in

 

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separate receptacles as provided and directed by Landlord; (v) that Landlord reserves the right to refuse to collect or accept from Tenant any waste that is not separated and sorted as required by Law, and to require Tenant to arrange for such collection at Tenant’s sole cost and expense, utilizing a contractor satisfactory to Landlord; and (vi) that Tenant shall pay all costs, expenses, fines, penalties or damages that may be imposed on Landlord or Tenant by reason of Tenant’s failure to comply with the provisions of this Section. Tenant shall use reasonable efforts to provide Landlord as reasonably requested and no less than annually with copy of waste manifests for all waste that leaves the Building that is within Tenant’s direct control, including but not limited to off-site paper shredding and electronic waste.

 

(e)           Sustainability Initiative. Tenant acknowledges that Landlord may elect, in Landlord’s sole discretion, to implement energy efficient and environmentally sustainable practices (collectively, the “Sustainability Initiative”) and, in furtherance of same may pursue an environmental sustainability monitoring and certification program such as Energy Star, Green Globes-CIEB, LEED, or similar programs (“Green Certification”). Tenant acknowledges that in order to further its Sustainability Initiative or pursue Green Certification, Landlord may be required to provide information, including a copy of this Lease (redacted if necessary to remove confidential information) and historical and current data regarding energy use, materials, procedures and systems operation within the Project, Building and/or Premises to the Green Building Certification Institute (“GBCI”) or to another certification body or agency, in order to demonstrate compliance with various program requirements. Tenant agrees that throughout the Term of this Lease: (i) Landlord may furnish a copy of this Lease (redacted as necessary) and other information provided from Tenant to Landlord as reasonably necessary to comply with Green Certification requirements; and (ii) Tenant shall use reasonable efforts to cooperate with Landlord and comply with the sustainability standards, so long as such cooperation does not involve a material expense to Tenant. Before closing and leaving the Premises at any time, Tenant shall use reasonable efforts to turn off all lights, electrical appliances and mechanical equipment that are not otherwise required to remain on. The use of space heaters is prohibited.

 

8.             Alterations; Repairs; Maintenance; Signs.

 

(a)           Alterations. Tenant shall not make any alterations, additions or improvements to the Premises (collectively, the “Alterations”) without the prior written consent of Landlord. Notwithstanding the foregoing, if Tenant desires to install any items that require drilling, cutting or otherwise making holes in the Premises, Landlord’s prior written consent shall be required, which consent shall not be unreasonably withheld or delayed with respect to de minimis drilling, cutting or holes. Tenant shall furnish complete plans and specifications to Landlord for its approval at the time Tenant requests Landlord’s consent to any Alterations if the desired Alterations: (i) may affect the Building’s Systems or Building’s Structure; (ii) will require the filing of plans and specifications with any governmental or quasi-governmental agency or authority; (iii) will cost in excess of Fifty Thousand Dollars ($50,000.00); or (iv) will require a building permit or similar governmental approval to undertake. Subsequent to obtaining Landlord’s consent and prior to commencement of the Alterations, Tenant shall deliver to Landlord a copy of any building permit required by applicable Law and a copy of the executed construction contract(s). Tenant shall reimburse Landlord within ten (10) days after the rendition of a bill for all of Landlord’s reasonable actual out-of-pocket costs incurred in connection with any Alterations, including all management, engineering, outside consulting, and construction fees incurred by or on behalf of Landlord for the review and approval of Tenant’s plans and specifications and for the monitoring of construction of the Alterations not to exceed two thousand ($2,000.00) dollars in any case. If Landlord consents to the making of any Alteration, such Alteration shall be made by Tenant at Tenant’s sole cost and expense by a contractor approved in writing by Landlord. Tenant shall require its contractor to maintain insurance in such amounts and in such form as Landlord may require. Without Landlord’s prior written consent, Tenant shall not use any portion of the Common Areas in connection with the making of any Alterations. If the Alterations which Tenant causes to be constructed result in Landlord being

 

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required to make any alterations and/or improvements to other portions of the Project, as applicable, in order to comply with any applicable Laws, then Tenant shall reimburse Landlord upon demand for all costs and expenses incurred by Landlord in making such alterations and/or improvements. Any Alterations made by Tenant shall become the property of Landlord upon installation and shall remain on and be surrendered with the Premises upon the expiration or sooner termination of this Lease, unless Landlord requires the removal of such Alterations; provided, however, that Landlord shall have the right to require Tenant to remove any Alterations, at Tenant’s sole cost and expense, in accordance with the provisions of this Section 8, which removal requirement shall be specified by Landlord when Landlord consents to Tenant’s requested Alterations, but only if Tenant’s request for Landlord’s consent contains the following legend in bold 14 point font in all capitalized letters at the top of any such request for consent: “IF LANDLORD REQUIRES REMOVAL OF ANY OF THE PROPOSED ALTERATIONS DESCRIBED IN THIS REQUEST FOR CONSENT, THEN LANDLORD SHALL NOTIFY TENANT IN WRITING OF ANY SUCH REMOVAL REQUIREMENT AT THE TIME OF LANDLORD’S CONSENT. IF LANDLORD DOES NOT SO NOTIFY TENANT OF ANY REMOVAL REQUIREMENT, THEN LANDLORD SHALL BE DEEMED TO HAVE WAIVED ITS RIGHT TO REQUIRE REMOVAL OF ANY OF THE PROPOSED ALTERATIONS.” Landlord shall also have the right to require Tenant to remove any Alterations that Tenant makes to the Premises without Landlord’s consent by notice given to Tenant prior to the expiration of the Term or upon the earlier termination of this Lease. If Landlord requires the removal of such Alterations, Tenant shall at its sole cost and expense, forthwith and with all due diligence (but in any event not later than ten (10) days after the expiration or earlier termination of the Lease) remove all or any portion of any Alterations made by Tenant which are designated by Landlord to be removed (including without limitation stairs, bank vaults, and cabling, if applicable) and repair and restore the Premises in a good and workmanlike manner to their original condition, reasonable wear and tear excepted. All construction work done by Tenant within the Premises shall be performed in a good and workmanlike manner with new materials of first-class quality, lien-free and in compliance with all Laws, and in such manner as to cause a minimum of interference with other construction in progress and with the transaction of business in the Project. Tenant agrees to indemnify, defend and hold Landlord harmless against any loss, liability or damage resulting from such work. The foregoing indemnity shall survive the expiration or earlier termination of this Lease. Landlord’s consent to or approval of any alterations, additions or improvements (or the plans therefor) shall not constitute a representation or warranty by Landlord, nor Landlord’s acceptance, that the same comply with sound architectural and/or engineering practices or with all applicable Laws, and Tenant shall be solely responsible for ensuring all such compliance. All voice, data, video, audio and other low voltage control transport system cabling and/or cable bundles installed in the Building by Tenant or its contractor shall be (A) plenum rated and/or have a composition makeup suited for its environmental use in accordance with NFPA 70/National Electrical Code; (B) labeled every 3 meters with the Tenant’s name and origination and destination points; (C) installed in accordance with all EIAITIA standards and the National Electric Code; and (D) installed and routed in accordance with a routing plan showing “as built” or “as installed” configurations of cable pathways, outlet identification numbers, locations of all wall, ceiling and floor penetrations, riser cable routing and conduit routing (if applicable), and such other information as Landlord may request. The routing plan shall be available to Landlord and its agents at the Building upon request.

 

(b)           Repairs; Maintenance.

 

(i)            By Landlord. Landlord shall, subject to reimbursement as set forth in Exhibit C keep and maintain in good repair and working order and make repairs to and perform maintenance upon: (1) structural elements of the Building; (2) standard mechanical (including HVAC), electrical, plumbing and fire/life safety systems serving the Building generally; (3) Common Areas; (4) the roof of the Building; (5) exterior windows of the Building; and (6) elevators serving the Building. Landlord shall not be liable for any failure to make any such repairs or to perform any maintenance unless

 

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such failure shall persist for an unreasonable time after written notice of the need of such repairs or maintenance is given to Landlord by Tenant. If any of the foregoing maintenance or repair is necessitated due to the acts or omissions of any Tenant Party, Tenant shall pay the costs of such repairs or maintenance to Landlord within thirty (30) days after receipt of an invoice, together with an administrative charge in an amount equal to five percent (5%) of the cost of the repairs. Landlord shall not be liable to Tenant for any interruption of Tenant’s business or inconvenience caused due to any work performed in the Premises or in the Project pursuant to Landlord’s rights and obligations under the Lease. Notwithstanding the foregoing, if (i) any Essential Services (as said term is hereinafter defined) are unavailable solely as a result of the negligence or willful misconduct of the Landlord (any such unavailability of an Essential Service being hereinafter referred to as a “Service Interruption”), and (ii) such Service Interruption continues for more than five (5) consecutive Business Days after notice from Tenant and (iii) as a result of such Service Interruption, the conduct of Tenant’s normal operations in the Premises are materially adversely affected, then all Base Rent and Additional Rent due hereunder with respect to the materially adversely affected portion of the Premises shall be abated for the period beginning immediately following the expiration of such five (5) business day period and shall continue until the applicable Essential Service is restored to a level that the material, adverse effect is eliminated. For purposes hereof the term “Essential Services” shall mean the following services: electricity, water and sewer.

 

(ii)           By Tenant. Tenant shall, at its sole cost and expense, promptly perform all maintenance and repairs within the Premises that are not Landlord’s express responsibility under this Lease, and shall keep the Premises in good condition and repair, ordinary wear and tear excepted. Tenant’s repair obligations include, without limitation, repairs to: (1) floor covering and/or raised flooring; (2) interior partitions; (3) doors; (4) the interior side of demising walls; (5) electronic, phone and data cabling and related equipment (collectively, “Cable”) that is installed by or for the benefit of Tenant and located in the Premises or other portions of the Building or Project; (6) supplemental air conditioning units, private showers and kitchens, including hot water heaters, plumbing, dishwashers, ice machines and similar facilities serving Tenant exclusively; (7) phone rooms used exclusively by Tenant; (8) Alterations performed by contractors retained by or on behalf of Tenant, including related HVAC balancing; and (9) all of Tenant’s furnishings, trade fixtures, equipment and inventory. Landlord reserves die right to perform any of the foregoing maintenance or repair obligations or require that such obligations be performed by a contractor approved by Landlord, all at Tenant’s expense. All work shall be performed in accordance with the rules and procedures described in Section 8(a). If Tenant fails to make any repairs to the Premises for more than fifteen (15) days after notice from Landlord (although notice shall not be required if there is an emergency, or if the area to be repaired is visible from the exterior of the Building), Landlord may, in addition to any other remedy available to Landlord, make the repairs, and Tenant shall pay the reasonable cost of the repairs to Landlord within thirty (30) days after receipt of an invoice, together with an administrative charge in an amount equal to fifteen percent (15%) of the cost of the repairs. At the expiration of this Lease, Tenant shall surrender the Premises in good condition, excepting reasonable wear and tear and losses required to be restored by Landlord. If Landlord elects to store any personal property of Tenant, including goods, wares, merchandise, inventory, trade fixtures and other personal property of Tenant, same shall be stored at the sole risk of Tenant. Except to die extent of Landlord’s negligence or matters for which the Landlord is strictly liable at law, Landlord or its agents shall not be liable for any loss or damage to persons or property resulting from fire, explosion, falling plaster, steam, gas, electricity, water or rain which may leak from any part of the Project or from the pipes, appliances or plumbing works therein or from the roof, street or subsurface or from any other places resulting from dampness or any other cause whatsoever, or from die act or negligence of any other tenant or any officer, agent, employee, contractor or guest of any such tenant. It is generally understood that mold spores may be present and that mold can grow in moist locations. Emphasis is properly placed on prevention of moisture and on good housekeeping and ventilation practices.  Tenant acknowledges the necessity of housekeeping, ventilation, and moisture control (especially in kitchens, janitor’s closets,

 

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bathrooms, break rooms and around outside walls) for mold prevention. In signing this Lease, Tenant has first inspected the Premises and certifies that it has not observed mold, mildew or moisture visible within die Premises. Tenant agrees to immediately notify Landlord if it observes mold/mildew and/or moisture conditions (from any source, including leaks), and allow Landlord to evaluate and make recommendations and/or take appropriate corrective action. Tenant shall adopt and implement the moisture and mold control guidelines set forth on Exhibit L attached hereto.

 

(c)           Performance of Work. All work described in this Section 8 shall be performed only by contractors and subcontractors approved in writing by Landlord. Tenant shall cause all contractors and subcontractors to procure and maintain insurance coverage against such risks, in such amounts, and with such companies as Landlord may reasonably require, but in no event less than: (i) Commercial General Liability insurance on an occurrence basis in amounts not less than $5,000,000 naming Landlord, Landlord’s property management company and Invesco Advisers, Inc. (“Invesco”) as additional insureds; (ii) workers’ compensation insurance in amounts required by statute; and (iii) Business Automobile Liability insurance on an occurrence basis in amounts not less than $1,000,000. Tenant shall provide Landlord with insurance certificates for such contractors and subcontractors prior to commencement of any work. Tenant shall provide Landlord with the identities, mailing addresses and telephone numbers of all persons performing work or supplying materials prior to beginning such construction and Landlord may post on and about the Premises notices of non-responsibility pursuant to applicable Laws. All such work shall be performed in accordance with all Laws and in a good and workmanlike manner so as not to damage the Building (including the Premises, the Building’s Structure and the Building’s Systems). All such work which may affect the Building’s Structure or the Building’s Systems, at Landlord’s election, must be performed by Landlord’s usual contractor for such work or a contractor approved by Landlord. All work affecting the roof of the Building must be performed by Landlord’s roofing contractor or a contractor approved by Landlord and no such work will be permitted if it would void or reduce the warranty on the roof.

 

All maintenance (including without limitation janitorial services and pest control services) and repairs made by Tenant must comply with Landlord’s Sustainability Initiative, including any third-party rating system concerning the environmental compliance of the Building or the Premises, as the same may change from time to time.

 

Notwithstanding local ordinances and building codes, any and all improvements, alterations or additions performed by Tenant will be performed in accordance with Landlord’s “Contractor Rules and Regulations” attached hereto as Exhibit E-1 and the Energy and Sustainability Construction Guidelines & Requirements attached hereto as Exhibit E-2. If Landlord reasonably determines that Tenant’s maintenance or repair will affect the Building’s designation, Tenant further agrees to engage a qualified third party LEED or Green Globe Accredited Professional or similarly qualified professional during the design phase through implementation of improvements, alterations or additions performed by Tenant to review all plans, material procurement, demolition, construction and waste management procedures to ensure they are in full conformance to Landlord’s Sustainability Initiative.

 

(d)           Mechanic’s Liens. All work performed, materials furnished, or obligations incurred by or at the request of a Tenant Party shall be deemed authorized and ordered by Tenant only, and Tenant shall not permit any mechanic’s liens to be filed against the Premises or the Project in connection therewith. Upon completion of any such work, Tenant shall deliver to Landlord final lien waivers from all contractors, subcontractors and materialmen who performed such work. If such a lien is filed, then Tenant shall, within ten (10) days after Landlord has delivered notice of the filing thereof to Tenant (or such earlier time period as may be necessary to prevent the forfeiture of the Premises, Project or any interest of Landlord therein or the imposition of a civil or criminal fine with respect thereto), either: (1) pay the amount of the lien and cause the lien otherwise to be released of record; or (2)

 

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diligently contest such lien and deliver to Landlord a statutory bond or any other security reasonably satisfactory to Landlord. If Tenant fails to timely take either such action, then Landlord may post a bond against such lien or cause the bond to otherwise be released of record, and any amounts paid for such bond or release, including expenses and interest, shall be paid by Tenant to Landlord within ten (10) days after Landlord has invoiced Tenant therefor. Landlord and Tenant acknowledge and agree that their relationship is and shall be solely that of “landlord-tenant” (thereby excluding a relationship of “owner-contractor,” “owner-agent” or other similar relationships). Accordingly, to the extent permitted by law, all materialmen, contractors, artisans, mechanics, laborers and any other persons now or hereafter contracting with Tenant, any contractor or subcontractor of Tenant or any other Tenant Party for the furnishing of any labor, services, materials, supplies or equipment with respect to any portion of the Premises, at any time from the date hereof until the end of the Term, are hereby charged with notice that they look exclusively to Tenant to obtain payment for same. Nothing herein shall be deemed a consent by Landlord to any liens being placed upon the Premises, the Project or Landlord’s interest therein due to any work performed by or for Tenant or deemed to give any contractor or subcontractor or materialman any right or interest in any funds held by Landlord to reimburse Tenant for any portion of the cost of such work. Tenant shall indemnify, defend and hold harmless Landlord, its property manager, Invesco, any subsidiary or affiliate of the foregoing, and their respective officers, directors, shareholders, partners, employees, managers, contractors, attorneys and agents (collectively, the “Indemnitees”) from and against all claims, demands, causes of action, suits, judgments, damages and expenses (including attorneys’ fees) in any way arising from or relating to the failure by any Tenant Party to pay for any work performed, materials furnished, or obligations incurred by or at the request of a Tenant Party. The foregoing indemnity shall survive termination or expiration of this Lease.

 

(e)                                  Signs. Tenant shall not place or permit to be placed any signs upon: (i) die roof of the Building; or (ii) the Common Areas; or (iii) any area visible from the exterior of the Premises without Landlord’s prior written approval, which approval shall be granted or withheld by Landlord in its sole discretion. If approved by Landlord, any proposed sign shall only be placed in those locations as may be designated by Landlord, and shall comply with the sign criteria promulgated by Landlord from time to time. At Landlord’s expense, Landlord shall provide to Tenant a listing on the main Building lobby directory and on any directory located in the elevator common areas on each floor that the Premises are located. Upon request of Landlord, Tenant shall immediately remove any sign, advertising material or lettering which Tenant has placed or permitted to be placed upon the exterior or interior surface of any door or window or at any point inside the Premises, which in Landlord’s reasonable opinion, is of such a nature as to not be in keeping with the standards of the Building, and if Tenant fails to do so, Landlord may without liability remove the same at Tenant’s expense. Tenant shall comply with such regulations as may from time to time be promulgated by Landlord governing signs, advertising material or lettering of all tenants in the Project. The Tenant, upon vacation of the Premises, or the removal or alteration of its sign for any reason, shall be responsible for the repair, painting or replacement of the Building fascia surface or other portion of the Building where signs are attached. If Tenant fails to do so, Landlord may have the sign removed and the cost of removal plus fifteen percent (15%) as an administrative fee shall be payable by Tenant within ten (10) days of invoice.

 

9.                                      Use. Tenant shall continuously occupy and use the Premises only for the Permitted Use (as set forth in the Basic Lease Information) and shall comply with all Laws relating to the use, condition, access to, and occupancy of the Premises and will not commit waste, overload the Building’s Structure or the Building’s Systems or subject the Premises to use that would damage the Premises. Subject to Landlord’s after hours security procedures, repair situations, and subject to events beyond Landlord’s reasonable control, Tenant shall have the right to access the Premises on a 24-hour, 7-day a week basis. Tenant, at its sole cost and expense, shall obtain and keep in effect during the Term, all permits, licenses, and other authorizations necessary to permit Tenant to use and occupy the Premises for the Permitted Use in accordance with applicable Law. The population density within the Premises as a whole shall at no

 

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time exceed one (1) person for each one hundred twenty-five (125) rentable square feet in the Premises. Notwithstanding anything in this Lease to the contrary, as between Landlord and Tenant: (a) Tenant shall bear the risk of complying with Title III of the Americans With Disabilities Act of 1990, any state laws governing handicapped access or architectural bathers, and all rules, regulations, and guidelines promulgated under such laws, as amended from time to time (the “Disabilities Acts”) in the Premises; and (b) Landlord shall bear the risk of complying with the Disabilities Acts in the Common Areas (subject to reimbursement as set forth in Exhibit C), other than compliance that is necessitated by the use of the Premises for other than the Permitted Use or as a result of any alterations or additions made by Tenant (which risk and responsibility shall be borne by Tenant). Tenant shall not use any substantial portion of the Premises for a “call center”, any other telemarketing use, or any credit processing use. In addition, the Premises shall not be used for any purpose which creates strong, unusual, or offensive odors, fumes, dust or vapors; which emits noise or sounds that are objectionable due to intermittence, beat, frequency, shrillness, or loudness; which is associated with indecent or pornographic matters; or which involves political or moral issues (such as abortion issues). Tenant shall conduct its business and control each other Tenant Party so as not to create any nuisance or unreasonably interfere with other tenants or Landlord in its management of the Building. Tenant shall not knowingly conduct or permit to be conducted in the Premises any activity, or place any equipment in or about the Premises or the Building, which will invalidate the insurance coverage in effect or increase the rate of fire insurance or other insurance on the Premises or the Building. If any invalidation of coverage or increase in the rate of fire insurance or other insurance occurs or is threatened by any insurance company due to activity conducted from the Premises, or any act or omission by Tenant, or its agents, employees, representatives, or contractors, such statement or threat shall be conclusive evidence that the increase in such rate is due to such act of Tenant or the contents or equipment in or about the Premises, and, as a result thereof, Tenant shall be liable for such increase and shall be considered Additional Rent payable with the next monthly installment of Base Rent due under this Lease and Landlord’s acceptance of such amount shall not waive any of Landlord’s other rights. In no event shall Tenant introduce or permit to be kept on the Premises or brought into the Building any dangerous, noxious, radioactive or explosive substance.

 

Tenant shall use reasonable efforts not to use or operate the Premises in any manner that will cause the Building or any part thereof not to conform with Landlord’s Sustainability Initiative or certification of the Building in accordance with Green Certification, as may be reasonably determined by Landlord, so long as such efforts do not involve a material expense to Tenant.

 

Tenant agrees to use reasonable efforts to comply with and cooperate with Landlord’s efforts to comply with energy efficiency, green building and/or carbon reduction laws, including without limitation occupant, water, energy and transportation surveys within die city, county, state or any other jurisdiction, so long as such efforts do not involve a material expense to Tenant.

 

10.                               Assignment and Subletting.

 

(a)                                 Transfers. Except as provided herein, Tenant shall not, without the prior written consent of Landlord: (1) assign, transfer, or encumber this Lease or any estate or interest herein, whether directly or by operation of law; (2) permit any other entity to become Tenant hereunder by merger, consolidation, or other reorganization; (3) sublet any portion of the Premises; (4) grant any license, concession, or other right of occupancy of any portion of the Premises; or (5) permit the use of the Premises by any parties other than Tenant (any of the events listed in Section 10(a)(1) through Section 10(a)(6) being a “Transfer”).

 

(b)                                 Consent Standards. Landlord shall not unreasonably withhold its consent to any assignment or subletting of the Premises, provided that Tenant is not then in default under the Lease and the proposed transferee: (1) is creditworthy; (2) has a good reputation in the business community; (3) will

 

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use the Premises for the Permitted Use (thus, excluding without limitation, uses for credit processing and telemarketing); (4) will not use the Premises or Project in a manner that would materially increase the pedestrian or vehicular traffic to the Premises or Project; (5) is not a governmental entity, or subdivision or agency thereof; (6) is not another occupant of the Building; and (7) is not a person or entity with whom Landlord is then, or has been within the six-month period prior to the time Tenant seeks to enter into such assignment or subletting, negotiating to lease space in the Building, or any Affiliate of any such person or entity; otherwise, Landlord may withhold its consent in its sole discretion. Notwithstanding the foregoing, it shall be a reasonable basis for Landlord to withhold its consent if Tenant tenders for Landlord’s approval an assignment of this Lease or a sublease of the Premises or any part of the Premises to a proposed assignee/subtenant whose proposed use or operation in the Premises may or will cause the Building or any part thereof not to conform with the environmental and green building clauses in this Lease.

 

Notwithstanding the above, Tenant shall have the right to assign this Lease or sublet the Premises to an Affiliate (an “Affiliate Transfer”) or to a successor entity resulting from an acquisition, merger, spin off or consolidation without the need to obtain Landlord’s consent so long as (1) Tenant is not in default under this Lease; (2) Tenant’s successor shall own all or substantially all of the assets of Tenant; (3) any such assignee shall have a tangible net worth as of the date of such assignment at least equal to or greater than the tangible net worth of Tenant as of the date of this Lease; and (4) the Premises shall not be used for retail purposes.

 

(c)                                  Request for Consent. If Tenant requests Landlord’s consent to a Transfer, then, at least thirty (30) days prior to the effective date of the proposed Transfer, Tenant shall provide Landlord with a written description of all terms and conditions of the proposed Transfer, copies of the proposed pertinent documentation, and the following information about the proposed transferee: name and address; reasonably satisfactory information about its business and business history; its proposed use of the Premises;, financial information; and general references sufficient to enable Landlord to determine that the proposed transferee does not have an adverse reputation. Concurrently with Tenant’s notice of any request for consent to a Transfer, Tenant shall pay to Landlord a fee of $1,000 to defray Landlord’s expenses in reviewing such request, and Tenant shall also reimburse Landlord immediately upon request for its reasonable attorneys’ fees incurred in connection with considering any request for consent to a Transfer.

 

(d)                                 Conditions to Consent. If Landlord consents to a proposed Transfer, then the proposed transferee shall deliver to Landlord a written agreement whereby it expressly assumes Tenant’s obligations hereunder; however, any transferee of less than all of the space in the Premises shall be liable only for obligations under this Lease that are properly allocable to the space subject to the Transfer for the period of the Transfer. No Transfer (including an Transfer not requiring Landlord’s consent) shall release Tenant from its obligations under this Lease, but rather Tenant and its transferee shall be jointly and severally liable therefor. Landlord’s consent to any Transfer shall not be deemed consent to any subsequent Transfers. If an Event of Default occurs while the Premises or any part thereof are subject to a Transfer, then Landlord, in addition to its other remedies, may collect directly from such transferee all rents becoming due to Tenant and apply such rents against Rent. Tenant authorizes its transferees to make payments of rent directly to Landlord upon receipt of notice from Landlord to do so following the occurrence of an Event of Default hereunder. All rents paid to Tenant by an assignee or subtenant shall be received by Tenant in trust for Landlord and shall be forwarded to Landlord without offset or reduction of any kind. Tenant shall pay for the cost of any demising walls or other improvements necessitated by a proposed subletting or assignment (provided that the foregoing shall not waive any approval right that Landlord may have with respect to such improvements pursuant to another provision of this Lease).

 

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(e)                                  Attornment by Subtenants. Each sublease by Tenant hereunder shall be subject and subordinate to this Lease and to the matters to which this Lease is or shall be subordinate, and each subtenant by entering into a sublease is deemed to have agreed that in the event of termination, re-entry or dispossession by Landlord under this Lease, Landlord may, at its option, either terminate the sublease or take over all of the right, title and interest of Tenant, as sublandlord, under such sublease, and such subtenant shall, at Landlord’s option, attom to Landlord pursuant to the then executory provisions of such sublease, except that Landlord shall not be: (1) liable for any previous act or omission of Tenant under such sublease; (2) subject to any counterclaim, offset or defense that such subtenant might have against Tenant; (3) bound by any previous modification of such sublease or by any rent or additional rent or advance rent which such subtenant might have paid for more than the current month to Tenant, and all such rent shall remain due and owing, notwithstanding such advance payment; (4) bound by any security or advance rental deposit made by such subtenant which is not delivered or paid over to Landlord and with respect to which such subtenant shall look solely to Tenant for refund or reimbursement; or (5) obligated to perform any work in the subleased space or to prepare it for occupancy, and in connection with such adornment, the subtenant shall execute and deliver to Landlord any instruments Landlord may reasonably request to evidence and confirm such attornment. Each subtenant or licensee of Tenant shall be deemed, automatically upon and as a condition of its occupying or using the Premises or any part thereof, to have agreed to be bound by the terms and conditions set forth in this Section 10(e). The provisions of this Section 10(e) shall be self-operative, and no further instrument shall be required to give effect to this provision.

 

(f)                                   Cancellation. Except in connection with an Affiliate Transfer, in the event Tenant requests Landlord’s consent to an assignment of this Lease or a sublease of the Premises, Landlord may, within thirty (30) days after submission of Tenant’s written request for Landlord’s consent, cancel this Lease as to the portion of the Premises proposed to be sublet or assigned as of the date the proposed Transfer is to be effective; provided, however, that Tenant may sublet one-time during the Term up to one entire wing (i.e., either an East floor wing or a West floor wing) on one floor of the Premises (including in the term “Premises” for these purposes any additional space that Tenant may lease pursuant to its rights under Exhibit J) without triggering such cancellation right by Landlord. If Landlord cancels this Lease as to any portion of the Premises, then this Lease shall cease for such portion of the Premises, Tenant shall pay to Landlord all Rent accrued through the cancellation date relating to the portion of the Premises covered by the proposed Transfer, and Rent shall be reduced proportionately based on the remaining square footage in the Premises. Thereafter, Landlord may lease such portion of the Premises to the prospective transferee (or to any other person) without liability to Tenant. Notwithstanding the foregoing, if Landlord provides written notification to Tenant of its election to cancel this Lease as to any portion of the Premises as provided above, Tenant may rescind its proposed assignment or subletting of all or any portion of the Premises by notifying Landlord in writing within five (5) Business Days following Landlord’s written cancellation notice.

 

(g)                                  Additional Compensation. Tenant shall pay to Landlord, immediately upon receipt thereof, one-half (1/2) of the excess of all compensation received by Tenant for a Transfer over the Rent allocable to the portion of the Premises covered thereby, after first deducting from such excess Tenant’s reasonable and customary legal, brokerage and leasehold improvement costs incurred in connection with such Transfer, all of which costs shall be amortized ratably over the term of the Transfer.

 

11.                               Insurance; Waivers; Subrogation; Indemnity.

 

(a)                                 Tenant’s Insurance. Effective as of the earlier of: (1) the date Tenant enters or occupies the Premises; or (2) the Commencement Date, and continuing throughout the Term, Tenant shall maintain the following insurance policies:

 

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(i)                                     Commercial General Liability Insurance in amounts of no less than $5,000,000 per occurrence for bodily injury and property damage, $5,000,000 each person or organization for personal and advertising injury, $5,000,000 general aggregate, and $5,000,000 products and completed operations aggregate covering: (A) premises/operations liability, (B) products/completed operations liability, (C) personal and advertising injury liability, (D) independent contractors liability, and (E) broad form contractual liability. Such policy shall: (1) be primary and non-contributory to any insurance or self insurance maintained by Tenant, Landlord, Landlord’s property management company and Invesco with respect to the use and occupancy of the Premises including all operations conducted thereon; (2) include severability of interests or cross liability provisions; (3) be endorsed to add Landlord, Landlord’s property management company, and Invesco as additional insureds using Insurance Services Office (“ISO”) form CG 20 26 11 85 or a substitute equivalent form approved in writing by Landlord; (4) include terrorism coverage up to the full per occurrence and aggregate limits available under the policy; and (5) insure other activities that the Landlord deems necessary, such as insurance for liquor liability. Limits can be satisfied through the maintenance of a combination of primary and umbrella policies. Tenant may maintain such insurance on a multi-location basis provided that the aggregate limits or sublimits on each policy are dedicated to the Premises and thereby not subject to dilution by claims occurring at other locations.

 

(ii)                                  Intentionally Omitted.

 

(iii)                               Commercial Property Insurance covering at full replacement cost value the following property in the Premises: (A) inventory; (B) FF&E (unattached furniture, fixtures, and equipment); (C) alterations, improvements and betterments made by the Tenant including but not necessarily limited to all permanently attached fixtures and equipment; and (D) any other property in which the Tenant retains the risk of loss including electronic data processing equipment, employee personal property or other property owned or leased by Tenant. Such property insurance shall include: (1) coverage against such perils as are commonly included in the special causes of loss form, with no exclusions for wind and hail, vandalism and malicious mischief, and endorsed to add the perils of terrorism; (2) business income coverage providing for the full recovery of loss of rents and continuing expenses on an actual loss sustained basis for a period of not less than twelve (12) months; (3) an “agreed amount” endorsement waiving any coinsurance requirements; and (4) a loss payable endorsement providing that Tenant, Landlord, and Landlord’s Mortgagee (as hereinafter defined) shall be a loss payee on the policy with regard to the loss of rents coverage. “Full replacement value,” as used herein, means the cost of repairing, replacing, or reinstating, including demolishing, any item of property, with materials of like kind and quality in compliance with, (and without, an exclusion pertaining to application of), any law or building ordinance regulating repair or construction at the time of loss and without deduction for physical, accounting, or any other depreciation, in an amount sufficient to meet the requirements of any applicable co-insurance clause and to prevent Tenant from being a co-insurer.

 

(iv)                              Builders’ Risk Insurance on an “all risk” form that does not exclude the perils of flood, earthquake, and terrorism covering on a completed value basis all work incorporated in the Building and all materials and equipment in or about the Premises in connection with construction activities where Tenant notifies Landlord of its intent to undertake a substantial rebuild of the existing structure and Landlord determines that such coverage is necessary. Limits and terms to coverage are to be determined by Landlord upon notification by Tenant.

 

(v)                                 Workers Compensation Insurance covering statutory benefits in the state where the Premises is located. This policy shall include “other states” insurance, so as to include all states not named on the declarations page of the insurance policy, except for the monopolistic states. Tenant is required to carry this insurance regardless of eligibility for waiver or exemption of coverage under any applicable state statute. Such insurance shall include an employers liability coverage part with limits that

 

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shall be not less than $1,000,000 each accident for bodily injury by accident and $1,000,000 each employee and policy limit for bodily injury by disease.

 

(vi)                              Such other insurance or any changes or endorsements to the insurance required herein, including increased limits of coverage, as Landlord, or any mortgagee or lessor of Landlord, may reasonably require from time to time, so long as such requirements are commercially reasonable and aligned with the industry standard.

 

Tenant’s commercial general liability insurance, automobile liability insurance and, all other insurance policies, where such policies permit coverage for Landlord as an additional insured, shall provide primary coverage to Landlord and shall not require contribution by any insurance maintained by Landlord, when any policy issued to Landlord provides duplicate or similar coverage, and in such circumstance Landlord’s policy will be excess over Tenant’s policy. Tenant shall furnish to Landlord certificates of such insurance, and where applicable with an additional insured endorsement in form CG 20 26 11 85 (or another equivalent form approved in writing by Landlord), and such other evidence satisfactory to Landlord of the maintenance of all insurance coverages required hereunder at least ten (10) days prior to the earlier of the Commencement Date or the date Tenant enters or occupies the Premises, and at least fifteen (15) days prior to each renewal of said insurance, and Tenant shall obtain a written obligation on the part of each insurance company to notify Landlord at least thirty (30) days before cancellation, non-renewal or a material change of any such insurance policies. All such insurance policies shall be in form, and issued by companies licensed to do business in the state where the Premises is located, rated by AM Best as having a financial strength rating of “A-” or better and a financial size category of “DC” or greater, or otherwise reasonably satisfactory to Landlord. If Tenant fails to comply with the foregoing insurance requirements or to deliver to Landlord the certificates or evidence of coverage required herein, Landlord, in addition to any other remedy available pursuant to this Lease or otherwise, may, but shall not be obligated to, obtain such insurance and Tenant shall pay to Landlord on demand the premium costs thereof, plus an administrative fee of fifteen percent (15%) of such cost. It is expressly understood and agreed that the foregoing minimum limits of liability and coverages required of Tenant’s insurance shall not reduce or limit the obligation of the Tenant to indemnify the Landlord as provided in this Lease. All policies required herein shall use occurrence based forms. Any and all of the premiums, deductibles and self-insured retentions associated with the policies providing the insurance coverage required herein shall be assumed by, for the account of, and at the sole risk of Tenant. Deductibles or self-insured retentions may not exceed $10,000 without the prior written approval of Landlord.

 

(b)                                 Landlord’s Insurance. Throughout the Term of this Lease, Landlord shall maintain, as a minimum, the following insurance policies: (I) property insurance for the Building’s replacement value (excluding property required to be insured by Tenant, it being agreed that Landlord shall have no obligation to provide insurance for such property), less a commercially-reasonable deductible if Landlord so chooses; and (2) commercial general liability insurance in an amount of not less than $3,000,000 per occurrence for bodily injury and property damage, $3,000,000 each person or organization for personal and advertising injury, $3,000,000 general aggregate, and $3,000,000 products and completed operations aggregate. Limits can be satisfied through the maintenance of a combination of primary and umbrella policies. Landlord may, but is not obligated to, maintain such other insurance and additional coverages as it may deem necessary. Tenant shall pay its Proportionate Share of the cost of all insurance carried by Landlord with respect to the Project or Complex, as applicable, as set forth on Exhibit C. The foregoing insurance policies and any other insurance carried by Landlord shall be for the sole benefit of Landlord and under Landlord’s sole control, and Tenant shall have no right or claim to any proceeds thereof or any other rights thereunder.

 

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(c)                                  Waiver of Subrogation. Notwithstanding anything to the contrary herein, to the extent permitted by law and without affecting the coverage provided by insurance required to be maintained hereunder, Landlord and Tenant shall each agree to waive any right to recover against the other party (and the other party’s agents, officers, directors and employees) on account of any and all claims it may have against the other party (and the other party’s agents, officers, directors and employees) with respect to the insurance actually maintained, or required to be maintained hereunder, under subparagraphs 11(a)(i) through (vi), inclusive, and to the extent proceeds are realized from such insurance coverage that are applied to such claims. Each policy described in this Lease shall contain a waiver of subrogation endorsement that provides that the waiver of any right to recovery shall not invalidate the policy in any way.

 

(d)                                 Indemnity. Subject to Section 11(c), Tenant shall indemnify, defend and hold harmless Landlord and the Indemnitees from and against all claims, demands, liabilities, causes of action, suits, judgments, damages, and expenses (including attorneys’ fees) and all losses and damages arising from: (1) any injury to or death of any person or the damage to or theft, destruction, loss, or loss of use of any property or inconvenience (a “Loss”) arising from any occurrence on the Premises, the use of the Common Areas by any Tenant Party, or arising out of the installation, operation, maintenance, repair or removal of any of Tenant’s Off-Premises Equipment, except to the extent caused by Landlord’s negligence or willful misconduct; or (2) Tenant’s failure to perform its obligations under this Lease. The indemnities set forth in this Section 11(d) shall survive termination or expiration of this Lease and shall not terminate or be waived, diminished or affected in any manner by any abatement or apportionment of Rent under any provision of this Lease. If any proceeding is filed for which indemnity is required hereunder, Tenant agrees, upon request therefor, to defend Landlord in such proceeding at its sole cost utilizing counsel satisfactory to Landlord in its sole discretion.

 

12.                               Subordination; Attornment; Notice to Landlord’s Mortgagee.

 

(a)                                 Subordination. This Lease shall be subordinate to any deed of trust, mortgage, or other security instrument (each, a “Mortgage”), or any ground lease, master lease, or primary lease (each, a “Primary Lease”), that now or hereafter covers all or any part of the Premises (the mortgagee under any such Mortgage, beneficiary under any such deed of trust, or the lessor under any such Primary Lease is referred to herein as a “Landlord’s Mortgagee”). With respect to any future Mortgage, any Landlord’s Mortgagee may elect at any time, unilaterally, to make its Mortgage, Primary Lease, or other interest in the Premises superior to this Lease by so notifying Tenant in writing and providing to Tenant a subordination, non-disturbance and attornment agreement substantially in the customary form of Landlord’s Mortgagee (the “SNDA”). In confirmation of such subordination, Tenant shall execute and return to Landlord (or such other party designated by Landlord), within ten (10) days after written request therefor, the SNDA. Landlord hereby represents and warrants that, as of the Lease Date, there are no Mortgages or Primary Leases encumbering the Building.

 

(b)                                 Attornment. Tenant shall attorn to any party succeeding to Landlord’s interest in the Premises, whether by purchase, foreclosure, deed in lieu of foreclosure, power of sale, termination of lease, or otherwise, upon such party’s request, and shall execute such agreements confirming such attornment as such party may reasonably request.

 

(c)                                  Notice to Landlord’s Mortgagee. Tenant shall not seek to enforce any remedy it may have for any default on the part of Landlord without first giving written notice by certified mail, return receipt requested, specifying the default in reasonable detail, to any Landlord’s Mortgagee whose address has been given to Tenant, and affording such Landlord’s Mortgagee a reasonable opportunity to perform Landlord’s obligations hereunder.

 

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(d)                                 Landlord’s Mortgagee’s Protection Provisions. If Landlord’s Mortgagee shall succeed to the interest of Landlord under this Lease, Landlord’s Mortgagee shall not be: (1) liable for any act or omission of any prior lessor (including Landlord); (2) bound by any rent or additional rent or advance rent which Tenant might have paid for more than one (1) month in advance to any prior lessor (including Landlord), and all such rent shall remain due and owing, notwithstanding such advance payment; (3) bound by any security or advance rental deposit made by Tenant which is not delivered or paid over to Landlord’s Mortgagee; and (4) bound by any termination, amendment or modification of this Lease made without Landlord’s Mortgagee’s consent and written approval, except for those terminations, amendments and modifications permitted to be made by Landlord without Landlord’s Mortgagee’s consent pursuant to the terms of the loan documents between Landlord and Landlord’s Mortgagee. Nothing in this Lease shall be construed to require Landlord’s Mortgagee to see to the application of the proceeds of any loan, and Tenant’s agreements set forth herein shall not be impaired on account of any modification of the documents evidencing and securing any loan.

 

13.                               Rules and Regulations. Tenant shall comply with the rules and regulations of the Building which are attached hereto as Exhibit F. Landlord may, from time to time, change such rules and regulations for the safety, care, or cleanliness of the Building and related facilities, provided that such changes are applicable to all tenants of the Building, will not unreasonably interfere with Tenant’s use of the Premises and are enforced by Landlord in a non-discriminatory manner. Tenant shall be responsible for the compliance with such rules and regulations by each Tenant Party.

 

14.                               Condemnation.

 

(a)                                 Total Taking. If the entire Building or Premises are taken by right of eminent domain or conveyed in lieu thereof (a “Taking”), this Lease shall terminate as of the date of the Taking.

 

(b)                                 Partial Taking - Tenant’s Rights. If any part of the Building becomes subject to a Taking and such Taking will prevent Tenant from conducting its business in the Premises in a manner reasonably comparable to that conducted immediately before such Taking for a period of more than ninety (90) days, then Tenant may terminate this Lease as of the date of such Taking by giving written notice to Landlord within thirty (30) days after the Taking, and Rent shall be apportioned as of the date of such Taking. If Tenant does not terminate this Lease, then Rent shall be abated on a reasonable basis as to that portion of the Premises rendered untenantable by the Taking.

 

(c)                                  Partial Taking - Landlord’s Rights. If any material portion, but less than all, of the Building becomes subject to a Taking, or if Landlord is required to pay any of the proceeds arising from a Taking to a Landlord’s Mortgagee, then Landlord may terminate this Lease by delivering written notice thereof to Tenant within thirty (30) days after such Taking, and Rent shall be apportioned as of the date of such Taking. If Landlord does not so terminate this Lease, then this Lease will continue, but if any portion of the Premises has been taken, Rent shall abate as provided in the last sentence of Section 14(b).

 

(d)                                 Award. If any Taking occurs, then Landlord shall receive the entire award or other compensation for the Land, the Building, and other improvements taken; however, Tenant may separately pursue a claim (to the extent it will not reduce Landlord’s award) against the condemnor for the value of Tenant’s leasehold and personal property which Tenant is entitled to remove under this Lease, moving costs, loss of business, and other claims it may have.

 

15.                               Fire or Other Casualty.

 

(a)                                 Repair Estimate. If the Premises or the Building are damaged by fire or other casualty (a “Casualty”), Landlord shall use good faith efforts to deliver to Tenant within sixty (60) days

 

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after such Casualty a good faith estimate (the “Damage Notice”) of the time needed to repair the damage caused by such Casualty.

 

(b)                                 Tenant’s Rights. If a material portion of the Premises is damaged by Casualty such that Tenant is prevented from conducting its business in the Premises in a manner reasonably comparable to that conducted immediately before such Casualty and Landlord estimates that the damage caused thereby cannot be repaired within two hundred forty (240) days after the commencement of repairs (the “Repair Period”), then Tenant may terminate this Lease by delivering written notice to Landlord of its election to terminate within thirty (30) days after the Damage Notice has been delivered to Tenant.

 

(c)                                  Landlord’s Rights. If a Casualty damages the Premises or a material portion of the Building and: (1) Landlord estimates that the damage to the Premises cannot be repaired within the Repair Period; (2) the damage to die Premises exceeds fifty percent (50%) of the replacement cost thereof (excluding foundations and footings), as estimated by Landlord, and such damage occurs during the last two (2) years of the Term; (3) regardless of the extent of damage to the Premises, Landlord makes a good faith determination that restoring the Building would be uneconomical; or (4) Landlord is required to pay any insurance proceeds arising out of the Casualty to a Landlord’s Mortgagee, then Landlord may terminate this Lease by giving written notice of its election to terminate within thirty (30) days after the Damage Notice has been delivered to Tenant.

 

(d)                                 Repair Obligation. If neither party elects to terminate this Lease following a Casualty, then Landlord shall, within a reasonable time after such Casualty, begin to repair die Premises and shall proceed with reasonable diligence to restore the Premises to substantially the same condition as they existed immediately before such Casualty; however, other than building standard leasehold improvements Landlord shall not be required to repair or replace any Alterations or betterments within the Premises (which shall be promptly and with due diligence repaired and restored by Tenant at Tenant’s sole cost and expense) or any furniture, equipment, trade fixtures or personal property of Tenant or others in the Premises or the Building, and Landlord’s obligation to repair or restore the Premises shall be limited to the extent of the insurance proceeds actually received by Landlord for the Casualty in question. If this Lease is terminated under the provisions of this Section 15, Landlord shall be entitled to the full proceeds of the insurance policies providing coverage for all Alterations, improvements and betterments in the Premises (and, if Tenant has failed to maintain insurance on such items as required by this Lease, Tenant shall pay Landlord an amount equal to the proceeds Landlord would have received had Tenant maintained insurance on such items as required by this Lease).

 

(e)                                  Abatement of Rent. If the Premises are damaged by Casualty, Rent for the portion of die Premises rendered untenantable by the damage shall be abated on a reasonable basis from the date of damage until the completion of Landlord’s repairs (or until the date of termination of this Lease by Landlord or Tenant as provided above, as the case may be), unless a Tenant Party caused such damage, in which case, Tenant shall continue to pay Rent without abatement.

 

16.                               Personal Property Taxes. Tenant shall be liable for all taxes levied or assessed against personal property, furniture, or fixtures placed by Tenant in the Premises or in or on the Building or the Project. If any taxes for which Tenant is liable are levied or assessed against Landlord or Landlord’s property and Landlord elects to pay the same, or if the assessed value of Landlord’s property is increased by inclusion of such personal property, furniture or fixtures and Landlord elects to pay the taxes based on such increase, then Tenant shall pay to Landlord, within thirty (30) days following written request therefor, the part of such taxes for which Tenant is primarily liable hereunder.

 

17.                               Events of Default. Each of the following occurrences shall be an “Event of Default”:

 

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(a)                                 Payment Default. Tenant’s failure to pay Rent when due and the continuance of such failure for a period of at least five (5) calendar days after Landlord has delivered to Tenant written notice of such failure;

 

(b)                                 Abandonment. Tenant abandons the Premises in its entirety (it being understood that Tenant vacating the Premises shall not be a default so long as Tenant continues to perform all of its obligations under this Lease in accordance with the terms and conditions of this Lease);

 

(c)                                  Estoppel/Financial Statements/Commencement Date Letter. Tenant fails to provide: (i) any estoppel certificate after Landlord’s written request therefor pursuant to Section 26(e); (ii) any financial statement after Landlord’s written request therefor pursuant to Section 26(q); or (iii) the Confirmation of Commencement Date in the form of Exhibit G as required by Section 3, and such failure shall continue for ten (10) calendar days after Landlord’s second (2nd) written notice thereof to Tenant;

 

(d)                                 Insurance. Tenant fails to procure, maintain and deliver to Landlord evidence of the insurance policies and coverages as required under Section 11(a);

 

(e)                                  Mechanic’s Liens. Tenant fails to pay and release of record, or diligently contest and bond around, any mechanic’s lien filed against the Premises or die Project for any work performed, materials furnished, or obligation incurred by or at the request of Tenant, within the time and in the manner required by Section 8(c);

 

(f)                                   Other Defaults. Tenant’s failure to perform, comply with, or observe any other agreement or obligation of Tenant under this Lease and the continuance of such failure for a period of thirty (30) calendar days or more after Landlord has delivered to Tenant written notice thereof; and

 

(g)                                  Insolvency. The filing of a petition by or against Tenant (the term “Tenant” shall include, for the purpose of this Section 17(g), any guarantor of Tenant’s obligations hereunder): (1) in any bankruptcy or other insolvency proceeding; (2) seeking any relief under any state or federal debtor relief law; (3) for the appointment of a liquidator or receiver for all or substantially all of Tenant’s property or for Tenant’s interest in this Lease; or (4) for the reorganization or modification of Tenant’s capital structure; however, if such a petition is filed against Tenant, then such filing shall not be an Event of Default unless Tenant fails to have the proceedings initiated by such petition dismissed within sixty (60) calendar days after the filing thereof.

 

18.                               Remedies.

 

Upon any Event of Default, Landlord may, in addition to all other rights and remedies afforded Landlord hereunder or by law or equity, take any one or more of the following actions:

 

(a)                                 Termination of Lease. Terminate this Lease by giving Tenant written notice thereof or by making entry thereon for the purposes of terminating this Lease, and upon the delivery of such notice or the making of such entry this Lease shall terminate, in which event Tenant shall pay to Landlord the sum of: (1) all Rent accrued hereunder through the date of termination; (2) all amounts due under Section 19(a); and (3) (I) an amount equal to (A) the total Rent that Tenant would have been required to pay for the remainder of the Term discounted to present value at a per annum rate equal to the Prime Rate (“Prime Rate” shall be the per annum interest rate publicly announced by a federally insured bank selected by Landlord in the state in which the Premises is located as such bank’s prime or base rate) minus one percent (1%), minus (B) the then present fair rental value of the Premises for such period, similarly discounted or (II) alternatively, the amounts described in clause (3) of the first sentence under Section 18(b).

 

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(b)                                 Termination of Possession. Terminate Tenant’s right to possess the Premises without terminating this Lease by giving written notice thereof to Tenant, in which event Tenant shall pay to Landlord: (I) all Rent and other amounts accrued hereunder to the date of termination of possession; (2) all amounts due from time to time under Section 19(a); and (3) all Rent and other net sums required hereunder to be paid by Tenant during the remainder of the Term, diminished by any net sums thereafter received by Landlord through reletting the Premises during such period, after deducting all costs incurred by Landlord in reletting the Premises. If Landlord elects to proceed under this Section 18(b), Landlord may remove all of Tenant’s property from the Premises and store the same in a public warehouse or elsewhere at the cost of, and for the account of, Tenant, without becoming liable for any loss or damage which may be occasioned thereby.

 

In the event that Landlord proceeds under either Section 18(a) or Section 18(b), Landlord shall use commercially reasonable efforts to relet the Premises on such terms as Landlord in its sole discretion may determine (including a term different from the Term, rental concessions, and alterations to, and improvement of, the Premises); however, Landlord shall not be obligated to expend funds in connection with reletting the Premises, nor to relet the Premises before leasing other portions of the Building, and Landlord shall not be obligated to accept any prospective tenant proposed by Tenant unless such proposed tenant meets all of Landlord’s leasing criteria. Landlord shall not be liable for, nor shall Tenant’s obligations hereunder be diminished because of, Landlord’s failure to relet the Premises or to collect rent due for such reletting. Tenant shall not be entitled to the excess of any consideration obtained by reletting over the Rent due hereunder. Reentry by Landlord in the Premises shall not affect Tenant’s obligations hereunder for the unexpired Term; rather, Landlord may, from time to time, bring an action against Tenant to collect amounts due by Tenant, without the necessity of Landlord’s waiting until the expiration of the Term.

 

Unless Landlord delivers written notice to Tenant expressly stating that it has elected to terminate this Lease, all actions taken by Landlord to dispossess or exclude Tenant from the Premises shall be deemed to be taken under this Section 18(b). If Landlord elects to proceed under this Section 18(b), it may at any time elect to terminate this Lease under Section 18(a); or

 

(c)                                  Perform Acts on Behalf of Tenant. Perform any act Tenant is obligated to perform under the terms of this Lease (and enter upon the Premises in connection therewith if necessary) in Tenant’s name and on Tenant’s behalf, without being liable for any claim for damages therefor, and Tenant shall reimburse Landlord on demand for any expenses which Landlord may incur in thus effecting compliance with Tenant’s obligations under this Lease (including, but not limited to, collection costs and legal expenses), plus interest thereon at the Default Rate.

 

19.                               Payment by Tenant; Non-Waiver; Cumulative Remedies.

 

(a)                                 Payment by Tenant. Upon any Event of Default, Tenant shall pay to Landlord all costs incurred by Landlord (including court costs and reasonable attorneys’ fees and expenses) in: (1) obtaining possession of the Premises; (2) removing and storing Tenant’s or any other occupant’s property; (3) repairing, restoring, altering, remodeling, or otherwise putting the Premises into condition acceptable to a new tenant; (4) reletting all or any part of the Premises (including brokerage commissions, cost of tenant finish work, and other costs incidental to such reletting); (5) performing Tenant’s obligations which Tenant failed to perform; and (6) enforcing, or advising Landlord of, its rights, remedies, and recourses arising out of the Event of Default. To the full extent permitted by Law, Landlord and Tenant agree the federal and state courts of the state in which the Premises are located shall have exclusive jurisdiction over any matter relating to or arising from this Lease and the parties’ rights and obligations under this Lease.

 

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(b)                                 No Waiver. Landlord’s acceptance of Rent following an Event of Default shall not waive Landlord’s rights regarding such Event of Default. No waiver by Landlord of any violation or breach of any of the terms contained herein shall waive Landlord’s rights regarding any future violation of such term. Landlord’s acceptance of any partial payment of Rent shall not waive Landlord’s rights with regard to the remaining portion of the Rent that is due, regardless of any endorsement or other statement on any instrument delivered in payment of Rent or any writing delivered in connection therewith; accordingly, Landlord’s acceptance of a partial payment of Rent shall not constitute an accord and satisfaction of the full amount of the Rent that is due.

 

(c)                                  Cumulative Remedies. Any and all remedies set forth in this Lease: (1) shall be in addition to any and all other remedies Landlord may have at law or in equity; (2) shall be cumulative; and (3) may be pursued successively or concurrently as Landlord may elect. The exercise of any remedy by Landlord shall not be deemed an election of remedies or preclude Landlord from exercising any other remedies in the future.

 

(d)                                 No Designation. If Tenant is in arrears in payment of Rent, Tenant waives its right, if any, to designate the items to which any payments made by Tenant are to be credited, and Landlord may apply any payments made by Tenant to such items as Landlord sees fit, irrespective of any designation or request by Tenant as to the items to which any such payments shall be credited.

 

(e)                                  No Counterclaim. Tenant shall not interpose any counterclaim (other than a compulsory counterclaim) in any summary proceeding commenced by Landlord to recover possession of the Premises and shall not seek to consolidate such proceeding with any action which may have been or will be brought by Tenant or any other person or entity.

 

20.                               Landlord Default. Tenant shall give notice of Landlord’s failure to perform any of its obligations under this Lease to Landlord and to any Landlord’s Mortgagee whose name and address has been given to Tenant. Landlord shall not be in default under this Lease unless Landlord fails to cure such non-performance within thirty (30) calendar days after receipt of Tenant’s notice; provided, however, if such non-performance requires more than thirty (30) calendar days to cure, then Landlord shall not be in default if Landlord commences such cure promptly within said thirty (30) calendar day period and thereafter diligently prosecutes such cure to completion.

 

21.                               Surrender of Premises. No act by Landlord shall be deemed an acceptance of a surrender of the Premises, and no agreement to accept a surrender of the Premises shall be valid unless it is in writing and signed by Landlord. At the expiration or termination of this Lease, Tenant shall deliver to Landlord the Premises with all improvements located therein in good repair and condition, free of Hazardous Materials (as defined in Section 25(i) below) placed on the Premises during the Term, broom-clean, reasonable wear and tear (and condemnation and Casualty damage, as to which Section 14 and Section 15 shall control) excepted, and shall deliver to Landlord all keys to the Premises. Provided that Tenant has performed all of its obligations hereunder, Tenant may remove all unattached trade fixtures, furniture, and personal property placed in the Premises or elsewhere in the Building by Tenant (but Tenant may not remove any such item which was paid for, in whole or in part, by Landlord or any wiring or cabling unless Landlord requires such removal). Additionally, at Landlord’s option, Tenant shall (not later than ten (10) days after the expiration or earlier termination of the Lease) remove such alterations, additions (including stairs and bank vaults), improvements, trade fixtures, personal property, equipment, wiring, conduits, cabling and furniture (including Tenant’s Off-Premises Equipment) as Landlord may request. Tenant shall repair all damage caused by such removal. All items not so removed shall, at Landlord’s option, be deemed to have been abandoned by Tenant and may be appropriated, sold, stored, destroyed, or otherwise disposed of by Landlord at Tenant’s cost without notice to Tenant and without any obligation to account for such items; any such disposition shall not be considered a strict foreclosure

 

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or other exercise of Landlord’s rights in respect of the security interest granted under Section 20. The provisions of this Section 21 shall survive the expiration or earlier termination of the Lease.

 

22.                               Holding Over. If Tenant fails to vacate the Premises at the end of the Term, then Tenant shall be a tenant at sufferance and, in addition to all other damages and remedies to which Landlord may be entitled for such holding over: (a) Tenant shall pay, in addition to the other Rent, Base Rent equal to one hundred fifty percent (150%) of the Base Rent payable during the last month of the Term and (b) Tenant shall otherwise continue to be subject to all of Tenant’s obligations under this Lease. The provisions of this Section 22 shall not be deemed to limit or constitute a waiver of any other rights or remedies of Landlord provided herein or at Law. If Tenant fails to surrender the Premises upon the termination or expiration of this Lease, in addition to any other liabilities to Landlord accruing therefrom, Tenant shall protect, defend, indemnify and hold Landlord harmless from all loss, costs (including reasonable attorneys’ fees) and liability resulting from such failure, including any claims made by any succeeding tenant founded upon such failure to surrender, and any lost profits to Landlord resulting therefrom. Notwithstanding the foregoing, if Tenant holds over with Landlord’s express written consent, then Tenant shall be a month-to-month tenant and Tenant shall pay, in addition to the other Rent, Base Rent equal to one hundred twenty-five percent (125%) of the Base Rent payable during the last month of the Term.

 

23.                               Certain Rights Reserved by Landlord. Landlord shall have the following rights:

 

(a)                                 Building Operations. To decorate and to make inspections, repairs, alterations, additions, changes, or improvements, whether structural or otherwise, in and about the Project or any part thereof; to enter upon the Premises (after giving Tenant reasonable notice thereof, which may be oral notice, except in cases of real or apparent emergency, in which case no notice shall be required) and, during the continuance of any such work, to temporarily close doors, entryways, public space, and corridors in the Building; to interrupt or temporarily suspend Building services and facilities; to change the name of the Building; and to change the arrangement and location of entrances or passageways, doors, and doorways, corridors, elevators, stairs, restrooms, or other public parts of the Building;

 

(b)                                 Security. To take such reasonable security measures as Landlord deems advisable (provided, however, that any such security measures are for Landlord’s own protection, and Tenant acknowledges that Landlord is not a guarantor of the security or safety of any Tenant Party and that such security matters are the responsibility of Tenant); including evacuating the Building for cause, suspected cause, or for drill purposes; temporarily denying access to the Building; and closing the Building after Normal Business Hours and on Sundays and Holidays, subject, however, to Tenant’s right to enter when the Building is closed after Normal Business Hours under such reasonable regulations as Landlord may prescribe from time to time;

 

(c)                                  Repairs and Maintenance. To enter the Premises at all reasonable hours to perform Landlord’s repair and maintenance obligations and rights under the Lease;

 

(d)                                 Prospective Purchasers and Lenders. To enter the Premises at all reasonable hours to show the Premises to prospective purchasers or lenders; and

 

(e)                                  Prospective Tenants. At any time during the last nine (9) months of the Term or at any time during the pendency of an Event of Default, Landlord, upon twenty-four (24) hours notice to Tenant, shall be permitted to enter the Premises at reasonable hours to show the Premises to prospective tenants, so long as such showings shall not occur more than one (1) time per week and provided that all prospective tenants shall be accompanied by a representative of Landlord.

 

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24.                               Intentionally Omitted

 

25.                               Hazardous Materials.

 

(a)                                 During the term of this Lease, Tenant shall comply with all Environmental Laws (as defined in Section 25(i) below) applicable to the operation or use of the Premises, will cause all other persons occupying or using the Premises to comply with all such Environmental Laws, will immediately pay or cause to be paid all costs and expenses incurred by reason of such compliance.

 

(b)                                 Tenant shall not generate, use, treat, store, handle, release or dispose of, or permit the generation, use, treatment, storage, handling, release or disposal of Hazardous Materials (as defined in Section 25(i) hereof) on the Premises, or the Project, or transport or permit the transportation of Hazardous Materials to or from the Premises or the Project except for limited quantities of household cleaning products and office supplies used or stored at the Premises and required in connection with the routine operation and maintenance of the Premises, and in compliance with all applicable Environmental Laws and in compliance with Landlord’s Sustainability Initiative and applicable Green Certification, and in compliance with the rules and regulations of the Building.

 

(c)                                  At any time and from time to time during the term of this Lease, Landlord may perform, at Tenant’s sole cost and expense, an environmental site assessment report concerning the Premises, prepared by an environmental consulting firm chosen by Landlord, indicating the presence or absence of Hazardous Materials caused or permitted by Tenant and the potential cost of any compliance, removal or remedial action in connection with any such Hazardous Materials on the Premises. Tenant shall grant and hereby grants to Landlord and its agents access to the Premises and specifically grants Landlord an irrevocable non-exclusive license to undertake such an assessment; and the cost of such assessment shall be immediately due and payable within thirty (30) days of receipt of an invoice therefor.

 

(d)                                 Tenant will immediately advise Landlord in writing of any of the following: (1) any pending or threatened Environmental Claim (as defined in Section 25(i) below) against Tenant relating to the Premises or the Project; (2) any condition or occurrence on the Premises or the Project that (a) results in noncompliance by Tenant with any applicable Environmental Law, or (b) could reasonably be anticipated to form the basis of an Environmental Claim against Tenant or Landlord or the Premises; (3) any condition or occurrence on the Premises or any property adjoining the Premises that could reasonably be anticipated to cause the Premises to be subject to any restrictions on the ownership, occupancy, use or transferability of the Premises under any Environmental Law; and (4) the actual or anticipated taking of any removal or remedial action by Tenant in response to the actual or alleged presence of any Hazardous Material on the Premises or the Project. All such notices shall describe in reasonable detail the nature of the claim, investigation, condition, occurrence or removal or remedial action and Tenant’s response thereto. In addition, Tenant will provide Landlord with copies of all communications regarding the Premises with any governmental agency relating to Environmental Laws, all such communications with any person relating to Environmental Claims, and such detailed reports of any such Environmental Claim as may reasonably be requested by Landlord.

 

(e)                                  Tenant will not change or permit to be changed the present use of the Premises.

 

(f)                                   Tenant agrees to indemnify, defend and hold harmless the Indemnitees from and against all obligations (including removal and remedial actions), losses, claims, suits, judgments, liabilities, penalties, damages (including consequential and punitive damages), costs and expenses (including reasonable attorneys’ and consultants’ fees and expenses) of any kind or nature whatsoever that may at any time be incurred by, imposed on or asserted against such Indemnitees directly or indirectly based on, or arising or resulting from (a) the actual or alleged presence of Hazardous Materials

 

24

 

on the Project which is caused or permitted by Tenant or a Tenant Party and (b) any Environmental Claim relating in any way to Tenant’s operation or use of the Premises (the “Hazardous Materials Indemnified Matters”). The provisions of this Section 25 shall survive the expiration or sooner termination of this Lease.

 

(g)                                  To the extent that the undertaking in the preceding paragraph may be unenforceable because it is violative of any law or public policy, Tenant will contribute the maximum portion that it is permitted to pay and satisfy under applicable Law to the payment and satisfaction of all Hazardous Materials Indemnified Matters incurred by the Indemnitees.

 

(h)                                 All sums paid and costs incurred by Landlord with respect to any Hazardous Materials Indemnified Matter shall bear interest at the Default Rate from the date so paid or incurred until reimbursed by Tenant, and all such sums and costs shall be immediately due and payable on demand.

 

(i)                                     (x)”Hazardous Materials” means: (i) petroleum or petroleum products, natural or synthetic gas, asbestos in any form that is or could become friable, urea formaldehyde foam insulation, and radon gas; (ii) any substances defined as or included in the definition of “hazardous substances,” “hazardous wastes,” “hazardous materials,” “extremely hazardous wastes,” “restricted hazardous wastes,” “toxic substances,” “toxic pollutants,” “contaminants” or “pollutants,” or words of similar import, under any applicable Environmental Law; and (iii) any other substance exposure which is regulated by any governmental authority; (y) “Environmental Law” means any federal, state or local statute, law, rule, regulation, ordinance, code, policy or rule of common law now or hereafter in effect and in each case as amended, and any judicial or administrative interpretation thereof, including any judicial or administrative order, consent decree or judgment, relating to the environment, health, safety or Hazardous Materials, including without limitation, Massachusetts Oil and Hazardous Material Release, Prevention and Response Act, M.G.L. 21E, the Comprehensive Environmental Response, Compensation, and Liability Act of 1980, 42 U.S.C. §§ 9601 et seq.; the Resource Conservation and Recovery Act, 42 U.S.C. §§ 6901 et seq.; the Hazardous Materials Transportation Act, 49 U.S.C. §§ 1801 et seq.; the Clean Water Act, 33 U.S.C. §§ 1251 et seq.; the Toxic Substances Control Act, 15 U.S.C. §§ 2601 et seq.; the Clean Air Act, 42 U.S.C. §§ 7401 et seq.; the Safe Drinking Water Act, 42 U.S.C. §§ 300f et seq.; the Atomic Energy Act, 42 U.S.C. §§ 2011 et seq.; the Federal Insecticide, Fungicide and Rodenticide Act, 7 U.S.C. §§ 136 et seq.; the Occupational Safety and Health Act, 29 U.S.C. §§ 651 et seq.; and (z) “Environmental Claims” means any and all administrative, regulatory or judicial actions, suits, demands, demand letters, claims, liens, notices of non-compliance or violation, investigations, proceedings, consent orders or consent agreements relating in any way to any Environmental Law or any Environmental Permit, including without limitation (i) any and all Environmental Claims by governmental or regulatory authorities for enforcement, cleanup, removal, response, remedial or other actions or damages pursuant to any applicable Environmental Law and (ii) any and all Environmental Claims by any third party seeking damages, contribution, indemnification, cost recovery, compensation or injunctive relief resulting from Hazardous Materials or arising from alleged injury or threat of injury to health, safety or the environment.

 

26.                               Miscellaneous.

 

(a)                                 Landlord Transfer. Landlord may transfer any portion of the Building and any of its rights under this Lease. If Landlord assigns its rights under this Lease, then Landlord shall thereby be released from any further obligations hereunder arising after the date of transfer, provided that the assignee assumes Landlord’s obligations hereunder in writing.

 

(b)                                 Landlord’s Liability. The liability of Landlord (and its partners, shareholders or members) to Tenant (or any person or entity claiming by, through or under Tenant) for any default by Landlord under the terms of this Lease or any matter relating to or arising out of the occupancy or use of

 

25

 

the Premises and/or other areas of the Building or the Project shall be limited to Tenant’s actual direct, but not consequential, damages therefor and shall be recoverable only from the interest of Landlord in the Building, and Landlord (and its partners, shareholders or members) shall not be personally liable for any deficiency. Additionally, to the extent allowed by Law, Tenant hereby waives any statutory lien it may have against Landlord or its assets, including without limitation, the Building.

 

(c)                                  Force Majeure. Other than for Tenant’s obligations under this Lease that can be performed by the payment of money (e.g., payment of Rent and maintenance of insurance), whenever a period of time is herein prescribed for action to be taken by either party hereto, such party shall not be liable or responsible for, and there shall be excluded from the computation of any such period of time, any delays due to strikes, riots, acts of God, shortages of labor or materials, war, governmental laws, regulations, or restrictions, or any other causes of any kind whatsoever which are beyond the control of such party.

 

(d)                                 Brokerage. Neither Landlord nor Tenant has dealt with any broker or agent in connection with the negotiation or execution of this Lease, other than as set forth in the Basic Lease Information. Tenant shall indemnify, defend and hold Landlord harmless from and against all costs, expenses, attorneys’ fees, liens and other liability for commissions or other compensation claimed by any broker or agent claiming the same by, through, or under Tenant. The foregoing indemnity shall survive the expiration or earlier termination of the Lease.

 

(e)                                  Estoppel Certificates. From time to time, Tenant shall furnish to any party designated by Landlord, within ten (10) days after Landlord has made a request therefor, a certificate signed by Tenant confirming and containing such factual certifications and representations as to this Lease as Landlord may reasonably request. Unless otherwise required by Landlord’s Mortgagee or a prospective purchaser or mortgagee of the Building, the initial form of estoppel certificate to be signed by Tenant is attached hereto as Exhibit H.

 

(f)                                   Notices. All notices and other communications given pursuant to this Lease shall be in writing and shall be: 1) mailed by first class, United States Mail, postage prepaid, certified, with return receipt requested, and addressed to the parties hereto at the address specified in the Basic Lease Information; (2) hand delivered to the intended addressee; (3) sent by a nationally recognized overnight courier service; or (4) sent by facsimile transmission during Normal Business Hours followed by a copy of such notice sent in another manner permitted hereunder. All notices shall be effective upon the earlier to occur of actual receipt, one (1) Business Day following deposit with a nationally recognized overnight courier service, or three (3) days following deposit in the United States mail. The parties hereto may change their addresses by giving notice thereof to the other in conformity with this provision.

 

(g)                                  Separability. If any clause or provision of this Lease is illegal, invalid, or unenforceable under present or future laws, then the remainder of this Lease shall not be affected thereby and in lieu of such clause or provision, there shall be added as a part of this Lease a clause or provision as similar in terms to such illegal, invalid, or unenforceable clause or provision as may be possible and be legal, valid, and enforceable.

 

(h)                                 Amendments; Binding Effect. This Lease may not be amended except by instrument in writing signed by Landlord and Tenant. No provision of this Lease shall be deemed to have been waived by Landlord unless such waiver is in writing signed by Landlord, and no custom or practice which may evolve between the parties in the administration of the terms hereof shall waive or diminish the right of Landlord to insist upon the performance by Tenant in strict accordance with the terms hereof. The terms and conditions contained in this Lease shall inure to the benefit of and be binding upon the parties hereto, and upon their respective successors in interest and legal representatives, except as

 

26

 

otherwise herein expressly provided. This Lease is for the sole benefit of Landlord and Tenant, and, other than Landlord’s Mortgagee, no third party shall be deemed a third party beneficiary hereof.

 

(i)                                     Quiet Enjoyment. Provided Tenant has performed all of its obligations hereunder, Tenant shall peaceably and quietly hold and enjoy the Premises for the Term, without hindrance from Landlord or any party claiming by, through, or under Landlord, but not otherwise, subject to the terms and conditions of this Lease.

 

(j)                                    No Merger. There shall be no merger of the leasehold estate hereby created with the fee estate in the Premises or any part thereof if the same person acquires or holds, directly or indirectly, this Lease or any interest in this Lease and the fee estate in the leasehold Premises or any interest in such fee estate.

 

(k)                                 No Offer. The submission of this Lease to Tenant shall not be construed as an offer, and Tenant shall not have any rights under this Lease unless Landlord executes a copy of this Lease and delivers it to Tenant.

 

(l)                                     Entire Agreement. This Lease constitutes the entire agreement between Landlord and Tenant regarding the subject matter hereof and supersedes all oral statements and prior writings relating thereto. Except for those set forth in this Lease, no representations, warranties, or agreements have been made by Landlord or Tenant to the other with respect to this Lease or the obligations of Landlord or Tenant in connection therewith. The normal rule of construction that any ambiguities be resolved against the drafting party shall not apply to the interpretation of this Lease or any exhibits or amendments hereto.

 

(m)                             Waiver of Jury Trial. TO THE MAXIMUM EXTENT PERMITTED BY LAW, LANDLORD AND TENANT EACH WAIVE ANY RIGHT TO TRIAL BY JURY IN ANY LITIGATION OR TO HAVE A JURY PARTICIPATE IN RESOLVING ANY DISPUTE ARISING OUT OF OR WITH RESPECT TO THIS LEASE OR ANY OTHER INSTRUMENT, DOCUMENT OR AGREEMENT EXECUTED OR DELIVERED IN CONNECTION HEREWITH OR THE TRANSACTIONS RELATED HERETO.

 

(n)                                 Governing Law. This Lease shall be governed by and construed in accordance with the laws of the state in which the Premises are located.

 

(o)                                 Recording. Tenant shall not record this Lease or any memorandum of this Lease without the prior written consent of Landlord, which consent may be withheld or denied in the sole and absolute discretion of Landlord, and any recordation by Tenant shall be a material breach of this Lease. Tenant grants to Landlord a power of attorney to execute and record a release releasing any such recorded instrument of record that was recorded without the prior written consent of Landlord, which power of attorney is coupled with an interest and is non-revocable during the Term. Notwithstanding the above provisions of this clause (o), upon request by Tenant, Landlord shall execute a MA statutory form of Notice of Lease, which Landlord agrees Tenant may record with the Middlesex South District Registry of Deeds.

 

(p)                                 Joint and Several Liability. If Tenant is comprised of more than one (1) party, each such party shall be jointly and severally liable for Tenant’s obligations under this Lease. All unperformed obligations of Tenant hereunder not fully performed at the end of the Term shall survive the end of the Term, including payment obligations with respect to Rent and all obligations concerning the condition and repair of the Premises.

 

27

 

(q)                                 Financial Reports. Within fifteen (15) days after Landlord’s request, Tenant will furnish Tenant’s most recent audited financial statements (including any notes to them) to Landlord, or, if no such audited statements have been prepared, such other financial statements (and notes to them) as may have been prepared by an independent certified public accountant or, failing those, Tenant’s internally prepared financial statements. Tenant, however, shall not be required to deliver the financial statements required under this Section 26(q) more than once in any twelve (12) month period unless requested by Landlord’s Mortgagee or a prospective buyer or lender of the Building. Landlord will not disclose any aspect of Tenant’s financial statements that Tenant designates to Landlord as confidential except: (1) to Landlord’s Mortgagee or prospective mortgagees or purchasers of the Building, provided that said parties execute a confidentiality agreement prior to any disclosure; (2) to Landlord’s advisors and consultants, provided that said parties execute a confidentiality agreement prior to any disclosure; (3) in litigation between Landlord and Tenant; and (4) if required by court order. If Tenant is a publicly traded corporation, Tenant may satisfy its obligations hereunder by providing to Landlord Tenant’s most recent annual and quarterly reports. Upon Landlord’s request, Tenant will discuss its financial statements with Landlord. Landlord’s covenant not to disclose any aspects of Tenant’s financial statement is of material significance in the making of this Lease, and Tenant is specifically relying on Landlord’s agreement not to disclose such financial statements during the Term hereof.

 

(r)                                    Landlord’s Fees. Whenever Tenant requests Landlord to take any action not required of it hereunder or give any consent required or permitted under this Lease, Tenant will reimburse Landlord for Landlord’s reasonable, out-of-pocket costs payable to third parties and incurred by Landlord in reviewing the proposed action or consent, including reasonable attorneys’, engineers’ or architects’ fees, within thirty (30) days after Landlord’s delivery to Tenant of a statement of such costs. Tenant will be obligated to make such reimbursement without regard to whether Landlord consents to any such proposed action.

 

(s)                                   Telecommunications. Tenant and its telecommunications companies, including local exchange telecommunications companies and alternative access vendor services companies, shall have no right of access to and within the Building, for the installation and operation of telecommunications systems, including voice, video, data, Internet, and any other services provided over wire, fiber optic, microwave, wireless, and any other transmission systems (“Telecommunications Services”), for part or all of Tenant’s telecommunications within the Building and from the Building to any other location without Landlord’s prior written consent. All providers of Telecommunications Services shall be required to comply with the rules and regulations of the Building, applicable Laws and Landlord’s policies and practices for the Building. Tenant acknowledges that Landlord shall not be required to provide or arrange for any Telecommunications Services and that Landlord shall have no liability to any Tenant Party in connection with the installation, operation or maintenance of Telecommunications Services or any equipment or facilities relating thereto. Tenant, at its cost and for its own account, shall be solely responsible for obtaining all Telecommunications Services.

 

(t)                                    Representations and Warranties.

 

(i)                                     Tenant represents and warrants to, and covenants with, Landlord that neither Tenant nor any of its respective constituent owners or affiliates currently are, or shall be at any time during the Term hereof, in violation of any laws relating to terrorism or money laundering (collectively, the “Anti-Terrorism Laws”), including without limitation Executive Order No. 13224 on Terrorist Financing, effective September 24, 2001 and relating to Blocking Property and Prohibiting Transactions With Persons Who Commit, Threaten to Commit, or Support Terrorism (the “Executive Order”) and/or the Uniting and Strengthening America by Providing Appropriate Tools Required to Intercept and Obstruct Terrorism Act of 2001 (Public Law 107-56) (the “USA Patriot Act”).

 

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(ii)                                  Tenant covenants with Landlord that neither Tenant nor any of its respective constituent owners or affiliates is or shall be during the Term hereof a “Prohibited Person,” which is defined as follows: (A) a person or entity that is listed in the Annex to, or is otherwise subject to, the provisions of the Executive Order; (B) a person or entity owned or controlled by, or acting for or on behalf of, any person or entity that is listed in the Annex to, or is otherwise subject to the provisions of, the Executive Order; (C) a person or entity with whom Landlord is prohibited from dealing with or otherwise engaging in any transaction by any Anti-Terrorism Law, including without limitation the Executive Order and the USA Patriot Act; (D) a person or entity who commits, threatens or conspires to commit or support “terrorism” as defined in Section 3(d) of the Executive Order; (E) a person or entity that is named as a “specially designated national and blocked person” on the then-most current list published by the U.S. Treasury Department Office of Foreign Assets Control at its official website, https://www.treasury.gov/ofac/downloads/sdnlist.pdf, or at any replacement website or other replacement official publication of such list; or (F) a person or entity who is affiliated with a person or entity listed in items (A) through (E), above.

 

(iii)                               At any time and from time-to-time during the Term, Tenant shall deliver to Landlord, within ten (10) days after receipt of a written request therefor, a written certification or such other evidence reasonably acceptable to Landlord evidencing and confirming Tenant’s compliance with this Section 26(t).

 

(u)                                 Confidentiality. Tenant acknowledges that the terms and conditions of this Lease are to remain confidential for Landlord’s benefit, and may not be disclosed by Tenant to anyone, by any manner or means, directly or indirectly, without Landlord’s prior written consent. The consent by Landlord to any disclosures shall not be deemed to be a waiver on the part of Landlord of any prohibition against any future disclosure.

 

(v)                                 Authority. Tenant (if a corporation, partnership or other business entity) hereby represents and warrants to Landlord that Tenant is a duly formed and existing entity qualified to do business in the state in which the Premises are located, that Tenant has full right and authority to execute and deliver this Lease, and that each person signing on behalf of Tenant is authorized to do so.

 

(w)                               Adjacent Excavation. If an excavation shall be made upon land adjacent to the Building, or shall be authorized to be made, Tenant shall afford the person causing (or authorized to cause) such excavation access to the Premises for the purpose of doing such work as said person shall deem necessary to preserve or protect the Building or any portion thereof from injury or damage and to support the same by proper foundation, in all events without any claim for damages or indemnity against Landlord or diminution or abatement of Rent.

 

(x)                                 No Reliance. Each of the parties to this Lease has executed this Lease relying solely on its own judgment with the benefit of the advice of its own attorneys and/or brokers (or having decided to proceed without benefit of its own attorneys and/or brokers), and each party hereby disclaims reliance upon any statement or representation of the other party or any agent of such other party unless such statement or representation is expressly set forth in this Lease.

 

(y)                                 List of Exhibits. All exhibits and attachments attached hereto are incorporated herein by this reference.

 

Exhibit A -                                      Outline of Premises

Exhibit B -                                      Description of the Land

Exhibit C -                                      Additional Rent, Taxes and Insurance

Exhibit D -                                      Shell Condition Work

 

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Exhibit E -                                       Tenant Improvements; Landlord’s Allowance; Additional Landlord Allowance

Exhibit E-1                                   Contractor Rules and Regulations

Exhibit E-2                                   Energy & Sustainability Construction Guidelines and Requirements

Exhibit F -                                        Building Rules and Regulations

Exhibit G -                                      Form of Confirmation of Commencement Date Letter

Exhibit H -                                     Form of Tenant Estoppel Certificate

Exhibit I -                                          Parking

Exhibit J -                                          Extension Option/Rights of First Offer

Exhibit K -                                      Landlord’s Services

Exhibit L -                                       Moisture and Mold Control Provisions

Exhibit M -                                   Approved List of Issuing Banks

 

27.                               Other Provisions. LANDLORD AND TENANT EXPRESSLY DISCLAIM ANY IMPLIED WARRANTY THAT THE PREMISES ARE SUITABLE FOR TENANT’S INTENDED COMMERCIAL PURPOSE, AND, AS NOTED IN SECTION 4 OF THIS LEASE, TENANT’S OBLIGATION TO PAY RENT HEREUNDER IS NOT DEPENDENT UPON THE CONDITION OF THE PREMISES OR THE PERFORMANCE BY LANDLORD OF ITS OBLIGATIONS HEREUNDER, AND, EXCEPT AS OTHERWISE EXPRESSLY PROVIDED HEREIN, TENANT SHALL CONTINUE TO PAY THE RENT, WITHOUT ABATEMENT, DEMAND, SETOFF OR DEDUCTION, NOTWITHSTANDING ANY BREACH BY LANDLORD OF ITS DUTIES OR OBLIGATIONS HEREUNDER, WHETHER EXPRESS OR IMPLIED.

 

[SIGNATURES ON FOLLOWING PAGE]

 

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This Lease is executed on the respective dates set forth below, but for reference purposes, this Lease shall be dated as of the date first above written. If the execution date is left blank, this Lease shall be deemed executed as of the date first written above.

 

 

	
 
    	
LANDLORD:
    
	
 
    	
 
    
	
 
    	
55 CAMBRIDGE PARKWAY, LLC,
    
	
 
    	
a Delaware limited   liability company
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
By:
    	
Invesco ICRE   Massachusetts REIT Holdings, LLC,
    
	
 
    	
 
    	
its sole member
    
	
 
    	
 
    
	
 
    	
 
    	
By: 
    	
/s/ Kevin Johnson
    
	
 
    	
 
    	
Name:
    	
Kevin Johnson
    
	
 
    	
 
    	
Title:
    	
Vice President
    
	
 
    	
 
    
	
 
    	
 
    	
Execution Date: As of   March 28, 2016
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
TENANT:
    
	
 
    	
 
    
	
 
    	
CARGURUS, INC.
    
	
 
    	
a Delaware corporation
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/ E. Langley Steinert
    
	
 
    	
Name:
    	
E. Langley Steinert
    
	
 
    	
Title:
    	
CEO
    
	
 
    	
 
    	
 
    
	
 
    	
Execution Date: As of   March 11, 2016
    
						

 

31

 

EXHIBIT A

 

OUTLINE OF PREMISES

 

Exhibit A is intended only to show the general outline of the Premises as of the beginning of the Term of this Lease. The depiction of interior windows, cubicles, modules, furniture and equipment in this Exhibit is for illustrative purposes only, but does not mean that such items exist. Landlord is not required to provide, install or construct any such items. It does not in any way supersede any of Landlord’s rights set forth in the Lease with respect to arrangements and/or locations of public parts of the Building and changes in such arrangements and/or locations. It is not to be scaled; any measurements or distances shown should be taken as approximate. The inclusion of elevators, stairways electrical and mechanical closets, and other similar facilities for the benefit of occupants of the Building does not mean such items are part of the Premises.

 

 

 

EXIHIBIT A (Cont.)

 

 

A-2

 

EXHIBIT B

 

DESCRIPTION OF THE LAND

 

A parcel of land on the northwesterly side of Cambridge Parkway in Cambridge, Middlesex County, Massachusetts shown as Lot A on a plan entitled “Plan of Land of Trustees of Real Estate Investment Trust of America, Cambridge, Ma.,” dated October 13, 1982, prepared by Raymond C. Pressey, Inc. and recorded in Middlesex South District Registry of Deeds in Book 15241, Page 351, and bounded and described according to said plan as follows:

 

	
SOUTHEASTERLY
    	
 
    	
by Cambridge Parkway three hundred eighty-four and   fifty hundredths (384.50) feet;
    
	
 
    	
 
    	
 
    
	
SOUTHWESTERLY
    	
 
    	
by the other land of Real Estate Investment Trust of   America, one hundred seventy-five (175.00) feet;
    
	
 
    	
 
    	
 
    
	
NORTHWESTERLY
    	
 
    	
by Commercial Avenue, three hundred eighty-four and   fifty hundredths (384.50) feet; and
    
	
 
    	
 
    	
 
    
	
NORTHEASTERLY
    	
 
    	
by land now or formerly of the City of Cambridge, as   more particularly described in an order of taking recorded in Middlesex South   District Registry of Deeds in Book 14159, Page 51, one hundred   seventy-five (175.00) feet.
    

 

B-1

 

EXHIBIT C

 

ADDITIONAL RENT, TAXES, INSURANCE AND ELECTRICITY

 

1.             Additional Rent. Tenant shall pay to Landlord the amount (per each rentable square foot in the Premises) (“Additional Rent”) by which the annual Operating Costs (defined below) per rentable square foot in the Building for each year of the Term exceed the annual Operating Costs per rentable square foot in the Building for calendar year 2016 (the “Base Year”). Landlord may make a good faith estimate of the Additional Rent to be due by Tenant for any calendar year or part thereof during the Term. During each calendar year or partial calendar year of the Term after the Base Year, Tenant shall pay to Landlord, in advance concurrently with each monthly installment of Base Rent, an amount equal to the estimated Additional Rent for such calendar year or part thereof divided by the number of months therein. From time to time, Landlord may estimate and re-estimate the Additional Rent to be due by Tenant and deliver a copy of the estimate or re-estimate to Tenant. Thereafter, the monthly installments of Additional Rent payable by Tenant shall be appropriately adjusted in accordance with the estimations so that, by the end of die calendar year in question, Tenant shall have paid all of the Additional Rent as estimated by Landlord. Any amounts paid based on such an estimate shall be subject to adjustment as herein provided when actual Operating Costs are available for each calendar year. Operating Costs for the Base Year, for the purpose of comparisons of the Base Year with subsequent years only, shall be calculated so as to not include market-wide labor-rate increases due to extraordinary circumstances, including boycotts and strikes; utility rate increases due to extraordinary circumstances, including conservation surcharges, boycotts, embargos or other shortages; or amortized costs relating to capital improvements.

 

2.             Operating Costs. The term “Operating Costs” shall mean all expenses and disbursements (subject to the limitations set forth below) that Landlord incurs in connection with die ownership, operation, and maintenance of the Project, determined in accordance with sound accounting principles consistently applied, including the following costs: (a) wages and salaries of all on-site employees engaged in the management, operation, maintenance, repair or security of the Project (together with Landlord’s reasonable allocation of expenses of off-site employees who perform a portion of their services in connection with the operation, maintenance or security of the Project), including taxes, insurance and benefits relating thereto; (b) all supplies and materials used in the operation, maintenance, repair, replacement, and security of the Project; (c) costs for improvements made to the Project which, although capital in nature, are (i) expected to reduce the normal operating costs (including all utility costs) of the Project, as amortized using a commercially reasonable interest rate over the time period reasonably estimated by Landlord to recover the costs thereof taking into consideration the anticipated cost savings, as determined by Landlord using its good faith, commercially reasonable judgment, as well as (ii) capital improvements made in order to comply with any Law hereafter promulgated by any governmental authority or any interpretation hereafter rendered with respect to any existing Law, as amortized using a commercially reasonable interest rate over the useful economic life of such improvements as determined by Landlord in its reasonable discretion, as well as (iii) capital improvements made to improve the health, safety and welfare of the Building and its occupants, as amortized using a commercially reasonable interest rate over the useful economic life of such improvements as determined by Landlord in its reasonable discretion; (d) cost of all utilities; (e) repairs, replacements, and general maintenance of the Project; (f) fair market rental and other costs with respect to the management office for the Building; (g) service, maintenance and management contracts with independent contractors for the operation, maintenance, management, repair, replacement, or security of the Project; (h) all costs of, energy audits and commissioning, of die Building for the purpose of improving energy efficiency; and (i) all costs of maintaining, managing, and reporting and applying for energy efficiency and green certifications.

 

Operating Costs shall not include costs for: (1) repair, replacements and general maintenance paid by proceeds of insurance or by Tenant or other third parties; (2) interest, amortization or other payments

 

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on loans to Landlord; (3) depreciation; (4) leasing commissions; (5) legal expenses for services, other than those that benefit the Project tenants, as applicable (e.g., tax disputes); (6) renovating or otherwise improving leased premises of the Project or vacant space in the Project, as applicable; (7) Taxes and Insurance which are paid separately pursuant to Sections 3 and 4 below; (8) federal income taxes imposed on or measured by the income of Landlord from the operation of the Project; and (9) capital improvements made to the Building, other than the capital improvements described in Section 2(c) of this Exhibit C.

 

3.             Taxes. Tenant shall also pay Tenant’s Proportionate Share of any increase in Taxes for each year and partial year falling within the Term over the Taxes for the Base Year. For purposes of this Section 3 only, Base Year shall mean the period of July 1, 2016 through June 30, 2017. Except for the difference in the base year, Tenant shall also pay Tenant’s Proportionate Share of Taxes for each year and partial year falling within the Term. Tenant shall pay Tenant’s Proportionate Share of Taxes in the same manner as provided above for Tenant’s Proportionate Share of Operating Costs. “Taxes” shall mean taxes, assessments, and governmental charges or fees whether federal, state, county or municipal, and whether they be by taxing districts or authorities presently taxing or by others, subsequently created or otherwise, and any other taxes and assessments (including non-governmental assessments for common charges under a restrictive covenant or other private agreement that are not treated as part of Operating Costs) now or hereafter attributable to the Project (or its operation), excluding, however, penalties and interest thereon and federal and state taxes on income (if the present method of taxation changes so that in lieu of or in addition to the whole or any part of any Taxes, there is levied on Landlord a capital tax directly on the rents received therefrom or a franchise tax, assessment, or charge based, in whole or in part, upon such rents for the Project, then all such taxes, assessments, or charges, or the part thereof so based, shall be deemed to be included within the term “Taxes” for purposes hereof). Taxes shall include the costs of consultants retained in an effort to lower taxes and all costs incurred in disputing any taxes or in seeking to lower the tax valuation of the Project. For property tax purposes, to the extent allowed by Law, Tenant waives all rights to protest or appeal the appraised value of the Premises, as well as the Project, and all rights to receive notices of reappraisement.

 

4.             Insurance. Tenant shall also pay Tenant’s Proportionate Share of any increases in Insurance for each year and partial year falling within the Term over the Insurance for the Base Year described in Section 1. Tenant shall pay Tenant’s Proportionate Share of Insurance in the same manner as provided above for Tenant’s Proportionate Share of Operating Costs. “Insurance” shall mean property, liability and other insurance coverages carried by Landlord, including without limitation deductibles and risk retention programs and an allocation of a portion of the cost of blanket insurance policies maintained by Landlord and/or its affiliates.

 

5.             Operating Costs and Tax and Insurance Statement. By May 1 of each calendar year, or as soon thereafter as reasonably practicable, Landlord shall furnish to Tenant a statement of Operating Costs for the previous year, adjusted as provided in Section 6 of this Exhibit, and of the Taxes and Insurance for the previous year (the “Operating Costs, Tax and Insurance Statement”). If Tenant’s estimated payments of Operating Costs or Taxes or Insurance under this Exhibit C for the year covered by the Operating Costs, Tax and Insurance Statement exceed Tenant’s share of such items as indicated in the Operating Costs, Tax and Insurance Statement, then Landlord shall promptly credit or reimburse Tenant for such excess; likewise, if Tenant’s estimated payments of Operating Costs, Taxes or Insurance under this Exhibit C for such year are less than Tenant’s share of such items as indicated in the Operating Costs, Tax and Insurance Statement, then Tenant shall promptly pay Landlord such deficiency, notwithstanding that the Term has expired and Tenant has vacated the Premises. Landlord and Tenant are knowledgeable and experienced in commercial transactions and agree that the provisions of this Lease for determining charges, amounts and additional rent payable by Tenant are commercially reasonable and valid even though such methods may not state a precise mathematical formula for determining such charges.

 

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6.             Gross-Up. With respect to any calendar year or partial calendar year (including the Base Year) in which the Building is not occupied to the extent of 95% of the rentable area thereof, or Landlord is not supplying services to 95% of the rentable area thereof, the Operating Costs for such period shall, for the purposes hereof, be increased to the amount which would have been incurred had the Building been occupied to the extent of 95% of the rentable area thereof and Landlord had been supplying services to 95% of the rentable area thereof.

 

7.             Electricity. Tenant shall also make the electricity payments to Landlord in the manner described in Exhibit K of this Lease.

 

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EXHIBIT D

 

SHELL CONDITION WORK

 

DEMOLITION SCOPE | 55 CAMBRIDGE PARKWAY

 

ARCHITECTURAL

 

Remove and discard:

 

·                                          Partitions and other non-structural buildouts, including false columns, UON, all doors and hardware Tenant reserves the right to identify some or all of the doors for salvage and reuse. LL shall remove and store identified doors on site

 

·                                          Existing communicating stair - Tenant intends to reuse communicating stair. Landlord is to remove all stair finishes, railings, tread and riser finishes. Steel structure and gyp board below stair to remain.

 

·                                          All hung ceilings, including acoustic and GWB soffits

 

·                                          All millwork, including pantry

 

·                                          All finish flooring materials and substrates; take down to concrete slab (including restroom tile); remove all remaining adhesives. Existing concrete slab is to be structurally sound. Slab surface is to be delivered as is.

 

·                                          All wall base, including at perimeter

 

·                                          All toilet room steel partitions and accessories

 

·                                          All loose furnishings and office system furniture

 

Retain in place:

 

·                                          Perimeter GWB laminations

 

·                                          Restroom GWB partitions and entrance doors

 

·                                          Restroom plumbing (new fixtures will be installed at existing plumbing locations)

 

·                                          All column enclosures, enclosing building structural steel columns, shall remain

 

MECHANICAL, ELECTRICAL, PLUMBING, FIRE PROTECTION

 

Remove and discard:

 

·                                          All ductwork and associated diffusers/registers and controls and VAV’s. Existing HVAC duct trunk line is to remain for reuse by the tenant. LL is to remove all insulation from remaining trunk line. Tenant’s Engineer is to provide a sketch identifying the components to remain in place.

 

·                                          All light fixtures

 

·                                          All conduit, BX/Greenfield, and associated wiring with the exception of the perimeter

 

·                                          All low voltage cabling and devices, including security wiring

 

·                                          Pantry plumbing; remove back to riser

 

·                                          All restroom plumbing fixtures and fittings

 

·                                          All existing floor power boxes and stub ups (cores to be filled by Landlord)

 

Retain in place:

 

·                                          Existing electrical panels

 

·                                          Sprinkler mains, all branch piping is to remain. Landlord is to provide 100% sprinkler coverage per NFPA, w/ the sprinkler heads “turned up” at the completion of demolition and time of possession for the tenant.)

 

·                                          Restroom plumbing

 

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·                                          Existing air handlers and all other equipment in mechanical room

 

·                                          Existing HVAC duct trunk line is to remain for reuse by Tenant. Landlord is to remove all insulation from remaining trunk line. Tenant’s Engineer is to provide a sketch identifying the components to remain in place.

 

·                                          All fire alarm conduit, wiring, devices, and components are to remain for reuse by Tenant.

 

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EXHIBIT E

 

TENANT IMPROVEMENTS: LANDLORDS ALLOWANCE; 
 ADDITIONAL LANDLORD ALLOWANCE

 

This Exhibit E forms a part of that certain Office Lease Agreement (the “Lease”) by and between 55 Cambridge Parkway, LLC, a Delaware limited liability company (“Landlord”), and CarGurus LLC, a Massachusetts limited liability company (“Tenant”), to which this Exhibit is attached. If there is any conflict between this Exhibit and the Lease regarding the construction of the Tenant Improvements (hereinafter defined), this Exhibit shall govern. All capitalized terms referred to in this Exhibit shall have the same meaning provided in the Lease, except where expressly provided to the contrary in this Exhibit.

 

ARTICLE 1 DEFINITIONS

 

1.1.         Additional Definitions. Each of the following terms shall have the following meaning:

 

Architect: The architectural firm selected by Tenant and approved by Landlord in its good faith discretion to prepare the “Preliminary Plans” and “Final Plans” (as such terms are hereinafter defined).

 

Contractor: The general contractor selected by Tenant and approved by Landlord in its sole and absolute discretion to construct the Tenant Improvements. The general contractor must be licensed and bondable in the Commonwealth of Massachusetts. Tenant may request that Landlord approve three (3) or more Contractors prior to competitive bidding, in which case Tenant may select any one of the Contractors approved by Landlord.

 

Construction Contract: The construction contract to be entered into by Tenant and its Contractor in form, scope and substance satisfactory to Tenant.

 

Landlord’s Allowance: A total amount equal to One Million Six Hundred Three Thousand Thirty Five and No/100 Dollars ($1,603,035.00) to be paid by Landlord for the Construction Costs for the Tenant Improvements as provided in this Exhibit. Any unused portion of Landlord’s Allowance shall remain the property of Landlord, and Tenant shall have no interest in said funds.

 

Additional Landlord Allowance: A total amount equal to Seven Hundred Sixty Three Thousand Three Hundred Fifty and No/100 Dollars ($763,350.00) to be applied against the Construction Costs, the advanced portion of which shall be amortized over the initial Term of this Lease with interest on the unamortized portion at seven percent (7%) per annum, and paid by Tenant to Landlord in monthly installments with Tenant’s payment of each monthly installment of Base Rent until fully paid. Tenant shall have the right at any time during the term to prepay the then outstanding unamortized portion of the Additional Landlord Allowance without penalty or premium. Tenant shall have the right to elect to utilize the Additional Landlord Allowance by giving written notice to Landlord within thirty (30) days following Tenant’s commencement of construction of the Tenant Improvements. If so timely elected by Tenant, the portion of the Additional Landlord Allowance shall be disbursed subject to the same procedures and conditions applicable to the disbursement of the Landlord’s Allowance as described below.

 

Landlord’s Space Planning Allowance: A total amount equal to Three Thousand Fifty Three and 40/100 Dollars ($3,053.40) to be paid by Landlord toward the cost of the Space Planning Fees as provided in this Exhibit. Any unused portion of Landlord’s Space Planning Allowance shall remain the property of Landlord, and Tenant shall have no interest in said funds.

 

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Substantial Completion, Substantially Complete, and Substantially Completed (or similar phrase): The foregoing shall mean when the following have occurred or would have occurred but for any delay cause by Tenant:

 

(a)                                 Tenant has delivered to Landlord a certificate from the Architect, in a form reasonably approved by Landlord, that the Tenant Improvements have been Substantially Completed substantially in accordance with the Final Plans, except for “punch list” items which may be completed within thirty (30) days following the completion of the applicable punchlist pursuant to Section 4.2 below without impairing Tenant’s use of the Premises or a material portion thereof, and Landlord has approved of the work in its sole and absolute discretion; and

 

(b)                                 Tenant has obtained from the appropriate governmental authority a final certificate of occupancy (or all building permits with all inspections approved or the equivalent) and all other approvals and permits for the Premises permitting Tenant’s occupancy and use of the Premises for the Permitted Use under the Lease (a “Certificate of Occupancy”).

 

Tenant Improvements: The improvements to be constructed in the Premises in accordance with the Final Plans. Said work shall include architectural, mechanical and electrical work and life safety systems, and shall be in accordance with the criteria, procedures and schedules referred to in this Exhibit. The Tenant Improvements shall comply in all respects with all applicable Laws.

 

Construction Costs: All costs, expenses, fees, taxes and charges to construct the Tenant Improvements, including, without limitation, the following:

 

(1)                                 surveys, reports, environmental and other tests and investigations of the site and any improvements thereon;

 

(2)                                 architectural and engineering fees;

 

(3)                                 labor, materials, equipment and fixtures supplied by the Contractor, its subcontractors and/or materialmen, including, without limitation, charges for a job superintendent and project representative;

 

(4)                                 the furnishing and installation of all heating, ventilation and air conditioning duct work, terminal boxes, distributing defusers and accessories required for completing the heating, ventilation and air-conditioning system in the Premises, including costs of meter and key control for after-hour usage, if required by Landlord;

 

(5)                                 all electrical circuits, wiring, lighting fixtures, data cabling and tube outlets furnished and installed throughout the Premises, including costs of meters;

 

(6)                                 all window and floor coverings in the Premises, including, without limitation, all treatment and preparatory work required for the installation of floor coverings over the concrete or other structural floor;

 

(7)                                 all fire and life safety control systems, such as fire walls, wiring and accessories installed within the Premises;

 

(8)                                 all plumbing, fixtures, pipes and accessories installed within the Premises;

 

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(9)                                 fees charged by the city and/or county where the Building is located (including, without limitation, fees for building permits and approvals and plan checks) required for the work in the Premises;

 

(10)                          all taxes, fees, charges and levies by governmental and quasi-governmental agencies for authorization, approvals, licenses and permits; and all sales, use and excise taxes for the materials supplied and services rendered in connection with the installation and construction of the Tenant Improvements; and

 

(11)                          all costs and expenses incurred to comply with all Laws of any governmental authority for any work at the Project in order to construct the Tenant Improvements.

 

The term “Construction Costs” under this Exhibit shall not include (i) any fees, costs, expenses, compensation or other consideration payable to Tenant, or any of its officers, directors, employees or affiliates or (ii) the cost of any of Tenant’s furniture, artifacts, trade fixtures, telephone and computer systems and related facilities except as provided for above in clause (5), or equipment. Any fees or costs referred to in clauses (i) through (ii) above shall be paid by Tenant without resort to the Landlord’s Allowance.

 

ARTICLE 2 CONSTRUCTION OF TENANT IMPROVEMENTS

 

2.1.                            Preparation of Plans.

 

(a)                                 Preliminary Plans. As soon as is reasonably possible after the date of the Lease, Tenant shall submit to its Architect all additional information, including occupancy requirements for the Premises (“Information”), necessary to enable the Architect to prepare preliminary plans for the Tenant Improvements showing, among other things, all demising walls, corridors, entrances, exits, doors, interior design and partition, and the locations of all display and storage rooms and bathrooms. As soon as is commercially reasonable after the date hereof, Tenant shall cause the Architect to prepare preliminary plans for the Tenant Improvements and shall deliver two copies of same to Landlord for its review and written approval in its good faith discretion. Within ten (10) days after receipt of the preliminary plans, Landlord shall notify Tenant in writing that (i) Landlord approves of such preliminary plans or (ii) Landlord disapproves of such preliminary plans, the basis for disapproval and the changes requested by Landlord. Tenant shall cause the preliminary plans to be revised and shall submit the revised plans to Landlord for its review and approval as provided in this section. After approval of the preliminary plans as provided above, the preliminary plans shall be referred to as the “Preliminary Plans.”

 

(b)                                 Final Plans. Tenant shall cause the Architect to prepare final working drawings, which shall be consistent with the Preliminary Plans, compatible with the design, construction and equipment of the Building, comply with all applicable Laws, capable of logical measurement and construction, and contain all such information as may be required for obtaining all permits and other governmental approvals for the construction of the Tenant Improvements (the “Working Drawings”). As soon as is commercially reasonable after the Preliminary Plans are approved by the parties as provided above, Tenant shall submit two copies of the Working Drawings to Landlord for its review and approval in its good faith discretion. Within ten (10) days after receipt of the Working Drawings, Landlord shall notify Tenant in writing that (i) Landlord approves of such Working Drawings, or (ii) Landlord disapproves of such Working Drawings, the basis for disapproval and the changes requested by Landlord. Tenant shall cause the Working Drawings to be revised and shall submit the revised Working Drawings to Landlord for its review and approval as provided in this section. The Working Drawings approved in writing by the parties shall be referred to as the “Final Plans.”

 

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(c)                                  General. It is the responsibility of Tenant to assure that the Final Plans and the Tenant Improvements constructed thereunder conform to all applicable Laws. Tenant shall submit to Landlord one (I) reproducible and four (4) prints of the Final Plans and, if applicable, an electronic unlocked version in CAD format.

 

2.2.                            Selection and Approval of Certain Contractors. Any subcontractor performing any work on the life safety or alarm systems or work affecting the roof shall be subject to Landlord’s prior written approval in its sole and absolute discretion and Landlord may require the Tenant use Landlord’s contractor or a specific subcontractor for any such work. Landlord shall provide written notice of approval or disapproval within five (5) Business Days after Tenant’s request for such approval. The construction contract shall require, among other things, that the Contractor (a) obtain and deliver to Landlord evidence of insurance required by Landlord, (b) execute, obtain and deliver to Tenant within ten (10) days after the date of Substantial Completion lien waivers from the Contractor and all of its subcontractors holding contracts in excess of $10,000 (“Major Subcontractors”) and suppliers holding contracts in excess of $10,000, and (c) monthly progress payments, with a ten percent (10%) retention until the construction is fifty (50%) complete.

 

2.3.                            Information Provided by Landlord. Acceptance or approval of any plan, drawing or specification, including, without limitation, the Preliminary Plans and the Final Plans, by Landlord shall not constitute the assumption of any responsibility by Landlord for the accuracy or sufficiency of such plans and materials and Tenant shall be solely responsible therefor. Tenant agrees and understands that the review of all plans pursuant to the Lease or this Exhibit by Landlord is to protect the interests of Landlord in the Building, and Landlord shall not be the guarantor of, nor be responsible for, the correctness, completeness or accuracy of any such plans or compliance of such plans with applicable Laws. Any information that may have been furnished to Tenant by Landlord or others about the mechanical, electrical, structural, plumbing or geological (including soil and sub-soil) characteristics of the Building or Project (hereinafter referred to as the “Site Characteristics”) are for Tenant’s convenience only, and Landlord does not represent or warrant that the Site Characteristics are accurate, complete or correct or that the Site Characteristics are as indicated. Any information that has been furnished by Landlord to Tenant has been delivered on the expressed condition and understanding that Tenant will independently verify whether such information is accurate, complete or correct and not rely on such information provided by Landlord.

 

2.4.                            No Responsibility of Landlord. Landlord’s approval of any plans, including, without limitation, the Preliminary Plans or the Final Plans, shall not: (i) constitute an opinion or agreement by Landlord that such plans and Tenant Improvements are in compliance with all applicable Laws, (ii) impose any present or future liability on Landlord, including, without limitation, with respect to the Building’s Structure and/or Building’s Systems; (iii) constitute a waiver of Landlord’s rights hereunder or under the Lease or this Exhibit except that Landlord shall be bound by any approval given in accordance with the Lease or this Exhibit; (iv) impose on Landlord any responsibility for a design and/or construction defect or fault in the Tenant Improvements; or (v) constitute a representation or warranty regarding the accuracy, completeness or correctness thereof.

 

2.5.                            Changes. After approval of the Preliminary Plans or Final Plans by Landlord and Tenant, any changes in the Preliminary Plans or Final Plans shall require the prior written consent of Landlord which shall not be unreasonably withheld, delayed or conditioned and the parties shall follow the same process as was required under Section 2.1 for approval of plans. Any change requested by Tenant that is approved in writing by Landlord shall be prepared by die Architect and shall be subject to the review and approval of Landlord’s architect which shall not be unreasonably withheld, delayed or conditioned . The cost of such changes, including the cost to revise such plans, obtain any additional permits and construct

 

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any additional improvements required as a result thereof, and the cost for materials and labor,                    shall be included as part of the Construction Costs for the Tenant Improvements.

 

2.6.                            Construction Budget for Tenant Improvements. After approval of the Final Plans by Landlord and Tenant as provided above, Tenant shall prepare a detailed estimate of the Construction Costs for the Tenant Improvements (the “Construction Budget”). Tenant shall deliver a copy of the Construction Budget to Landlord for Landlord’s approval, which shall not be unreasonably withheld, conditioned or delayed.

 

2.7.                            Building Permits and Approvals. Not later than fifteen (15) days after approval by Landlord and Tenant of the Final Plans and Construction Budget as provided above, Tenant or its Contractor shall submit the Final Plans to the appropriate governmental body for plan checking and all building permits and other governmental and quasi-governmental approvals.

 

2.8.                            Conduct of Work. Tenant shall confine the construction activity to within the Premises as much as possible and shall work in an orderly manner removing trash and debris from the Premises on a daily basis. At no time will pipes, wires, boards or other construction materials cross public areas where harm could be caused to the public. All such work shall be undertaken in strict compliance with all applicable Laws and this Lease. If Tenant fails to comply with these requirements, Landlord shall have the right, but not the obligation, to cause remedial action (at Tenant’s cost) as deemed necessary by Landlord to protect the public. Tenant shall complete construction of the Tenant Improvements free and clear of all liens, security interests and encumbrances of any kind.

 

(a)                                 Pre-construction Submittals to Landlord. Prior to the commencement of construction, Tenant shall submit the following items to Landlord:

 

(1)                                 A certificate setting forth the proposed commencement date of construction and the estimated completion dates of construction work, fixturing work and projected date of Substantial Completion;

 

(2)                                 Certificates of all insurance required under the Lease and this Exhibit; and

 

(3)                                 Copies of all building permits, and all other permits and approvals required by governmental agencies to construct the Tenant Improvements;

 

(b)                                 Delays. Tenant shall, with reasonable diligence, prosecute construction of the Tenant Improvements to complete all work by the Commencement Date. Any delay in completing such work, including any delay as a result of governmental delays, force majeure and other events beyond the control of Tenant, excepting only acts or failures to act of Landlord or persons claiming under Landlord shall not extend or delay the time for the commencement of payment Rent or any other sum under the Lease.

 

(c)                                  Correction of Work. Landlord may reject any portion of the Tenant Improvements which is not in material conformity with the Final Plans. Landlord shall not be responsible for correcting the portions of the Tenant Improvements which were defective or not in compliance with the Final Plans; all such work shall be the responsibility of Tenant at its sole cost and expense.

 

2.9.                            Copy of Record set of Plans. At the conclusion of construction: (i) Tenant shall cause the Architect and Contractor (A) to update the Final Plans as necessary to reflect all changes made to the Final Plans during the course of construction, (B) to certify to the best of their knowledge that the

 

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“record-set” of as-built drawings are true and correct, which certification shall survive the expiration or termination of this Lease, and (C) to deliver to Landlord two (2) sets of copies of such record set of drawings within ninety (90) days following issuance of a Certificate of Occupancy for the Premises; and (ii) Tenant shall deliver to Landlord a copy of all signed building permits and certificates of occupancy, and all warranties, guaranties, and operating manuals and information relating to the improvements, equipment and systems in the Premises.

 

2.10.                     Tenant’s Parties and Insurance. The Contractor and all subcontractors, laborers, materialmen, and suppliers used by Tenant collectively shall be referred to in this Exhibit E as “Tenant’s Parties”.

 

(a)                                 Indemnity. Tenant’s indemnity of Landlord as set forth in the Lease shall also apply with respect to any and all costs, losses, damages, injuries and liabilities related in any way to any act or omission of Tenant or Tenant’s Parties, or any one directly or indirectly employed by any of them, or in connection with Tenant’s non-payment of any amount arising out of the Tenant Improvements and/or Tenant’s disapproval of all or any portion of any request for payment.

 

(b)                                 Requirements of Tenant’s Parties. Each of Tenant’s Parties shall guarantee to Tenant and shall be requested to also guarantee for the benefit of Landlord that the portion of the Tenant Improvements for which it is responsible shall be free from any defects in workmanship and materials for a period of not less than one (1) year from the date of completion thereof. Each of Tenant’s Parties shall be responsible for the replacement or repair, without additional charge, of all work done or furnished in accordance with its contract that shall become defective within one (1) year after the later to occur of (i) completion of the work performed by such contractor or subcontractors, and (ii) the date when the Tenant Improvements have been Substantially Completed. The correction of such work shall include, without additional charge, all additional expenses and damages incurred in connection with such removal or replacement of all or any part of the Tenant Improvements, and/or the Building and/or Common Areas that may be damaged or disturbed thereby. All such warranties or guarantees as to material or workmanship of or with respect to the Tenant Improvements shall be contained in the construction contract or subcontract and shall be written such that such guarantees or warranties shall inure to the benefit of Tenant and shall be requested to inure to the benefit of Landlord, as their respective interests may appear, so as to be directly enforced by either.

 

(c)                                  Insurance Requirements. In addition to the insurance requirements set forth in the Lease, Tenant shall comply with the following requirements:

 

(1)                                 General Coverages. All of Tenant’s Parties shall carry worker’s compensation insurance covering all of their respective employees, and shall also carry commercial liability insurance, including property damage, all with limits, in form and with companies as are required to be carried by Tenant as set forth in the Lease.

 

(2)                                 Special Coverage. Tenant’s Contractor, or in the case of a construction management contract Tenant’s Major Subconractors shall carry “Builder’s All Risk” insurance in an amount approved by Landlord covering the construction of the Tenant Improvements, and such other insurance as Landlord may require. Such insurance shall be in amounts and shall include such extended coverage endorsements including the requirement that all of Tenant’s Parties shall carry excess liability and Products and Completed Operation Coverage insurance, each in amounts not less than $1,000,000 per incident, $2,000,000 in aggregate, and in form and with companies as are required to be carried by Tenant as set forth in the Lease.

 

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(3)                                 General Terms. Certificates for all insurance carried pursuant to the foregoing sections shall be delivered to Landlord before the commencement of construction of the Tenant Improvements and before the Contractor’s equipment is moved onto the site. All such policies of insurance must contain a provision that the company writing said policy will give Landlord thirty (30) days’ prior written notice of any cancellation or lapse of the effective date or any reduction in the amounts of such insurance. In the event that the Tenant Improvements are damaged by any cause during the course of the construction thereof, Tenant shall immediately repair the same at Tenant’s sole cost and expense. Tenant’s Parties shall maintain all of the foregoing insurance coverage in force until the Tenant Improvements are fully completed except for any Products and Completed Operation Coverage insurance required by Landlord, which is to be maintained for six (6) years following completion of the work and acceptance by Landlord and Tenant. All policies carried under this section shall insure Landlord and Tenant, as their interests may appear, as well as Contractor and Tenant’s Parties. All insurance, except Workers’ Compensation, maintained by Tenant’s Parties shall preclude or waive subrogation claims by the insurer against anyone insured thereunder. Such insurance shall provide that it is primary insurance as respects the Landlord and that any other insurance maintained by Landlord is excess and noncontributing with the insurance required hereunder. The requirements for the foregoing insurance shall not derogate from the provisions for indemnification of Landlord by Tenant under the Lease or this Exhibit.

 

2.11.                     Labor Matters. Tenant shall perform or cause Tenant’s Contractor to perform all work in the making and/or installation of any repairs, alterations or improvements in a manner so as to avoid any labor dispute which causes or is likely to cause stoppage or impairment of work or delivery service or any other services in die Project. In the event there shall be any such stoppage or impairment as the result of any such labor dispute or potential labor dispute caused by Tenant’s Contractor, Tenant shall immediately undertake such actions as may be necessary to eliminate such dispute or potential dispute, including, but not limited to, (a) removing all disputants from the job site until such time as the labor dispute no longer exists, (b) seeking an injunction in the event of a breach of contract between Tenant and Tenant’s contractor, and (c) filing appropriate unfair labor practice charges in the event of a union jurisdictional dispute.

 

2.12.                     Temporary Facilities During Construction. Tenant shall obtain in its name and pay for all temporary utility facilities, and the removal of debris, as necessary and required in connection with the construction of the Tenant Improvements. Storage of Tenant’s contractors’ construction material, tools, equipment and debris shall be confined to die Premises and any other areas which may be designated for such purposes by Landlord. Landlord shall not be responsible for any loss or damage to Tenant’s and/or Tenant’s contractors’ equipment. In no event shall any materials or debris be stored in the malls or service or exit corridors of the Project.

 

2.13.                     Miscellaneous. The Tenant Improvements shall be subject to the inspection and approval of Landlord and its supervisory personnel. All contractors engaged by Tenant shall be bondable, licensed contractors, possessing good labor relations, capable of performing quality workmanship.

 

2.14.                     Construction Management Fee. Landlord, or an agent of Landlord, shall provide construction management services in connection with the construction of the Tenant Improvements and the change orders. Such construction management services shall be performed for a fee (the “Construction Management Fee”) equal to one percent (1%) of die amount of the Construction Costs for the Tenant Improvements, including the costs of any permits and approvals associated therewith. Landlord shall deduct from Landlord’s Allowance and pay its agent the amount of Construction Management Fee on a monthly basis prorated over the duration of construction of the Tenant Improvements. Tenant shall be responsible for payment of the Construction Management Fee to the extent Construction Costs exceed the Landlord’s Allowance, provided that Landlord shall deduct payments from amounts otherwise to be advance as the Additional Landlord Allowance.

 

E-7

 

ARTICLE 3 PAYMENT OF CONSTRUCTION COSTS

 

3.1.                            Payment of Construction Costs. Tenant shall pay for the Construction Costs for the Tenant Improvements, except as provided in the next sentence. Landlord shall only be responsible to Tenant for payment of the Construction Costs for the Tenant Improvements up to the lesser of the (a) actual Construction Costs for the Tenant Improvements, and (b) amount of the Landlord’s Allowance (and any portion of die Additional Landlord Allowance sought to be utilized by Tenant under the above provisions of this Exhibit E) (the lesser of (a) and (b) shall be referred to herein as “Landlord’s Maximum Construction Cost Obligation”). If the aggregate Construction Costs for the Tenant Improvements are greater than Landlord’s Maximum Construction Cost Obligation, then Tenant shall be solely responsible for such additional costs above Landlord’s Maximum Construction Cost Obligation.

 

3.2.                            Payment By Landlord of Landlord’s Allowance.

 

(a)                                 Payment by Landlord of Landlord’s Allowance. So long as there shall not then be an Event of Default of Tenant under the Lease and the below conditions for each installment of the Landlord’s Allowance (which term through this Section 3.2(a) shall include any portion of the Additional Landlord Allowance sought to be utilized by Tenant under the above provisions of this Exhibit E) are satisfied as set forth below, the Landlord’s Allowance shall be disbursed by Landlord, based upon requests for payment submitted by Tenant upon receipt of then appropriate invoices and forms required and submitted by Tenant not more often than once per month (except if applicable, in the case of the final disbursement of the Landlord’s Allowance); provided, however, that in no event shall Landlord be obligated to disburse to Tenant in the aggregate for Construction Costs for the Tenant Improvements more than Landlord’s Maximum Construction Cost Obligation. Each request for payment by Tenant shall be accompanied by a written certification satisfactory to Landlord by the Architect that all work up to the date of the request for payment has been completed in accordance with die Schedule of Values contained in Tenant’s construction contract(s) with the Contractor, along with releases (partial or complete) of liens from all of Tenant’s contractors and subcontractors for all work performed and materials furnished up to the date of Tenant’s immediately prior request for payment (and Tenant’s final request for payment shall also be accompanied by the applicable items required below under clause (b) of this Section 3.2 below), along with any other supporting documentation reasonably required by Landlord in connection therewith and die calculation of retainage provided for in the construction contract. Upon receipt of each applicable complete payment request by Tenant, Landlord shall pay to Tenant, within twenty-one (21) days after submission of such complete payment request to Landlord, the amount of such request for payment; provided, however, that Landlord’s aggregate obligation to pay for such requests for payment shall in no event exceed Landlord’s Maximum Construction Cost Obligation less any retainage withheld pursuant to the Construction Contract. Upon final completion of the Tenant Improvements and receipt by Landlord of the items required under clause (b) of this Section 3.2 below, Landlord shall pay to Tenant, within twenty-one (21) days following Tenant’s written request, the remaining unadvanced retainage portion of Landlord’s Maximum Construction Cost Obligation; provided, however, that the retainage shall not have to be released by Landlord until the punchlist items have been completed as provided in Section 4.2 below. Any and all costs for the construction of the Tenant Improvements in excess of the Landlord’s Maximum Construction Cost Obligation shall be paid by Tenant to the Contractor and other applicable contractors, subcontractors, and material suppliers. Landlord reserves the right to make any payment (or portion thereof) of Landlord’s Maximum Construction Cost Obligation payable jointly to Tenant and the Contractor (or subcontractor or supplier) or directly to the Contractor or any subcontractor or supplier.

 

(b)                                 The final disbursement of Landlord’s Maximum Construction Cost Obligation by Landlord shall be subject to Tenant delivering to Landlord: (i) the final Certificate of Occupancy for the Premises, (ii) copies of all applicable building permits and inspection approvals reflecting final sign-off

 

E-8

 

by the local governmental authority with respect to the Tenant Improvements, (iii) a copy of the as-built Final Plans for the Tenant Improvements, (iv) unconditional lien waivers from the Contractor and all Major Subcontractors and suppliers for the Tenant Improvements and Tenant’s furniture, fixture and equipment in the Premises, (v) receipt of the Architect’s certificate for the Tenant Improvements referred to in the definition of Substantial Completion in this Exhibit,

 

(c)                                  In no event shall Landlord be obligated to reimburse any portion of the Landlord’s Maximum Construction Cost Obligation that Tenant requests from Landlord after the one (1) year anniversary of the Base Rent Commencement Date.

 

3.3.                            Payment by Landlord of Landlord’s Space Planning Allowance. So long as there shall not then be an Event of Default of Tenant under die Lease, within sixty (60) days following Landlord’s receipt of invoices evidencing such Space Planning Fees, Landlord shall reimburse Tenant for the Space Planning Fees actually incurred by Tenant up to an amount not to exceed the Landlord’s Space Planning Allowance.

 

ARTICLE 4 GENERAL PROVISIONS

 

4.1.                            Bonds. Upon the request of Landlord prior to commencing construction of the Tenant Improvements, Tenant shall deliver to Landlord certified copies of a payment and performance bond issued by a surety company authorized to do business in the Commonwealth of Massachusetts in a principal amount not less than the full amount of the Construction Costs, issued on behalf of Tenant’s Contractor, naming Tenant and Landlord (and if requested by Landlord, Landlord’s Mortgagee under any Mortgage or other financing instrument affecting the Project or any portion thereof) as dual obligees. Notwithstanding the delivery by Tenant of such bond, Tenant shall pay promptly for all labor and materials supplied to Tenant in connection with the construction of the Tenant Improvements, shall not cause or permit any liens for such labor or materials to attach to the Land or the Building, and shall bond or discharge any such lien which may be filed or recorded except for any lien caused by any action of Landlord or any person claiming under Landlord within fifteen (15) days after Tenant receives actual notice of such filing or recording.

 

4.2.                            Completion of Punchlist Items. In or within seven (7) Business Days following Substantial Completion of the Tenant Improvements, the parties shall schedule a meeting(s) to jointly inspect the Premises and the Tenant Improvements in order to identify those incomplete items or unfinished details that will be part of the punch list for the Tenant Improvements. Such punch list items shall be completed by Tenant as soon as practicable thereafter and in any event not later than thirty (30) days following the completion of the applicable punchlist (except for such item(s) that, by its nature or due to circumstances beyond the reasonable control of the party charged with doing such work, cannot be completed within such 30 day period).

 

4.3.                            Tenant’s Representative. Tenant hereby authorizes Mark Hopkins of Winstanley Construction, 150 Baker Avenue, Concord, MA, as Tenant’s representative to act on its behalf and represents its interests with respect to all matters which pertain to the construction of Tenant Improvements, and to make decisions binding upon Tenant with respect to such matters.

 

E-9

 

EXHIBIT E-1

 

CONTRACTOR RULES AND REGULATIONS

 

Any and all improvements, alterations or additions performed by Tenant will be performed in accordance with this Exhibit E-1, and any modifications thereto by Landlord, notwithstanding any more permissive local building codes or ordinances.

 

1.                                      WORK APPROVAL

 

The general contractor (“Contractor”) and all subcontractors must be approved to conduct their trades in the jurisdiction in which the Building is located by any and all governmental entities with such authority. Tenant or Contractor must provide Landlord with names, addresses and phone numbers for all subcontractors prior to commencement of work by the subcontractor. Construction drawings must be approved by Landlord prior to the start of construction. All projects shall be reviewed for potential impact to reduction targets and environmental programs. An agent or representative of Contractor must be present on the site at all times when work is in process.

 

2.                                      INSURANCE

 

Prior to commencement of work, Contractor shall provide to Landlord a certificate of insurance in the form of an ACORD certificate with the approved limits of coverage and naming Landlord and the Building manager as additional insureds.

 

3.                                      PERMITS

 

Permits and licenses necessary for the onset of all work shall be secured and paid for by Contractor and posted as required by applicable law.

 

4.                                      INSPECTIONS

 

All inspections which must be performed by testing any or all of the life safety system, e.g., alarms, annunciator, voice activated, strobe lights, etc., must be performed prior to 7:00 a.m. or after 6:00 p.m., and the on-site engineer must be present. At least 48 hours notice must be provided to the Building manager and the on-site engineer advising that an inspection has been requested.

 

5.                                      ELEVATORS

 

The use of the freight elevator for deliveries and removals shall be scheduled in advance by Contractor with the Building engineer’s office for the transfer of all construction materials, tools, and trash to and from the construction floor. Passenger elevators shall not be used for these purposes. The elevator walls and floor shall be protected at all times during Contractor’s use. From time to time, Contractor may be required to share the freight elevator with the cleaning crew, other tenants, etc. Large transfers of materials, whether for deliveries or removals, must be done prior to 7:00 a.m. or after 6:00 p.m. No deliveries of any kind or nature shall be brought in through the front door of the Building at any time.

 

6.                                      NON-CONSTRUCTION AREAS

 

Contractor shall take all necessary precautions to protect all walls, carpets, floors, furniture, fixtures and equipment outside of the work area and shall repair or replace damaged property without cost to Landlord. Masonite must be placed as a walkway on the public corridors from the freight elevator to the

 

E-1-1

 

construction site to protect the carpet and/or flooring. Common area carpet and flooring protection is to be used and removed daily and the carpet and flooring vacuumed or dust mopped, whichever is appropriate, on a daily basis.

 

7.                                      EROSION AND SEDIMENT CONTROL

 

Contractor agrees to provide a management plan prior to any exterior ground work being performed to prevent loss of soil during construction by stormwater runoff and/or wind erosion, including protecting topsoil by stockpiling for reuse, preventing sedimentation of storm sewer or receiving streams, and preventing polluting the air with dust and particulate matter. Contractor shall log building operations and maintenance activity to ensure that the plan has been followed.

 

8.                                      GREEN BUILDINGS

 

Contractor agrees to use reasonable efforts to incorporate Sustainability Standards into the preparation of the Plans and Specifications, including, without limitation, those “Green Construction Guidelines & Requirements,” attached hereto as Exhibit E-2, when such compliance will not cause a material increase in Construction Costs.

 

9.                                      WATER AND ELECTRICITY

 

Sources of water and electricity will be furnished to Contractor without cost, in reasonable quantities for use in lighting, power tools, drinking water, water for testing, etc. “Reasonable quantities” will be determined on a case-by-case basis but are generally intended to mean quantities comparable to the water and electrical demand Tenant would use upon taking occupancy. Contractor shall make all connections, furnish any necessary extensions, and remove same upon completion of work.

 

10.                               DEMOLITION AND DUSTY WORK

 

Demolition of an area in excess of 100 square feet must be performed before 7:00 a.m. or after 6:00 p.m. Contractor shall notify the Building engineer’s office at least one full Business Day prior to commencement of extremely dusty work (sheet rock cutting, sanding, extensive sweeping, etc.) so arrangements can be made for additional filtering capacity on the affected HVAC equipment. Failure to make such notification will result in Contractor incurring the costs to return the equipment to its proper condition. All lights must be covered during high dust construction due to a plenum return air system.

 

11.                               CONSTRUCTION MANAGEMENT PLAN FOR INDOOR AIR QUALITY

 

Contractor agrees to develop and implement an Indoor Air Quality (IAQ) Management Plan for the construction and occupancy phases of the area being built out as follows:

 

o                                    During construction, meet or exceed the recommended Design Approaches of the Sheet Metal and Air Conditioning National Contractors Association (SMACNA) IAQ Guideline for Occupied Buildings Under Construction, 1995, Chapter 3.

 

o                                    Protect stored on-site or installed absorptive materials from moisture damage.

 

o                                    If air handlers must be used during construction, use filtration media with a Minimum Efficiency Reporting Value (MERV) of 8 at each return air grill, as determined by ASHRAE 52.2-1999.

 

o                                    Replace all filtration media immediately prior to occupancy.

 

                                  Make every reasonable effort to minimize the off-gassing of volatile organic compounds used in construction materials within the building. Efforts may include the use of no-and low-VOC

 

E-1-2

 

products and materials, allowing products to off-gas before being brought into the building, and flushing out the space with outside air or air purifiers.

 

12.                               WATER USE EFFICIENCY

 

Contractor agrees to comply with the following:

 

o                                    Maintain maximum fixture water efficiency within the Building to reduce the burden on potable water supply and wastewater systems.

 

o                                    Keep fire systems, domestic water systems, landscape irrigation systems as separate systems to be maintained and metered separately. Modifications to the water systems must maintain the integrity of these three systems.

 

o                                    Submeter process water used directly by tenant and for the sole benefit of tenant.

 

o                                    Irrigation lines are not to be connected to domestic supply lines.

 

13.                               REMOVAL OF WASTE MATERIALS

 

Any and all existing building materials removed and not reused in the construction shall be disposed of by Contractor as waste or unwanted materials, unless otherwise directed by the Building manager.

 

Contractor shall comply with all laws and Landlord’s waste and recycling practices. Contractor shall at all times keep areas outside the work area free from waste material, rubbish and debris and shall remove waste materials from the Building on a daily basis.

 

14.                               CLEANUP

 

Upon construction completion, Contractor shall remove all debris and surplus material and thoroughly clean the work area and any common areas impacted by the work.

 

15.                               HOUSEKEEPING PRACTICES

 

Contractor agrees to comply with Landlord’s cleaning and maintenance practices.

 

16.                               MATERIAL SAFETY DATA SHEETS (MSDS)

 

Contractor agrees to provide the Building manager with at least 72 hours advance notice of all chemicals to be used on site through written notice and delivery of MSDS sheets.

 

17.                               WORKING HOURS

 

Standard construction hours are 6:30 a.m. - 5:00 p.m. The Building engineer must be notified at least two full Business Days in advance of any work that may disrupt normal business operations, e.g., drilling or cutting of the concrete floor slab. The Building manager reserves the right to determine what construction work is considered inappropriate for normal business hours. Work performed after standard construction hours requires an on-site engineer, who shall be billed at the then overtime rate, payable by Contractor.

 

18.                               WORKER CONDUCT

 

Contractor and subcontractors are to use care and consideration for others in the Building when using any public areas. No abusive language or actions on the part of the workers will be tolerated. It will be the responsibility of Contractor to enforce this regulation on a day-to-day basis. Contractor and subcontractors shall remain in the designated construction area so as not to unnecessarily interrupt other

 

E-1-3

 

tenants. No sleeveless shirts are allowed. Long pants and proper work shoes are required. All workers must wear company identification.

 

19.                               CONSTRUCTION INSPECTIONS

 

Contractor is to perform a thorough inspection of all common areas to which it requires access prior to construction to document existing Building conditions. Upon completion of work, if necessary, Contractor shall return these areas to the same condition in which they were originally viewed. Any damage caused by Contractor shall be corrected at its sole cost.

 

20.                               SIGNAGE

 

Contractor or subcontractor signage may not be displayed in the Building common areas or on any of the window glass.

 

21.                               POSTING OF RULES AND REGULATIONS

 

A copy of these rules and regulations must be posted on the job site in a manner allowing easy access by all workers. It is Contractor’s responsibility to instruct all workers, including subcontractors, to familiarize themselves with these rules and regulations.

 

22.                               INSURANCE REQUIREMENTS

 

Contractor will provide and maintain at its own expense the following minimum insurance:

 

(a)                                 Worker’s Compensation for statutory limits in compliance with applicable State and Federal laws.

 

(b)                                 Comprehensive General Liability with limits not less than $5,000,000 combined single limit per occurrence for Bodily Injury and Property Damage.

 

(c)                                  Automobile liability including owned, non-owned and hired automobiles with limits not less than:

 

	
Bodily Injury
    	
 
    	
$500,000 each person
    
	
 
    	
 
    	
$500,000 each accident
    
	
Property Damage
    	
 
    	
$500,000 each accident
    

 

23.                               CERTIFICATE OF INSURANCE

 

NAMED INSUREDS:                                                                 , OWNER, ANY BUILDING MANAGER FOR OWNER, AND ANY MORTGAGEE AND/OR GROUND LESSOR OF THE BUILDING AND/OR THE LAND

 

Certificates of Insurance in the form of an ACORD 25-S certificate evidencing the required coverages and naming the additional insureds as stated MUST be furnished thirty (30) days prior to starting the contract work. Each certificate will contain a provision that no cancellation or material change in the policies will be effective except upon thirty (30) days prior written notice.

 

E-1-4

 

24.                               EMERGENCY PROCEDURES

 

In case of emergency, Contractor shall call the police/fire department and/or medical services, followed immediately by a call to the Building manager.

 

25.                               DELIVERIES

 

At no time will the Building staff accept deliveries on behalf of Contractor or any subcontractor.

 

26.                               CHANGES

 

THESE CONTRACTOR RULES AND REGULATIONS ARE SUBJECT TO CHANGE AND ARE NOT LIMITED TO WHAT IS CONTAINED HEREIN. LANDLORD AND THE BUILDING MANAGER RESERVE THE RIGHT TO IMPLEMENT ADDITIONAL RULES AND REGULATIONS AS MAY BE PRUDENT BASED ON EACH INDIVIDUAL PROJECT.

 

E-1-5

 

EXHIBIT E-2

 

ENERGY AND SUSTAINABILITY
 CONSTRUCTION GUIDELINES AND REOUIREMENTS

 

Any and all improvements, alterations or additions performed by Tenant will be performed in accordance with this Exhibit E-2 and any modifications thereto by Landlord, notwithstanding any more permissive local building codes or ordinances.

 

HVAC Equipment

 

—                                   Tenant-installed HVAC and refrigeration equipment and fire suppression systems shall not contain CFCs.

 

—                                   Ensure tenant-installed HVAC systems tie into the Building’s Building Automation System.

 

—                                   Avoid the installation of HVAC and refrigeration equipment containing HCFCs when reasonable.

 

Appliances & Equipment

 

Install only ENERGY STAR-certified appliances. Recommend the use of ENERGY STAR-certified office equipment, electronics and commercial food service equipment in all instances where such product is available.

 

Plumbing

 

Install only new plumbing fixtures that meet the following:

 

—            Lavatory faucets: [0.5] gallons per minute (GPM) tamper-proof aerators

 

—            Pantry/Kitchenette faucets: [1.5] GPM tamper-proof aerators

 

—            Water closets: [1.28] gallons per flush (GPF)

 

—            Urinals: [0.125] GPF

 

—            Showerheads: Meet the requirements of EPA WaterSense-labeled products

 

—            Commercial Pre-rinse Spray valves (for food service applications): [1.6] or less GPM

 

Tenant is not obligated to replace existing plumbing fixtures that meet die above listed flow rates.

 

Lighting

 

—                                   Lighting loads shall not exceed ASHRAE/IES Standard 90.1- 2010. For example, the Maximum Lighting Power Density for office use is 0.9 watts per square foot.

 

—                                   At a minimum, Tenant shall comply with applicable energy codes. Lighting controls shall be tested prior to occupancy to ensure that control elements are calibrated, adjusted and in proper working condition to achieve optimal energy efficiency.

 

E-2-1

 

—                                   Recommend installation of daylight-responsive controls in all regularly occupied office spaces within 15 feet of windows.

 

Building Materials

 

—                                   Architect and general contractor shall endeavor to specify low-VOC paints, coatings, primers, adhesives, sealants, sealant primers, coatings, stains, finishes and the like. Suggested VOC limits are at the end of this document.

 

—                                   Architect and general contractor shall endeavor to specify materials that meet the following criteria:

 

—                                   Harvested and processed or extracted and processed within a 500-mile radius of the project site.

 

—                                   Contain at least 10% post-consumer or 20% pre-consumer materials.

 

—                                   Contain material salvaged from offsite or on-site.

 

—                                   Contain rapidly renewable material.

 

—                                   Made of wood-based materials, excluding movable furniture, certified as harvested from sustainable sources, specifically Forest Stewardship Council (FSC)-certified wood.

 

—                                   Carpet meeting or exceeding the requirements of the CRI Green Label Plus Testing Program and recyclable where available.

 

—                                   Carpet cushion meeting or exceeding the requirements of the CRI Green Label Testing Program.

 

—                                   Preferably, at least 25% of the hard surface flooring (not carpet) will be FloorScore-certified.

 

—                                   Composite wood or agrifiber products shall contain no added urea-formaldehyde resins.

 

Contractor Practices

 

—                                   General Contractor shall implement appropriate Indoor Air Quality Protocols for construction activity.

 

Resources

 

For actual regulations, rules and standards visit:

 

SCAQMD

 

BAAQMD

 

Green Seal

 

E-2-2

 

SCA MD VOC Limits—January 7, 2005

 

	
Architectural Coatings
    	
 
    	
VOC
   Limit [g/L
   less water]
    	
 
    
	
Clear Wood   Finishes - Varnish
    	
 
    	
350
    	
 
    
	
Clear Wood   Finishes - Lacquer
    	
 
    	
550
    	
 
    
	
Waterproofing   Sealers
    	
 
    	
250
    	
 
    
	
Sanding Sealers
    	
 
    	
275
    	
 
    
	
All Other   Sealers
    	
 
    	
200
    	
 
    
	
Shellacs — Clear
    	
 
    	
730
    	
 
    
	
Shellacs —   Pigmented
    	
 
    	
550
    	
 
    
	
All Stains
    	
 
    	
250
    	
 
    

 

	
Architectural Applications
    	
 
    	
VOC
   Limit [g/L
   less water]
    	
 
    	
Specialty Applications
    	
 
    	
VOC
   Limit [g/L
   less water]
    
	
Indoor Carpet Adhesives
    	
 
    	
50
    	
 
    	
PVC Welding
    	
 
    	
510
    
	
Carpet Pad Adhesives
    	
 
    	
50
    	
 
    	
CPVC Welding
    	
 
    	
490
    
	
Wood Flooring Adhesives
    	
 
    	
100
    	
 
    	
ABS Welding
    	
 
    	
325
    
	
Rubber Floor Adhesives
    	
 
    	
60
    	
 
    	
Plastic Cement Welding
    	
 
    	
250
    
	
Subfloor Adhesives
    	
 
    	
50
    	
 
    	
Adhesive Primer for Plastic
    	
 
    	
550
    
	
Ceramic Tile Adhesives
    	
 
    	
65
    	
 
    	
Contact Adhesive
    	
 
    	
80
    
	
VCT & Asphalt Adhesives
    	
 
    	
50
    	
 
    	
Special Purpose Contact Adhesive
    	
 
    	
250
    
	
Drywall & Panel Adhesives
    	
 
    	
50
    	
 
    	
Structural Wood Member Adhesive
    	
 
    	
140
    
	
Cover Base Adhesives
    	
 
    	
50
    	
 
    	
Sheet Applied Rubber Lining Operations
    	
 
    	
850
    
	
Multipurpose Construction Adhesives
    	
 
    	
70
    	
 
    	
Top & Trim Adhesive
    	
 
    	
250
    
	
Structural Glazing Adhesives
    	
 
    	
100
    	
 
    	
 
    	
 
    	
 
    
	
Single-Ply Roof Membrane Adhesives
    	
 
    	
250
    	
 
    	
 
    	
 
    	
 
    

 

	
Substrate Specific Applications
    	
 
    	
VOC
   Limit [g/L
   less water]
    	
 
    	
Sealants
    	
 
    	
VOC
   Limit [g/L
   less water]
    
	
Metal to Metal
    	
 
    	
30
    	
 
    	
Architectural
    	
 
    	
250
    
	
Plastic Foams
    	
 
    	
50
    	
 
    	
Nonmembrane Roof
    	
 
    	
300
    
	
Porous Material (except wood)
    	
 
    	
50
    	
 
    	
Roadway
    	
 
    	
250
    
	
Wood
    	
 
    	
30
    	
 
    	
Single-Ply Roof Membrane
    	
 
    	
450
    
	
Fiberglass
    	
 
    	
80
    	
 
    	
Other
    	
 
    	
420
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    

 

E-2-3

 

	
Sealant Primers
    	
 
    	
VOC
   Limit [g/L
   less water]
    	
 
    
	
Architectural Non Porous
    	
 
    	
250
    	
 
    
	
Architectural Porous
    	
 
    	
775
    	
 
    
	
Other
    	
 
    	
750
    	
 
    

 

Green Seal Standard VOC Limits—October 19, 2000

 

	
Paints
    	
 
    	
VOC Limit (g/L less water)
    
	
Flat
    	
 
    	
50
    
	
Non-flat
    	
 
    	
150
    
	
Anti-corrosive/anti-rust
    	
 
    	
250
    

 

	
Aerosol Adhesives
    	
 
    	
VOC Weight (g/L minus water)
    
	
General Purpose Mist Spray
    	
 
    	
65% VOCs by weight
    
	
General Purpose Mist Spray
    	
 
    	
55% VOCs by weight
    
	
Special Purpose Aerosol Adhesives (all types)
    	
 
    	
70% VOCs by weight
    

 

BAA MD VOC Limits—August 2001

 

	
Architectural
    	
 
    	
VOC
   Limit [g/L
   less water]
    	
 
    	
Specialty Applications
    	
 
    	
VOC
   Limit [g/L
   less water]
    
	
Indoor Floor Covering Installation
    	
 
    	
150
    	
 
    	
Computer Diskette Jacket Manufacturing
    	
 
    	
850
    
	
Multipurpose Construction
    	
 
    	
200
    	
 
    	
ABS Welding
    	
 
    	
400
    
	
Nonmembrane Roof Installation/Repair
    	
 
    	
300
    	
 
    	
CPVC Welding
    	
 
    	
490
    
	
Outdoor Floor Covering Installation
    	
 
    	
250
    	
 
    	
PVC Welding
    	
 
    	
510
    
	
Single-Ply Roof Material Installation/Repair
    	
 
    	
250
    	
 
    	
Other Plastic Welding
    	
 
    	
500
    
	
Structural Glazing
    	
 
    	
100
    	
 
    	
Thin Metal Laminating
    	
 
    	
780
    
	
Ceramic Tile Installation
    	
 
    	
130
    	
 
    	
Tire Retread
    	
 
    	
100
    
	
Cove Base Installation
    	
 
    	
150
    	
 
    	
Rubber Vulcanization Bonding
    	
 
    	
850
    
	
Perimeter Bonded Sheet Vinyl Flooring
    	
 
    	
660
    	
 
    	
Waterproof Resorcinol Glue
    	
 
    	
170
    
	
 
    	
 
    	
 
    	
 
    	
Immersible Product Manufacturing
    	
 
    	
650
    
	
 
    	
 
    	
 
    	
 
    	
Top and Trim Installation
    	
 
    	
540
    

 

E-2-4

 

	
Adhesive Primers
    	
 
    	
VOC
   Limit [g/L
   less water]
    	
 
    	
Contact Bond Adhesives
    	
 
    	
VOC
   Limit [g/L
   less water]
    
	
Automotive Glass Primer
    	
 
    	
700
    	
 
    	
Contact Bond Adhesive
    	
 
    	
250
    
	
Pavement Marking Tape Primer
    	
 
    	
150
    	
 
    	
Contact Bond Adhesive — Special Substrates
    	
 
    	
400
    
	
Plastic Welding Primer
    	
 
    	
650
    	
 
    	
 
    	
 
    	
 
    
	
Other
    	
 
    	
250
    	
 
    	
 
    	
 
    	
 
    

 

	
Adhesive Projects
    	
 
    	
VOC
   Limit [g/L
   less water]
    	
 
    	
Sealants
    	
 
    	
VOC
   Limit [g/L
   less water]
    
	
Metal
    	
 
    	
30
    	
 
    	
Architectural
    	
 
    	
250
    
	
Porous Mateirals
    	
 
    	
120
    	
 
    	
Marine Deck
    	
 
    	
760
    
	
Wood
    	
 
    	
120
    	
 
    	
Roadways
    	
 
    	
250
    
	
Pre-formed Rubber Products
    	
 
    	
250
    	
 
    	
Single-Ply Roof Material Installation/Repair
    	
 
    	
450
    
	
All Other Substrates
    	
 
    	
250
    	
 
    	
Nonmembrane Roof Installation/Repair
    	
 
    	
300
    
	
 
    	
 
    	
 
    	
 
    	
Other
    	
 
    	
420
    

 

	
 
    	
 
    	
 
    	
 
    	
Sealant Primers
    	
 
    	
VOC
   Limit [g/L
   less water]
    
	
 
    	
 
    	
 
    	
 
    	
Architectural - Nonporous
    	
 
    	
250
    
	
 
    	
 
    	
 
    	
 
    	
Architectural - Porous
    	
 
    	
775
    
	
 
    	
 
    	
 
    	
 
    	
Other
    	
 
    	
750
    

 

E-2-5

 

EXHIBIT F

 

BUILDING RULES AND REGULATIONS

 

The following rules and regulations shall apply to the Premises, the Building, the parking garage associated therewith, and the appurtenances thereto:

 

1.                                      Sidewalks, doorways, vestibules, halls, stairways, and other similar areas shall not be obstructed by tenants or used by any tenant for purposes other than ingress and egress to and from their respective leased premises and for going from one to another part of the Building.

 

2.                                      Plumbing, fixtures and appliances shall be used only for the purposes for which designed, and no sweepings, rubbish, rags or other unsuitable material shall be thrown or deposited therein. Damage resulting to any such fixtures or appliances from misuse by a tenant or its agents, employees or invitees, shall be paid by such tenant.

 

3.                                      No signs, advertisements or notices (other than those that are not visible outside the Premises) shall be painted or affixed on or to any windows or doors or other part of the Building without the prior written consent of Landlord.

 

4.                                      Landlord shall provide all door locks in each tenant’s leased premises, at the cost of such tenant, and no tenant shall place any additional door locks in its leased premises without Landlord’s prior written consent. Landlord shall furnish to each tenant a reasonable number of keys to such tenant’s leased premises, at such tenant’s cost, and no tenant shall make a duplicate thereof.

 

5.                                      If the Building is multi-tenant, movement in or out of the Building of furniture or office equipment, or dispatch or receipt by tenants of any bulky material, merchandise or materials which require use of elevators or stairways, or movement through the Building entrances or lobby shall be conducted under Landlord’s supervision at such times and in such a manner as Landlord may reasonably require. Each tenant assumes all risks of and shall be liable for all damage to articles moved and injury to persons or public engaged or not engaged in such movement, including equipment, property and personnel of Landlord if damaged or injured as a result of acts in connection with carrying out this service for such tenant.

 

6.                                      Landlord may prescribe weight limitations and determine the locations for safes and other heavy equipment or items, which shall in all cases be placed in the Building so as to distribute weight in a manner acceptable to Landlord which may include the use of such supporting devices as Landlord may require. All damages to the Building caused by the installation or removal of any property of a tenant, or done by a tenant’s property while in the Building, shall be repaired at the expense of such tenant.

 

7.                                      Corridor doors, when not in use, shall be kept closed. Nothing shall be swept or thrown into the corridors, halls, elevator shafts or stairways. No birds or animals (other than seeing-eye dogs) shall be brought into or kept in, on or about any tenant’s leased premises. No portion of any tenant’s leased premises shall at any time be used or occupied as sleeping or lodging quarters.

 

8.                                      Tenant shall not make or permit any vibration or unpleasant noises or odors in the Building or otherwise interfere in any way with other tenants or persons having business with them.

 

9.                                      No machinery of any kind (other than normal office equipment) shall be operated by any tenant on its leased area without Landlord’s prior written consent, nor shall any tenant use or keep in the

 

F-1

 

Building any flammable or explosive fluid or substance (other than typical office supplies [e.g., photocopier toner] used in compliance with all Laws).

 

10.                               Landlord will not be responsible for lost or stolen personal property, money or jewelry from tenant’s leased premises or public or common areas regardless of whether such loss occurs when the area is locked against entry or not.

 

11.                               No vending or dispensing machines of any kind may be maintained in any leased premises without the prior written permission of Landlord, other than those used for Tenant’s employees.

 

12.                               Tenant shall use reasonable efforts to not conduct any activity on or about the Premises or Building which will draw pickets, demonstrators, or the like.

 

13.                               No tenant may enter into phone rooms, electrical rooms, mechanical rooms, or other service areas of the Building unless accompanied by Landlord or the Building manager.

 

14.                               No smoking is allowed anywhere in the Building. Smoking is allowed only in Landlord-designated smoking areas that are at least fifty (50) feet from the Building entry or elevators, public walkways and the Building’s outdoor air intakes, outdoor louvers, or operable windows. Tenant shall not permit its employees, invitees or guests to smoke in the Premises or Building, or anywhere within the foregoing fifty (50) foot area (including without limitation e-cigarettes).

 

15.                               Canvassing, soliciting or peddling in or about the Premises or the Property is prohibited and Tenant shall cooperate to prevent same.

 

16.                               Tenant shall not use or permit space heaters or energy-intensive equipment unnecessary to conduct Tenant’s business without written approval by Landlord. Any space conditioning equipment that is placed in the Premises by Tenant for the purpose of increasing comfort to occupants shall be operated on sensors or timers that limit operation of equipment to hours of occupancy in the areas immediately adjacent to the occupying personnel.

 

17.                               Tenant shall not mark, paint, drill into, or in any way deface any part of the Building or Premises, except as approved in advance by Landlord. No boring, driving of nails, or screws, cutting or stringing of wires shall be permitted, except with the prior written consent of Landlord, and as Landlord may direct. Tenant shall not install any resilient tile or similar floor covering the Premises, except as approved in advance by Landlord. The use of cement or other similar adhesive material is expressly prohibited, except as approved in advance by Landlord.

 

18.                               Tenant shall not waste electricity or water and agrees to cooperate fully with landlord to assure the most effective operation of the Building’s heating and air conditioning. Tenant shall keep corridor doors closed except when being used for access.

 

19.                               The water and wash closets and other plumbing fixtures shall not be used for any purposes other than those for which they were constructed, and no sweepings, rubbish, rags, or other substances shall be thrown therein.

 

20.                               No smoking shall be permitted in any portion of the Building (including the Premises and all common areas within the Building). Landlord may also limit smoking in exterior areas to such location or locations as Landlord may designate from time to time. No sale or distribution of tobacco or tobacco products shall be permitted anywhere in the Building or on the Lot or any other facilities operated in connection with the Building or the Lot.

 

F-2

 

21.                               Building employees shall not be required to perform, and shall not be requested by any tenant or occupant to perform, any work outside of their regular duties, unless under specific instructions from the office of the Manager of the Building.

 

22.                               Tenant may request heating and/or air conditioning during other periods in addition to normal working hours by submitting its request in writing to the office of the Manager of the Building no later than 12:00 p.m. the preceding work day (Monday through Friday) on forms available from the office of the Manager. The request shall clearly state the start and stop hours of the “off-hour” service. Tenant shall submit to the Building Manager a list of personnel authorized to make such request. The Tenant shall be charged for such operation in the form of additional rent; such charges are to be determined by the Landlord.

 

23.                               Tenant covenants and agrees that its use of the Premises shall not cause a discharge of more than the gallonage per foot of rentable square feet per day of sanitary (non¬industrial) sewage allowed under the sewage discharge permit for the Building. Discharges in excess of that amount, and any discharge of industrial sewage, shall only be permitted if Tenant, at its sole expense, shall have obtained all necessary permits and licensees therefor, including without limitation permits from state and local authorities having jurisdiction thereof.

 

24.                               Landlord may establish reasonable rules and regulations regarding the use of the roofdeck located on the third floor of the Building, and provide for an orderly and reasonable method for the reservation of such space.

 

25.                               Janitorial services shall be provided in accordance with Exhibit K. Tenants shall not cause unnecessary labor by reason of carelessness or indifference in the preservation of good order and cleanliness. The work of the janitor or cleaning personnel shall not be hindered by Tenant and such work may be done at any time when the offices are vacant. The windows, doors and fixtures may be cleaned at any time without interruption of purpose for which the Premises are let. Tenant shall provide adequate waste and rubbish receptacles, cabinets, bookcases, map cases, etc. necessary to prevent unreasonable hardship to Landlord in discharging its obligation regarding cleaning service. Boxes should be broken down to fit into containers.

 

26.                               These Building Rules and Regulations are subject to change and are not limited to what is contained herein. Landlord and the building manager reserve the right to implement additional reasonable Building Rules and Regulations as may be prudent; provided, however, that Landlord shall not discriminate against Tenant in the implementation of such additional Building Rules and Regulations.

 

F-3

 

EXHIBIT G

 

FORM OF CONFIRMATION OF COMMENCEMENT DATE LETTER

 

                         , 2016

 

CarGurus,

Two Canal Park, Suite 4

Cambridge, MA 2141

 

Re:                             Lease Agreement (the “Lease”) dated March 11, 2016, between 55 Cambridge Parkway, LLC, a Delaware limited liability company (“Landlord”), and CarGurus, INC., a Delaware corporation (“Tenant”). Capitalized terms used herein but not defined shall be given the meanings assigned to them in the Lease.

 

Ladies and Gentlemen:

 

Landlord and Tenant agree as follows:

 

1.                                      Condition of Premises. Tenant has accepted possession of the Premises pursuant to the Lease. All Shell Condition Work has been completed to the full and complete satisfaction of Tenant with the exception of certain “punch list” items listed on Exhibit A. Furthermore, Tenant acknowledges that the Premises are suitable for the Permitted Use.

 

2.                                      Commencement Date. The Commencement Date of the Lease is            , 2016.

 

3.                                      Expiration Date. The Term is scheduled to expire on the last day of the  full calendar month of the Term, which date is November 30, 2022.

 

4.                                      Contact Person. Tenant’s contact person in the Premises is:

 

	
 
    	
                      
    
	
 
    	
                      
    
	
Attention:
    	
                      
    
	
Telephone:
    	
                      
    
	
Telecopy:
    	
                      
    

 

5.                                      Ratification. Tenant hereby ratifies and confirms its obligations under the Lease, and represents and warrants to Landlord that it has no defenses thereto. Additionally, Tenant further confirms and ratifies that, as of the date hereof, (a) the Lease is and remains in good standing and in full force and effect, and (b) Tenant has no claims, counterclaims, set-offs or defenses against Landlord arising out of the Lease or in any way relating thereto or arising out of any other transaction between Landlord and Tenant.

 

6.                                      Binding Effect; Governing Law. Except as modified hereby, the Lease shall remain in full effect and this letter shall be binding upon Landlord and Tenant and their respective successors and assigns. If any inconsistency exists or arises between the terms of this letter and the terms of the Lease, the terms of this letter shall prevail. This letter shall be governed by the laws of the state in which the Premises are located.

 

G-1

 

Please indicate your agreement to the above matters by signing this letter in the space indicated below and returning an executed original to us.

 

	
 
    	
 
    	
Sincerely,
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
55 CAMBRIDGE PARKWAY, LLC,
    
	
 
    	
 
    	
a Delaware limited   liability company
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
By:
    	
Invesco ICRE   Massachusetts REIT
    
	
 
    	
 
    	
 
    	
Holdings, LLC, its sole   member
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
By:
    	
 
    
	
 
    	
 
    	
 
    	
Name:
    	
 
    
	
 
    	
 
    	
 
    	
Title:
    	
 
    
	
 
    	
 
    	
 
    
	
Agreed and accepted:
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
CARGURUS, INC.,
    	
 
    	
 
    
	
a Delaware corporation
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
By:
    	
 
    	
 
    	
 
    
	
Name:
    	
 
    	
 
    	
 
    
	
Title:
    	
 
    	
 
    	
 
    
										

 

G-2

 

EXHIBIT A

 

Punchlist Items

 

G-3

 

EXHIBIT H

 

FORM OF TENANT ESTOPPEL CERTIFICATE

 

The undersigned is the Tenant under the Lease (defined below) between 55 Cambridge Parkway, LLC, a Delaware limited liability company, as Landlord, and the undersigned as Tenant, for the Premises on the 5th and 6th floor(s) of the office building located at 55 Cambridge Parkway, Cambridge, MA, and hereby certifies as follows:

 

1.                                      The Lease consists of the original Office Lease Agreement dated as of March 11, 2016 between Tenant and Landlord [‘s predecessor-in-interest] and the following amendments or modifications thereto (if none, please state “none”):.

 

The documents listed above are herein collectively referred to as the “Lease” and represent the entire agreement between the parties with respect to the Premises. All capitalized terms used herein but not defined shall be given the meaning assigned to them in the Lease.

 

2.                                      The Lease is in full force and effect and has not been modified, supplemented or amended in any way except as provided in Section 1 above.

 

3.                                      The Term commenced on                        , 20__, and the Term expires, excluding any renewal options, on                       , 20  , and Tenant has no option to purchase all or any part of the Premises or the Building or, except as expressly set forth in die Lease, any option to terminate or cancel the Lease.

 

4.                                      Tenant currently occupies the Premises described in the Lease and Tenant has not transferred, assigned, or sublet any portion of the Premises nor entered into any license or concession agreements with respect thereto except as follows (if none, please state “none”):

 

5.                                      All monthly installments of Base Rent, all Additional Rent and all monthly installments of estimated Additional Rent have been paid when due through                                                      . The current monthly installment of Base Rent is $                  .

 

6.                                      To Tenant’s best knowledge all conditions of the Lease to be performed by Landlord necessary to the enforceability of the Lease have been satisfied and Landlord is not in default thereunder. In addition, Tenant has not delivered any notice to Landlord regarding a default by Landlord thereunder.

 

7.                                      As of the date hereof, there are no existing defenses or offsets, or, to the undersigned’s knowledge, claims or any basis for a claim, that the undersigned has against Landlord and no event has occurred and no condition exists, which, with the giving of notice or the passage of time, or both, will constitute a default under the Lease.

 

8.                                      No rental has been paid more than 30 days in advance and no security deposit has been delivered to Landlord except as provided in the Lease.

 

H-1

 

9.                                      If Tenant is a corporation, partnership or other business entity, each individual executing this Estoppel Certificate on behalf of Tenant hereby represents and warrants that Tenant is a duly formed and existing entity qualified to do business in die state in which the Premises are located and that Tenant has full right and authority to execute and deliver this Estoppel Certificate and that each person signing on behalf of Tenant is authorized to do so.

 

10.                               There are no actions pending against Tenant under any bankruptcy or similar laws of the United States or any state.

 

11.                               Other than as approved by Landlord in writing and used in compliance with all applicable laws and incidental to the ordinary course of the use of the Premises, the undersigned has not used or stored any hazardous substances in the Premises.

 

12.                               All tenant improvement work to be performed by Landlord under the Lease has been completed in accordance with the Lease and all reimbursements and allowances due to the undersigned under the Lease in connection with any tenant improvement work have been paid in full.

 

Tenant acknowledges that this Estoppel Certificate may be delivered to Landlord, Landlord’s Mortgagee or to a prospective mortgagee or prospective purchaser, and their respective successors and assigns, and acknowledges that Landlord, Landlord’s Mortgagee and/or such prospective mortgagee or prospective purchaser will be relying upon the statements contained herein in disbursing loan advances or making a new loan or acquiring the property of which the Premises are a part and that receipt by it of this certificate is a condition of disbursing loan advances or making such loan or acquiring such property.

 

Executed as of                       , 201_.

 

	
 
    	
TENANT:   CARGURUS, INC.
    
	
 
    	
 
    
	
 
    	
a Delaware corporation
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
 
    
	
 
    	
Name:
    	
 
    
	
 
    	
Title:
    	
 
    
				

 

H-2

 

EXHIBIT I

 

PARKING

 

So long as Tenant shall not be in default under this Lease beyond the expiration of applicable notice and cure periods, Tenant shall have the right to use forty-three (43) parking spaces in the underground parking garage at the Project on an unreserved, unassigned basis, in common with other tenants of the Building. Tenant shall pay to Landlord each month with the payment of Base Rent the then monthly parking charge (currently $250.00 per space per month) set by Landlord, regardless of whether Tenant or any invitees, employees or contractors of Tenant actually use such spaces, for each of the forty-three (43) parking spaces (the “Parking Charges”). Such rate shall be subject to change by Landlord during the Term. Tenant shall be responsible for causing its visitors to park only in spaces or areas marked “Visitor parking” and Tenant and its employees shall not park in spaces or areas marked “Visitor-Parking” or “No parking”. Landlord reserves the right to tow any cars parked in “Visitor Parking” or “No Parking” areas in violation of these rules and regulations at the sole expense of the owner of the improperly parked car. Landlord reserves the right to designate reserved parking spaces for the Building’s tenants. Tenant’s use of such parking spaces shall be subject to the below rules and regulations:

 

The parking rules & regulations are designed to assure our tenants and visitors safe use and enjoyment of the facilities. Please remove or hide any personal items of value from plain sight to avoid temptation leading to vandalism of vehicles. Please exercise added caution when using parking lot at night. Please keep vehicle locked at all times. Please report violations of these rules to the Landlord immediately. Please report any lights out or other possibly dangerous situations to the Landlord as soon as possible.

 

Restrictions

 

·                                          Damage caused by vehicles is the responsibility of vehicle owner.

 

·                                          Landlord is not responsible for theft or damage to any vehicle.

 

·                                          Landlord is not responsible for water damage from leaks in any garage or any surface parking area.

 

·                                          Landlord is not responsible for damage due to height limitations of any garage.

 

·                                          Vehicles not to exceed 5 miles per hour speed limit in any garage.

 

·                                          Vehicles that leak excessive fluids will be required to protect parking surface.

 

·                                          Mechanical repairs to vehicles are not permitted on property.

 

·                                          Large or oversize vehicles such as motor homes, boats or trailers are not permitted.

 

·                                          No parking in fire lanes, loading zones or any other areas not designated as a parking space.

 

·                                          Landlord, at Landlord’s sole discretion, may add or modify the parking rules.

 

·                                          Landlord reserves the right to relocate the location of reserved spaces from time to time.

 

·                                          Parking Charges for reserved spaces shall be paid to Landlord by Tenant along with, and on the same due date as, the Base Rent.

 

I-1

 

Violations of rules & regulations may result in towing from the Project. Towing from the Project can only be ordered by Landlord or Landlord’s property manager. Charges for towing are to be paid by vehicle owner.

 

I-2

 

EXHIBIT J

 

EXTENSION OPTION; RIGHTS OF FIRST OFFER

 

1.                                      Extension Option

 

So long as there shall not then be an Event of Default under this Lease, Tenant may extend this Lease for one (I) additional period of five (5) years (the “Extension Term”), by delivering written notice of the exercise thereof to Landlord not later than twelve (12) months (nor earlier than eighteen (18) months) before the expiration of the Original Term. The Base Rent payable for each month during the Extension Term shall be the prevailing rental rate (the “Prevailing Rental Rate”), at the commencement of the Extension Term, for renewals of space in Cambridge, Massachusetts of equivalent quality, size, utility and location, taking into account prevailing concessions including, but not be limited to, tenant improvements, tenant improvement allowances, rental abatement, the length of the Extension Term, size of the premises, condition of the premises, escalation charges, location of the premises, location and age of the building, free rent periods, brokerage commissions and lease term. Within fourteen (14) days after receipt of Tenant’s notice to extend, Landlord shall deliver to Tenant written notice of the Prevailing Rental Rate and shall advise Tenant of the required adjustment to Base Rent, if any, and the other terms and conditions offered. Tenant shall, within twenty-one (21) days after receipt of Landlord’s notice, notify Landlord in writing whether Tenant accepts or rejects Landlord’s determination of the Prevailing Rental Rate (“Tenant Notice”). If Tenant timely notifies Landlord that Tenant accepts Landlord’s determination of the Prevailing Rental Rate, then, on or before the commencement date of the Extension Term, Landlord and Tenant shall execute an amendment to this Lease extending the Term on the same terms provided in this Lease, except as follows:

 

(a)                                 Base Rent shall be adjusted to the Prevailing Rental Rate;

 

(b)                                 Tenant shall have no further extension option unless expressly granted by Landlord in writing; and

 

(c)                                  Landlord shall lease to Tenant the Premises in their then-current condition, and Landlord shall not provide to Tenant any allowances (e.g., moving allowance, construction allowance, and the like) or other tenant inducements.

 

If Tenant rejects Landlord’s determination of the Prevailing Rental Rate, then the Base Rent payable for each month during the Extension Term (“Fair Market Rent”) shall be established by appraisal in the following manner. By not later than the thirtieth (30th) day after the Tenant Notice, Landlord and Tenant shall each appoint one (1) qualified appraiser (as hereinafter defined) and the two (2) qualified appraisers so appointed shall determine the Fair Market Rent within thirty (30) days following their appointment. As used herein, the term “qualified appraiser” shall mean any independent person (a) who is employed by an appraisal or brokerage firm of recognized competence in the greater Boston area and (b) who has not less than ten (10) years experience in commercial office leasing with respect to, or in appraising and valuing properties of, the general location, type and character as the Premises. If either Landlord or Tenant fails to appoint a qualified appraiser within said thirty (30) day period, then the other party shall have the power to appoint the qualified appraiser for the defaulting party. If said qualified appraisers are unable to agree on the Fair Market Rent within said thirty (30) day period, then they jointly shall appoint a third qualified appraiser within ten (10) days of the expiration of such thirty (30) day period. If the first two appraisers shall fail to appoint a third appraiser within such ten (10) day period, either appraiser may request the President of the Boston Bar Association to appoint the third appraiser. Within thirty (30) days after the appointment of the third appraiser, all three qualified appraisers shall meet and determine the Fair Market Rent. If all three qualified appraisers are unable unanimously to agree

 

J-1

 

upon the Fair Market Rent, then the first two qualified appraisers simultaneously shall deliver their final Fair Market Rent numbers to the third qualified appraiser, and the third qualified appraiser shall select the number as the Fair Market Rent number that is closest to the Fair Market Rent number determined by the third appraiser, and the Fair Market Rent so selected shall be conclusive and binding upon the Landlord and Tenant. Each party shall bear the cost of its qualified appraiser, and the cost of the third qualified appraiser shall be borne equally between the parties. Until such time as the Fair Market Rent is so determined, from and after the commencement date of the Extension Term, Tenant shall pay Base Rent at the average of Landlord’s and Tenant’s appraisers’ designations of fair market rent, with an appropriate retroactive adjustment once the Fair Market Rent has been determined.

 

Tenant’s rights under this Exhibit J shall terminate if (1) this Lease or Tenant’s right to possession of the Premises is terminated, (2) Tenant assigns any of its interest in this Lease or sublets more than fifty percent (50%) of the Premises, or (3) Tenant fails to timely exercise its option under this Exhibit, time being of the essence with respect to Tenant’s exercise thereof.

 

2.                                      Rights of First Offer

 

(a)                                 5th Floor East Wing Offer Space.  During the Term of this Lease, provided that Tenant (x) shall not be subleasing any space in the Building, and (y) has not committed an Event of Default at any time during the Term, then Tenant shall have a right of first offer to lease any space that is contiguous to the Premises on the fifth (5th) floor of the East Wing of the Building (the “5th Floor East Wing Space”) as approximately shown on Exhibit J-1 attached hereto, on the following terms and conditions:

 

(i)                                     In the event that any portion of the 5th Floor East Wing Space shall become available for leasing, in the Landlord’s sole discretion during the Term, Landlord shall give notice (the “5th Floor East Wing ROFO Offer Notice”) to Tenant of the availability (or anticipated availability) of such space (the “5th Floor East Wing ROFO Offer Space”), setting forth the Annual Base Rent, the Base Years for Operating Costs, Taxes and Insurance and such other terms and conditions on which Landlord is prepared to lease the 5th Floor East Wing ROFO Offer Space to Tenant (the “5th Floor East Wing ROFO Offer Space Offered Terms”).

 

(ii)                                  Tenant shall have the right to lease all of the 5th Floor East Wing ROFO Offer Space described in the 5th Floor East Wing ROFO Offer Notice on the 5th Floor East Wing ROFO Offer Space Offered Terms within ten (10) days after the date of Landlord’s delivery of the 5th Floor East Wing ROFO Offer Notice to Tenant. Tenant’s failure to accept such 5th Floor East Wing ROFO Offer Space Offered Terms in writing within such ten (10) day period shall be deemed an election by Tenant to reject such 5th Floor East Wing ROFO Offer Space Offered Terms.  Tenant may not elect to lease just a portion of the 5th Floor East Wing ROFO Offer Space, and any attempt by Tenant to make such an election shall be deemed a rejection by Tenant to lease the 5th Floor East Wing ROFO Offer Space (including any portion thereof).

 

(iii)                               In the event that Tenant timely accepts the 5th Floor East Wing ROFO Offer Space Offered Terms set forth in the (5th) Floor East Wing ROFO Offer Notice, then Landlord and Tenant shall, within fifteen (15) days after the date of Tenant’s acceptance, enter into an amendment to this Lease incorporating the 5th Floor East Wing ROFO Offer Space into the Premises on the 5th Floor East Wing ROFO Offer Space Offered Terms.

 

J-2-1

 

(iv)                              In the event that Tenant rejects or is deemed to have rejected the 5th Floor East Wing ROFO Offer Space Offered Terms or fails to enter into such an amendment with Landlord within such fifteen (15) day period, as the case may be, then Landlord shall be free to lease the 5th Floor East Wing ROFO Offer Space at any time and from time-to time to a third party or parties on such terms as Landlord desires, in its sole discretion, and Tenant shall have no further rights under this Section 2(a) with respect to the 5th Floor East Wing ROFO Offer Space; provided, however, (i) Landlord shall be obligated to re-offer to Tenant the 5th Floor East Wing ROFO Offer Space pursuant to the terms and conditions of this section prior to leasing for the first time the 5th Floor East Wing ROFO Offer Space to a third party at less than 90% of the “net effective rent” (i.e., the actual rent after all factors are taken into account such as base rent escalations, allowances, free rent, operating expense and tax base years, free rent and any other economic terms) set forth in the applicable 5’1’ Floor East Wing ROFO Offer Space Offered Terms and (ii) Tenant’s rights under this section shall continue to apply with respect to the balance of the 5th Floor East Wing Space not previously offered to Tenant pursuant to this section.

 

(b)                                 6th Floor East Wing Offer Space.  During the Term of this Lease, provided that Tenant (x) shall not be subleasing any space in the Building, and (y) has not committed an Event of Default at any time during the Term, then Tenant shall have a right of first offer to lease any space that is contiguous to the Premises on the sixth (6th) floor of the East Wing of the Building (the “6th Floor East Wing Space”) as approximately shown on Exhibit J-2 attached hereto, on the following terms and conditions:

 

(i)                                     Subject to the right of Landlord to extend or renew any then current lease (or enter into a new lease or extension with the same tenant even if no extension or renewal rights are contained in said then current lease) for all or any portion of the 6th Floor East Wing Space, in the event that any portion of the 6th Floor  East Wing Space shall become available for leasing, in the Landlord’s sole discretion during the Term, Landlord shall give notice (the “6th Floor East Wing ROFO Offer Notice”) to Tenant of the availability (or anticipated availability) of such space (the “6th Floor East Wing ROFO Offer Space”), setting forth the Annual Base Rent, the Base Years for Operating Costs, Taxes and Insurance and such other terms and conditions on which Landlord is prepared to lease the 6th Floor East Wing ROFO Offer Space to Tenant (the “6th Floor East Wing ROFO Offer Space Offered Terms”).

 

(ii)                                  Tenant shall have the right to lease all of the 6th Floor East Wing ROFO Offer Space described in the 6th Floor East Wing ROFO Offer Notice on the 6th Floor East Wing ROFO Offer Space Offered Terms within ten (10) days after the date of Landlord’s delivery of the 6th Floor East Wing ROFO Offer Notice to Tenant. Tenant’s failure to accept such 6th Floor East Wing ROFO Offer Space Offered Terms in writing within such ten (10) day period shall be deemed an election by Tenant to reject such 6th Floor East Wing ROFO Offer Space Offered Terms. Tenant may not elect to lease just a portion of the 6th Floor East Wing ROFO Offer Space, and any attempt by Tenant to make such an election shall be deemed a rejection by Tenant to lease the 6th Floor East Wing ROFO Offer Space (including any portion thereof).

 

(iii)                               In the event that Tenant timely accepts the 6th Floor East Wing ROFO Offer Space Offered Terms set forth in the 6th Floor East Wing ROFO Offer Notice,

 

J-3-1

 

then Landlord and Tenant shall, within fifteen (15) days after the date of Tenant’s acceptance, enter into an amendment to this Lease incorporating the 6th Floor East Wing ROFO Offer Space into the Premises on the 6th Floor East Wing ROFO Offer Space Offered Terms.

 

(iv)                              In the event that Tenant rejects or is deemed to have rejected the 6th Floor East Wing ROFO Offer Space Offered Terms or fails to enter into such an amendment with Landlord within such fifteen (15) day period, as the case may be, then Landlord shall be free to lease the 6th Floor East Wing ROFO Offer Space at any time and from time-to time to a third party or parties on such terms as Landlord desires, in its sole discretion, and Tenant shall have no further rights under this Section 2(b) with respect to the 6th Floor East Wing ROFO Offer Space; provided, however, (i) Landlord shall be obligated to re-offer to Tenant the 6th Floor East Wing ROFO Offer Space pursuant to the terms and conditions of this section prior to leasing for the first time the 6th Floor East Wing ROFO Offer Space to a third party at less than 90% of the “net effective rent” (i.e., the actual rent after all factors are taken into account such as base rent escalations, allowances, free rent, operating expense and tax base years, free rent and any other economic terms) set forth in the applicable 6th Floor East Wing ROFO Offer Space Offered Terms and (ii) Tenant’s rights under this section shall continue to apply with respect to the balance of the 6th Floor East Wing Space not previously offered to Tenant pursuant to this section.

 

(c)                                  7th Floor West Wing Offer Space.  During the Term of this Lease, provided that Tenant (x) shall not be subleasing any space in the Building, and (y) has not committed an Event of Default at any time during the Term, then Tenant shall have a right of first offer to lease any space that is contiguous to the Premises on the seventh (7th) floor of the West Wing of the Building (the “7th Floor West Wing Space”) as approximately shown on Exhibit J-3 attached hereto, on the following terms and conditions:

 

(i)                                     Subject to the right of Landlord to extend or renew any then current lease (or enter into a new lease or extension with the same tenant even if no extension or renewal rights are contained in said then current lease) for all or any portion of the 7th Floor West Wing Space, in the event that any portion of the 7th Floor West Wing Space shall become available for leasing, in the Landlord’s sole discretion during the Term, Landlord shall give notice (the “7th Floor West Wing ROFO Offer Notice”) to Tenant of the availability (or anticipated availability) of such space (the “7th Floor West Wing ROFO Offer Space”), setting forth the Annual Base Rent, the Base Years for Operating Costs, Taxes and Insurance and such other terms and conditions on which Landlord is prepared to lease the 7th Floor West Wing ROFO Offer Space to Tenant (the “7th Floor West Wing ROFO Offer Space Offered Terms”).

 

(ii)                                  Tenant shall have the right to lease all of the 7th Floor West Wing ROFO Offer Space described in the 7th Floor West Wing ROFO Offer Notice on the 7th Floor West Wing ROFO Offer Space Offered Terms within ten (10) days after the date of Landlord’s delivery of the 7th Floor West Wing ROFO Offer Notice to Tenant. Tenant’s failure to accept such 7th Floor West Wing ROFO Offer Space Offered Terms in writing within such ten (10) day period shall be deemed an election by Tenant to reject such 7th Floor West Wing ROFO Offer Space Offered Terms. Tenant may not elect to lease just a portion of the 7th Floor West Wing ROFO Offer Space, and any attempt by Tenant to make such an election shall be

 

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deemed a rejection by Tenant to lease the 7th Floor West Wing ROFO Offer Space (including any portion thereof).

 

(iii)                               In the event that Tenant timely accepts the 7th Floor West Wing ROFO Offer Space Offered Terms set forth in the 7th Floor West Wing ROFO Offer Notice, then Landlord and Tenant shall, within fifteen (15) days after the date of Tenant’s acceptance, enter into an amendment to this Lease incorporating the 7th Floor West Wing ROFO Offer Space into the Premises on the 7th Floor West Wing ROFO Offer Space Offered Terms.

 

(iv)                              In the event that Tenant rejects or is deemed to have rejected the 7th Floor West Wing ROFO Offer Space Offered Terms or fails to enter into such an amendment with Landlord within such fifteen (15) day period, as the case may be, then Landlord shall be free to lease the 7th Floor West Wing ROFO Offer Space on such terms as Landlord desires, in its sole discretion, and Tenant shall have no further rights under this Section 2(c) with respect to the 7th Floor West Wing ROFO Offer Space; provided, however, (i) Landlord shall be obligated to re-offer to Tenant the 7th Floor West Wing ROFO Offer Space pursuant to the terms and conditions of this section prior to leasing for the first time the 7th Floor West Wing ROFO Offer Space to a third party at less than 90% of the “net effective rent” (i.e., the actual rent after all factors are taken into account such as base rent escalations, allowances, free rent, operating expense and tax base years, free rent and any other economic terms) set forth in the applicable 7th Floor West Wing ROFO Offer Space Offered Terms and (ii) Tenant’s rights under this section shall continue to apply with respect to the balance of the 7th Floor West Wing Space not previously offered to Tenant pursuant to this section.

 

J-5-1

 

EXHIBIT J-1

 

PLAN OF 5th FLOOR EAST WING SPACE

 

Exhibit J-1 is intended only to show the general outline of the 5th Floor East Wing Space as of the beginning of the Term of this Lease. The depiction of interior windows, cubicles, modules, furniture and equipment in this Exhibit is for illustrative purposes only, but does not mean that such items exist. Landlord is not required to provide, install or construct any such items.  It does not in any way supersede any of Landlord’s rights set forth in the Lease with respect to arrangements and/or locations of public parts of the Building and changes in such arrangements and/or locations. It is not to be scaled; any measurements or distances shown should be taken as approximate. The inclusion of elevators, stairways electrical and mechanical closets, and other similar facilities for the benefit of occupants of the Building does not mean such items are part of the 5th Floor East Wing Space.

 

 

J-1-1

 

EXHIBIT J-2

 

PLAN OF 6th FLOOR EAST WING SPACE

 

Exhibit J-2 is intended only to show the general outline of the 6th Floor East Wing Space as of the beginning of the Term of this Lease. The depiction of interior windows, cubicles, modules, furniture and equipment in this Exhibit is for illustrative purposes only, but does not mean that such items exist. Landlord is not required to provide, install or construct any such items. It does not in any way supersede any of Landlord’s rights set forth in the Lease with respect to arrangements and/or locations of public parts of the Building and changes in such arrangements and/or locations.  It is not to be scaled; any measurements or distances shown should be taken as approximate. The inclusion of elevators, stairways electrical and mechanical closets, and other similar facilities for the benefit of occupants of the Building does not mean such items are part of the 6th Floor East Wing Space.

 

 

J-2-1

 

EXHIBIT J-3

 

PLAN OF 7th FLOOR WEST WING SPACE

 

Exhibit J-3 is intended only to show the general outline of the 7th Floor West Wing Space as of the beginning of the Term of this Lease. The depiction of interior windows, cubicles, modules, furniture and equipment in this Exhibit is for illustrative purposes only, but does not mean that such items exist. Landlord is not required to provide, install or construct any such items. It does not in any way supersede any of Landlord’s rights set forth in the Lease with respect to arrangements and/or locations of public parts of the Building and changes in such arrangements and/or locations. It is not to be scaled; any measurements or distances shown should be taken as approximate. The inclusion of elevators, stairways electrical and mechanical closets, and other similar facilities for the benefit of occupants of the Building does not mean such items are part of the 7th Floor West Wing Space.

 

START HERE

 

 

J-3-1

 

EXHIBIT K

 

LANDLORD’S SERVICES

 

I.                                        CLEANING

 

A.                                    Office Area

 

Daily: (Monday through Friday, inclusive. Legal Holidays excepted.)

 

1.                                      Empty and clean all waste receptacles; wash receptacles as necessary.

 

2.                                      Sweep and dust mop all uncarpeted areas using a dust-treated mop.

 

3.                                      Vacuum all rugs and carpeted areas.

 

4.                                      Hand dust and wipe clean with treated cloths all horizontal surfaces including furniture, office equipment, window sills, door ledges, chair rails, and convector tops, within normal reach.

 

5.                                      Wash clean all water fountains.

 

6.                                      Remove and dust under all desk equipment and telephones and replace same.

 

7.                                      Wipe clean all brass and other bright work.

 

8.                                      Hand dust all grill work within normal reach.

 

Weekly:

 

1.                                      Dust coat racks, and the like.

 

2.                                      Remove all finger marks from private entrance doors, light switches and doorways.

 

Quarterly:

 

1.                                      Clean and spray wax vinyl tile floors in tenant areas.

 

2.                                      Render high dusting not reached in daily cleaning to include:

 

a.                                      Dusting all pictures, frames, charts, graphs, and similar wall hangings.

 

b.                                      Dusting all vertical surfaces, such as walls, partitions, doors, and K-1 ducts.

 

c.                                       Dusting all pipes, ducts, and high moldings.

 

B.                                    Lavatories

 

Daily: (Monday through Friday, inclusive. Legal Holidays excepted.)

 

1.                                      Sweep and damp mop floors.

 

K-1

 

2.                                      Clean all mirrors, powder shelves, dispensers and receptacles, bright work, flushometers and piping.

 

3.                                      Wash all toilet seats.

 

4.                                      Wash all basins, bowls and urinals.

 

5.                                      Dust and clean all powder room fixtures.

 

6.                                      Empty and clean paper towel and sanitary disposal receptacles.

 

7.                                      Refill tissue holders, soap dispensers, towel dispensers, vending sanitary dispensers; materials to be finished by Landlord.

 

8.                                      A sanitizing solution will be used in all lavatory cleaning.

 

Monthly:

 

1.                                      Machine scrub lavatory floors.

 

2.                                      Wash all partitions and tile walls in lavatories.

 

C.                                    Main Lobby, Elevators, Building Exterior and Corridors

 

Daily: (Monday through Friday, inclusive. Legal Holidays excepted.)

 

1.                                      Sweep and wash all floors.

 

2.                                      Wash all rubber mats.

 

3.                                      Clean elevators, wash or vacuum floors, wipe down walls and doors.

 

4.                                      Spot clean any metal work inside lobby.

 

5.                                      Spot clean any metal work surrounding Building entrance doors.

 

Monthly:                                             All resilient tile floors in public areas to be treated equivalent to spray buffing.

 

D.                                    Window Cleaning

 

Windows of exterior walls will be washed quarterly.

 

II.                                   HEATING, VENTILATING, AND AIR CONDITIONING

 

1.                                      Heating, ventilating, and air conditioning as required to provide reasonably comfortable temperatures for normal Business Day occupancy (excepting holidays); Monday through Friday from 8:00 a.m. to 6:00 p.m. and Saturday from 8:00 a.m. to 1:00 p.m., subject to the provisions of Section 7(a) of the Lease.

 

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2.                                      Maintenance of any additional or special air conditioning equipment and the associated operating cost will be at Tenant’s expense.

 

III.                              WATER

 

Hot water for lavatory purposes and cold water for drinking, lavatory and toilet purposes.

 

IV.                               ELEVATORS

 

Elevators for the use of all tenants and the general for access to and from all floors of the Building. Programming of elevators (including, but not limited service elevators) shall be as Landlord from time to determines best for the Building as a whole.

 

V.                                    RELAMPING OF LIGHT FIXTURES

 

Tenant will reimburse Landlord for the cost of lamps, ballasts and starters and the cost of replacing same within the Premises.

 

VI.                               CAFETERIA AND VENDING INSTALLATIONS

 

1.                                      Any space to be used primarily for lunchroom or cafeteria operation shall be Tenant’s responsibility to keep clean and sanitary, it being understood that Landlord’s approval of such use must be first obtained in writing.

 

2.                                      Vending machines or refreshment service installations by Tenant must be approved by Landlord in writing and shall be restricted in use to employees and business callers. All cleaning necessitated by such installations shall be at Tenant’s expense.

 

VII.                          ELECTRICITY

 

A.                                    Landlord, at Landlord’s expense, shall furnish electrical energy required for lighting, electrical facilities, equipment, machinery, fixtures, and appliances used in or for the benefit of the Premises in accordance with the provisions of the Lease of which this Exhibit is a part.

 

B.                                    Electricity to the Premises shall be submetered or check metered to the Premises. Tenant shall pay for all charges for electric consumption in the Premises as reasonably determined by Landlord, but without mark-up above actual cost, within ten (10) days of Landlord’s invoice therefor, from time to time, but not more often than monthly; provided that upon written notice from Landlord, Tenant shall pay an estimate of such charges, as reasonably determined by Landlord from time to time, monthly at the same time and in the same manner as payments of Base Rent, with appropriate payment (or credit against future electric charges) to be made annually based upon Landlord’s revised estimates for the prior year. If at any time electric charges for the Premises are payable to the utility therefor, because of the installation of submeters or check meters or otherwise, Tenant shall pay such charges before they become due. The foregoing shall not constitute Landlord’s consent to the installation of any such meters. Landlord shall have the exclusive right to designate the electric service provider to serve the Building.

 

Tenant covenants and agrees that its use of electric current (exclusive of HVAC) shall not exceed 8.0 watts per square foot of rentable floor area and that its total connected lighting

 

K-3

 

load will not exceed the maximum load from time to time permitted by applicable governmental regulations.

 

K-4

 

EXHIBIT L

 

Moisture and Mold Control

 

Exercising proper ventilation and moisture control precautions will help maintain your comfort and prevent mold growth in the Premises. Tenants should adopt and implement the following guidelines to avoid the development of excessive moisture or mold growth:

 

1.                                      Report any maintenance problems involving water, moist conditions, or mold to Landlord promptly and conduct its required activities in a manner which prevents unusual moisture conditions or mold growth.

 

2.                                      Do not block or inhibit the flow of return or make-up air into the HVAC system. Maintain the Premises at a consistent temperature and humidity level in accordance with Landlord’s instructions.

 

3.                                      Regularly conduct janitorial activities, especially in bathrooms, kitchens, and janitorial spaces to remove mildew and prevent or correct moist conditions.

 

4.                                      Maintain water in all drain traps at all times.

 

Tenant Signature:

 

	
CARGURUS, INC.,   a Delaware corporation
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
By: 
    	
/s/ E. Langley Steinert
    	
 
    	
Date:
    	
 
    
	
Name:   E. Langley Steinert
    	
 
    	
 
    
	
Title:   CEO
    	
 
    	
 
    
					

 

L-1

 

EXHIBIT M

 

LIST OF APPROVED ISSUING BANKS

 

1.                                      Bank of America

2.                                      PNC Bank

3.                                      SunTrust Bank

4.                                      US Bank, N.A.

5.                                      Wells Fargo Bank

6.                                      BB&T

7.                                      Fifth Third Bank

8.                                      JPMorgan Chase

9.                                      National City Bank

10.                               Northern Trust Bank

 

M-1

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