Document:

Exhibit 10.17

 

CERTAIN CONFIDENTIAL INFORMATION CONTAINED IN THIS DOCUMENT, MARKED BY [*], HAS BEEN OMITTED BECAUSE IT IS NOT MATERIAL AND WOULD LIKELY CAUSE COMPETITIVE HARM TO ACELL, INC. IF PUBLICLY DISCLOSED.

 

LEASE

 

MOR GATE LLC,

Landlord,

 

and

 

ACELL, INC.,

Tenant

 

At

 

6630 Eli Whitney Drive

Columbia, Maryland  21046

 

 

TABLE OF CONTENTS

 

	
 
    	
 
    	
Page
    
	
 
    	
 
    	
 
    
	
1.
    	
USE AND RESTRICTIONS ON   USE
    	
1
    
	
 
    	
 
    	
 
    
	
2.
    	
TERM
    	
2
    
	
 
    	
 
    	
 
    
	
3.
    	
RENT
    	
3
    
	
 
    	
 
    	
 
    
	
4.
    	
RENT ADJUSTMENTS
    	
4
    
	
 
    	
 
    	
 
    
	
5.
    	
SECURITY DEPOSIT
    	
5
    
	
 
    	
 
    	
 
    
	
6.
    	
ALTERATIONS
    	
6
    
	
 
    	
 
    	
 
    
	
7.
    	
REPAIR
    	
6
    
	
 
    	
 
    	
 
    
	
8.
    	
LIENS
    	
7
    
	
 
    	
 
    	
 
    
	
9.
    	
ASSIGNMENT AND   SUBLETTING
    	
7
    
	
 
    	
 
    	
 
    
	
10.
    	
INDEMNIFICATION
    	
9
    
	
 
    	
 
    	
 
    
	
11.
    	
INSURANCE
    	
9
    
	
 
    	
 
    	
 
    
	
12.
    	
WAIVER OF SUBROGATION
    	
9
    
	
 
    	
 
    	
 
    
	
13.
    	
SERVICES AND UTILITIES
    	
10
    
	
 
    	
 
    	
 
    
	
14.
    	
HOLDING OVER
    	
10
    
	
 
    	
 
    	
 
    
	
15.
    	
SUBORDINATION
    	
10
    
	
 
    	
 
    	
 
    
	
16.
    	
RULES AND REGULATIONS
    	
11
    
	
 
    	
 
    	
 
    
	
17.
    	
REENTRY BY LANDLORD
    	
11
    
	
 
    	
 
    	
 
    
	
18.
    	
DEFAULT
    	
11
    
	
 
    	
 
    	
 
    
	
19.
    	
REMEDIES
    	
12
    
	
 
    	
 
    	
 
    
	
20.
    	
TENANT’S BANKRUPTCY OR   INSOLVENCY.
    	
15
    
	
 
    	
 
    	
 
    
	
21.
    	
QUIET ENJOYMENT
    	
15
    
	
 
    	
 
    	
 
    
	
22.
    	
CASUALTY
    	
15
    
	
 
    	
 
    	
 
    
	
23.
    	
EMINENT DOMAIN
    	
16
    
	
 
    	
 
    	
 
    
	
24.
    	
SALE BY LANDLORD
    	
17
    
	
 
    	
 
    	
 
    
	
25.
    	
ESTOPPEL CERTIFICATES
    	
17
    
	
 
    	
 
    	
 
    
	
26.
    	
SURRENDER OF PREMISES
    	
17
    
	
 
    	
 
    	
 
    
	
27.
    	
NOTICES
    	
18
    
	
 
    	
 
    	
 
    
	
28.
    	
TAXES PAYABLE BY TENANT
    	
18
    
	
 
    	
 
    	
 
    
	
29.
    	
INTENTIONALLY DELETED
    	
18
    
	
 
    	
 
    	
 
    
	
30.
    	
DEFINED TERMS AND HEADINGS
    	
18
    
	
 
    	
 
    	
 
    
	
31.
    	
TENANT’S AUTHORITY
    	
18
    
	
 
    	
 
    	
 
    
	
32.
    	
FINANCIAL STATEMENTS   AND CREDIT REPORTS
    	
19
    
	
 
    	
 
    	
 
    
	
33.
    	
COMMISSIONS
    	
19
    
	
 
    	
 
    	
 
    
	
34.
    	
TIME AND APPLICABLE LAW
    	
19
    
	
 
    	
 
    	
 
    
	
35.
    	
SUCCESSORS AND ASSIGNS
    	
19
    
	
 
    	
 
    	
 
    
	
36.
    	
ENTIRE AGREEMENT
    	
19
    
	
 
    	
 
    	
 
    
	
37.
    	
EXAMINATION NOT OPTION
    	
19
    

 

i

 

TABLE OF CONTENTS

(continued)

 

	
 
    	
 
    	
Page
    
	
 
    	
 
    	
 
    
	
37.
    	
EXAMINATION NOT OPTION
    	
19
    
	
 
    	
 
    	
 
    
	
38.
    	
RECORDATION
    	
19
    
	
 
    	
 
    	
 
    
	
39.
    	
RIGHT OF FIRST OFFER
    	
19
    
	
 
    	
 
    	
 
    
	
40.
    	
LIMITATION OF   LANDLORD’S LIABILITY
    	
20
    

 

EXHIBIT A — FLOOR PLAN DEPICTING THE PREMISES

 

EXHIBIT A-1 — SITE PLAN

 

EXHIBIT B — INITIAL ALTERATIONS

 

EXHIBIT C — COMMENCEMENT DATE MEMORANDUM

 

EXHIBIT D — RULES AND REGULATIONS

 

EXHIBIT E —  HVAC UNITS

 

ii

 

MULTI TENANT INDUSTRIAL NET LEASE

 

REFERENCE PAGES

 

	
BUILDING:
    	
6630 Eli Whitney Drive

Columbia, Maryland  21046

 
    
	
LANDLORD:
    	
MOR Gate LLC

 
    
	
LANDLORD’S ADDRESS:
    	
c/o RREEF

8980 Route 108,   Suite C

Columbia, MD  21045

 
    
	
WIRE INSTRUCTIONS AND/OR   ADDRESS FOR RENT PAYMENT:
    	
MOR Gate LLC

Gateway 58-6630

P. O. Box 6233

Hicksville, New   York  11802-6233

 
    
	
LEASE REFERENCE DATE:
    	
   January 27                  ,   2015
    
	
 
    	
 
    
	
TENANT:
    	
ACell, Inc., a   Delaware corporation
    
	
 
    	
 
    
	
TENANT’S NOTICE   ADDRESS:
    	
 
    
	
 
    	
 
    
	
            (a) As of beginning of Term:
    	
6630 Eli Whitney Drive,   Suite Number 5

Columbia, Maryland  21046

 
    
	
            (b) Prior to beginning of   Term (if different):
    	
N/A

 
    
	
PREMISES ADDRESS:
    	
6630 Eli Whitney Drive,   Suite Number 5

Columbia, Maryland  21046

 
    
	
PREMISES RENTABLE AREA:
    	
Approximately 9,750   rentable square feet (for outline of Premises see Exhibit A)

 
    
	
USE:
    	
Office, medical device   manufacturing, medical research, and all other legally permitted uses related   thereto

 
    
	
COMMENCEMENT DATE:
    	
April 1, 2015

 
    
	
TERM OF LEASE:
    	
Approximately eight   (8) years, beginning on the Commencement Date and ending on the   Termination Date.  The period from the   Commencement Date to the last day of the same month is the “Commencement   Month.”

 
    
	
TERMINATION DATE:
    	
March 31, 2023
    

 

Initials

 

iii

 

	
ANNUAL RENT and MONTHLY   INSTALLMENT OF RENT(Article 3):
    	
 
    

 

	
Period
    	
 
    	
Rentable Square
    	
 
    	
Annual Rent
    	
 
    	
 
    	
 
    	
Monthly Installmen
    	
 
    
	
from
    	
 
    	
through
    	
 
    	
Footage
    	
 
    	
Per Square Foot
    	
 
    	
Annual Rent
    	
 
    	
of Rent
    	
 
    
	
4/1/2015
    	
 
    	
3/31/2016
    	
 
    	
9,750
    	
 
    	
$
    	
[*]
    	
 
    	
$
    	
[*]
    	
 
    	
$
    	
[*]
    	
 
    
	
4/1/2016
    	
 
    	
3/31/2017
    	
 
    	
9,750
    	
 
    	
$
    	
[*]
    	
 
    	
$
    	
[*]
    	
 
    	
$
    	
[*]
    	
 
    
	
4/1/2017
    	
 
    	
3/31/2018
    	
 
    	
9,750
    	
 
    	
$
    	
[*]
    	
 
    	
$
    	
[*]
    	
 
    	
$
    	
[*]
    	
 
    
	
4/1/2018
    	
 
    	
3/31/2019
    	
 
    	
9,750
    	
 
    	
$
    	
[*]
    	
 
    	
$
    	
[*]
    	
 
    	
$
    	
[*]
    	
 
    
	
4/1/2019
    	
 
    	
3/31/2020
    	
 
    	
9,750
    	
 
    	
$
    	
[*]
    	
 
    	
$
    	
[*]
    	
 
    	
$
    	
[*]
    	
 
    
	
4/1/2020
    	
 
    	
3/31/2021
    	
 
    	
9,750
    	
 
    	
$
    	
[*]
    	
 
    	
$
    	
[*]
    	
 
    	
$
    	
[*]
    	
 
    
	
4/1/2021
    	
 
    	
3/31/2022
    	
 
    	
9,750
    	
 
    	
$
    	
[*]
    	
 
    	
$
    	
[*]
    	
 
    	
$
    	
[*]
    	
 
    
	
4/1/2022
    	
 
    	
3/31/2023
    	
 
    	
9,750
    	
 
    	
$
    	
[*]
    	
 
    	
$
    	
[*]
    	
 
    	
$
    	
[*]
    	
 
    

 

	
INITIAL ESTIMATED   MONTHLY INSTALLMENT OF RENT ADJUSTMENTS (Article 4)
    	
Taxes               $[*]

Expenses         $[*]
    
	
 
    	
 
    
	
TENANT’S PROPORTIONATE   SHARE:
    	
35.24%
    
	
 
    	
 
    
	
SECURITY DEPOSIT:
    	
$[*]
    
	
 
    	
 
    
	
ASSIGNMENT/SUBLETTING   FEE
    	
$[*]
    
	
 
    	
 
    
	
REAL ESTATE BROKER DUE   COMMISSION:
    	
CBRE, Inc. and   Jones Lange LaSalle Brokerage, Inc.
    
	
 
    	
 
    
	
TENANT’S NAICS CODE:
    	
                    
    
	
 
    	
 
    
	
AMORTIZATION RATE:
    	
[*]%
    

 

The Reference Pages information is incorporated into and made a part of the Lease.  In the event of any conflict between any Reference Pages information and the Lease, the Lease shall control.  This Lease includes Exhibits A through E, all of which are made a part of this Lease.

 

	
LANDLORD:
    	
 
    	
TENANT:
    
	
 
    	
 
    	
 
    
	
MOR GATE LLC
    	
 
    	
ACELL, INC.
    
	
 
    	
 
    	
 
    
	
By:
    	
/s/ Michael A. Reddy
    	
 
    	
By:
    	
/s/ Edward O’Brien
    
	
 
    	
Michael A. Ready
    	
 
    	
Name:
    	
Edward O’Brien
    
	
 
    	
Vice President
    	
 
    	
Title:
    	
CFO
    
	
Dated:
    	
1/30                  ,   2015
    	
 
    	
Dated:
    	
1-27-15                           ,   2015
    

 

iv

 

LEASE

 

By this Lease Landlord leases to Tenant and Tenant leases from Landlord the Premises in the Building as set forth and described on the Reference Pages. The Premises are depicted on the floor plan attached hereto as Exhibit A, and the Building is depicted on the site plan attached hereto as Exhibit A-1.  The Reference Pages, including all terms defined thereon, are incorporated as part of this Lease.

 

1.             USE AND RESTRICTIONS ON USE.

 

1.1          The Premises are to be used solely for the purposes set forth on the Reference Pages.  Tenant shall not do or permit anything to be done in or about the Premises which will in any way obstruct or interfere with the rights of other tenants or occupants of the Building or injure, annoy, or disturb them, or allow the Premises to be used for any improper, immoral, unlawful, or objectionable purpose.  Tenant shall not do, permit or suffer in, on, or about the Premises the sale of any alcoholic liquor without the written consent of Landlord first obtained.  Tenant shall comply with all governmental laws, ordinances and regulations applicable to the use of the Premises and its occupancy and shall promptly comply with all governmental orders and directions for the correction, prevention and abatement of any violations in the Building or appurtenant land, caused or permitted by, or resulting from the specific use by, Tenant, or in or upon, or in connection with, the Premises, all at Tenant’s sole expense.  Tenant shall not do or permit anything to be done on or about the Premises or bring or keep anything into the Premises which will in any way increase the rate of, invalidate or prevent the procuring of any insurance protecting against loss or damage to the Building or any of its contents by fire or other casualty or against liability for damage to property or injury to persons in or about the Building or any part thereof without the consent of Landlord which shall not be unreasonably withheld, conditioned or delayed.

 

1.2          Tenant shall not, and shall not direct, suffer or permit any of its agents, contractors, employees, licensees or invitees (collectively, the “Tenant Entities”) to at any time handle, use, manufacture, store or dispose of in or about the Premises or the Building any (collectively “Hazardous Materials”) flammables, explosives, radioactive materials, hazardous wastes or materials, toxic wastes or materials, or other similar substances, petroleum products or derivatives or any substance subject to regulation by or under any federal, state and local laws and ordinances relating to the protection of the environment or the keeping, use or disposition of environmentally hazardous materials, substances, or wastes, presently in effect or hereafter adopted, all amendments to any of them, and all rules and regulations issued pursuant to any of such laws or ordinances (collectively “Environmental Laws”), nor shall Tenant suffer or permit any Hazardous Materials to be used in any manner not fully in compliance with all Environmental Laws, in the Premises or the Building and appurtenant land or allow the environment to become contaminated with any Hazardous Materials.  Notwithstanding the foregoing, Tenant may handle, store, use or dispose of products containing small quantities of Hazardous Materials (such as aerosol cans containing insecticides, toner for copiers, paints, paint remover and the like) to the extent customary and necessary for the use of the Premises for general office, medical device manufacturing and medical research purposes; provided that Tenant shall always handle, store, use, and dispose of any such Hazardous Materials in a safe and lawful manner and never allow such Hazardous Materials to contaminate the Premises, Building and appurtenant land or the environment.  Tenant shall protect, defend, indemnify and hold each and all of the Landlord Entities (as defined in Article 30) harmless from and against any and all loss, claims, liability or costs (including court costs and attorney’s fees) incurred by reason of any actual or asserted failure of Tenant to fully comply with all applicable Environmental Laws, or the presence, handling, use or disposition in or from the Premises of any Hazardous Materials by Tenant or any Tenant Entity (even though permissible under all applicable Environmental Laws or the provisions of this Lease), or by reason of any actual or asserted failure of Tenant to keep, observe, or perform any provision of this Section 1.2.

 

1.3          Tenant and the Tenant Entities will be entitled to the non-exclusive use of the common areas of the Building as they exist from time to time during the Term and any renewal periods, including the parking facilities, subject to Landlord’s rules and regulations regarding such use.  However, in no event will Tenant or the Tenant Entities park more vehicles in the parking facilities than four (4) spaces per 1,000 rentable square feet of the Premises leased hereunder.  The foregoing shall not be deemed to provide Tenant with an exclusive right to any parking spaces or any guaranty of the availability of any particular parking spaces or any specific number of parking spaces.

 

1.4          Tenant shall be permitted, at Tenant’s expense, to install Building standard suite entry signage at the Premises, subject to Landlord’s approval of design, size and location, which shall not be unreasonably withheld, conditioned or delayed.  Tenant shall be permitted to retain the current monument signage that is installed at the entrance of the office park.  All such signage shall comply with all applicable governmental and private restrictions and requirements.

 

1.5          Tenant shall have the right, at no additional rental charge, subject to the conditions set for the below, to locate up to five (5) pieces of Satellite Equipment (as hereafter defined) on the roof of the Building.  “Satellite Equipment” is 

 

1

 

roof top antennas, roof top satellite dishes and other roof top communication devices reasonably approved by Landlord with such approval not to be unreasonably withheld, conditioned or delayed.  Tenant’s right to so locate the Satellite Equipment is subject to the following conditions:  (a) the location of the Satellite Equipment shall be determined by Landlord, (b) the location, screening, size, and all other aspects of the Satellite Equipment must be approved by Landlord and must comply with all applicable zoning, land use, and other laws, ordinances and requirements and all private restrictions and park covenants, (c) all roof penetrations necessary for the installation of the Satellite Equipment shall be performed, at Landlord’s election, solely by Landlord’s contractor at Tenant’s expense, so long as Landlord’s contractor’s fees and expenses for so doing do not exceed market rates, (d) the Satellite Equipment shall be removed at the expiration of the Term, and (e) Tenant shall (i) maintain Satellite Equipment in good working order, (ii) pay for any repair of any damage to the roof of the Building due to such Satellite Equipment and (iii) indemnify and hold Landlord harmless for any claims or liabilities arising out of the installation, maintenance, use or removal of the Satellite Equipment.

 

2.             TERM.

 

2.1          The Term of this Lease shall begin on the Commencement Date and shall terminate on the Termination Date, unless sooner terminated by the provisions of this Lease.  Landlord shall tender possession of the Premises with all the work, if any, to be performed by Landlord pursuant to Exhibit B to this Lease substantially completed.  Tenant shall deliver a punch list of items not completed within thirty (30) days after Landlord tenders possession of the Premises and Landlord agrees to proceed with due diligence to perform its obligations regarding such items.  Tenant shall, at Landlord’s request, execute and deliver a memorandum agreement provided by Landlord in the form of Exhibit C attached hereto, setting forth the actual Commencement Date, Termination Date and, if necessary, a revised rent schedule.  Should Tenant fail to do so within thirty (30) days after Landlord’s written request, the information set forth in such memorandum provided by Landlord shall be conclusively presumed to be agreed and correct.

 

2.2          Tenant agrees that in the event of the inability of Landlord to deliver possession of the Premises on the Commencement Date for any reason, Landlord shall not be liable for any damage resulting from such inability, but Tenant shall not be liable for any rent until the time when Landlord can, after notice to Tenant, deliver possession of the Premises to Tenant.  No such failure to give possession on the Commencement Date shall affect the other obligations of Tenant under this Lease, except that if Landlord is unable to deliver possession of the Premises within [*] after the Commencement Date, Tenant shall have the option to terminate this Lease unless said delay is as a result of: (a) Tenant’s failure to agree to plans and specifications and/or construction cost estimates or bids; (b) Tenant’s request for materials, finishes or installations other than Landlord’s standard except those, if any, that Landlord shall have expressly agreed to furnish without extension of time agreed by Landlord; (c) Tenant’s change in any plans or specifications which was not caused by and is not directly connected with any breach by Landlord of any contractual obligation of Landlord to Tenant; or, (d) performance or completion by a party employed by Tenant (each of the foregoing, a “Tenant Delay”).  If any delay is the result of a Tenant Delay, the Commencement Date and the payment of rent under this Lease shall be accelerated by the number of days of such Tenant Delay.

 

2.3          Tenant and Tenant’s agents, employees and contractors may enter, use and occupy the Premises prior to the Commencement Date, and such entry, use or occupancy shall be subject to all the provisions of this Lease other than the payment of rent, including, without limitation, Tenant’s compliance with the insurance requirements of Article 11.  Said early possession shall not advance the Termination Date.

 

2.4          Provided that as of the time of the giving of the Extension Notice (as defined below) and the Commencement Date of the Extension Term, (as defined below) no uncured Event of Default (defined in Section 18 below) exists or would exist but for the passage of time or the giving of notice, or both; then Tenant will have the right to extend the Term of this Lease for two (2) additional terms of five (5) years (each, an “Extension Term”) commencing on the day following the expiration of the Term of this Lease (each, the “Commencement Date of the Extension Term”).  Tenant will give Landlord notice (each, the “Extension Notice”) of its election to extend the Term of this Lease at least 9 months, but not more than 12 months, prior to the scheduled expiration date of the Term of this Lease (the “Notice Period”).  Unless otherwise agreed to by Landlord, if Tenant does not give the Extension Notice during the Notice Period, Tenant’s right to extend the Term of this Lease will automatically terminate.  Time is of the essence as to the giving of each Extension Notice.

 

The Annual Rent payable by Tenant to Landlord during each Extension Term will be the then prevailing market rate for comparable space at the Building and comparable buildings in the vicinity of the Building, taking into account the size of the Premises, the length of the renewal term, market escalations, market concessions and the credit of Tenant.  The Annual Rent will not be reduced by reason of any costs or expenses saved by Landlord by reason of Landlord’s not having to find a new tenant for the Premises (including, without limitation, brokerage commissions, costs of improvements, rent concessions or lost rental income during any vacancy period).

 

2

 

The Annual Rent payable by Tenant to Landlord during each Extension Term will be determined in the following way:

 

(1)           Landlord and Tenant shall negotiate in good faith, making themselves available for negotiations, and if prior to Tenant’s delivery of the Extension Notice, Tenant and Landlord have previously agreed in writing upon the Annual Rent for the Extension Term, then the Annual Rent shall be as so agreed to by Landlord and Tenant.  If Landlord and Tenant have not previously agreed to the Annual Rent for the Extension Term when Tenant sends Landlord the Extension Notice, then Landlord shall notify Tenant (“Landlord’s Determination Notice”) of Landlord’s determination of Annual Rent within 30 days of Tenant’s Extension Notice.  If Tenant disagrees with Landlord’s determination, Tenant shall notify Landlord (“Tenant’s Notice of Disagreement”) within ten (10) business days after written receipt of Landlord’s written Determination Notice, either (A) revoking and terminating its election for the Extension Term, or (B) requesting that the Annual Rent be determined by the Brokers, pursuant to the procedure set forth below (the “3 Broker Method”).  If Tenant so elects to have the Annual Rent for the Extension Term determined by the 3 Broker Method, then the Annual Rent shall be determined as follows:  Landlord and Tenant shall, within fifteen (15) days of the date on which Tenant’s Notice of Disagreement was given, each appoint a Broker (as hereinafter defined) for the purpose of determining Annual Rent.  A “Broker” shall mean a Maryland real estate broker, duly licensed for a period in excess of ten (10) years and who has at least ten (10) years’ experience in leasing flex buildings in the greater Baltimore area.  In the event that the two (2) Brokers fail to agree as to the Annual Rent within a period of thirty (30) days after the appointment of the second Broker, the two (2) Brokers shall forthwith appoint a third Broker, who shall make a determination of Annual Rent in the manner hereinafter set forth within fifteen (15) days thereafter.  If the two (2) Brokers fail to agree with such third Broker within such fifteen (15) day period, such third Broker shall be appointed by a judge of the state court located in the county in which the Building is located.  Within five (5) days of the appointment of such third Broker, each party shall submit to the third Broker a written report setting forth its determination of Annual Rent, together with such information on comparable rentals or such other evidence as such party shall deem relevant.  The third Broker shall, within three (3) days following the submission of such written reports, render its decision by selecting the determination of Annual Rent submitted by either the Broker selected by Landlord or the Broker selected by Tenant, which in the judgment of the third Broker, most nearly reflects the Annual Rent for the Premises.  It is expressly understood that such third Broker shall have no power or authority to select any Annual Rent other than the Annual Rent submitted by the Broker for Landlord or submitted by the Broker for Tenant.  The decision of such Brokers or third Broker, as the case may be, shall be final and binding upon the parties, and such decision shall be in writing and a copy shall be delivered simultaneously to Landlord and to Tenant.  Tenant may not rescind its Extension Notice for any reason.  If such Brokers fail to deliver their decision as set forth above prior to the expiration of the initial Term of this Lease, Tenant shall pay to Landlord Annual Rent at the rate then in effect on the last day of the then current Term of this Lease until such decision is so delivered.  If the Annual Rent as determined above is in excess of the actual rent paid, Tenant, within five (5) days of demand, shall pay to Landlord the difference between the actual rent paid and the Annual Rent from the Commencement Date of the Extension Term.  Landlord and Tenant shall each be responsible for and shall pay the fee of the Broker appointed by them, and Landlord and Tenant shall share equally in the fee of the third Broker.

 

Except for the Annual Rent as determined above, Tenant’s occupancy of the Premises during the Extension Term will be on the same terms and conditions (including the payment of Additional Rent) as are in effect immediately prior to the expiration of the initial Term of this Lease.

 

Landlord will have no obligation to refurbish or otherwise improve the Premises for the Extension Term.  The Premises will be tendered on the Commencement Date of the Extension Term in “as-is” condition.

 

If the Lease is extended for the Extension Term, Landlord will prepare, and both parties will execute, an amendment to the Lease confirming the extension of the Lease Term and the other provisions applicable thereto (the “Amendment”).

 

3.             RENT.

 

3.1          Tenant agrees to pay to Landlord the Annual Rent in effect from time to time by paying the Monthly Installment of Rent then in effect on or before the first day of each full calendar month during the Term, except that the first full month’s rent shall be paid upon the execution of this Lease.  The Monthly Installment of Rent in effect at any time shall be one-twelfth (1/12) of the Annual Rent in effect at such time.  Rent for any period during the Term which is less than a full month shall be a prorated portion of the Monthly Installment of Rent based upon the number of days in such month.  Said rent shall be paid to Landlord, without deduction or offset and without notice or demand, at the Rent Payment Address, as set forth on the Reference Pages, or to such other person or at such other place as Landlord may from time to time designate in writing.  If an Event of Default occurs more than twice in any calendar year, Landlord may require by written notice to Tenant that all subsequent rent payments be made by an automatic payment from Tenant’s bank account to Landlord’s 

 

3

 

account, without cost to Landlord.  Tenant must implement such automatic payment system prior to the next scheduled rent payment or within [*] days after Landlord’s notice, whichever is later.  Unless specified in this Lease to the contrary, all amounts and sums payable by Tenant to Landlord pursuant to this Lease shall be deemed additional rent.

 

3.2          Tenant recognizes that late payment of any rent or other sum due under this Lease will result in administrative expense to Landlord, the extent of which additional expense is difficult and impractical to ascertain.  Tenant therefore agrees, that if rent or any other sum is not paid when due and payable pursuant to this Lease, a late charge shall be imposed in an amount equal to the greater of:  [*] or other payment.  The amount of the late charge to be paid by Tenant shall be reassessed and added to Tenant’s obligation for each successive month until paid.  [*] The provisions of this Section 3.2 in no way relieve Tenant of the obligation to pay rent or other payments on or before the date on which they are due, nor do the terms of this Section 3.2 in any way affect Landlord’s remedies pursuant to Article 19 of this Lease in the event said rent or other payment is unpaid after date due.

 

4.             RENT ADJUSTMENTS.

 

4.1          For the purpose of this Article 4, the following terms are defined as follows:

 

4.1.1       Lease Year:  Each calendar year which falls within the Term.

 

4.1.2       Expenses:  All costs of operation, maintenance, repair, replacement and management of the Building (including the amount of any credits which Landlord may grant to particular tenants of the Building in lieu of providing any standard services or paying any standard costs described in this Section 4.1.2 for similar tenants), as determined in accordance with generally accepted accounting principles, including the following costs by way of illustration, but not limitation: water and sewer charges; insurance charges of or relating to all insurance policies and endorsements deemed by Landlord to be reasonably necessary or desirable and relating in any manner to the protection, preservation, or operation of the Building or any part thereof; utility costs, including, but not limited to, the cost of heat, light, power, steam, gas; waste disposal; the cost of janitorial services; the cost of security and alarm services (including any central station signaling system); costs of cleaning, repairing, replacing and maintaining the common areas, including parking and landscaping, window cleaning costs; labor costs; costs and expenses of managing the Building including management and/or administrative fees; material costs; equipment costs including the cost of maintenance, repair and service agreements and rental and leasing costs; purchase costs of equipment; current rental and leasing costs of items which would be capital items if purchased; tool costs; licenses, permits and inspection fees; wages and salaries; employee benefits and payroll taxes; accounting and legal fees; any sales, use or service taxes incurred in connection therewith. In addition, Landlord shall be entitled to recover, as additional rent (which, along with any other capital expenditures constituting Expenses, Landlord may either include in Expenses or cause to be billed to Tenant along with Expenses and Taxes but as a separate item), Tenant’s Proportionate Share of: (i) an allocable portion of the cost of capital improvement items which are reasonably calculated to reduce operating expenses; (ii) the cost of fire sprinklers and suppression systems and other life safety systems; and (iii) other capital expenses which are required under any governmental laws, regulations or ordinances which were not applicable to the Building at the time of the Lease; but the costs described in this sentence shall be amortized over the longest, useful life of such expenditures in accordance with such reasonable life and amortization schedules as shall be determined by Landlord  based on available manufacturer’s information, in accordance with generally accepted accounting principles, with interest on the unamortized amount at one percent (1%) in excess of the Wall Street Journal prime lending rate announced from time to time.  Expenses shall not include capital improvements (except for those capital improvements set forth above in subsections (i), (ii) and (iii) of this Section 4.1.2), depreciation or amortization of the Building or equipment in the Building except as provided herein, loan principal payments, costs of alterations of tenants’ premises, leasing commissions, interest expenses on long-term borrowings or advertising costs, or capital improvements (except as specifically listed in subparagraphs (i) through (iii) above of this Section 4.1.2.

 

4.1.3       Taxes:  Real estate taxes and any other taxes, charges and assessments which are levied with respect to the Building or the land appurtenant to the Building, or with respect to any improvements, fixtures and equipment or other property of Landlord, real or personal, located in the Building and used in connection with the operation of the Building and said land, any payments to any ground lessor in reimbursement of tax payments made by such lessor; and all fees, expenses and costs incurred by Landlord in investigating, protesting, contesting or in any way seeking to reduce or avoid increase in any assessments, levies or the tax rate pertaining to any Taxes to be paid by Landlord in any Lease Year.  Taxes shall not include any corporate franchise, or estate, inheritance or net income tax, or tax imposed upon any transfer by Landlord of its interest in this Lease or the Building or any taxes to be paid by Tenant pursuant to Article 28.

 

4.2          Tenant shall pay as additional rent for each Lease Year Tenant’s Proportionate Share of Expenses and Taxes incurred for such Lease Year.

 

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4.3          The annual determination of Expenses shall be made by Landlord and shall be binding upon Landlord and Tenant, subject to the provisions of this Section 4.3.  During the Term, Tenant may review, at Tenant’s sole cost and expense, the itemized books and records supporting such determination in an office of Landlord, or Landlord’s agent, during normal business hours, upon giving Landlord five (5) days advance written notice within [*] days after receipt of such determination, but in no event more often than once in any one (1) calendar year period, subject to execution of a confidentiality agreement acceptable to Landlord, and provided that if Tenant utilizes an independent accountant to perform such review it shall be one of national standing which is reasonably acceptable to Landlord, is not compensated on a contingency basis and is also subject to such confidentiality agreement.  If Tenant fails to object to Landlord’s determination of Expenses within [*] after receipt, or if any such objection fails to state with specificity the reason for the objection, Tenant shall be deemed to have approved such determination and shall have no further right to object to or contest such determination. In the event that during all or any portion of any Lease Year, the Building is not fully rented and occupied Landlord shall  make an appropriate adjustment in occupancy-related Expenses for such year for the purpose of avoiding distortion of the amount of such Expenses to be attributed to Tenant by reason of variation in total occupancy of the Building, by employing consistent and sound accounting and management principles to determine Expenses that would have been paid or incurred by Landlord had the Building been at least [*] rented and occupied, and the amount so determined shall be deemed to have been Expenses for such Lease Year.

 

4.4          Prior to the actual determination thereof for a Lease Year, Landlord may from time to time, [*] estimate Tenant’s liability for Expenses and/or Taxes under Section 4.2, Article 6 and Article 28 for the Lease Year or portion thereof.  Landlord will give Tenant written notification of the amount of such estimate and Tenant agrees that it will pay, by increase of its Monthly Installments of Rent due in such Lease Year, additional rent in the amount of such estimate.  Any such increased rate of Monthly Installments of Rent pursuant to this Section 4.4 shall remain in effect until further written notification to Tenant pursuant hereto.

 

4.5          When the above mentioned actual determination of Tenant’s liability for Expenses and/or Taxes is made for any Lease Year and when Tenant is so notified in writing, then:

 

4.5.1       If the total additional rent Tenant actually paid pursuant to Section 4.3 on account of Expenses and/or Taxes for the Lease Year is less than Tenant’s liability for Expenses and/or Taxes, then Tenant shall pay such deficiency to Landlord as additional rent in one lump sum within thirty (30) days of receipt of Landlord’s itemized bill therefor; and

 

4.5.2       If the total additional rent Tenant actually paid pursuant to Section 4.3 on account of Expenses and/or Taxes for the Lease Year is more than Tenant’s liability for Expenses and/or Taxes, then Landlord shall credit the difference against the then next due payments to be made by Tenant under this Article 4, or, if the Lease has terminated, refund the difference in cash.

 

4.6          If the Commencement Date is other than January 1 or if the Termination Date is other than December 31, Tenant’s liability for Expenses and Taxes for the Lease Year in which said Date occurs shall be prorated based upon a three hundred sixty-five (365) day year.

 

5.             SECURITY DEPOSIT.  Tenant shall deposit the Security Deposit with Landlord upon the execution of this Lease.  Said sum shall be held by Landlord as security for the faithful performance by Tenant of all the terms, covenants and conditions of this Lease to be kept and performed by Tenant and not as an advance rental deposit or as a measure of Landlord’s damage in case of Tenant’s default.  If Tenant defaults with respect to any provision of this Lease, Landlord may use any part of the Security Deposit for the payment of any rent or any other sum in default, or for the payment of any amount which Landlord may spend or become obligated to spend by reason of Tenant’s default, or to compensate Landlord for any other loss or damage which Landlord may suffer by reason of Tenant’s default.  If any portion is so used, Tenant shall within five (5) days after written demand therefor, deposit with Landlord an amount sufficient to restore the Security Deposit to its original amount and Tenant’s failure to do so shall be a material breach of this Lease.  Except to such extent, if any, as shall be required by law, Landlord shall not be required to keep the Security Deposit separate from its general funds, and Tenant shall not be entitled to interest on such deposit.  If Tenant shall fully and faithfully perform every provision of this Lease to be performed by it, the Security Deposit or any balance thereof shall be returned to Tenant at such time after termination of this Lease when Landlord shall have determined that all of Tenant’s obligations under this Lease have been fulfilled; however, in no event more than sixty (60) days after termination of the Lease.

 

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6.             ALTERATIONS.

 

6.1          Except for those, if any, specifically provided for in Exhibit B to this Lease, Tenant shall not make or suffer to be made any alterations, additions, or improvements, including, but not limited to, the attachment of any fixtures or equipment in, on, or to the Premises or any part thereof or the making of any improvements as required by Article 7, without the prior written consent of Landlord.  When applying for such consent, Tenant shall, if requested by Landlord, furnish complete plans and specifications for such alterations, additions and improvements. Landlord’s consent shall not be unreasonably withheld with respect to alterations which (i) are not structural in nature, (ii) are not visible from the exterior of the Building, (iii) do not affect or require modification of the Building’s electrical, mechanical, plumbing or other systems (exclusive of the HVAC systems) , and (iv) in aggregate do not cost more than $[*] per rentable square foot of that portion of the Premises affected by the alterations in question.

 

6.2          In the event Landlord consents to the making of any such alteration, addition or improvement by Tenant, the same shall be made [*] by using either Landlord’s contractor or a contractor reasonably approved by Landlord, in either event at Tenant’s sole cost and expense.  If Tenant shall employ any contractor other than Landlord’s contractor and such other contractor or any subcontractor of such other contractor shall employ any non-union labor or supplier, Tenant shall be responsible for and hold Landlord harmless from any and all delays, damages and extra costs suffered by Landlord as a result of any dispute with any labor unions concerning the wage, hours, terms or conditions of the employment of any such labor.  With respect to alterations to be made by Tenant to the Premises, Landlord may charge Tenant third-party costs actually incurred by Landlord in connection with the proposed work and the design thereof, with all such amounts being due [*] after Landlord’s demand.  In the event that, at Tenant’s request, Landlord serves as the construction manager for any alterations to the Premises, then Landlord may charge Tenant a construction management fee (“CM Fee”) not to exceed [*] of the cost of such work, to cover its overhead as it relates to such proposed work with such CM Fee payable by Tenant to Landlord within [*] days after billing of same.  No CM Fee shall be assessed by Landlord on cosmetic alterations, such as paint and carpet.

 

6.3          All alterations, additions or improvements proposed by Tenant shall be constructed in accordance with all government laws, ordinances, rules and regulations, using Building standard materials where applicable, and Tenant shall, prior to construction, provide the additional insurance required under Article 11 in such case, and also all such assurances to Landlord as Landlord shall reasonably require to assure payment of the costs thereof, including but not limited to, notices of non-responsibility, waivers of lien, surety company performance bonds and funded construction escrows and to protect Landlord and the Building and appurtenant land against any loss from any mechanic’s, materialmen’s or other liens.  Tenant shall pay in addition to any sums due pursuant to Article 4, any increase in real estate taxes attributable to any such alteration, addition or improvement for so long, during the Term, as such increase is ascertainable; at Landlord’s election said sums shall be paid in the same way as sums due under Article 4.

 

7.             REPAIR.

 

7.1          Landlord shall have no obligation to alter, remodel, improve, repair, decorate or paint the Premises, except as specified in Exhibit B if attached to this Lease and except that Landlord shall repair and maintain the structural portions of the roof, foundation and walls of the Building.  By taking possession of the Premises, Tenant accepts them as being in good order, condition and repair and in the condition in which Landlord is obligated to deliver them.  It is hereby understood and agreed that no representations respecting the condition of the Premises or the Building have been made by Landlord to Tenant, except as specifically set forth in this Lease.  Landlord shall not be liable for any failure to make any repairs or to perform any maintenance unless 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.

 

7.2          Tenant shall at its own cost and expense keep and maintain all parts of the Premises and improvements as are within the exclusive control of Tenant in good condition, promptly making all necessary repairs and replacements, whether ordinary or extraordinary, with materials and workmanship of the same character, kind and quality as the original (including, but not limited to, repair and replacement of all fixtures installed by Tenant, water heaters serving the Premises, windows, glass and plate glass, doors, skylights, interior walls and finish work, floors and floor coverings, heating and air conditioning systems serving the Premises (except as provided in Section 7.4(b) below), electrical systems and fixtures, sprinkler systems, dock boards, truck doors, dock bumpers, plumbing work and fixtures, and performance of regular removal of trash and debris).  Tenant as part of its obligations hereunder shall keep the Premises in a clean and sanitary condition.  Tenant will, as far as possible keep all such parts of the Premises from deterioration due to ordinary wear and from falling temporarily out of repair, and upon termination of this Lease in any way Tenant will yield up the Premises to Landlord in good condition and repair, loss by fire or other casualty excepted (but not excepting any damage to glass).  Tenant shall, at its own cost and expense, repair any damage to the Premises or the Building resulting from and/or caused in whole or in part by the negligence or misconduct of Tenant, its agents, employees, contractors, invitees, or any other person entering upon the Premises as a result of Tenant’s business activities or caused by Tenant’s default hereunder.

 

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7.3          Except as provided in Article 22, there shall be no abatement of rent and no liability of Landlord by reason of any injury to or interference with Tenant’s business arising from the making of any repairs, alterations or improvements in or to any portion of the Building or the Premises or to fixtures, appurtenances and equipment in the Building, provided that Landlord shall comply with all terms of Section 17.1 of this Lease when entering the Premises to make any repairs, replacements or improvements to the Premises or Building.  Except to the extent, if any, prohibited by law, Tenant waives the right to make repairs at Landlord’s expense under any law, statute or ordinance now or hereafter in effect.

 

7.4          (a)           Tenant shall, at its own cost and expense, enter into a regularly scheduled preventive maintenance/service contract with a maintenance contractor approved by Landlord for servicing all heating and air conditioning systems and equipment serving the Premises (and [*] a copy thereof shall be furnished to Landlord).  The service contract must include all services suggested by the equipment manufacturer in the operation/maintenance manual and must become effective within thirty (30) days of the date Tenant takes possession of the Premises. Should Tenant fail to do so, Landlord may, upon notice to Tenant, enter into such a maintenance/ service contract on behalf of Tenant or perform the work and in either case, charge Tenant the cost thereof along with a reasonable amount for Landlord’s overhead.

 

(b)           Landlord shall make all repairs and replacements, not otherwise covered by Tenant’s maintenance/service contract,  to those HVAC units serving the Premises which are  listed on Exhibit E attached hereto and any replacements of such HVAC units listed in Exhibit E attached hereto, at Landlord’s sole cost and expense when in the opinion of Landlord’s independent licensed HVAC contractor, reasonably exercised, such repair or replacement is necessary, so long as Tenant has continuously complied with Section 7.4(a) of this Lease, and further, that the need for such repair or replacement does not arise from Tenant’s negligence, abuse or misuse.  Tenant shall be solely responsible for the repair and replacement of any HVAC units serving the Premises which are not (i) listed on  Exhibit E attached hereto, or (ii) replacements of the HVAC units listed on Exhibit E attached hereto.

 

8.             LIENS.  Tenant shall keep the Premises, the Building and appurtenant land and Tenant’s leasehold interest in the Premises free from any liens arising out of any services, work or materials performed, furnished, or contracted for by Tenant, or obligations incurred by Tenant.  In the event that Tenant fails, within ten (10) days following the imposition of any such lien, to either cause the same to be released of record or provide Landlord with insurance against the same issued by a major title insurance company or such other protection against the same as Landlord shall accept (such failure to constitute an Event of Default), Landlord shall have the right to cause the same to be released by such means as it shall deem proper, including payment of the claim giving rise to such lien.  All such sums paid by Landlord and all expenses incurred by it in connection therewith shall be payable to it by Tenant within five (5) days of Landlord’s demand.

 

9.             ASSIGNMENT AND SUBLETTING.

 

9.1          Except as otherwise provided in this Section 9, Tenant shall not have the right to assign or pledge this Lease or to sublet the whole or any part of the Premises whether voluntarily or by operation of law, or permit the use or occupancy of the Premises by anyone other than Tenant, and shall not make, suffer or permit such assignment, subleasing or occupancy without the prior written consent of Landlord, such consent not to be unreasonably withheld, conditioned or delayed, and said restrictions shall be binding upon any and all assignees of the Lease and subtenants of the Premises.  In the event Tenant desires to sublet, or permit such occupancy of, the Premises, or any portion thereof, or assign this Lease, Tenant shall give written notice thereof to Landlord at least [*] days prior to the proposed commencement date of such subletting or assignment, which notice shall set forth the name of the proposed subtenant or assignee, the relevant terms of any sublease or assignment and copies of financial reports and other relevant financial information of the proposed subtenant or assignee.

 

9.2          Notwithstanding any assignment or subletting, permitted or otherwise, Tenant shall at all times remain directly, primarily and fully responsible and liable for the payment of the rent specified in this Lease and for compliance with all of its other obligations under the terms, provisions and covenants of this Lease.  Upon the occurrence of an Event of Default, if the Premises or any part of them are then assigned or sublet, Landlord, in addition to any other remedies provided in this Lease or provided by law, may, at its option, collect directly from such assignee or subtenant all rents due and becoming due to Tenant under such assignment or sublease and apply such rent against any sums due to Landlord from Tenant under this Lease, and no such collection shall be construed to constitute a novation or release of Tenant from the further performance of Tenant’s obligations under this Lease.

 

9.3          In the event that Tenant sells, sublets, assigns or transfers this Lease other than as part of an Affiliated Transaction (as defined in Section 9.7 below), Tenant shall pay to Landlord as additional rent an amount equal to [*] of any Increased Rent (as defined below), less the Costs Component (as defined below), when and as such Increased Rent is received by Tenant.  As used in this Section, “Increased Rent” shall mean the excess of (i) all rent and other consideration which Tenant is entitled to receive by reason of any sale, sublease, assignment or other transfer of this Lease, over (ii) the 

 

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rent otherwise payable by Tenant under this Lease at such time.  For purposes of the foregoing, any consideration received by Tenant in form other than cash shall be valued at its fair market value as determined by Landlord in good faith.  The “Costs Component” is that amount which, if paid monthly, would fully amortize on a straight-line basis, over the entire period for which Tenant is to receive Increased Rent, the reasonable costs incurred by Tenant for leasing commissions and tenant improvements in connection with such sublease, assignment or other transfer.

 

9.4          Notwithstanding any other provision hereof, it shall be considered reasonable for Landlord to withhold its consent to any assignment of this Lease or sublease of any portion of the Premises if at the time of either Tenant’s notice of the proposed assignment or sublease or the proposed commencement date thereof, there shall exist any uncured default of Tenant or matter which will become a default of Tenant with passage of time unless cured, or if the proposed assignee or sublessee is an entity:  (a) with which Landlord is already in negotiation; (b) is already an occupant of the Building unless Landlord is unable to provide the amount of space required by such occupant; (c) is a governmental agency; (d) is incompatible with the character of occupancy of the  Building; (e) would subject the Premises to a use which would (i) violate any exclusive right granted to another tenant of the Building; (ii) require any addition to or modification of the Premises or the Building in order to comply with building code or other governmental requirements; or, (iii) involve a violation of Section 1.2.  Tenant expressly agrees that for the purposes of any statutory or other requirement of reasonableness on the part of Landlord, Landlord’s refusal to consent to any assignment or sublease for any of the reasons described in this Section 9.4 (a) through (e) shall be conclusively deemed to be reasonable.

 

9.5          Upon any request to assign or sublet, Tenant will pay to Landlord the Assignment/Subletting Fee plus, on demand, a sum equal to all of Landlord’s reasonable incurred costs, including reasonable attorney’s fees, incurred in investigating and considering any proposed or purported assignment or pledge of this Lease or sublease of any of the Premises, regardless of whether Landlord shall consent to, refuse consent, or determine that Landlord’s consent is not required for, such assignment, pledge or sublease.  Any purported sale, assignment, mortgage, transfer of this Lease or subletting which does not comply with the provisions of this Article 9 shall be void.

 

9.6          Except as expressly provided below in Section 9.7, if Tenant is a corporation, limited liability company, partnership or trust, any transfer or transfers of or change or changes within any twelve (12) month period in the number of the outstanding voting shares of the corporation or limited liability company, the general partnership interests in the partnership or the identity of the persons or entities controlling the activities of such partnership or trust resulting in the persons or entities owning or controlling a majority of such shares, partnership interests or activities of such partnership or trust at the beginning of such period no longer having such ownership or control shall be regarded as equivalent to an assignment of this Lease to the persons or entities acquiring such ownership or control and shall be subject to all the provisions of this Article 9 to the same extent and for all intents and purposes as though such an assignment.

 

9.7          Notwithstanding the terms of Section 9.6 or any other provision of this Section 9, Tenant, without Landlord’s prior written consent thereto (but upon notice to Landlord, and subject to the further terms and conditions hereinafter set forth), shall have the right to assign this Lease or sublease the Premises to a subsidiary or affiliate corporation or subsidiary or affiliate business entity (an “Affiliated Transaction”), provided that:  (i) as to an assignment of this Lease, the successor entity (“Successor”) shall have effectively assumed all of Tenant’s obligations and liabilities, including those under this Lease, by operation of law, or by appropriate instrument of assignment or sublease; (ii) Tenant originally named herein shall remain liable and responsible for the observance and performance of all the terms and conditions of this Lease for the balance of the Term; (iii) Successor shall use the Premises solely for the Uses permitted hereunder; (iv) Successor shall have a net worth which is equal [*]; and (v) a complete and accurate copy of all instruments of assignment/sublease is to be delivered to Landlord not later than thirty (30) days after the effective date thereof.

 

10.          INDEMNIFICATION.  None of the Landlord Entities shall be liable and Tenant hereby waives all claims against them for any damage to any property or any injury to any person in or about the Premises or the Building by or from any cause whatsoever (including without limiting the foregoing, rain or water leakage of any character from the roof, windows, walls, basement, pipes, plumbing works or appliances, the Building not being in good condition or repair, gas, fire, oil, electricity or theft), except to the extent caused by or arising from the gross negligence or willful misconduct of Landlord or its agents, employees or contractors.  Tenant shall protect, indemnify and hold the Landlord Entities harmless from and against any and all loss, claims, liability or costs (including court costs and reasonable attorney’s fees) incurred by reason of (a) any damage to any property or any injury (including but not limited to death) to any person occurring in, on or about the Premises or the Building to the extent that such injury or damage shall be caused by or arise from any actual or alleged act, neglect, fault, or omission by or of Tenant or any Tenant Entity to meet any standards imposed by any duty with respect to the injury or damage; (b) the conduct or management of any work or thing whatsoever done by the Tenant in or about the Premises or from transactions of the Tenant concerning the Premises; (c) Tenant’s failure to comply with any and all governmental laws, ordinances and regulations applicable to the condition or use of the Premises or its occupancy; or (d) any 

 

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breach or default on the part of Tenant in the performance of any covenant or agreement on the part of the Tenant to be performed pursuant to this Lease.  The provisions of this Article shall survive the termination of this Lease with respect to any claims or liability accruing prior to such termination.

 

Landlord shall protect, indemnify and hold Tenant and the Tenant Entities harmless from and against any and all loss, claims, liability or costs (including court costs and reasonable attorney’s fees) incurred by reason of any damage to any property or any injury (including, but not limited to, death) to any person occurring in, on or about the Premises or Building to the extent that such injury or damage shall be caused by or arise from Landlord’s gross negligence or willful misconduct.  The provisions of this Article shall survive the termination of this Lease with respect to any claims or liability accruing prior to such termination.

 

11.          INSURANCE.

 

11.1        Tenant shall keep in force throughout the Term: (a) a Commercial General Liability insurance policy or policies to protect the Landlord Entities against any liability to the public or to any invitee of Tenant or a Landlord Entity incidental to the use of or resulting from any accident occurring in or upon the Premises with a limit of not less than $1,000,000 per occurrence and not less than $2,000,000 in the annual aggregate, or such larger amount as Landlord may prudently require from time to time, covering bodily injury and property damage liability and $1,000,000 products/completed operations aggregate; (b) Business Auto Liability covering owned, non-owned and hired vehicles with a limit of not less than $1,000,000 per accident; (c) Worker’s Compensation Laws with limits as required by statute and Employers Liability with limits of $500,000 each accident, $500,000 disease policy limit, $500,000 disease—each employee; (d) All Risk or Special Form coverage protecting Tenant against loss of or damage to Tenant’s alterations, additions, improvements, carpeting, floor coverings, panelings, decorations, fixtures, inventory and other business personal property situated in or about the Premises to the full replacement value of the property so insured; and, (e) Business Interruption Insurance with limit of liability representing loss of at least approximately six (6) months of income.

 

11.2        The aforesaid policies shall (a) be provided at Tenant’s expense; (b) name the Landlord Entities as additional insureds (General Liability) and loss payee (Property—Special Form); (c) be issued by an insurance company with a minimum Best’s rating of “A-:VII” during the Term; and (d) provide that said insurance shall not be canceled unless thirty (30) days prior written notice (ten days for non-payment of premium) shall have been given to Landlord; a certificate of Liability insurance on ACORD Form 25 and a certificate of Property insurance on ACORD Form 27 shall be delivered to Landlord by Tenant upon the Commencement Date and at least thirty (30) days prior to each renewal of said insurance.

 

11.3        Whenever Tenant shall undertake any alterations, additions or improvements in, to or about the Premises (“Work”) the aforesaid insurance protection must extend to and include injuries to persons and damage to property arising in connection with such Work, without limitation including liability under any applicable structural work act, and such other insurance as Landlord shall require; and the policies of or certificates evidencing such insurance must be delivered to Landlord prior to the commencement of any such Work.

 

12.          WAIVER OF SUBROGATION.  [*] Tenant and Landlord hereby mutually waive their respective rights of recovery against each other for any loss insured by fire, extended coverage, All Risks or other insurance now or hereafter existing for the benefit of the respective party but only to the extent of the net insurance proceeds payable under such policies.  Each party shall obtain any special endorsements required by their insurer to evidence compliance with the aforementioned waiver.

 

13.          SERVICES AND UTILITIES.  Tenant shall pay for all water, gas, heat, light, power, telephone, sewer, sprinkler system charges and other utilities and services used on or from the Premises, together with any taxes, penalties, and surcharges or the like pertaining thereto and any maintenance charges for utilities.  Tenant shall furnish all electric light bulbs, tubes and ballasts, battery packs for emergency lighting and fire extinguishers.  If any such services are not separately metered to Tenant, Tenant shall pay such proportion of all charges jointly metered with other premises as determined by Landlord to be reasonable.  Any such charges paid by Landlord and assessed against Tenant shall be immediately payable to Landlord on demand and shall be additional rent hereunder.  Tenant will not, without the written consent of Landlord, contract with a utility provider to service the Premises with any utility, including, but not limited to, telecommunications, electricity, water, sewer or gas, which is not previously providing such service to other tenants in the Building.  Landlord shall in no event be liable for any interruption or failure of utility services on or to the Premises.

 

14.          HOLDING OVER.  Tenant shall pay Landlord for each day Tenant retains possession of the Premises or part of them after termination of this Lease by lapse of time or otherwise at the rate (“Holdover Rate”) which shall be the Applicable Percentage (defined below) of the amount of the Annual Rent for the last period prior to the date of such termination plus all

 

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Rent Adjustments under Article 4, prorated on a daily basis, and also pay all damages sustained by Landlord by reason of such retention.  If Landlord gives notice to Tenant of Landlord’s election to such effect, such holding over shall constitute renewal of this Lease for a period from month to month at the Holdover Rate, but if the Landlord does not so elect, no such renewal shall result notwithstanding acceptance by Landlord of any sums due hereunder after such termination; and instead, a tenancy at sufferance at the Holdover Rate shall be deemed to have been created.  In any event, no provision of this Article 14 shall be deemed to waive Landlord’s right of reentry or any other right under this Lease or at law.

 

The “Applicable Percentage” shall be [*].

 

15.          SUBORDINATION.  Without the necessity of any additional document being executed by Tenant for the purpose of effecting a subordination, this Lease shall be subject and subordinate at all times to ground or underlying leases and to the lien of any mortgages or deeds of trust now or hereafter placed on, against or affecting the Building, Landlord’s interest or estate in the Building, or any ground or underlying lease; provided, however, that if the lessor, mortgagee, trustee, or holder of any such mortgage or deed of trust elects to have Tenant’s interest in this Lease be superior to any such instrument, then, by notice to Tenant, this Lease shall be deemed superior, whether this Lease was executed before or after said instrument.  Notwithstanding the foregoing, Tenant covenants and agrees to execute and deliver within ten (10) days of Landlord’s request such further instruments evidencing such subordination or superiority of this Lease as may be required by Landlord [*].

 

Upon Landlord’s receipt of Tenant’s written request, Landlord shall use commercially reasonable efforts to obtain a customary subordination, attornment and non-disturbance agreement, that recognizes this Lease (“SNDA”) from the holder of any mortgage or deed of trust encumbering the Building, provided that (a) Tenant shall pay all fees, charges and legal fees of the lender [*] in connection with the SNDA, and (b) Landlord shall not be liable to Tenant in any manner for its failure to obtain such SNDA.

 

Landlord hereby represents and warrants to Tenant that, as of the Lease Reference Date, the Premises are not subject to any ground lease or mortgage.

 

The subordination and attornment provisions set forth above in this Section 15 are subject, however, to the express condition that so long as Tenant is not in default in its obligations hereunder beyond applicable grace periods, (i) Tenant will not be made a party in any action or proceeding by any Lender (as defined below) or senior party in interest to recover possession of the Building and/or the Premises or to the foreclosure of any mortgage, (ii) Tenant’s possession of the Premises shall not be disturbed, and (iii) this Lease shall not be cancelled or terminated and shall continue in full force and effect upon any foreclosure under a Mortgage or recovery of possession (a “Foreclosure”) upon all of the terms and conditions set forth in this Lease, provided that following a Foreclosure, Lender shall not be (A) liable for any act or omission of Landlord, except for defaults relating to the physical condition of the Premises that are of an ongoing or continuing nature of which Lender has received written notice and has failed to cure within the applicable cure period, (B) liable to refund to Tenant any security deposit which Tenant shall have paid to Landlord, unless such security deposit has been delivered to Lender; or (C) bound by any rent or additional rent which Tenant might have paid for more than the current month to Landlord; or (D) bound by any amendment or modification of the Lease made without Lender’s prior written consent; or (E) subject to any rent offsets or other offsets or defenses which Tenant might have against the Landlord; or (F) liable for consequential damages.  The term “mortgage” whenever used in this Lease shall be deemed to include deeds of trust, security assignments and any other encumbrances, and any reference to the “holder” of a mortgage or a “Lender” shall be deemed to mean and include the beneficiary under a mortgage or deed of trust and any successor owner of the Building pursuant to a Foreclosure.

 

16.          RULES AND REGULATIONS.  Tenant shall faithfully observe and comply with all the rules and regulations as set forth in Exhibit D to this Lease and all reasonable and non-discriminatory modifications of and additions to them from time to time put into effect by Landlord.  Landlord shall not be responsible to Tenant for the non-performance by any other tenant or occupant of the Building of any such rules and regulations, but shall enforce the rules and regulations in a non-discriminatory manner. Tenant may, to the extent permitted under Maryland law, enforce the rules and regulations against other tenants and occupants of the Building following consultation with Landlord and attempts to reach a reasonable resolution with such other tenant or occupant.

 

17.          REENTRY BY LANDLORD.

 

17.1        Landlord reserves and shall at all times have the right, upon 24 hours’ notice and with an escort of Tenant (except in the case of an emergency, in which event no such prior notice or escort shall be required) to re-enter the Premises to inspect the same, to show said Premises to prospective purchasers, mortgagees or, within the last 6 months of the Term, tenants, and with advance notice and coordination of Tenant to alter, improve or repair the Premises and any portion of the 

 

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Building, without abatement of rent, and may for that purpose erect, use and maintain scaffolding, pipes, conduits and other necessary structures and open any wall, ceiling or floor in and through the Building and Premises where reasonably required by the character of the work to be performed, provided entrance to the Premises shall not be blocked thereby, and further provided that the business of Tenant shall not be interfered with or interrupted unreasonably.  Landlord shall follow all reasonable instructions and guidelines of Tenant in connection with any such re-entry, including without limitation, Tenant’s guidelines and rules with respect to accessing cleanrooms, laboratory space, manufacturing space and other similar areas.  Landlord shall have the right at any time to change the arrangement and/or locations of entrances, or passageways, doors and doorways, and corridors, windows, elevators, stairs, toilets or other public parts of the Building and to change the name, number or designation by which the Building is commonly known.  In the event that Landlord damages any portion of any wall or wall covering, ceiling, or floor or floor covering within the Premises, Landlord shall repair or replace the damaged portion to match the original as nearly as commercially reasonable but shall not be required to repair or replace more than the portion actually damaged. Tenant hereby waives any claim for damages for any inconvenience to or interference with Tenant’s business, any loss of occupancy or quiet enjoyment of the Premises, and any other loss occasioned by any action of Landlord authorized by this Article 17.

 

17.2        For each of the aforesaid purposes, Landlord shall at all times have and retain a key with which to unlock all of the doors in the Premises, excluding Tenant’s vaults and safes or special security areas (designated in advance), and Landlord shall have the right to use any and all means which Landlord may deem proper to open said doors in an emergency to obtain entry to any portion of the Premises.  As to any portion to which access cannot be had by means of a key or keys in Landlord’s possession, Landlord is authorized in the event of an emergency to gain access by such means as Landlord shall elect and the cost of repairing any damage occurring in doing so shall be borne by Tenant and paid to Landlord within five (5) days of Landlord’s demand.

 

18.          DEFAULT.

 

18.1        Except as otherwise provided in Article 20, the following events shall be deemed to be Events of Default under this Lease:

 

18.1.1     Tenant shall fail to pay when due any sum of money becoming due to be paid to Landlord under this Lease, whether such sum be any installment of the rent reserved by this Lease, any other amount treated as additional rent under this Lease, or any other payment or reimbursement to Landlord required by this Lease, whether or not treated as additional rent under this Lease, and such failure shall continue for a period of five (5) business days after written notice that such payment was not made when due.

 

18.1.2     Tenant shall fail to comply with any term, provision or covenant of this Lease which is not provided for in another Section of this Article and shall not cure such failure within [*] days (forthwith, if the failure involves a hazardous condition) after written notice of such failure to Tenant provided, however, that such failure shall not be an event of default if such failure could not reasonably be cured during such [*] period, Tenant has commenced the cure within such [*] period and thereafter is diligently pursuing such cure to completion, but the total aggregate cure period shall not exceed ninety (90) days.

 

18.1.3     Unless agreed to by Landlord, Tenant shall fail to vacate the Premises immediately upon termination of this Lease, by lapse of time or otherwise, or upon termination of Tenant’s right to possession only.

 

18.1.4     Tenant shall become insolvent, admit in writing its inability to pay its debts generally as they become due, file a petition in bankruptcy or a petition to take advantage of any insolvency statute, make an assignment for the benefit of creditors, make a transfer in fraud of creditors, apply for or consent to the appointment of a receiver of itself or of the whole or any substantial part of its property, or file a petition or answer seeking reorganization or arrangement under the federal bankruptcy laws, as now in effect or hereafter amended, or any other applicable law or statute of the United States or any state thereof.

 

18.1.5     A court of competent jurisdiction shall enter an order, judgment or decree adjudicating Tenant bankrupt, or appointing a receiver of Tenant, or of the whole or any substantial part of its property, without the consent of Tenant, or approving a petition filed against Tenant seeking reorganization or arrangement of Tenant under the bankruptcy laws of the United States, as now in effect or hereafter amended, or any state thereof, and such order, judgment or decree shall not be vacated or set aside or stayed within sixty (60) days from the date of entry thereof.

 

18.1.6.      If prior to the Commencement Date, Tenant defaults under its sublease or other occupancy agreement pursuant to which Tenant occupies the Premises (the “Sublease”), and such default continues past all applicable 

 

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notice or grace periods, or if Tenant’s occupancy of the Premises is terminated under such Sublease, or Tenant abandons the Premises.

 

19.          REMEDIES.

 

19.1        Except as otherwise provided in Article 20, upon the occurrence of any of the Events of Default described or referred to in Article 18, Landlord shall have the option to pursue any one or more of the following remedies without any notice or demand whatsoever, concurrently or consecutively and not alternatively:

 

19.1.1     Landlord may, at its election, terminate this Lease or terminate Tenant’s right to possession only, without terminating the Lease.

 

19.1.2     Upon any termination of this Lease, whether by lapse of time or otherwise, or upon any termination of Tenant’s right to possession without termination of the Lease, Tenant shall surrender possession and vacate the Premises immediately, and deliver possession thereof to Landlord, and Tenant hereby grants to Landlord full and free license to enter into and upon the Premises in such event and to repossess Landlord of the Premises as of Landlord’s former estate and to expel or remove Tenant and any others who may be occupying or be within the Premises and to remove Tenant’s signs and other evidence of tenancy and all other property of Tenant therefrom without being deemed in any manner guilty of trespass, eviction or forcible entry or detainer, and without incurring any liability for any damage resulting therefrom, Tenant waiving any right to claim damages for such re-entry and expulsion, and without relinquishing Landlord’s right to rent or any other right given to Landlord under this Lease or by operation of law.

 

19.1.3     Upon any termination of this Lease, whether by lapse of time or otherwise, Landlord shall be entitled to recover as damages, all rent, including any amounts treated as additional rent under this Lease, and other sums due and payable by Tenant on the date of termination, plus as liquidated damages and not as a penalty, an amount equal to the sum of:  (a) an amount equal to the then present value of the rent reserved in this Lease for the residue of the stated Term of this Lease including any amounts treated as additional rent under this Lease and all other sums provided in this Lease to be paid by Tenant, minus the fair rental value of the Premises for such residue; (b) the value of the time and expense necessary to obtain a replacement tenant or tenants, and the estimated expenses described in Section 19.1.4 relating to recovery of the Premises, preparation for reletting and for reletting itself; and (c) the cost of performing any other covenants which would have otherwise been performed by Tenant.

 

19.1.4     Upon any termination of Tenant’s right to possession only without termination of the Lease:

 

19.1.4.1 Neither such termination of Tenant’s right to possession nor Landlord’s taking and holding possession thereof as provided in Section 19.1.2 shall terminate the Lease or release Tenant, in whole or in part, from any obligation, including Tenant’s obligation to pay the rent, including any amounts treated as additional rent, under this Lease for the full Term, and if Landlord so elects Tenant shall continue to pay to Landlord the entire amount of the rent as and when it becomes due, including any amounts treated as additional rent under this Lease, for the remainder of the Term plus any other sums provided in this Lease to be paid by Tenant for the remainder of the Term.

 

19.1.4.2 Landlord shall use commercially reasonable efforts to relet the Premises or portions thereof to the extent required by applicable law.  Landlord and Tenant agree that nevertheless Landlord shall at most be required to use only the same efforts Landlord then uses to lease premises in the Building generally and that in any case that Landlord shall not be required to give any preference or priority to the showing or leasing of the Premises or portions thereof over any other space that Landlord may be leasing or have available and may place a suitable prospective tenant in any such other space regardless of when such other space becomes available and that Landlord shall have the right to relet the Premises for a greater or lesser term than that remaining under this Lease, the right to relet only a portion of the Premises, or a portion of the Premises or the entire Premises as a part of a larger area, and the right to change the character or use of the Premises.  In connection with or in preparation for any reletting, Landlord may, but shall not be required to, make repairs, alterations and additions in or to the Premises and redecorate the same to the extent Landlord reasonably deems necessary or desirable, and Tenant shall pay the cost thereof, together with Landlord’s reasonable expenses of reletting, including, without limitation, any commission incurred by Landlord, within five (5) days of Landlord’s demand.  Landlord shall not be required to observe any instruction given by Tenant about any reletting or accept any tenant offered by Tenant unless such offered tenant has a credit-worthiness acceptable to Landlord and leases the entire Premises upon terms and conditions including a rate of rent (after giving effect to all expenditures by Landlord for tenant improvements, broker’s commissions and other leasing costs) all no less favorable to Landlord than as called for in this Lease, nor shall Landlord be required to make or permit any assignment or sublease for more than the current term or which Landlord would not be required to permit under the provisions of Article 9.

 

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19.1.4.3 Until such time as Landlord shall elect to terminate the Lease and shall thereupon be entitled to recover the amounts specified in such case in Section 19.1.3, Tenant shall pay to Landlord upon demand the full amount of all rent, including any amounts treated as additional rent under this Lease and other sums reserved in this Lease for the remaining Term, together with the costs of repairs, alterations, additions, redecorating and Landlord’s expenses of reletting and the collection of the rent accruing therefrom (including reasonable attorney’s fees and broker’s commissions), as the same shall then be due or become due from time to time, less only such consideration as Landlord may have received from any reletting of the Premises; and Tenant agrees that Landlord may file suits from time to time to recover any sums falling due under this Article 19 as they become due.  Any proceeds of reletting by Landlord in excess of the amount then owed by Tenant to Landlord from time to time shall be credited against Tenant’s future obligations under this Lease but shall not otherwise be refunded to Tenant or inure to Tenant’s benefit.

 

19.2        Upon the occurrence of an Event of Default, Landlord may (but shall not be obligated to) cure such default at Tenant’s sole expense.  Without limiting the generality of the foregoing, Landlord may, at Landlord’s option, enter into and upon the Premises if Landlord determines in its reasonable discretion that Tenant is not acting within a commercially reasonable time to maintain, repair or replace anything for which Tenant is responsible under this Lease or to otherwise effect compliance with its obligations under this Lease and correct the same, without being deemed in any manner guilty of trespass, eviction or forcible entry and detainer and without incurring any liability for any damage or interruption of Tenant’s business resulting therefrom and Tenant agrees to reimburse Landlord within five (5) days of Landlord’s demand as additional rent, for any reasonable expenses which Landlord may incur in thus effecting compliance with Tenant’s obligations under this Lease, plus interest from the date of expenditure by Landlord at the Wall Street Journal prime rate.

 

19.3        Tenant understands and agrees that in entering into this Lease, Landlord is relying upon receipt of all the Annual and Monthly Installments of Rent to become due with respect to all the Premises originally leased hereunder over the full Initial Term of this Lease for amortization, including interest at the Amortization Rate.  For purposes hereof, the “Concession Amount” shall be defined as the aggregate of all amounts forgone or expended by Landlord as free rent under the Lease, under Exhibit B hereof for construction allowances, including the “Landlord’s Allowance” (excluding therefrom any amounts expended by Landlord for Landlord’s Work, as defined in Exhibit B), and for brokers’ commissions payable by reason of this Lease.  Accordingly, Tenant agrees that if this Lease or Tenant’s right to possession of the Premises leased hereunder shall be terminated as of any date (“Default Termination Date”) prior to the expiration of the full Initial Term hereof by reason of a default of Tenant, there shall be due and owing to Landlord as of the day prior to the Default Termination Date, as rent in addition to all other amounts owed by Tenant as of such Date, the amount (“Unamortized Amount”) of the Concession Amount determined as set forth below; provided, however, that in the event that such amounts are recovered by Landlord pursuant to any other provision of this Article 19, Landlord agrees that it shall not attempt to recover such amounts pursuant to this Paragraph 19.3.  For the purposes hereof, the Unamortized Amount shall be determined in the same manner as the remaining principal balance of a mortgage with interest at the Amortization Rate payable in level payments over the same length of time as from the effectuation of the Concession concerned to the end of the full Initial Term of this Lease would be determined.  The foregoing provisions shall also apply to and upon any reduction of space in the Premises, as though such reduction were a termination for Tenant’s default, except that (i) the Unamortized Amount shall be reduced by any amounts paid by Tenant to Landlord to effectuate such reduction and (ii) the manner of application shall be that the Unamortized Amount shall first be determined as though for a full termination as of the Effective Date of the elimination of the portion, but then the amount so determined shall be multiplied by the fraction of which the numerator is the rentable square footage of the eliminated portion and the denominator is the rentable square footage of the Premises originally leased hereunder; and the amount thus obtained shall be the Unamortized Amount.

 

19.4        If, on account of any breach or default by Tenant in Tenant’s obligations under the terms and conditions of this Lease, it shall become necessary or appropriate for Landlord to employ or consult with an attorney or collection agency concerning or to enforce or defend any of Landlord’s rights or remedies arising under this Lease or to collect any sums due from Tenant, Tenant agrees to pay all costs and fees so incurred by Landlord, including, without limitation, reasonable attorneys’ fees and costs.  TENANT EXPRESSLY WAIVES ANY RIGHT TO TRIAL BY JURY.

 

19.5        Pursuit of any of the foregoing remedies shall not preclude pursuit of any of the other remedies provided in this Lease or any other remedies provided by law (all such remedies being cumulative), nor shall pursuit of any remedy provided in this Lease constitute a forfeiture or waiver of any rent due to Landlord under this Lease or of any damages accruing to Landlord by reason of the violation of any of the terms, provisions and covenants contained in this Lease.

 

19.6        No act or thing done by Landlord or its agents during the Term shall be deemed a termination of this Lease or an acceptance of the surrender of the Premises, and no agreement to terminate this Lease or accept a surrender of said Premises shall be valid, unless in writing signed by Landlord.  No waiver by Landlord of any violation or breach of any of the terms, provisions and covenants contained in this Lease shall be deemed or construed to constitute a waiver of any other

 

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violation or breach of any of the terms, provisions and covenants contained in this Lease.  Landlord’s acceptance of the payment of rental or other payments after the occurrence of an Event of Default shall not be construed as a waiver of such Default, unless Landlord so notifies Tenant in writing.  Forbearance by Landlord in enforcing one or more of the remedies provided in this Lease upon an Event of Default shall not be deemed or construed to constitute a waiver of such Default or of Landlord’s right to enforce any such remedies with respect to such Default or any subsequent Default.

 

19.7        To secure the payment of all rentals and other sums of money becoming due from Tenant under this Lease, Landlord shall have and Tenant grants to Landlord a first lien upon the leasehold interest of Tenant under this Lease, which lien may be enforced in equity, and a continuing security interest upon all goods, wares, equipment, fixtures, furniture, inventory, accounts, contract rights, chattel paper and other personal property of Tenant situated on the Premises, and such property shall not be removed therefrom without the consent of Landlord until all arrearages in rent as well as any and all other sums of money then due to Landlord under this Lease shall first have been paid and discharged.  Upon the occurrence of an Event of Default, Landlord shall have, in addition to any other remedies provided in this Lease or by law, all rights and remedies under the Uniform Commercial Code, including without limitation the right to sell the property described in this Section 19.7 at public or private sale upon five (5) days’ notice to Tenant.  Tenant shall execute all such financing statements and other instruments as shall be deemed necessary or desirable in Landlord’s discretion to perfect the security interest hereby created.

 

19.8        Any and all property which may be removed from the Premises by Landlord pursuant to the authority of this Lease or of law, to which Tenant is or may be entitled, may be handled, removed and/or stored, as the case may be, by or at the direction of Landlord but at the risk, cost and expense of Tenant, and Landlord shall in no event be responsible for the value, preservation or safekeeping thereof.  Tenant shall pay to Landlord, upon demand, any and all expenses incurred in such removal and all storage charges against such property so long as the same shall be in Landlord’s possession or under Landlord’s control.  Any such property of Tenant not retaken by Tenant from storage within thirty (30) days after removal from the Premises shall, at Landlord’s option, be deemed conveyed by Tenant to Landlord under this Lease as by a bill of sale without further payment or credit by Landlord to Tenant.

 

19.9        If more than one (1) Event of Default occurs during the Term or any renewal thereof, Tenant’s renewal options, expansion options, purchase options and rights of first offer and/or refusal, if any are provided for in this Lease, shall be null and void.

 

20.          TENANT’S BANKRUPTCY OR INSOLVENCY.

 

20.1        If at any time and for so long as Tenant shall be subjected to the provisions of the United States Bankruptcy Code or other law of the United States or any state thereof for the protection of debtors as in effect at such time (each a “Debtor’s Law”):

 

20.1.1     Tenant, Tenant as debtor-in-possession, and any trustee or receiver of Tenant’s assets (each a “Tenant’s Representative”) shall have no greater right to assume or assign this Lease or any interest in this Lease, or to sublease any of the Premises than accorded to Tenant in Article 9, except to the extent Landlord shall be required to permit such assumption, assignment or sublease by the provisions of such Debtor’s Law.  Without limitation of the generality of the foregoing, any right of any Tenant’s Representative to assume or assign this Lease or to sublease any of the Premises shall be subject to the conditions that:

 

20.1.1.1 Such Debtor’s Law shall provide to Tenant’s Representative a right of assumption of this Lease which Tenant’s Representative shall have timely exercised and Tenant’s Representative shall have fully cured any default of Tenant under this Lease.

 

20.1.1.2 Tenant’s Representative or the proposed assignee, as the case shall be, shall have deposited with Landlord as security for the timely payment of rent an amount equal to the larger of: (a) three (3) months’ rent and other monetary charges accruing under this Lease; and (b) any sum specified in Article 5; and shall have provided Landlord with adequate other assurance of the future performance of the obligations of the Tenant under this Lease.  Without limitation, such assurances shall include, at least, in the case of assumption of this Lease, demonstration to the satisfaction of the Landlord that Tenant’s Representative has and will continue to have sufficient unencumbered assets after the payment of all secured obligations and administrative expenses to assure Landlord that Tenant’s Representative will have sufficient funds to fulfill the obligations of Tenant under this Lease; and, in the case of assignment, submission of current financial statements of the proposed assignee, audited by an independent certified public accountant reasonably acceptable to Landlord and showing a net worth and working capital in amounts determined by Landlord to be sufficient to assure the future performance by such assignee of all of the Tenant’s obligations under this Lease.

 

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20.1.1.3 The assumption or any contemplated assignment of this Lease or subleasing any part of the Premises, as shall be the case, will not breach any provision in any other lease, mortgage, financing agreement or other agreement by which Landlord is bound.

 

20.1.1.4 Landlord shall have, or would have had absent the Debtor’s Law, no right under Article 9 to refuse consent to the proposed assignment or sublease by reason of the identity or nature of the proposed assignee or sublessee or the proposed use of the Premises concerned.

 

21.          QUIET ENJOYMENT.  Landlord represents and warrants that it has full right and authority to enter into this Lease and that Tenant, while paying the rental and performing its other covenants and agreements contained in this Lease, shall peaceably and quietly have, hold and enjoy the Premises for the Term without hindrance or molestation from Landlord subject to the terms and provisions of this Lease.  Landlord shall not be liable for any interference or disturbance by other tenants or third persons, nor shall Tenant be released from any of the obligations of this Lease because of such interference or disturbance.

 

22.          CASUALTY

 

22.1        In the event the Premises or the Building are damaged by fire or other cause and in Landlord’s reasonable estimation such damage can be materially restored within one hundred eighty (180) days, Landlord shall forthwith repair the same and this Lease shall remain in full force and effect, except that Tenant shall be entitled to a proportionate abatement in rent from the date of such damage.  Such abatement of rent shall be made pro rata in accordance with the extent to which the damage and the making of such repairs shall interfere with the use and occupancy by Tenant of the Premises from time to time.  Within forty-five (45) days from the date of such damage, Landlord shall notify Tenant, in writing, of Landlord’s reasonable estimation of the length of time within which material restoration can be made, and Landlord’s determination shall be binding on Tenant.  For purposes of this Lease, the Building or Premises shall be deemed “materially restored” if they are in such condition as would not prevent or materially interfere with Tenant’s use of the Premises for the purpose for which it was being used immediately before such damage.

 

22.2        If such repairs cannot, in Landlord’s reasonable estimation, be made within one hundred eighty (180) days, Landlord and Tenant shall each have the option of giving the other, at any time within [*] days after such damage, notice terminating this Lease as of the date of such damage.  In the event of the giving of such notice, this Lease shall expire and all interest of the Tenant in the Premises shall terminate as of the date of such damage as if such date had been originally fixed in this Lease for the expiration of the Term.  In the event that neither Landlord nor Tenant exercises its option to terminate this Lease, then Landlord shall repair or restore such damage, this Lease continuing in full force and effect, and the rent hereunder shall be proportionately abated as provided in Section 22.1.

 

22.3        Landlord shall not be required to repair or replace any damage or loss by or from fire or other cause to any panelings, decorations, partitions, additions, railings, ceilings, floor coverings, office fixtures or any other property or improvements installed on the Premises by, or belonging to, Tenant.  Any insurance which may be carried by Landlord or Tenant against loss or damage to the Building or Premises shall be for the sole benefit of the party carrying such insurance and under its sole control.

 

22.4        In the event that Landlord should fail to complete such repairs and material restoration within sixty (60) days after the date estimated by Landlord therefor as extended by this Section 22.4, Tenant may at its option and as its sole remedy terminate this Lease by delivering written notice to Landlord, within fifteen (15) days after the expiration of said period of time, whereupon the Lease shall end on the date of such notice or such later date fixed in such notice as if the date of such notice was the date originally fixed in this Lease for the expiration of the Term; provided, however, that if construction is delayed because of changes, deletions or additions in construction requested by Tenant, Acts of God, war, or other natural causes beyond the reasonable control of Landlord, the period for restoration, repair or rebuilding shall be extended for the amount of time Landlord is so delayed.

 

22.5        Notwithstanding anything to the contrary contained in this Article:  (a) Landlord shall not have any obligation whatsoever to repair, reconstruct, or restore the Premises when the damages resulting from any casualty covered by the provisions of this Article 22 occur during the last twelve (12) months of the Term or any extension thereof, but if Landlord determines not to repair such damages Landlord shall notify Tenant and if such damages shall render any material portion of the Premises untenantable Tenant shall have the right to terminate this Lease by notice to Landlord within fifteen (15) days after receipt of Landlord’s notice; and (b) in the event the holder of any indebtedness secured by a mortgage or deed of trust covering the Premises or Building requires that any insurance proceeds be applied to such indebtedness, then Landlord shall have the right to terminate this Lease by delivering written notice of termination to Tenant within fifteen (15) 

 

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days after such requirement is made by any such holder, whereupon this Lease shall end on the date of such damage as if the date of such damage were the date originally fixed in this Lease for the expiration of the Term.

 

22.6        In the event of any damage or destruction to the Building or Premises by any peril covered by the provisions of this Article 22, it shall be Tenant’s responsibility to properly secure the Premises and upon notice from Landlord to remove forthwith, at its sole cost and expense, such portion of all of the property belonging to Tenant or its licensees from such portion or all of the Building or Premises as Landlord shall request.

 

23.          EMINENT DOMAIN.  If all or any substantial part of the Premises shall be taken or appropriated by any public or quasi-public authority under the power of eminent domain, or conveyance in lieu of such appropriation, either party to this Lease shall have the right, at its option, of giving the other, at any time within thirty (30) days after such taking, notice terminating this Lease, except that Tenant may only terminate this Lease by reason of taking or appropriation, if such taking or appropriation shall be so substantial as to materially interfere with Tenant’s use and occupancy of the Premises.  If neither party to this Lease shall so elect to terminate this Lease, the rental thereafter to be paid shall be adjusted on a fair and equitable basis under the circumstances.  In addition to the rights of Landlord above, if any substantial part of the Building shall be taken or appropriated by any public or quasi-public authority under the power of eminent domain or conveyance in lieu thereof, and regardless of whether the Premises or any part thereof are so taken or appropriated, Landlord shall have the right, at its sole option, to terminate this Lease.  Landlord shall be entitled to any and all income, rent, award, or any interest whatsoever in or upon any such sum, which may be paid or made in connection with any such public or quasi-public use or purpose, and Tenant hereby assigns to Landlord any interest it may have in or claim to all or any part of such sums, other than any separate award which may be made with respect to Tenant’s trade fixtures and moving expenses; Tenant shall make no claim for the value of any unexpired Term.

 

24.          SALE BY LANDLORD.  In event of a sale or conveyance by Landlord of the Building, the same shall operate to release Landlord from any future liability upon any of the covenants or conditions, expressed or implied, contained in this Lease in favor of Tenant, and in such event Tenant agrees to look solely to the responsibility of the successor in interest of Landlord in and to this Lease.  Except as set forth in this Article 24, this Lease shall not be affected by any such sale and Tenant agrees to attorn to the purchaser or assignee.  If any Security Deposit has been given by Tenant to secure the faithful performance of any of the covenants of this Lease, and Landlord transfers said Security Deposit to the purchaser of the Building, then in such case, Landlord shall be discharged from any further liability with regard to said Security Deposit.

 

25.          ESTOPPEL CERTIFICATES.  Within ten (10) business days following any written request which Landlord may make from time to time, Tenant shall execute and deliver to Landlord or mortgagee or prospective mortgagee a sworn statement certifying:  (a) the date of commencement of this Lease; (b) the fact that this Lease is unmodified and in full force and effect (or, if there have been modifications to this Lease, that this lease is in full force and effect, as modified, and stating the date and nature of such modifications); (c) the date to which the rent and other sums payable under this Lease have been paid; (d) the fact that there are no current defaults under this Lease by either Landlord or Tenant except as specified in Tenant’s statement; and (e) such other matters as may be reasonably requested by Landlord and that are accurate and truthful.  Landlord and Tenant intend that any statement delivered pursuant to this Article 25 may be relied upon by any mortgagee, beneficiary or purchaser, and Tenant shall be liable for all loss, cost or expense resulting from the failure of any sale or funding of any loan caused by any material misstatement contained in such estoppel certificate.  Tenant irrevocably agrees that if Tenant fails to execute and deliver such sworn statement within such ten (10) business day period Landlord or Landlord’s beneficiary or agent may execute and deliver such sworn statement on Tenant’s behalf, and that such certificate shall be fully binding on Tenant.

 

26.          SURRENDER OF PREMISES.

 

26.1        Tenant agrees to arrange to meet Landlord for two (2) joint inspections of the Premises, the first to occur at least thirty (30) days (but no more than sixty (60) days) before the last day of the Term, and the second to occur not later than forty-eight (48) hours after Tenant has vacated the Premises.  In the event of Tenant’s failure to participate in either such inspection, Landlord’s inspection at or after Tenant’s vacating the Premises shall be conclusively deemed correct for purposes of determining Tenant’s responsibility for repairs and restoration.

 

26.2        All alterations, additions, and improvements in, on, or to the Premises made or installed by or for Tenant, including, without limitation, carpeting (collectively, “Alterations”), shall be and remain the property of Tenant during the Term.  Upon the expiration or sooner termination of the Term, all Alterations shall become a part of the realty and shall belong to Landlord without compensation, and title shall pass to Landlord under this Lease as by a bill of sale.  At the end of the Term or any renewal of the Term or other sooner termination of this Lease, Tenant will peaceably deliver up to Landlord possession of the Premises, together with all Alterations by whomsoever made, in the same conditions received or first

 

16

 

installed, broom clean and free of all debris, excepting only ordinary wear and tear and damage by fire or other casualty.  Notwithstanding the foregoing, if Landlord elects by notice given to Tenant at least ten (10) days prior to expiration of the Term, Tenant shall, at Tenant’s sole cost, remove any Alterations made after the Lease Reference Date, [*] as defined below, so designated by Landlord’s notice, including all laboratory space build-out and Alterations, and repair any damage caused by such removal.  Tenant must, at Tenant’s sole cost, remove upon termination of this Lease, any and all of Tenant’s furniture, furnishings, equipment, movable partitions of less than full height from floor to ceiling and other trade fixtures and personal property, as well as all data/telecommunications cabling and wiring installed by or on behalf of Tenant, whether inside walls, under any raised floor or above any ceiling (collectively, “Personalty”).  Personalty not so removed shall be deemed abandoned by the Tenant and title to the same shall thereupon pass to Landlord under this Lease as by a bill of sale, but Tenant shall remain responsible for the cost of removal and disposal of such Personalty, as well as any damage caused by such removal.

 

[*]

 

26.3        All obligations of Tenant under this Lease not fully performed as of the expiration or earlier termination of the Term shall survive the expiration or earlier termination of the Term.  Upon the expiration or earlier termination of the Term, Tenant shall pay to Landlord the amount, as estimated by Landlord, necessary to repair and restore the Premises as provided in this Lease and/or to discharge Tenant’s obligation for unpaid amounts due or to become due to Landlord.  All such amounts shall be used and held by Landlord for payment of such obligations of Tenant, with Tenant being liable for any additional costs upon demand by Landlord, or with any excess to be returned to Tenant after all such obligations have been determined and satisfied.  Any otherwise unused Security Deposit shall be credited against the amount payable by Tenant under this Lease.

 

27.          NOTICES.  Any notice or document required or permitted to be delivered under this Lease shall be addressed to the intended recipient, by fully prepaid registered or certified United States Mail return receipt requested, or by reputable independent contract delivery service furnishing a written record of attempted or actual delivery, and shall be deemed to be delivered when tendered for delivery to the addressee at its address set forth on the Reference Pages, or at such other address as it has then last specified by written notice delivered in accordance with this Article 27, or if to Tenant at either its aforesaid address or its last known registered office or home of a general partner or individual owner, whether or not actually accepted or received by the addressee.  Any such notice or document may also be personally delivered if a receipt is signed by and received from, the individual, if any, named in Tenant’s Notice Address.

 

28.          TAXES PAYABLE BY TENANT.  In addition to rent and other charges to be paid by Tenant under this Lease, Tenant shall reimburse to Landlord, upon demand, any and all taxes payable by Landlord (other than net income taxes) whether or not now customary or within the contemplation of the parties to this Lease:  (a) upon, allocable to, or measured by or on the gross or net rent payable under this Lease, including without limitation any gross income tax or excise tax levied by the State, any political subdivision thereof, or the Federal Government with respect to the receipt of such rent; (b) upon or with respect to the possession, leasing, operation, management, maintenance, alteration, repair, use or occupancy of the Premises or any portion thereof, including any sales, use or service tax imposed as a result thereof; (c) upon or measured by the Tenant’s gross receipts or payroll or the value of Tenant’s equipment, furniture, fixtures and other personal property of Tenant or leasehold improvements, alterations or additions located in the Premises; or (d) upon this transaction or any document to which Tenant is a party creating or transferring any interest of Tenant in this Lease or the Premises.  In addition to the foregoing, Tenant agrees to pay, before delinquency, any and all taxes levied or assessed against Tenant and which become payable during the term hereof upon Tenant’s equipment, furniture, fixtures and other personal property of Tenant located in the Premises.

 

29.          INTENTIONALLY DELETED.

 

30.          DEFINED TERMS AND HEADINGS.  The Article headings shown in this Lease are for convenience of reference and shall in no way define, increase, limit or describe the scope or intent of any provision of this Lease.  Any indemnification or insurance of Landlord shall apply to and inure to the benefit of all the following “Landlord Entities”, being Landlord, Landlord’s investment manager, and the trustees, boards of directors, officers, general partners, beneficiaries, stockholders, employees and agents of each of them.  Any option granted to Landlord shall also include or be exercisable by Landlord’s trustee, beneficiary, agents and employees, as the case may be.  In any case where this Lease is signed by more than one person, the obligations under this Lease shall be joint and several.  The terms “Tenant” and “Landlord” or any pronoun used in place thereof shall indicate and include the masculine or feminine, the singular or plural number, individuals, firms or corporations, and their and each of their respective successors, executors, administrators and permitted assigns, according to the context hereof.  The term “rentable area” shall mean the rentable area of the Premises or the Building as calculated by the Landlord on the basis of the plans and specifications of the Building including a proportionate share of any common areas.  

 

17

 

Tenant hereby accepts and agrees to be bound by the figures for the rentable square footage of the Premises and Tenant’s Proportionate Share shown on the Reference Pages; however, Landlord shall adjust either or both figures if there is manifest error, addition or subtraction to the Building or any business park or complex of which the Building is a part, remeasurement or other circumstance reasonably justifying adjustment.  The term “Building” refers to the structure in which the Premises are located and the common areas (parking lots, sidewalks, landscaping, etc.) appurtenant thereto.  If the Building is part of a larger complex of structures, the term “Building” may include the entire complex, where appropriate (such as shared Expenses or Taxes) and subject to Landlord’s reasonable discretion.

 

31.          TENANT’S AUTHORITY.  If Tenant signs as a corporation, partnership, trust or other legal entity each of the persons executing this Lease on behalf of Tenant represents and warrants that Tenant has been and is qualified to do business in the state in which the Building is located, that the entity has full right and authority to enter into this Lease, and that all persons signing on behalf of the entity were authorized to do so by appropriate actions. Tenant agrees to deliver to Landlord, simultaneously with the delivery of this Lease, a corporate resolution, proof of due authorization by partners, opinion of counsel or other appropriate documentation reasonably acceptable to Landlord evidencing the due authorization of Tenant to enter into this Lease.

 

Tenant hereby represents and warrants that neither Tenant, nor any persons or entities holding any legal or beneficial interest whatsoever in Tenant, are (i) the target of any sanctions program that is established by Executive Order of the President or published by the Office of Foreign Assets Control, U.S. Department of the Treasury (“OFAC”); (ii) designated by the President or OFAC pursuant to the Trading with the Enemy Act, 50 U.S.C. App.  § 5, the International Emergency Economic Powers Act, 50 U.S.C. §§ 1701-06, the Patriot Act, Public Law 107-56, Executive Order 13224 (September 23, 2001) or any Executive Order of the President issued pursuant to such statutes; or (iii) named on the following list that is published by OFAC: “List of Specially Designated Nationals and Blocked Persons.” If the foregoing representation is untrue at any time during the Term, an Event of Default will be deemed to have occurred, without the necessity of notice to Tenant.

 

32.          FINANCIAL STATEMENTS AND CREDIT REPORTS.  At Landlord’s request [*] Tenant shall deliver to Landlord a copy, certified by an officer of Tenant as being a true and correct copy, of Tenant’s most recent audited financial statement, or, if unaudited, certified by Tenant’s chief financial officer as being true, complete and correct in all material respects.  Landlord agrees to treat all such financial statements as Tenant confidential information, and shall not share such statements or information contained in such statements with any third party without first obtaining Tenant’s express written permission.  Tenant hereby authorizes Landlord to obtain one or more credit reports on Tenant at any time [*], and shall execute such further authorizations as Landlord may reasonably require in order to obtain a credit report.  [*]

 

33.          COMMISSIONS.  Each of the parties represents and warrants to the other that it has not dealt with any broker or finder in connection with this Lease, except as described on the Reference Pages.

 

34.          TIME AND APPLICABLE LAW.  Time is of the essence of this Lease and all of its provisions.  This Lease shall in all respects be governed by the laws of the state in which the Building is located.

 

35.          SUCCESSORS AND ASSIGNS.  Subject to the provisions of Article 9, the terms, covenants and conditions contained in this Lease shall be binding upon and inure to the benefit of the heirs, successors, executors, administrators and assigns of the parties to this Lease.

 

36.          ENTIRE AGREEMENT.  This Lease, together with its exhibits, contains all agreements of the parties to this Lease and supersedes any previous negotiations.  There have been no representations made by the Landlord or any of its representatives or understandings made between the parties other than those set forth in this Lease and its exhibits.  This Lease may not be modified except by a written instrument duly executed by the parties to this Lease.

 

37.          EXAMINATION NOT OPTION.  Submission of this Lease shall not be deemed to be a reservation of the Premises.  Landlord shall not be bound by this Lease until it has received a copy of this Lease duly executed by Tenant and has delivered to Tenant a copy of this Lease duly executed by Landlord, and until such delivery Landlord reserves the right to exhibit and lease the Premises to other prospective tenants.  Notwithstanding anything contained in this Lease to the contrary, Landlord may withhold delivery of possession of the Premises from Tenant until such time as Tenant has paid to Landlord any security deposit required by Article 5, the first month’s rent as set forth in Article 3 and any sum owed pursuant to this Lease.

 

38.          RECORDATION.  Tenant shall not record or register this Lease or a short form memorandum hereof without the prior written consent of Landlord, and then shall pay all charges and taxes incident such recording or registration.  In the 

 

18

 

event that Landlord records or registers this Lease or a memorandum thereof, Landlord shall pay charges and taxes incident to such recording or registration.

 

39.          RIGHT OF FIRST OFFER.

 

39.1        Provided that as of the date of the giving of the First Offer Notice, (a) Tenant is the Tenant originally named herein, (b) Tenant actually occupies substantially all of the Premises originally demised under this Lease and any space added to the Premises; and (c) no Event of Default exists, if at any time during the Term any lease for any space in the Building (the “Offered Space”) expires, then Landlord, before offering such Offered Space to anyone other than the tenant then occupying such space (or its affiliates) or other tenants with prior rights to the Offered Space, will offer to Tenant the right to include the Offered Space within the Premises on the same terms and conditions upon which Landlord intends to offer the Offered Space for lease, provided that such terms shall include (and make appropriate business term adjustments for) an abatement of the Monthly Installments of Annual Rent which would be due for the Offered Space for a period of 120 days following the date of Tenant’s Notice.

 

39.2        Such offer will be made by Landlord to Tenant in a written notice (the “First Offer Notice”), which offer will designate the space being offered and specify the terms which Landlord intends to offer with respect to the Offered Space.  Tenant may accept the offer set forth in the First Office Notice by delivering to Landlord an unconditional acceptance (“Tenant’s Notice”) of such offer within ten (10) days after delivery by Landlord of the First Offer Notice to Tenant.  Time will be of the essence with respect to the giving of Tenant’s Notice.  If Tenant does not accept (or fails to timely accept) an offer made by Landlord in the First Offer Notice, Landlord will be under no further obligation with respect to such space.

 

39.3        Tenant must accept all Offered Space offered by Landlord at any one time if it desires to accept any of such Offered Space and may not exercise its right with respect to only part of such space.  In addition, if Landlord desires to lease more than just the Offered Space to one tenant, Landlord may offer to Tenant, pursuant to the terms hereof, all such space which Landlord desires to lease, and Tenant must exercise its rights hereunder with respect to all such space, and may not insist on receiving an offer for just the Offered Space.

 

39.4        If Tenant at any time declines any Offered Space offered by Landlord, Tenant will be deemed to have waived all further rights with respect to the Offered Space until such time as any future lease for such space expires, and Landlord will be free to lease the Offered Space to third parties, including on terms which may be more or less favorable to Landlord than those offered to Tenant.  In such event, upon Landlord’s request, Tenant will execute a release evidencing its waiver of such rights with respect to the Offered Space.

 

40.                          39.5        The rights of Tenant under this Section 39 for any Offered Space shall not apply if as of the time that Tenant sends the Tenant’s Notice, there are less than 36 months remaining in the Term, unless prior to Tenant’s delivery of the Extension Notice, Tenant and Landlord have agreed to an extension of the Term for an Extension Term under Section 2.4 above (including an agreement on the Annual Rent for the Extension Term).

 

LIMITATION OF LANDLORD’S LIABILITY.  Redress for any claim against Landlord under this Lease shall be limited to and enforceable only against and to the extent of Landlord’s interest in the Building.  The obligations of Landlord under this Lease are not intended to be and shall not be personally binding on, nor shall any resort be had to the private properties of, any of its or its investment manager’s trustees, directors, officers, partners, beneficiaries, members, stockholders, employees, or agents, and in no case shall Landlord be liable to Tenant hereunder for any lost profits, damage to business, or any form of special, indirect or consequential damages.

 

[THE REMAINDER OF THIS PAGE INTENTIONALLY LEFT BLANK]

 

19

 

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

 

	
LANDLORD:
    	
TENANT:
    
	
MOR GATE LLC
    	
ACELL, INC.
    
	
 
    	
 
    
	
By: 
    	
/s/ Michael A. Ready
    	
 
    	
By:
    	
/s/ Edward O’Brien
    
	
 
    	
Michael A. Ready
    	
Name:
    	
Edward O’Brien
    
	
 
    	
Vice President
    	
Title: 
    	
CFO
    
	
Dated:
    	
        1/30                     ,   2015
    	
Dated: 
    	
      1-27-15                   ,   2015
    
					

 

20

 

EXHIBIT A — FLOOR PLAN DEPICTING THE PREMISES

 

attached to and made a part of Lease bearing the

Lease Reference Date of                , 2015 between

MOR Gate LLC as Landlord and

ACell, Inc., as Tenant

 

Exhibit A is intended only to show the general layout of the Premises as of the beginning of the Term of this Lease.  It does not in any way supersede any of Landlord’s rights set forth in Article 17 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.

 

	
10/31/01   MTIN
    	
 
    	
 
    
	
Revised   9/09/05
    	
A
    	
Initials
    
	
4843-4704-9241.06
    	
 
    	
 
    

 

 

EXHIBIT A-1 — SITE PLAN

 

attached to and made a part of Lease bearing the

Lease Reference Date of                , 2015 between

MOR Gate LLC as Landlord and

ACell, Inc., as Tenant

 

Exhibit A-1 is intended only to show the general location of the Premises as of the beginning of the Term of this Lease.  It does not in any way supersede any of Landlord’s rights set forth in Article 17 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.

 

	
 
    	
A-1
    	
Initials
    

 

 

EXHIBIT B — INITIAL ALTERATIONS

 

attached to and made a part of Lease bearing the

Lease Reference Date of                , 2015 between

MOR Gate LLC as Landlord and

ACell, Inc., as Tenant

 

1.             Landlord agrees that Landlord will contribute to Tenant the amount of $[*] (“Landlord’s Allowance”) to be applied solely toward the cost of the Tenant Improvement Costs (and to the extent provided below, toward Annual Rent obligations), provided that Landlord shall not be required to disburse Landlord’s Allowance during such time as uncured Event of Default exists and is continuing beyond any applicable notice and cure period under the Lease.  [*] in accordance with the terms and restrictions set forth in Section 2 below.

 

“Tenant Improvements” means all direct improvements made by Tenant to the Premises and approved by Landlord (and excluding Tenant’s personal property, furniture, IT and phone systems and the like).

 

“Tenant Improvement Costs” means all direct costs for the Tenant Improvements, together with all overhead payable to Tenant’s General Contractor for the Tenant Improvements and all architectural and engineering fees payable by Tenant for the Tenant Improvements and all permit fees for the Tenant Improvements, whether such costs were incurred by Tenant prior to the date of this Lease or will be incurred after the date of this Lease.

 

2.             Following the Commencement Date, Landlord shall disburse Landlord’s Allowance directly to Tenant, to be applied towards the Tenant Improvement Costs, upon Landlord’s receipt of invoices for the Tenant Improvement Costs for which Tenant is seeking reimbursement from Landlord from the Landlord’s Allowance.  Moreover, prior to each such payment by Landlord, the following conditions also shall be satisfied (the “Payment Conditions”) (i) receipt by Landlord of invoices for any Tenant Improvement Costs for which Tenant is seeking reimbursement, (ii)  partial original lien waivers covering work with respect to which any materialman or contractor performed at the Premises and for which Tenant is seeking reimbursement; and (iii) a W-9 from the Tenant. Subject to satisfaction of the foregoing Payment Conditions, Landlord shall pay such charges one (1) time per month.  Tenant shall use Landlord’s Allowance within 12 months following the Commencement Date (the “Allowance Expiration Date”), or the same shall no longer be available to Tenant, [*].

 

3.             Tenant shall pay all costs of the Tenant Improvements exceeding the amount of the Landlord’s Allowance.

 

4.             Landlord shall be under no obligation to disburse any portion of the Landlord’s Allowance prior to the Commencement Date.

 

	
 
    	
B
    	
Initials
    

 

 

EXHIBIT C – COMMENCEMENT DATE MEMORANDUM

 

 

attached to and made a part of Lease bearing the

Lease Reference Date of                , 2015 between

MOR Gate LLC as Landlord and

ACell, Inc., as Tenant

 

COMMENCEMENT DATE MEMORANDUM

 

THIS MEMORANDUM, made as of      , 20     , by and between       (“Landlord”) and       (“Tenant”).

Recitals:

 

A.            Landlord and Tenant are parties to that certain Lease, dated for reference      , 20      (the “Lease”) for certain premises (the “Premises”) consisting of approximately       square feet at the building commonly known as      .

 

B.            Tenant is in possession of the Premises and the Term of the Lease has commenced.

 

C.            Landlord and Tenant desire to enter into this Memorandum confirming the Commencement Date, the Termination Date and other matters under the Lease.  

 

NOW, THEREFORE, Landlord and Tenant agree as follows:

 

1.             The actual Commencement Date is      .

 

2.             The actual Termination Date is      .

 

3.             The schedule of the Annual Rent and the Monthly Installment of Rent set forth on the Reference Pages is deleted in its entirety, and the following is substituted therefor:

 

[insert rent schedule]

 

4.             Capitalized terms not defined herein shall have the same meaning as set forth in the Lease.

 

IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed as of the date and year first above written.

 

	
LANDLORD:
    	
TENANT:
    
	
MOR   GATE LLC
    	
ACELL, INC.
    
	
 
    	
 
    	
 
    
	
By:
    	
                 DO NOT SIGN
    	
 
    	
By:
    	
               DO NOT SIGN
    
	
 
    	
Michael A. Ready
    	
 
    	
Name:
    	
 
    
	
 
    	
Vice President
    	
 
    	
Title:
    	
 
    
	
Dated:              , 2015
    	
Dated:                , 2015
    

 

	
 
    	
C
    	
Initials
    

 

 

EXHIBIT D – RULES AND REGULATIONS

 

attached to and made a part of Lease bearing the

Lease Reference Date of                , 2015 between

MOR Gate LLC as Landlord and

ACell, Inc., as Tenant

 

1.             No sign, placard, picture, advertisement, name or notice (collectively referred to as “Signs”) shall be installed or displayed on any part of the outside of the Building without the prior written consent of the Landlord which consent shall be in Landlord’s sole discretion. All approved Signs shall be printed, painted, affixed or inscribed at Tenant’s expense by a person or vendor approved by Landlord and shall be removed by Tenant at Tenant’s expense upon vacating the Premises. Landlord shall have the right to remove any Sign installed or displayed in violation of this rule at Tenant’s expense and without notice.

 

2.             If Landlord objects in writing to any curtains, blinds, shades or screens attached to or hung in or used in connection with any window or door of the Premises or Building, Tenant shall immediately discontinue such use.  No awning shall be permitted on any part of the Premises.  Tenant shall not place anything or allow anything to be placed against or near any glass partitions or doors or windows which may appear unsightly, in the opinion of Landlord, from outside the Premises.

 

3.             Tenant shall not alter any lock or other access device or install a new or additional lock or access device or bolt on any door of its Premises without the prior written consent of Landlord.  Tenant, upon the termination of its tenancy, shall deliver to Landlord the keys or other means of access to all doors.

 

4.             If Tenant requires telephone, data, burglar alarm or similar service, the cost of purchasing, installing and maintaining such service shall be borne solely by Tenant. No boring or cutting for wires will be allowed without the prior written consent of Landlord. Landlord shall direct electricians as to where and how telephone, data, and electrical wires are to be introduced or installed. The location of burglar alarms, telephones, call boxes or other office equipment affixed to the Premises shall be subject to the prior written approval of Landlord.

 

5.             Tenant shall not place a load upon any floor of its Premises, including mezzanine area, if any, which exceeds the load per square foot that such floor was designed to carry and that is allowed by law. Heavy objects shall stand on such platforms as determined by Landlord to be necessary to properly distribute the weight. Landlord will not be responsible for loss of or damage to any such equipment or other property from any cause, and all damage done to the Building by maintaining or moving such equipment or other property shall be repaired at the expense of Tenant.

 

6.             Tenant shall not install any radio or television antenna, satellite dish, loudspeaker or other device on the roof or exterior walls of the Building without Landlord’s prior written consent which consent shall be in Landlord’s sole discretion. 

 

7.             Tenant shall not mark, drive nails, screw or drill into the partitions, woodwork, plaster or drywall (except for pictures and general office uses) or in any way deface the Premises or any part thereof.   Tenant shall not affix any floor covering to the floor of the Premises or paint or seal any floors in any manner except as approved by Landlord.  Tenant shall repair any damage resulting from noncompliance with this rule.

 

8.             No cooking shall be done or permitted on the Premises, except that Underwriters’ Laboratory approved microwave ovens or equipment for brewing coffee, tea, hot chocolate and similar beverages shall be permitted, provided that such equipment and use is in accordance with all applicable federal, state and city laws, codes, ordinances, rules and regulations.

 

9.             Tenant shall not use any hand trucks except those equipped with the rubber tires and side guards, and may use such other material-handling equipment as Landlord may approve.  Tenant shall not bring any other vehicles of any kind into the Building. Forklifts which operate on asphalt areas shall only use tires that do not damage the asphalt. 

 

10.          Tenant shall not use the name of the Building or any photograph or other likeness of the Building in connection with or in promoting or advertising Tenant’s business except that Tenant may include the Building name in Tenant’s address. Landlord shall have the right, exercisable without notice and without liability to any tenant, to change the name and address of the Building.

 

11.          All trash and refuse shall be contained in suitable receptacles at locations approved by Landlord. Tenant shall not place in the trash receptacles any personal trash or material that cannot be disposed of in the ordinary and customary manner of removing such trash without violation of any law or ordinance governing such disposal.

 

12.          Tenant shall comply with all safety, fire protection and evacuation procedures and regulations established by Landlord or any governing authority.

 

1

 

13.          Tenant assumes all responsibility for securing and protecting its Premises and its contents including keeping doors locked and other means of entry to the Premises closed.

 

14.          Tenant shall not use any method of heating or air conditioning other than that supplied by Landlord without Landlord’s prior written consent.

 

15.          No person shall go on the roof without Landlord’s permission.

 

16.          Tenant shall not permit any animals, other than seeing-eye dogs, to be brought or kept in or about the Premises or any common area of the property. 

 

17.          Tenant shall not permit any motor vehicles to be washed or mechanical work or maintenance of motor vehicles to be performed on any portion of the Premises or parking lot. 

 

18.          These Rules and Regulations are in addition to, and shall not be construed to in any way modify or amend, in whole or in part, the terms, covenants, agreements and conditions of any lease of any premises in the Building.  Landlord may waive any one or more of these Rules and Regulations for the benefit of any tenant or tenants, and any such waiver by Landlord shall not be construed as a waiver of such Rules and Regulations for any or all tenants.

 

19.          Landlord reserves the right to make such other and reasonable rules and regulations as in its judgment may from time to time be needed for safety and security, for care and cleanliness of the Building and for the preservation of good order in and about the Building.  Tenant agrees to abide by all such rules and regulations herein stated and any additional rules and regulations which are adopted.  Tenant shall be responsible for the observance of all of the foregoing rules by Tenant’s employees, agents, clients, customers, invitees and guests.

 

20.          Any toilet rooms, toilets, urinals, wash bowls and other apparatus shall not be used for any purpose other than that for which they were constructed and no foreign substance of any kind whatsoever shall be thrown into them.  The expense of any breakage, stoppage or damage resulting from the violation of this rule shall be borne by the Tenant who, or whose employees or invitees, shall have caused it.

 

21.          Tenant shall not permit smoking or carrying of lighted cigarettes or cigars in areas reasonably designated by Landlord or any applicable governmental agencies as non-smoking areas.

 

22.          Any directory of the Building or project of which the Building is a part (“Project Area”), if provided, will be exclusively for the display of the name and location of tenants only and Landlord reserves the right to charge for the use thereof and to exclude any other names.  

 

23.          Canvassing, soliciting, distribution of handbills or any other written material in the Building or Project Area is prohibited and each tenant shall cooperate to prevent the same. No tenant shall solicit business from other tenants or permit the sale of any goods or merchandise in the Building or Project Area without the written consent of Landlord. 

 

24.          Any equipment belonging to Tenant which causes noise or vibration that may be transmitted to the structure of the Building or to any space therein to such a degree as to be objectionable to Landlord or to any tenants in the Building shall be placed and maintained by Tenant, at Tenant’s expense, on vibration eliminators or other devices sufficient to eliminate the noise or vibration.

 

25.          Driveways, sidewalks, halls, passages, exits, entrances and stairways (“Access Areas”) shall not be obstructed by tenants or used by tenants for any purpose other than for ingress to and egress from their respective premises. Access areas are not for the use of the general public and Landlord shall in all cases retain the right to control and prevent access thereto by all persons whose presence, in the judgment of Landlord, shall be prejudicial to the safety, character, reputation and interests of the Building or its tenants.

 

26.          Landlord reserves the right to designate the use of parking areas and spaces.  Tenant shall not park in visitor, reserved, or unauthorized parking areas. Tenant and Tenant’s guests shall park between designated parking lines only and shall not park motor vehicles in those are as designated by Landlord for loading and unloading. Vehicles in violation of the above shall be subject to being towed at the vehicle owner’s expense. Vehicles parked overnight without prior written 

 

2

 

consent of the Landlord shall be deemed abandoned and shall be subject to being towed at vehicle owner’s expense. Tenant will from time to time, upon the request of Landlord, supply Landlord with a list of license plate numbers of vehicles owned or operated by its employees or agents.

 

27.          No trucks, tractors or similar vehicles can be parked anywhere other than in Tenant’s own truck dock area. Tractor-trailers which must be unhooked or parked with dolly wheels beyond the concrete loading areas must use steel plates or wood blocks under the dolly wheels to prevent damage to the asphalt paving surfaces. No parking or storing of such trailers will be permitted in the parking areas or on streets adjacent thereto.

 

28.          During periods of loading and unloading, Tenant shall not unreasonably interfere with traffic flow and loading and unloading areas of other tenants.  All products, materials or goods must be stored within the Tenant’s Premises and not in any exterior areas, including, but not limited to, exterior dock platforms, against the exterior of the Building, parking areas and driveway areas. Tenant agrees to keep the exterior of the Premises clean and free of nails, wood, pallets, packing materials, barrels and any other debris produced from their operation.

 

[REMAINDER OF THIS PAGE LEFT INTENTIONALLY BLANK]

 

3

 

EXHIBIT E –  HVAC UNITS

 

attached to and made a part of Lease bearing the

Lease Reference Date of                , 2015 between

MOR Gate LLC as Landlord and

ACell, Inc., as Tenant

 

6630 Eli Whitney Drive – HVAC Units

 

	
Make
    	
 
    	
Model #
    	
 
    	
Serial #
    	
 
    	
Area Located
    	
 
    	
Size (Ton)
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
York
    	
 
    	
D4CG150N161525JSD
    	
 
    	
NNGM167089
    	
 
    	
6630
    	
 
    	
12.5
    
	
York
    	
 
    	
D41G150N165253SD
    	
 
    	
NEHM069740
    	
 
    	
6630
    	
 
    	
12.5
    
	
York
    	
 
    	
D7CG036N04025A
    	
 
    	
NOM4219861
    	
 
    	
6630
    	
 
    	
3
    
	
York
    	
 
    	
D2CG072N09925A
    	
 
    	
NFHM075946
    	
 
    	
6630
    	
 
    	
6
    

 

	
 
    	
E
    	
Initials
    

 

 

CERTAIN CONFIDENTIAL INFORMATION CONTAINED IN THIS DOCUMENT, MARKED BY [*], HAS BEEN OMITTED BECAUSE IT IS NOT MATERIAL AND WOULD LIKELY CAUSE COMPETITIVE HARM TO ACELL, INC. IF PUBLICLY DISCLOSED.

 

LEASE

 

MOR GATE LLC,

Landlord,

 

and

 

ACELL, INC.,

Tenant

 

at

 

6640 Eli Whitney Drive

Columbia, Maryland  21046

 

 

TABLE OF CONTENTS

 

	
 
    	
 
    	
Page
    
	
 
    	
 
    	
 
    
	
1.
    	
USE AND RESTRICTIONS ON   USE
    	
1
    
	
 
    	
 
    	
 
    
	
2.
    	
TERM
    	
2
    
	
 
    	
 
    	
 
    
	
3.
    	
RENT
    	
3
    
	
 
    	
 
    	
 
    
	
4.
    	
RENT ADJUSTMENTS
    	
4
    
	
 
    	
 
    	
 
    
	
5.
    	
SECURITY DEPOSIT
    	
5
    
	
 
    	
 
    	
 
    
	
6.
    	
ALTERATIONS
    	
7
    
	
 
    	
 
    	
 
    
	
7.
    	
REPAIR
    	
8
    
	
 
    	
 
    	
 
    
	
8.
    	
LIENS
    	
8
    
	
 
    	
 
    	
 
    
	
9.
    	
ASSIGNMENT AND   SUBLETTING
    	
9
    
	
 
    	
 
    	
 
    
	
10.
    	
INDEMNIFICATION
    	
10
    
	
 
    	
 
    	
 
    
	
11.
    	
INSURANCE
    	
10
    
	
 
    	
 
    	
 
    
	
12.
    	
WAIVER OF SUBROGATION
    	
11
    
	
 
    	
 
    	
 
    
	
13.
    	
SERVICES AND UTILITIES
    	
11
    
	
 
    	
 
    	
 
    
	
14.
    	
HOLDING OVER
    	
11
    
	
 
    	
 
    	
 
    
	
15.
    	
SUBORDINATION
    	
11
    
	
 
    	
 
    	
 
    
	
16.
    	
RULES AND REGULATIONS
    	
12
    
	
 
    	
 
    	
 
    
	
17.
    	
REENTRY BY LANDLORD
    	
12
    
	
 
    	
 
    	
 
    
	
18.
    	
DEFAULT
    	
13
    
	
 
    	
 
    	
 
    
	
19.
    	
REMEDIES
    	
13
    
	
 
    	
 
    	
 
    
	
20.
    	
TENANT’S BANKRUPTCY OR   INSOLVENCY.
    	
16
    
	
 
    	
 
    	
 
    
	
21.
    	
QUIET ENJOYMENT
    	
17
    
	
 
    	
 
    	
 
    
	
22.
    	
CASUALTY
    	
17
    
	
 
    	
 
    	
 
    
	
23.
    	
EMINENT DOMAIN
    	
18
    
	
 
    	
 
    	
 
    
	
24.
    	
SALE BY LANDLORD
    	
18
    
	
 
    	
 
    	
 
    
	
25.
    	
ESTOPPEL CERTIFICATES
    	
18
    
	
 
    	
 
    	
 
    
	
26.
    	
SURRENDER OF PREMISES
    	
18
    
	
 
    	
 
    	
 
    
	
27.
    	
NOTICES
    	
19
    
	
 
    	
 
    	
 
    
	
28.
    	
TAXES PAYABLE BY TENANT
    	
19
    
	
 
    	
 
    	
 
    
	
29.
    	
INTENTIONALLY DELETED
    	
19
    
	
 
    	
 
    	
 
    
	
30.
    	
DEFINED TERMS AND   HEADINGS
    	
19
    
	
 
    	
 
    	
 
    
	
31.
    	
TENANT’S AUTHORITY
    	
20
    
	
 
    	
 
    	
 
    
	
32.
    	
FINANCIAL STATEMENTS   AND CREDIT REPORTS
    	
20
    
	
 
    	
 
    	
 
    
	
33.
    	
COMMISSIONS
    	
20
    
	
 
    	
 
    	
 
    
	
34.
    	
TIME AND APPLICABLE LAW
    	
20
    
	
 
    	
 
    	
 
    
	
35.
    	
SUCCESSORS AND ASSIGNS
    	
20
    
	
 
    	
 
    	
 
    
	
36.
    	
ENTIRE AGREEMENT
    	
20
    
	
 
    	
 
    	
 
    
	
37.
    	
EXAMINATION NOT OPTION
    	
21
    

 

i

 

TABLE OF CONTENTS

(continued)

 

	
 
    	
 
    	
Page
    
	
 
    	
 
    	
 
    
	
38.
    	
RECORDATION
    	
21
    
	
 
    	
 
    	
 
    
	
39.
    	
RIGHT OF FIRST OFFER
    	
21
    
	
 
    	
 
    	
 
    
	
40.
    	
LIMITATION OF   LANDLORD’S LIABILITY
    	
22
    
	
 
    	
 
    	
 
    
	
EXHIBIT A   — FLOOR PLAN DEPICTING THE PREMISES
    	
 
    
	
 
    	
 
    
	
EXHIBIT A-1   — SITE PLAN
    	
 
    
	
 
    	
 
    
	
EXHIBIT B   — INITIAL ALTERATIONS
    	
 
    
	
 
    	
 
    
	
EXHIBIT C   — COMMENCEMENT DATE MEMORANDUM
    	
 
    
	
 
    	
 
    
	
EXHIBIT D   — RULES AND REGULATIONS
    	
 
    
	
 
    	
 
    
	
EXHIBIT E   — HVAC UNITS
    	
 
    
	
 
    	
 
    
	
EXHIBIT F   — PRE-EXISTING ALTERATIONS
    	
 
    

 

ii

 

MULTI-TENANT INDUSTRIAL NET LEASE

 

REFERENCE PAGES

 

	
BUILDING:
    	
 
    	
6640 Eli Whitney Drive
   Columbia, Maryland 21046
    
	
 
    	
 
    	
 
    
	
LANDLORD:
    	
 
    	
MOR Gate LLC
    
	
 
    	
 
    	
 
    
	
LANDLORD’S ADDRESS:
    	
 
    	
c/o RREEF
   8980 Route 108, Suite C
   Columbia, MD 21045
    
	
 
    	
 
    	
 
    
	
WIRE INSTRUCTIONS AND/OR ADDRESS FOR RENT PAYMENT:
    	
 
    	
MOR Gate LLC
   Gateway 58-6640
   P. O. Box 6233
   Hicksville, New York 11802-6233
    
	
 
    	
 
    	
 
    
	
LEASE REFERENCE DATE:
    	
 
    	
  January 27                     ,   2015
    
	
 
    	
 
    	
 
    
	
TENANT:
    	
 
    	
ACell, Inc., a Delaware corporation
    
	
TENANT’S NOTICE ADDRESS:
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
(a) As of   beginning of Term:
    	
 
    	
6640 Eli Whitney Drive, Suite Number 100
   Columbia, Maryland 21046
    
	
 
    	
 
    	
 
    
	
(b) Prior to   beginning of Term (if different):
    	
 
    	
N/A
    
	
 
    	
 
    	
 
    
	
PREMISES ADDRESS:
    	
 
    	
 
    
	
Suite 100:
    	
 
    	
6640 Eli Whitney Drive, Suite Number 100
   Columbia, Maryland 21046
    
	
 
    	
 
    	
 
    
	
Suite 200:
    	
 
    	
6640 Eli Whitney Drive, Suite Number 200
   Columbia, Maryland 21046
    
	
 
    	
 
    	
 
    
	
PREMISES RENTABLE AREA:
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
Suite 100:
    	
 
    	
Approximately 15,042 rentable square feet (for   outline of Premises see Exhibit A)
    
	
Suite 200:
    	
 
    	
Approximately 20,741 rentable square feet (for   outline of Premises see Exhibit A)
    
	
 
    	
 
    	
 
    
	
USE:
    	
 
    	
Office, medical device manufacturing, medical   research, and all other legally permitted uses related thereto
    
	
 
    	
 
    	
 
    
	
COMMENCEMENT DATE:
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
Suite 100:
    	
 
    	
May 1, 2016
    
	
 
    	
 
    	
 
    
	
Suite 200:
    	
 
    	
March 1, 2017
    

 

iii

 

	
TERM OF LEASE:
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
Suite 100:
    	
 
    	
Approximately six (6) years and eleven (11) months, beginning on the Commencement Date and ending on the Termination Date. The period from the Commencement Date to the last day of the same month is the “Commencement Month.”
    
	
 
    	
 
    	
 
    
	
Suite 200:
    	
 
    	
Approximately six (6) years and one (1) month, beginning on the Commencement Date and ending on the Termination Date. The period from the Commencement Date to the last day of the same month is the “Commencement Month.”
    
	
 
    	
 
    	
 
    
	
TERMINATION DATE:
    	
 
    	
March 31, 2023
    
	
 
    	
 
    	
 
    
	
ANNUAL RENT and   MONTHLY INSTALLMENT OF RENT FOR SUITE 100 (Article 3):
    

 

	
Period
    	
 
    	
Rentable Square
    	
 
    	
Annual Rent
    	
 
    	
 
    	
 
    	
Monthly Installmen
    	
 
    
	
from
    	
 
    	
through
    	
 
    	
Footage
    	
 
    	
Per Square Foot
    	
 
    	
Annual Rent
    	
 
    	
of Rent
    	
 
    
	
5/1/2016
    	
 
    	
4/30/2017
    	
 
    	
15,042
    	
 
    	
$
    	
[*]
    	
 
    	
$
    	
[*]
    	
 
    	
$
    	
[*]
    	
 
    
	
5/1/2017
    	
 
    	
4/30/2018
    	
 
    	
15,042
    	
 
    	
$
    	
[*]
    	
 
    	
$
    	
[*]
    	
 
    	
$
    	
[*]
    	
 
    
	
5/1/2018
    	
 
    	
4/30/2019
    	
 
    	
15,042
    	
 
    	
$
    	
[*]
    	
 
    	
$
    	
[*]
    	
 
    	
$
    	
[*]
    	
 
    
	
5/1/2019
    	
 
    	
4/30/2020
    	
 
    	
15,042
    	
 
    	
$
    	
[*]
    	
 
    	
$
    	
[*]
    	
 
    	
$
    	
[*]
    	
 
    
	
5/1/2020
    	
 
    	
4/30/2021
    	
 
    	
15,042
    	
 
    	
$
    	
[*]
    	
 
    	
$
    	
[*]
    	
 
    	
$
    	
[*]
    	
 
    
	
5/1/2021
    	
 
    	
4/30/2022
    	
 
    	
15,042
    	
 
    	
$
    	
[*]
    	
 
    	
$
    	
[*]
    	
 
    	
$
    	
[*]
    	
 
    
	
5/1/2022
    	
 
    	
4/31/2023
    	
 
    	
15,042
    	
 
    	
$
    	
[*]
    	
 
    	
$
    	
[*]
    	
 
    	
$
    	
[*]
    	
 
    

 

ANNUAL RENT and MONTHLY INSTALLMENT OF RENT FOR SUITE 200 (Article 3): 

 

	
Period
    	
 
    	
Rentable Square
    	
 
    	
Annual Rent
    	
 
    	
 
    	
 
    	
Monthly Installment
    	
 
    
	
from
    	
 
    	
through
    	
 
    	
Footage
    	
 
    	
Per Square Foot
    	
 
    	
Annual Rent
    	
 
    	
of Rent
    	
 
    
	
3/1/2017
    	
 
    	
2/28/2018
    	
 
    	
20,741
    	
 
    	
$
    	
 [*]
    	
 
    	
$
    	
 [*]
    	
 
    	
$
    	
 [*]
    	
 
    
	
3/1/2018
    	
 
    	
2/28/2019
    	
 
    	
20,741
    	
 
    	
$
    	
 [*]
    	
 
    	
$
    	
 [*]
    	
 
    	
$
    	
 [*]
    	
 
    
	
3/1/2019
    	
 
    	
2/29/2020
    	
 
    	
20,741
    	
 
    	
$
    	
 [*]
    	
 
    	
$
    	
 [*]
    	
 
    	
$
    	
 [*]
    	
 
    
	
3/1/2020
    	
 
    	
2/28/2021
    	
 
    	
20,741
    	
 
    	
$
    	
 [*]
    	
 
    	
$
    	
 [*]
    	
 
    	
$
    	
 [*]
    	
 
    
	
3/1/2021
    	
 
    	
2/28/2022
    	
 
    	
20,741
    	
 
    	
$
    	
 [*]
    	
 
    	
$
    	
 [*]
    	
 
    	
$
    	
 [*]
    	
 
    
	
3/1/2022
    	
 
    	
2/28/2023
    	
 
    	
20,741
    	
 
    	
$
    	
 [*]
    	
 
    	
$
    	
 [*]
    	
 
    	
$
    	
 [*]
    	
 
    
	
3/1/2023
    	
 
    	
3/31/2023
    	
 
    	
20,741
    	
 
    	
$
    	
 [*]
    	
 
    	
$
    	
 [*]
    	
 
    	
$
    	
 [*]
    	
 
    

 

	
INITIAL ESTIMATED   MONTHLY INSTALLMENT OF RENT ADJUSTMENTS (Article 4):
    	
Suite 100:  Taxes                               $[*]

Suite 100:  Expenses             $[*]

 

Suite 200:  Taxes                               $[*]

Suite 200:  Expenses             $[*]

 
    
	
 
    	
 
    
	
TENANT’S PROPORTIONATE   SHARE:
    	
Suite 100:  [*]

Suite 200:  [*]

 
    
	
 
    	
 
    
	
SECURITY DEPOSIT:
    	
$[*]

 
    
	
 
    	
 
    
	
ASSIGNMENT/SUBLETTING   FEE
    	
$[*]
    
	
 
    	
 
    
	
REAL ESTATE BROKER DUE   COMMISSION:
    	
CBRE, Inc. and   Jones Lange LaSalle Brokerage, Inc.
    
	
 
    	
 
    
	
TENANT’S NAICS CODE:
    	
 
    

 

iv

 

	
AMORTIZATION RATE:
    	
[*]
    

 

The Reference Pages information is incorporated into and made a part of the Lease.  In the event of any conflict between any Reference Pages information and the Lease, the Lease shall control.  This Lease includes Exhibits A through F, all of which are made a part of this Lease.

 

	
LANDLORD:
    	
 
    	
TENANT:
    
	
 
    	
 
    	
 
    
	
MOR GATE LLC
    	
 
    	
ACELL, INC.
    
	
 
    	
 
    	
 
    
	
By:
    	
/s/ Michael A. Reddy
    	
 
    	
By:
    	
/s/ Edward O’Brien
    
	
 
    	
Michael A. Ready
    	
 
    	
Name:
    	
Edward O’Brien
    
	
 
    	
Vice President
    	
 
    	
Title:
    	
CFO
    
	
Dated:
    	
1/30                  ,   2015
    	
 
    	
Dated:
    	
1-27-15                           ,   2015
    

 

v

 

LEASE

 

By this Lease Landlord leases to Tenant and Tenant leases from Landlord the Premises in the Building as set forth and described on the Reference Pages.  The Premises are both Suite 100 and Suite 200 in the Building.  The Premises are depicted on the floor plan attached hereto as Exhibit A, and the Building is depicted on the site plan attached hereto as Exhibit A-1.  The Reference Pages, including all terms defined thereon, are incorporated as part of this Lease.

 

1.                                      USE AND RESTRICTIONS ON USE.

 

1.1                               The Premises are to be used solely for the purposes set forth on the Reference Pages.  Tenant shall not do or permit anything to be done in or about the Premises which will in any way obstruct or interfere with the rights of other tenants or occupants of the Building or injure, annoy, or disturb them, or allow the Premises to be used for any improper, immoral, unlawful, or objectionable purpose.  Tenant shall not do, permit or suffer in, on, or about the Premises the sale of any alcoholic liquor without the written consent of Landlord first obtained.  Tenant shall comply with all governmental laws, ordinances and regulations applicable to the use of the Premises and its occupancy and shall promptly comply with all governmental orders and directions for the correction, prevention and abatement of any violations in the Building or appurtenant land, caused or permitted by, or resulting from the specific use by, Tenant, or in or upon, or in connection with, the Premises, all at Tenant’s sole expense.  Tenant shall not do or permit anything to be done on or about the Premises or bring or keep anything into the Premises which will in any way increase the rate of, invalidate or prevent the procuring of any insurance protecting against loss or damage to the Building or any of its contents by fire or other casualty or against liability for damage to property or injury to persons in or about the Building or any part thereof without the consent of Landlord which shall not be unreasonably withheld, conditioned or delayed.

 

1.2                               Tenant shall not, and shall not direct, suffer or permit any of its agents, contractors, employees, licensees or invitees (collectively, the “Tenant Entities”) to at any time handle, use, manufacture, store or dispose of in or about the Premises or the Building any (collectively “Hazardous Materials”) flammables, explosives, radioactive materials, hazardous wastes or materials, toxic wastes or materials, or other similar substances, petroleum products or derivatives or any substance subject to regulation by or under any federal, state and local laws and ordinances relating to the protection of the environment or the keeping, use or disposition of environmentally hazardous materials, substances, or wastes, presently in effect or hereafter adopted, all amendments to any of them, and all rules and regulations issued pursuant to any of such laws or ordinances (collectively “Environmental Laws”), nor shall Tenant suffer or permit any Hazardous Materials to be used in any manner not fully in compliance with all Environmental Laws, in the Premises or the Building and appurtenant land or allow the environment to become contaminated with any Hazardous Materials.  Notwithstanding the foregoing, Tenant may handle, store, use or dispose of products containing small quantities of Hazardous Materials (such as aerosol cans containing insecticides, toner for copiers, paints, paint remover and the like) to the extent customary and necessary for the use of the Premises for general office, medical device manufacturing and medical research purposes; provided that Tenant shall always handle, store, use, and dispose of any such Hazardous Materials in a safe and lawful manner and never allow such Hazardous Materials to contaminate the Premises, Building and appurtenant land or the environment.  Tenant shall protect, defend, indemnify and hold each and all of the Landlord Entities (as defined in Article 30) harmless from and against any and all loss, claims, liability or costs (including court costs and attorney’s fees) incurred by reason of any actual or asserted failure of Tenant to fully comply with all applicable Environmental Laws, or the presence, handling, use or disposition in or from the Premises of any Hazardous Materials by Tenant or any Tenant Entity (even though permissible under all applicable Environmental Laws or the provisions of this Lease), or by reason of any actual or asserted failure of Tenant to keep, observe, or perform any provision of this Section 1.2.

 

1.3                               Tenant and the Tenant Entities will be entitled to the non-exclusive use of the common areas of the Building as they exist from time to time during the Term and any renewal periods, including the parking facilities, subject to Landlord’s rules and regulations regarding such use.  However, in no event will Tenant or the Tenant Entities park more vehicles in the parking facilities than four (4) spaces per 1,000 rentable square feet of the Premises leased hereunder.  The foregoing shall not be deemed to provide Tenant with an exclusive right to any parking spaces or any guaranty of the availability of any particular parking spaces or any specific number of parking spaces.

 

1.4                               Tenant shall be permitted, at Tenant’s expense, to install Building standard suite entry signage at the Premises, subject to Landlord’s approval of design, size and location, which shall not be unreasonably withheld, conditioned or delayed.  Tenant shall be permitted to retain the current monument signage that is installed at the entrance of the office park.  All such signage shall comply with all applicable governmental and private restrictions and requirements.

 

1.5                               Tenant shall have the right, at no additional rental charge, subject to the conditions set for the below, to locate up to five (5) pieces of Satellite Equipment (as hereafter defined) on the roof of the Building.  “Satellite Equipment” is 

 

vi

 

roof top antennas, roof top satellite dishes and other roof top communication devices reasonably approved by Landlord with such approval not to be unreasonably withheld, conditioned or delayed.  Tenant’s right to so locate the Satellite Equipment is subject to the following conditions:  (a) the location of the Satellite Equipment shall be determined by Landlord, (b) the location, screening, size, and all other aspects of the Satellite Equipment must be approved by Landlord and must comply with all applicable zoning, land use, and other laws, ordinances and requirements and all private restrictions and park covenants, (c) all roof penetrations necessary for the installation of the Satellite Equipment shall be performed, at Landlord’s election, solely by Landlord’s contractor at Tenant’s expense, so long as Landlord’s contractor’s fees and expenses for so doing do not exceed market rates, (d) the Satellite Equipment shall be removed at the expiration of the Term, and (e) Tenant shall (i) maintain Satellite Equipment in good working order, (ii) pay for any repair of any damage to the roof of the Building due to such Satellite Equipment and (iii) indemnify and hold Landlord harmless for any claims or liabilities arising out of the installation, maintenance, use or removal of the Satellite Equipment.

 

2.                                      TERM.

 

2.1                               The Term of this Lease as to each of Suite 100 and Suite 200 shall begin on the Commencement Date applicable to each of Suite 100 and Suite 200 and shall terminate on the Termination Date, unless sooner terminated by the provisions of this Lease.  Landlord shall tender possession of each of Suite 100 and Suite 200 of the Premises with all the work, if any, to be performed by Landlord pursuant to Exhibit B to this Lease substantially completed.  Tenant shall deliver a punch list of items not completed within thirty (30) days after Landlord tenders possession of each of Suite 100 and Suite 200 of the Premises and Landlord agrees to proceed with due diligence to perform its obligations regarding such items.  Tenant shall, at Landlord’s request, execute and deliver a memorandum agreement provided by Landlord in the form of Exhibit C attached hereto, setting forth the actual Commencement Date, Termination Date and, if necessary, a revised rent schedule.  Should Tenant fail to do so within thirty (30) days after Landlord’s written request, the information set forth in such memorandum provided by Landlord shall be conclusively presumed to be agreed and correct.

 

2.2                               Tenant agrees that in the event of the inability of Landlord to deliver possession of each of Suite 100 and Suite 200 of the Premises on the Commencement Date for any reason, Landlord shall not be liable for any damage resulting from such inability, but Tenant shall not be liable for any rent until the time when Landlord can, after notice to Tenant, deliver possession of Suite 100 or Suite 200 of the Premises to Tenant.  No such failure to give possession on the Commencement Date shall affect the other obligations of Tenant under this Lease.

 

2.3                               In the event Landlord permits Tenant, or any agent, employee or contractor of Tenant, to enter, use or occupy the Premises prior to the Commencement Date, such entry, use or occupancy shall be subject to all the provisions of this Lease other than the payment of rent, including, without limitation, Tenant’s compliance with the insurance requirements of Article 11.  Said early possession shall not advance the Termination Date.

 

2.4                               Provided that as of the time of the giving of the Extension Notice (as defined below) and the Commencement Date of the Extension Term, (as defined below) no uncured Event of Default (defined in Section 18 below) exists or would exist but for the passage of time or the giving of notice, or both; then Tenant will have the right to extend the Term of this Lease for two (2) additional terms of five (5) years (each, an “Extension Term”) commencing on the day following the expiration of the Term of this Lease (each, the “Commencement Date of the Extension Term”).  Tenant will give Landlord notice (each, the “Extension Notice”) of its election to extend the Term of this Lease at least 9 months, but not more than 12 months, prior to the scheduled expiration date of the Term of this Lease (the “Notice Period”).  Unless otherwise agreed to by Landlord, if Tenant does not give the Extension Notice during the Notice Period, Tenant’s right to extend the Term of this Lease will automatically terminate.  Time is of the essence as to the giving of each Extension Notice.

 

The Annual Rent payable by Tenant to Landlord during each Extension Term will be the then prevailing market rate for comparable space at the Building and comparable buildings in the vicinity of the Building, taking into account the size of the Premises, the length of the renewal term, market escalations, market concessions and the credit of Tenant.  The Annual Rent will not be reduced by reason of any costs or expenses saved by Landlord by reason of Landlord’s not having to find a new tenant for the Premises (including, without limitation, brokerage commissions, costs of improvements, rent concessions or lost rental income during any vacancy period).

 

The Annual Rent payable by Tenant to Landlord during each Extension Term will be determined in the following way:

 

(1)                                 Landlord and Tenant shall negotiate in good faith, making themselves available for negotiations, and if prior to Tenant’s delivery of the Extension Notice, Tenant and Landlord have previously agreed in writing upon the Annual Rent for the Extension Term, then the Annual Rent shall be as so agreed to by Landlord and Tenant.  If Landlord and Tenant

 

vii

 

have not previously agreed to the Annual Rent for the Extension Term when Tenant sends Landlord the Extension Notice, then Landlord shall notify Tenant (“Landlord’s Determination Notice”) of Landlord’s determination of Annual Rent within 30 days of Tenant’s Extension Notice.  If Tenant disagrees with Landlord’s determination, Tenant shall notify Landlord (“Tenant’s Notice of Disagreement”) within ten (10) business days after written receipt of Landlord’s written Determination Notice, either (A) revoking and terminating its election for the Extension Term, or (B) requesting that the Annual Rent be determined by the Brokers, pursuant to the procedure set forth below (the “3 Broker Method”).  If Tenant so elects to have the Annual Rent for the Extension Term determined by the 3 Broker Method, then the Annual Rent shall be determined as follows:  Landlord and Tenant shall, within fifteen (15) days of the date on which Tenant’s Notice of Disagreement was given, each appoint a Broker (as hereinafter defined) for the purpose of determining Annual Rent.  A “Broker” shall mean a Maryland real estate broker, duly licensed for a period in excess of ten (10) years and who has at least ten (10) years’ experience in leasing flex buildings in the greater Baltimore area.  In the event that the two (2) Brokers fail to agree as to the Annual Rent within a period of thirty (30) days after the appointment of the second Broker, the two (2) Brokers shall forthwith appoint a third Broker, who shall make a determination of Annual Rent in the manner hereinafter set forth within fifteen (15) days thereafter.  If the two (2) Brokers fail to agree with such third Broker within such fifteen (15) day period, such third Broker shall be appointed by a judge of the state court located in the county in which the Building is located.  Within five (5) days of the appointment of such third Broker, each party shall submit to the third Broker a written report setting forth its determination of Annual Rent, together with such information on comparable rentals or such other evidence as such party shall deem relevant.  The third Broker shall, within three (3) days following the submission of such written reports, render its decision by selecting the determination of Annual Rent submitted by either the Broker selected by Landlord or the Broker selected by Tenant, which in the judgment of the third Broker, most nearly reflects the Annual Rent for the Premises.  It is expressly understood that such third Broker shall have no power or authority to select any Annual Rent other than the Annual Rent submitted by the Broker for Landlord or submitted by the Broker for Tenant.  The decision of such Brokers or third Broker, as the case may be, shall be final and binding upon the parties, and such decision shall be in writing and a copy shall be delivered simultaneously to Landlord and to Tenant.  Tenant may not rescind its Extension Notice for any reason.  If such Brokers fail to deliver their decision as set forth above prior to the expiration of the initial Term of this Lease, Tenant shall pay to Landlord Annual Rent at the rate then in effect on the last day of the then current Term of this Lease until such decision is so delivered.  If the Annual Rent as determined above is in excess of the actual rent paid, Tenant, within five (5) days of demand, shall pay to Landlord the difference between the actual rent paid and the Annual Rent from the Commencement Date of the Extension Term.  Landlord and Tenant shall each be responsible for and shall pay the fee of the Broker appointed by them, and Landlord and Tenant shall share equally in the fee of the third Broker.

 

Except for the Annual Rent as determined above, Tenant’s occupancy of the Premises during the Extension Term will be on the same terms and conditions (including the payment of Additional Rent) as are in effect immediately prior to the expiration of the initial Term of this Lease.

 

Landlord will have no obligation to refurbish or otherwise improve the Premises for the Extension Term.  The Premises will be tendered on the Commencement Date of the Extension Term in “as-is” condition.

 

If the Lease is extended for the Extension Term, Landlord will prepare, and both parties will execute, an amendment to the Lease confirming the extension of the Lease Term and the other provisions applicable thereto (the “Amendment”).

 

3.             RENT.

 

3.1          Tenant agrees to pay to Landlord the Annual Rent in effect from time to time by paying the Monthly Installment of Rent then in effect on or before the first day of each full calendar month during the Term, except that the first full month’s rent shall be paid upon the execution of this Lease.  The Monthly Installment of Rent in effect at any time shall be one-twelfth (1/12) of the Annual Rent in effect at such time.  Rent for any period during the Term which is less than a full month shall be a prorated portion of the Monthly Installment of Rent based upon the number of days in such month.  Said rent shall be paid to Landlord, without deduction or offset and without notice or demand, at the Rent Payment Address, as set forth on the Reference Pages, or to such other person or at such other place as Landlord may from time to time designate in writing.  If an Event of Default occurs more than twice in any calendar year, Landlord may require by written notice to Tenant that all subsequent rent payments be made by an automatic payment from Tenant’s bank account to Landlord’s account, without cost to Landlord.  Tenant must implement such automatic payment system prior to the next scheduled rent payment or within [*] days after Landlord’s notice, whichever is later.  Unless specified in this Lease to the contrary, all amounts and sums payable by Tenant to Landlord pursuant to this Lease shall be deemed additional rent.

 

3.2          Tenant recognizes that late payment of any rent or other sum due under this Lease will result in administrative expense to Landlord, the extent of which additional expense is difficult and impractical to ascertain.  Tenant therefore agrees, that if rent or any other sum is not paid when due and payable pursuant to this Lease, a late charge shall be

 

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imposed in an amount equal to the greater of:  [*] or other payment.  The amount of the late charge to be paid by Tenant shall be reassessed and added to Tenant’s obligation for each successive month until paid.  [*].  The provisions of this Section 3.2 in no way relieve Tenant of the obligation to pay rent or other payments on or before the date on which they are due, nor do the terms of this Section 3.2 in any way affect Landlord’s remedies pursuant to Article 19 of this Lease in the event said rent or other payment is unpaid after date due.

 

4.             RENT ADJUSTMENTS.

 

4.1          For the purpose of this Article 4, the following terms are defined as follows:

 

4.1.1       Lease Year:  Each calendar year which falls within the Term.

 

4.1.2       Expenses:  All costs of operation, maintenance, repair, replacement and management of the Building (including the amount of any credits which Landlord may grant to particular tenants of the Building in lieu of providing any standard services or paying any standard costs described in this Section 4.1.2 for similar tenants), as determined in accordance with generally accepted accounting principles, including the following costs by way of illustration, but not limitation: water and sewer charges; insurance charges of or relating to all insurance policies and endorsements deemed by Landlord to be reasonably necessary or desirable and relating in any manner to the protection, preservation, or operation of the Building or any part thereof; utility costs, including, but not limited to, the cost of heat, light, power, steam, gas; waste disposal; the cost of janitorial services; the cost of security and alarm services (including any central station signaling system); costs of cleaning, repairing, replacing and maintaining the common areas, including parking and landscaping, window cleaning costs; labor costs; costs and expenses of managing the Building including management and/or administrative fees; material costs; equipment costs including the cost of maintenance, repair and service agreements and rental and leasing costs; purchase costs of equipment; current rental and leasing costs of items which would be capital items if purchased; tool costs; licenses, permits and inspection fees; wages and salaries; employee benefits and payroll taxes; accounting and legal fees; any sales, use or service taxes incurred in connection therewith. In addition, Landlord shall be entitled to recover, as additional rent (which, along with any other capital expenditures constituting Expenses, Landlord may either include in Expenses or cause to be billed to Tenant along with Expenses and Taxes but as a separate item), Tenant’s Proportionate Share of: (i) an allocable portion of the cost of capital improvement items which are reasonably calculated to reduce operating expenses; (ii) the cost of fire sprinklers and suppression systems and other life safety systems; and (iii) other capital expenses which are required under any governmental laws, regulations or ordinances which were not applicable to the Building at the time of the Lease; but the costs described in this sentence shall be amortized over the longest, useful life of such expenditures in accordance with such reasonable life and amortization schedules as shall be determined by Landlord  based on available manufacturer’s information, in accordance with generally accepted accounting principles, with interest on the unamortized amount at one percent (1%) in excess of the Wall Street Journal prime lending rate announced from time to time.  Expenses shall not include capital improvements (except for those capital improvements set forth above in subsections (i), (ii) and (iii) of this Section 4.1.2), depreciation or amortization of the Building or equipment in the Building except as provided herein, loan principal payments, costs of alterations of tenants’ premises, leasing commissions, interest expenses on long-term borrowings or advertising costs, or capital improvements (except as specifically listed in subparagraphs (i) through (iii) above of this Section 4.1.2.

 

4.1.3       Taxes:  Real estate taxes and any other taxes, charges and assessments which are levied with respect to the Building or the land appurtenant to the Building, or with respect to any improvements, fixtures and equipment or other property of Landlord, real or personal, located in the Building and used in connection with the operation of the Building and said land, any payments to any ground lessor in reimbursement of tax payments made by such lessor; and all fees, expenses and costs incurred by Landlord in investigating, protesting, contesting or in any way seeking to reduce or avoid increase in any assessments, levies or the tax rate pertaining to any Taxes to be paid by Landlord in any Lease Year.  Taxes shall not include any corporate franchise, or estate, inheritance or net income tax, or tax imposed upon any transfer by Landlord of its interest in this Lease or the Building or any taxes to be paid by Tenant pursuant to Article 28.

 

4.2          Tenant shall pay as additional rent for each Lease Year Tenant’s Proportionate Share of Expenses and Taxes incurred for such Lease Year.

 

4.3          The annual determination of Expenses shall be made by Landlord and shall be binding upon Landlord and Tenant, subject to the provisions of this Section 4.3.  During the Term, Tenant may review, at Tenant’s sole cost and expense, the itemized books and records supporting such determination in an office of Landlord, or Landlord’s agent, during normal business hours, upon giving Landlord five (5) days advance written notice within [*] days after receipt of such determination, but in no event more often than once in any one (1) calendar year period, subject to execution of a confidentiality agreement acceptable to Landlord, and provided that if Tenant utilizes an independent accountant to perform such review it shall be one

 

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of national standing which is reasonably acceptable to Landlord, is not compensated on a contingency basis and is also subject to such confidentiality agreement.  If Tenant fails to object to Landlord’s determination of Expenses within [*] days after receipt, or if any such objection fails to state with specificity the reason for the objection, Tenant shall be deemed to have approved such determination and shall have no further right to object to or contest such determination. In the event that during all or any portion of any Lease Year, the Building is not fully rented and occupied Landlord shall  make an appropriate adjustment in occupancy-related Expenses for such year for the purpose of avoiding distortion of the amount of such Expenses to be attributed to Tenant by reason of variation in total occupancy of the Building, by employing consistent and sound accounting and management principles to determine Expenses that would have been paid or incurred by Landlord had the Building been at least [*] rented and occupied, and the amount so determined shall be deemed to have been Expenses for such Lease Year.

 

4.4          Prior to the actual determination thereof for a Lease Year, Landlord may from time to time, [*] estimate Tenant’s liability for Expenses and/or Taxes under Section 4.2, Article 6 and Article 28 for the Lease Year or portion thereof.  Landlord will give Tenant written notification of the amount of such estimate and Tenant agrees that it will pay, by increase of its Monthly Installments of Rent due in such Lease Year, additional rent in the amount of such estimate.  Any such increased rate of Monthly Installments of Rent pursuant to this Section 4.4 shall remain in effect until further written notification to Tenant pursuant hereto.

 

4.5          When the above mentioned actual determination of Tenant’s liability for Expenses and/or Taxes is made for any Lease Year and when Tenant is so notified in writing, then:

 

4.5.1       If the total additional rent Tenant actually paid pursuant to Section 4.3 on account of Expenses and/or Taxes for the Lease Year is less than Tenant’s liability for Expenses and/or Taxes, then Tenant shall pay such deficiency to Landlord as additional rent in one lump sum within thirty (30) days of receipt of Landlord’s itemized bill therefor; and

 

4.5.2       If the total additional rent Tenant actually paid pursuant to Section 4.3 on account of Expenses and/or Taxes for the Lease Year is more than Tenant’s liability for Expenses and/or Taxes, then Landlord shall credit the difference against the then next due payments to be made by Tenant under this Article 4, or, if the Lease has terminated, refund the difference in cash.

 

4.6          If the Commencement Date is other than January 1 or if the Termination Date is other than December 31, Tenant’s liability for Expenses and Taxes for the Lease Year in which said Date occurs shall be prorated based upon a three hundred sixty-five (365) day year.

 

5.             SECURITY DEPOSIT.

 

5.1          Tenant shall deposit the Security Deposit with Landlord upon the execution of this Lease.  The Security Deposit may be in the form of cash or a Letter of Credit, as provided in Section 5.2 below.  The Security Deposit shall be held by Landlord as security for the faithful performance by Tenant of all the terms, covenants and conditions of this Lease to be kept and performed by Tenant and not as an advance rental deposit or as a measure of Landlord’s damage in case of Tenant’s default.  If Tenant defaults with respect to any provision of this Lease, Landlord may use any part of the Security Deposit for the payment of any rent or any other sum in default, or for the payment of any amount which Landlord may spend or become obligated to spend by reason of Tenant’s default, or to compensate Landlord for any other loss or damage which Landlord may suffer by reason of Tenant’s default.  If any portion is so used, Tenant shall within five (5) days after written demand therefor, deposit with Landlord an amount sufficient to restore the Security Deposit to its original amount and Tenant’s failure to do so shall be a material breach of this Lease.  Except to such extent, if any, as shall be required by law, Landlord shall not be required to keep the Security Deposit separate from its general funds, and Tenant shall not be entitled to interest on such deposit.  If Tenant shall fully and faithfully perform every provision of this Lease to be performed by it, the Security Deposit or any balance thereof shall be returned to Tenant at such time after termination of this Lease when Landlord shall have determined that all of Tenant’s obligations under this Lease have been fulfilled; however, in no event more than sixty (60) days after termination of the Lease.

 

5.2          The Security Deposit may be in the form of an Irrevocable Standby Letter of Credit in favor of Landlord (the “Letter of Credit”).  Under any circumstance under which Landlord is entitled the use of all or a part of the Security Deposit, then, Landlord, in addition to all other rights and remedies provided under the Lease, shall have the right to draw down all or a portion of the full balance of the Letter of Credit and retain the proceeds.  The following terms and conditions shall govern the Letter of Credit:

 

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5.2.1       The Letter of Credit shall be returned to Tenant when Tenant is entitled to return of the Security Deposit.

 

5.2.2       The Letter of Credit shall be in favor of Landlord, shall be issued by a commercial bank reasonably acceptable to Landlord, shall comply with all of the terms and conditions of this Section 5 and shall otherwise be in form reasonably acceptable to Landlord.  If, at any time while the Letter of Credit is outstanding, (i) the issuing bank is declared insolvent or taken into receivership by the Federal Deposit Insurance Corporation or any other governmental agency, or is closed for any reason, or (ii) Landlord reasonably believes that the issuing bank may be or become insolvent or otherwise unable to meet its obligations, then, not later than thirty (30) days after written notice from Landlord, Tenant shall cause the existing Letter of Credit to be replaced by a new Letter of Credit issued by another commercial bank reasonably acceptable to Landlord, with such new Letter of Credit to comply with all of the terms and conditions of this Section 5.  If Tenant fails to deliver an acceptable replacement Letter of Credit within such 30 day period, Landlord shall have the right to present the existing Letter of Credit to the issuing bank for payment, and the entire sum so obtained shall be paid to Landlord, to be held by Landlord until Tenant would otherwise be entitled to the return of the Letter of Credit, and to be retained by Landlord if a default occurs.

 

5.2.3       The initial Letter of Credit shall have an expiration date not earlier than fifteen (15) months after the date of issuance.  A draft of the form of Letter of Credit must be submitted to Landlord for its approval prior to issuance.

 

5.2.4       The Letter of Credit or any replacement Letter of Credit shall be irrevocable for the term thereof and shall automatically renew on a year to year basis until a period ending not earlier than three (3) months after the Termination Date (“End Date”) without any action whatsoever on the part of Landlord; provided that the issuing bank shall have the right not to renew the Letter of Credit by giving written notice to Landlord not less than sixty (60) days prior to the expiration of the then current term of the Letter of Credit that it does not intend to renew the Letter of Credit..  Tenant understands that the election by the issuing bank not to renew the Letter of Credit shall not, in any event, diminish the obligation of Tenant to maintain such an irrevocable Letter of Credit in favor of Landlord through such date.

 

5.2.5       Landlord, or its then managing agent, shall have the right from time to time to make one or more draws on the Letter of Credit at any time that Landlord has the right to use all or a part of the Security Deposit pursuant to this Section 5, and the proceeds may be applied as permitted under this Section 5.  The Letter of Credit must state that it can be presented for payment at the office of the issuer or an approved correspondent in the metropolitan area in which the Building is located.  Funds may be drawn down on the Letter of Credit upon presentation to the issuing or corresponding bank of Landlord’s (or Landlord’s then managing agent’s) certificate stating as follows:

 

“Beneficiary is entitled to draw on this credit pursuant to that certain Lease dated for reference                 between                      , a              corporation, as Landlord and                     , a      corporation, as Tenant, as amended from time to time, or under that certain Lease dated for reference       between                             , a                 corporation, as Landlord, and                        , a                    corporation, as Tenant, as amended from time to time.”

 

It is understood that if Landlord or its managing agent be a corporation, partnership or other entity, then such statement shall be signed by an officer (if a corporation), a general partner (if a partnership), or any authorized party (if another entity).

 

5.2.6       Tenant acknowledges and agrees (and the Letter of Credit shall so state) that the Letter of Credit shall be honored by the issuing bank without inquiry as to the truth of the statements set forth in such draw request and regardless of whether the Tenant disputes the content of such statement.

 

5.2.7       In the event of a transfer of Landlord’s interest in the Premises, Landlord shall have the right to transfer the Letter of Credit to the transferee and Tenant shall take whatever action and pay any bank fees necessary to effectuate such transfer and thereupon the Landlord shall, without any further agreement between the parties, be released by Tenant from all liability therefore, and it is agreed that the provisions hereof shall apply to every transfer or assignment of said Letter of Credit to a new landlord.

 

5.2.8       Without limiting the generality of the foregoing, if the Letter of Credit expires earlier than the End Date, or the issuing bank notifies Landlord that it will not renew the Letter of Credit, Landlord shall accept a renewal thereof or substitute letter of credit (such renewal or substitute Letter of Credit to be in effect not later than thirty (30) days prior to the expiration of the expiring Letter of Credit), irrevocable and automatically renewable as above provided to the End Date upon the same terms as the expiring Letter of Credit or upon such other terms as may be acceptable to Landlord.

 

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  However, if (i) the Letter of Credit is not timely renewed, or (ii) a substitute Letter of Credit, complying with all of the terms and conditions of this Section is not timely received, then Landlord may present the expiring Letter of Credit to the issuing bank, and the entire sum so obtained shall be paid to Landlord, to be held by Landlord in accordance with Article 5 of the Lease.  Notwithstanding the foregoing, Landlord shall be entitled to receive from Tenant a fee in an amount not to exceed $500.00 for attorneys’ fees incurred in connection with the review of any proposed substitute Letter of Credit pursuant to this subparagraph.

 

5.3          Upon the Commencement Date for both Suite 100 and Suite 200, the required Security Deposit under this Lease shall be reduced to $47,710.67.

 

6.             ALTERATIONS.

 

6.1          Except for those, if any, specifically provided for in Exhibit B to this Lease, Tenant shall not make or suffer to be made any alterations, additions, or improvements, including, but not limited to, the attachment of any fixtures or equipment in, on, or to the Premises or any part thereof or the making of any improvements as required by Article 7, without the prior written consent of Landlord.  When applying for such consent, Tenant shall, if requested by Landlord, furnish complete plans and specifications for such alterations, additions and improvements. Landlord’s consent shall not be unreasonably withheld with respect to alterations which (i) are not structural in nature, (ii) are not visible from the exterior of the Building, (iii) do not affect or require modification of the Building’s electrical, mechanical, plumbing or other systems (exclusive of the HVAC systems), and (iv) in aggregate do not cost more than [*] per rentable square foot of that portion of the Premises affected by the alterations in question.

 

6.2          In the event Landlord consents to the making of any such alteration, addition or improvement by Tenant, the same shall be made at [*] by using either Landlord’s contractor or a contractor reasonably approved by Landlord, in either event at Tenant’s sole cost and expense.  If Tenant shall employ any contractor other than Landlord’s contractor and such other contractor or any subcontractor of such other contractor shall employ any non-union labor or supplier, Tenant shall be responsible for and hold Landlord harmless from any and all delays, damages and extra costs suffered by Landlord as a result of any dispute with any labor unions concerning the wage, hours, terms or conditions of the employment of any such labor.  With respect to alterations to be made by Tenant to the Premises, Landlord may charge Tenant third-party costs actually incurred by Landlord in connection with the proposed work and the design thereof, with all such amounts being due [*] after Landlord’s demand.  In the event that, at Tenant’s request, Landlord serves as the construction manager for any alterations to the Premises, then Landlord may charge Tenant a construction management fee (“CM Fee”) not to exceed [*] of the cost of such work, to cover its overhead as it relates to such proposed work with such CM Fee payable by Tenant to Landlord within [*] days after billing of same.  No CM Fee shall be assessed by Landlord on cosmetic alterations, such as paint and carpet.

 

6.3          All alterations, additions or improvements proposed by Tenant shall be constructed in accordance with all government laws, ordinances, rules and regulations, using Building standard materials where applicable, and Tenant shall, prior to construction, provide the additional insurance required under Article 11 in such case, and also all such assurances to Landlord as Landlord shall reasonably require to assure payment of the costs thereof, including but not limited to, notices of non-responsibility, waivers of lien, surety company performance bonds and funded construction escrows and to protect Landlord and the Building and appurtenant land against any loss from any mechanic’s, materialmen’s or other liens.  Tenant shall pay in addition to any sums due pursuant to Article 4, any increase in real estate taxes attributable to any such alteration, addition or improvement for so long, during the Term, as such increase is ascertainable; at Landlord’s election said sums shall be paid in the same way as sums due under Article 4.

 

7.             REPAIR.

 

7.1          Landlord shall have no obligation to alter, remodel, improve, repair, decorate or paint the Premises, except as specified in Exhibit B if attached to this Lease and except that Landlord shall repair and maintain the structural portions of the roof, foundation and walls of the Building.  By taking possession of the Premises, Tenant accepts them as being in good order, condition and repair and in the condition in which Landlord is obligated to deliver them.  It is hereby understood and agreed that no representations respecting the condition of the Premises or the Building have been made by Landlord to Tenant, except as specifically set forth in this Lease.  Landlord shall not be liable for any failure to make any repairs or to perform any maintenance unless 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.

 

7.2          Tenant shall at its own cost and expense keep and maintain all parts of the Premises and improvements as are within the exclusive control of Tenant in good condition, promptly making all necessary repairs and replacements, whether ordinary or extraordinary, with materials and workmanship of the same character, kind and quality as the original

 

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 (including, but not limited to, repair and replacement of all fixtures installed by Tenant, water heaters serving the Premises, windows, glass and plate glass, doors, skylights, interior walls and finish work, floors and floor coverings, heating and air conditioning systems serving the Premises (except as provided in Section 7.4(b) below), electrical systems and fixtures, sprinkler systems, dock boards, truck doors, dock bumpers, plumbing work and fixtures, and performance of regular removal of trash and debris). Tenant as part of its obligations hereunder shall keep the Premises in a clean and sanitary condition.  Tenant will, as far as possible keep all such parts of the Premises from deterioration due to ordinary wear and from falling temporarily out of repair, and upon termination of this Lease in any way Tenant will yield up the Premises to Landlord in good condition and repair, loss by fire or other casualty excepted (but not excepting any damage to glass).  Tenant shall, at its own cost and expense, repair any damage to the Premises or the Building resulting from and/or caused in whole or in part by the negligence or misconduct of Tenant, its agents, employees, contractors, invitees, or any other person entering upon the Premises as a result of Tenant’s business activities or caused by Tenant’s default hereunder.

 

7.3          Except as provided in Article 22, there shall be no abatement of rent and no liability of Landlord by reason of any injury to or interference with Tenant’s business arising from the making of any repairs, alterations or improvements in or to any portion of the Building or the Premises or to fixtures, appurtenances and equipment in the Building, provided that Landlord shall comply with all terms of Section 17.1 of this Lease when entering the Premises to make any repairs, replacements or improvements to the Premises or Building.  Except to the extent, if any, prohibited by law, Tenant waives the right to make repairs at Landlord’s expense under any law, statute or ordinance now or hereafter in effect.

 

7.4          (a)           Tenant shall, at its own cost and expense, enter into a regularly scheduled preventive maintenance/service contract with a maintenance contractor approved by Landlord for servicing all heating and air conditioning systems and equipment serving the Premises (and [*] a copy thereof shall be furnished to Landlord).  The service contract must include all services suggested by the equipment manufacturer in the operation/maintenance manual and must become effective within thirty (30) days of the date Tenant takes possession of the Premises. Should Tenant fail to do so, Landlord may, upon notice to Tenant, enter into such a maintenance/ service contract on behalf of Tenant or perform the work and in either case, charge Tenant the cost thereof along with a reasonable amount for Landlord’s overhead.

 

(b)           Landlord shall make all repairs and replacements, not otherwise covered by Tenant’s maintenance/service contract,  to those HVAC units serving the Premises which are  listed on Exhibit E attached hereto and any replacements of such HVAC units listed in Exhibit E attached hereto, at Landlord’s sole cost and expense when in the opinion of Landlord’s independent licensed HVAC contractor, reasonably exercised, such repair or replacement is necessary, so long as Tenant has continuously complied with Section 7.4(a) of this Lease, and further, that the need for such repair or replacement does not arise from Tenant’s negligence, abuse or misuse.  Tenant shall be solely responsible for the repair and replacement of any HVAC units serving the Premises which are not (i) listed on Exhibit E attached hereto, or (ii) replacements of the HVAC units listed on Exhibit E attached hereto.

 

8.             LIENS.  Tenant shall keep the Premises, the Building and appurtenant land and Tenant’s leasehold interest in the Premises free from any liens arising out of any services, work or materials performed, furnished, or contracted for by Tenant, or obligations incurred by Tenant.  In the event that Tenant fails, within ten (10) days following the imposition of any such lien, to either cause the same to be released of record or provide Landlord with insurance against the same issued by a major title insurance company or such other protection against the same as Landlord shall accept (such failure to constitute an Event of Default), Landlord shall have the right to cause the same to be released by such means as it shall deem proper, including payment of the claim giving rise to such lien.  All such sums paid by Landlord and all expenses incurred by it in connection therewith shall be payable to it by Tenant within five (5) days of Landlord’s demand.

 

9.             ASSIGNMENT AND SUBLETTING.

 

9.1          Except as otherwise provided in this Section 9, Tenant shall not have the right to assign or pledge this Lease or to sublet the whole or any part of the Premises whether voluntarily or by operation of law, or permit the use or occupancy of the Premises by anyone other than Tenant, and shall not make, suffer or permit such assignment, subleasing or occupancy without the prior written consent of Landlord, such consent not to be unreasonably withheld, conditioned or delayed, and said restrictions shall be binding upon any and all assignees of the Lease and subtenants of the Premises.  In the event Tenant desires to sublet, or permit such occupancy of, the Premises, or any portion thereof, or assign this Lease, Tenant shall give written notice thereof to Landlord at least [*] days prior to the proposed commencement date of such subletting or assignment, which notice shall set forth the name of the proposed subtenant or assignee, the relevant terms of any sublease or assignment and copies of financial reports and other relevant financial information of the proposed subtenant or assignee.

 

9.2          Notwithstanding any assignment or subletting, permitted or otherwise, Tenant shall at all times remain directly, primarily and fully responsible and liable for the payment of the rent specified in this Lease and for compliance with

 

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 all of its other obligations under the terms, provisions and covenants of this Lease.  Upon the occurrence of an Event of Default, if the Premises or any part of them are then assigned or sublet, Landlord, in addition to any other remedies provided in this Lease or provided by law, may, at its option, collect directly from such assignee or subtenant all rents due and becoming due to Tenant under such assignment or sublease and apply such rent against any sums due to Landlord from Tenant under this Lease, and no such collection shall be construed to constitute a novation or release of Tenant from the further performance of Tenant’s obligations under this Lease.

 

9.3          In the event that Tenant sells, sublets, assigns or transfers this Lease other than as part of an Affiliated Transaction (as defined in Section 9.7 below), Tenant shall pay to Landlord as additional rent an amount equal to [*] of any Increased Rent (as defined below), less the Costs Component (as defined below), when and as such Increased Rent is received by Tenant.  As used in this Section, “Increased Rent” shall mean the excess of (i) all rent and other consideration which Tenant is entitled to receive by reason of any sale, sublease, assignment or other transfer of this Lease, over (ii) the rent otherwise payable by Tenant under this Lease at such time.  For purposes of the foregoing, any consideration received by Tenant in form other than cash shall be valued at its fair market value as determined by Landlord in good faith.  The “Costs Component” is that amount which, if paid monthly, would fully amortize on a straight-line basis, over the entire period for which Tenant is to receive Increased Rent, the reasonable costs incurred by Tenant for leasing commissions and tenant improvements in connection with such sublease, assignment or other transfer.

 

9.4          Notwithstanding any other provision hereof, it shall be considered reasonable for Landlord to withhold its consent to any assignment of this Lease or sublease of any portion of the Premises if at the time of either Tenant’s notice of the proposed assignment or sublease or the proposed commencement date thereof, there shall exist any uncured default of Tenant or matter which will become a default of Tenant with passage of time unless cured, or if the proposed assignee or sublessee is an entity:  (a) with which Landlord is already in negotiation; (b) is already an occupant of the Building unless Landlord is unable to provide the amount of space required by such occupant; (c) is a governmental agency; (d) is incompatible with the character of occupancy of the  Building; (e) would subject the Premises to a use which would (i) violate any exclusive right granted to another tenant of the Building; (ii) require any addition to or modification of the Premises or the Building in order to comply with building code or other governmental requirements; or, (iii) involve a violation of Section 1.2.  Tenant expressly agrees that for the purposes of any statutory or other requirement of reasonableness on the part of Landlord, Landlord’s refusal to consent to any assignment or sublease for any of the reasons described in this Section 9.4 (a) through (e) shall be conclusively deemed to be reasonable.

 

9.5          Upon any request to assign or sublet, Tenant will pay to Landlord the Assignment/Subletting Fee plus, on demand, a sum equal to all of Landlord’s reasonable incurred costs, including reasonable attorney’s fees, incurred in investigating and considering any proposed or purported assignment or pledge of this Lease or sublease of any of the Premises, regardless of whether Landlord shall consent to, refuse consent, or determine that Landlord’s consent is not required for, such assignment, pledge or sublease.  Any purported sale, assignment, mortgage, transfer of this Lease or subletting which does not comply with the provisions of this Article 9 shall be void.

 

9.6          Except as expressly provided below in Section 9.7, if Tenant is a corporation, limited liability company, partnership or trust, any transfer or transfers of or change or changes within any twelve (12) month period in the number of the outstanding voting shares of the corporation or limited liability company, the general partnership interests in the partnership or the identity of the persons or entities controlling the activities of such partnership or trust resulting in the persons or entities owning or controlling a majority of such shares, partnership interests or activities of such partnership or trust at the beginning of such period no longer having such ownership or control shall be regarded as equivalent to an assignment of this Lease to the persons or entities acquiring such ownership or control and shall be subject to all the provisions of this Article 9 to the same extent and for all intents and purposes as though such an assignment.

 

9.7          Notwithstanding the terms of Section 9.6 or any other provision of this Section 9, Tenant, without Landlord’s prior written consent thereto (but upon notice to Landlord, and subject to the further terms and conditions hereinafter set forth), shall have the right to assign this Lease or sublease the Premises to a subsidiary or affiliate corporation or subsidiary or affiliate business entity (an “Affiliated Transaction”), provided that:  (i) as to an assignment of this Lease, the successor entity (“Successor”) shall have effectively assumed all of Tenant’s obligations and liabilities, including those under this Lease, by operation of law, or by appropriate instrument of assignment or sublease; (ii) Tenant originally named herein shall remain liable and responsible for the observance and performance of all the terms and conditions of this Lease for the balance of the Term; (iii) Successor shall use the Premises solely for the Uses permitted hereunder; (iv) Successor shall have a net worth which is equal [*]; and (v) a complete and accurate copy of all instruments of assignment/sublease is to be delivered to Landlord not later than thirty (30) days after the effective date thereof.

 

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10.                               INDEMNIFICATION.  None of the Landlord Entities shall be liable and Tenant hereby waives all claims against them for any damage to any property or any injury to any person in or about the Premises or the Building by or from any cause whatsoever (including without limiting the foregoing, rain or water leakage of any character from the roof, windows, walls, basement, pipes, plumbing works or appliances, the Building not being in good condition or repair, gas, fire, oil, electricity or theft), except to the extent caused by or arising from the gross negligence or willful misconduct of Landlord or its agents, employees or contractors.  Tenant shall protect, indemnify and hold the Landlord Entities harmless from and against any and all loss, claims, liability or costs (including court costs and reasonable attorney’s fees) incurred by reason of (a) any damage to any property or any injury (including but not limited to death) to any person occurring in, on or about the Premises or the Building to the extent that such injury or damage shall be caused by or arise from any actual or alleged act, neglect, fault, or omission by or of Tenant or any Tenant Entity to meet any standards imposed by any duty with respect to the injury or damage; (b) the conduct or management of any work or thing whatsoever done by the Tenant in or about the Premises or from transactions of the Tenant concerning the Premises; (c) Tenant’s failure to comply with any and all governmental laws, ordinances and regulations applicable to the condition or use of the Premises or its occupancy; or (d) any breach or default on the part of Tenant in the performance of any covenant or agreement on the part of the Tenant to be performed pursuant to this Lease.  The provisions of this Article shall survive the termination of this Lease with respect to any claims or liability accruing prior to such termination.

 

Landlord shall protect, indemnify and hold Tenant and the Tenant Entities harmless from and against any and all loss, claims, liability or costs (including court costs and reasonable attorney’s fees) incurred by reason of any damage to any property or any injury (including, but not limited to, death) to any person occurring in, on or about the Premises or Building to the extent that such injury or damage shall be caused by or arise from Landlord’s gross negligence or willful misconduct.  The provisions of this Article shall survive the termination of this Lease with respect to any claims or liability accruing prior to such termination.

 

11.                               INSURANCE.

 

11.1                        Tenant shall keep in force throughout the Term: (a) a Commercial General Liability insurance policy or policies to protect the Landlord Entities against any liability to the public or to any invitee of Tenant or a Landlord Entity incidental to the use of or resulting from any accident occurring in or upon the Premises with a limit of not less than $1,000,000 per occurrence and not less than $2,000,000 in the annual aggregate, or such larger amount as Landlord may prudently require from time to time, covering bodily injury and property damage liability and $1,000,000 products/completed operations aggregate; (b) Business Auto Liability covering owned, non-owned and hired vehicles with a limit of not less than $1,000,000 per accident; (c) Worker’s Compensation Laws with limits as required by statute and Employers Liability with limits of $500,000 each accident, $500,000 disease policy limit, $500,000 disease—each employee; (d) All Risk or Special Form coverage protecting Tenant against loss of or damage to Tenant’s alterations, additions, improvements, carpeting, floor coverings, panelings, decorations, fixtures, inventory and other business personal property situated in or about the Premises to the full replacement value of the property so insured; and, (e) Business Interruption Insurance with limit of liability representing loss of at least approximately six (6) months of income.

 

11.2                        The aforesaid policies shall (a) be provided at Tenant’s expense; (b) name the Landlord Entities as additional insureds (General Liability) and loss payee (Property—Special Form); (c) be issued by an insurance company with a minimum Best’s rating of “A-:VII” during the Term; and (d) provide that said insurance shall not be canceled unless thirty (30) days prior written notice (ten days for non-payment of premium) shall have been given to Landlord; a certificate of Liability insurance on ACORD Form 25 and a certificate of Property insurance on ACORD Form 27 shall be delivered to Landlord by Tenant upon the Commencement Date and at least thirty (30) days prior to each renewal of said insurance.

 

11.3                        Whenever Tenant shall undertake any alterations, additions or improvements in, to or about the Premises (“Work”) the aforesaid insurance protection must extend to and include injuries to persons and damage to property arising in connection with such Work, without limitation including liability under any applicable structural work act, and such other insurance as Landlord shall require; and the policies of or certificates evidencing such insurance must be delivered to Landlord prior to the commencement of any such Work.

 

12.                               WAIVER OF SUBROGATION.  [*], Tenant and Landlord hereby mutually waive their respective rights of recovery against each other for any loss insured by fire, extended coverage, All Risks or other insurance now or hereafter existing for the benefit of the respective party but only to the extent of the net insurance proceeds payable under such policies.  Each party shall obtain any special endorsements required by their insurer to evidence compliance with the aforementioned waiver.

 

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13.                               SERVICES AND UTILITIES.  Tenant shall pay for all water, gas, heat, light, power, telephone, sewer, sprinkler system charges and other utilities and services used on or from the Premises, together with any taxes, penalties, and surcharges or the like pertaining thereto and any maintenance charges for utilities.  Tenant shall furnish all electric light bulbs, tubes and ballasts, battery packs for emergency lighting and fire extinguishers.  If any such services are not separately metered to Tenant, Tenant shall pay such proportion of all charges jointly metered with other premises as determined by Landlord to be reasonable.  Any such charges paid by Landlord and assessed against Tenant shall be immediately payable to Landlord on demand and shall be additional rent hereunder.  Tenant will not, without the written consent of Landlord, contract with a utility provider to service the Premises with any utility, including, but not limited to, telecommunications, electricity, water, sewer or gas, which is not previously providing such service to other tenants in the Building.  Landlord shall in no event be liable for any interruption or failure of utility services on or to the Premises.

 

14.                               HOLDING OVER.  Tenant shall pay Landlord for each day Tenant retains possession of the Premises or part of them after termination of this Lease by lapse of time or otherwise at the rate (“Holdover Rate”) which shall be the Applicable Percentage (defined below) of the amount of the Annual Rent for the last period prior to the date of such termination plus all Rent Adjustments under Article 4, prorated on a daily basis, and also pay all damages sustained by Landlord by reason of such retention.  If Landlord gives notice to Tenant of Landlord’s election to such effect, such holding over shall constitute renewal of this Lease for a period from month to month at the Holdover Rate, but if the Landlord does not so elect, no such renewal shall result notwithstanding acceptance by Landlord of any sums due hereunder after such termination; and instead, a tenancy at sufferance at the Holdover Rate shall be deemed to have been created.  In any event, no provision of this Article 14 shall be deemed to waive Landlord’s right of reentry or any other right under this Lease or at law.

 

The “Applicable Percentage” shall be [*].

 

15.                               SUBORDINATION.  Without the necessity of any additional document being executed by Tenant for the purpose of effecting a subordination, this Lease shall be subject and subordinate at all times to ground or underlying leases and to the lien of any mortgages or deeds of trust now or hereafter placed on, against or affecting the Building, Landlord’s interest or estate in the Building, or any ground or underlying lease; provided, however, that if the lessor, mortgagee, trustee, or holder of any such mortgage or deed of trust elects to have Tenant’s interest in this Lease be superior to any such instrument, then, by notice to Tenant, this Lease shall be deemed superior, whether this Lease was executed before or after said instrument.  Notwithstanding the foregoing, Tenant covenants and agrees to execute and deliver within ten (10) days of Landlord’s request such further instruments evidencing such subordination or superiority of this Lease as may be required by Landlord [*].

 

Upon Landlord’s receipt of Tenant’s written request, Landlord shall use commercially reasonable efforts to obtain a customary subordination, attornment and non-disturbance agreement, that recognizes this Lease (“SNDA”) from the holder of any mortgage or deed of trust encumbering the Building, provided that (a) Tenant shall pay all fees, charges and legal fees of the lender [*] in connection with the SNDA, and (b) Landlord shall not be liable to Tenant in any manner for its failure to obtain such SNDA.

 

Landlord hereby represents and warrants to Tenant that, as of the Lease Reference Date, the Premises are not subject to any ground lease or mortgage.

 

The subordination and attornment provisions set forth above in this Section 15 are subject, however, to the express condition that so long as Tenant is not in default in its obligations hereunder beyond applicable grace periods, (i) Tenant will not be made a party in any action or proceeding by any Lender (as defined below) or senior party in interest to recover possession of the Building and/or the Premises or to the foreclosure of any mortgage, (ii) Tenant’s possession of the Premises shall not be disturbed, and (iii) this Lease shall not be cancelled or terminated and shall continue in full force and effect upon any foreclosure under a Mortgage or recovery of possession (a “Foreclosure”) upon all of the terms and conditions set forth in this Lease, provided that following a Foreclosure, Lender shall not be (A) liable for any act or omission of Landlord, except for defaults relating to the physical condition of the Premises that are of an ongoing or continuing nature of which Lender has received written notice and has failed to cure within the applicable cure period, (B) liable to refund to Tenant any security deposit which Tenant shall have paid to Landlord, unless such security deposit has been delivered to Lender; or (C) bound by any rent or additional rent which Tenant might have paid for more than the current month to Landlord; or (D) bound by any amendment or modification of the Lease made without Lender’s prior written consent; or (E) subject to any rent offsets or other offsets or defenses which Tenant might have against the Landlord; or (F) liable for consequential damages.  The term “mortgage” whenever used in this Lease shall be deemed to include deeds of trust, security assignments and any other encumbrances, and any reference to the “holder” of a mortgage or a “Lender” shall be deemed to mean and include the beneficiary under a mortgage or deed of trust and any successor owner of the Building pursuant to a Foreclosure.

 

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16.                               RULES AND REGULATIONS.  Tenant shall faithfully observe and comply with all the rules and regulations as set forth in Exhibit D to this Lease and all reasonable and non-discriminatory modifications of and additions to them from time to time put into effect by Landlord.  Landlord shall not be responsible to Tenant for the non-performance by any other tenant or occupant of the Building of any such rules and regulations, but shall enforce the rules and regulations in a non-discriminatory manner.  [*]

 

17.                               REENTRY BY LANDLORD.

 

17.1                        Landlord reserves and shall at all times have the right, upon 24 hours’ notice and with an escort of Tenant (except in the case of an emergency, in which event no such prior notice or escort shall be required) to re-enter the Premises to inspect the same, to show said Premises to prospective purchasers, mortgagees or, within the last 6 months of the Term, tenants, and with advance notice and coordination of Tenant to alter, improve or repair the Premises and any portion of the Building, without abatement of rent, and may for that purpose erect, use and maintain scaffolding, pipes, conduits and other necessary structures and open any wall, ceiling or floor in and through the Building and Premises where reasonably required by the character of the work to be performed, provided entrance to the Premises shall not be blocked thereby, and further provided that the business of Tenant shall not be interfered with or interrupted unreasonably.  Landlord shall follow all reasonable instructions and guidelines of Tenant in connection with any such re-entry, including without limitation, Tenant’s guidelines and rules with respect to accessing cleanrooms, laboratory space, manufacturing space and other similar areas.  Landlord shall have the right at any time to change the arrangement and/or locations of entrances, or passageways, doors and doorways, and corridors, windows, elevators, stairs, toilets or other public parts of the Building and to change the name, number or designation by which the Building is commonly known.  In the event that Landlord damages any portion of any wall or wall covering, ceiling, or floor or floor covering within the Premises, Landlord shall repair or replace the damaged portion to match the original as nearly as commercially reasonable but shall not be required to repair or replace more than the portion actually damaged. Tenant hereby waives any claim for damages for any inconvenience to or interference with Tenant’s business, any loss of occupancy or quiet enjoyment of the Premises, and any other loss occasioned by any action of Landlord authorized by this Article 17.

 

17.2                        For each of the aforesaid purposes, Landlord shall at all times have and retain a key with which to unlock all of the doors in the Premises, excluding Tenant’s vaults and safes or special security areas (designated in advance), and Landlord shall have the right to use any and all means which Landlord may deem proper to open said doors in an emergency to obtain entry to any portion of the Premises.  As to any portion to which access cannot be had by means of a key or keys in Landlord’s possession, Landlord is authorized in the event of an emergency to gain access by such means as Landlord shall elect and the cost of repairing any damage occurring in doing so shall be borne by Tenant and paid to Landlord within five (5) days of Landlord’s demand.

 

18.                               DEFAULT.

 

18.1                        Except as otherwise provided in Article 20, the following events shall be deemed to be Events of Default under this Lease:

 

18.1.1              Tenant shall fail to pay when due any sum of money becoming due to be paid to Landlord under this Lease, whether such sum be any installment of the rent reserved by this Lease, any other amount treated as additional rent under this Lease, or any other payment or reimbursement to Landlord required by this Lease, whether or not treated as additional rent under this Lease, and such failure shall continue for a period of five (5) business days after written notice that such payment was not made when due.

 

18.1.2              Tenant shall fail to comply with any term, provision or covenant of this Lease which is not provided for in another Section of this Article and shall not cure such failure within [*] days (forthwith, if the failure involves a hazardous condition) after written notice of such failure to Tenant provided, however, that such failure shall not be an event of default if such failure could not reasonably be cured during such [*] day period, Tenant has commenced the cure within such [*] day period and thereafter is diligently pursuing such cure to completion, but the total aggregate cure period shall not exceed ninety (90) days.

 

18.1.3              Unless agreed to by Landlord, Tenant shall fail to vacate the Premises immediately upon termination of this Lease, by lapse of time or otherwise, or upon termination of Tenant’s right to possession only.

 

18.1.4              Tenant shall become insolvent, admit in writing its inability to pay its debts generally as they become due, file a petition in bankruptcy or a petition to take advantage of any insolvency statute, make an assignment for the benefit of creditors, make a transfer in fraud of creditors, apply for or consent to the appointment of a receiver of itself or

 

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of the whole or any substantial part of its property, or file a petition or answer seeking reorganization or arrangement under the federal bankruptcy laws, as now in effect or hereafter amended, or any other applicable law or statute of the United States or any state thereof.

 

18.1.5              A court of competent jurisdiction shall enter an order, judgment or decree adjudicating Tenant bankrupt, or appointing a receiver of Tenant, or of the whole or any substantial part of its property, without the consent of Tenant, or approving a petition filed against Tenant seeking reorganization or arrangement of Tenant under the bankruptcy laws of the United States, as now in effect or hereafter amended, or any state thereof, and such order, judgment or decree shall not be vacated or set aside or stayed within sixty (60) days from the date of entry thereof.

 

18.1.6.                 If prior to the Commencement Date, Tenant defaults under its sublease or other occupancy agreement pursuant to which Tenant occupies the Premises (the “Sublease”), and such default continues past all applicable notice or grace periods, or if Tenant’s occupancy of the Premises is terminated under such Sublease, or Tenant abandons the Premises.

 

19.                               REMEDIES.

 

19.1                        Except as otherwise provided in Article 20, upon the occurrence of any of the Events of Default described or referred to in Article 18, Landlord shall have the option to pursue any one or more of the following remedies without any notice or demand whatsoever, concurrently or consecutively and not alternatively:

 

19.1.1              Landlord may, at its election, terminate this Lease or terminate Tenant’s right to possession only, without terminating the Lease.

 

19.1.2              Upon any termination of this Lease, whether by lapse of time or otherwise, or upon any termination of Tenant’s right to possession without termination of the Lease, Tenant shall surrender possession and vacate the Premises immediately, and deliver possession thereof to Landlord, and Tenant hereby grants to Landlord full and free license to enter into and upon the Premises in such event and to repossess Landlord of the Premises as of Landlord’s former estate and to expel or remove Tenant and any others who may be occupying or be within the Premises and to remove Tenant’s signs and other evidence of tenancy and all other property of Tenant therefrom without being deemed in any manner guilty of trespass, eviction or forcible entry or detainer, and without incurring any liability for any damage resulting therefrom, Tenant waiving any right to claim damages for such re-entry and expulsion, and without relinquishing Landlord’s right to rent or any other right given to Landlord under this Lease or by operation of law.

 

19.1.3              Upon any termination of this Lease, whether by lapse of time or otherwise, Landlord shall be entitled to recover as damages, all rent, including any amounts treated as additional rent under this Lease, and other sums due and payable by Tenant on the date of termination, plus as liquidated damages and not as a penalty, an amount equal to the sum of:  (a) an amount equal to the then present value of the rent reserved in this Lease for the residue of the stated Term of this Lease including any amounts treated as additional rent under this Lease and all other sums provided in this Lease to be paid by Tenant, minus the fair rental value of the Premises for such residue; (b) the value of the time and expense necessary to obtain a replacement tenant or tenants, and the estimated expenses described in Section 19.1.4 relating to recovery of the Premises, preparation for reletting and for reletting itself; and (c) the cost of performing any other covenants which would have otherwise been performed by Tenant.

 

19.1.4              Upon any termination of Tenant’s right to possession only without termination of the Lease:

 

19.1.4.1    Neither such termination of Tenant’s right to possession nor Landlord’s taking and holding possession thereof as provided in Section 19.1.2 shall terminate the Lease or release Tenant, in whole or in part, from any obligation, including Tenant’s obligation to pay the rent, including any amounts treated as additional rent, under this Lease for the full Term, and if Landlord so elects Tenant shall continue to pay to Landlord the entire amount of the rent as and when it becomes due, including any amounts treated as additional rent under this Lease, for the remainder of the Term plus any other sums provided in this Lease to be paid by Tenant for the remainder of the Term.

 

19.1.4.2    Landlord shall use commercially reasonable efforts to relet the Premises or portions thereof to the extent required by applicable law.  Landlord and Tenant agree that nevertheless Landlord shall at most be required to use only the same efforts Landlord then uses to lease premises in the Building generally and that in any case that Landlord shall not be required to give any preference or priority to the showing or leasing of the Premises or portions thereof over any other space that Landlord may be leasing or have available and may place a suitable prospective tenant in any such other space regardless of when such other space becomes available and that Landlord shall have the right to relet the

 

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Premises for a greater or lesser term than that remaining under this Lease, the right to relet only a portion of the Premises, or a portion of the Premises or the entire Premises as a part of a larger area, and the right to change the character or use of the Premises.  In connection with or in preparation for any reletting, Landlord may, but shall not be required to, make repairs, alterations and additions in or to the Premises and redecorate the same to the extent Landlord reasonably deems necessary or desirable, and Tenant shall pay the cost thereof, together with Landlord’s reasonable expenses of reletting, including, without limitation, any commission incurred by Landlord, within five (5) days of Landlord’s demand.  Landlord shall not be required to observe any instruction given by Tenant about any reletting or accept any tenant offered by Tenant unless such offered tenant has a credit-worthiness acceptable to Landlord and leases the entire Premises upon terms and conditions including a rate of rent (after giving effect to all expenditures by Landlord for tenant improvements, broker’s commissions and other leasing costs) all no less favorable to Landlord than as called for in this Lease, nor shall Landlord be required to make or permit any assignment or sublease for more than the current term or which Landlord would not be required to permit under the provisions of Article 9.

 

19.1.4.3    Until such time as Landlord shall elect to terminate the Lease and shall thereupon be entitled to recover the amounts specified in such case in Section 19.1.3, Tenant shall pay to Landlord upon demand the full amount of all rent, including any amounts treated as additional rent under this Lease and other sums reserved in this Lease for the remaining Term, together with the costs of repairs, alterations, additions, redecorating and Landlord’s expenses of reletting and the collection of the rent accruing therefrom (including reasonable attorney’s fees and broker’s commissions), as the same shall then be due or become due from time to time, less only such consideration as Landlord may have received from any reletting of the Premises; and Tenant agrees that Landlord may file suits from time to time to recover any sums falling due under this Article 19 as they become due.  Any proceeds of reletting by Landlord in excess of the amount then owed by Tenant to Landlord from time to time shall be credited against Tenant’s future obligations under this Lease but shall not otherwise be refunded to Tenant or inure to Tenant’s benefit.

 

19.2                        Upon the occurrence of an Event of Default, Landlord may (but shall not be obligated to) cure such default at Tenant’s sole expense.  Without limiting the generality of the foregoing, Landlord may, at Landlord’s option, enter into and upon the Premises if Landlord determines in its reasonable discretion that Tenant is not acting within a commercially reasonable time to maintain, repair or replace anything for which Tenant is responsible under this Lease or to otherwise effect compliance with its obligations under this Lease and correct the same, without being deemed in any manner guilty of trespass, eviction or forcible entry and detainer and without incurring any liability for any damage or interruption of Tenant’s business resulting therefrom and Tenant agrees to reimburse Landlord within five (5) days of Landlord’s demand as additional rent, for any reasonable expenses which Landlord may incur in thus effecting compliance with Tenant’s obligations under this Lease, plus interest from the date of expenditure by Landlord at the Wall Street Journal prime rate.

 

19.3                        Tenant understands and agrees that in entering into this Lease, Landlord is relying upon receipt of all the Annual and Monthly Installments of Rent to become due with respect to all the Premises originally leased hereunder over the full Initial Term of this Lease for amortization, including interest at the Amortization Rate.  For purposes hereof, the “Concession Amount” shall be defined as the aggregate of all amounts forgone or expended by Landlord as free rent under the Lease, under Exhibit B hereof for construction allowances, including the “Landlord’s Allowance” (excluding therefrom any amounts expended by Landlord for Landlord’s Work, as defined in Exhibit B), and for brokers’ commissions payable by reason of this Lease.  Accordingly, Tenant agrees that if this Lease or Tenant’s right to possession of the Premises leased hereunder shall be terminated as of any date (“Default Termination Date”) prior to the expiration of the full Initial Term hereof by reason of a default of Tenant, there shall be due and owing to Landlord as of the day prior to the Default Termination Date, as rent in addition to all other amounts owed by Tenant as of such Date, the amount (“Unamortized Amount”) of the Concession Amount determined as set forth below; provided, however, that in the event that such amounts are recovered by Landlord pursuant to any other provision of this Article 19, Landlord agrees that it shall not attempt to recover such amounts pursuant to this Paragraph 19.3.  For the purposes hereof, the Unamortized Amount shall be determined in the same manner as the remaining principal balance of a mortgage with interest at the Amortization Rate payable in level payments over the same length of time as from the effectuation of the Concession concerned to the end of the full Initial Term of this Lease would be determined.  The foregoing provisions shall also apply to and upon any reduction of space in the Premises, as though such reduction were a termination for Tenant’s default, except that (i) the Unamortized Amount shall be reduced by any amounts paid by Tenant to Landlord to effectuate such reduction and (ii) the manner of application shall be that the Unamortized Amount shall first be determined as though for a full termination as of the Effective Date of the elimination of the portion, but then the amount so determined shall be multiplied by the fraction of which the numerator is the rentable square footage of the eliminated portion and the denominator is the rentable square footage of the Premises originally leased hereunder; and the amount thus obtained shall be the Unamortized Amount.

 

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Further, it is agreed that if the Commencement Date does not occur due to any act or default of Tenant then in addition to all other remedies available to Landlord, the entire Landlord’s Allowance received by Tenant shall be immediately due and payable to Landlord without reduction of any kind.

 

19.4                        If, on account of any breach or default by Tenant in Tenant’s obligations under the terms and conditions of this Lease, it shall become necessary or appropriate for Landlord to employ or consult with an attorney or collection agency concerning or to enforce or defend any of Landlord’s rights or remedies arising under this Lease or to collect any sums due from Tenant, Tenant agrees to pay all costs and fees so incurred by Landlord, including, without limitation, reasonable attorneys’ fees and costs.  TENANT EXPRESSLY WAIVES ANY RIGHT TO TRIAL BY JURY.

 

19.5                        Pursuit of any of the foregoing remedies shall not preclude pursuit of any of the other remedies provided in this Lease or any other remedies provided by law (all such remedies being cumulative), nor shall pursuit of any remedy provided in this Lease constitute a forfeiture or waiver of any rent due to Landlord under this Lease or of any damages accruing to Landlord by reason of the violation of any of the terms, provisions and covenants contained in this Lease.

 

19.6                        No act or thing done by Landlord or its agents during the Term shall be deemed a termination of this Lease or an acceptance of the surrender of the Premises, and no agreement to terminate this Lease or accept a surrender of said Premises shall be valid, unless in writing signed by Landlord.  No waiver by Landlord of any violation or breach of any of the terms, provisions and covenants contained in this Lease shall be deemed or construed to constitute a waiver of any other violation or breach of any of the terms, provisions and covenants contained in this Lease.  Landlord’s acceptance of the payment of rental or other payments after the occurrence of an Event of Default shall not be construed as a waiver of such Default, unless Landlord so notifies Tenant in writing.  Forbearance by Landlord in enforcing one or more of the remedies provided in this Lease upon an Event of Default shall not be deemed or construed to constitute a waiver of such Default or of Landlord’s right to enforce any such remedies with respect to such Default or any subsequent Default.

 

19.7                        To secure the payment of all rentals and other sums of money becoming due from Tenant under this Lease, Landlord shall have and Tenant grants to Landlord a first lien upon the leasehold interest of Tenant under this Lease, which lien may be enforced in equity, and a continuing security interest upon all goods, wares, equipment, fixtures, furniture, inventory, accounts, contract rights, chattel paper and other personal property of Tenant situated on the Premises, and such property shall not be removed therefrom without the consent of Landlord until all arrearages in rent as well as any and all other sums of money then due to Landlord under this Lease shall first have been paid and discharged.  Upon the occurrence of an Event of Default, Landlord shall have, in addition to any other remedies provided in this Lease or by law, all rights and remedies under the Uniform Commercial Code, including without limitation the right to sell the property described in this Section 19.7 at public or private sale upon five (5) days’ notice to Tenant.  Tenant shall execute all such financing statements and other instruments as shall be deemed necessary or desirable in Landlord’s discretion to perfect the security interest hereby created.

 

19.8                        Any and all property which may be removed from the Premises by Landlord pursuant to the authority of this Lease or of law, to which Tenant is or may be entitled, may be handled, removed and/or stored, as the case may be, by or at the direction of Landlord but at the risk, cost and expense of Tenant, and Landlord shall in no event be responsible for the value, preservation or safekeeping thereof.  Tenant shall pay to Landlord, upon demand, any and all expenses incurred in such removal and all storage charges against such property so long as the same shall be in Landlord’s possession or under Landlord’s control.  Any such property of Tenant not retaken by Tenant from storage within thirty (30) days after removal from the Premises shall, at Landlord’s option, be deemed conveyed by Tenant to Landlord under this Lease as by a bill of sale without further payment or credit by Landlord to Tenant.

 

19.9                        If more than one (1) Event of Default occurs during the Term or any renewal thereof, Tenant’s renewal options, expansion options, purchase options and rights of first offer and/or refusal, if any are provided for in this Lease, shall be null and void.

 

20.                               TENANT’S BANKRUPTCY OR INSOLVENCY.

 

20.1                        If at any time and for so long as Tenant shall be subjected to the provisions of the United States Bankruptcy Code or other law of the United States or any state thereof for the protection of debtors as in effect at such time (each a “Debtor’s Law”):

 

20.1.1              Tenant, Tenant as debtor-in-possession, and any trustee or receiver of Tenant’s assets (each a “Tenant’s Representative”) shall have no greater right to assume or assign this Lease or any interest in this Lease, or to sublease any of the Premises than accorded to Tenant in Article 9, except to the extent Landlord shall be required to permit

 

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such assumption, assignment or sublease by the provisions of such Debtor’s Law.  Without limitation of the generality of the foregoing, any right of any Tenant’s Representative to assume or assign this Lease or to sublease any of the Premises shall be subject to the conditions that:

 

20.1.1.1    Such Debtor’s Law shall provide to Tenant’s Representative a right of assumption of this Lease which Tenant’s Representative shall have timely exercised and Tenant’s Representative shall have fully cured any default of Tenant under this Lease.

 

20.1.1.2    Tenant’s Representative or the proposed assignee, as the case shall be, shall have deposited with Landlord as security for the timely payment of rent an amount equal to the larger of: (a) three (3) months’ rent and other monetary charges accruing under this Lease; and (b) any sum specified in Article 5; and shall have provided Landlord with adequate other assurance of the future performance of the obligations of the Tenant under this Lease.  Without limitation, such assurances shall include, at least, in the case of assumption of this Lease, demonstration to the satisfaction of the Landlord that Tenant’s Representative has and will continue to have sufficient unencumbered assets after the payment of all secured obligations and administrative expenses to assure Landlord that Tenant’s Representative will have sufficient funds to fulfill the obligations of Tenant under this Lease; and, in the case of assignment, submission of current financial statements of the proposed assignee, audited by an independent certified public accountant reasonably acceptable to Landlord and showing a net worth and working capital in amounts determined by Landlord to be sufficient to assure the future performance by such assignee of all of the Tenant’s obligations under this Lease.

 

20.1.1.3    The assumption or any contemplated assignment of this Lease or subleasing any part of the Premises, as shall be the case, will not breach any provision in any other lease, mortgage, financing agreement or other agreement by which Landlord is bound.

 

20.1.1.4    Landlord shall have, or would have had absent the Debtor’s Law, no right under Article 9 to refuse consent to the proposed assignment or sublease by reason of the identity or nature of the proposed assignee or sublessee or the proposed use of the Premises concerned.

 

21.                               QUIET ENJOYMENT.  Landlord represents and warrants that it has full right and authority to enter into this Lease and that Tenant, while paying the rental and performing its other covenants and agreements contained in this Lease, shall peaceably and quietly have, hold and enjoy the Premises for the Term without hindrance or molestation from Landlord subject to the terms and provisions of this Lease.  Landlord shall not be liable for any interference or disturbance by other tenants or third persons, nor shall Tenant be released from any of the obligations of this Lease because of such interference or disturbance.

 

22.                               CASUALTY

 

22.1                        In the event the Premises or the Building are damaged by fire or other cause and in Landlord’s reasonable estimation such damage can be materially restored within [*] days, Landlord shall forthwith repair the same and this Lease shall remain in full force and effect, except that Tenant shall be entitled to a proportionate abatement in rent from the date of such damage.  Such abatement of rent shall be made pro rata in accordance with the extent to which the damage and the making of such repairs shall interfere with the use and occupancy by Tenant of the Premises from time to time.  Within forty-five (45) days from the date of such damage, Landlord shall notify Tenant, in writing, of Landlord’s reasonable estimation of the length of time within which material restoration can be made, and Landlord’s determination shall be binding on Tenant.  For purposes of this Lease, the Building or Premises shall be deemed “materially restored” if they are in such condition as would not prevent or materially interfere with Tenant’s use of the Premises for the purpose for which it was being used immediately before such damage.

 

22.2                        If such repairs cannot, in Landlord’s reasonable estimation, be made within one hundred eighty (180) days, Landlord and Tenant shall each have the option of giving the other, at any time within ninety (90) days after such damage, notice terminating this Lease as of the date of such damage.  In the event of the giving of such notice, this Lease shall expire and all interest of the Tenant in the Premises shall terminate as of the date of such damage as if such date had been originally fixed in this Lease for the expiration of the Term.  In the event that neither Landlord nor Tenant exercises its option to terminate this Lease, then Landlord shall repair or restore such damage, this Lease continuing in full force and effect, and the rent hereunder shall be proportionately abated as provided in Section 22.1.

 

22.3                        Landlord shall not be required to repair or replace any damage or loss by or from fire or other cause to any panelings, decorations, partitions, additions, railings, ceilings, floor coverings, office fixtures or any other property or improvements installed on the Premises by, or belonging to, Tenant.  Any insurance which may be carried by Landlord or

 

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Tenant against loss or damage to the Building or Premises shall be for the sole benefit of the party carrying such insurance and under its sole control.

 

22.4                        In the event that Landlord should fail to complete such repairs and material restoration within sixty (60) days after the date estimated by Landlord therefor as extended by this Section 22.4, Tenant may at its option and as its sole remedy terminate this Lease by delivering written notice to Landlord, within fifteen (15) days after the expiration of said period of time, whereupon the Lease shall end on the date of such notice or such later date fixed in such notice as if the date of such notice was the date originally fixed in this Lease for the expiration of the Term; provided, however, that if construction is delayed because of changes, deletions or additions in construction requested by Tenant, Acts of God, war, or other natural causes beyond the reasonable control of Landlord, the period for restoration, repair or rebuilding shall be extended for the amount of time Landlord is so delayed.

 

22.5                        Notwithstanding anything to the contrary contained in this Article:  (a) Landlord shall not have any obligation whatsoever to repair, reconstruct, or restore the Premises when the damages resulting from any casualty covered by the provisions of this Article 22 occur during the last twelve (12) months of the Term or any extension thereof, but if Landlord determines not to repair such damages Landlord shall notify Tenant and if such damages shall render any material portion of the Premises untenantable Tenant shall have the right to terminate this Lease by notice to Landlord within fifteen (15) days after receipt of Landlord’s notice; and (b) in the event the holder of any indebtedness secured by a mortgage or deed of trust covering the Premises or Building requires that any insurance proceeds be applied to such indebtedness, then Landlord shall have the right to terminate this Lease by delivering written notice of termination to Tenant within fifteen (15) days after such requirement is made by any such holder, whereupon this Lease shall end on the date of such damage as if the date of such damage were the date originally fixed in this Lease for the expiration of the Term.

 

22.6                        In the event of any damage or destruction to the Building or Premises by any peril covered by the provisions of this Article 22, it shall be Tenant’s responsibility to properly secure the Premises and upon notice from Landlord to remove forthwith, at its sole cost and expense, such portion of all of the property belonging to Tenant or its licensees from such portion or all of the Building or Premises as Landlord shall request.

 

23.                               EMINENT DOMAIN.  If all or any substantial part of the Premises shall be taken or appropriated by any public or quasi-public authority under the power of eminent domain, or conveyance in lieu of such appropriation, either party to this Lease shall have the right, at its option, of giving the other, at any time within thirty (30) days after such taking, notice terminating this Lease, except that Tenant may only terminate this Lease by reason of taking or appropriation, if such taking or appropriation shall be so substantial as to materially interfere with Tenant’s use and occupancy of the Premises.  If neither party to this Lease shall so elect to terminate this Lease, the rental thereafter to be paid shall be adjusted on a fair and equitable basis under the circumstances.  In addition to the rights of Landlord above, if any substantial part of the Building shall be taken or appropriated by any public or quasi-public authority under the power of eminent domain or conveyance in lieu thereof, and regardless of whether the Premises or any part thereof are so taken or appropriated, Landlord shall have the right, at its sole option, to terminate this Lease.  Landlord shall be entitled to any and all income, rent, award, or any interest whatsoever in or upon any such sum, which may be paid or made in connection with any such public or quasi-public use or purpose, and Tenant hereby assigns to Landlord any interest it may have in or claim to all or any part of such sums, other than any separate award which may be made with respect to Tenant’s trade fixtures and moving expenses; Tenant shall make no claim for the value of any unexpired Term.

 

24.                               SALE BY LANDLORD.  In event of a sale or conveyance by Landlord of the Building, the same shall operate to release Landlord from any future liability upon any of the covenants or conditions, expressed or implied, contained in this Lease in favor of Tenant, and in such event Tenant agrees to look solely to the responsibility of the successor in interest of Landlord in and to this Lease.  Except as set forth in this Article 24, this Lease shall not be affected by any such sale and Tenant agrees to attorn to the purchaser or assignee.  If any Security Deposit has been given by Tenant to secure the faithful performance of any of the covenants of this Lease, and Landlord transfers said Security Deposit to the purchaser of the Building, then in such case, Landlord shall be discharged from any further liability with regard to said Security Deposit.

 

25.                               ESTOPPEL CERTIFICATES.  Within ten (10) business days following any written request which Landlord may make from time to time, Tenant shall execute and deliver to Landlord or mortgagee or prospective mortgagee a sworn statement certifying:  (a) the date of commencement of this Lease; (b) the fact that this Lease is unmodified and in full force and effect (or, if there have been modifications to this Lease, that this lease is in full force and effect, as modified, and stating the date and nature of such modifications); (c) the date to which the rent and other sums payable under this Lease have been paid; (d) the fact that there are no current defaults under this Lease by either Landlord or Tenant except as specified in Tenant’s statement; and (e) such other matters as may be reasonably requested by Landlord and that are accurate and truthful.  Landlord and Tenant intend that any statement delivered pursuant to this Article 25 may be relied upon by any mortgagee,

 

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beneficiary or purchaser, and Tenant shall be liable for all loss, cost or expense resulting from the failure of any sale or funding of any loan caused by any material misstatement contained in such estoppel certificate.  Tenant irrevocably agrees that if Tenant fails to execute and deliver such sworn statement within such ten (10) business day period Landlord or Landlord’s beneficiary or agent may execute and deliver such sworn statement on Tenant’s behalf, and that such certificate shall be fully binding on Tenant.

 

26.                               SURRENDER OF PREMISES.

 

26.1                        Tenant agrees to arrange to meet Landlord for two (2) joint inspections of the Premises, the first to occur at least thirty (30) days (but no more than sixty (60) days) before the last day of the Term, and the second to occur not later than forty-eight (48) hours after Tenant has vacated the Premises.  In the event of Tenant’s failure to participate in either such inspection, Landlord’s inspection at or after Tenant’s vacating the Premises shall be conclusively deemed correct for purposes of determining Tenant’s responsibility for repairs and restoration.

 

26.2                        All alterations, additions, and improvements in, on, or to the Premises which exist as of the Lease Reference Date or are made or installed by or for Tenant after the Lease Reference Date, including, without limitation, carpeting (collectively, “Alterations”), shall be and remain the property of Tenant during the Term.  Upon the expiration or sooner termination of the Term, all Alterations shall become a part of the realty and shall belong to Landlord without compensation, and title shall pass to Landlord under this Lease as by a bill of sale.  At the end of the Term or any renewal of the Term or other sooner termination of this Lease, Tenant will peaceably deliver up to Landlord possession of the Premises, together with all Alterations by whomsoever made, in the same conditions received or first installed, broom clean and free of all debris, excepting only ordinary wear and tear and damage by fire or other casualty.  Notwithstanding the foregoing, Tenant shall, at Tenant’s sole cost, complete all Pre-Existing Alterations Restoration Work (as defined below) and, if Landlord elects by notice given to Tenant at least ten (10) days prior to expiration of the Term, Tenant shall, at Tenant’s sole cost, remove any Alterations made after the Lease Reference Date [*], as defined below, so designated by Landlord’s notice, including all laboratory space build-out and Alterations, and repair any damage caused by such removal.  Tenant must, at Tenant’s sole cost, remove upon termination of this Lease, any and all of Tenant’s furniture, furnishings, equipment, movable partitions of less than full height from floor to ceiling and other trade fixtures and personal property, as well as all data/telecommunications cabling and wiring installed by or on behalf of Tenant, whether inside walls, under any raised floor or above any ceiling (collectively, “Personalty”).  Personalty not so removed shall be deemed abandoned by the Tenant and title to the same shall thereupon pass to Landlord under this Lease as by a bill of sale, but Tenant shall remain responsible for the cost of removal and disposal of such Personalty, as well as any damage caused by such removal.

 

“[*].

 

As part of Tenant’s restoration obligations, Tenant agrees to restore all areas of the Premises shown in gray highlight on Exhibit F attached hereto and made a part hereof to a vanilla shell condition, including open space, with existing floors removed and restored to vanilla shell condition and ready for carpet, drop ceiling with ceiling grid, ceiling tiles, and sprinkler systems (sprinkler heads must be restored to standard office height), walls restored and ready for paint, and standard office lighting (together, the “Pre-Existing Alterations Restoration Work”).

 

26.3                        All obligations of Tenant under this Lease not fully performed as of the expiration or earlier termination of the Term shall survive the expiration or earlier termination of the Term.  Upon the expiration or earlier termination of the Term, Tenant shall pay to Landlord the amount, as estimated by Landlord, necessary to repair and restore the Premises as provided in this Lease and/or to discharge Tenant’s obligation for unpaid amounts due or to become due to Landlord.  All such amounts shall be used and held by Landlord for payment of such obligations of Tenant, with Tenant being liable for any additional costs upon demand by Landlord, or with any excess to be returned to Tenant after all such obligations have been determined and satisfied.  Any otherwise unused Security Deposit shall be credited against the amount payable by Tenant under this Lease.

 

27.                               NOTICES.  Any notice or document required or permitted to be delivered under this Lease shall be addressed to the intended recipient, by fully prepaid registered or certified United States Mail return receipt requested, or by reputable independent contract delivery service furnishing a written record of attempted or actual delivery, and shall be deemed to be delivered when tendered for delivery to the addressee at its address set forth on the Reference Pages, or at such other address as it has then last specified by written notice delivered in accordance with this Article 27, or if to Tenant at either its aforesaid address or its last known registered office or home of a general partner or individual owner, whether or not actually accepted or received by the addressee.  Any such notice or document may also be personally delivered if a receipt is signed by and received from, the individual, if any, named in Tenant’s Notice Address.

 

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28.                               TAXES PAYABLE BY TENANT.  In addition to rent and other charges to be paid by Tenant under this Lease, Tenant shall reimburse to Landlord, upon demand, any and all taxes payable by Landlord (other than net income taxes) whether or not now customary or within the contemplation of the parties to this Lease:  (a) upon, allocable to, or measured by or on the gross or net rent payable under this Lease, including without limitation any gross income tax or excise tax levied by the State, any political subdivision thereof, or the Federal Government with respect to the receipt of such rent; (b) upon or with respect to the possession, leasing, operation, management, maintenance, alteration, repair, use or occupancy of the Premises or any portion thereof, including any sales, use or service tax imposed as a result thereof; (c) upon or measured by the Tenant’s gross receipts or payroll or the value of Tenant’s equipment, furniture, fixtures and other personal property of Tenant or leasehold improvements, alterations or additions located in the Premises; or (d) upon this transaction or any document to which Tenant is a party creating or transferring any interest of Tenant in this Lease or the Premises.  In addition to the foregoing, Tenant agrees to pay, before delinquency, any and all taxes levied or assessed against Tenant and which become payable during the term hereof upon Tenant’s equipment, furniture, fixtures and other personal property of Tenant located in the Premises.

 

29.                               INTENTIONALLY DELETED.

 

30.                               DEFINED TERMS AND HEADINGS.  The Article headings shown in this Lease are for convenience of reference and shall in no way define, increase, limit or describe the scope or intent of any provision of this Lease.  Any indemnification or insurance of Landlord shall apply to and inure to the benefit of all the following “Landlord Entities”, being Landlord, Landlord’s investment manager, and the trustees, boards of directors, officers, general partners, beneficiaries, stockholders, employees and agents of each of them.  Any option granted to Landlord shall also include or be exercisable by Landlord’s trustee, beneficiary, agents and employees, as the case may be.  In any case where this Lease is signed by more than one person, the obligations under this Lease shall be joint and several.  The terms “Tenant” and “Landlord” or any pronoun used in place thereof shall indicate and include the masculine or feminine, the singular or plural number, individuals, firms or corporations, and their and each of their respective successors, executors, administrators and permitted assigns, according to the context hereof.  The term “rentable area” shall mean the rentable area of the Premises or the Building as calculated by the Landlord on the basis of the plans and specifications of the Building including a proportionate share of any common areas.  Tenant hereby accepts and agrees to be bound by the figures for the rentable square footage of the Premises and Tenant’s Proportionate Share shown on the Reference Pages; however, Landlord shall adjust either or both figures if there is manifest error, addition or subtraction to the Building or any business park or complex of which the Building is a part, remeasurement or other circumstance reasonably justifying adjustment.  The term “Building” refers to the structure in which the Premises are located and the common areas (parking lots, sidewalks, landscaping, etc.) appurtenant thereto.  If the Building is part of a larger complex of structures, the term “Building” may include the entire complex, where appropriate (such as shared Expenses or Taxes) and subject to Landlord’s reasonable discretion.

 

31.                               TENANT’S AUTHORITY.  If Tenant signs as a corporation, partnership, trust or other legal entity each of the persons executing this Lease on behalf of Tenant represents and warrants that Tenant has been and is qualified to do business in the state in which the Building is located, that the entity has full right and authority to enter into this Lease, and that all persons signing on behalf of the entity were authorized to do so by appropriate actions. Tenant agrees to deliver to Landlord, simultaneously with the delivery of this Lease, a corporate resolution, proof of due authorization by partners, opinion of counsel or other appropriate documentation reasonably acceptable to Landlord evidencing the due authorization of Tenant to enter into this Lease.

 

Tenant hereby represents and warrants that neither Tenant, nor any persons or entities holding any legal or beneficial interest whatsoever in Tenant, are (i) the target of any sanctions program that is established by Executive Order of the President or published by the Office of Foreign Assets Control, U.S. Department of the Treasury (“OFAC”); (ii) designated by the President or OFAC pursuant to the Trading with the Enemy Act, 50 U.S.C. App.  § 5, the International Emergency Economic Powers Act, 50 U.S.C. §§ 1701-06, the Patriot Act, Public Law 107-56, Executive Order 13224 (September 23, 2001) or any Executive Order of the President issued pursuant to such statutes; or (iii) named on the following list that is published by OFAC: “List of Specially Designated Nationals and Blocked Persons.” If the foregoing representation is untrue at any time during the Term, an Event of Default will be deemed to have occurred, without the necessity of notice to Tenant.

 

32.                               FINANCIAL STATEMENTS AND CREDIT REPORTS.  At Landlord’s request [*], Tenant shall deliver to Landlord a copy, certified by an officer of Tenant as being a true and correct copy, of Tenant’s most recent audited financial statement, or, if unaudited, certified by Tenant’s chief financial officer as being true, complete and correct in all material respects.  Landlord agrees to treat all such financial statements as Tenant confidential information, and shall not share such statements or information contained in such statements with any third party without first obtaining Tenant’s express written permission.  Tenant hereby authorizes Landlord to obtain one or more credit reports on Tenant at any time [*] and shall execute such further authorizations as Landlord may reasonably require in order to obtain a credit report.  [*].

 

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33.                               COMMISSIONS.  Each of the parties represents and warrants to the other that it has not dealt with any broker or finder in connection with this Lease, except as described on the Reference Pages.

 

34.                               TIME AND APPLICABLE LAW.  Time is of the essence of this Lease and all of its provisions.  This Lease shall in all respects be governed by the laws of the state in which the Building is located.

 

35.                               SUCCESSORS AND ASSIGNS.  Subject to the provisions of Article 9, the terms, covenants and conditions contained in this Lease shall be binding upon and inure to the benefit of the heirs, successors, executors, administrators and assigns of the parties to this Lease.

 

36.                               ENTIRE AGREEMENT.  This Lease, together with its exhibits, contains all agreements of the parties to this Lease and supersedes any previous negotiations.  There have been no representations made by the Landlord or any of its representatives or understandings made between the parties other than those set forth in this Lease and its exhibits.  This Lease may not be modified except by a written instrument duly executed by the parties to this Lease.

 

37.                               EXAMINATION NOT OPTION.  Submission of this Lease shall not be deemed to be a reservation of the Premises.  Landlord shall not be bound by this Lease until it has received a copy of this Lease duly executed by Tenant and has delivered to Tenant a copy of this Lease duly executed by Landlord, and until such delivery Landlord reserves the right to exhibit and lease the Premises to other prospective tenants.  Notwithstanding anything contained in this Lease to the contrary, Landlord may withhold delivery of possession of the Premises from Tenant until such time as Tenant has paid to Landlord any security deposit required by Article 5, the first month’s rent as set forth in Article 3 and any sum owed pursuant to this Lease.

 

38.                               RECORDATION.  Tenant shall not record or register this Lease or a short form memorandum hereof without the prior written consent of Landlord, and then shall pay all charges and taxes incident such recording or registration.  In the event that Landlord records or registers this Lease or a memorandum thereof, Landlord shall pay charges and taxes incident to such recording or registration.

 

39.                               RIGHT OF FIRST OFFER.

 

39.1                        Provided that as of the date of the giving of the First Offer Notice, (a) Tenant is the Tenant originally named herein, (b) Tenant actually occupies substantially all of the Premises originally demised under this Lease and any space added to the Premises; and (c) no Event of Default exists, if at any time during the Term any lease for any space in the Building (the “Offered Space”) expires, then Landlord, before offering such Offered Space to anyone other than the tenant then occupying such space (or its affiliates) or other tenants with prior rights to the Offered Space, will offer to Tenant the right to include the Offered Space within the Premises on the same terms and conditions upon which Landlord intends to offer the Offered Space for lease, provided that such terms shall include (and make appropriate business term adjustments for) an abatement of the Monthly Installments of Annual Rent which would be due for the Offered Space for a period of 120 days following the date of Tenant’s Notice.

 

39.2                        Such offer will be made by Landlord to Tenant in a written notice (the “First Offer Notice”), which offer will designate the space being offered and specify the terms which Landlord intends to offer with respect to the Offered Space.  Tenant may accept the offer set forth in the First Office Notice by delivering to Landlord an unconditional acceptance (“Tenant’s Notice”) of such offer within ten (10) days after delivery by Landlord of the First Offer Notice to Tenant.  Time will be of the essence with respect to the giving of Tenant’s Notice.  If Tenant does not accept (or fails to timely accept) an offer made by Landlord in the First Offer Notice, Landlord will be under no further obligation with respect to such space.

 

39.3                        Tenant must accept all Offered Space offered by Landlord at any one time if it desires to accept any of such Offered Space and may not exercise its right with respect to only part of such space.  In addition, if Landlord desires to lease more than just the Offered Space to one tenant, Landlord may offer to Tenant, pursuant to the terms hereof, all such space which Landlord desires to lease, and Tenant must exercise its rights hereunder with respect to all such space, and may not insist on receiving an offer for just the Offered Space.

 

39.4                        If Tenant at any time declines any Offered Space offered by Landlord, Tenant will be deemed to have waived all further rights with respect to the Offered Space until such time as any future lease for such space expires, and Landlord will be free to lease the Offered Space to third parties, including on terms which may be more or less favorable to Landlord than those offered to Tenant.  In such event, upon Landlord’s request, Tenant will execute a release evidencing its waiver of such rights with respect to the Offered Space.

 

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39.5                        The rights of Tenant under this Section 39 for any Offered Space shall not apply if as of the time that Tenant sends the Tenant’s Notice, there are less than 36 months remaining in the Term, unless prior to Tenant’s delivery of the Extension Notice, Tenant and Landlord have agreed to an extension of the Term for an Extension Term under Section 2.4 above (including an agreement on the Annual Rent for the Extension Term).

 

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40.                               LIMITATION OF LANDLORD’S LIABILITY.  Redress for any claim against Landlord under this Lease shall be limited to and enforceable only against and to the extent of Landlord’s interest in the Building.  The obligations of Landlord under this Lease are not intended to be and shall not be personally binding on, nor shall any resort be had to the private properties of, any of its or its investment manager’s trustees, directors, officers, partners, beneficiaries, members, stockholders, employees, or agents, and in no case shall Landlord be liable to Tenant hereunder for any lost profits, damage to business, or any form of special, indirect or consequential damages.

 

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

 

	
LANDLORD:
    	
TENANT:
    
	
 
    	
 
    
	
MOR GATE LLC
    	
ACELL, INC.
    
	
 
    	
 
    
	
 
    	
 
    
	
By:
    	
/s/ Michael A. Ready
    	
 
    	
By:
    	
/s/ Edward O’Brien
    
	
 
    	
Michael A. Ready
    	
 
    	
Name:
    	
Edward O’Brien
    
	
 
    	
Vice President
    	
 
    	
Title: 
    	
CFO
    
	
Dated:
    	
1/30                    ,   2015
    	
 
    	
Dated: 
    	
1-27-15                       ,   2015
    

 

A-22

 

EXHIBIT A — FLOOR PLAN DEPICTING THE PREMISES

 

attached to and made a part of Lease bearing the

Lease Reference Date of                , 2015 between

MOR Gate LLC as Landlord and

ACell, Inc., as Tenant

 

Exhibit A is intended only to show the general layout of the Premises as of the beginning of the Term of this Lease.  It does not in any way supersede any of Landlord’s rights set forth in Article 17 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.

 

Initials

 

A

 

EXHIBIT A-1 — SITE PLAN

 

attached to and made a part of Lease bearing the

Lease Reference Date of                , 2015 between

MOR Gate LLC as Landlord and

ACell, Inc., as Tenant

 

Exhibit A-1 is intended only to show the general location of the Premises as of the beginning of the Term of this Lease.  It does not in any way supersede any of Landlord’s rights set forth in Article 17 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.

 

Initials

 

A-1

 

EXHIBIT B — INITIAL ALTERATIONS

 

attached to and made a part of Lease bearing the

Lease Reference Date of                , 2015 between

MOR Gate LLC as Landlord and

ACell, Inc., as Tenant

 

1.                                      Landlord agrees that Landlord will contribute to Tenant the amount of $[*] (“Landlord’s Allowance for Suite 100”) to be applied solely toward the cost of the Tenant Improvement Costs for Suite 100 of the Premises (and to the extent provided below, toward Annual Rent obligations for Suite 100).  Landlord agrees that Landlord will contribute to Tenant the amount of $[*] (“Landlord’s Allowance for Suite 200”) to be applied solely toward the cost of the Tenant Improvement Costs for Suite 200 of the Premises (and to the extent provided below, toward Annual Rent obligations for Suite 200).Landlord’s Allowance for Suite 100 and Landlord’s Allowance for Suite 200 are collectively referred to as “Landlord’s Allowance”.  Landlord shall not be required to disburse Landlord’s Allowance during such time as uncured Event of Default exists and is continuing beyond any applicable notice and cure period under the Lease.  [*] in accordance with the terms and restrictions set forth in Sections 2 and 3 below.  [*] in accordance with the terms and restrictions set forth in Section 2 below.

 

“Tenant Improvements” means all direct improvements made by Tenant to Suite 100 or Suite 200 (as applicable) and approved by Landlord (and excluding Tenant’s personal property, furniture, IT and phone systems and the like).

 

“Tenant Improvement Costs” means all direct costs for the Tenant Improvements, together with all overhead payable to Tenant’s General Contractor for the Tenant Improvements and all architectural and engineering fees payable by Tenant for the Tenant Improvements and all permit fees for the Tenant Improvements, whether such costs were incurred by Tenant prior to the date of this Lease or will be incurred after the date of this Lease.

 

2.                                      Prior to the Commencement Date for Suite 100, the amount of the Landlord’s Allowance for Suite 100 which may be drawn upon by Tenant shall be limited to [*]; following the Commencement Date for Suite 100, Tenant shall have full access to the Landlord’s Allowance for Suite 100, subject to the terms of this Exhibit B.  Landlord shall disburse Landlord’s Allowance for Suite 100 directly to Tenant, to be applied towards the Tenant Improvement Costs for Suite 100, upon Landlord’s receipt of invoices for the Tenant Improvement Costs for which Tenant is seeking reimbursement from Landlord from the Landlord’s Allowance for Suite 100.  Moreover, prior to each such payment by Landlord, the following conditions also shall be satisfied (the “Payment [*].  Tenant shall use Landlord’s Allowance for Suite 100 within 12 months following the Commencement Date for Suite 100 (the “Suite 100 Allowance Expiration Date”), or the same shall no longer be available to Tenant, [*].

 

3.                                      Prior to the Commencement Date for Suite 200, the amount of the Landlord’s Allowance for Suite 200 which may be drawn upon by Tenant shall be limited to [*]; following the Commencement Date for Suite 200, Tenant shall have full access to the Landlord’s Allowance for Suite 200, subject to the terms of this Exhibit B.  Landlord shall disburse Landlord’s Allowance for Suite 200 directly to Tenant, to be applied towards the Tenant Improvement Costs for Suite 200, upon Landlord’s receipt of invoices for the Tenant Improvement Costs for which Tenant is seeking reimbursement from Landlord from the Landlord’s Allowance for Suite 200.  Moreover, prior to each such payment by Landlord, the following conditions also shall be satisfied (the “Payment Conditions”): [*].  Tenant shall use Landlord’s Allowance for Suite 200 within 12 months following the Commencement Date for Suite 200 (the “Suite 200 Allowance Expiration Date”), or the same shall no longer be available to Tenant, [*].

 

4.                                      Tenant shall pay all costs of the Tenant Improvements exceeding the amount of the Landlord’s Allowance.

 

Initials

 

B

 

EXHIBIT C — COMMENCEMENT DATE MEMORANDUM

 

attached to and made a part of Lease bearing the

Lease Reference Date of                , 2015 between

MOR Gate LLC as Landlord and

ACell, Inc., as Tenant

 

COMMENCEMENT DATE MEMORANDUM

 

THIS MEMORANDUM, made as of      , 20     , by and between       (“Landlord”) and       (“Tenant”).

 

Recitals:

 

A.                                    Landlord and Tenant are parties to that certain Lease, dated for reference      , 20      (the “Lease”) for certain premises (the “Premises”) consisting of approximately       square feet at the building commonly known as      .

 

B.                                    Tenant is in possession of the Premises and the Term of the Lease has commenced.

 

C.                                    Landlord and Tenant desire to enter into this Memorandum confirming the Commencement Date, the Termination Date and other matters under the Lease.

 

NOW, THEREFORE, Landlord and Tenant agree as follows:

 

1.                                      The actual Commencement Date is      .

 

2.                                      The actual Termination Date is      .

 

3.                                      The schedule of the Annual Rent and the Monthly Installment of Rent set forth on the Reference Pages is deleted in its entirety, and the following is substituted therefor:

 

[insert rent schedule]

 

4.                                      Capitalized terms not defined herein shall have the same meaning as set forth in the Lease.

 

IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed as of the date and year first above written.

 

	
LANDLORD:
    	
TENANT:
    
	
 
    	
 
    
	
MOR GATE LLC
    	
ACELL, INC.
    
	
 
    	
 
    
	
 
    	
 
    
	
By:
    	
DO NOT SIGN
    	
 
    	
By:
    	
DO NOT SIGN
    
	
 
    	
Michael A. Ready
    	
 
    	
Name:
    	
 
    
	
 
    	
Vice President
    	
 
    	
Title:
    	
 
    
	
Dated:
    	
                       , 2015
    	
 
    	
Dated:
    	
                  , 2015
    

 

Initials

 

C

 

EXHIBIT D — RULES AND REGULATIONS

 

attached  to and made a part of Lease bearing the

Lease Reference Date of                , 2015 between

MOR Gate LLC as Landlord and

ACell, Inc., as Tenant

 

1.                                      No sign, placard, picture, advertisement, name or notice (collectively referred to as “Signs”) shall be installed or displayed on any part of the outside of the Building without the prior written consent of the Landlord which consent shall be in Landlord’s sole discretion. All approved Signs shall be printed, painted, affixed or inscribed at Tenant’s expense by a person or vendor approved by Landlord and shall be removed by Tenant at Tenant’s expense upon vacating the Premises. Landlord shall have the right to remove any Sign installed or displayed in violation of this rule at Tenant’s expense and without notice.

 

2.                                      If Landlord objects in writing to any curtains, blinds, shades or screens attached to or hung in or used in connection with any window or door of the Premises or Building, Tenant shall immediately discontinue such use.  No awning shall be permitted on any part of the Premises.  Tenant shall not place anything or allow anything to be placed against or near any glass partitions or doors or windows which may appear unsightly, in the opinion of Landlord, from outside the Premises.

 

3.                                      Tenant shall not alter any lock or other access device or install a new or additional lock or access device or bolt on any door of its Premises without the prior written consent of Landlord.  Tenant, upon the termination of its tenancy, shall deliver to Landlord the keys or other means of access to all doors.

 

4.                                      If Tenant requires telephone, data, burglar alarm or similar service, the cost of purchasing, installing and maintaining such service shall be borne solely by Tenant. No boring or cutting for wires will be allowed without the prior written consent of Landlord. Landlord shall direct electricians as to where and how telephone, data, and electrical wires are to be introduced or installed. The location of burglar alarms, telephones, call boxes or other office equipment affixed to the Premises shall be subject to the prior written approval of Landlord.

 

5.                                      Tenant shall not place a load upon any floor of its Premises, including mezzanine area, if any, which exceeds the load per square foot that such floor was designed to carry and that is allowed by law. Heavy objects shall stand on such platforms as determined by Landlord to be necessary to properly distribute the weight. Landlord will not be responsible for loss of or damage to any such equipment or other property from any cause, and all damage done to the Building by maintaining or moving such equipment or other property shall be repaired at the expense of Tenant.

 

6.                                      Tenant shall not install any radio or television antenna, satellite dish, loudspeaker or other device on the roof or exterior walls of the Building without Landlord’s prior written consent which consent shall be in Landlord’s sole discretion.

 

7.                                      Tenant shall not mark, drive nails, screw or drill into the partitions, woodwork, plaster or drywall (except for pictures and general office uses) or in any way deface the Premises or any part thereof.   Tenant shall not affix any floor covering to the floor of the Premises or paint or seal any floors in any manner except as approved by Landlord.  Tenant shall repair any damage resulting from noncompliance with this rule.

 

8.                                      No cooking shall be done or permitted on the Premises, except that Underwriters’ Laboratory approved microwave ovens or equipment for brewing coffee, tea, hot chocolate and similar beverages shall be permitted, provided that such equipment and use is in accordance with all applicable federal, state and city laws, codes, ordinances, rules and regulations.

 

9.                                      Tenant shall not use any hand trucks except those equipped with the rubber tires and side guards, and may use such other material-handling equipment as Landlord may approve.  Tenant shall not bring any other vehicles of any kind into the Building. Forklifts which operate on asphalt areas shall only use tires that do not damage the asphalt.

 

10.                               Tenant shall not use the name of the Building or any photograph or other likeness of the Building in connection with or in promoting or advertising Tenant’s business except that Tenant may include the Building name in Tenant’s address. Landlord shall have the right, exercisable without notice and without liability to any tenant, to change the name and address of the Building.

 

11.                               All trash and refuse shall be contained in suitable receptacles at locations approved by Landlord. Tenant shall not place in the trash receptacles any personal trash or material that cannot be disposed of in the ordinary and customary manner of removing such trash without violation of any law or ordinance governing such disposal.

 

D 1

 

12.                               Tenant shall comply with all safety, fire protection and evacuation procedures and regulations established by Landlord or any governing authority.

 

13.                               Tenant assumes all responsibility for securing and protecting its Premises and its contents including keeping doors locked and other means of entry to the Premises closed.

 

14.                               Tenant shall not use any method of heating or air conditioning other than that supplied by Landlord without Landlord’s prior written consent.

 

15.                               No person shall go on the roof without Landlord’s permission.

 

16.                               Tenant shall not permit any animals, other than seeing-eye dogs, to be brought or kept in or about the Premises or any common area of the property.

 

17.                               Tenant shall not permit any motor vehicles to be washed or mechanical work or maintenance of motor vehicles to be performed on any portion of the Premises or parking lot.

 

18.                               These Rules and Regulations are in addition to, and shall not be construed to in any way modify or amend, in whole or in part, the terms, covenants, agreements and conditions of any lease of any premises in the Building.  Landlord may waive any one or more of these Rules and Regulations for the benefit of any tenant or tenants, and any such waiver by Landlord shall not be construed as a waiver of such Rules and Regulations for any or all tenants.

 

19.                               Landlord reserves the right to make such other and reasonable rules and regulations as in its judgment may from time to time be needed for safety and security, for care and cleanliness of the Building and for the preservation of good order in and about the Building.  Tenant agrees to abide by all such rules and regulations herein stated and any additional rules and regulations which are adopted.  Tenant shall be responsible for the observance of all of the foregoing rules by Tenant’s employees, agents, clients, customers, invitees and guests.

 

20.                               Any toilet rooms, toilets, urinals, wash bowls and other apparatus shall not be used for any purpose other than that for which they were constructed and no foreign substance of any kind whatsoever shall be thrown into them.  The expense of any breakage, stoppage or damage resulting from the violation of this rule shall be borne by the Tenant who, or whose employees or invitees, shall have caused it.

 

21.                               Tenant shall not permit smoking or carrying of lighted cigarettes or cigars in areas reasonably designated by Landlord or any applicable governmental agencies as non-smoking areas.

 

22.                               Any directory of the Building or project of which the Building is a part (“Project Area”), if provided, will be exclusively for the display of the name and location of tenants only and Landlord reserves the right to charge for the use thereof and to exclude any other names.

 

23.                               Canvassing, soliciting, distribution of handbills or any other written material in the Building or Project Area is prohibited and each tenant shall cooperate to prevent the same. No tenant shall solicit business from other tenants or permit the sale of any goods or merchandise in the Building or Project Area without the written consent of Landlord.

 

24.                               Any equipment belonging to Tenant which causes noise or vibration that may be transmitted to the structure of the Building or to any space therein to such a degree as to be objectionable to Landlord or to any tenants in the Building shall be placed and maintained by Tenant, at Tenant’s expense, on vibration eliminators or other devices sufficient to eliminate the noise or vibration.

 

25.                               Driveways, sidewalks, halls, passages, exits, entrances and stairways (“Access Areas”) shall not be obstructed by tenants or used by tenants for any purpose other than for ingress to and egress from their respective premises. Access areas are not for the use of the general public and Landlord shall in all cases retain the right to control and prevent access thereto by all persons whose presence, in the judgment of Landlord, shall be prejudicial to the safety, character, reputation and interests of the Building or its tenants.

 

26.                               Landlord reserves the right to designate the use of parking areas and spaces.  Tenant shall not park in visitor, reserved, or unauthorized parking areas. Tenant and Tenant’s guests shall park between designated parking lines only and shall not park motor vehicles in those areas designated by Landlord for loading and unloading. Vehicles in violation of the above shall be subject to being towed at the vehicle owner’s expense. Vehicles parked overnight without prior written 

 

D 2

 

consent of the Landlord shall be deemed abandoned and shall be subject to being towed at vehicle owner’s expense. Tenant will from time to time, upon the request of Landlord, supply Landlord with a list of license plate numbers of vehicles owned or operated by its employees or agents.

 

27.                               No trucks, tractors or similar vehicles can be parked anywhere other than in Tenant’s own truck dock area. Tractor-trailers which must be unhooked or parked with dolly wheels beyond the concrete loading areas must use steel plates or wood blocks under the dolly wheels to prevent damage to the asphalt paving surfaces. No parking or storing of such trailers will be permitted in the parking areas or on streets adjacent thereto.

 

28.                               During periods of loading and unloading, Tenant shall not unreasonably interfere with traffic flow and loading and unloading areas of other tenants.  All products, materials or goods must be stored within the Tenant’s Premises and not in any exterior areas, including, but not limited to, exterior dock platforms, against the exterior of the Building, parking areas and driveway areas. Tenant agrees to keep the exterior of the Premises clean and free of nails, wood, pallets, packing materials, barrels and any other debris produced from their operation.

 

[REMAINDER OF THIS PAGE LEFT INTENTIONALLY BLANK]

 

D 3

 

EXHIBIT E —  HVAC UNITS

 

attached to and made a part of Lease bearing the

Lease Reference Date of                , 2015 between

MOR Gate LLC as Landlord and

ACell, Inc., as Tenant

 

6640 Eli Whitney Drive — HVAC Units

 

	
Make
    	
 
    	
Model #
    	
 
    	
Serial #
    	
 
    	
Area located
    	
 
    	
Size (Ton)
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Carrier #3
    	
 
    	
48TFD012-601GA
    	
 
    	
3700G34041
    	
 
    	
Connector*
    	
 
    	
10 Ton
    
	
Carrier #1
    	
 
    	
48TFD012601GA
    	
 
    	
3700G34037
    	
 
    	
Connector*
    	
 
    	
10 Ton
    
	
Carrier #2
    	
 
    	
48TFD012601GA
    	
 
    	
3700G34036
    	
 
    	
Connector*
    	
 
    	
10 Ton
    
	
Trane
    	
 
    	
2TWB3024A1000AA
    	
 
    	
6453LEA4F
    	
 
    	
Conference Room-6640
    	
 
    	
3 Ton
    
	
Trane #4
    	
 
    	
YCD330A4KU2B6DH4000
    	
 
    	
C06D03256
    	
 
    	
6640
    	
 
    	
2.5 Ton
    
	
Trane #2
    	
 
    	
YSC060A4ELA2T
    	
 
    	
650101808L
    	
 
    	
6640
    	
 
    	
5 Ton
    
	
Trane #3
    	
 
    	
TSC072A4EMA250
    	
 
    	
650101991L
    	
 
    	
6640
    	
 
    	
6 Ton
    
	
Trane #1
    	
 
    	
YSC072A4EMA25C
    	
 
    	
G50101915L
    	
 
    	
6640
    	
 
    	
6 Ton
    
	
York #1
    	
 
    	
D4CG090N133046A
    	
 
    	
NAHM010268
    	
 
    	
Stock Room-6640
    	
 
    	
8 Ton
    
	
York #2
    	
 
    	
D1EG240N24046E
    	
 
    	
NAHM008519
    	
 
    	
Lab-6640
    	
 
    	
20 Ton
    
	
York #3
    	
 
    	
D1EG240N24046E
    	
 
    	
NAHM004495
    	
 
    	
Lab-6640
    	
 
    	
20 Ton
    
	
York #4
    	
 
    	
D1EG240N24046E
    	
 
    	
NAHM007200
    	
 
    	
6640
    	
 
    	
20 Ton
    
	
York #5
    	
 
    	
Y14AN4413CACAAB
    	
 
    	
NAHM009455
    	
 
    	
6640
    	
 
    	
40 Ton
    
	
York Cond.
    	
 
    	
HA120C00A4AAA1A
    	
 
    	
NOE6298693
    	
 
    	
6640
    	
 
    	
10 Ton
    

 

*Note — These HVAC Units are in the enclosed area connecting 6640 and 6650 Eli Whitney Drive.

 

	
 
    	
 
    

Initials

E

 

EXHIBIT F — PRE-EXISTING ALTERATIONS

 

attached to and made a part of Lease bearing the

Lease Reference Date of   January 27, 2015 between

MOR Gate LLC as Landlord and

ACell, Inc., as Tenant

 

	
 
    	
 
    

Initials

 

E

 

CERTAIN CONFIDENTIAL INFORMATION CONTAINED IN THIS DOCUMENT, MARKED BY [*], HAS BEEN OMITTED BECAUSE IT IS NOT MATERIAL AND WOULD LIKELY CAUSE COMPETITIVE HARM TO ACELL, INC. IF PUBLICLY DISCLOSED.

 

LEASE

 

MOR GATE LLC,

Landlord,

 

and

 

ACELL, INC.,

Tenant

 

at

 

6650 Eli Whitney Drive

Columbia, Maryland  21046

 

 

	
TABLE   OF CONTENTS
    
	
 
    	
 
    	
Page
    
	
1.
    	
USE AND RESTRICTIONS ON   USE
    	
1
    
	
 
    	
 
    	
 
    
	
2.
    	
TERM
    	
2
    
	
 
    	
 
    	
 
    
	
3.
    	
RENT
    	
3
    
	
 
    	
 
    	
 
    
	
4.
    	
RENT ADJUSTMENTS
    	
4
    
	
 
    	
 
    	
 
    
	
5.
    	
SECURITY DEPOSIT
    	
5
    
	
 
    	
 
    	
 
    
	
6.
    	
ALTERATIONS
    	
7
    
	
 
    	
 
    	
 
    
	
7.
    	
REPAIR
    	
8
    
	
 
    	
 
    	
 
    
	
8.
    	
LIENS
    	
8
    
	
 
    	
 
    	
 
    
	
9.
    	
ASSIGNMENT AND   SUBLETTING
    	
9
    
	
 
    	
 
    	
 
    
	
10.
    	
INDEMNIFICATION
    	
10
    
	
 
    	
 
    	
 
    
	
11.
    	
INSURANCE
    	
10
    
	
 
    	
 
    	
 
    
	
12.
    	
WAIVER OF SUBROGATION
    	
11
    
	
 
    	
 
    	
 
    
	
13.
    	
SERVICES AND UTILITIES
    	
11
    
	
 
    	
 
    	
 
    
	
14.
    	
HOLDING OVER
    	
11
    
	
 
    	
 
    	
 
    
	
15.
    	
SUBORDINATION
    	
11
    
	
 
    	
 
    	
 
    
	
16.
    	
RULES AND REGULATIONS
    	
12
    
	
 
    	
 
    	
 
    
	
17.
    	
REENTRY BY LANDLORD
    	
12
    
	
 
    	
 
    	
 
    
	
18.
    	
DEFAULT
    	
13
    
	
 
    	
 
    	
 
    
	
19.
    	
REMEDIES
    	
13
    
	
 
    	
 
    	
 
    
	
20.
    	
TENANT’S BANKRUPTCY OR   INSOLVENCY.
    	
16
    
	
 
    	
 
    	
 
    
	
21.
    	
QUIET ENJOYMENT
    	
17
    
	
 
    	
 
    	
 
    
	
22.
    	
CASUALTY
    	
17
    
	
 
    	
 
    	
 
    
	
23.
    	
EMINENT DOMAIN
    	
18
    
	
 
    	
 
    	
 
    
	
24.
    	
SALE BY LANDLORD
    	
18
    
	
 
    	
 
    	
 
    
	
25.
    	
ESTOPPEL CERTIFICATES
    	
18
    
	
 
    	
 
    	
 
    
	
26.
    	
SURRENDER OF PREMISES
    	
18
    
	
 
    	
 
    	
 
    
	
27.
    	
NOTICES
    	
19
    
	
 
    	
 
    	
 
    
	
28.
    	
TAXES PAYABLE BY TENANT
    	
19
    
	
 
    	
 
    	
 
    
	
29.
    	
INTENTIONALLY DELETED
    	
19
    
	
 
    	
 
    	
 
    
	
30.
    	
DEFINED TERMS AND   HEADINGS
    	
19
    
	
 
    	
 
    	
 
    
	
31.
    	
TENANT’S AUTHORITY
    	
20
    
	
 
    	
 
    	
 
    
	
32.
    	
FINANCIAL STATEMENTS   AND CREDIT REPORTS
    	
20
    
	
 
    	
 
    	
 
    
	
33.
    	
COMMISSIONS
    	
20
    
	
 
    	
 
    	
 
    
	
34.
    	
TIME AND APPLICABLE LAW
    	
20
    
	
 
    	
 
    	
 
    
	
35.
    	
SUCCESSORS AND ASSIGNS
    	
20
    
	
 
    	
 
    	
 
    
	
36.
    	
ENTIRE AGREEMENT
    	
20
    
	
 
    	
 
    	
 
    
	
37.
    	
EXAMINATION NOT OPTION
    	
20
    

 

i

 

 

	
TABLE   OF CONTENTS
   (continued)
    
	
 
    	
 
    	
Page
    
	
38.
    	
RECORDATION
    	
21
    
	
 
    	
 
    	
 
    
	
39.
    	
RIGHT OF FIRST OFFER
    	
21
    
	
 
    	
 
    	
 
    
	
40.
    	
LIMITATION OF   LANDLORD’S LIABILITY
    	
22
    

 

EXHIBIT A — FLOOR PLAN DEPICTING THE PREMISES

EXHIBIT A-1 — SITE PLAN

EXHIBIT B — INITIAL ALTERATIONS

EXHIBIT C — COMMENCEMENT DATE MEMORANDUM

EXHIBIT D — RULES AND REGULATIONS

EXHIBIT E — HVAC UNITS

 

ii

 

MULTI-TENANT INDUSTRIAL NET LEASE

 

REFERENCE PAGES

 

	
BUILDING:
    	
 
    	
6650 Eli Whitney Drive
   Columbia, Maryland 21046
    
	
 
    	
 
    	
 
    
	
LANDLORD:
    	
 
    	
MOR Gate LLC
    
	
 
    	
 
    	
 
    
	
LANDLORD’S ADDRESS:
    	
 
    	
c/o RREEF
   8980 Route 108, Suite C
   Columbia, MD 21045
    
	
 
    	
 
    	
 
    
	
WIRE INSTRUCTIONS AND/OR ADDRESS FOR RENT PAYMENT:
    	
 
    	
MOR Gate LLC
   Gateway 58-6650
   P. O. Box 6233
   Hicksville, New York 11802-6233
    
	
 
    	
 
    	
 
    
	
LEASE REFERENCE DATE:
    	
 
    	
   January 27         ,   2015
    
	
 
    	
 
    	
 
    
	
TENANT:
    	
 
    	
ACell, Inc., a Delaware corporation
    
	
 
    	
 
    	
 
    
	
TENANT’S NOTICE ADDRESS:
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
(a) As of   beginning of Term:
    	
 
    	
6650 Eli Whitney Drive, Suite Number 300
   Columbia, Maryland 21046
    
	
 
    	
 
    	
 
    
	
(b) Prior to   beginning of Term (if different):
    	
 
    	
N/A
    
	
 
    	
 
    	
 
    
	
PREMISES ADDRESS:
    	
 
    	
6650 Eli Whitney Drive, Suite Number 300
   Columbia, Maryland 21046
    
	
 
    	
 
    	
 
    
	
PREMISES RENTABLE AREA:
    	
 
    	
Approximately 19,441 rentable square feet (for   outline of Premises see Exhibit A)
    
	
 
    	
 
    	
 
    
	
USE:
    	
 
    	
Office, medical device manufacturing, medical   research, and all other legally permitted uses related thereto
    
	
 
    	
 
    	
 
    
	
COMMENCEMENT DATE:
    	
 
    	
March 1, 2017
    
	
 
    	
 
    	
 
    
	
TERM OF LEASE:
    	
 
    	
Approximately six (6) years and one   (1) month, beginning on the Commencement Date and ending on the   Termination Date. The period from the Commencement Date to the last day of   the same month is the “Commencement Month.”
    
	
 
    	
 
    	
 
    
	
TERMINATION DATE:
    	
 
    	
March 31, 2023
    

 

Initials

 

iii

 

ANNUAL RENT and MONTHLY INSTALLMENT OF RENT(Article 3):

 

	
Period
    	
 
    	
Rentable Square
    	
 
    	
Annual Rent
    	
 
    	
 
    	
 
    	
Monthly Installment
    	
 
    
	
from
    	
 
    	
through
    	
 
    	
Footage
    	
 
    	
Per Square Foot
    	
 
    	
Annual Rent
    	
 
    	
of Rent
    	
 
    
	
3/1/2017
    	
 
    	
2/28/2018
    	
 
    	
19,441
    	
 
    	
$
    	
[*]
    	
 
    	
$
    	
[*]
    	
 
    	
$
    	
[*]
    	
 
    
	
3/1/2018
    	
 
    	
2/28/2019
    	
 
    	
19,441
    	
 
    	
$
    	
[*]
    	
 
    	
$
    	
[*]
    	
 
    	
$
    	
[*]
    	
 
    
	
3/1/2019
    	
 
    	
2/28/2020
    	
 
    	
19,441
    	
 
    	
$
    	
[*]
    	
 
    	
$
    	
[*]
    	
 
    	
$
    	
[*]
    	
 
    
	
3/1/2020
    	
 
    	
2/28/2021
    	
 
    	
19,441
    	
 
    	
$
    	
[*]
    	
 
    	
$
    	
[*]
    	
 
    	
$
    	
[*]
    	
 
    
	
3/1/2021
    	
 
    	
2/28/2022
    	
 
    	
19,441
    	
 
    	
$
    	
[*]
    	
 
    	
$
    	
[*]
    	
 
    	
$
    	
[*]
    	
 
    
	
3/1/2022
    	
 
    	
2/28/2023
    	
 
    	
19,441
    	
 
    	
$
    	
[*]
    	
 
    	
$
    	
[*]
    	
 
    	
$
    	
[*]
    	
 
    
	
3/1/2023
    	
 
    	
3/31/2023
    	
 
    	
19,441
    	
 
    	
$
    	
[*]
    	
 
    	
$
    	
[*]
    	
 
    	
$
    	
[*]
    	
 
    

 

	
INITIAL ESTIMATED   MONTHLY INSTALLMENT OF RENT ADJUSTMENTS (Article 4)
    	
 
    	
Taxes $[*]
   Expenses $[*]
    
	
 
    	
 
    	
 
    
	
TENANT’S PROPORTIONATE SHARE:
    	
 
    	
34.87%
    
	
 
    	
 
    	
 
    
	
SECURITY DEPOSIT:
    	
 
    	
$[*]
    
	
 
    	
 
    	
 
    
	
ASSIGNMENT/SUBLETTING FEE
    	
 
    	
$[*]
    
	
 
    	
 
    	
 
    
	
REAL ESTATE BROKER DUE COMMISSION:
    	
 
    	
CBRE, Inc. and Jones Lange LaSalle   Brokerage, Inc.
    
	
 
    	
 
    	
 
    
	
TENANT’S NAICS CODE:
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
AMORTIZATION RATE:
    	
 
    	
[*]%
    

 

The Reference Pages information is incorporated into and made a part of the Lease.  In the event of any conflict between any Reference Pages information and the Lease, the Lease shall control.  This Lease includes Exhibits A through E, all of which are made a part of this Lease.

 

	
LANDLORD:
    	
TENANT:
    
	
MOR GATE LLC
    	
ACELL, INC.
    
	
 
    	
 
    
	
By:
    	
/s/ Michael A. Ready
    	
 
    	
By:
    	
/s/ Edward O’Brien
    
	
 
    	
Michael A. Ready
    	
 
    	
Name:
    	
Edward O’Brien
    
	
 
    	
Vice President
    	
 
    	
Title:
    	
CFO
    
	
Dated:
    	
1/30                    ,   2015
    	
Dated:
    	
1-27-15                    ,   2015
    

 

iv

 

LEASE

 

By this Lease Landlord leases to Tenant and Tenant leases from Landlord the Premises in the Building as set forth and described on the Reference Pages. The Premises are depicted on the floor plan attached hereto as Exhibit A, and the Building is depicted on the site plan attached hereto as Exhibit A-1.  The Reference Pages, including all terms defined thereon, are incorporated as part of this Lease.

 

1.                                      USE AND RESTRICTIONS ON USE.

 

1.1                               The Premises are to be used solely for the purposes set forth on the Reference Pages.  Tenant shall not do or permit anything to be done in or about the Premises which will in any way obstruct or interfere with the rights of other tenants or occupants of the Building or injure, annoy, or disturb them, or allow the Premises to be used for any improper, immoral, unlawful, or objectionable purpose.  Tenant shall not do, permit or suffer in, on, or about the Premises the sale of any alcoholic liquor without the written consent of Landlord first obtained.  Tenant shall comply with all governmental laws, ordinances and regulations applicable to the use of the Premises and its occupancy and shall promptly comply with all governmental orders and directions for the correction, prevention and abatement of any violations in the Building or appurtenant land, caused or permitted by, or resulting from the specific use by, Tenant, or in or upon, or in connection with, the Premises, all at Tenant’s sole expense.  Tenant shall not do or permit anything to be done on or about the Premises or bring or keep anything into the Premises which will in any way increase the rate of, invalidate or prevent the procuring of any insurance protecting against loss or damage to the Building or any of its contents by fire or other casualty or against liability for damage to property or injury to persons in or about the Building or any part thereof without the consent of Landlord which shall not be unreasonably withheld, conditioned or delayed.

 

1.2                               Tenant shall not, and shall not direct, suffer or permit any of its agents, contractors, employees, licensees or invitees (collectively, the “Tenant Entities”) to at any time handle, use, manufacture, store or dispose of in or about the Premises or the Building any (collectively “Hazardous Materials”) flammables, explosives, radioactive materials, hazardous wastes or materials, toxic wastes or materials, or other similar substances, petroleum products or derivatives or any substance subject to regulation by or under any federal, state and local laws and ordinances relating to the protection of the environment or the keeping, use or disposition of environmentally hazardous materials, substances, or wastes, presently in effect or hereafter adopted, all amendments to any of them, and all rules and regulations issued pursuant to any of such laws or ordinances (collectively “Environmental Laws”), nor shall Tenant suffer or permit any Hazardous Materials to be used in any manner not fully in compliance with all Environmental Laws, in the Premises or the Building and appurtenant land or allow the environment to become contaminated with any Hazardous Materials.  Notwithstanding the foregoing, Tenant may handle, store, use or dispose of products containing small quantities of Hazardous Materials (such as aerosol cans containing insecticides, toner for copiers, paints, paint remover and the like) to the extent customary and necessary for the use of the Premises for general office, medical device manufacturing and medical research purposes; provided that Tenant shall always handle, store, use, and dispose of any such Hazardous Materials in a safe and lawful manner and never allow such Hazardous Materials to contaminate the Premises, Building and appurtenant land or the environment.  Tenant shall protect, defend, indemnify and hold each and all of the Landlord Entities (as defined in Article 30) harmless from and against any and all loss, claims, liability or costs (including court costs and attorney’s fees) incurred by reason of any actual or asserted failure of Tenant to fully comply with all applicable Environmental Laws, or the presence, handling, use or disposition in or from the Premises of any Hazardous Materials by Tenant or any Tenant Entity (even though permissible under all applicable Environmental Laws or the provisions of this Lease), or by reason of any actual or asserted failure of Tenant to keep, observe, or perform any provision of this Section 1.2.

 

1.3                               Tenant and the Tenant Entities will be entitled to the non-exclusive use of the common areas of the Building as they exist from time to time during the Term and any renewal periods, including the parking facilities, subject to Landlord’s rules and regulations regarding such use.  However, in no event will Tenant or the Tenant Entities park more vehicles in the parking facilities than four (4) spaces per 1,000 rentable square feet of the Premises leased hereunder.  Tenant shall have the right to mark three (3) parking spaces (the “Reserved Parking Spaces”) adjacent to the visitor entrance to the Premises (as designated by Landlord) as “Reserved” for Tenant’s exclusive parking, provided that Landlord shall have no obligation to monitor or enforce such Reserved Parking Spaces.  The Reserved Parking Spaces shall be made available at no additional cost to Tenant.  Except for the Reserved Parking Spaces, the foregoing shall not be deemed to provide Tenant with an exclusive right to any parking spaces or any guaranty of the availability of any particular parking spaces or any specific number of parking spaces.

 

1.4                               Tenant shall be permitted, at Tenant’s expense, to install Building standard suite entry signage at the Premises, subject to Landlord’s approval of design, size and location, which shall not be unreasonably withheld, conditioned 

 

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or delayed.  Tenant shall be permitted to retain the current monument signage that is installed at the entrance of the office park.  All such signage shall comply with all applicable governmental and private restrictions and requirements.

 

1.5                               Tenant shall have the right, at no additional rental charge, subject to the conditions set for the below, to locate up to five (5) pieces of Satellite Equipment (as hereafter defined) on the roof of the Building.  “Satellite Equipment” is roof top antennas, roof top satellite dishes and other roof top communication devices reasonably approved by Landlord with such approval not to be unreasonably withheld, conditioned or delayed.  Tenant’s right to so locate the Satellite Equipment is subject to the following conditions:  (a) the location of the Satellite Equipment shall be determined by Landlord, (b) the location, screening, size, and all other aspects of the Satellite Equipment must be approved by Landlord and must comply with all applicable zoning, land use, and other laws, ordinances and requirements and all private restrictions and park covenants, (c) all roof penetrations necessary for the installation of the Satellite Equipment shall be performed, at Landlord’s election, solely by Landlord’s contractor at Tenant’s expense, so long as Landlord’s contractor’s fees and expenses for so doing do not exceed market rates, (d) the Satellite Equipment shall be removed at the expiration of the Term, and (e) Tenant shall (i) maintain Satellite Equipment in good working order, (ii) pay for any repair of any damage to the roof of the Building due to such Satellite Equipment and (iii) indemnify and hold Landlord harmless for any claims or liabilities arising out of the installation, maintenance, use or removal of the Satellite Equipment.

 

2.                                      TERM.

 

2.1                               The Term of this Lease shall begin on the Commencement Date and shall terminate on the Termination Date, unless sooner terminated by the provisions of this Lease.  Landlord shall tender possession of the Premises with all the work, if any, to be performed by Landlord pursuant to Exhibit B to this Lease substantially completed.  Tenant shall deliver a punch list of items not completed within thirty (30) days after Landlord tenders possession of the Premises and Landlord agrees to proceed with due diligence to perform its obligations regarding such items.  Tenant shall, at Landlord’s request, execute and deliver a memorandum agreement provided by Landlord in the form of Exhibit C attached hereto, setting forth the actual Commencement Date, Termination Date and, if necessary, a revised rent schedule.  Should Tenant fail to do so within thirty (30) days after Landlord’s written request, the information set forth in such memorandum provided by Landlord shall be conclusively presumed to be agreed and correct.

 

2.2                               Tenant agrees that in the event of the inability of Landlord to deliver possession of the Premises on the Commencement Date for any reason, Landlord shall not be liable for any damage resulting from such inability, but Tenant shall not be liable for any rent until the time when Landlord can, after notice to Tenant, deliver possession of the Premises to Tenant.  No such failure to give possession on the Commencement Date shall affect the other obligations of Tenant under this Lease.

 

2.3                               In the event Landlord permits Tenant, or any agent, employee or contractor of Tenant, to enter, use or occupy the Premises prior to the Commencement Date, such entry, use or occupancy shall be subject to all the provisions of this Lease other than the payment of rent, including, without limitation, Tenant’s compliance with the insurance requirements of Article 11.  Said early possession shall not advance the Termination Date.

 

2.4                               Provided that as of the time of the giving of the Extension Notice (as defined below) and the Commencement Date of the Extension Term, (as defined below) no uncured Event of Default (defined in Section 18 below) exists or would exist but for the passage of time or the giving of notice, or both; then Tenant will have the right to extend the Term of this Lease for two (2) additional terms of five (5) years (each, an “Extension Term”) commencing on the day following the expiration of the Term of this Lease (each, the “Commencement Date of the Extension Term”).  Tenant will give Landlord notice (each, the “Extension Notice”) of its election to extend the Term of this Lease at least 9 months, but not more than 12 months, prior to the scheduled expiration date of the Term of this Lease (the “Notice Period”).  Unless otherwise agreed to by Landlord, if Tenant does not give the Extension Notice during the Notice Period, Tenant’s right to extend the Term of this Lease will automatically terminate.  Time is of the essence as to the giving of each Extension Notice.

 

The Annual Rent payable by Tenant to Landlord during each Extension Term will be the then prevailing market rate for comparable space at the Building and comparable buildings in the vicinity of the Building, taking into account the size of the Premises, the length of the renewal term, market escalations, market concessions and the credit of Tenant.  The Annual Rent will not be reduced by reason of any costs or expenses saved by Landlord by reason of Landlord’s not having to find a new tenant for the Premises (including, without limitation, brokerage commissions, costs of improvements, rent concessions or lost rental income during any vacancy period).

 

The Annual Rent payable by Tenant to Landlord during each Extension Term will be determined in the following way:

 

2

 

(1)                                 Landlord and Tenant shall negotiate in good faith, making themselves available for negotiations, and if prior to Tenant’s delivery of the Extension Notice, Tenant and Landlord have previously agreed in writing upon the Annual Rent for the Extension Term, then the Annual Rent shall be as so agreed to by Landlord and Tenant.  If Landlord and Tenant have not previously agreed to the Annual Rent for the Extension Term when Tenant sends Landlord the Extension Notice, then Landlord shall notify Tenant (“Landlord’s Determination Notice”) of Landlord’s determination of Annual Rent within 30 days of Tenant’s Extension Notice.  If Tenant disagrees with Landlord’s determination, Tenant shall notify Landlord (“Tenant’s Notice of Disagreement”) within ten (10) business days after written receipt of Landlord’s written Determination Notice, either (A) revoking and terminating its election for the Extension Term, or (B) requesting that the Annual Rent be determined by the Brokers, pursuant to the procedure set forth below (the “3 Broker Method”).  If Tenant so elects to have the Annual Rent for the Extension Term determined by the 3 Broker Method, then the Annual Rent shall be determined as follows:  Landlord and Tenant shall, within fifteen (15) days of the date on which Tenant’s Notice of Disagreement was given, each appoint a Broker (as hereinafter defined) for the purpose of determining Annual Rent.  A “Broker” shall mean a Maryland real estate broker, duly licensed for a period in excess of ten (10) years and who has at least ten (10) years’ experience in leasing flex buildings in the greater Baltimore area.  In the event that the two (2) Brokers fail to agree as to the Annual Rent within a period of thirty (30) days after the appointment of the second Broker, the two (2) Brokers shall forthwith appoint a third Broker, who shall make a determination of Annual Rent in the manner hereinafter set forth within fifteen (15) days thereafter.  If the two (2) Brokers fail to agree with such third Broker within such fifteen (15) day period, such third Broker shall be appointed by a judge of the state court located in the county in which the Building is located.  Within five (5) days of the appointment of such third Broker, each party shall submit to the third Broker a written report setting forth its determination of Annual Rent, together with such information on comparable rentals or such other evidence as such party shall deem relevant.  The third Broker shall, within three (3) days following the submission of such written reports, render its decision by selecting the determination of Annual Rent submitted by either the Broker selected by Landlord or the Broker selected by Tenant, which in the judgment of the third Broker, most nearly reflects the Annual Rent for the Premises.  It is expressly understood that such third Broker shall have no power or authority to select any Annual Rent other than the Annual Rent submitted by the Broker for Landlord or submitted by the Broker for Tenant.  The decision of such Brokers or third Broker, as the case may be, shall be final and binding upon the parties, and such decision shall be in writing and a copy shall be delivered simultaneously to Landlord and to Tenant.  Tenant may not rescind its Extension Notice for any reason.  If such Brokers fail to deliver their decision as set forth above prior to the expiration of the initial Term of this Lease, Tenant shall pay to Landlord Annual Rent at the rate then in effect on the last day of the then current Term of this Lease until such decision is so delivered.  If the Annual Rent as determined above is in excess of the actual rent paid, Tenant, within five (5) days of demand, shall pay to Landlord the difference between the actual rent paid and the Annual Rent from the Commencement Date of the Extension Term.  Landlord and Tenant shall each be responsible for and shall pay the fee of the Broker appointed by them, and Landlord and Tenant shall share equally in the fee of the third Broker.

 

Except for the Annual Rent as determined above, Tenant’s occupancy of the Premises during the Extension Term will be on the same terms and conditions (including the payment of Additional Rent) as are in effect immediately prior to the expiration of the initial Term of this Lease.

 

Landlord will have no obligation to refurbish or otherwise improve the Premises for the Extension Term.  The Premises will be tendered on the Commencement Date of the Extension Term in “as-is” condition.

 

If the Lease is extended for the Extension Term, Landlord will prepare, and both parties will execute, an amendment to the Lease confirming the extension of the Lease Term and the other provisions applicable thereto (the “Amendment”).

 

3.                                      RENT.

 

3.1                               Tenant agrees to pay to Landlord the Annual Rent in effect from time to time by paying the Monthly Installment of Rent then in effect on or before the first day of each full calendar month during the Term, except that the first full month’s rent shall be paid upon the execution of this Lease.  The Monthly Installment of Rent in effect at any time shall be one-twelfth (1/12) of the Annual Rent in effect at such time.  Rent for any period during the Term which is less than a full month shall be a prorated portion of the Monthly Installment of Rent based upon the number of days in such month.  Said rent shall be paid to Landlord, without deduction or offset and without notice or demand, at the Rent Payment Address, as set forth on the Reference Pages, or to such other person or at such other place as Landlord may from time to time designate in writing.  If an Event of Default occurs more than twice in any calendar year, Landlord may require by written notice to Tenant that all subsequent rent payments be made by an automatic payment from Tenant’s bank account to Landlord’s account, without cost to Landlord.  Tenant must implement such automatic payment system prior to the next scheduled rent payment or within fifteen (15) business days after Landlord’s notice, whichever is later.  Unless specified in this Lease to the contrary, all amounts and sums payable by Tenant to Landlord pursuant to this Lease shall be deemed additional rent.

 

3

 

3.2                               Tenant recognizes that late payment of any rent or other sum due under this Lease will result in administrative expense to Landlord, the extent of which additional expense is difficult and impractical to ascertain.  Tenant therefore agrees, that if rent or any other sum is not paid when due and payable pursuant to this Lease, a late charge shall be imposed in an amount equal to the greater of:  [*] or other payment.  The amount of the late charge to be paid by Tenant shall be reassessed and added to Tenant’s obligation for each successive month until paid.  Notwithstanding the foregoing, such late charge shall not be imposed for the first late payment of Rent made under this Lease.  The provisions of this Section 3.2 in no way relieve Tenant of the obligation to pay rent or other payments on or before the date on which they are due, nor do the terms of this Section 3.2 in any way affect Landlord’s remedies pursuant to Article 19 of this Lease in the event said rent or other payment is unpaid after date due.

 

4.                                      RENT ADJUSTMENTS.

 

4.1                               For the purpose of this Article 4, the following terms are defined as follows:

 

4.1.1                     Lease Year:  Each calendar year which falls within the Term.

 

4.1.2                     Expenses:  All costs of operation, maintenance, repair, replacement and management of the Building (including the amount of any credits which Landlord may grant to particular tenants of the Building in lieu of providing any standard services or paying any standard costs described in this Section 4.1.2 for similar tenants), as determined in accordance with generally accepted accounting principles, including the following costs by way of illustration, but not limitation: water and sewer charges; insurance charges of or relating to all insurance policies and endorsements deemed by Landlord to be reasonably necessary or desirable and relating in any manner to the protection, preservation, or operation of the Building or any part thereof; utility costs, including, but not limited to, the cost of heat, light, power, steam, gas; waste disposal; the cost of janitorial services; the cost of security and alarm services (including any central station signaling system); costs of cleaning, repairing, replacing and maintaining the common areas, including parking and landscaping, window cleaning costs; labor costs; costs and expenses of managing the Building including management and/or administrative fees; material costs; equipment costs including the cost of maintenance, repair and service agreements and rental and leasing costs; purchase costs of equipment; current rental and leasing costs of items which would be capital items if purchased; tool costs; licenses, permits and inspection fees; wages and salaries; employee benefits and payroll taxes; accounting and legal fees; any sales, use or service taxes incurred in connection therewith. In addition, Landlord shall be entitled to recover, as additional rent (which, along with any other capital expenditures constituting Expenses, Landlord may either include in Expenses or cause to be billed to Tenant along with Expenses and Taxes but as a separate item), Tenant’s Proportionate Share of: (i) an allocable portion of the cost of capital improvement items which are reasonably calculated to reduce operating expenses; (ii) the cost of fire sprinklers and suppression systems and other life safety systems; and (iii) other capital expenses which are required under any governmental laws, regulations or ordinances which were not applicable to the Building at the time of the Lease; but the costs described in this sentence shall be amortized over the longest, useful life of such expenditures in accordance with such reasonable life and amortization schedules as shall be determined by Landlord  based on available manufacturer’s information, in accordance with generally accepted accounting principles, with interest on the unamortized amount at one percent (1%) in excess of the Wall Street Journal prime lending rate announced from time to time.  Expenses shall not include capital improvements (except for those capital improvements set forth above in subsections (i), (ii) and (iii) of this Section 4.1.2), depreciation or amortization of the Building or equipment in the Building except as provided herein, loan principal payments, costs of alterations of tenants’ premises, leasing commissions, interest expenses on long-term borrowings or advertising costs, or capital improvements (except as specifically listed in subparagraphs (i) through (iii) above of this Section 4.1.2.

 

4.1.3                     Taxes:  Real estate taxes and any other taxes, charges and assessments which are levied with respect to the Building or the land appurtenant to the Building, or with respect to any improvements, fixtures and equipment or other property of Landlord, real or personal, located in the Building and used in connection with the operation of the Building and said land, any payments to any ground lessor in reimbursement of tax payments made by such lessor; and all fees, expenses and costs incurred by Landlord in investigating, protesting, contesting or in any way seeking to reduce or avoid increase in any assessments, levies or the tax rate pertaining to any Taxes to be paid by Landlord in any Lease Year.  Taxes shall not include any corporate franchise, or estate, inheritance or net income tax, or tax imposed upon any transfer by Landlord of its interest in this Lease or the Building or any taxes to be paid by Tenant pursuant to Article 28.

 

4.2                               Tenant shall pay as additional rent for each Lease Year Tenant’s Proportionate Share of Expenses and Taxes incurred for such Lease Year.

 

4.3                               The annual determination of Expenses shall be made by Landlord and shall be binding upon Landlord and Tenant, subject to the provisions of this Section 4.3.  During the Term, Tenant may review, at Tenant’s sole cost and expense, 

 

4

 

the itemized books and records supporting such determination in an office of Landlord, or Landlord’s agent, during normal business hours, upon giving Landlord five (5) days advance written notice within [*] days after receipt of such determination, but in no event more often than once in any one (1) calendar year period, subject to execution of a confidentiality agreement acceptable to Landlord, and provided that if Tenant utilizes an independent accountant to perform such review it shall be one of national standing which is reasonably acceptable to Landlord, is not compensated on a contingency basis and is also subject to such confidentiality agreement.  If Tenant fails to object to Landlord’s determination of Expenses within [*] days after receipt, or if any such objection fails to state with specificity the reason for the objection, Tenant shall be deemed to have approved such determination and shall have no further right to object to or contest such determination. In the event that during all or any portion of any Lease Year, the Building is not fully rented and occupied Landlord shall  make an appropriate adjustment in occupancy-related Expenses for such year for the purpose of avoiding distortion of the amount of such Expenses to be attributed to Tenant by reason of variation in total occupancy of the Building, by employing consistent and sound accounting and management principles to determine Expenses that would have been paid or incurred by Landlord had the Building been at least [*] rented and occupied, and the amount so determined shall be deemed to have been Expenses for such Lease Year.

 

4.4                               Prior to the actual determination thereof for a Lease Year, Landlord may from time to time, but no more than twice in any calendar year, estimate Tenant’s liability for Expenses and/or Taxes under Section 4.2, Article 6 and Article 28 for the Lease Year or portion thereof.  Landlord will give Tenant written notification of the amount of such estimate and Tenant agrees that it will pay, by increase of its Monthly Installments of Rent due in such Lease Year, additional rent in the amount of such estimate.  Any such increased rate of Monthly Installments of Rent pursuant to this Section 4.4 shall remain in effect until further written notification to Tenant pursuant hereto.

 

4.5                               When the above mentioned actual determination of Tenant’s liability for Expenses and/or Taxes is made for any Lease Year and when Tenant is so notified in writing, then:

 

4.5.1                     If the total additional rent Tenant actually paid pursuant to Section 4.3 on account of Expenses and/or Taxes for the Lease Year is less than Tenant’s liability for Expenses and/or Taxes, then Tenant shall pay such deficiency to Landlord as additional rent in one lump sum within thirty (30) days of receipt of Landlord’s itemized bill therefor; and

 

4.5.2                     If the total additional rent Tenant actually paid pursuant to Section 4.3 on account of Expenses and/or Taxes for the Lease Year is more than Tenant’s liability for Expenses and/or Taxes, then Landlord shall credit the difference against the then next due payments to be made by Tenant under this Article 4, or, if the Lease has terminated, refund the difference in cash.

 

4.6                               If the Commencement Date is other than January 1 or if the Termination Date is other than December 31, Tenant’s liability for Expenses and Taxes for the Lease Year in which said Date occurs shall be prorated based upon a three hundred sixty-five (365) day year.

 

5.                                      SECURITY DEPOSIT.

 

5.1                               Tenant shall deposit the Security Deposit with Landlord upon the execution of this Lease.  The Security Deposit may be in the form of cash or a Letter of Credit, as provided in Section 5.2 below.  The Security Deposit shall be held by Landlord as security for the faithful performance by Tenant of all the terms, covenants and conditions of this Lease to be kept and performed by Tenant and not as an advance rental deposit or as a measure of Landlord’s damage in case of Tenant’s default.  If Tenant defaults with respect to any provision of this Lease, Landlord may use any part of the Security Deposit for the payment of any rent or any other sum in default, or for the payment of any amount which Landlord may spend or become obligated to spend by reason of Tenant’s default, or to compensate Landlord for any other loss or damage which Landlord may suffer by reason of Tenant’s default.  If any portion is so used, Tenant shall within five (5) days after written demand therefor, deposit with Landlord an amount sufficient to restore the Security Deposit to its original amount and Tenant’s failure to do so shall be a material breach of this Lease.  Except to such extent, if any, as shall be required by law, Landlord shall not be required to keep the Security Deposit separate from its general funds, and Tenant shall not be entitled to interest on such deposit.  If Tenant shall fully and faithfully perform every provision of this Lease to be performed by it, the Security Deposit or any balance thereof shall be returned to Tenant at such time after termination of this Lease when Landlord shall have determined that all of Tenant’s obligations under this Lease have been fulfilled; however, in no event more than sixty (60) days after termination of the Lease.

 

5.2                               The Security Deposit may be in the form of an Irrevocable Standby Letter of Credit in favor of Landlord (the “Letter of Credit”).  Under any circumstance under which Landlord is entitled the use of all or a part of the Security 

 

5

 

Deposit, then, Landlord, in addition to all other rights and remedies provided under the Lease, shall have the right to draw down all or a portion of the full balance of the Letter of Credit and retain the proceeds.  The following terms and conditions shall govern the Letter of Credit:

 

5.2.1                     The Letter of Credit shall be returned to Tenant when Tenant is entitled to return of the Security Deposit.

 

5.2.2                     The Letter of Credit shall be in favor of Landlord, shall be issued by a commercial bank reasonably acceptable to Landlord, shall comply with all of the terms and conditions of this Section 5 and shall otherwise be in form reasonably acceptable to Landlord.  If, at any time while the Letter of Credit is outstanding, (i) the issuing bank is declared insolvent or taken into receivership by the Federal Deposit Insurance Corporation or any other governmental agency, or is closed for any reason, or (ii) Landlord reasonably believes that the issuing bank may be or become insolvent or otherwise unable to meet its obligations, then, not later than thirty (30) days after written notice from Landlord, Tenant shall cause the existing Letter of Credit to be replaced by a new Letter of Credit issued by another commercial bank reasonably acceptable to Landlord, with such new Letter of Credit to comply with all of the terms and conditions of this Section 5.  If Tenant fails to deliver an acceptable replacement Letter of Credit within such 30 day period, Landlord shall have the right to present the existing Letter of Credit to the issuing bank for payment, and the entire sum so obtained shall be paid to Landlord, to be held by Landlord until Tenant would otherwise be entitled to the return of the Letter of Credit, and to be retained by Landlord if a default occurs.

 

5.2.3                     The initial Letter of Credit shall have an expiration date not earlier than fifteen (15) months after the date of issuance.  A draft of the form of Letter of Credit must be submitted to Landlord for its approval prior to issuance.

 

5.2.4                     The Letter of Credit or any replacement Letter of Credit shall be irrevocable for the term thereof and shall automatically renew on a year to year basis until a period ending not earlier than three (3) months after the Termination Date (“End Date”) without any action whatsoever on the part of Landlord; provided that the issuing bank shall have the right not to renew the Letter of Credit by giving written notice to Landlord not less than sixty (60) days prior to the expiration of the then current term of the Letter of Credit that it does not intend to renew the Letter of Credit..  Tenant understands that the election by the issuing bank not to renew the Letter of Credit shall not, in any event, diminish the obligation of Tenant to maintain such an irrevocable Letter of Credit in favor of Landlord through such date.

 

5.2.5                     Landlord, or its then managing agent, shall have the right from time to time to make one or more draws on the Letter of Credit at any time that Landlord has the right to use all or a part of the Security Deposit pursuant to this Section 5, and the proceeds may be applied as permitted under this Section 5.  The Letter of Credit must state that it can be presented for payment at the office of the issuer or an approved correspondent in the metropolitan area in which the Building is located.  Funds may be drawn down on the Letter of Credit upon presentation to the issuing or corresponding bank of Landlord’s (or Landlord’s then managing agent’s) certificate stating as follows:

 

“Beneficiary is entitled to draw on this credit pursuant to that certain Lease dated for reference                 between                      , a              corporation, as Landlord and                     , a      corporation, as Tenant, as amended from time to time, or under that certain Lease dated for reference       between                             , a                 corporation, as Landlord, and                        , a                    corporation, as Tenant, as amended from time to time.”

 

It is understood that if Landlord or its managing agent be a corporation, partnership or other entity, then such statement shall be signed by an officer (if a corporation), a general partner (if a partnership), or any authorized party (if another entity).

 

5.2.6                     Tenant acknowledges and agrees (and the Letter of Credit shall so state) that the Letter of Credit shall be honored by the issuing bank without inquiry as to the truth of the statements set forth in such draw request and regardless of whether the Tenant disputes the content of such statement.

 

5.2.7                     In the event of a transfer of Landlord’s interest in the Premises, Landlord shall have the right to transfer the Letter of Credit to the transferee and Tenant shall take whatever action and pay any bank fees necessary to effectuate such transfer and thereupon the Landlord shall, without any further agreement between the parties, be released by Tenant from all liability therefore, and it is agreed that the provisions hereof shall apply to every transfer or assignment of said Letter of Credit to a new landlord.

 

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5.2.8                     Without limiting the generality of the foregoing, if the Letter of Credit expires earlier than the End Date, or the issuing bank notifies Landlord that it will not renew the Letter of Credit, Landlord shall accept a renewal thereof or substitute letter of credit (such renewal or substitute Letter of Credit to be in effect not later than thirty (30) days prior to the expiration of the expiring Letter of Credit), irrevocable and automatically renewable as above provided to the End Date upon the same terms as the expiring Letter of Credit or upon such other terms as may be acceptable to Landlord.  However, if (i) the Letter of Credit is not timely renewed, or (ii) a substitute Letter of Credit, complying with all of the terms and conditions of this Section is not timely received, then Landlord may present the expiring Letter of Credit to the issuing bank, and the entire sum so obtained shall be paid to Landlord, to be held by Landlord in accordance with Article 5 of the Lease.  Notwithstanding the foregoing, Landlord shall be entitled to receive from Tenant a fee in an amount not to exceed $500.00 for attorneys’ fees incurred in connection with the review of any proposed substitute Letter of Credit pursuant to this subparagraph.

 

[*]

 

6.                                      ALTERATIONS.

 

6.1                               Except for those, if any, specifically provided for in Exhibit B to this Lease, Tenant shall not make or suffer to be made any alterations, additions, or improvements, including, but not limited to, the attachment of any fixtures or equipment in, on, or to the Premises or any part thereof or the making of any improvements as required by Article 7, without the prior written consent of Landlord.  When applying for such consent, Tenant shall, if requested by Landlord, furnish complete plans and specifications for such alterations, additions and improvements. Landlord’s consent shall not be unreasonably withheld with respect to alterations which (i) are not structural in nature, (ii) are not visible from the exterior of the Building, (iii) do not affect or require modification of the Building’s electrical, mechanical, plumbing or other systems (exclusive of the HVAC systems), and (iv) in aggregate do not cost more than $[*] per rentable square foot of that portion of the Premises affected by the alterations in question.

 

6.2                               In the event Landlord consents to the making of any such alteration, addition or improvement by Tenant, the same shall be made at Tenant’s sole option by using either Landlord’s contractor or a contractor reasonably approved by Landlord, in either event at Tenant’s sole cost and expense.  If Tenant shall employ any contractor other than Landlord’s contractor and such other contractor or any subcontractor of such other contractor shall employ any non-union labor or supplier, Tenant shall be responsible for and hold Landlord harmless from any and all delays, damages and extra costs suffered by Landlord as a result of any dispute with any labor unions concerning the wage, hours, terms or conditions of the employment of any such labor.  With respect to alterations to be made by Tenant to the Premises, Landlord may charge Tenant third-party costs actually incurred by Landlord in connection with the proposed work and the design thereof, with all such amounts being due [*] after Landlord’s demand.  In the event that, at Tenant’s request, Landlord serves as the construction manager for any alterations to the Premises, then Landlord may charge Tenant a construction management fee (“CM Fee”) not to exceed [*] of the cost of such work, to cover its overhead as it relates to such proposed work with such CM Fee payable by Tenant to Landlord within [*] days after billing of same.  No CM Fee shall be assessed by Landlord on cosmetic alterations, such as paint and carpet.

 

6.3                               All alterations, additions or improvements proposed by Tenant shall be constructed in accordance with all government laws, ordinances, rules and regulations, using Building standard materials where applicable, and Tenant shall, prior to construction, provide the additional insurance required under Article 11 in such case, and also all such assurances to Landlord as Landlord shall reasonably require to assure payment of the costs thereof, including but not limited to, notices of non-responsibility, waivers of lien, surety company performance bonds and funded construction escrows and to protect Landlord and the Building and appurtenant land against any loss from any mechanic’s, materialmen’s or other liens.  Tenant shall pay in addition to any sums due pursuant to Article 4, any increase in real estate taxes attributable to any such alteration, addition or improvement for so long, during the Term, as such increase is ascertainable; at Landlord’s election said sums shall be paid in the same way as sums due under Article 4.

 

7.                                      REPAIR.

 

7.1                               Landlord shall have no obligation to alter, remodel, improve, repair, decorate or paint the Premises, except as specified in Exhibit B if attached to this Lease and except that Landlord shall repair and maintain the structural portions of the roof, foundation and walls of the Building.  By taking possession of the Premises, Tenant accepts them as being in good order, condition and repair and in the condition in which Landlord is obligated to deliver them.  It is hereby understood and agreed that no representations respecting the condition of the Premises or the Building have been made by Landlord to Tenant, except as specifically set forth in this Lease.  Landlord shall not be liable for any failure to make any repairs or to

 

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perform any maintenance unless 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.

 

7.2                               Tenant shall at its own cost and expense keep and maintain all parts of the Premises and improvements as are within the exclusive control of Tenant in good condition, promptly making all necessary repairs and replacements, whether ordinary or extraordinary, with materials and workmanship of the same character, kind and quality as the original (including, but not limited to, repair and replacement of all fixtures installed by Tenant, water heaters serving the Premises, windows, glass and plate glass, doors, skylights, interior walls and finish work, floors and floor coverings, heating and air conditioning systems serving the Premises (except as provided in Section 7.4(b) below), electrical systems and fixtures, sprinkler systems, dock boards, truck doors, dock bumpers, plumbing work and fixtures, and performance of regular removal of trash and debris).  Tenant as part of its obligations hereunder shall keep the Premises in a clean and sanitary condition.  Tenant will, as far as possible keep all such parts of the Premises from deterioration due to ordinary wear and from falling temporarily out of repair, and upon termination of this Lease in any way Tenant will yield up the Premises to Landlord in good condition and repair, loss by fire or other casualty excepted (but not excepting any damage to glass).  Tenant shall, at its own cost and expense, repair any damage to the Premises or the Building resulting from and/or caused in whole or in part by the negligence or misconduct of Tenant, its agents, employees, contractors, invitees, or any other person entering upon the Premises as a result of Tenant’s business activities or caused by Tenant’s default hereunder.

 

7.3                               Except as provided in Article 22, there shall be no abatement of rent and no liability of Landlord by reason of any injury to or interference with Tenant’s business arising from the making of any repairs, alterations or improvements in or to any portion of the Building or the Premises or to fixtures, appurtenances and equipment in the Building, provided that Landlord shall comply with all terms of Section 17.1 of this Lease when entering the Premises to make any repairs, replacements or improvements to the Premises or Building.  Except to the extent, if any, prohibited by law, Tenant waives the right to make repairs at Landlord’s expense under any law, statute or ordinance now or hereafter in effect.

 

7.4                               (a)                                 Tenant shall, [*] enter into a regularly scheduled preventive maintenance/service contract with a maintenance contractor approved by Landlord for servicing all heating and air conditioning systems and equipment serving the Premises (and at Landlord’s request a copy thereof shall be furnished to Landlord).  The service contract must include all services suggested by the equipment manufacturer in the operation/maintenance manual and must become effective within thirty (30) days of the date Tenant takes possession of the Premises. Should Tenant fail to do so, Landlord may, upon notice to Tenant, enter into such a maintenance/ service contract on behalf of Tenant or perform the work and in either case, charge Tenant the cost thereof along with a reasonable amount for Landlord’s overhead.

 

(b)                                 Landlord shall make all repairs and replacements, not otherwise covered by Tenant’s maintenance/service contract,  to those HVAC units serving the Premises which are listed on Exhibit E attached hereto and any replacements of such HVAC units listed in Exhibit E attached hereto, at Landlord’s sole cost and expense when in the opinion of Landlord’s independent licensed HVAC contractor, reasonably exercised, such repair or replacement is necessary, so long as Tenant has continuously complied with Section 7.4(a) of this Lease, and further, that the need for such repair or replacement does not arise from Tenant’s negligence, abuse or misuse.  Tenant shall be solely responsible for the repair and replacement of any HVAC units serving the Premises which are not (i) listed on Exhibit E attached hereto, or (ii) replacements of the HVAC units listed on Exhibit E attached hereto.

 

8.                                      LIENS.  Tenant shall keep the Premises, the Building and appurtenant land and Tenant’s leasehold interest in the Premises free from any liens arising out of any services, work or materials performed, furnished, or contracted for by Tenant, or obligations incurred by Tenant.  In the event that Tenant fails, within ten (10) days following the imposition of any such lien, to either cause the same to be released of record or provide Landlord with insurance against the same issued by a major title insurance company or such other protection against the same as Landlord shall accept (such failure to constitute an Event of Default), Landlord shall have the right to cause the same to be released by such means as it shall deem proper, including payment of the claim giving rise to such lien.  All such sums paid by Landlord and all expenses incurred by it in connection therewith shall be payable to it by Tenant within five (5) days of Landlord’s demand.

 

9.                                      ASSIGNMENT AND SUBLETTING.

 

9.1                               Except as otherwise provided in this Section 9, Tenant shall not have the right to assign or pledge this Lease or to sublet the whole or any part of the Premises whether voluntarily or by operation of law, or permit the use or occupancy of the Premises by anyone other than Tenant, and shall not make, suffer or permit such assignment, subleasing or occupancy without the prior written consent of Landlord, such consent not to be unreasonably withheld, conditioned or delayed, and said restrictions shall be binding upon any and all assignees of the Lease and subtenants of the Premises.  In the event Tenant desires to sublet, or permit such occupancy of, the Premises, or any portion thereof, or assign this Lease, Tenant

 

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shall give written notice thereof to Landlord at least thirty (30) days prior to the proposed commencement date of such subletting or assignment, which notice shall set forth the name of the proposed subtenant or assignee, the relevant terms of any sublease or assignment and copies of financial reports and other relevant financial information of the proposed subtenant or assignee.

 

9.2                               Notwithstanding any assignment or subletting, permitted or otherwise, Tenant shall at all times remain directly, primarily and fully responsible and liable for the payment of the rent specified in this Lease and for compliance with all of its other obligations under the terms, provisions and covenants of this Lease.  Upon the occurrence of an Event of Default, if the Premises or any part of them are then assigned or sublet, Landlord, in addition to any other remedies provided in this Lease or provided by law, may, at its option, collect directly from such assignee or subtenant all rents due and becoming due to Tenant under such assignment or sublease and apply such rent against any sums due to Landlord from Tenant under this Lease, and no such collection shall be construed to constitute a novation or release of Tenant from the further performance of Tenant’s obligations under this Lease.

 

9.3                               In the event that Tenant sells, sublets, assigns or transfers this Lease other than as part of an Affiliated Transaction (as defined in Section 9.7 below), Tenant shall pay to Landlord as additional rent an amount equal to [*] of any Increased Rent (as defined below), less the Costs Component (as defined below), when and as such Increased Rent is received by Tenant.  As used in this Section, “Increased Rent” shall mean the excess of (i) all rent and other consideration which Tenant is entitled to receive by reason of any sale, sublease, assignment or other transfer of this Lease, over (ii) the rent otherwise payable by Tenant under this Lease at such time.  For purposes of the foregoing, any consideration received by Tenant in form other than cash shall be valued at its fair market value as determined by Landlord in good faith.  The “Costs Component” is that amount which, if paid monthly, would fully amortize on a straight-line basis, over the entire period for which Tenant is to receive Increased Rent, the reasonable costs incurred by Tenant for leasing commissions and tenant improvements in connection with such sublease, assignment or other transfer.

 

9.4                               Notwithstanding any other provision hereof, it shall be considered reasonable for Landlord to withhold its consent to any assignment of this Lease or sublease of any portion of the Premises if at the time of either Tenant’s notice of the proposed assignment or sublease or the proposed commencement date thereof, there shall exist any uncured default of Tenant or matter which will become a default of Tenant with passage of time unless cured, or if the proposed assignee or sublessee is an entity:  (a) with which Landlord is already in negotiation; (b) is already an occupant of the Building unless Landlord is unable to provide the amount of space required by such occupant; (c) is a governmental agency; (d) is incompatible with the character of occupancy of the Building; (e) would subject the Premises to a use which would (i) violate any exclusive right granted to another tenant of the Building; (ii) require any addition to or modification of the Premises or the Building in order to comply with building code or other governmental requirements; or, (iii) involve a violation of Section 1.2.  Tenant expressly agrees that for the purposes of any statutory or other requirement of reasonableness on the part of Landlord, Landlord’s refusal to consent to any assignment or sublease for any of the reasons described in this Section 9.4 (a) through (e) shall be conclusively deemed to be reasonable.

 

9.5                               Upon any request to assign or sublet, Tenant will pay to Landlord the Assignment/Subletting Fee plus, on demand, a sum equal to all of Landlord’s reasonable incurred costs, including reasonable attorney’s fees, incurred in investigating and considering any proposed or purported assignment or pledge of this Lease or sublease of any of the Premises, regardless of whether Landlord shall consent to, refuse consent, or determine that Landlord’s consent is not required for, such assignment, pledge or sublease.  Any purported sale, assignment, mortgage, transfer of this Lease or subletting which does not comply with the provisions of this Article 9 shall be void.

 

9.6                               Except as expressly provided below in Section 9.7, if Tenant is a corporation, limited liability company, partnership or trust, any transfer or transfers of or change or changes within any twelve (12) month period in the number of the outstanding voting shares of the corporation or limited liability company, the general partnership interests in the partnership or the identity of the persons or entities controlling the activities of such partnership or trust resulting in the persons or entities owning or controlling a majority of such shares, partnership interests or activities of such partnership or trust at the beginning of such period no longer having such ownership or control shall be regarded as equivalent to an assignment of this Lease to the persons or entities acquiring such ownership or control and shall be subject to all the provisions of this Article 9 to the same extent and for all intents and purposes as though such an assignment.

 

9.7                               Notwithstanding the terms of Section 9.6 or any other provision of this Section 9, Tenant, without Landlord’s prior written consent thereto (but upon notice to Landlord, and subject to the further terms and conditions hereinafter set forth), shall have the right to assign this Lease or sublease the Premises to a subsidiary or affiliate corporation or subsidiary or affiliate business entity (an “Affiliated Transaction”), provided that:  (i) as to an assignment of this Lease, the successor entity (“Successor”) shall have effectively assumed all of Tenant’s obligations and liabilities, including those under

 

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this Lease, by operation of law, or by appropriate instrument of assignment or sublease; (ii) Tenant originally named herein shall remain liable and responsible for the observance and performance of all the terms and conditions of this Lease for the balance of the Term; (iii) Successor shall use the Premises solely for the Uses permitted hereunder; (iv) Successor shall have a net worth which is [*]; and (v) a complete and accurate copy of all instruments of assignment/sublease is to be delivered to Landlord not later than thirty (30) days after the effective date thereof.

 

10.                               INDEMNIFICATION.  None of the Landlord Entities shall be liable and Tenant hereby waives all claims against them for any damage to any property or any injury to any person in or about the Premises or the Building by or from any cause whatsoever (including without limiting the foregoing, rain or water leakage of any character from the roof, windows, walls, basement, pipes, plumbing works or appliances, the Building not being in good condition or repair, gas, fire, oil, electricity or theft), except to the extent caused by or arising from the gross negligence or willful misconduct of Landlord or its agents, employees or contractors.  Tenant shall protect, indemnify and hold the Landlord Entities harmless from and against any and all loss, claims, liability or costs (including court costs and reasonable attorney’s fees) incurred by reason of (a) any damage to any property or any injury (including but not limited to death) to any person occurring in, on or about the Premises or the Building to the extent that such injury or damage shall be caused by or arise from any actual or alleged act, neglect, fault, or omission by or of Tenant or any Tenant Entity to meet any standards imposed by any duty with respect to the injury or damage; (b) the conduct or management of any work or thing whatsoever done by the Tenant in or about the Premises or from transactions of the Tenant concerning the Premises; (c) Tenant’s failure to comply with any and all governmental laws, ordinances and regulations applicable to the condition or use of the Premises or its occupancy; or (d) any breach or default on the part of Tenant in the performance of any covenant or agreement on the part of the Tenant to be performed pursuant to this Lease.  The provisions of this Article shall survive the termination of this Lease with respect to any claims or liability accruing prior to such termination.

 

Landlord shall protect, indemnify and hold Tenant and the Tenant Entities harmless from and against any and all loss, claims, liability or costs (including court costs and reasonable attorney’s fees) incurred by reason of any damage to any property or any injury (including, but not limited to, death) to any person occurring in, on or about the Premises or Building to the extent that such injury or damage shall be caused by or arise from Landlord’s gross negligence or willful misconduct.  The provisions of this Article shall survive the termination of this Lease with respect to any claims or liability accruing prior to such termination.

 

11.                               INSURANCE.

 

11.1                        Tenant shall keep in force throughout the Term: (a) a Commercial General Liability insurance policy or policies to protect the Landlord Entities against any liability to the public or to any invitee of Tenant or a Landlord Entity incidental to the use of or resulting from any accident occurring in or upon the Premises with a limit of not less than $1,000,000 per occurrence and not less than $2,000,000 in the annual aggregate, or such larger amount as Landlord may prudently require from time to time, covering bodily injury and property damage liability and $1,000,000 products/completed operations aggregate; (b) Business Auto Liability covering owned, non-owned and hired vehicles with a limit of not less than $1,000,000 per accident; (c) Worker’s Compensation Laws with limits as required by statute and Employers Liability with limits of $500,000 each accident, $500,000 disease policy limit, $500,000 disease—each employee; (d) All Risk or Special Form coverage protecting Tenant against loss of or damage to Tenant’s alterations, additions, improvements, carpeting, floor coverings, panelings, decorations, fixtures, inventory and other business personal property situated in or about the Premises to the full replacement value of the property so insured; and, (e) Business Interruption Insurance with limit of liability representing loss of at least approximately six (6) months of income.

 

11.2                        The aforesaid policies shall (a) be provided at Tenant’s expense; (b) name the Landlord Entities as additional insureds (General Liability) and loss payee (Property—Special Form); (c) be issued by an insurance company with a minimum Best’s rating of “A-:VII” during the Term; and (d) provide that said insurance shall not be canceled unless thirty (30) days prior written notice (ten days for non-payment of premium) shall have been given to Landlord; a certificate of Liability insurance on ACORD Form 25 and a certificate of Property insurance on ACORD Form 27 shall be delivered to Landlord by Tenant upon the Commencement Date and at least thirty (30) days prior to each renewal of said insurance.

 

11.3                        Whenever Tenant shall undertake any alterations, additions or improvements in, to or about the Premises (“Work”) the aforesaid insurance protection must extend to and include injuries to persons and damage to property arising in connection with such Work, without limitation including liability under any applicable structural work act, and such other insurance as Landlord shall require; and the policies of or certificates evidencing such insurance must be delivered to Landlord prior to the commencement of any such Work.

 

12.                               WAIVER OF SUBROGATION.  [*] Tenant and Landlord hereby mutually waive their respective rights of recovery against each other for any loss insured by fire, extended coverage, All Risks or other insurance now or hereafter

 

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existing for the benefit of the respective party but only to the extent of the net insurance proceeds payable under such policies.  Each party shall obtain any special endorsements required by their insurer to evidence compliance with the aforementioned waiver.

 

13.                               SERVICES AND UTILITIES.  Tenant shall pay for all water, gas, heat, light, power, telephone, sewer, sprinkler system charges and other utilities and services used on or from the Premises, together with any taxes, penalties, and surcharges or the like pertaining thereto and any maintenance charges for utilities.  Tenant shall furnish all electric light bulbs, tubes and ballasts, battery packs for emergency lighting and fire extinguishers.  If any such services are not separately metered to Tenant, Tenant shall pay such proportion of all charges jointly metered with other premises as determined by Landlord to be reasonable. Any such charges paid by Landlord and assessed against Tenant shall be immediately payable to Landlord on demand and shall be additional rent hereunder.  Tenant will not, without the written consent of Landlord, contract with a utility provider to service the Premises with any utility, including, but not limited to, telecommunications, electricity, water, sewer or gas, which is not previously providing such service to other tenants in the Building.  Landlord shall in no event be liable for any interruption or failure of utility services on or to the Premises.

 

14.                               HOLDING OVER.  Tenant shall pay Landlord for each day Tenant retains possession of the Premises or part of them after termination of this Lease by lapse of time or otherwise at the rate (“Holdover Rate”) which shall be the Applicable Percentage (defined below) of the amount of the Annual Rent for the last period prior to the date of such termination plus all Rent Adjustments under Article 4, prorated on a daily basis, and also pay all damages sustained by Landlord by reason of such retention.  If Landlord gives notice to Tenant of Landlord’s election to such effect, such holding over shall constitute renewal of this Lease for a period from month to month at the Holdover Rate, but if the Landlord does not so elect, no such renewal shall result notwithstanding acceptance by Landlord of any sums due hereunder after such termination; and instead, a tenancy at sufferance at the Holdover Rate shall be deemed to have been created.  In any event, no provision of this Article 14 shall be deemed to waive Landlord’s right of reentry or any other right under this Lease or at law.

 

[*]

 

15.                               SUBORDINATION.  Without the necessity of any additional document being executed by Tenant for the purpose of effecting a subordination, this Lease shall be subject and subordinate at all times to ground or underlying leases and to the lien of any mortgages or deeds of trust now or hereafter placed on, against or affecting the Building, Landlord’s interest or estate in the Building, or any ground or underlying lease; provided, however, that if the lessor, mortgagee, trustee, or holder of any such mortgage or deed of trust elects to have Tenant’s interest in this Lease be superior to any such instrument, then, by notice to Tenant, this Lease shall be deemed superior, whether this Lease was executed before or after said instrument.  Notwithstanding the foregoing, Tenant covenants and agrees to execute and deliver within ten (10) days of Landlord’s request such further instruments evidencing such subordination or superiority of this Lease as may be required by Landlord provided the non-disturbance provisions set forth in this Section 15 are set forth therein.

 

Upon Landlord’s receipt of Tenant’s written request, Landlord shall use commercially reasonable efforts to obtain a customary subordination, attornment and non-disturbance agreement, that recognizes this Lease (“SNDA”) from the holder of any mortgage or deed of trust encumbering the Building, provided that (a) Tenant shall pay all fees, charges and legal fees of the lender [*] in connection with the SNDA, and (b) Landlord shall not be liable to Tenant in any manner for its failure to obtain such SNDA.

 

Landlord hereby represents and warrants to Tenant that, as of the Lease Reference Date, the Premises are not subject to any ground lease or mortgage.

 

The subordination and attornment provisions set forth above in this Section 15 are subject, however, to the express condition that so long as Tenant is not in default in its obligations hereunder beyond applicable grace periods, (i) Tenant will not be made a party in any action or proceeding by any Lender (as defined below) or senior party in interest to recover possession of the Building and/or the Premises or to the foreclosure of any mortgage, (ii) Tenant’s possession of the Premises shall not be disturbed, and (iii) this Lease shall not be cancelled or terminated and shall continue in full force and effect upon any foreclosure under a Mortgage or recovery of possession (a “Foreclosure”) upon all of the terms and conditions set forth in this Lease, provided that following a Foreclosure, Lender shall not be (A) liable for any act or omission of Landlord, except for defaults relating to the physical condition of the Premises that are of an ongoing or continuing nature of which Lender has received written notice and has failed to cure within the applicable cure period, (B) liable to refund to Tenant any security deposit which Tenant shall have paid to Landlord, unless such security deposit has been delivered to Lender; or (C) bound by any rent or additional rent which Tenant might have paid for more than the current month to Landlord; or (D) bound by any amendment or modification of the Lease made without Lender’s prior written consent; or (E) subject to any rent offsets or other offsets or defenses which Tenant might have against the Landlord; or (F) liable for consequential

 

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damages.  The term “mortgage” whenever used in this Lease shall be deemed to include deeds of trust, security assignments and any other encumbrances, and any reference to the “holder” of a mortgage or a “Lender” shall be deemed to mean and include the beneficiary under a mortgage or deed of trust and any successor owner of the Building pursuant to a Foreclosure.

 

16.                               RULES AND REGULATIONS.  Tenant shall faithfully observe and comply with all the rules and regulations as set forth in Exhibit D to this Lease and all reasonable and non-discriminatory modifications of and additions to them from time to time put into effect by Landlord.  Landlord shall not be responsible to Tenant for the non-performance by any other tenant or occupant of the Building of any such rules and regulations, but shall enforce the rules and regulations in a non-discriminatory manner.  [*].

 

17.                               REENTRY BY LANDLORD.

 

17.1                        Landlord reserves and shall at all times have the right, upon 24 hours’ notice and with an escort of Tenant (except in the case of an emergency, in which event no such prior notice or escort shall be required) to re-enter the Premises to inspect the same, to show said Premises to prospective purchasers, mortgagees or, within the last 6 months of the Term, tenants, and with advance notice and coordination of Tenant to alter, improve or repair the Premises and any portion of the Building, without abatement of rent, and may for that purpose erect, use and maintain scaffolding, pipes, conduits and other necessary structures and open any wall, ceiling or floor in and through the Building and Premises where reasonably required by the character of the work to be performed, provided entrance to the Premises shall not be blocked thereby, and further provided that the business of Tenant shall not be interfered with or interrupted unreasonably.  Landlord shall follow all reasonable instructions and guidelines of Tenant in connection with any such re-entry, including without limitation, Tenant’s guidelines and rules with respect to accessing cleanrooms, laboratory space, manufacturing space and other similar areas.  Landlord shall have the right at any time to change the arrangement and/or locations of entrances, or passageways, doors and doorways, and corridors, windows, elevators, stairs, toilets or other public parts of the Building and to change the name, number or designation by which the Building is commonly known.  In the event that Landlord damages any portion of any wall or wall covering, ceiling, or floor or floor covering within the Premises, Landlord shall repair or replace the damaged portion to match the original as nearly as commercially reasonable but shall not be required to repair or replace more than the portion actually damaged. Tenant hereby waives any claim for damages for any inconvenience to or interference with Tenant’s business, any loss of occupancy or quiet enjoyment of the Premises, and any other loss occasioned by any action of Landlord authorized by this Article 17.

 

17.2                        For each of the aforesaid purposes, Landlord shall at all times have and retain a key with which to unlock all of the doors in the Premises, excluding Tenant’s vaults and safes or special security areas (designated in advance), and Landlord shall have the right to use any and all means which Landlord may deem proper to open said doors in an emergency to obtain entry to any portion of the Premises.  As to any portion to which access cannot be had by means of a key or keys in Landlord’s possession, Landlord is authorized in the event of an emergency to gain access by such means as Landlord shall elect and the cost of repairing any damage occurring in doing so shall be borne by Tenant and paid to Landlord within five (5) days of Landlord’s demand.

 

18.                               DEFAULT.

 

18.1                        Except as otherwise provided in Article 20, the following events shall be deemed to be Events of Default under this Lease:

 

18.1.1              Tenant shall fail to pay when due any sum of money becoming due to be paid to Landlord under this Lease, whether such sum be any installment of the rent reserved by this Lease, any other amount treated as additional rent under this Lease, or any other payment or reimbursement to Landlord required by this Lease, whether or not treated as additional rent under this Lease, and such failure shall continue for a period of five (5) business days after written notice that such payment was not made when due.

 

18.1.2              Tenant shall fail to comply with any term, provision or covenant of this Lease which is not provided for in another Section of this Article and shall not cure such failure within [*] days (forthwith, if the failure involves a hazardous condition) after written notice of such failure to Tenant provided, however, that such failure shall not be an event of default if such failure could not reasonably be cured during such [*] day period, Tenant has commenced the cure within such [*] day period and thereafter is diligently pursuing such cure to completion, but the total aggregate cure period shall not exceed ninety (90) days.

 

18.1.3              Unless agreed to by Landlord, Tenant shall fail to vacate the Premises immediately upon termination of this Lease, by lapse of time or otherwise, or upon termination of Tenant’s right to possession only.

 

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18.1.4              Tenant shall become insolvent, admit in writing its inability to pay its debts generally as they become due, file a petition in bankruptcy or a petition to take advantage of any insolvency statute, make an assignment for the benefit of creditors, make a transfer in fraud of creditors, apply for or consent to the appointment of a receiver of itself or of the whole or any substantial part of its property, or file a petition or answer seeking reorganization or arrangement under the federal bankruptcy laws, as now in effect or hereafter amended, or any other applicable law or statute of the United States or any state thereof.

 

18.1.5              A court of competent jurisdiction shall enter an order, judgment or decree adjudicating Tenant bankrupt, or appointing a receiver of Tenant, or of the whole or any substantial part of its property, without the consent of Tenant, or approving a petition filed against Tenant seeking reorganization or arrangement of Tenant under the bankruptcy laws of the United States, as now in effect or hereafter amended, or any state thereof, and such order, judgment or decree shall not be vacated or set aside or stayed within sixty (60) days from the date of entry thereof.

 

18.1.6.                 If prior to the Commencement Date, Tenant defaults under its sublease or other occupancy agreement pursuant to which Tenant occupies the Premises (the “Sublease”), and such default continues past all applicable notice or grace periods, or if Tenant’s occupancy of the Premises is terminated under such Sublease, or Tenant abandons the Premises.

 

19.                               REMEDIES.

 

19.1                        Except as otherwise provided in Article 20, upon the occurrence of any of the Events of Default described or referred to in Article 18, Landlord shall have the option to pursue any one or more of the following remedies without any notice or demand whatsoever, concurrently or consecutively and not alternatively:

 

19.1.1              Landlord may, at its election, terminate this Lease or terminate Tenant’s right to possession only, without terminating the Lease.

 

19.1.2              Upon any termination of this Lease, whether by lapse of time or otherwise, or upon any termination of Tenant’s right to possession without termination of the Lease, Tenant shall surrender possession and vacate the Premises immediately, and deliver possession thereof to Landlord, and Tenant hereby grants to Landlord full and free license to enter into and upon the Premises in such event and to repossess Landlord of the Premises as of Landlord’s former estate and to expel or remove Tenant and any others who may be occupying or be within the Premises and to remove Tenant’s signs and other evidence of tenancy and all other property of Tenant therefrom without being deemed in any manner guilty of trespass, eviction or forcible entry or detainer, and without incurring any liability for any damage resulting therefrom, Tenant waiving any right to claim damages for such re-entry and expulsion, and without relinquishing Landlord’s right to rent or any other right given to Landlord under this Lease or by operation of law.

 

19.1.3              Upon any termination of this Lease, whether by lapse of time or otherwise, Landlord shall be entitled to recover as damages, all rent, including any amounts treated as additional rent under this Lease, and other sums due and payable by Tenant on the date of termination, plus as liquidated damages and not as a penalty, an amount equal to the sum of:  (a) an amount equal to the then present value of the rent reserved in this Lease for the residue of the stated Term of this Lease including any amounts treated as additional rent under this Lease and all other sums provided in this Lease to be paid by Tenant, minus the fair rental value of the Premises for such residue; (b) the value of the time and expense necessary to obtain a replacement tenant or tenants, and the estimated expenses described in Section 19.1.4 relating to recovery of the Premises, preparation for reletting and for reletting itself; and (c) the cost of performing any other covenants which would have otherwise been performed by Tenant.

 

19.1.4              Upon any termination of Tenant’s right to possession only without termination of the Lease:

 

19.1.4.1    Neither such termination of Tenant’s right to possession nor Landlord’s taking and holding possession thereof as provided in Section 19.1.2 shall terminate the Lease or release Tenant, in whole or in part, from any obligation, including Tenant’s obligation to pay the rent, including any amounts treated as additional rent, under this Lease for the full Term, and if Landlord so elects Tenant shall continue to pay to Landlord the entire amount of the rent as and when it becomes due, including any amounts treated as additional rent under this Lease, for the remainder of the Term plus any other sums provided in this Lease to be paid by Tenant for the remainder of the Term.

 

19.1.4.2    Landlord shall use commercially reasonable efforts to relet the Premises or portions thereof to the extent required by applicable law.  Landlord and Tenant agree that nevertheless Landlord shall at most be required to use only the same efforts Landlord then uses to lease premises in the Building generally and that in any case that

 

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Landlord shall not be required to give any preference or priority to the showing or leasing of the Premises or portions thereof over any other space that Landlord may be leasing or have available and may place a suitable prospective tenant in any such other space regardless of when such other space becomes available and that Landlord shall have the right to relet the Premises for a greater or lesser term than that remaining under this Lease, the right to relet only a portion of the Premises, or a portion of the Premises or the entire Premises as a part of a larger area, and the right to change the character or use of the Premises.  In connection with or in preparation for any reletting, Landlord may, but shall not be required to, make repairs, alterations and additions in or to the Premises and redecorate the same to the extent Landlord reasonably deems necessary or desirable, and Tenant shall pay the cost thereof, together with Landlord’s reasonable expenses of reletting, including, without limitation, any commission incurred by Landlord, within five (5) days of Landlord’s demand.  Landlord shall not be required to observe any instruction given by Tenant about any reletting or accept any tenant offered by Tenant unless such offered tenant has a credit-worthiness acceptable to Landlord and leases the entire Premises upon terms and conditions including a rate of rent (after giving effect to all expenditures by Landlord for tenant improvements, broker’s commissions and other leasing costs) all no less favorable to Landlord than as called for in this Lease, nor shall Landlord be required to make or permit any assignment or sublease for more than the current term or which Landlord would not be required to permit under the provisions of Article 9.

 

19.1.4.3    Until such time as Landlord shall elect to terminate the Lease and shall thereupon be entitled to recover the amounts specified in such case in Section 19.1.3, Tenant shall pay to Landlord upon demand the full amount of all rent, including any amounts treated as additional rent under this Lease and other sums reserved in this Lease for the remaining Term, together with the costs of repairs, alterations, additions, redecorating and Landlord’s expenses of reletting and the collection of the rent accruing therefrom (including reasonable attorney’s fees and broker’s commissions), as the same shall then be due or become due from time to time, less only such consideration as Landlord may have received from any reletting of the Premises; and Tenant agrees that Landlord may file suits from time to time to recover any sums falling due under this Article 19 as they become due.  Any proceeds of reletting by Landlord in excess of the amount then owed by Tenant to Landlord from time to time shall be credited against Tenant’s future obligations under this Lease but shall not otherwise be refunded to Tenant or inure to Tenant’s benefit.

 

19.2                        Upon the occurrence of an Event of Default, Landlord may (but shall not be obligated to) cure such default at Tenant’s sole expense.  Without limiting the generality of the foregoing, Landlord may, at Landlord’s option, enter into and upon the Premises if Landlord determines in its reasonable discretion that Tenant is not acting within a commercially reasonable time to maintain, repair or replace anything for which Tenant is responsible under this Lease or to otherwise effect compliance with its obligations under this Lease and correct the same, without being deemed in any manner guilty of trespass, eviction or forcible entry and detainer and without incurring any liability for any damage or interruption of Tenant’s business resulting therefrom and Tenant agrees to reimburse Landlord within five (5) days of Landlord’s demand as additional rent, for any reasonable expenses which Landlord may incur in thus effecting compliance with Tenant’s obligations under this Lease, plus interest from the date of expenditure by Landlord at the Wall Street Journal prime rate.

 

19.3                        Tenant understands and agrees that in entering into this Lease, Landlord is relying upon receipt of all the Annual and Monthly Installments of Rent to become due with respect to all the Premises originally leased hereunder over the full Initial Term of this Lease for amortization, including interest at the Amortization Rate.  For purposes hereof, the “Concession Amount” shall be defined as the aggregate of all amounts forgone or expended by Landlord as free rent under the Lease, under Exhibit B hereof for construction allowances, including the “Landlord’s Allowance” (excluding therefrom any amounts expended by Landlord for Landlord’s Work, as defined in Exhibit B), and for brokers’ commissions payable by reason of this Lease.  Accordingly, Tenant agrees that if this Lease or Tenant’s right to possession of the Premises leased hereunder shall be terminated as of any date (“Default Termination Date”) prior to the expiration of the full Initial Term hereof by reason of a default of Tenant, there shall be due and owing to Landlord as of the day prior to the Default Termination Date, as rent in addition to all other amounts owed by Tenant as of such Date, the amount (“Unamortized Amount”) of the Concession Amount determined as set forth below; provided, however, that in the event that such amounts are recovered by Landlord pursuant to any other provision of this Article 19, Landlord agrees that it shall not attempt to recover such amounts pursuant to this Paragraph 19.3.  For the purposes hereof, the Unamortized Amount shall be determined in the same manner as the remaining principal balance of a mortgage with interest at the Amortization Rate payable in level payments over the same length of time as from the effectuation of the Concession concerned to the end of the full Initial Term of this Lease would be determined.  The foregoing provisions shall also apply to and upon any reduction of space in the Premises, as though such reduction were a termination for Tenant’s default, except that (i) the Unamortized Amount shall be reduced by any amounts paid by Tenant to Landlord to effectuate such reduction and (ii) the manner of application shall be that the Unamortized Amount shall first be determined as though for a full termination as of the Effective Date of the elimination of the portion, but then the amount so determined shall be multiplied by the fraction of which the numerator is the rentable square footage of the eliminated portion and the denominator is the rentable square footage of the Premises originally leased hereunder; and the amount thus obtained shall be the Unamortized Amount.

 

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Further, it is agreed that if the Commencement Date does not occur due to any act or default of Tenant then in addition to all other remedies available to Landlord, the entire Landlord’s Allowance received by Tenant shall be immediately due and payable to Landlord without reduction of any kind.

 

19.4                        If, on account of any breach or default by Tenant in Tenant’s obligations under the terms and conditions of this Lease, it shall become necessary or appropriate for Landlord to employ or consult with an attorney or collection agency concerning or to enforce or defend any of Landlord’s rights or remedies arising under this Lease or to collect any sums due from Tenant, Tenant agrees to pay all costs and fees so incurred by Landlord, including, without limitation, reasonable attorneys’ fees and costs.  TENANT EXPRESSLY WAIVES ANY RIGHT TO TRIAL BY JURY.

 

19.5                        Pursuit of any of the foregoing remedies shall not preclude pursuit of any of the other remedies provided in this Lease or any other remedies provided by law (all such remedies being cumulative), nor shall pursuit of any remedy provided in this Lease constitute a forfeiture or waiver of any rent due to Landlord under this Lease or of any damages accruing to Landlord by reason of the violation of any of the terms, provisions and covenants contained in this Lease.

 

19.6                        No act or thing done by Landlord or its agents during the Term shall be deemed a termination of this Lease or an acceptance of the surrender of the Premises, and no agreement to terminate this Lease or accept a surrender of said Premises shall be valid, unless in writing signed by Landlord.  No waiver by Landlord of any violation or breach of any of the terms, provisions and covenants contained in this Lease shall be deemed or construed to constitute a waiver of any other violation or breach of any of the terms, provisions and covenants contained in this Lease.  Landlord’s acceptance of the payment of rental or other payments after the occurrence of an Event of Default shall not be construed as a waiver of such Default, unless Landlord so notifies Tenant in writing.  Forbearance by Landlord in enforcing one or more of the remedies provided in this Lease upon an Event of Default shall not be deemed or construed to constitute a waiver of such Default or of Landlord’s right to enforce any such remedies with respect to such Default or any subsequent Default.

 

19.7                        To secure the payment of all rentals and other sums of money becoming due from Tenant under this Lease, Landlord shall have and Tenant grants to Landlord a first lien upon the leasehold interest of Tenant under this Lease, which lien may be enforced in equity, and a continuing security interest upon all goods, wares, equipment, fixtures, furniture, inventory, accounts, contract rights, chattel paper and other personal property of Tenant situated on the Premises, and such property shall not be removed therefrom without the consent of Landlord until all arrearages in rent as well as any and all other sums of money then due to Landlord under this Lease shall first have been paid and discharged.  Upon the occurrence of an Event of Default, Landlord shall have, in addition to any other remedies provided in this Lease or by law, all rights and remedies under the Uniform Commercial Code, including without limitation the right to sell the property described in this Section 19.7 at public or private sale upon five (5) days’ notice to Tenant.  Tenant shall execute all such financing statements and other instruments as shall be deemed necessary or desirable in Landlord’s discretion to perfect the security interest hereby created.

 

19.8                        Any and all property which may be removed from the Premises by Landlord pursuant to the authority of this Lease or of law, to which Tenant is or may be entitled, may be handled, removed and/or stored, as the case may be, by or at the direction of Landlord but at the risk, cost and expense of Tenant, and Landlord shall in no event be responsible for the value, preservation or safekeeping thereof.  Tenant shall pay to Landlord, upon demand, any and all expenses incurred in such removal and all storage charges against such property so long as the same shall be in Landlord’s possession or under Landlord’s control.  Any such property of Tenant not retaken by Tenant from storage within thirty (30) days after removal from the Premises shall, at Landlord’s option, be deemed conveyed by Tenant to Landlord under this Lease as by a bill of sale without further payment or credit by Landlord to Tenant.

 

19.9                        If more than one (1) Event of Default occurs during the Term or any renewal thereof, Tenant’s renewal options, expansion options, purchase options and rights of first offer and/or refusal, if any are provided for in this Lease, shall be null and void.

 

20.                               TENANT’S BANKRUPTCY OR INSOLVENCY.

 

20.1                        If at any time and for so long as Tenant shall be subjected to the provisions of the United States Bankruptcy Code or other law of the United States or any state thereof for the protection of debtors as in effect at such time (each a “Debtor’s Law”):

 

20.1.1              Tenant, Tenant as debtor-in-possession, and any trustee or receiver of Tenant’s assets (each a “Tenant’s Representative”) shall have no greater right to assume or assign this Lease or any interest in this Lease, or to sublease any of the Premises than accorded to Tenant in Article 9, except to the extent Landlord shall be required to permit

 

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such assumption, assignment or sublease by the provisions of such Debtor’s Law.  Without limitation of the generality of the foregoing, any right of any Tenant’s Representative to assume or assign this Lease or to sublease any of the Premises shall be subject to the conditions that:

 

20.1.1.1    Such Debtor’s Law shall provide to Tenant’s Representative a right of assumption of this Lease which Tenant’s Representative shall have timely exercised and Tenant’s Representative shall have fully cured any default of Tenant under this Lease.

 

20.1.1.2    Tenant’s Representative or the proposed assignee, as the case shall be, shall have deposited with Landlord as security for the timely payment of rent an amount equal to the larger of: (a) three (3) months’ rent and other monetary charges accruing under this Lease; and (b) any sum specified in Article 5; and shall have provided Landlord with adequate other assurance of the future performance of the obligations of the Tenant under this Lease.  Without limitation, such assurances shall include, at least, in the case of assumption of this Lease, demonstration to the satisfaction of the Landlord that Tenant’s Representative has and will continue to have sufficient unencumbered assets after the payment of all secured obligations and administrative expenses to assure Landlord that Tenant’s Representative will have sufficient funds to fulfill the obligations of Tenant under this Lease; and, in the case of assignment, submission of current financial statements of the proposed assignee, audited by an independent certified public accountant reasonably acceptable to Landlord and showing a net worth and working capital in amounts determined by Landlord to be sufficient to assure the future performance by such assignee of all of the Tenant’s obligations under this Lease.

 

20.1.1.3    The assumption or any contemplated assignment of this Lease or subleasing any part of the Premises, as shall be the case, will not breach any provision in any other lease, mortgage, financing agreement or other agreement by which Landlord is bound.

 

20.1.1.4    Landlord shall have, or would have had absent the Debtor’s Law, no right under Article 9 to refuse consent to the proposed assignment or sublease by reason of the identity or nature of the proposed assignee or sublessee or the proposed use of the Premises concerned.

 

21.                               QUIET ENJOYMENT.  Landlord represents and warrants that it has full right and authority to enter into this Lease and that Tenant, while paying the rental and performing its other covenants and agreements contained in this Lease, shall peaceably and quietly have, hold and enjoy the Premises for the Term without hindrance or molestation from Landlord subject to the terms and provisions of this Lease.  Landlord shall not be liable for any interference or disturbance by other tenants or third persons, nor shall Tenant be released from any of the obligations of this Lease because of such interference or disturbance.

 

22.                               CASUALTY

 

22.1                        In the event the Premises or the Building are damaged by fire or other cause and in Landlord’s reasonable estimation such damage can be materially restored within one hundred eighty (180) days, Landlord shall forthwith repair the same and this Lease shall remain in full force and effect, except that Tenant shall be entitled to a proportionate abatement in rent from the date of such damage.  Such abatement of rent shall be made pro rata in accordance with the extent to which the damage and the making of such repairs shall interfere with the use and occupancy by Tenant of the Premises from time to time.  Within forty-five (45) days from the date of such damage, Landlord shall notify Tenant, in writing, of Landlord’s reasonable estimation of the length of time within which material restoration can be made, and Landlord’s determination shall be binding on Tenant.  For purposes of this Lease, the Building or Premises shall be deemed “materially restored” if they are in such condition as would not prevent or materially interfere with Tenant’s use of the Premises for the purpose for which it was being used immediately before such damage.

 

22.2                        If such repairs cannot, in Landlord’s reasonable estimation, be made within one hundred eighty (180) days, Landlord and Tenant shall each have the option of giving the other, at any time within [*] days after such damage, notice terminating this Lease as of the date of such damage.  In the event of the giving of such notice, this Lease shall expire and all interest of the Tenant in the Premises shall terminate as of the date of such damage as if such date had been originally fixed in this Lease for the expiration of the Term.  In the event that neither Landlord nor Tenant exercises its option to terminate this Lease, then Landlord shall repair or restore such damage, this Lease continuing in full force and effect, and the rent hereunder shall be proportionately abated as provided in Section 22.1.

 

22.3                        Landlord shall not be required to repair or replace any damage or loss by or from fire or other cause to any panelings, decorations, partitions, additions, railings, ceilings, floor coverings, office fixtures or any other property or improvements installed on the Premises by, or belonging to, Tenant.  Any insurance which may be carried by Landlord or

 

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Tenant against loss or damage to the Building or Premises shall be for the sole benefit of the party carrying such insurance and under its sole control.

 

22.4                        In the event that Landlord should fail to complete such repairs and material restoration within sixty (60) days after the date estimated by Landlord therefor as extended by this Section 22.4, Tenant may at its option and as its sole remedy terminate this Lease by delivering written notice to Landlord, within fifteen (15) days after the expiration of said period of time, whereupon the Lease shall end on the date of such notice or such later date fixed in such notice as if the date of such notice was the date originally fixed in this Lease for the expiration of the Term; provided, however, that if construction is delayed because of changes, deletions or additions in construction requested by Tenant, Acts of God, war, or other natural causes beyond the reasonable control of Landlord, the period for restoration, repair or rebuilding shall be extended for the amount of time Landlord is so delayed.

 

22.5                        Notwithstanding anything to the contrary contained in this Article:  (a) Landlord shall not have any obligation whatsoever to repair, reconstruct, or restore the Premises when the damages resulting from any casualty covered by the provisions of this Article 22 occur during the last twelve (12) months of the Term or any extension thereof, but if Landlord determines not to repair such damages Landlord shall notify Tenant and if such damages shall render any material portion of the Premises untenantable Tenant shall have the right to terminate this Lease by notice to Landlord within fifteen (15) days after receipt of Landlord’s notice; and (b) in the event the holder of any indebtedness secured by a mortgage or deed of trust covering the Premises or Building requires that any insurance proceeds be applied to such indebtedness, then Landlord shall have the right to terminate this Lease by delivering written notice of termination to Tenant within fifteen (15) days after such requirement is made by any such holder, whereupon this Lease shall end on the date of such damage as if the date of such damage were the date originally fixed in this Lease for the expiration of the Term.

 

22.6                        In the event of any damage or destruction to the Building or Premises by any peril covered by the provisions of this Article 22, it shall be Tenant’s responsibility to properly secure the Premises and upon notice from Landlord to remove forthwith, at its sole cost and expense, such portion of all of the property belonging to Tenant or its licensees from such portion or all of the Building or Premises as Landlord shall request.

 

23.                               EMINENT DOMAIN.  If all or any substantial part of the Premises shall be taken or appropriated by any public or quasi-public authority under the power of eminent domain, or conveyance in lieu of such appropriation, either party to this Lease shall have the right, at its option, of giving the other, at any time within thirty (30) days after such taking, notice terminating this Lease, except that Tenant may only terminate this Lease by reason of taking or appropriation, if such taking or appropriation shall be so substantial as to materially interfere with Tenant’s use and occupancy of the Premises.  If neither party to this Lease shall so elect to terminate this Lease, the rental thereafter to be paid shall be adjusted on a fair and equitable basis under the circumstances.  In addition to the rights of Landlord above, if any substantial part of the Building shall be taken or appropriated by any public or quasi-public authority under the power of eminent domain or conveyance in lieu thereof, and regardless of whether the Premises or any part thereof are so taken or appropriated, Landlord shall have the right, at its sole option, to terminate this Lease.  Landlord shall be entitled to any and all income, rent, award, or any interest whatsoever in or upon any such sum, which may be paid or made in connection with any such public or quasi-public use or purpose, and Tenant hereby assigns to Landlord any interest it may have in or claim to all or any part of such sums, other than any separate award which may be made with respect to Tenant’s trade fixtures and moving expenses; Tenant shall make no claim for the value of any unexpired Term.

 

24.                               SALE BY LANDLORD.  In event of a sale or conveyance by Landlord of the Building, the same shall operate to release Landlord from any future liability upon any of the covenants or conditions, expressed or implied, contained in this Lease in favor of Tenant, and in such event Tenant agrees to look solely to the responsibility of the successor in interest of Landlord in and to this Lease.  Except as set forth in this Article 24, this Lease shall not be affected by any such sale and Tenant agrees to attorn to the purchaser or assignee.  If any Security Deposit has been given by Tenant to secure the faithful performance of any of the covenants of this Lease, and Landlord transfers said Security Deposit to the purchaser of the Building, then in such case, Landlord shall be discharged from any further liability with regard to said Security Deposit.

 

25.                               ESTOPPEL CERTIFICATES.  Within ten (10) business days following any written request which Landlord may make from time to time, Tenant shall execute and deliver to Landlord or mortgagee or prospective mortgagee a sworn statement certifying:  (a) the date of commencement of this Lease; (b) the fact that this Lease is unmodified and in full force and effect (or, if there have been modifications to this Lease, that this lease is in full force and effect, as modified, and stating the date and nature of such modifications); (c) the date to which the rent and other sums payable under this Lease have been paid; (d) the fact that there are no current defaults under this Lease by either Landlord or Tenant except as specified in Tenant’s statement; and (e) such other matters as may be reasonably requested by Landlord and that are accurate and truthful.  Landlord and Tenant intend that any statement delivered pursuant to this Article 25 may be relied upon by any mortgagee,

 

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beneficiary or purchaser, and Tenant shall be liable for all loss, cost or expense resulting from the failure of any sale or funding of any loan caused by any material misstatement contained in such estoppel certificate.  Tenant irrevocably agrees that if Tenant fails to execute and deliver such sworn statement within such ten (10) business day period Landlord or Landlord’s beneficiary or agent may execute and deliver such sworn statement on Tenant’s behalf, and that such certificate shall be fully binding on Tenant.

 

26.          SURRENDER OF PREMISES.

 

26.1        Tenant agrees to arrange to meet Landlord for two (2) joint inspections of the Premises, the first to occur at least thirty (30) days (but no more than sixty (60) days) before the last day of the Term, and the second to occur not later than forty-eight (48) hours after Tenant has vacated the Premises.  In the event of Tenant’s failure to participate in either such inspection, Landlord’s inspection at or after Tenant’s vacating the Premises shall be conclusively deemed correct for purposes of determining Tenant’s responsibility for repairs and restoration.

 

26.2        All alterations, additions, and improvements in, on, or to the Premises which exist as of the Lease Reference Date or are made or installed by or for Tenant after the Lease Reference Date, including, without limitation, carpeting (collectively, “Alterations”), shall be and remain the property of Tenant during the Term.  Upon the expiration or sooner termination of the Term, all Alterations shall become a part of the realty and shall belong to Landlord without compensation, and title shall pass to Landlord under this Lease as by a bill of sale.  At the end of the Term or any renewal of the Term or other sooner termination of this Lease, Tenant will peaceably deliver up to Landlord possession of the Premises, together with all Alterations by whomsoever made, in the same conditions received or first installed, broom clean and free of all debris, excepting only ordinary wear and tear and damage by fire or other casualty.  Notwithstanding the foregoing, if Landlord elects by notice given to Tenant at least ten (10) days prior to expiration of the Term, Tenant shall, at Tenant’s sole cost, remove any Alterations made after the Lease Reference Date, other than Permitted Alterations, as defined below, so designated by Landlord’s notice, including all laboratory space build-out and Alterations,           and repair any damage caused by such removal.  Tenant must, at Tenant’s sole cost, remove upon termination of this Lease, any and all of Tenant’s furniture, furnishings, equipment, movable partitions of less than full height from floor to ceiling and other trade fixtures and personal property, as well as all data/telecommunications cabling and wiring installed by or on behalf of Tenant, whether inside walls, under any raised floor or above any ceiling (collectively, “Personalty”).  Personalty not so removed shall be deemed abandoned by the Tenant and title to the same shall thereupon pass to Landlord under this Lease as by a bill of sale, but Tenant shall remain responsible for the cost of removal and disposal of such Personalty, as well as any damage caused by such removal.

 

“Permitted Alterations” means any Alterations which are comprised of vanilla office space and any Alterations which the Landlord agrees will not be required to be removed at the expiration of this Lease.

 

26.3        All obligations of Tenant under this Lease not fully performed as of the expiration or earlier termination of the Term shall survive the expiration or earlier termination of the Term.  Upon the expiration or earlier termination of the Term, Tenant shall pay to Landlord the amount, as estimated by Landlord, necessary to repair and restore the Premises as provided in this Lease and/or to discharge Tenant’s obligation for unpaid amounts due or to become due to Landlord.  All such amounts shall be used and held by Landlord for payment of such obligations of Tenant, with Tenant being liable for any additional costs upon demand by Landlord, or with any excess to be returned to Tenant after all such obligations have been determined and satisfied.  Any otherwise unused Security Deposit shall be credited against the amount payable by Tenant under this Lease.

 

27.          NOTICES.  Any notice or document required or permitted to be delivered under this Lease shall be addressed to the intended recipient, by fully prepaid registered or certified United States Mail return receipt requested, or by reputable independent contract delivery service furnishing a written record of attempted or actual delivery, and shall be deemed to be delivered when tendered for delivery to the addressee at its address set forth on the Reference Pages, or at such other address as it has then last specified by written notice delivered in accordance with this Article 27, or if to Tenant at either its aforesaid address or its last known registered office or home of a general partner or individual owner, whether or not actually accepted or received by the addressee.  Any such notice or document may also be personally delivered if a receipt is signed by and received from, the individual, if any, named in Tenant’s Notice Address.

 

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28.          TAXES PAYABLE BY TENANT.  In addition to rent and other charges to be paid by Tenant under this Lease, Tenant shall reimburse to Landlord, upon demand, any and all taxes payable by Landlord (other than net income taxes) whether or not now customary or within the contemplation of the parties to this Lease:  (a) upon, allocable to, or measured by or on the gross or net rent payable under this Lease, including without limitation any gross income tax or excise tax levied by the State, any political subdivision thereof, or the Federal Government with respect to the receipt of such rent; (b) upon or with respect to the possession, leasing, operation, management, maintenance, alteration, repair, use or occupancy of the Premises or any portion thereof, including any sales, use or service tax imposed as a result thereof; (c) upon or measured by the Tenant’s gross receipts or payroll or the value of Tenant’s equipment, furniture, fixtures and other personal property of Tenant or leasehold improvements, alterations or additions located in the Premises; or (d) upon this transaction or any document to which Tenant is a party creating or transferring any interest of Tenant in this Lease or the Premises.  In addition to the foregoing, Tenant agrees to pay, before delinquency, any and all taxes levied or assessed against Tenant and which become payable during the term hereof upon Tenant’s equipment, furniture, fixtures and other personal property of Tenant located in the Premises.

 

29.          INTENTIONALLY DELETED.

 

30.          DEFINED TERMS AND HEADINGS.  The Article headings shown in this Lease are for convenience of reference and shall in no way define, increase, limit or describe the scope or intent of any provision of this Lease.  Any indemnification or insurance of Landlord shall apply to and inure to the benefit of all the following “Landlord Entities”, being Landlord, Landlord’s investment manager, and the trustees, boards of directors, officers, general partners, beneficiaries, stockholders, employees and agents of each of them.  Any option granted to Landlord shall also include or be exercisable by Landlord’s trustee, beneficiary, agents and employees, as the case may be.  In any case where this Lease is signed by more than one person, the obligations under this Lease shall be joint and several.  The terms “Tenant” and “Landlord” or any pronoun used in place thereof shall indicate and include the masculine or feminine, the singular or plural number, individuals, firms or corporations, and their and each of their respective successors, executors, administrators and permitted assigns, according to the context hereof.  The term “rentable area” shall mean the rentable area of the Premises or the Building as calculated by the Landlord on the basis of the plans and specifications of the Building including a proportionate share of any common areas.  Tenant hereby accepts and agrees to be bound by the figures for the rentable square footage of the Premises and Tenant’s Proportionate Share shown on the Reference Pages; however, Landlord shall adjust either or both figures if there is manifest error, addition or subtraction to the Building or any business park or complex of which the Building is a part, remeasurement or other circumstance reasonably justifying adjustment.  The term “Building” refers to the structure in which the Premises are located and the common areas (parking lots, sidewalks, landscaping, etc.) appurtenant thereto.  If the Building is part of a larger complex of structures, the term “Building” may include the entire complex, where appropriate (such as shared Expenses or Taxes) and subject to Landlord’s reasonable discretion.

 

31.          TENANT’S AUTHORITY.  If Tenant signs as a corporation, partnership, trust or other legal entity each of the persons executing this Lease on behalf of Tenant represents and warrants that Tenant has been and is qualified to do business in the state in which the Building is located, that the entity has full right and authority to enter into this Lease, and that all persons signing on behalf of the entity were authorized to do so by appropriate actions. Tenant agrees to deliver to Landlord, simultaneously with the delivery of this Lease, a corporate resolution, proof of due authorization by partners, opinion of counsel or other appropriate documentation reasonably acceptable to Landlord evidencing the due authorization of Tenant to enter into this Lease.

 

Tenant hereby represents and warrants that neither Tenant, nor any persons or entities holding any legal or beneficial interest whatsoever in Tenant, are (i) the target of any sanctions program that is established by Executive Order of the President or published by the Office of Foreign Assets Control, U.S. Department of the Treasury (“OFAC”); (ii) designated by the President or OFAC pursuant to the Trading with the Enemy Act, 50 U.S.C. App.  § 5, the International Emergency Economic Powers Act, 50 U.S.C. §§ 1701-06, the Patriot Act, Public Law 107-56, Executive Order 13224 (September 23, 2001) or any Executive Order of the President issued pursuant to such statutes; or (iii) named on the following list that is published by OFAC: “List of Specially Designated Nationals and Blocked Persons.” If the foregoing representation is untrue at any time during the Term, an Event of Default will be deemed to have occurred, without the necessity of notice to Tenant.

 

32.          FINANCIAL STATEMENTS AND CREDIT REPORTS.  At Landlord’s request [*], Tenant shall deliver to Landlord a copy, certified by an officer of Tenant as being a true and correct copy, of Tenant’s most recent audited financial statement, or, if unaudited, certified by Tenant’s chief financial officer as being true, complete and correct in all material respects.  Landlord agrees to treat all such financial statements as Tenant confidential information, and shall not share such statements or information contained in such statements with any third party without first obtaining Tenant’s express written permission.  Tenant hereby authorizes Landlord to obtain one or more credit reports on Tenant at any time [*], and shall execute such further authorizations as Landlord may reasonably require in order to obtain a credit report.  [*].

 

19

 

33.          COMMISSIONS.  Each of the parties represents and warrants to the other that it has not dealt with any broker or finder in connection with this Lease, except as described on the Reference Pages.

 

34.          TIME AND APPLICABLE LAW.  Time is of the essence of this Lease and all of its provisions.  This Lease shall in all respects be governed by the laws of the state in which the Building is located.

 

35.          SUCCESSORS AND ASSIGNS.  Subject to the provisions of Article 9, the terms, covenants and conditions contained in this Lease shall be binding upon and inure to the benefit of the heirs, successors, executors, administrators and assigns of the parties to this Lease.

 

36.          ENTIRE AGREEMENT.  This Lease, together with its exhibits, contains all agreements of the parties to this Lease and supersedes any previous negotiations.  There have been no representations made by the Landlord or any of its representatives or understandings made between the parties other than those set forth in this Lease and its exhibits.  This Lease may not be modified except by a written instrument duly executed by the parties to this Lease.

 

37.          EXAMINATION NOT OPTION.  Submission of this Lease shall not be deemed to be a reservation of the Premises.  Landlord shall not be bound by this Lease until it has received a copy of this Lease duly executed by Tenant and has delivered to Tenant a copy of this Lease duly executed by Landlord, and until such delivery Landlord reserves the right to exhibit and lease the Premises to other prospective tenants.  Notwithstanding anything contained in this Lease to the contrary, Landlord may withhold delivery of possession of the Premises from Tenant until such time as Tenant has paid to Landlord any security deposit required by Article 5, the first month’s rent as set forth in Article 3 and any sum owed pursuant to this Lease.

 

38.          RECORDATION.  Tenant shall not record or register this Lease or a short form memorandum hereof without the prior written consent of Landlord, and then shall pay all charges and taxes incident such recording or registration.  In the event that Landlord records or registers this Lease or a memorandum thereof, Landlord shall pay charges and taxes incident to such recording or registration.

 

39.          RIGHT OF FIRST OFFER.

 

39.1        Provided that as of the date of the giving of the First Offer Notice, (a) Tenant is the Tenant originally named herein, (b) Tenant actually occupies substantially all of the Premises originally demised under this Lease and any space added to the Premises; and (c) no Event of Default exists, if at any time during the Term any lease for any space in the Building (the “Offered Space”) expires, then Landlord, before offering such Offered Space to anyone other than the tenant then occupying such space (or its affiliates) or other tenants with prior rights to the Offered Space, will offer to Tenant the right to include the Offered Space within the Premises on the same terms and conditions upon which Landlord intends to offer the Offered Space for lease, provided that such terms shall include (and make appropriate business term adjustments for) an abatement of the Monthly Installments of Annual Rent which would be due for the Offered Space for a period of 120 days following the date of Tenant’s Notice.

 

39.2        Such offer will be made by Landlord to Tenant in a written notice (the “First Offer Notice”), which offer will designate the space being offered and specify the terms which Landlord intends to offer with respect to the Offered Space.  Tenant may accept the offer set forth in the First Office Notice by delivering to Landlord an unconditional acceptance (“Tenant’s Notice”) of such offer within ten (10) days after delivery by Landlord of the First Offer Notice to Tenant.  Time will be of the essence with respect to the giving of Tenant’s Notice.  If Tenant does not accept (or fails to timely accept) an offer made by Landlord in the First Offer Notice, Landlord will be under no further obligation with respect to such space.

 

39.3        Tenant must accept all Offered Space offered by Landlord at any one time if it desires to accept any of such Offered Space and may not exercise its right with respect to only part of such space.  In addition, if Landlord desires to lease more than just the Offered Space to one tenant, Landlord may offer to Tenant, pursuant to the terms hereof, all such space which Landlord desires to lease, and Tenant must exercise its rights hereunder with respect to all such space, and may not insist on receiving an offer for just the Offered Space.

 

39.4        If Tenant at any time declines any Offered Space offered by Landlord, Tenant will be deemed to have waived all further rights with respect to the Offered Space until such time as any future lease for such space expires, and Landlord will be free to lease the Offered Space to third parties, including on terms which may be more or less favorable to Landlord than those offered to Tenant.  In such event, upon Landlord’s request, Tenant will execute a release evidencing its waiver of such rights with respect to the Offered Space.

 

20

 

39.5        The rights of Tenant under this Section 39 for any Offered Space shall not apply if as of the time that Tenant sends the Tenant’s Notice, there are less than 36 months remaining in the Term, unless prior to Tenant’s delivery of the Extension Notice, Tenant and Landlord have agreed to an extension of the Term for an Extension Term under Section 2.4 above (including an agreement on the Annual Rent for the Extension Term).

 

[THE REMAINDER OF THIS PAGE INTENTIONALLY LEFT BLANK]

 

21

 

40.          LIMITATION OF LANDLORD’S LIABILITY.  Redress for any claim against Landlord under this Lease shall be limited to and enforceable only against and to the extent of Landlord’s interest in the Building.  The obligations of Landlord under this Lease are not intended to be and shall not be personally binding on, nor shall any resort be had to the private properties of, any of its or its investment manager’s trustees, directors, officers, partners, beneficiaries, members, stockholders, employees, or agents, and in no case shall Landlord be liable to Tenant hereunder for any lost profits, damage to business, or any form of special, indirect or consequential damages.

 

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

 

	
LANDLORD:
    	
 
    	
TENANT:
    
	
 
    	
 
    	
 
    
	
MOR GATE LLC
    	
 
    	
ACELL, INC.
    
	
 
    	
 
    	
 
    
	
By:
    	
/s/ Michael A. Reddy
    	
 
    	
By:
    	
/s/ Edward O’Brien
    
	
 
    	
Michael A. Ready
    	
 
    	
Name:
    	
Edward O’Brien
    
	
 
    	
Vice President
    	
 
    	
Title:
    	
CFO
    
	
Dated:
    	
             1/30                  ,   2015
    	
 
    	
Dated:
    	
             1-27-15                           ,   2015
    

 

22

 

EXHIBIT A — FLOOR PLAN DEPICTING THE PREMISES

 

attached to and made a part of Lease bearing the

Lease Reference Date of                , 2015 between

MOR Gate LLC as Landlord and

ACell, Inc., as Tenant

 

Exhibit A is intended only to show the general layout of the Premises as of the beginning of the Term of this Lease.  It does not in any way supersede any of Landlord’s rights set forth in Article 17 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.

 

Initials

 

A

 

EXHIBIT A-1 — SITE PLAN

 

attached to and made a part of Lease bearing the

Lease Reference Date of                , 2015 between

MOR Gate LLC as Landlord and

ACell, Inc., as Tenant

 

Exhibit A-1 is intended only to show the general location of the Premises as of the beginning of the Term of this Lease.  It does not in any way supersede any of Landlord’s rights set forth in Article 17 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.

 

A-1

 

EXHIBIT B — INITIAL ALTERATIONS

 

attached to and made a part of Lease bearing the

Lease Reference Date of                , 2015 between

MOR Gate LLC as Landlord and

ACell, Inc., as Tenant

 

1.             Landlord agrees that Landlord will contribute to Tenant the amount of $[*] (“Landlord’s Allowance”) to be applied solely toward the cost of the Tenant Improvement Costs (and to the extent provided below, toward Annual Rent obligations), provided that Landlord shall not be required to disburse Landlord’s Allowance during such time as uncured Event of Default exists and is continuing beyond any applicable notice and cure period under the Lease. [*].

 

“Tenant Improvements” means all direct improvements made by Tenant to the Premises and approved by Landlord (and excluding Tenant’s personal property, furniture, IT and phone systems and the like).

 

“Tenant Improvement Costs” means all direct costs for the Tenant Improvements, together with all overhead payable to Tenant’s General Contractor for the Tenant Improvements and all architectural and engineering fees payable by Tenant for the Tenant Improvements and all permit fees for the Tenant Improvements, whether such costs were incurred by Tenant prior to the date of this Lease or will be incurred after the date of this Lease.

 

2.             Prior to the Commencement Date, the amount of the Allowance which may be drawn upon by Tenant shall be limited to $[*]; following the Commencement Date, Tenant shall have full access to the Landlord’s Allowance, subject to the terms set forth in this Exhibit B.  Landlord shall disburse Landlord’s Allowance directly to Tenant, to be applied towards the Tenant Improvement Costs, upon Landlord’s receipt of invoices for the Tenant Improvement Costs for which Tenant is seeking reimbursement from Landlord from the Landlord’s Allowance.  Moreover, prior to each such payment by Landlord, the following conditions also shall be satisfied (the “Payment Conditions”): [*] Subject to satisfaction of the foregoing Payment Conditions, Landlord shall pay such charges one (1) time per month.  Tenant shall use Landlord’s Allowance within 12 months following the Lease Commencement Date (the “Allowance Expiration Date”), or the same shall no longer be available to Tenant, [*].

 

3.             Tenant shall pay all costs of the Tenant Improvements exceeding the amount of the Landlord’s Allowance.

 

B

 

EXHIBIT C — COMMENCEMENT DATE MEMORANDUM

 

attached to and made a part of Lease bearing the

Lease Reference Date of                , 2015 between

MOR Gate LLC as Landlord and

ACell, Inc., as Tenant

 

COMMENCEMENT DATE MEMORANDUM

 

THIS MEMORANDUM, made as of      , 20     , by and between       (“Landlord”) and       (“Tenant”).

 

Recitals:

 

A.                                   Landlord and Tenant are parties to that certain Lease, dated for reference      , 20      (the “Lease”) for certain premises (the “Premises”) consisting of approximately       square feet at the building commonly known as      .

 

B.                                    Tenant is in possession of the Premises and the Term of the Lease has commenced.

 

C.                                    Landlord and Tenant desire to enter into this Memorandum confirming the Commencement Date, the Termination Date and other matters under the Lease.

 

NOW, THEREFORE, Landlord and Tenant agree as follows:

 

1.             The actual Commencement Date is      .

 

2.             The actual Termination Date is      .

 

3.             The schedule of the Annual Rent and the Monthly Installment of Rent set forth on the Reference Pages is deleted in its entirety, and the following is substituted therefor:

 

[insert rent schedule]

 

4.             Capitalized terms not defined herein shall have the same meaning as set forth in the Lease.

 

IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed as of the date and year first above written.

 

	
LANDLORD:
    	
 
    	
TENANT:
    
	
 
    	
 
    	
 
    
	
MOR GATE LLC
    	
 
    	
ACELL, INC.
    
	
 
    	
 
    	
 
    
	
By:
    	
               DO NOT SIGN               
    	
 
    	
By:
    	
               DO NOT SIGN               
    
	
 
    	
Michael A. Ready
    	
 
    	
Name:
    	
 
    
	
 
    	
Vice President
    	
 
    	
Title:
    	
 
    
	
Dated:
    	
                  ,   2015
    	
 
    	
Dated:
    	
                           ,   2015
    

 

Initials

 

C

 

EXHIBIT D — RULES AND REGULATIONS

 

attached to and made a part of Lease bearing the

Lease Reference Date of                , 2015 between

MOR Gate LLC as Landlord and

ACell, Inc., as Tenant

 

1.             No sign, placard, picture, advertisement, name or notice (collectively referred to as “Signs”) shall be installed or displayed on any part of the outside of the Building without the prior written consent of the Landlord which consent shall be in Landlord’s sole discretion. All approved Signs shall be printed, painted, affixed or inscribed at Tenant’s expense by a person or vendor approved by Landlord and shall be removed by Tenant at Tenant’s expense upon vacating the Premises. Landlord shall have the right to remove any Sign installed or displayed in violation of this rule at Tenant’s expense and without notice.

 

2.             If Landlord objects in writing to any curtains, blinds, shades or screens attached to or hung in or used in connection with any window or door of the Premises or Building, Tenant shall immediately discontinue such use.  No awning shall be permitted on any part of the Premises.  Tenant shall not place anything or allow anything to be placed against or near any glass partitions or doors or windows which may appear unsightly, in the opinion of Landlord, from outside the Premises.

 

3.             Tenant shall not alter any lock or other access device or install a new or additional lock or access device or bolt on any door of its Premises without the prior written consent of Landlord.  Tenant, upon the termination of its tenancy, shall deliver to Landlord the keys or other means of access to all doors.

 

4.             If Tenant requires telephone, data, burglar alarm or similar service, the cost of purchasing, installing and maintaining such service shall be borne solely by Tenant. No boring or cutting for wires will be allowed without the prior written consent of Landlord. Landlord shall direct electricians as to where and how telephone, data, and electrical wires are to be introduced or installed. The location of burglar alarms, telephones, call boxes or other office equipment affixed to the Premises shall be subject to the prior written approval of Landlord.

 

5.             Tenant shall not place a load upon any floor of its Premises, including mezzanine area, if any, which exceeds the load per square foot that such floor was designed to carry and that is allowed by law. Heavy objects shall stand on such platforms as determined by Landlord to be necessary to properly distribute the weight. Landlord will not be responsible for loss of or damage to any such equipment or other property from any cause, and all damage done to the Building by maintaining or moving such equipment or other property shall be repaired at the expense of Tenant.

 

6.             Tenant shall not install any radio or television antenna, satellite dish, loudspeaker or other device on the roof or exterior walls of the Building without Landlord’s prior written consent which consent shall be in Landlord’s sole discretion.

 

7.             Tenant shall not mark, drive nails, screw or drill into the partitions, woodwork, plaster or drywall (except for pictures and general office uses) or in any way deface the Premises or any part thereof.   Tenant shall not affix any floor covering to the floor of the Premises or paint or seal any floors in any manner except as approved by Landlord.  Tenant shall repair any damage resulting from noncompliance with this rule.

 

8.             No cooking shall be done or permitted on the Premises, except that Underwriters’ Laboratory approved microwave ovens or equipment for brewing coffee, tea, hot chocolate and similar beverages shall be permitted, provided that such equipment and use is in accordance with all applicable federal, state and city laws, codes, ordinances, rules and regulations.

 

9.             Tenant shall not use any hand trucks except those equipped with the rubber tires and side guards, and may use such other material-handling equipment as Landlord may approve.  Tenant shall not bring any other vehicles of any kind into the Building. Forklifts which operate on asphalt areas shall only use tires that do not damage the asphalt.

 

10.          Tenant shall not use the name of the Building or any photograph or other likeness of the Building in connection with or in promoting or advertising Tenant’s business except that Tenant may include the Building name in Tenant’s address. Landlord shall have the right, exercisable without notice and without liability to any tenant, to change the name and address of the Building.

 

11.          All trash and refuse shall be contained in suitable receptacles at locations approved by Landlord. Tenant shall not place in the trash receptacles any personal trash or material that cannot be disposed of in the ordinary and customary manner of removing such trash without violation of any law or ordinance governing such disposal.

 

D 1

 

12.          Tenant shall comply with all safety, fire protection and evacuation procedures and regulations established by Landlord or any governing authority.

 

13.          Tenant assumes all responsibility for securing and protecting its Premises and its contents including keeping doors locked and other means of entry to the Premises closed.

 

14.          Tenant shall not use any method of heating or air conditioning other than that supplied by Landlord without Landlord’s prior written consent.

 

15.          No person shall go on the roof without Landlord’s permission.

 

16.          Tenant shall not permit any animals, other than seeing-eye dogs, to be brought or kept in or about the Premises or any common area of the property.

 

17.          Tenant shall not permit any motor vehicles to be washed or mechanical work or maintenance of motor vehicles to be performed on any portion of the Premises or parking lot.

 

18.          These Rules and Regulations are in addition to, and shall not be construed to in any way modify or amend, in whole or in part, the terms, covenants, agreements and conditions of any lease of any premises in the Building.  Landlord may waive any one or more of these Rules and Regulations for the benefit of any tenant or tenants, and any such waiver by Landlord shall not be construed as a waiver of such Rules and Regulations for any or all tenants.

 

19.          Landlord reserves the right to make such other and reasonable rules and regulations as in its judgment may from time to time be needed for safety and security, for care and cleanliness of the Building and for the preservation of good order in and about the Building.  Tenant agrees to abide by all such rules and regulations herein stated and any additional rules and regulations which are adopted.  Tenant shall be responsible for the observance of all of the foregoing rules by Tenant’s employees, agents, clients, customers, invitees and guests.

 

20.          Any toilet rooms, toilets, urinals, wash bowls and other apparatus shall not be used for any purpose other than that for which they were constructed and no foreign substance of any kind whatsoever shall be thrown into them.  The expense of any breakage, stoppage or damage resulting from the violation of this rule shall be borne by the Tenant who, or whose employees or invitees, shall have caused it.

 

21.          Tenant shall not permit smoking or carrying of lighted cigarettes or cigars in areas reasonably designated by Landlord or any applicable governmental agencies as non-smoking areas.

 

22.          Any directory of the Building or project of which the Building is a part (“Project Area”), if provided, will be exclusively for the display of the name and location of tenants only and Landlord reserves the right to charge for the use thereof and to exclude any other names.

 

23.          Canvassing, soliciting, distribution of handbills or any other written material in the Building or Project Area is prohibited and each tenant shall cooperate to prevent the same. No tenant shall solicit business from other tenants or permit the sale of any goods or merchandise in the Building or Project Area without the written consent of Landlord.

 

24.          Any equipment belonging to Tenant which causes noise or vibration that may be transmitted to the structure of the Building or to any space therein to such a degree as to be objectionable to Landlord or to any tenants in the Building shall be placed and maintained by Tenant, at Tenant’s expense, on vibration eliminators or other devices sufficient to eliminate the noise or vibration.

 

25.          Driveways, sidewalks, halls, passages, exits, entrances and stairways (“Access Areas”) shall not be obstructed by tenants or used by tenants for any purpose other than for ingress to and egress from their respective premises. Access areas are not for the use of the general public and Landlord shall in all cases retain the right to control and prevent access thereto by all persons whose presence, in the judgment of Landlord, shall be prejudicial to the safety, character, reputation and interests of the Building or its tenants.

 

26.          Landlord reserves the right to designate the use of parking areas and spaces.  Tenant shall not park in visitor, reserved, or unauthorized parking areas. Tenant and Tenant’s guests shall park between designated parking lines only and shall not park motor vehicles in those areas designated by Landlord for loading and unloading. Vehicles in violation of the above shall be subject to being towed at the vehicle owner’s expense. Vehicles parked overnight without prior written 

 

D 2

 

consent of the Landlord shall be deemed abandoned and shall be subject to being towed at vehicle owner’s expense. Tenant will from time to time, upon the request of Landlord, supply Landlord with a list of license plate numbers of vehicles owned or operated by its employees or agents.

 

27.          No trucks, tractors or similar vehicles can be parked anywhere other than in Tenant’s own truck dock area. Tractor-trailers which must be unhooked or parked with dolly wheels beyond the concrete loading areas must use steel plates or wood blocks under the dolly wheels to prevent damage to the asphalt paving surfaces. No parking or storing of such trailers will be permitted in the parking areas or on streets adjacent thereto.

 

28.          During periods of loading and unloading, Tenant shall not unreasonably interfere with traffic flow and loading and unloading areas of other tenants.  All products, materials or goods must be stored within the Tenant’s Premises and not in any exterior areas, including, but not limited to, exterior dock platforms, against the exterior of the Building, parking areas and driveway areas. Tenant agrees to keep the exterior of the Premises clean and free of nails, wood, pallets, packing materials, barrels and any other debris produced from their operation.

 

[REMAINDER OF THIS PAGE LEFT INTENTIONALLY BLANK]

 

D 3

 

EXHIBIT E —  HVAC UNITS

 

attached to and made a part of Lease bearing the

Lease Reference Date of                , 2015 between

MOR Gate LLC as Landlord and

ACell, Inc., as Tenant

 

6650 Eli Whitney Drive — HVAC Units

 

	
Make
    	
 
    	
Model #
    	
 
    	
Serial #
    	
 
    	
Area located
    	
 
    	
Size (Ton)
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Carrier #3
    	
 
    	
48TFD012-601GA
    	
 
    	
3700G34041
    	
 
    	
Connector*
    	
 
    	
10 Ton
    
	
Carrier #4
    	
 
    	
48TFD012-6016A
    	
 
    	
3700G34042
    	
 
    	
6650
    	
 
    	
10 Ton
    
	
Carrier #1
    	
 
    	
48TFD012601GA
    	
 
    	
3700G34037
    	
 
    	
Connector*
    	
 
    	
10 Ton
    
	
Carrier #2
    	
 
    	
48TFD012601GA
    	
 
    	
3700G34036
    	
 
    	
Connector*
    	
 
    	
10 Ton
    
	
Trane
    	
 
    	
2TEC3F241000AA
    	
 
    	
62535H71V
    	
 
    	
6650
    	
 
    	
3 Ton
    
	
Trane
    	
 
    	
2TWB3024A1000AA
    	
 
    	
6452NB34F
    	
 
    	
6650
    	
 
    	
3 Ton
    
	
Trane
    	
 
    	
2TEC3F24A1000AA
    	
 
    	
6254AB02V
    	
 
    	
6650
    	
 
    	
3 Ton
    
	
York #6
    	
 
    	
D1EG240N32046F
    	
 
    	
NGJM020075
    	
 
    	
6650
    	
 
    	
20 Ton
    
	
York #7
    	
 
    	
D1EG240N32046FDF
    	
 
    	
NBJM014735
    	
 
    	
6650
    	
 
    	
20 Ton
    

 

*Note — These HVAC Units are in the enclosed area connecting 6640 and 6650 Eli Whitney Drive.

 

EExhibit 10.18

 

CERTAIN CONFIDENTIAL INFORMATION CONTAINED IN THIS DOCUMENT, MARKED BY [*], HAS BEEN OMITTED BECAUSE IT IS NOT MATERIAL AND WOULD LIKELY CAUSE COMPETITIVE HARM TO ACELL, INC. IF PUBLICLY DISCLOSED.

 

AGREEMENT OF LEASE

 

This AGREEMENT OF LEASE (hereinafter referred to as the “Lease”) is made as of the 1st day of October, 2014 (the “Effective Date”), between 3589 Sagamore, LLC, an Indiana limited liability company (hereinafter referred to as “Landlord”), and ACell, Inc., a Delaware corporation (hereinafter referred to individually and collectively as “Tenant”).  This Lease shall supersede and replace the following two Agreements of Lease: (i) Agreement of Lease, dated February 25, 2013, by and between Landlord and Tenant, for approximately 28,000 rsf in the Building, as amended by a certain First Lease Addendum, dated September 3, 2013; and (ii) Agreement of Lease, dated September 3, 2013, by and between Landlord and Tenant for approximately 14,000 rsf in the Building (the “Expansion Lease”) (together, these two current Agreements of Lease hereinafter the “Current Leases”). Tenant acknowledges and agrees that this Lease is not effective, nor binding, on either Landlord or Tenant until both Landlord and Tenant have signed this Lease and delivered a signed copy of this Lease to the other party.  Landlord and Tenant each acknowledge and agree that the Current Leases shall not be superseded and replaced by this Lease until the Commencement Date.

 

WITNESSETH:

 

Landlord hereby leases to Tenant, and Tenant hereby accepts, the premises consisting of Fifty One Thousand Eighty Two (51,082) rentable square feet (hereinafter referred to as the “Premises” and depicted on Exhibit “A”) of the building containing approximately 54,000 rentable square feet known as INOK Professional Office Center, (hereinafter referred to as the “Building”) on land at 3589 Sagamore Parkway North, Lafayette, Indiana 47904 (hereinafter referred to, together with all present and future easements, additions, improvements and other rights appurtenant thereto, as the “Land”) , subject to the covenants, terms, provisions and conditions of this Lease.

 

 

In consideration thereof, Landlord and Tenant covenant and agree as follows:

 

1.                                      TERM:

 

The “Commencement Date” shall be January 1, 2015. The term of this Lease (hereinafter referred to as “Term”) shall expire one hundred twenty (120) full months after the Commencement Date, subject to adjustment and earlier termination as provided in the Lease.

 

2.                                      LANDLORD’S IMPROVEMENTS; TENANT’S WORK; TENANT’S POSSESSION:

 

A.                                    Landlord’s Improvements. On or before September 1, 2014, Tenant acknowledges and agrees it shall provide to Landlord drawings depicting in reasonable detail the number and location of all necessary four inch diameter sanitary sewer floor drains in the 14,000 square foot Addition (as defined in Section 2.A of the Expansion Lease (the “Floor Drain Drawings”). Landlord, at its sole cost and expense, shall install up to eight (8) four inch diameter sanitary sewer floor drains in the Addition in the locations as depicted on the Floor Drain Drawings and pour the concrete slab floor in the Addition (“Landlord’s Improvements”). Tenant shall pay the costs of any additional sanitary sewer floor drains.  Provided Tenant provides the Floor Drain Drawings on or before September 1, 2014, Landlord acknowledges and agrees that it substantially complete Landlord’s Work prior to the Commencement Date. If Tenant fails to provide Landlord with the Floor Drain Drawings on or before September 1, 2014, Landlord shall have the right, but not the obligation to install eight four inch diameter sanitary sewer floor drains in such locations as determined by Landlord in its sole and absolute discretion, and to otherwise complete Landlord’s Work.

 

The Landlord’s Improvements shall comply with all applicable laws, ordinances, rules, codes, and regulations of governmental authorities.  All construction shall be done in a good workmanlike manner.  If the Landlord’s Improvements are not substantially completed on or before the Commencement Date, Tenant shall have the right to abatement of Rent for the Addition until such time as the Landlord’s Work is substantially completed. Substantially complete means:

 

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(i)                                     completing the Landlord’s Improvements so that (I) Tenant, at its sole cost and expense, can begin to install and construct Tenant’s leasehold improvements, fixtures and equipment and {II) with respect to the Landlord’s Improvements, only incomplete items are minor or insubstantial details of construction or mechanical adjustments; and

 

(ii)                                  Tenant, its employees, agents, and invitees, have ready access to the Premises.

 

Notwithstanding the foregoing, if Landlord’s failure to substantially complete the Landlord’s Improvements is a direct result of strike, lockout, shortage in material, Tenant’s acts or failure to act as required hereunder (including, but not limited to, timely providing Landlord with the Floor Drain Drawings), or act of God, then the time periods set forth above shall be delayed until such cause giving rise to the delay ceases to exist.

 

B.                                    Tenant’s Possession and Tenant’s Work. On the Commencement Date, Landlord shall deliver to Tenant possession of the entire Premises, including that portion of the Premises not included in the Current Leases, in “AS-IS” condition with the addition of Landlord’s Work so that Tenant can commence performing, at Tenant’s sole cost and expense (but subject to the Construction Allowance as hereinafter defined), Tenant’s work, including, but not limited to, installation of: plumbing; electrical; HVAC; installation of F&E and other improvements necessary to prepare the Premises for Tenant’s use and occupancy (collectively, the “Tenant’s Work”). Tenant has provided Landlord with a complete set of construction drawings for Tenant’s work (the “Construction Drawings”) and Landlord hereby approves the Construction Drawings. Tenant shall have the right to select contractors and subcontractors to perform Tenant’s Work subject to the approval of Landlord, which approval shall not be unreasonably withheld, conditioned or delayed. In the event that Tenant’s Work is to be performed by a general contractor selected by Tenant, such general contractor shall meet all requirements of Landlord with respect to bonding capacity and meeting all insurance requirements. Landlord may inspect Tenant’s Work from time to time. The Tenant’s Work shall comply with all applicable laws, ordinances, rules, codes, and regulations  of governmental authorities.  All construction shall be

 

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done in a good workmanlike manner using materials as specified or depicted in the Construction Drawings.

 

Landlord shall pay to Tenant a construction allowance toward the cost of designing and performing Tenant’s Work in an amount not to exceed $[*] (the “Construction Allowance”).  Tenant acknowledges and agrees that the Construction Allowance includes the [*] Landlord was required to pay Tenant toward the cost of installing the electrical and HVAC work described in the Expansion Lease. The Construction Allowance shall be disbursed to Tenant, or as directed by Tenant, within ten (10) days after Tenant receives its occupancy permit and Tenant delivers to. Landlord its written request for the Construction Allowance accompanied by copies of the invoices to which the requisition relates, evidence of payment by Tenant, contractor’s affidavits, full and final waivers of all liens for work, labor, services and/or materials, or other reasonable documentation as Landlord or Landlord’s lender deems necessary.

 

3.                                      BASE RENT:

 

Except as otherwise modified by section 33 below, Tenant shall pay to Landlord or Landlord’s agent at the office of the Building, or at such other place as Landlord may from time to time designate in writing, commencing on the Commencement Date and on the first day of each month thereafter during the remainder of the Term of this Lease, rent (hereinafter referred to as “Base Rent”) as follows:

 

	
TERM
    	
 
    	
BASE RENT PLR. MONTH
    	
 
    
	
Months 1-6
    	
 
    	
[*]
    	
 
    
	
Months 7-60
    	
 
    	
[*]
    	
 
    
	
Months 61-120
    	
 
    	
[*]
    	
 
    

 

4.                                      ADDITIONAL RENT:

 

In addition to paying the Base Rent specified in Section 3 hereof, Tenant shall pay as “Additional Rent” the amounts determined as hereinafter set forth. The Base Rent and the Additional Rent are sometimes herein collectively referred to as the “Rent’. All amounts due under this Section 4 as Additional Rent shall be payable

 

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commencing on the date the Base Rent obligation commences (i.e., Month 1) as set forth in Section 3 above. Without limitation on other obligations of Tenant Which shall survive the expiration of the Term, the obligations of Tenant to pay the Additional Rent provided for in this Section 4 for periods prior to the termination of this Lease, shall survive expiration of the Term. For any partial Calendar Year, Tenant shall be obligated to pay only a pro rata share of the Additional Rent, based on the number of days of the Term falling within such Calendar Year.

 

A.  Definitions: As used in this section 4, the terms:

 

(i)  “Calendar Year” shall mean each calendar year in which any part of the term falls, through and including the year in which the Term expires;

 

(ii)  Except as otherwise modified by Section “Tenant’s Rentable Area” shall mean 51,082 square feet;

 

(iii)  Except as otherwise modified by Section 33 below, “Tenant’s Proportionate Share” shall mean 95% percentage being the percentage calculated by dividing 54,000 square the Tenant’s Rentable Area contained in the Premises; rentable area shall be determined by the Landlord on a uniform basis for the tenants of the Building;

 

(iv)  “Taxes” shall mean all real estate taxes and assessments, special or otherwise, levied or assessed upon or with respect to the Land and/or Building and ad valorem taxes for any personal property used in connection therewith. Should the State of Indiana, or any political subdivision thereof, or any other governmental authority having jurisdiction over the Land and/or the Building, (a) impose a tax, assessment, charge or fee, or increase a then existing tax, assessment charge or fee, which Landlord shall be required to pay either by way of substitution for such real estate taxes and ad valorem personal property taxes, or in addition to such real estate taxes and ad valorem personal property taxes, or (b) impose an income or franchise tax or a tax on rents in substitution for a tax levied against the Land and/or the Building and/or the personal property used in connection with the Land or Building, all such taxes, assessments, fees or charges (hereinafter defined as “in lieu taxes”) shall be deemed to

 

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constitute Taxes hereunder. Taxes shall also include all reasonable fees and costs incurred by Landlord in seeking to obtain a reduction of, or a limit on the increase in, any Taxes, regardless of whether any reduction or limitation is obtained. Except as hereinabove provided with regard to in lieu taxes, Taxes shall not include any inheritance, estate, succession, transfer, gift, franchise, net income or capital stock tax; and

 

(v)  “Operating Expenses” shall mean all reasonable and customary expenses, costs and disbursements (other than Taxes) of every kind and nature for the applicable Calendar Year on an accrual basis paid or incurred by Landlord or Landlord’s beneficiaries in connection with the ownership, management, operation and repair of the Land and Building, determined in accordance with generally accepted accounting principles consistently applied, except the following:

 

(a) Costs of alterations of any other tenant’s premises;

 

(b) Principal or interest payments on loans secured by mortgages or trust deeds on the Building and/or on the Land;

 

(c) Costs of Capital Improvements, except that Operating Expenses shall include: (1) the cost during the Term, as reasonably amortized by Landlord over the full economic life of the improvement, together with interest thereon at the prime lending rate as stated from time to time by FIFTH THIRD BANK on the unamortized amount of any capital improvement completed after the Base Year which reduces any component cost included within Operating Expenses; and (2) the cost of any capital improvements which are necessary to keep the Land and Building in compliance with all governmental rules and regulations applicable from time to time thereto, and to the extent that Operating Expenses are reduced to the capital improvement;

 

(d) Real estate brokers’ leasing commission;

 

(e) Attorneys’ fees, costs and disbursements and other expenses incurred in connection with negotiations or disputes with tenants, other occupants, or prospective tenants or occupants; and

 

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(f) Payments to affiliates of Landlord or Landlord’s beneficiaries in excess of the fair market value of the goods or services provided by such affiliates.

 

B.  Additional Rent. Upon commencement of Tenant’s obligation to pay Base Rent hereunder, Tenant shall pay to Landlord as Additional Rent, in addition to the Base Rent required by Section 3 hereof an amount (“Additional Rent”) equal to Tenant’s Proportionate Share of the Taxes and Operating Expenses incurred by Landlord during each Calendar Year. The Additional Rent with respect to each Calendar Year shall be paid in monthly installments, in an amount reasonably estimated from time to time by Landlord and communicated by written notice to Tenant. Landlord shall cause to be kept books and records showing Operating Expenses and Taxes in accordance with generally accepted accounting principles and shall make such books and records available to Tenant for inspection and copying, upon Tenant’s request. As promptly as practicable following the close of each Calendar Year, Landlord shall cause a firm of independent certified public accountants to review such books and records (and to do such other work as may be necessary to enable such firm to give the certificate hereinafter required) and to deliver to Landlord its certificate specifying the amount of Operating Expenses and Taxes for such Calendar Year for the Building. After receipt of such certificate, Landlord shall cause the amount of the Additional Rent for such Calendar Year to be computed based on Operating Expenses and Taxes for such Calendar Year for the Building as specified in such firm’s certificate and Landlord shall deliver to Tenant a statement of such amount and Tenant shall pay any deficiency to Landlord as shown by such statement within thirty (30) days after receipt of such statement. The certificate of such independent Accounting firm as to the amount of Operating Expenses and Taxes for such Calendar Year for the Building shall constitute a determination which is final and conclusive on Tenant. If the total for the estimated monthly installments paid by Tenant during any Calendar Year exceeds the actual Additional Rent due from Tenant for such Calendar Year, at Landlords option, such excess shall be either credited against payments next due hereunder or refunded by Landlord, provided Tenant is not then in default hereunder. The amount of the refund of Taxes received by Landlord shall be credited against Taxes for the year in which such refund is received. In determining the amount of Taxes for any year, the amount of special assessments to be included

 

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shall be limited to the amount of the installment (plus any interest payable thereon) of such special assessment required to be paid during such year as if the Landlord had elected to have such special assessment paid over the maximum period of time permitted by law. All references to Taxes “for” a particular year shall be deemed to refer to Taxes assessed or levied during such year without regard to when such Taxes are paid. Termination of this Lease shall not terminate the obligation of Landlord to make refunds to Tenant unless such termination is due to the default of the Tenant.

 

5.                                      SECURITY DEPOSIT:

 

Landlord and Tenant each acknowledge and agree that Tenant has deposited with Landlord a total of [*] as security deposits pursuant to the Current Leases (the “Prior Security Deposits”). On the Effective Date, Tenant shall deposit an additional [*] with Landlord as additional security (the “Additional Security Deposit”) for the performance of all covenants and agreements of Tenant hereunder. Landlord and Tenant each acknowledge and agree that Landlord shall retain the Prior Security Deposits and the Additional Security Deposit as security for the performance of all covenants and agreements of Tenant hereunder. For purposes of this Lease, the Prior Security Deposits and the Additional Security Deposit shall be referred to as the “Security Deposit”.  Landlord may at any time or times apply all or any portion of the Security Deposit in payment of any amounts due Landlord from Tenant. Upon termination of the Lease and full performance of all of Tenant’s obligations hereunder, so much of the security Deposit as remains unapplied shall be returned to Tenant.  The Security Deposit shall not bear interest. The Security Deposit shall not be deemed or construed as advance payment of rent for any month of the Term of the Lease.

 

6.                                      USE AND CONDITION OF PREMISES:

 

Tenant shall use and occupy the Premises for medical biomaterial related processing, and administrative, operational and development activities associated with such processing. The Tenant’s taking possession of any portion of the Premises shall be conclusive evidence that such portion of the Premises was in good order and satisfactory condition when the Tenant took possession, subject to any latent defects. No promise of the Landlord to alter, remodel or improve the Premises or the Building and no representation by

 

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Landlord or its agents respecting the condition of the Premises or the Building have been made to Tenant or relied upon by Tenant, except as set forth in Section 1 above.

 

7.                                      SERVICES.

 

A.  List of Services. Landlord shall provide the following services on all days during the Term, except Sundays and federal and state legal holidays, unless otherwise stated:

 

(i)  Heating and air conditioning in the Premises, 24 hours per day 365 days per year.

 

(ii)  All natural gas service to the Premises.

 

(iii)  All electrical service to the Premises.

 

(iv)  Lafayette Water Company water and sewer service from the regular Building outlets for drinking, lavatory and toilet purposes.

 

(v)  Adequate wiring and facilities for standard building lighting fixtures provided by Landlord and for Tenant’s incidental uses. Tenant shall bear the cost of replacement bulbs and ballasts for lighting fixtures. In respect to such incidental uses, adequate electrical wiring and facilities will be furnished in the Premises by Landlord, provided that (a) the connected electrical load of the incidental use equipment and lights does not exceed an average of one (1) watt per square foot of the Premises;

 

(b)  the electricity so furnished for incidental uses will be at a nominal 120 volts and no electrical circuit for the supply of such incidental use will have a current capacity exceeding 15 amperes; and

 

(c)  such electricity will be used only for equipment and accessories normal to office usage. If Tenant’s requirements for electricity for incidental uses are in excess of those set forth in the preceding sentence, the Landlord reserves the right to require Tenant to install the conduit, wiring and other equipment necessary to supply electricity for such excess incidental use requirements at the Tenant’s expense by arrangement with Duke Energy.

 

(iv)  Janitor services in and about the common areas of the Building comparable to the standard janitor service

 

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furnished by other similar Tippecanoe County, Indiana office buildings.

 

(v)  Window washing of all outside windows in the Premises at intervals to be determined by Landlord, but not less than two (2) times per Calendar Year.

 

(vi)  Snow plowing and landscape maintenance.

 

B.  Interruption of Services. Tenant agrees that Landlord shall not be liable for damages, either by abatement of Rent or otherwise, for failure to furnish or delay in furnishing any service, or for any diminution in the quality or quantity thereof, when such failure or delay or diminution is occasioned, in whole or in part, by repairs, renewals or improvements, by any strike, lockout or other labor trouble, by inability to secure electricity, gas, water, or other fuel at the Building after reasonable effort so to do, by any accident or casualty whatsoever, by the act or default of Tenant or other parties, or by any other cause beyond Landlord’s reasonable control; and such failures or delays or diminution shall never be deemed to constitute an eviction or disturbance of the Tenant’s use and possession of the Premises or relieve the Tenant from paying Rent or performing any of its obligations under this Lease unless the above services are interrupted for three (3) consecutive banking business days. Landlord shall be diligent in its efforts to cure such failure or diminution.

 

C.  Charges for Services, Charges for any services for which Tenant is required to pay from time to time hereunder shall be due and payable at the same time as the installment of Rent with which they are billed, or, if billed separately, shall be due and payable within thirty (30) days after such billing. If Tenant shall fail to make payment for any such services, Landlord may, with notice to Tenant, discontinue any or all of such services and such discontinuance shall not be deemed to constitute an eviction or disturbance of the Tenant’s use and possession of the Premises or relieve Tenant from paying Rent or performing any of its other obligations under this Lease.

 

8.                                      REPAIRS:

 

A.  Repairs By Landlord. During the Term, Landlord will keep the foundation, exterior walls, roof, downspouts and gutters, all structural elements of the Building,

 

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and the plumbing and electrical systems in the common areas of the Building, in good order, condition and repair. Landlord shall be responsible, at its sole cost and expense, for the replacement (not preventative maintenance and repair) of the Excluded HVAC Units (as such are defined in Section 8.B below). In addition, Landlord will operate, maintain and repair the common areas of the Building. Notwithstanding the foregoing, except as otherwise provided in this Lease, Tenant will be responsible for and will pay all expenses and costs arising from the negligence or willful misconduct of Tenant and its agents and employees.

 

B.  Repairs By Tenant. Except as provided in paragraph A of Section 8 above and elsewhere in this Lease and except for damages resulting from Landlord’s negligence or willful misconduct, Tenant will, at Tenant’s sole cost and expense, keep the Premises in good repair and condition at all times during the Term and Tenant shall promptly and adequately repair all damage to the. Premises and replace and repair all damaged or broken fixtures and appurtenances under the supervision and subject to the approval of the Landlord, and within any reasonable period of time specified by the Landlord. Tenant acknowledges and agrees to keep in good order and repair, at Tenant’s sole cost and expense, the water pipes, sewer drains, lamps, bulbs, ballasts and starters, and any and all mechanical devices within the Premises, Tenant shall, promptly and at its sole expense, replace all glass on the Premises which may be broken with glass of the same size and quality as the glass broken.

 

Tenant hereby acknowledges and agrees that a substantial portion of the Building’s HVAC systems and equipment are designed for Tenant’s process load (i.e., cleanroom applications etc.). Landlord and Tenant each acknowledge and agree that the only HVAC units not designed for Tenant’s process load are the units listed on Exhibit “E” attached hereto (the “Excluded HVAC Units”). Tenant acknowledges and agrees that it shall be responsible, at its sole cost and expense, for the preventative maintenance and repair of the heating, ventilating and air-conditioning systems and equipment for the entire Building including the Excluded HVAC Units. Tenant further acknowledges and agrees that it shall be responsible, at its sole cost and expense, for the replacement of the heating, ventilating and air-conditioning systems and equipment for the entire Building with the exception of the Excluded HVAC Units.

 

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Upon the expiration of the Term or upon the termination of Tenant’s possession, whether by lapse of time or at the option of Landlord as herein provided, Tenant shall have performed all the necessary preventative maintenance, repair, and replacement of the heating, ventilating and air-conditioning systems and equipment for the entire Building (with the exception of the replacement of the Excluded HVAC Units) and such shall be in good working order.

 

If the Tenant fails to satisfy any of the foregoing responsibilities, Landlord may, but need not, make such repairs and replacements, and Tenant shall pay Landlord the cost thereof, including a percentage of the cost thereof (to be uniformly established for the Building) sufficient to reimburse Landlord for all overhead, general conditions, fees and other costs or expenses arising from Landlord’s involvement with such repairs and replacements forthwith upon being billed for same. Landlord may, but shall not be required to, enter the Premises at all reasonable times (without unnecessary disturbance to Tenant) to make such repairs, alterations, improvements and additions to the Premises or to the Building or to any equipment located in the Building as Landlord Shall desire or deem necessary or as Landlord may be required to do by governmental authority or court order or decree.

 

9.                                      ADDITIONS AND ALTERATIONS:

 

A.  Landlord’s Consent. Tenant shall not, without the prior written consent of Landlord, make any alterations, improvements or additions to the Premises. Landlord’s refusal to give said consent shall be conclusive, but shall not be unreasonably withheld, conditioned, or delayed. If Landlord consents to said alterations, improvements or additions, it may impose such reasonable conditions with respect thereto as Landlord deems appropriate, including without limitation, requiring Tenant to furnish Landlord with security for the payment of all costs to be incurred in connection with such work, insurance against liabilities which may arise out of such work, and plans and specifications plus permits necessary for such work. The work necessary to make any alterations, improvements or additions to the Premises shall be done at Tenant’s expense by employees of, or contractors hired by, Landlord except to the extent Landlord gives its prior written consent to Tenant’s hiring contractors. Tenant shall promptly pay to Landlord or to Tenant’s contractors, as the case may

 

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be, when due, the cost of all such work and of all decorating required by reason thereof. If such work is performed by Landlord, Tenant shall also pay td Landlord a management fee equal to [*] of the cost of such work. Upon completion of such work, Tenant shall deliver to Landlord, if payment is made directly to contractors, evidence of payment, contractor’s affidavits and full and final waivers of all liens for labor, services or materials. If Tenant performs such work, Tenant shall defend and hold Landlord and the Land and Building harmless from all costs, damages, liens and expenses related to such work. All work done by Tenant or its contractors pursuant to Sections 8 and 9 shall be done in a first-class workmanlike manner, using only good grades of materials and shall comply with all insurance requirements and all applicable laws and ordinances and rules and regulations of governmental departments or agencies.

 

B.  Landlord’s Ownership of Alterations, Improvements and Additions. At the termination of this Lease, whether by lapse of time or otherwise, all alterations, improvements and additions to the Premises, whether temporary or permanent in character, made or paid for by Landlord shall, without compensation to Tenant, become Landlord’s property at the termination of this Lease by lapse of time or otherwise and shall be relinquished to Landlord in good condition, ordinary wear and tear excepted.

 

10.                               COVENANT AGAINST LIENS:

 

A.  No Liens. Tenant has no authority or power to cause or permit any lien or encumbrance of any kind whatsoever, whether created by act of Tenant, operation of law or otherwise, to attach to or be placed upon Landlord’s title or interest in the Land, Building or Premises, and any and all liens and encumbrances created by Tenant shall attach to Tenant’s interest only. Tenant covenants and agrees not to suffer or permit any lien of mechanics or material men or others to be placed against the Land, Building or the Premises with respect to work or services claimed to have been performed for or materials claimed to have been furnished to Tenant or the Premises and in case of any such lien attaching, Tenant covenants and agrees to cause it to be within thirty (30) days, released and removed of record or bonded in a manner reasonably satisfactory to Landlord.

 

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B.  Landlord’s Right to Remove Liens. In the event that the Tenant does not undertake appropriate action to have the lien released within thirty (30) days or a reasonable period of time after Tenant is notified that a lien or encumbrance has been imposed against the Landlord’s title or interest in the land, building or premises, then the Landlord, at its sole option, may take all action necessary to release and remove such lien, without any duty to investigate the validity thereof and Tenant shall promptly upon notice reimburse Landlord for all sums, costs and expenses (including reasonable attorney’s fees) incurred by Landlord in connection with such lien. Provided, however, that in the event Tenant shall be desirous of disputing a lien, Tenant shall notify Landlord forthwith and shall deposit into a trust account to be held by Landlord’s attorneys, an amount sufficient to release the lien should Landlord be required to do so at any time by its lender or if required in connection with marketable title to the Premises.

 

11.                               INSURANCE:

 

A.  Waiver of Subrogation. Landlord and Tenant hereby mutually waive their respective rights of recovery against each other for any loss insured by Fire, Extended Coverage and other Property Insurance Policies existing for the benefit of the respective parties.

 

B.  Landlord’s Insurance. Landlord shall carry and maintain during the entire Term of this Lease, fire and extended coverage insurance for the full replacement value of the Building.

 

C.  Tenant’s Insurance. Tenant shall carry and maintain Comprehensive General Liability insurance during the entire Term of this Lease insuring Tenant and Landlord as their interests may appear from an insurance company licensed to do business in the State of Indiana, and Tenant shall maintain the following coverage in the following amounts:

 

(i)  In case of personal injury to or the death of any person or persons, not less than [*] for each injury or death to a person and [*] for each incident involving personal injury or death to persons, and, in case of property damage, not less than [*] for anyone occurrence; and

 

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(ii)  In case of fire, sprinkler leakage, malicious mischief, vandalism and other extended coverage perils, for the full insurable replacement value of all office furniture, trade fixtures, office equipment, merchandise and all other items of Tenant’s property on the Premises.

 

Tenant shall, prior to the Commencement Date, furnish Landlord with certificates evidencing such coverage, which certificates shall state that such insurance coverage may not be changed or canceled without at least ten (10) days prior written notice to Landlord or Tenant.

 

D.  Avoid Action Increasing Rates. Tenant shall comply with all applicable laws and ordinances, all orders and decrees of court and all requirements of other governmental authorities, and shall not, directly or indirectly, make any use of the Premises which may thereby be prohibited or be dangerous to person or property or which may jeopardize any insurance coverage, or may increase the cost of insurance or require additional insurance coverage. If by reason of the failure of Tenant to comply with the provisions of this Section 11D, any insurance coverage is jeopardized or insurance premiums are increased, Landlord shall require Tenant to make immediate payment of the increased insurance premium. Landlord will provide Tenant with written evidence documenting the increased premium, upon request from Tenant.

 

12.                               FIRE OR CASUALTY:

 

Section 8 hereof notwithstanding, if the Premises or the Building, including machinery or equipment used in its operation) shall be damaged by fire or other casualty, and if such damage does not render all or a substantial portion of the Premises or Building untenantable, then Landlord shall repair and restore the same with reasonable promptness, subject to reasonable delays for insurance adjustments and delays caused by matters beyond Landlord’s reasonable control. If any such damage renders all, or a substantial portion of the Premises or Building untenantable, either Tenant or Landlord shall have the right to terminate this Lease as of the date of such damage (with appropriate prorations of Rent being made for Tenant’s possession subsequent to the date of such damage of those tenantable portions of the Premises) upon giving written notice to the other at any time within sixty (60) days

 

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after the date of such damage, Unless this Lease is terminated as provided in the two (2) proceeding sentences, Landlord shall proceed with reasonable promptness to repair and restore the Premises with an appropriate abatement of rent or a proportionate basis being made to reflect that portion of the Premises rendered untenantable for any period of time. For the purposes of this Section B the term “untentable” shall mean that Tenant cannot conduct its business activities within the Premises in a manner reasonably comparable to the manner in which Tenant conducted its business operations prior to the occurrence of the damage.

 

Notwithstanding anything to the contrary herein set forth, Landlord shall have no duty pursuant to this Section 12 to repair or restore any portion of the alterations, additions, improvements and decorations thereto except to the extent that such alterations, additions, improvements and decorations are fixed and permanent and were provided by Landlord, at Landlord’s cost, at the beginning of the Term. If Tenant wants any other or additional repairs or restorations and if Landlord consents thereto the same shall be done at Tenant’s expense, subject to all of the provisions of Section 8 hereof.

 

13.                               WAIVER OF CLAIMS —INDEMNIFICATIONS:

 

To the extent not prohibited by law, Landlord and its officers, agents, servants and employees shall not be liable for any damage either to person or property or resulting from the loss of use thereof sustained by Tenant or by other persons due to the Building or any part thereof or any appurtenances thereof becoming out of repair, or due to the happening of any accident or event in or about the Building, or due to any act or neglect of any tenant or occupant of the Building or of any other person, except if caused by the negligence of Landlord. This provision shall apply particularly (but not exclusively) to damage caused by gas, electricity, snow, frost, steam, sewage, sewer gas or odors fire, water or by the bursting or leaking of pipes, faucets, sprinklers, plumbing fixtures, and windows, and shall apply without distinction as to the person whose act or neglect was responsible for the damage, whether the damage was due to any of the causes specifically enumerated above or to some other cause of an entirely different kind. Tenant further agrees that all personal property upon the Premises, or upon loading docks, receiving and holding areas, or freight elevators of

 

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the Building shall be at the risk of Tenant only, and that Landlord shall not be liable for any loss or damage thereto or theft thereof without limitation of any other provisions hereof. Tenant and Landlord agree to defend, protect, indemnify and save harmless each other from and against all liability to third parties arising out of the acts of Tenant or Landlord and its servants, agents, employees, contractors, suppliers, workmen and invitees. Notwithstanding the above, Landlord shall be liable for damages or injuries caused in any way by the above events if Landlord or those for whom Landlord is legally responsible act negligently or intentionally.

 

14.                               NONWAIVER:

 

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

 

15.                               CONDEMNATION:

 

If the Land or the Building or any substantial portion thereof shall be taken or condemned by any competent authority for any public or quasi-public use or purpose (a “taking”) , or if the configuration of any street, alley, riverbank, or bridge adjacent to the Building is changed by any competent authority and such taking or change in configuration makes it necessary or desirable to remodel or reconstruct the Building, Landlord or Tenant shall have the right, exercisable at its sole discretion, to cancel this Lease as soon as possible, and in all cases upon not less than ninety (90) days notice prior to the date of cancellation designated in the notice. No money or other consideration shall be payable by Landlord to Tenant for the right of

 

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cancellation and Tenant shall have no right to share in the condemnation award or in any judgment for damages caused by such taking or change in configuration, provided Tenant shall be entitled to assert its own claim against the condemning authority for relocation expenses, etc.

 

16.                               ASSIGNMENT AND SUBLETTING:

 

A.  Prohibition Against Assignment or Subletting. Except as provided in this Section 16, Tenant shall not, without the prior written consent of Landlord, which consent shall not be unreasonably withheld, conditioned, or delayed: (i) assign, convey, or mortgage this Lease or any interest hereunder; (ii) suffer to occur or permit to exist any assignment of this Lease, or any lien upon Tenant’s interest, involuntarily or by operation of law; (iii) sublet the Premises or any part hereof; or (iv) permit the use of the Premises by any parties other than Tenant and its employees. Any such action on the part of Tenant shall be void and of no effect. Landlord’s consent to any assignment, subletting or transfer or Landlord’s election to accept any assignee, subtenant or transferee as the tenant hereunder and to collect Rent from such assignee, subtenant or transferee shall not release the original Tenant from any covenant or obligation under this Lease. Landlord’s consent, to any assignment, subletting or transfer shall not constitute a waiver of Landlord’s right to withhold its consent to any future assignment, subletting or transfer.

 

B.  Landlord’s Right to Terminate. Except as provided below in this Paragraph 16, Landlord shall have the right to terminate this Lease as to that portion of the Premises which Tenant seeks to assign or sublet for the proposed term of the sublease or assignment, whether by requesting landlord’s consent thereof or otherwise. Landlord may exercise such right to terminate by giving written consent to such assignment or sublease. In the event that Landlord exercises such right to terminate, Landlord shall be entitled to recover possession of such part of the Premises on the latter of (i) the proposed date for possession by such assignee or subtenant, or (ii) ninety (90) days after the date of Landlord’s notice of termination to Tenant.

 

C.  Landlord’s Receipt of Profit. In the event that Landlord fails to exercise its termination right as set forth in the preceding paragraph, and in the event that

 

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Landlord consents to any assignment or sublease of any portion of the Premises, as a condition of Landlord’s consent, if landlord so elects to consent, Tenant shall pay to Landlord fifty percent (50%) of the profit derived by Tenant from such assignment or sublease. Tenant shall furnish landlord with a sworn statement setting forth in detail the computation of profit (which computation shall be based upon generally accepted accounting principles), and Landlord, or its representatives, shall have access to the books, records, and papers of Tenant in relation thereto and to make copies thereof. Any Rent in excess of that paid by Tenant hereunder realized by reason of such assignment shall be deemed an item of such profit. If a part of the consideration for such assignment shall be payable other than in cash the payment to Landlord shall be payable in accordance with the foregoing percentage of the cash and other noncash considerations in such form as is satisfactory to Landlord. Such percentage of Tenant’s profit shall be paid to Landlord promptly by Tenant upon Tenant’s receipt from time to time or periodic payments from such assignee or subtenant or at such other time as Tenant shall realize its profits from such assignment or sublease.

 

17.                               SURRENDER OF POSSESSION:

 

Upon the expiration of the Term or upon the termination of Tenant’s right of possession, whether by lapse of time or at the option of Landlord as herein provided, Tenant shall forthwith surrender the Premises to Landlord in good order, repair and condition, ordinary wear and tear, fire or other casualty excepted.  Any interest of Tenant in the alterations, improvements and additions to the Premises, (including without limitation all carpeting or floor covering) made or paid for by Landlord or Tenant, shall without compensation to Tenant, become Landlord’s property at the termination of this Lease by lapse of time or otherwise, and such alterations, improvements and additions shall be relinquished to Landlord in good condition, ordinary wear and tear, fire or other casualty excepted. At the termination of the Term or of Tenant’s right of possession, Tenant agrees to remove the following items of Tenant’s property: office furniture, trade fixtures, office equipment and all other items of Tenant’s property on the Premises. At Tenant’s option, Tenant shall repair damages to Landlord’s satisfaction, or Tenant shall pay to Landlord upon demand, the cost of repairing any damage to the Premises and to the Building

 

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caused by any such removal. If Tenant shall fail or refuse to remove any such property from the Premises, Tenant shall be conclusively presumed to have abandoned the same, and title thereto shall thereupon pass to Landlord without any cost either by set-off, credit, allowance or otherwise, and Landlord may, at its option, accept the title to such property or at Tenant’s expense may (i) remove the same or any part in any manner that Landlord shall choose, repairing any damage to the Premises caused by such removal, and (ii) store, destroy or otherwise dispose of the same without incurring liability to Tenant or any other person.

 

18.                               HOLDING OVER:

 

Tenant shall pay to Landlord an amount as Rent equal to Two hundred percent (200%) of the Rent herein provided during each month or portion thereof for which Tenant shall retain possession of the Premises or any part thereof, after the termination of the Term or of Tenant’s right of possession, whether by lapse of time or otherwise and also shall pay all damages sustained by Landlord, whether direct or consequential, on account thereof. In the event Tenant shall hold over for a period in excess of sixty (60) days, then and in that event, at the option of Landlord expressed in a written notice to Tenant and not otherwise, such holding over shall constitute a renewal of this Lease for a period of one (1) year at such Base Rent (increased by five percent (5%) over the Base Rent payable at the Lease termination date) and Additional Rent as would be applicable for such year, and for purposes of determining the Additional Rent for any renewal period the original Base Year shall remain as the Base Year. The provisions of this Paragraph 18 shall not be deemed to limit or constitute a waiver of any other rights or remedies of Landlord provided herein or at law.

 

Tenant shall be deemed to have retained possession of the Premises if it fails to remove its property from the. Premises as required in Paragraph 17 such that Landlord is reasonably prevented from delivering possession of all or any part of the Premises to a subsequent tenant,

 

19.                               ESTOPPEL CERTIFICATE:

 

Tenant agrees that, from time to time, upon not less than ten (10) days prior request by Landlord, the Tenant, or Tenant’s duly-authorized representative

 

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having knowledge of the following fasts, will deliver to Landlord a statement in writing certifying to the extent true (i) that this Lease is unmodified and in full force and effect (or if there have been modifications, that the Lease as modified is in full force and effect) ; (ii) the dates to which Rent and other charges have been paid; (iii) that the Landlord is not in default under any provision of this Lease, or, if in default, the nature thereof in reasonable detail; and (iv) such further matters as are set forth on the form of estoppel certificate attached hereto as Exhibit “C” and made a part hereof, it being intended that any such statement may be relied upon by any prospective mortgagees thereof, or any prospective assignee of any mortgage thereof, Tenant shall execute and deliver to Landlord, the estoppel certificate attached as Exhibit “C” and whatever reasonable instruments may be required for such purposes, and in the event Tenant fails so to do within twenty (20) days after demand writing, Tenant may, at Landlord’s option, be considered in default under this Lease.

 

20.                               SUBORDINATION:

 

This Lease is subject and subordinate to all present and future ground or underlying leases of the Land, and to the lien of any mortgages or trust deeds, now and hereafter in force against the Land and Building, or either, and to all renewals, extensions, modifications, consolidations and replacements thereof, and to all advances made or hereafter to be made upon the security of such mortgages or trust deeds, unless the holders of such mortgages or trust deeds or the lessors under such mortgages or trust deeds or the lessors under such ground leases or underlying ].eases require in writing that this Lease shall be superior thereto. Tenant shall,. at Landlord’s request, execute such further reasonable instruments or assurances as may reasonably be necessary to evidence or confirm the subordination or superiority of this Lease to any such mortgages, trust deeds, ground leases or underlying leases, provided such instruments or assurances do not interfere with Tenant’s rights of quiet enjoyment as set forth in Section 25 below. Tenant hereby irrevocably authorizes Landlord to execute and deliver, in the name of the Tenant, any such instrument or instruments if Tenant fails to do so provided that such execution and delivery by Landlord shall in no way relieve Tenant from the obligation of executing such instruments of subordination or superiority. Landlord agrees to use its best efforts to obtain and deliver to

 

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Tenant a non-disturbance agreement running to the benefit of Tenant from all holders of subordinated or superior interests, upon Tenant executing any of the aforedescribed subordination documents.

 

21.                               CERTAIN RIGHTS RESERVED BY LANDLORD:

 

Landlord shall have the following rights, each of Which Landlord may exercise without notice to Tenant, except as provided below, and the reasonable exercise of any such rights shall not be deemed to constitute an eviction or disturbance of Tenant’s use or possession of the Premises and shall not give rise to any claim for set-off or abatement of Rent and any other claim.

 

A.  Upon reasonable advance notice to Tenant to change the Building’s name or street address.

 

B.  To install, affix and maintain any and all signs on the exterior and in the interior of the Building.

 

C.  To decorate or to make repairs, alterations, additions, or improvements, whether structural or otherwise, in and about the Building, or any part thereof, and for such purposes to enter upon the Premises, and, during the continuance of any said work, to temporarily close doors, entryway, public space and corridors in and about the Building and to interrupt or temporarily suspend services or use of facilities, all without affecting any of Tenant’s obligations hereunder, so long as the Premises are reasonably accessible and usable by Tenant.

 

D.  To retain, at all times, and to use in appropriate instances, including an emergency or as necessary during regular business hours after advance notice to Tenant, keys to all doors within and into the Premises. Tenant agrees to purchase only from Landlord additional duplicate keys as required, to change no locks, and not to affix locks on doors without the prior written consent of Landlord, not to be unreasonably withheld or delayed. Notwithstanding the provisions for Landlord’s access to Premises, Tenant relieves and releases the Landlord of all responsibility for claims arising out of theft, robbery and pilferage to the extent that such claims or liabilities are not the result of the negligent acts or omissions of Landlord, its officers, agents, servants, employees and/or contractors. Upon. the expiration of the Term or of Tenant’s right to possession, Tenant shall return all keys to Landlord

 

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and shall disclose to Landlord the combination of any safes, cabinets or vaults left in the Premises.

 

E.  To designate and approve, prior to installation, all types of window treatments, shades, blinds or draperies.

 

F.  To approve the weight, size and location of safes, vaults and other heavy equipment and articles in and about the Premises and the Building (so as not to exceed the legal live load per square foot designated by the structural engineers for the Building) and to require all such items and furniture and similar items to be moved into or out of the Building and the Premises only at such times and in such manner as Landlord shall reasonably direct in writing. Tenant shall not install or operate machinery or any mechanical devices of a nature not directly related to Tenant’s ordinary use of the Premises without the prior written consent of the Landlord. Movements of Tenant’s property into or out of the Building and within the Building are entirely at the risk and responsibility of Tenant.

 

G.  To close the Building after regular working hours and on Saturdays, Sundays and legal holidays; subject, however, to Tenant’s right to admittance to the Premises under such regulations as Landlord may reasonably prescribe from time to time, which may include but shall not be limited to, a requirement that persons entering or leaving the Building identify themselves to a watchman by registration or otherwise and establish their right to enter or leave the Building. Such regulations may include, but shall not be limited to, the requiring of identification from Tenant’s employees, agents, clients, customers, invitees, visitors or guests. Tenant shall have access to the Premises 24 hours per day, seven days a week, 52 weeks per year.

 

H.  To establish reasonable controls for the purpose of regulating all property and packages (both personal and otherwise) to be moved into or out of the Building and the Premises.

 

I.  To regulate delivery and service of supplies in order to insure the cleanliness and security of the Premises and to avoid congestion of the loading docks, receiving areas and freight elevators.

 

J.  To show the Premises to prospective tenants during regular business hours upon advance notice to Tenant during the last nine (9) months of the Term, and if

 

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abandoned, to show the Premises at any time and to prepare the Premises for re-occupancy.

 

K.  To erect, use and maintain pipes, ducts, wiring and conduits, and appurtenances thereto, in and through the Premises at reasonable locations.

 

L.  Except in cases of emergency, to enter the Premises during Tenant’s normal business hours upon reasonable advance notice to inspect the Premises. During such inspections, Landlord shall not unreasonably interfere with Tenant’s use of the Premises.

 

22.                               RULES AND REGULATIONS:

 

Tenant agrees to observe the rules and regulations for the Building attached hereto as Exhibit 4D” and made a part hereof. Both Landlord and Tenant shall have the right from time to time to recommend additional reasonable rules and regulations, or changes to the then existing rules and regulations, which they deem may be desirable for the use, entry, operation and management of the Premises and Building, and neither party shall unreasonably disagree to such recommendations. Each of such rules and regulations and any amendments thereto when mutually agreed shall become a part of this Lease. Tenant shall comply with all such rules and regulations provided, however, that such rules and regulations shall not contradict or abrogate any right or privilege herein granted to Tenant. Landlord agrees to enforce such rules and regulations in a non-discretionary manner.

 

23.                               TENANT’S DEFAULT, LANDLORD’S REMEDIES:

 

A.  If default shall be made in payment of the Rent or any installment thereof or in the payment of any other sum required to be paid by Tenant under this Lease and such default shall continue for five (5) days after due date, or if default shall be made in the observance or performance of any of the other covenants or conditions in this Lease which Tenant is required to observe and perform and such default shall continue for thirty (30) days after written notice to Tenant, provided that if such default cannot reasonably be cured within thirty (30) days the period of grace shall be extended for so long as Tenant in good faith is diligently prosecuting a cure, but, in no event whatsoever, shall such cure period extend beyond ninety (90) days, or if a default involves a hazardous condition and is not cured or action commenced to cure by Tenant immediately upon

 

24

 

written notice to Tenant, or if the interest of Tenant in this Lease shall be levied or under execution or other legal process, or if any voluntary petition in bankruptcy or for corporate reorganization or any similar relief shall be filed by Tenant, or if any involuntary petition in bankruptcy shall be filed against Tenant under any federal or state bankruptcy or insolvency act and shall not have been dismissed within thirty (30) days from the filing thereof, or if a receiver shall be appointed for Tenant or any of the property of Tenant by any court and such receiver shall not have been dismissed within thirty (30) days from the date of his appointment, or if Tenant shall make an assignment for the benefit of creditors, or if Tenant shall admit in writing Tenant’s inability to meet Tenant’s debts as they mature, or if Tenant shall abandon and cease paying Rent for the Premises during the Term, then Landlord may treat the occurrence of anyone or more of the foregoing events as a breach of this Lease, and thereupon at its option may by process of law and without breaching the peace, with notice to Tenant, have any one or more of the following described remedies in addition to all other rights and remedies provided at law or in equity or elsewhere herein:

 

(i)  Landlord may cancel and terminate this Lease by notice in writing to Tenant, and if such notice is given, all rights of the Tenant to the use and occupancy of the Premises will terminate as of the date set forth in such notice, and Tenant will at once surrender the possession of the Premises to Landlord and remove all of Tenant’s effects therefrom, and Landlord may forthwith re-enter the Premises and repossess itself thereof No termination of this Lease prior to the normal expiration thereof will affect Landlord’s right to collect Rent for the period prior to the termination thereof. If Tenant holds over after said notice of termination hereunder for a period of thirty (30) or more days, by failing to deliver possession, use and occupancy to Landlord, or by failing to remove all of Tenant’s effects therefrom, or otherwise, then Tenant will be deemed to be a tenant from month to month, and the value of the use of the Premises by Tenant as such tenant will be calculated in accordance with Section 18 above.

 

(ii)  Landlord may terminate Tenant’s right of possession and may repossess the Premises by forcible entry and detainer suit, so long as such can be accomplished without a breach of the peace., by taking

 

25

 

peaceful possession or otherwise, without termination this Lease, in which event Landlord will use reasonable best efforts to relet the same for the account of Tenant, for such rent and upon such terms as shall be satisfactory to Landlord. If Landlord shall fail to relet the Premises, Tenant shall pay to Landlord as damages, a sum equal to the amount of the Rent reserved in this Lease for the balance of the Term. If the Premises are relet and a sufficient sum shall not be realized from such reletting after paying all of the reasonable costs and expenses of all decoration, repairs, remodeling, alterations and additions, and the expenses of such reletting and of the collection of the rent accruing therefrom to satisfy the Rent provided for in this Lease, Tenant shall satisfy and pay the same upon demand. therefor from time to time. Nothing set forth herein shall relieve Landlord from its obligation to act reasonably to mitigate damages.

 

B.  Tenant agrees that Landlord may file suit to recover any sums falling due under the terms of this Section 23 from time to time.

 

C.  Notwithstanding any other provisions contained in this Lease, in the event (i) Tenant, or its successors or assigns, shall become insolvent or bankrupt, or if it or their interest under this Lease shall be Levied upon or sold under execution or other legal process, or; (ii) is seized or taken over by Tenant’s supervisory authority (“Authority”) , Landlord may, in either such event, terminate this Lease only with the concurrence of any receiver or liquidator appointed by such Authority; provided, further, that in the event this Lease is terminated by the receiver or liquidator, the maximum claim of Landlord for Rent, damages or indemnity for injury resulting from the termination, rejection or abandonment of the unexpired Lease shall by law in no event be in an amount greater than all accrued and unpaid Rent to the date of such termination.

 

24.                               EXPENSE OF ENFORCEMENT:

 

A.  Tenant shall pay upon demand all Landlord’s reasonable costs, charges and expenses, including the reasonable fees and out-of-pocket expenses of counsel (except in-house counsel, if any), agents and others retained by Landlord incurred in enforcing the Tenant’s obligations hereunder or incurred by the Landlord in any negotiation or transaction (not including the

 

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negotiation and preparation of this Lease) in which the Tenant causes the Landlord, without the Landlord’s fault, to become involved or concerned.

 

B.  In the event any litigation is brought to enforce any term, covenant or condition of this Lease on the part of Landlord or Tenant, the prevailing party, in such litigation shall be entitled to reasonable attorneys’ fees to be fixed by the court in such action or proceeding.

 

25.                               COVENANT OP QUIET ENJOYMENT:

 

The Landlord covenants that the Tenant, on paying the Rent, charges for services and other payments herein reserved and on keeping, observing and performing all other terms, covenants, conditions, provisions and agreements herein contained on the part of the Tenant to be kept, observed and performed, shall during the Term, peaceably and quietly have, hold and enjoy the Premises subject to the terms, covenants, conditions, provisions, and agreements hereof.

 

26.                               INTENTIONALLY DELETED

 

27.                               ENVIRONMENTAL PROVISIONS:

 

A.  “Hazardous Materials” include substances (i) which require remediation under any Environmental Laws; or (ii) which are or become defined as a “hazardous waste”, “hazardous substance”, pollutant or contaminant under any Environmental Laws; or (iii) which are toxic, explosive, corrosive, flammable, infectious, radioactive carcinogenic or mutagenic; or (iv) which contain petroleum hydrocarbons, polychlorinated biphenyls, asbestos, asbestos containing materials or urea formaldehyde.

 

B.  “Environmental Laws” mean all applicable present and future statutes, regulations, rules, ordinances, codes, permits or orders of all governmental agencies, departments, commissions, boards, bureaus, or instrumentalities of the United States, states and their political subdivisions and all applicable judicial, administrative and regulatory decrees and judgments relating to the protection of public health or safety or of the environment.

 

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C.  “Environmental Damages” means all claims, judgments, losses, penalties, fines, liabilities, encumbrances, liens, costs and reasonable expenses of investigation, defense or good faith settlement resulting from violations of Environmental Laws, and including, without limitation; (i) damages for personal injury and injury to property or natural resources; (ii) reasonable fees and disbursements of attorneys, consultants, contractors, experts and laboratories; and (iii) costs of any cleanup, remediation, removal, response, abatement, containment, closure, restoration or monitoring work required by any Environmental Law and other costs reasonably necessary to restore full economic use of the Leased Premises or Project.

 

D.  Tenant agrees to indemnify, defend, reimburse and hold Landlord harmless against any Environmental Damages incurred by Landlord arising from Tenant’s breach of paragraph E of this Section 27 Landlord agrees to indemnify, defend, reimburse and hold Tenant harmless Against any Environmental Damages incurred by Tenant arising from Landlord’s breach of paragraph E of this Section 27. The obligations of both parties in this paragraph shall survive the termination of this Lease and the discharge of all other obligations owed by the parties to each other under this Lease.

 

E.  Landlord and Tenant shall: (i) comply with all Environmental Laws; (ii) not cause or permit any Hazardous Materials to be treated, stored, disposed of, generated, or used in the Leased Premises or the Building, provided, however, that Landlord and Tenant may each store, use or dispose of products customarily found in offices and used in connection with operation and maintenance of property if each complies with all Environmental Laws and does not contaminate the Leased Premises, the Building or the environment; and (iii) promptly after receipt, deliver to the other party a copy of any communication concerning any past or present, actual or potential violation of Environmental Laws.

 

28.          MISCELLANEOUS:

 

A.            Rights Cumulative. All rights and remedies of Landlord and Tenant under this Lease shall be cumulative and none shall exclude any other rights and remedies allowed by law.

 

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B.            Late Payment Charges. Tenant hereby acknowledges that late payment by Tenant to Landlord of Rent will cause Landlord to incur costs not contemplated by this Lease, the exact amount of which is difficult to ascertain. Such casts, include, but are not limited to, processing and accounting charges, attorneys’ fees and late charges which will be imposed upon Landlord by the terms of the mortgage covering the Premises. Accordingly, if any sum due from Tenant for Rent shall not be received by Landlord, or Landlord’s designee, on or before the fifth (5th) day of each month that said Rent is due as provided for herein, then, and in that event, Tenant shall pay to Landlord a late charge equal to ten percent (10R) of such overdue amount for each month, or part thereof, that said payment is overdue. said late charge amount shall be due notwithstanding any cure periods Tenant may have under Section 23 above. The parties hereby agree that such late charges represent a fair and reasonable estimate of the coat that Landlord will incur by reason of the late payment by Tenant. Acceptance of such late charges by Landlord shall in no event constitute a waiver of Tenant’s default with respect to such overdue amount, nor prevent Landlord from exercising any of the other rights and remedies granted hereunder.

 

C.            Terms. The necessary grammatical changes required to make the provisions hereof apply either to corporations or partnerships or individuals, men or women, as the case may require, shall in all cases be assumed as though in each case fully expressed. Further, Landlord and Tenant acknowledge and agree that when the word “term” is used herein, it shall also mean and refer to any additional renewed terms that Tenant shall exercise.

 

D.            Binding Effect. Each of the provisions of this Lease shall extend to and shall, as the case may require, bind or inure to the benefit not only of the Landlord and of Tenant, but also of their respective successors or assigns, provided this clause shall not permit any assignment by Tenant contrary to the provisions of Section 16 hereof.

 

E.            Lease Contains All Terms. All of the representations and obligations of Landlord and Tenant are contained herein and in the Exhibits attached hereto, and no modification, waiver or amendment of this Lease or of any of its conditions or provisions shall be binding the Landlord or Tenant unless in writing

 

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signed by Landlord and Tenant or by a duly authorized agent of the Landlord or Tenant empowered by a written authority signed by Landlord or Tenant.

 

F.            Delivery for Examination. Submission of the form of the Lease for examination shall not bind Landlord or Tenant in any manner, and no Lease or obligations of the Landlord or Tenant shall rise until this instrument is signed by both Landlord and Tenant and delivery is made to each.

 

G.            No Air Rights. No rights to any view or to light or air over any property, whether belonging to Landlord or any other person, are granted to Tenant by this Lease.

 

H.            Modifications of Lease. If any lender requires, as a condition to its lending funds, the repayment of which is to be secured by a mortgage or trust deed on the Land and Building or either, that certain modifications will not require Tenant to pay any additional amounts or otherwise, change materially the rights or obligations of Tenant hereunder, Tenant shall, upon Landlord’s request execute appropriate instruments effecting such modification.

 

I.             Transfer of Landlord’s Interest. Tenant acknowledges that Landlord has the right to transfer its interest in the Land and Building and in this Lease, and Tenant agrees that in the event of any such transfer of Landlord’s interest in this Lease Landlord shall automatically be released from all liability under this Lease, except for liability based on Landlord’s negligence or intentional acts or omissions and Tenant agrees to look solely to such transferee for the performance of Landlord’s obligations hereunder Tenant further acknowledges that Landlord may assign its interest in this Lease to a mortgage lender as additional security and agrees that such an assignment shall not release Landlord from its obligations hereunder and that Tenant shall continue to look to the Landlord for the performance of its obligations hereunder.

 

J.             Landlord’s Title. Landlord’s title is and always shall be paramount to the title of Tenant. Nothing herein contained shall empower Tenant to do any act which can, shall or may encumber the title of Landlord.

 

K.            Prohibition Against Recording. Except if required by applicable law, neither this Lease nor any

 

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memorandum, affidavit or other writing with respect thereto shall be recorded by the Tenant or Landlord or by anyone acting through under or on behalf of the Tenant or Landlord, and the recording thereof in violation of this provision shall make this Lease null and void at Landlord’s election.

 

L.            Caption. The captions of sections, paragraphs and subparagraphs ate for convenience only and shall not be deemed to limit, construe, affect or alter the meaning of such sections, paragraphs or subparagraphs.

 

M.           Covenants and Conditions. All of the covenants of Tenant and Landlord hereunder shall be deemed and construed to be “conditions” as well as “covenants” as though the words specifically expressing or importing covenants and conditions were used in each separate instance.

 

N.            Only Landlord/Tenant Relationships. Nothing contained in this Lease shall be deemed or construed by the parties hereto or by any third party to create the relationship of principal and agent, partnership, joint venture or any association between Landlord and Tenant, it being expressly understood and agreed that neither the method of computation of Rent nor any act of the parties hereto shall be deemed to create any relationship between Landlord and Tenant other than the relationship of Landlord and Tenant.

 

O.            Definition of “Landlord”. All indemnities, covenants and agreements of Tenant contained herein which inure to the benefit of Landlord shall be construed to also inure to the benefit of the Landlord’s beneficiaries and all partners therein and the agent and employees thereof.

 

P.            Landlord to Act Reasonable. Wherever in this Lease provision is made for the approval or consent of Landlord, or that any matter is to be to Landlord’s satisfaction, or that any matter is to be estimated or determined by Landlord, or Tenant is required to pay any attorneys’ fees or other costs, or the like, such approval, consent, satisfaction, estimate, determination, attorneys’ fees, costs, or the like, shall be made, given or determined by Landlord pursuant to a reasonable application of judgment in accordance with the prevailing standard of commercial custom.

 

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Q.            Broker. Tenant and Landlord each represent and warrant to the other that they have not dealt with any broker in connection with this Lease.

 

R.            Counterparts. This Lease and any amendments, waivers, consents or supplements, may be executed in any number of counterparts and by different parties hereto in separate counterparts, each of which, when so executed and delivered, shall be deemed an original, but all of which counterparts shall constitute but one lease.

 

S.             Jointly Drafted Lease. This Lease is the result of the joint efforts and negotiations of the parties hereto with each party being represented, or having the opportunity to be represented, by legal counsel of its own choice, and no singular party is the author or drafter of the provisions hereof. Each of the parties assumes joint responsibility for the form and composition of each and all of the contents of this Lease and each party agrees that this Lease shall be interpreted as though each of the parties participated equally in the composition hereof and each and every term and provision. The parties agree that the rule of judicial interpretation to the effect that any ambiguity or uncertainty contained in an agreement is to be construed against the party who drafted the agreement shall not be applied in the event of any disagreement or dispute arising out of this Lease.

 

T.            Choice of Law.  This Lease shall be governed and controlled as to validity, enforcement, interpretation, effect and in all other respects by the internal laws of the State of Indiana, without reference to the conflict of laws principals thereof.

 

29.          NOTICES:

 

Any notice, demand or other communication which any party may desire or may be required to give to any other party shall be in writing and shall be deemed given: (i) if and when personally delivered; (ii) upon receipt if sent by a nationally recognized overnight courier addressed to a party at his/its address set forth below; or (iii) on the second (2nd) Business Day after being deposited in United States registered or certified mail, postage prepaid, addressed to a party at his/its address set forth below, or to such other address as the party to receive such notice may have designated to all other parties by notice in accordance herewith:

 

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A.
    	
If to Landlord:
    	
3589 Sagamore, LLC
    
	
 
    	
 
    	
c/o INOK Investments,   LLC
    
	
 
    	
 
    	
Attn: [*]
    
	
 
    	
 
    	
3601 Sagamore Parkway   North, Suite C
    
	
 
    	
 
    	
Lafayette, Indiana   47904
    
	
 
    	
 
    	
 
    
	
B.
    	
If to Tenant:
    	
ACell, Inc.
    
	
 
    	
 
    	
Attn [*]
    
	
 
    	
 
    	
6640 Eli Whitney Drive
    
	
 
    	
 
    	
Columbia, MD 21046
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
With copies to:
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
[*]
    
	
 
    	
 
    	
ACell, Inc.
    
	
 
    	
 
    	
6640 Eli Whitney Drive
    
	
 
    	
 
    	
Columbia, MD 21046
    

 

or at such other address or to such other party which any party entitled to receive notice hereunder designates to the other in writing.

 

30.          LIMITATION ON LANDLORD’S LIABILITY:

 

It is expressly understood and agreed by Tenant that none of Landlord’s covenants, undertakings or agreements are made or intended as personal covenants, undertakings or agreements by Landlord, and any liability for damage or breach or nonperformance by Landlord shall be collectible only out of Landlord’s interest in the Building and no personal liability is assumed by, nor at any time may be asserted against, Landlord or its members or any of its or their heirs, legal representatives, successors or assigns, all such liability, if any, being expressly waived and released by Tenant.

 

31.          EXECUTION OP LEASE BY CORPORATION:

 

Upon execution of this Lease, Tenant shall provide Landlord with the following:

 

(i)  A current Certificate of Good Standing from the Secretary of State evidencing Tenant’s good standing as a corporation; and

 

(ii)  A current certificate of Authority from the Indiana Secretary of State evidencing Tenant’s authority to transact business in the State of Indiana; and

 

33

 

(iii)  A Resolution of the Board of Directors of Tenant, certified by the Secretary of Tenant as being true and accurate, approving the terms of this Lease and authorizing its execution by the officers executing this Lease in the name of and on behalf of the Tenant.

 

32.          RENEWAL OPTION. If Tenant shall comply with each of the terms provisions and conditions of this Lease, then Tenant shall have the option to renew the Term of this Lease for two additional consecutive terms of five (5) years each. In order to exercise either option as aforesaid, Tenant must give Landlord notice of exercise no later than six (6) months prior to the last day of the then expiring term. The renewal term shall be on all of the terms and conditions of this Lease applicable to the prior term except that in lieu of the Base Rent payable during the prior term, the Base Rent payable during the renewal term shall be as follows (except as otherwise modified by Section 33 below):

 

	
RENEWAL TERM
    	
 
    	
BASE RENT PER MONTH
    	
 
    
	
Months 121-180   (Ext Term 1)
    	
 
    	
$
    	
[*]
    	
 
    
	
Months 181-240   (Ext Term 2)
    	
 
    	
$
    	
[*]
    	
 
    

 

33.          TENANT RIGHT TO ADDITIONAL SPACE. If Tenant shall comply with each of the terms, provisions and conditions of this Lease, Tenant shall have the option over the Term, including any extensions thereof as provided in Section 32 above, to acquire approximately 2,918 rsf of additional office space in the Building (the “Additional Space”) occupied by Landlord as of the Effective Date (the “Right To Occupy”). Not less than 270 days prior to the date upon which Tenant desires to occupy the Additional Space, Tenant shall give Landlord written notice of its election to exercise its Right To Occupy. The earliest date upon which Tenant can begin occupying the Additional Space is November 1, 2017, which requires Tenant to provided Landlord with written notice of its election to occupy the Additional space 270 days prior to November 1, 2017.

 

Upon not less than 270 days prior written notice to Tenant, Tenant hereby acknowledges and agrees that Landlord can require Tenant to exercise its Right To Occupy and therefore begin occupancy of the Additional Space at any time on or after November 1, 2017.

 

34

 

Unless otherwise agreed by Landlord and Tenant, Tenant’s acquisition and occupancy of the Additional Space shall be subject to and governed by the terms of this Lease with the exception of Base Rent and Additional Rent which for the entire Premises, including the Additional Space, shall be as follows:

 

	
TERM
    	
 
    	
BASE RENT PER MONTH
    	
 
    
	
Date of Tenant’s   Occupancy of the Additional Space thru Month 60
    	
 
    	
$
    	
[*]
    	
 
    
	
Months 61-120
    	
 
    	
$
    	
[*]
    	
 
    
	
Months 121-180   (Ext Term 1)
    	
 
    	
$
    	
[*]
    	
 
    
	
Months 181-240   (Ext Term 2)
    	
 
    	
$
    	
[*]
    	
 
    

 

and “Tenant’s Rentable Area” shall mean 54,000 square feet and “Tenant’s Proportionate Share” shall mean 100% being the percentage calculated by dividing 54,000 square feet into the Tenant’s Rentable Area contained in the Premises.

 

Prior to Tenant’s occupancy of the Additional space, Landlord shall have the right to remove all furnishings and custom built desks.

 

34.          PARKING. Landlord shall maintain during the Term a minimum of one hundred twenty (120) unreserved, surfaced parking spaces for use by the tenants of the Building. Tenant’s parking shall be free of charge throughout the Term or any extension thereof.

 

35

 

IN WITNESS WHEREOF, Landlord and Tenant have hereunto executed this Lease as of the day and year first above written.

 

	
LANDLORD
    	
 
    	
TENANT
    
	
 
    	
 
    	
 
    
	
3589 Sagamore, LLC, an Indiana
    	
 
    	
ACell, Inc., a Delaware
    
	
limited liability company
    	
 
    	
corporation
    
	
 
    	
 
    	
 
    
	
By:   INOK   Investments, LLC, an Indiana limited liability company, as sole member
    	
 
    	
By:
    	
/s/ Miles H. Grady
    
	
 
    	
 
    	
 
    
	
 
    	
Printed:
    	
Miles H. Grady
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
Title:
    	
SVP/General Counsel
    
	
 
    	
 
    	
 
    	
 
    
	
By:
    	
/s/ Jerry A. Brand
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
Jerry A. Brand, Manager
    	
 
    	
 
    	
 
    

 

36

 

EXHIBIT A

 

Premises

 

37

 

 

 

 

 

EXHIBIT B

 

[Intentionally Deleted]

 

38

 

EXHIBIT C

 

Tenant agrees to the form of this Exhibit C and will execute this document when reasonably requested by Landlord provided that the representations contained herein are true as of the date that Landlord requests Tenant to execute this document.

 

ESTOPPEL STATEMENT Re: Lease Dated:
 Landlord:
 Premises:

 

The undersigned, as Tenant under the Lease aforesaid, hereby acknowledges for the benefit of                                                         which has or is about to make a loan to the Landlord aforesaid, part of the security for which will by a mortgage covering the Premises aforesaid and an assignment of Landlord’s interest in said Lease, the truth and accuracy of the following statements pertaining to said Lease.

 

1. Tenant has accepted and is in full possession of the Premises.

 

2. The term of the Lease commenced on                                                                                                                      and the Lease is in full force and effect.

 

3. Landlord has satisfactorily complied with all of the requirements and conditions precedent to the commencement of the term of the Lease as specified in the Lease.

 

4. All improvements, additions and alterations required to be made by the Landlord with respect to the Premises have been fully completed by Landlord and are acceptable to Tenant except for                                                                                                                .

 

5. Tenant is paying the full Rent stipulated in the Lease and there are not offsets, defenses or claims on the part of Tenant with respect thereto.

 

5. The fixed annual Rent under the Lease is $                                                                                                          and no monies have been paid to Landlord in advance of the due date set forth in the Lease, except                                                   . A true and complete copy of the

 

39

 

Lease (together with all amendments if any, aforementioned) is attached hereto and hereby made a part hereof.

 

7.             Tenant acknowledges that                                                                        assumed no liability for its security deposits, if any, or for sums escrowed with the Landlord for taxes in the event that acquires the building in which the Premises are located by foreclosure or by transfer of title in lieu of foreclosure.

 

8.             Tenant acknowledges that there are no defaults of any terms of the lease by the Landlord, except                                              .

 

40

 

EXHIBIT “D”

 

RULES AND REGULATIONS

 

Tenant agrees to observe the rights reserved to Landlord in the Lease and agrees, for itself, its employees, agents, clients, customers, invitees and guests, to comply with the following rules and regulations and with such reasonable modifications thereof and additions thereto as Landlord may make for the Building;

 

(a)  Any sign lettering, picture, notice, or advertisements installed within Tenant’s Premises which is visible to the public from within the Building shall be installed at Tenant’s cost and in such manner, character and style as Landlord may approve in writing. Except as may be required by any Federal or State banking law regulations, no sign, lettering, picture, notice or advertisement shall be placed on any outside window or in any position so as to be visible from outside of the Building or from the atrium areas of the Building.

 

(b)  Intentionally left blank

 

(c)  Tenant, its customers, invitees, licensees, and guests shall not obstruct sidewalks, entrances, passages, courts, corridors, vestibules, halls, elevators and stairways in and about the Building. Tenant shall not place objects against glass partitions or doors or windows or adjacent to any open common space which would be unsightly from the Building corridors or atriums, or from the exterior of the Building, and will promptly remove the same upon notice from Landlord.

 

(d)  Tenant shall not make noises, cause disturbances, create vibrations odors or noxious fumes or use or operate any electrical or electronic devices or other devises that emit sounds, or electronic waves, dangerous to other tenants and occupants of the Building or that would interfere with the operations of any device or equipment or radio or television broadcasting or reception from or within the Building or elsewhere, and shall not place or install any projections, antennae, aerials or similar devises inside or outside of the Premises.

 

(e)  Tenant shall not make any room-to-room canvass to solicit business from other tenants in the Building, and shall not exhibit, sell or offer to sell, use, rent or exchange any item or service in or from the Premises unless

 

41

 

ordinarily embraced within the Tenant’s use of the Premises as specified in its Lease.

 

(f)            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, and shall refrain from attempting to adjust any controls. Tenant shall keep public corridor doors closed.

 

(g)           Door keys for doors in the Premises will, be furnished at the commencement of the Lease by Landlord. Tenant shall not affix additional locks on the doors and, shall purchase duplicate keys only from Landlord. When the Lease is terminated, Tenant shall return all keys to Landlord and will provide to Landlord the means of opening any safes, cabinets or vaults left in the Premises.

 

(h)           Tenant assumes full responsibility for protecting its space from theft, robbery and pilferage, which includes keeping doors locked and other means of entry to the Premises closed and secured.

 

(i)            Peddlers, solicitors and beggars shall be reported to Landlord or as Landlord otherwise requests.

 

(j)            Tenant shall not install and operate machinery or any mechanical devices of nature not directly related to Tenant’s ordinary use of the Premises without the written permission of the Landlord.

 

(k)           No person or contractor not employed by Landlord shall be used to perform window washing, cleaning, decorating, repair or other work in the Premises.

 

(1)           Tenant shall not permit or suffer anyone to:

 

(1)           Cook in the Premises provided Tenant may install refrigerators, microwave ovens and coffee machines;

 

(2)           Place vending or dispensing machines of any kind in or about the Premises, unless for the use of its employees only. In the event Tenant shall place any vending or dispensing machines for its employees’ use, Tenant shall be solely responsible for securing all necessary local county, state or federal permits or licenses required for such machines and shall provide Landlord with evidence of the satisfaction of such requirements;

 

(3)           At any time sell, purchase or give away, or permits the sale, purchase or gift of food in any form. However, with

 

42

 

the prior written consent of the Landlord, such activities may be permitted in lounges or other facilities designated for this purpose.

 

(m)          Tenant shall not;

 

(1)           Use the Premises for lodging or for any immoral or illegal purposes;

 

(2)           Use the Premises to engage in the manufacture or sale of, or permit the use of, any spirituous, fermented, intoxicating or alcoholic beverages on the Premises provided that Tenant may serve alcoholic beverages and food on certain social occasions, such as an open house, client party or similar function. Provided, further, however, that Tenant may not sell at retail alcoholic beverages and Tenant shall, prior to any such events, provide Landlord in advance with written evidence of liability insurance insuring both Tenant and Landlord as their interest appear in connection with the serving of such alcoholic beverages on the Premises;

 

(3)           Use the Premises to engage in the manufacture of sale of, or permit the use of, any illegal drugs on the Premises.

 

(n)           Other than alcohol which Tenant uses in the ordinary course of its manufacturing operations, in no event shall any person bring into the Building inflammables such as gasoline, kerosene, naphtha and benzene, or explosives or firearms or any other article of intrinsically dangerous nature. If by reason of the failure of Tenant to comply with the provisions of this Paragraph, any insurance premium payable by Landlord for all of any part of the Building shall at any time be increased above normal insurance premiums for insurance not covering the items aforesaid, Landlord shall have the option to either terminate the Lease or to require Tenant to make immediate payment for the whole of the increased insurance premium.

 

(o)           Tenant shall comply with all applicable federal, state, and municipal laws, ordinances and regulations and make any use of the Premises which may be prohibited thereby or which shall be dangerous to person or property or shall increase the cost of insurance or required additional insurance coverage.

 

(p)           If Tenant desires signal, communication, alarm or other utility or service connection installed or changed, the same shall be made at the expense of Tenant, with approval and under direction of Landlord.

 

43

 

EXHIBIT “E”

 

EXCLUDED HVAC UNITS

 

	
Unit Number
    	
 
    	
 
    	
 
    	
M/N
    
	
1
    	
 
    	
Lennox
    	
 
    	
LGC180H2BS2G
    
	
2
    	
 
    	
Lennox
    	
 
    	
LGC180H2BS2G
    
	
3
    	
 
    	
Lennox
    	
 
    	
LGC180H2BS2G
    
	
4
    	
 
    	
Lennox
    	
 
    	
LGC180H2BS2G
    
	
5
    	
 
    	
Lennox
    	
 
    	
LGC180H2BM2G
    
	
6
    	
 
    	
Lennox
    	
 
    	
LGC180H2BM2G
    
	
7
    	
 
    	
Lennox.
    	
 
    	
LGC180H2BM2G
    
	
8
    	
 
    	
Lennox
    	
 
    	
LGC180H2BM2G
    
	
9
    	
 
    	
Lennox
    	
 
    	
LGC180H2BS2G
    

 

If replacement is required, the above equipment will be replaced with units of comparable size and quality.

 

44

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