Document:

acer-ex105_120.htm

 

Exhibit 10.5

 

 

 

 

 

 

 

 

 

 

 

 

ONE GATEWAY CENTER
NEWTON, MASSACHUSETTS

 

OFFICE BUILDING LEASE

 

 

 

Tenant: Acer Therapeutics Inc.

Landlord: Gateway Realty Trust

 

 

 

 

 

 

 

 

 

TABLE OF CONTENTS

 

	
1.0
	
 
	
 
	
REFERENCE DATA
	
 
	
1

	
 
	
 
	
 
	
 
	
 
	
 

	
 
	
2.0
	
 
	
 
	
DESCRIPTION OF PREMISES
	
 
	
3

	
 
	
 
	
 
	
 
	
2.1
	
 
	
Premises.
	
 
	
3

	
 
	
 
	
 
	
 
	
2.2
	
 
	
Appurtenant rights.
	
 
	
3

	
 
	
 
	
 
	
 
	
2.3
	
 
	
Reservations.
	
 
	
3

	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 

	
 
	
3.0
	
 
	
 
	
TERM OF LEASE
	
 
	
3

	
 
	
 
	
 
	
 
	
3.1
	
 
	
Term.
	
 
	
3

	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 

	
 
	
4.0
	
 
	
 
	
TAKING OCCUPANCY
	
 
	
3

	
 
	
 
	
 
	
 
	
4.1
	
 
	
Occupancy As Is.
	
 
	
3

	
 
	
 
	
 
	
 
	
4.2
	
 
	
Delivery of Possession.
	
 
	
4

	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 

	
 
	
5.0
	
 
	
 
	
USE OF PREMISES
	
 
	
4

	
 
	
 
	
 
	
 
	
5.1
	
 
	
Permitted Use.
	
 
	
4

	
 
	
 
	
 
	
 
	
5.2
	
 
	
Prohibited Uses.
	
 
	
4

	
 
	
 
	
 
	
 
	
5.3
	
 
	
Licenses and Permits.
	
 
	
5

	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 

	
 
	
6.0
	
 
	
 
	
RENT
	
 
	
5

	
 
	
 
	
 
	
 
	
6.1
	
 
	
Annual Base Rent.
	
 
	
5

	
 
	
 
	
 
	
 
	
6.2
	
 
	
Security Deposit.
	
 
	
5

	
 
	
 
	
 
	
 
	
6.3
	
 
	
Taxes.
	
 
	
6

	
 
	
 
	
 
	
 
	
6.4
	
 
	
Operating Expenses.
	
 
	
6

	
 
	
 
	
 
	
 
	
6.5
	
 
	
Intentionally Omitted.
	
 
	
7

	
 
	
 
	
 
	
 
	
6.6
	
 
	
Late Payment Charge.
	
 
	
7

	
 
	
 
	
 
	
 
	
6.7
	
 
	
Books and Records.
	
 
	
7

	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 

	
 
	
7.0
	
 
	
 
	
UTILITIES AND LANDLORD'S SERVICES
	
 
	
8

	
 
	
 
	
 
	
 
	
7.1
	
 
	
Electricity.
	
 
	
8

	
 
	
 
	
 
	
 
	
7.2
	
 
	
Water and Sewer Charges.
	
 
	
8

	
 
	
 
	
 
	
 
	
7.3
	
 
	
Heat and Air Conditioning.
	
 
	
9

	
 
	
 
	
 
	
 
	
7.4
	
 
	
Additional Heat and Air Conditioning Services.
	
 
	
9

	
 
	
 
	
 
	
 
	
7.5
	
 
	
Elevator Service.
	
 
	
9

	
 
	
 
	
 
	
 
	
7.6
	
 
	
Cleaning.
	
 
	
9

	
 
	
 
	
 
	
 
	
7.7
	
 
	
Repairs and Other Services.
	
 
	
9

	
 
	
 
	
 
	
 
	
7.8
	
 
	
Interruption or Curtailment of Services.
	
 
	
9

	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 

	
 
	
8.0
	
 
	
 
	
MAINTENANCE OF AND IMPROVEMENTS TO PREMISES
	
 
	
10

	
 
	
 
	
 
	
 
	
8.1
	
 
	
Changes or Alterations by Landlord.
	
 
	
10

	
 
	
 
	
 
	
 
	
8.2
	
 
	
Alterations and Improvements by Tenant.
	
 
	
10

	
 
	
 
	
 
	
 
	
8.3
	
 
	
Tenant's Contractors - Mechanics' and Other Liens - Standard of Tenant's Performance - Compliance with Laws.
	
 
	
10

	
 
	
 
	
 
	
 
	
8.4
	
 
	
Fixtures, Equipment and Improvements - Removal by Tenant.
	
 
	
11

	
 
	
 
	
 
	
 
	
8.5
	
 
	
Repairs by Tenant.
	
 
	
11

	
 
	
 
	
 
	
 
	
8.6
	
 
	
Locks.
	
 
	
11

	
 
	
 
	
 
	
 
	
8.7
	
 
	
Tenant's Improvements and Condition of Premises at Termination.
	
 
	
11

	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 

	
 
	
9.0
	
 
	
 
	
INSURANCE, INDEMNIFICATION, EXONERATION AND EXCULPATION
	
 
	
12

	
 
	
 
	
 
	
 
	
9.1
	
 
	
Insurance.
	
 
	
12

	
 
	
 
	
 
	
 
	
9.2
	
 
	
Additional Insureds.
	
 
	
13

	
 
	
 
	
 
	
 
	
9.3
	
 
	
Certificates of Insurance.
	
 
	
13

	
 
	
 
	
 
	
 
	
9.4
	
 
	
Tenant's Compliance.
	
 
	
13

i

 

	
 
	
 
	
 
	
 
	
9.5
	
 
	
Indemnification.
	
 
	
13

	
 
	
 
	
 
	
 
	
9.6
	
 
	
Property of Tenant.
	
 
	
14

	
 
	
 
	
 
	
 
	
9.7
	
 
	
Landlord's Liability.
	
 
	
14

	
 
	
 
	
 
	
 
	
9.8
	
 
	
Waiver of Subrogation.
	
 
	
14

	
 
	
 
	
 
	
 
	
9.9
	
 
	
Massachusetts Turnpike Authority.
	
 
	
15

	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 

	
 
	
10.0
	
 
	
 
	
ASSIGNMENT, MORTGAGING, SUBLETTING, ETC.
	
 
	
15

	
 
	
 
	
 
	
 
	
 
	
 
	
 

	
 
	
11.0
	
 
	
 
	
MISCELLANEOUS COVENANTS
	
 
	
18

	
 
	
 
	
 
	
 
	
11.1
	
 
	
Rules and Regulations.
	
 
	
18

	
 
	
 
	
 
	
 
	
11.2
	
 
	
Nuisance.
	
 
	
19

	
 
	
 
	
 
	
 
	
11.3
	
 
	
Access to Premises.
	
 
	
19

	
 
	
 
	
 
	
 
	
11.4
	
 
	
Accidents to Sanitary and other Systems.
	
 
	
19

	
 
	
 
	
 
	
 
	
11.5
	
 
	
Signs, Blinds and Drapes.
	
 
	
19

	
 
	
 
	
 
	
 
	
11.6
	
 
	
Estoppel Certificate.
	
 
	
20

	
 
	
 
	
 
	
 
	
11.7
	
 
	
Requirements of Law - Fines and Penalties.
	
 
	
20

	
 
	
 
	
 
	
 
	
11.8
	
 
	
Floor Loading.
	
 
	
20

	
 
	
 
	
 
	
 
	
11.9
	
 
	
Tenant's Access.
	
 
	
20

	
 
	
 
	
 
	
 
	
11.10
	
 
	
Survival
	
 
	
20

	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 

	
 
	
12.0
	
 
	
 
	
PARKING
	
 
	
20

	
 
	
 
	
 
	
 
	
 
	
 
	
 

	
 
	
13.0
	
 
	
 
	
CASUALTY
	
 
	
21

	
 
	
 
	
 
	
 
	
 
	
 
	
 

	
 
	
14.0
	
 
	
 
	
CONDEMNATION - EMINENT DOMAIN
	
 
	
22

	
 
	
 
	
 
	
 
	
 
	
 
	
 

	
 
	
15.0
	
 
	
 
	
DEFAULT
	
 
	
23

	
 
	
 
	
 
	
 
	
15.1
	
 
	
Conditions of Limitation - Re-entry - Termination.
	
 
	
23

	
 
	
 
	
 
	
 
	
15.2
	
 
	
Damages - Termination.
	
 
	
23

	
 
	
 
	
 
	
 
	
15.3
	
 
	
Fees and Expenses.
	
 
	
24

	
 
	
 
	
 
	
 
	
15.4
	
 
	
Landlord's Remedies Not Exclusive.
	
 
	
25

	
 
	
 
	
 
	
 
	
15.5
	
 
	
Grace Period.
	
 
	
25

	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 

	
 
	
16.0
	
 
	
 
	
ABANDONED PROPERTY
	
 
	
25

	
 
	
 
	
 
	
 
	
 
	
 
	
 

	
 
	
17.0
	
 
	
 
	
SUBORDINATION
	
 
	
25

	
 
	
 
	
 
	
 
	
 
	
 
	
 

	
 
	
18.0
	
 
	
 
	
QUIET ENJOYMENT
	
 
	
26

	
 
	
 
	
 
	
 
	
 
	
 
	
 

	
 
	
19.0
	
 
	
 
	
ENTIRE AGREEMENT - WAIVER - SURRENDER
	
 
	
26

	
 
	
 
	
 
	
 
	
19.1
	
 
	
Entire Agreement.
	
 
	
26

	
 
	
 
	
 
	
 
	
19.2
	
 
	
Waiver by Landlord and Tenant.
	
 
	
26

	
 
	
 
	
 
	
 
	
19.3
	
 
	
Surrender.
	
 
	
26

	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 

	
 
	
20.0
	
 
	
 
	
INABILITY TO PERFORM - EXCULPATORY CLAUSE
	
 
	
26

	
 
	
 
	
 
	
 
	
 
	
 
	
 

	
 
	
21.0
	
 
	
 
	
LANDLORD'S CONSENT
	
 
	
27

	
 
	
 
	
 
	
 
	
 
	
 
	
 

	
 
	
22.0
	
 
	
 
	
RIGHT TO RELOCATE
	
 
	
27

	
 
	
 
	
 
	
 
	
 
	
 
	
 

	
 
	
23.0
	
 
	
 
	
BILLS AND NOTICES
	
 
	
28

	
 
	
 
	
 
	
 
	
 
	
 
	
 

	
 
	
24.0
	
 
	
 
	
HOLDOVER
	
 
	
28

	
 
	
 
	
 
	
 
	
 
	
 
	
 

	
 
	
25.0
	
 
	
 
	
NO OPTION
	
 
	
28

	
 
	
 
	
 
	
 
	
 
	
 
	
 

	
 
	
26.0
	
 
	
 
	
PARTIES BOUND - SEIZIN OF TITLE
	
 
	
28

	
 
	
 
	
 
	
 
	
 
	
 
	
 

ii

 

	
 
	
27.0
	
 
	
 
	
MISCELLANEOUS
	
 
	
29

	
 
	
 
	
 
	
 
	
27.1
	
 
	
Separability.
	
 
	
29

	
 
	
 
	
 
	
 
	
27.2
	
 
	
Independent Covenants.
	
 
	
29

	
 
	
 
	
 
	
 
	
27.3
	
 
	
Captions.
	
 
	
29

	
 
	
 
	
 
	
 
	
27.4
	
 
	
Landlord or Tenant.
	
 
	
29

	
 
	
 
	
 
	
 
	
27.5
	
 
	
Broker.
	
 
	
29

	
 
	
 
	
 
	
 
	
27.6
	
 
	
Governing Law.
	
 
	
29

	
 
	
 
	
 
	
 
	
27.7
	
 
	
Assignment of Lease and/or Rents.
	
 
	
29

	
 
	
 
	
 
	
 
	
27.8
	
 
	
Notice of Lease.
	
 
	
30

 

	
 
	
EXHIBITS
	
 
	
 
	
 

	
 
	
 
	
 
	
 
	
A - Lease Plan
	
 
	
 

	
 
	
 
	
 
	
 
	
B - Cleaning Services
	
 
	
 

	
 
	
 
	
 
	
 
	
C - Rules and Regulations
	
 
	
 

	
 
	
 
	
 
	
 
	
D - Work Letter
	
 
	
 

	
 
	
 
	
 
	
 
	
E - Building Standard Construction Items
	
 
	
 

 

 

 

iii

 

LEASE AGREEMENT

THIS LEASE made this March 6, 2018 between Commonwealth Development LLC (formerly Commonwealth Development Group LLC), as TRUSTEE of the GATEWAY REALTY TRUST, a Massachusetts nominee trust, under an Amended and Restated Declaration of Trust dated as of November 30, 1998 (amending and restating a Declaration of Trust dated March 1, 1968, recorded with Middlesex County (South) Registry of Deeds (the “Registry”) in Book 11478, Page 134, as amended) and recorded with the Registry in Book 29595, Page 469 as affected by trustee appointments and resignations recorded with the Registry in Book 31343 at Pages 596-598 and Book 31847 at Page 3, as amended, and having offices at One Gateway Center, Newton, Massachusetts 02458 (“Landlord”), and Acer Therapeutics Inc., a Delaware corporation, with offices located in Newton, Massachusetts (“Tenant”).

In consideration of the rents and the covenants to be paid and performed by Tenant and upon the terms and conditions of this Lease, Landlord hereby leases to Tenant and Tenant hires from Landlord a portion of the Building (as “Building is defined below) and as shown on the plan attached hereto as Exhibit A and made a part hereof (hereinafter referred to as the “Premises”).

	
1.0
	
REFERENCE DATA

Each reference in this Lease to any term defined in this Article shall be deemed and construed to incorporate the data stated following that term in this Article.

 

	
Additional Parking Spaces:
	
1Parking Space

	
Additional Parking Space Charge:
	
NONE

	
Additional Rent:
	
Sums or other charges payable by Tenant to Landlord under this Lease, other than Annual Base Rent.

	
Annual Base Rent:
	
 

	
Period:
	
Annual Base Rent:
	
Monthly Installment

of Annual Base Rent:

	
October 1, 2018 through September 30, 2019
	
$101,760.00 
	
$8,480.00 

	
October 1, 2019 through September 30, 2020
	
$104,520.00 
	
$8,710.00 

	
October 1, 2020 through September 30, 2021
	
$107,280.00 
	
$8,940.00 

 

	
Broker:
	
NONE

	
Building:
	
Landlord's nine-story office building, commonly referred to as “One Gateway Center” in Newton, Massachusetts.

	
Business Day:
	
All days except Saturdays, Sundays and days defined as “legal holidays”.

	
Garage:
	
Landlord's multistory parking facility numbered 334 Washington Street, Newton, Massachusetts.

	
Land:
	
The parcel(s) of land on which the Building and other buildings (if any) owned by Landlord are situated.

	
Lease Year:
	
A twelve (12) month period beginning on the Term Commencement Date or an anniversary thereof.

	
Landlord's Address:
	
c/o J. F. White PropertiesOne Gateway Center
Newton, MA  02458

 

Page 2

	
Mortgage:
	
A mortgage, deed of trust, trust indenture, or other security instrument of record creating an interest in or affecting title to the Land or Building or the Property or any part thereof, and any renewal, modification, consolidation or extension of any such instrument.

	
Mortgagee:
	
The holder of any Mortgage.

	
Operating Expense Base:
	
The Operating Expenses for the Building for Landlords fiscal year ending December 31, 2019

	
Parking Areas:
	
Those areas on the Property designated by Landlord to be used for parking automobiles.

	
Parking Spaces:
	
6 Parking Spaces.

	
Premises:
	
Approximately 2,760 square feet of rentable area (the calculation of “rentable” area includes an allocation of the Building’s common areas) on the third floor of the Building, and as more fully described in the Article of this Lease entitled “DESCRIPTION OF PREMISES”.

	
Property:
	
The Building, the Garage and the Land and any improvements on the Land including, without limitation, the Building and other buildings (if any) owned by Landlord.

	
Real Estate Tax Base:
	
Real Estate Taxes for the Building for the City of Newton's Fiscal Year ending June 30, 2019.

	
Rent:
	
Annual Base Rent and Additional Rent.

	
Security Deposit:
	
$17,880.00

	
Tenant's Address:
	
The Premises.

	
Tenant's Proportionate Share of Operating Expenses:
	
1.74%

	
Tenant's Proportionate Share of Real Estate Taxes:
	
1.59%

	
Term Commencement Date:
	
October 1, 2018

	
Term Expiration Date:
	
September 30, 2021

	
Term:
	
A period of time commencing on the Term Commencement Date and ending on the Term Expiration Date.

	
Use of the Premises:
	
General Office.

 

Page 3

	
2.0
	
DESCRIPTION OF PREMISES

	
 
	
2.1.
	
Premises.  The premises leased by Tenant under this Lease shall be the Premises (as the same may from time to time be constituted after changes therein, additions thereto and eliminations therefrom pursuant to rights of Landlord hereinafter reserved).

	
 
	
2.2.
	
Appurtenant Rights.  Tenant shall have, as appurtenant to the Premises, rights to use in common with others those common roadways, walkways, elevators, hallways and stairways necessary for access to the Premises or generally available to other tenants of the Building; provided, however, that such rights shall be subject to such rules and regulations as may be made by Landlord from time to time as provided for in Section 11.1 of this Lease, “Rules and Regulations.”.

	
 
	
2.3.
	
Reservations.  All the perimeter walls of the Premises except the inner surfaces thereof, any balconies, terraces or roofs adjacent to the Premises, and any spaces in or adjacent to the Premises used for serving other portions of the Building or other portions of the Property exclusively or in common with the Premises, including without limitation (where applicable) shafts, stacks, pipes, conduits, wires and appurtenant fixtures, fan rooms, ducts, electric or other utilities, sinks or other Building or Property facilities, and the use thereof, as well as the right of access through the Premises for the purpose of operation, maintenance, decoration and repair, are expressly reserved to Landlord.

	
3.0
	
TERM OF LEASE

	
 
	
3.1.
	
Term.  The term of this Lease shall be for the Term (or until such Term shall sooner cease or expire) commencing on the Term Commencement Date and ending on the Term Expiration Date.

	
4.0
	
TAKING OCCUPANCY

	
 
	
4.1.
	
Occupancy As Is.  Tenant currently occupies the Premises as a subtenant pursuant to a Sublease, dated October 16, 2017, with Bradley A. MacDonald, as sublandlord (the “Sublease”) and a Consent to Sublease agreement dated October 25, 2017 between Tenant, Landlord and sublandlord (the “Consent”).  Tenant acknowledges and agrees Tenant has accepted occupancy of the Premises "as is", and any work necessary or desired by Tenant in the Premises shall be performed by Tenant in compliance with the terms and provisions of this Lease at Tenant's own expense; provided, however, notwithstanding the forgoing to the contrary in this sentence, the following shall apply.

Landlord shall Substantially Complete certain work in the Premises in accordance with the Work Letter attached hereto as Exhibit A (the “Work”).  Exhibit A is referred to as the “Work Letter”.  “Substantially Complete” shall mean that Landlord has completed the Work to the extent that there remain to be done in the Premises only so-called punch list items such as minor details of construction and minor mechanical adjustments and such other items which do not materially adversely interfere with Tenant's use of or access to the Premises for the permitted Use of the Premises.  Landlord shall use diligent efforts to Substantially Complete the Work prior to July 1, 2018 (the “Target Completion Date”).  Failure on the part of Landlord to Substantially Complete the Work by the Target Completion Date shall not constitute a breach or default on the part of Landlord under the Lease or give rise to any claim of damage or expenses of any kind against Landlord by Tenant.  To the extent there remain any so-called punch list items after July 1, 2018, Landlord shall use diligent efforts to promptly complete such items.

Whereas Tenant currently occupies the Premises, to the extent the Work requires Landlord to perform construction or other activities in the Premises, Tenant agrees that, without Rent abatement or other obligation or liability on the part of Landlord, Landlord may perform construction or other activities in the Premises while Tenant continues to use and occupy the Premises.  Landlord agrees to use commercially reasonable efforts to minimize interference with Tenant’s use of the Premises for the permitted Use of the Premises, provided, however, while Landlord may elect to perform certain work during non-business hours, increase staffing of certain portions of the work, or make other adjustments to Landlord’s typical tenant fit-up construction process to accelerate completion of construction, whether for Tenant’s or 

 

Page 4

Landlord’s benefit, Landlord shall not be obligated to do either.  Notwithstanding the immediately preceding sentence, Tenant acknowledges that the Work by its nature may from time to time preclude Tenant from using certain portions of the Premises, which portions may from time to time include, without limitation, cubical areas, office areas, conference rooms, kitchen and storage areas and circulation spaces as applicable.  In addition, Tenant, at Tenant’s expense, agrees to cooperate and coordinate with Landlord during the Work, including, without limitation, moving and or storing, temporarily or permanently, Tenant's personal property, furniture, fixtures or equipment as may be required to facilitate the Work.  Tenant specifically agrees that, notwithstanding Landlord’s obligation to complete the Work, under no circumstances shall Landlord be obligated to move or store, temporarily or permanently, Tenant’s personal property, furniture, fixtures or equipment and if such moving or storage is required in order for Landlord to perform the Work, such moving and storage shall be at Tenant’s sole cost and expense.

If the Work is not Substantially Complete by the Target Completion Date as a result of (i) delays caused by Tenant (“Tenant Delays”), including, without limitation, Tenant requested changes to the scope of work, design, finishes or other specifications set forth in the Work Letter or Tenant’s failure to respond in a timely manner to Landlord’s inquires related to the Work or  Tenant’s failure to timely cooperate and coordinate as required pursuant to the immediately preceding grammatical paragraph or (ii) force majeure delays (“Force Majeure Delays”), including, without limitation, delays relating to strikes, labor difficulties, difficulties in obtaining materials, fire, governmental regulations, the failure of existing tenants to vacate and or any other circumstances beyond Landlord's reasonable control, then the Target Completion Date shall be postponed to the extent of such delays

	
 
	
4.2.
	
Delivery of Possession.  Intentionally Omitted.

	
5.0
	
USE OF PREMISES

	
 
	
5.1.
	
Permitted Use.  Tenant shall continuously during the Term of this Lease occupy and use the Premises for the permitted Use of the Premises and for no other purpose.  Service and utility areas (whether or not a part of the Premises) shall be used only for the particular purpose for which they are designated.

	
 
	
5.2.
	
Prohibited Uses.  Tenant shall not use, permit the use of, permit anything to be done in or on or anything to be brought into or onto or kept in or on the Premises, the Building, the Property or any part of thereof (i) which would violate any covenant, agreement, term, provision or condition of this Lease, (ii) for any unlawful purpose or in any unlawful manner, or (iii) which, in the reasonable judgment of Landlord shall in any way (a) impair or tend to impair the appearance or reputation of the Building or the Property, (b) impair or interfere with or tend to impair or interfere with any of the Building or Property services or the proper and economic heating, cleaning, air conditioning or other servicing of the Building or the Property or any portion thereof or with the use of the Building or the Property or any portion thereof, or (c) occasion discomfort, inconvenience or annoyance to any other tenant, licensee or other occupant of the Building or the Property or any neighboring property, whether through the transmission of noise or odors or vibrations or otherwise.

Without limiting the generality of the foregoing, Tenant shall not permit any vending machines in the Premises or use or occupy or permit the use or occupation of the Premises or any part of the Premises as or for a restaurant business or for the sale or furnishing free of charge of food, liquors, frozen deserts, ice cream, beverages, or other edible products, for public stenography, or for the conducting of any aspect of banking business; no food shall be prepared or served for consumption on or about the Premises; no intoxicating liquors or alcoholic beverages shall be sold or otherwise permitted in or about the Premises, the Building or elsewhere on the Property; no lottery tickets (even where the sale of such tickets is not illegal) shall be sold and no gambling, betting or wagering shall otherwise be permitted in or about the Premises, the Building or elsewhere on the Property; no loitering shall be permitted in or about the Premises, the Building or elsewhere on the Property; and no loading or unloading of supplies or other material to or from the Premises shall be permitted in the Building or elsewhere on the Property 

 

Page 5

except at times and in locations to be designated by Landlord.  Tenant shall not bring or permit to be brought into or keep in or on the Premises, the Building or elsewhere on the Property any oil or any toxic, hazardous, inflammable, combustible or explosive fluids, materials, chemicals or substances, (including without limitation any hazardous substances within the meaning of Chapter 21E of the Massachusetts General Laws and any medical waste or any fluid, material, chemical or substance considered to be biologically hazardous) (except in the Premises where such are related to Tenant's use of the Premises, provided that the same are stored and handled in a proper fashion consistent with applicable legal standards), or cause or permit any odors to emanate from or permeate the Premises.

The Premises shall be maintained in a sanitary condition, and kept free of rodents and vermin.  Tenant shall suitably store all trash and rubbish in the Premises, the Building or elsewhere on the Property in locations designated by Landlord from time to time.  The language of this Section prohibiting the preparation or serving of food for consumption on or about the Premises notwithstanding, but subject to the other terms and conditions of the Lease and subject to the other terms and conditions of this Section entitled “Prohibited Uses.”, Tenant may, with Landlord's prior written consent, install at Tenant's sole expense, one bottled water dispenser (utilizing water bottles with a capacity of not more than five gallons each and dispensing not more than one bottle at a time without manually removing and replacing the one bottle from which water is dispensed), coffee maker, microwave and refrigerator for use by Tenant.

	
 
	
5.3.
	
Licenses and Permits.  If any governmental license or permit shall be required for the proper and lawful conduct of Tenant's business in the Premises, Tenant, at Tenant's expense, shall duly procure and maintain such license or permit and submit the same to inspection by Landlord.  Tenant, at Tenant's expense, shall at all times comply with the terms and conditions of each such license or permit.

 

	
6.0
	
RENT

	
 
	
6.1.
	
Annual Base Rent.  Tenant shall pay to Landlord, without any demand, setoff or deduction, at Landlord's Address, or to such other person or at such other place as Landlord may designate by notice to Tenant, the Annual Base Rent.  The Annual Base Rent shall be paid in equal Monthly Installments in advance on or before the first Business Day of each calendar month during the Term of this Lease and shall be apportioned for any fraction of a month in which the Term Commencement Date or the last day of the Term of this Lease may fall.  Rent for the first full month of the initial Term for which Rent is due shall be paid by Tenant upon the execution of this Lease.

	
 
	
6.2.
	
Security Deposit.  It is understood that upon the execution of this Lease, Tenant shall have deposited the sum of the Security Deposit as security for the faithful performance and observance by Tenant of the terms, conditions, provisions and covenants of this Lease, it being further understood however, that said deposit is not to be considered prepaid Rent.  In the event Tenant defaults in respect to any of the terms, conditions, provisions and covenants of this Lease, including, but not limited to the payment of Rent, Landlord may use, apply or retain the whole or any part of the security so deposited to the extent required for the payment of any Rent or any other sum as to which Tenant is in default or for any sum which Landlord may expend or may be required to expend by reason of Tenant's default with respect to this Lease, including but not limited to any amount for which Tenant is liable under the Article contained herein entitled “DEFAULT” provided, however, that such Security Deposit shall in no way be construed as liquidated damages for any default or breach of any term, condition, provision and covenant of this Lease, nor shall Landlord be required, because of said deposit, to waive its right under the Article contained herein entitled “DEFAULT” to terminate this Lease in the event of default.  In the event Landlord uses, applies or retains any part or all of the Security Deposit and the Lease continues or Tenant's occupancy continues in the Premises, Tenant shall within ten (10) days after written notice from Landlord make such further or other deposit of moneys as may be necessary to bring the balance of the deposit to a sum equal to the Security Deposit.

In the event Tenant shall fully and faithfully comply with all of the terms, conditions, provisions and covenants of this Lease, the Security Deposit made hereby (or what may remain thereof) shall be returned, without interest, to Tenant within 30 days after the termination of the Lease and delivery of possession of the Premises to Landlord.

 

Page 6

	
 
	
6.3.
	
Taxes.  “Real Estate Taxes” shall mean all taxes, assessments and betterments, levied, assessed or imposed by any governmental authority upon the Property or any portion thereof, or arising from, or imposed on, the ownership or operation of the Property or any portion thereof, or the ownership of the tenant's interest under any ground lease (the term "ground lease" shall refer to the lease dated April 1, 1968 between Landlord and the Massachusetts Turnpike Authority, as amended, or any other underlying lease of space in which the Building and the Garage are located) and any payment in addition to or in lieu of any of the same required now or in the future.

Tenant shall pay to Landlord as Additional Rent “Tenant's Proportionate Share of Real Estate Taxes” of all Real Estate Taxes in excess of the Real Estate Tax Base, prorated with respect to any portion of a fiscal year in which the Term of this Lease begins or ends.  Such payments are to be made by Tenant to Landlord in installments corresponding to the installments in which said taxes are payable by Landlord.  Each payment shall be due and payable within ten (10) days after written notice by Landlord to Tenant of the amount of such installment.

If Landlord shall receive any refund of any real estate taxes of which Tenant has paid a portion pursuant to this Section, then, out of any balance remaining after deducting Landlord's expenses incurred in obtaining such refund, Landlord shall pay or credit to Tenant the same proportionate share of said balance, prorated as set forth above, but in no event more than the amount paid by Tenant with respect to the year in question.  Landlord shall have no obligation to seek any such refund and Tenant shall have no right to seek or to control any abatement, dispute, or other proceeding with any governmental agencies or entities with respect to the real estate taxes as described in this Section.

Tenant shall, if as and when demanded by Landlord and with each Monthly Installment of Annual Base Rent, make tax fund payments to Landlord.  “Tax fund payments” refer to such payments as Landlord shall determine to be sufficient to provide in the aggregate a fund adequate to pay, when they become due and payable, all payments required from Tenant under this Section.  In the event that tax fund payments are so demanded, and if the aggregate of said tax fund payments is not adequate to pay Tenant's share of such taxes, Tenant shall pay to Landlord the amount by which such aggregate is less than the amount of said share, such payment to be due and payable at the time set forth above.  Any surplus tax fund payments shall be accounted for to Tenant after such surplus has been determined, and may be credited by Landlord against future tax fund payments or refunded to Tenant at Landlord's option.

If during the term of this Lease or any extension thereof, a tax or excise on rents or other tax (excluding income tax), however described, shall be levied or assessed against Landlord by the Commonwealth of Massachusetts or any political subdivision thereof on account of the rental hereunder, such tax or excise on rents or other taxes assessed on the land and buildings of which the Premises form a part shall be deemed to constitute Real Estate Taxes for the purposes of this Section.  It is also understood and agreed that the term Real Estate Taxes includes betterments and improvement assessments, provided, however, that Landlord shall for the purposes of this Section, be deemed to have elected to pay any such assessments over the longest period of time permitted by law (whether or not Landlord in fact makes such election), and only those installments which are or would be payable with respect to the tax years which are included in the term of this Lease or any extension thereof (with interest which is or would be payable thereon) shall be included in the Real Estate Taxes for said tax years for the purposes hereof.

In the event the taxing authorities shall, during the term of this Lease, or any extension thereof, assess along with Real Estate Taxes, a personal property tax on Tenant's trade fixtures, leasehold improvements, furnishings, lighting fixtures, heating and cooling equipment, or other equipment in the Premises, the Building or elsewhere on the Property, whether or not such are owned and installed by Landlord, the taxes thus assessed shall be paid by Tenant within ten (10) days of notice by Landlord of the amount due.

	
 
	
6.4.
	
Operating Expenses.  Tenant shall pay to Landlord as Additional Rent “Tenant's Proportionate Share of Operating Expenses” of all costs and expenses in excess of the Operating Expense Base incurred by Landlord in the management, operation and maintenance of the Property or 

 

Page 7

	
 
		
any portion thereof, including, without limiting the generality of the foregoing, all such costs and expenses in connection with (l) insurance, license fees, janitorial service, landscaping and snow removal, (2) wages, salaries, management fees, employee benefits, payroll taxes, office expenses, administrative and auditing expenses, and equipment and materials for the operation, management and maintenance of the Property, (3) capital expenditures (amortized, with interest, on such reasonable basis as Landlord shall determine) made by Landlord for the purpose of reducing other operating expenses or complying with any governmental requirement, (4) water and sewer charges, (5) the furnishing of heat, air conditioning, electricity, utilities, and any other services, (6) the operation and servicing of any computer system installed to regulate Building equipment or other equipment serving the Property and (7) the furnishing of repairs and services referred to in the Article contained herein entitled “UTILITIES AND LANDLORD'S SERVICES” (the foregoing being collectively referred to as “Operating Expenses”).

If, during a portion of a fiscal year for which Operating Expenses are being computed pursuant to this Section, less than the entire rentable area of the Building is occupied or Landlord is not supplying all occupants with the same services being supplied hereunder, such costs and expenses shall be reasonably extrapolated in order to take into account the costs and expenses which would have been incurred had the entire rentable area of the Building been occupied and had such services been supplied to all occupants.

As soon as Tenant's Proportionate Share of Operating Expenses with respect to a fiscal year can be determined, Landlord shall notify Tenant of the same and the same will become payable to Landlord within ten (10) days following such notification, subject to proration with respect to any portion of a fiscal year in which the Term of this Lease begins or ends.

Tenant shall, if, as and when demanded by Landlord and with each monthly installment of Annual Base Rent, make Operating Fund Payments to Landlord.  “Operating Fund Payments” refer to such payments as Landlord shall determine to be sufficient to provide in the aggregate a fund adequate to pay, when they become due and payable, all payments required from Tenant under this Section.  In the event that Operating Fund Payments are so demanded, and if the aggregate of said Operating Fund Payments is not adequate to pay Tenant's Proportionate Share of Operating Expenses, Tenant shall pay to Landlord the amount by which such aggregate is less than the amount of said share, such payment to be due and payable at the time set forth above.  Any surplus Operating Fund Payments shall be accounted for to Tenant after such surplus has been determined, and may be credited by Landlord against future Operating Fund Payments or refunded to Tenant at Landlord's option.

	
 
	
6.5.
	
Intentionally omitted.

	
 
	
6.6.
	
Late Payment Charge.  If any installment of Rent or Additional Rent or any other sum due from Tenant shall not be received by Landlord on the date such installment or sum is due, Landlord reserves the right to assess, and Tenant then shall pay, a late payment charge equal to two and one half percent (2.5%) of the total amount that is in arrears and a further late payment charge equal to two and one half percent (2.5%) of the amount then outstanding may be assessed for each additional thirty (30) day period (or any fraction thereof) that such amount remains unpaid.  Acceptance of such late payment charge 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 Landlord's other rights and remedies granted by this Lease.

	
 
	
6.7.
	
Books and Records.  Within 15 days of any request by Landlord, Tenant shall furnish to Landlord a balance sheet as of the last day of the most recently completed fiscal quarter or such more recent fiscal period for which a balance sheet is reasonably available and a similarly current statement of Tenant's income and expenses for the twelve months preceding the date of the aforementioned balance sheet, both of which shall be prepared in reasonable detail in accordance with generally accepted accounting principles and certified as being true and correct by an officer or principal of Tenant.  In addition to the foregoing, within 15 days of any request by Landlord, Tenant shall provide such other financial or business plan related information as Landlord shall reasonably request, including without limitation, information related to the capitalization of Tenant's business.

 

Page 8

	
7.0
	
UTILITIES AND LANDLORD'S SERVICES

	
 
	
7.1.
	
Electricity.  Landlord shall furnish electricity to the Premises for lighting and other general office purposes.  If Tenant requires electricity elsewhere in the Building or on the Property, then such electricity shall be furnished in all respects at Tenant's sole cost and expense.  Tenant's use of electrical energy in the Premises, the Building and elsewhere on the Property shall not at any time exceed the capacity of any of the electrical conductors and equipment in or otherwise serving the Premises or Tenant's electrical energy needs elsewhere in the Building or on the Property (as the case may be).  In order to insure that such capacity is not exceeded and to avert possible adverse effect upon the electrical services for the Building or the Property, Tenant shall give notice to Landlord and obtain Landlord's prior written consent whenever Tenant shall connect to the Building's or the Property's electrical distribution system any fixtures, appliances or equipment other than lamps, typewriters, personal computers and similar small machines.  Any additional feeders or risers to supply Tenant's electrical requirements in addition to those originally installed and all other equipment proper and necessary in connection with such feeders or risers, shall be installed by Landlord upon Tenant's request, at the sole cost and expense of Tenant, provided that such additional feeders and risers are permissible under applicable laws and insurance regulations and the installation of such feeders or risers will not cause permanent damage or injury to the Building or any other portion of the Property or cause or create a dangerous condition or unreasonably interfere with other tenants of the Building or the Property.  Tenant agrees that it will not make any alteration or material addition to the electrical equipment in the Premises, the Building or elsewhere on the Property without the prior written consent of Landlord in each instance first obtained.  Tenant, at Tenant's expense, shall purchase, install and replace all light bulbs or tubes used in the Premises or used exclusively by Tenant in the Building or elsewhere on the Property, except that Landlord shall furnish the light bulbs and tubes and labor for the initial installation of light bulbs and tubes in the Premises.  Landlord shall not in any way be liable or responsible to Tenant for any loss, damage or expense which Tenant may incur if the quantity, character, or supply of electrical energy is changed or is no longer available or suitable for Tenant's requirements.

Landlord, at any time, at its option and upon not less than sixty (60) days prior notice to Tenant, may discontinue furnishing electric current to the Premises or for Tenant's exclusive use elsewhere in the Building or on the Property; and in either such case Tenant shall contract with the public service company supplying electric current for the purchase by Tenant of electric current directly from such company.  In such event, Landlord shall (i) permit its risers, conduits and feeder, to the extent available, suitable and safely capable, to be used to enable Tenant so to purchase electric current, (ii) without cost to Tenant, make such alterations and additions to the electrical equipment and/or appliances in the Building or elsewhere on the Property as may be required for such direct purchase, and (iii) at Landlord's expense, shall furnish and install any necessary metering equipment, which Tenant shall thereafter maintain and repair at its expense.  In the event Landlord shall exercise such option, the Annual Base Rent and the Operating Expense Base shall be decreased by an amount equal to the cost (which cost shall be determined by Landlord in Landlord's sole reasonable discretion) of electricity furnished by Landlord to the Premises and for Tenant's exclusive use elsewhere in the Building or on the Property as of the Term Commencement Date.

	
 
	
7.2.
	
Water and Sewer Charges.  Landlord shall furnish water for ordinary cleaning, toilet, lavatory and drinking purposes, provided, however, that Tenant shall maintain and replace if necessary any water heating, plumbing and plumbing related equipment exclusively serving the Premises (if any) or exclusively serving Tenant elsewhere in the Building or on the Property (if any) and any electricity, gas or other source of energy consumed by such water heating or plumbing related equipment shall be reimbursed to Landlord.

If Tenant requires, uses or consumes water for any purpose other than for such purpose, Landlord may (i) assess a reasonable charge for the additional water so used or consumed by Tenant or (ii) install a water meter and thereby measure Tenant's water consumption for all purposes.  In the latter event, Tenant shall pay the cost of the meter and the cost of installing any equipment required in connection therewith, and Tenant shall keep said meter and installation 

 

Page 9

equipment in good working order and repair, and shall pay for water consumed, as shown on said meter, together with the sewer charge based on said meter charges, as and when bills are rendered.  On default in making such payment Landlord may pay such charges and collect the same from Tenant, along with any additional costs related to such collection.

	
 
	
7.3.
	
Heat and Air Conditioning.  Landlord shall furnish to and distribute in the Premises heat and air conditioning as normal seasonal changes may require on Business Days from 8:00 a.m. to 6:00 p.m. when reasonably required for the comfortable occupancy of the Premises by Tenant.  Tenant agrees to lower and close the blinds or drapes when necessary because of the sun's position whenever the air conditioning system is in operation, and to cooperate fully with Landlord with regard to, and to abide by all the regulations and requirements which Landlord may prescribe for the proper functioning and protection of, the heating and air conditioning system.  The air conditioning system shall be capable of providing 80 degrees Fahrenheit dry bulb and 50% relative humidity with outside conditions of 95 degrees Fahrenheit dry bulb and 75 degrees Fahrenheit wet bulb, provided Tenant acknowledges that the air conditioning system servicing the Building is designed to provide cooling based upon an occupancy of not more than one person per one hundred (100) square feet of floor area, and upon a combined lighting and standard electrical load not to exceed 4.0 watts per square foot.  In the event Tenant exceeds such condition or introduces into the Premises equipment which overloads such system, or in any other way causes such system not to adequately perform its proper functions, supplementary systems may at Landlord's option be provided by Landlord at Tenant's expense.

	
 
	
7.4.
	
Additional Heat and Air Conditioning Services.  Landlord shall, upon reasonable advance written notice from Tenant of its requirements in that regard, furnish additional heat or air conditioning services to the Premises on days and at times other than as provided in this Article.  Tenant will pay to Landlord a reasonable charge for such additional heat or air conditioning services required by Tenant.

	
 
	
7.5.
	
Elevator Service.  Landlord shall provide passenger elevator service to the Premises on Business Days from 8:00 a.m. to 6:00 p.m. and on a reduced basis at all other times.  Upon 48 hours advance notice by Tenant to Landlord, freight elevator service shall be available in common with other tenants on Business Days from 9:00 a.m. to 4:00 p.m. at reasonable charge.

	
 
	
7.6.
	
Cleaning.  Landlord shall furnish cleaning services to the Premises and the common areas of the Building appurtenant to the Premises substantially in accordance with the specifications attached hereto as Exhibit B and made a part hereof.

	
 
	
7.7.
	
Repairs and Other Services.  Except as otherwise provided in the Articles entitled “CASUALTY” and “CONDEMNATION - EMINENT DOMAIN”, and subject to Tenant's obligations in the Article contained herein entitled “MAINTENANCE OF AND IMPROVEMENTS TO PREMISES” and elsewhere in this Lease, Landlord shall (a) keep and maintain the roof, exterior walls, structural floor slabs and columns of the Building in as good condition and repair as they are in on the Term Commencement Date, reasonable use and wear excepted, (b) keep and maintain in workable condition the Building's sanitary, electrical, heating, air conditioning and other systems, (c) keep all walkways on the Property clean and remove all snow and ice therefrom and (d) provide grounds maintenance to all landscaped areas.

	
 
	
7.8.
	
Interruption or Curtailment of Services.  Landlord reserves the right to interrupt, curtail, stop or suspend the furnishing of services and the operation of any Building or Property system, when necessary by reason of accident or emergency, or of repairs, alterations, replacements or improvements in the reasonable judgment of Landlord desirable or necessary to be made, or of difficulty or inability in securing supplies or labor, or of strikes, or of any other cause beyond the reasonable control of Landlord, whether such other cause be similar or dissimilar to those herein above specifically mentioned, until said cause has been removed.  Landlord shall have no responsibility or liability for any such interruption, curtailment, stoppage, or suspension of service or system, except that Landlord shall exercise reasonable diligence to eliminate the cause of same.  Landlord agrees to provide reasonable notice prior to interrupting, curtailing, stopping or suspending the furnishing of services and the operation of any Building systems for the purpose of making elective alterations, replacements or improvements.

 

Page 10

Except when made necessary by an act or omission of Tenant, or Tenant’s employees, agents, contractors or invitees, or except when made necessary by reason of accident, emergency, difficulty or inability in securing supplies of labor, strikes, or of any other cause beyond the reasonable control of Landlord, if the Premises are rendered unusable for Use of the Premises solely because the Landlord interrupts, curtails, stops or suspends the furnishing of services or the operation of any building system to make alterations, replacements or improvements and such interruption, curtailment, stoppage or suspension and the related inability to use the Premises for the Use of the Premises continues for more than 20 consecutive Business Days, the Annual Base Rent shall abate thereafter until the Premises are usable for the Use of the Premises.

	
8.0
	
MAINTENANCE OF AND IMPROVEMENTS TO PREMISES

	
 
	
8.1.
	
Changes or Alterations by Landlord.  Landlord reserves the right, exercisable by itself or its nominee, at any time and from time to time without the same constituting an actual or constructive eviction and without incurring any liability to Tenant therefor or otherwise affecting Tenant's obligations under this Lease, to make such changes, alterations, additions, improvements, repairs or replacements in or to the Building or elsewhere on the Property and the fixtures and equipment thereof, as well as in or to the street entrances, halls, passages, elevators, and stairways thereof, as it may deem necessary or desirable, and to change the arrangement and/or location of entrances or passageways, doors and doorways, and corridors, elevators, stairs, toilets, or other public parts of the Building or other portions of the Property, provided, however, that there be no unreasonable obstruction of the right of access to, or unreasonable interference with the use and enjoyment of the Premises by Tenant, except that Landlord shall not be obligated to employ labor at so-called “overtime” or other premium pay rates.  Nothing contained in this Article shall be deemed to relieve Tenant of any duty, obligation or liability of Tenant with respect to making or causing to be made any repair, replacement or improvement or complying with any law, order or requirement of any governmental or other authority.  Landlord reserves the right to from time to time change the address of the Building or the Property.  Neither this Lease nor any use by Tenant shall give Tenant any right or easement or the use of any door or any passage or any concourse connecting with any other building or to any public convenience, and the use of such doors, passages and concourses and of such conveniences may be regulated or discontinued at any time and from time to time by Landlord without notice to Tenant and without affecting the obligations of Tenant hereunder or incurring any liability to Tenant therefor.

	
 
	
8.2.
	
Alterations and Improvements by Tenant.  Tenant shall make no alterations, decorations, installations, removals, additions or improvements in or to the Premises, the Building or elsewhere on the Property, nor permit any holes to be drilled or made in or on the Premises, the Building or elsewhere on the Property except in each instance in such place and manner and by contractors or mechanics all as shall first have been approved in writing by Landlord.  No such installations or other work shall be undertaken or begun by Tenant until Landlord has approved written plans and specifications therefor; and no amendments or additions to such plans and specifications shall be made without prior written consent of Landlord.  Any such alteration, decoration, installation, removal, addition and improvement shall be done at the sole expense of Tenant and at such times and in such manner as Landlord may designate.  If Tenant shall make any alterations, decorations, installations, removals, additions or improvements, then Landlord may elect to require Tenant, at Tenant's expense, at the expiration of this Lease, to restore the Premises, the Building and the Property (as the case may be) to substantially the same condition as existed at the Term Commencement Date.

	
 
	
8.3.
	
Tenant's Contractors - Mechanics' and Other Liens - Standard of Tenant's Performance - Compliance with Laws.  Whenever Tenant shall make any alteration, decoration, installation, removal, addition or improvement or do any other work in or to the Premises, the Building or elsewhere on the Property, Tenant will strictly observe the following covenants and agreements:

(a) In no event shall any material or equipment be incorporated in or added to the Premises, the Building or any other portion of the Property in connection with any such alteration, decoration, installation, addition or improvement which is subject to any lien, charge, mortgage or other encumbrance of any kind whatsoever or is subject to any security interest or any form of title 

 

Page 11

retention agreement.  Any notice of contract or mechanic's or materialmen's lien filed against the Premises, the Building, the Property or any portion thereof for work claimed to have been done for, or materials claimed to have been furnished to Tenant shall be removed or discharged by Tenant within ten (10) days thereafter, at the expense of Tenant, by filing the bond required by law or otherwise.  If Tenant fails so to remove or discharge any lien, Landlord may do so at Tenant's expense and Tenant shall reimburse Landlord for any expenses or costs incurred by Landlord in so doing within fifteen (15) days after rendition of a bill therefor.

(b) All installations or work done by Tenant under this or any other Article of this Lease shall be at its own expense (unless expressly otherwise provided) and shall at all times comply with (i) laws, rules, orders and regulations of governmental authorities having jurisdiction thereof; (ii) orders, rules and regulations of any insurance rating bureau if and as applicable; and (iii) plans and specifications prepared by and at the expense of Tenant and approved by Landlord prior to the commencement of any work.

(c) Tenant shall procure all necessary permits before undertaking any work in the Premises, the Building or elsewhere on the Property; do all such work in a good and workmanlike manner, employing materials of good quality and complying with all governmental requirements, and defend, save harmless, exonerate and indemnify Landlord from all injury, loss or damage to any person or property occasioned by or arising out of such work.

	
 
	
8.4.
	
Fixtures, Equipment and Improvements - Removal by Tenant.  All fixtures, equipment, improvements and appurtenances attached to or built into the Premises (or the Building or elsewhere on the Property with respect to Tenant's tenancy) prior to or during the Term, or any extension thereof, whether by Landlord, at its expense or at the expense of Tenant, or by Tenant shall be and remain part of the Premises and shall not be removed by Tenant at the end of the Term unless Landlord, in its sole discretion, shall request Tenant to remove any of such fixtures, equipment, improvements and appurtenances in which event Tenant shall remove such at Tenant's expense.  Where not built into the Premises, and if furnished and installed by and at the sole expense of Tenant, all removable furniture, trade fixtures and business equipment shall not be deemed to be included in such fixtures, equipment, improvements and appurtenances and may be, and upon the request of Landlord shall be, removed by Tenant, at Tenant's expense, upon the condition that such removal shall not materially damage the Premises, the Building, the  Property or any portion thereof and that the cost of repairing any damages to the Premises, the Building, the Property or any portion thereof (as the case may be) arising from such removal shall be paid by Tenant, provided, however, that any of such items toward which Landlord shall have granted any allowance or credit to Tenant shall be deemed not to have been furnished and installed in the Premises by or at the sole expense of Tenant.

	
 
	
8.5.
	
Repairs by Tenant.  Tenant shall keep or cause to be kept the Premises in such repair, order and condition as the same are in on the Term Commencement Date or such better condition as the Premises may be put in during the Term hereof.  Without limiting the generality of the foregoing, Tenant shall keep all interior windows and other interior glass whole and in good condition, and shall replace the same whenever broken with glass of the same quality.

	
 
	
8.6.
	
Locks.  Tenant agrees that it will not change, alter or replace the locks provided to the Premises or common access doors, nor will it add locks to same, without the written permission of Landlord.  Tenant agrees that all repairs necessary to such locks (except such locks which are used in common with other tenants of the Building or the Property) will be at Tenant's sole expense.

	
 
	
8.7.
	
Tenant's Improvements and Condition of Premises at Termination.  Upon the termination of this Lease and any extension thereof, by its own terms or otherwise, Tenant will remove its goods and effects and those of all persons claiming under Tenant from the Premises, the Building and all other portions of the Property and will peaceably yield up to Landlord the Premises and all alterations, erections, additions and improvements pursuant to the Section entitled “Fixtures, Equipment and Improvements - Removal by Tenant.”, in good repair, order, and condition in all respects, reasonable use and wear (which for the purposes of this paragraph shall not be deemed to include holes in floors or walls or special wiring caused by the 

 

Page 12

	
 
		
installation of Tenant's fixtures or equipment) excepted.  It is further agreed and understood that at the termination of this Lease or any extension thereof, Tenant shall have restored the Premises and any portion of the Building and the Property (as the case may be) used exclusively by Tenant to good repair, order and condition in all respects, including but not limited to repair of all floor surfaces damaged by the removal of partitions, machinery and equipment, and shall restore all floor areas to a good condition and repair, using materials to provide a consistent floor surface, satisfactory to Landlord; and shall have cleaned and removed accumulations of dirt and particles, oils, greases, and discolorations from all surfaces resulting from Tenant's processes and shall leave the Premises and any portion of  the Building or the Property (as the case may be) used exclusively by Tenant broom clean.

	
9.0
	
INSURANCE, INDEMNIFICATION, EXONERATION AND EXCULPATION

	
 
	
9.1.
	
Insurance.  Tenant shall procure, keep in force and pay for insurance covering all claims and demands for injury to or death of persons or damage to property arising out of or related to Tenant's occupancy of the Premises.  Insurance shall not be in amounts less than the following:

COMMERCIAL GENERAL LIABILITY

$1,000,000combined single limit per occurrence, Coverage A

$1,000,000personal and advertising injury liability, Coverage B

$1,000,000products/completed operations liability aggregate

$       5,000medical payments

$     50,000fire damage legal liability

$2,000,000general aggregate, applying per location, per project OR $4,000,000 general aggregate

The general liability insurance is to be written on the 2001 Insurance Services Office form or its equivalent.

UMBRELLA LIABILITY

$5,000,000each occurrence

$5,000,000aggregate

WORKERS' COMPENSATION

Coverage A Workers' Compensation –Statutory

	
Coverage B Employer's Liability -
	
$500,000 bodily injury by accident, each accident

	
 
	
$500,000 bodily injury by disease, each employee

	
 
	
$500,000 bodily injury by disease, policy aggregate

AUTOMOBILE LIABILITY

$1,000,000 Combined single limit, each accident applying to all owned, hired and nonowned automobiles

GLASS COVERAGE

Covering interior glass windows in the Premises, if any, in such reasonable amounts as may be established from time to time by Landlord.

CONTENTS AND LEASEHOLD IMPROVEMENTS COVERAGE

Adequately insuring all property situated in the Premises, the Building or elsewhere on the Property and belonging to or removable by Tenant along with any leasehold improvements made by Tenant.

BUSINESS INTERRUPTION COVERAGE

Insurance shall not be less than such higher amounts as are customarily carried by responsible tenants of comparable premises in the Greater Boston area and as may be required by Landlord from time to time.

 

Page 13

	
 
	
9.2.
	
Additional Insureds.  Tenant shall add Landlord and such other entities or individuals as Landlord may, from time to time, direct as Additional Insureds on a primary basis on Tenant's Commercial General Liability, Umbrella Liability and Automobile Liability policies.

With respect to glass, contents and leasehold improvement and business interruption coverages, Landlord shall be named as Loss Payee As Their Interest May Appear.

	
 
	
9.3.
	
Certificates of Insurance.  All insurance required under the Lease shall be effected with insurers authorized to do business in the Commonwealth of Massachusetts under valid and enforceable policies.  Such insurance shall provide that, prior to policy cancellation, insurer shall provide reasonable notice to Landlord and each insured named therein.  On or before the first day of the term of this Lease and thereafter not less than fifteen (15) days prior to the expiration date of each expiring policy, original copies of the policies herein provided for, issued by the respective insurers, or certificates of such policies, setting forth in full the provisions thereof and issued by such insurers, together with evidence satisfactory to Landlord of the payment of all premiums for such policies, shall be delivered by Tenant to Landlord, or to any additional insureds, entities or individuals as Landlord may from time to time direct.

	
 
	
9.4.
	
Tenant's Compliance.  Tenant covenants and agrees that during said term and for such further time as Tenant shall hold the Premises or any part thereof, Tenant will comply with all requirements of the Insurance Services Offices of Massachusetts and/or the Factory Mutual Engineering Association (or any similar bodies succeeding to their respective powers) and any local Board of Fire Underwriters; will not make or allow any use or occupation of the Premises, the Building or any other portion of the Property that may make any insurance on the Building or any other portion of the Property, or the contents thereof, void or voidable; and that in the event that Tenant does or permits anything to be done in the Premises, the Building or elsewhere on the Property (including, without limiting the generality of the foregoing, anything which in any way affects the sprinkler system) which:  (a) is classified as a “common hazard” or “special hazard” by said Insurance Services Offices of Massachusetts (or its successor); (b) causes an aftercharge or (c) otherwise increases insurance rates and premium charges over those which would apply but for the doing of such thing, including, but without limiting the generality thereof, increases resulting from the refusal of the Factory Mutual Engineering Association (or any similar body succeeding to its business) to continue coverage of the Building, the Property or any portion thereof; then Tenant will promptly pay to Landlord on demand all increased premium charges caused by the same for any and all of the following insurance:

insurance on the Building, the Property or any portion thereof against damage by fire, with extended coverage, demolition, sprinkler leakage and vandalism and malicious mischief endorsements; Landlord's rental insurance; use and occupancy insurance carried by any tenant of any portion of the Building or the Property; insurance on the contents of Landlord and all other tenants of the Building, the Property or any portion thereof against damage by fire (with extended coverage, sprinkler leakage and vandalism and malicious mischief endorsements) or water.

	
 
	
9.5.
	
Indemnification.  To the fullest extent permitted by law (and not limited by the amounts of any insurance coverage required of Tenant under this Lease), Tenant agrees to defend, indemnify and hold harmless Landlord (which term shall include, without limitation any of the officers, trustees, directors, partners, beneficiaries, joint venturers, members, stockholders or other principals or representatives, disclosed or undisclosed, of Landlord or any managing agent) and such other entities or individuals as Landlord may, from time to time, direct as additional insureds on Tenant's general liability, umbrella liability, automobile, glass, contents and leasehold improvements and business interruption coverage policies, from and against any and all claims, liabilities, penalties, damages or expenses (including without limitation reasonable attorneys' fees) asserted against or incurred by them:

(a) on account of or based upon any injury to person, or loss of or damage to property sustained or occurring on the Premises on account of or based upon the act, omission, fault, negligence or misconduct of any person whomsoever (other than Landlord or its agents, contractors or employees);

 

Page 14

(b) on account of or based upon any injury to person or loss of or damage to property, sustained or occurring elsewhere (other than on the Premises) in or about the Building or elsewhere on the Property (and, in particular, without limiting the generality of the foregoing on or about the elevators, stairways, public corridors, sidewalks, roof, or other, appurtenances and facilities used in connection with the Premises, the Building or other portions of the Property) arising out of the use or occupancy of the Premises, the Building or other portions of the Property by Tenant, or any person claiming by, through or under Tenant, and caused by any person other than Landlord or its agents, contractors, or employees; and

(c) on account of or based upon (including moneys due on account of) any work or thing whatsoever done (other than by Landlord or its contractors, or agents or employees of either) in the Premises, the Building or elsewhere on the Property during the Term of this Lease and during the period of time, if any, prior to the Term Commencement Date or after the Term Expiration Date or earlier date on which the Lease is terminated when Tenant may have been given access to the Premises, the Building or any other portion of the Property;

and, in case any action or proceeding be brought against Landlord by reason of any of the foregoing, Tenant, upon notice from Landlord, shall, at Tenant's expense, resist or defend such action or proceeding and employ counsel therefor reasonably satisfactory to Landlord, it being agreed that such counsel as may act for insurance underwriters of Tenant engaged in such defense shall be deemed satisfactory.

	
 
	
9.6.
	
Property of Tenant.  In addition to and not in limitation of the foregoing, and subject only to provisions of applicable law, Tenant covenants and agrees that all merchandise, furniture, fixtures and property of every kind, nature and description which may be in or upon the Premises, the Building or elsewhere on the Property, shall be at the sole risk and hazard of Tenant, and that if the whole or any part thereof shall be damaged, destroyed, stolen or removed for any cause or reason whatsoever other than the gross negligence or willful misconduct of Landlord, no part of said damage or loss shall be charged to, or borne by Landlord.

	
 
	
9.7.
	
Landlord's Liability.  Landlord shall not be liable for any injury or damage to persons or property resulting from fire, explosion, falling plaster, steam, gas, electricity, electrical disturbance, water, rain, ice or snow or leaks from any part of the Building or any other portion of the Property or from the pipes, appliances or plumbing works or from the roof, street or subsurface or from any other place or caused by any other cause of whatever nature, unless caused by or due to the negligence of Landlord, its agents, contractors or employees; nor shall Landlord or its agents be liable for any such damage caused by other tenants or persons in the Building or elsewhere on the Property or caused by operations in construction of any private, public or quasi-public work; nor shall Landlord be liable for any latent defect in the Premises, the Building or elsewhere on the Property.  All of the limitations on Landlord's liability set forth in this Lease shall be subject to applicable law provided that, in any event, Tenant agrees to pursue and exhaust all claims under its insurance and other remedies prior to seeking reimbursement from Landlord (and to waive such claims against Landlord to the extent Tenant obtains reimbursement through its insurance or other remedies).

	
 
	
9.8.
	
Waiver of Subrogation.  The parties hereto shall each endeavor to procure an appropriate clause in, or endorsement on, any fire or extended coverage insurance policy covering the Premises, the Building or any other portion of the Property and personal property, fixtures and equipment located thereon or therein, pursuant to which the insurance companies waive subrogation or consent to a waiver of right of recovery, and having obtained such clauses and/or endorsements of waiver of subrogation or consent to a waiver of right of recovery each party hereby agrees that it will not make any claim against or seek to recover from the other for any loss or damage to its property or the property of others resulting from fire or other perils covered by such fire and extended coverage insurance; provided, however, that the release, discharge, exoneration and covenant not to sue herein contained shall be limited by the terms and provisions of the waiver of subrogation clauses and/or endorsements or clauses and/or endorsements consenting to a waiver of right of recovery and shall be coextensive therewith.

 

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9.9.
	
Massachusetts Turnpike Authority.  Tenant shall not have or make any claim against Landlord or against the Massachusetts Turnpike Authority for or by reason of the ownership, use or occupancy by said Authority or others of the Massachusetts Turnpike, including without limitation, any claim on account of noise, vibration, fumes, odors or electrical interference resulting from such ownership, use or occupancy or any claim arising from or connected with any accident or other occurrence on said Turnpike.

	
10.0
	
ASSIGNMENT, MORTGAGING, SUBLETTING, ETC.

Tenant covenants and agrees that neither this Lease nor the term and estate hereby granted nor any interest herein or therein, will be assigned, mortgaged, pledged, encumbered or otherwise transferred (whether voluntarily or by operation of law), and that neither the Premises, the Building, the Property nor any part thereof, will be encumbered in any manner by reason of any act or omission on the part of Tenant, or used or occupied, or permitted to be used or occupied, or utilized for any reason whatsoever, by anyone other than Tenant, or for any use or purpose other than Use of the Premises as stated in the Article contained herein entitled “REFERENCE DATA”, or be sublet, or offered or advertised for subletting, without the prior written consent of Landlord in every case.  For purposes hereof, the transfer of a controlling interest in the corporation or other entity constituting Tenant shall be deemed an assignment of this Lease.

Notwithstanding the foregoing language of this Article to the contrary, provided that

(a) the Lease is in full force and effect, 

(b) Tenant is not at the time of the effective date of a Permitted Transfer in default under the Lease beyond any applicable notice and cure period and no condition known to Tenant or Landlord exists which with the passage of time or the giving of notice would constitute a default under the Lease, 

(c) the Affiliate (as defined below) shall assume, by written recordable instrument, in reasonable form and content satisfactory to Landlord (the "Assumption Document"), the due performance of all Tenant's obligations under this Lease, including any accrued obligations at the time of the assignment or subletting,

(d) At the time of the Permitted Transfer, the ultimate parent (if any) of the Affiliate shall guaranty the full performance of Tenant's obligations under the Lease in a reasonable form acceptable to Landlord, and

(e) Tenant provides Landlord with a Notice of Permitted Transfer (as described and in accordance with the provisions below), 

Landlord's consent shall not be required with respect to an assignment of this Lease or subletting of the entire Premises or any portion thereof to an Affiliate for such time as such entity remains an Affiliate.  The foregoing shall be deemed a "Permitted Transfer".

For purposes of this Article, the term "Affiliate" shall be deemed to mean (a) any entity which controls, is controlled by or is under common control with Tenant or (b) any person or entity having a net worth equal to or greater than the greater of  (x) the net worth of Tenant upon the date of this Lease or (y) the net worth of Tenant immediately prior to the Permitted Transfer (as determined in accordance with generally accepted accounting principles) and (i) to which a controlling interest in Tenant is transferred (e.g. by transfer of capital stock) or (ii) which acquires all or substantially all of the assets of Tenant (except in the case of bankruptcy) where the business of Tenant will continue to be operated as a going concern substantially the same as prior to such acquisition of such assets or (iii) which succeeds to the entire business of Tenant pursuant to a merger or corporate reorganization or consolidation, but in the instance of clause (a) of this paragraph, only for so long as such entity remains an "Affiliate" and thereafter Landlord's consent shall be required as otherwise provided above.

For purposes of this Article, the term "Notice of Permitted Transfer" shall be deemed to mean a notice to Landlord at least 10 Business Days in advance of any assignment or subleasing to an Affiliate (subject to any legal restrictions governing the timing of such notice and provided further 

 

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that if the terms of Tenant’s agreement with the proposed Affiliate prohibit pre-closing disclosure of the terms of the assignment or subleasing, then Tenant promptly shall so notify Landlord in writing that Tenant has confidential information relating to a proposed assignment or subleasing, and so long as Landlord provides to Tenant a letter in commercially reasonable form and content confirming that Landlord shall maintain the confidentiality of the Notice of Permitted Transfer, Tenant shall nonetheless be required to provide the Notice of Permitted Transfer 10 Business Days in advance of the assignment or subleasing), which notice shall contain (1) the name and address of the Affiliate to which the Lease will be assigned or the entire Premises (or any portion thereof) will be sublet, (2) a description satisfactory to Landlord of the relationship between the Affiliate and Tenant, (3) evidence of the Affiliates financial condition in the form of a current balance sheet and income and expense statements (all prepared in accordance with generally accepted accounting principles and certified as true, accurate and complete by an authorized officer of the Affiliate), (4) the effective date of the Permitted Transfer, (5) a copy of either (a) an assignment and assumption agreement wherein the assignee assumes all of Tenant's obligations under the Lease or (b) a sublease agreement wherein the subtenant acknowledges that the sublease is subject and subordinate to this Lease, (6) a copy of the Assumption Document (if not included as part of 5a or 5b above) and (7) a copy of the guaranty (or the guarantees, as the case may be) if applicable.

In connection with any request by Tenant for such consent, Tenant shall submit to Landlord, in writing, a statement containing the name of the proposed assignee, subtenant or other third party, such information as to its financial responsibility and standing as Landlord may require, all of the terms and provisions upon which the proposed transaction is to take place and such other information as Landlord may require.  In addition, along with Tenant's written request for consent, Tenant shall deliver to Landlord a non-refundable assignment/sublease review fee of $1,500 which shall be applied against assignment/sublease costs (if any) which are to be reimbursed by Tenant to Landlord as provided below in this Article 10.0, “ASSIGNMENT, MORTGAGING, SUBLETTING, ETC.”.

In addition to Landlord's other rights under this Article and elsewhere in this Lease, if (i) the proposed consideration (including, without limitation, all forms of rent and additional rent) payable by the proposed assignee or subtenant on account of a proposed assignment or sublease is less than the fair market rent (as determined by Landlord in Landlord's sole discretion) for the space subject to any such assignment or sublease or (ii) the proposed assignee or subtenant was procured using the services of a broker other than a broker approved in each instance in advance and in writing by Landlord, Landlord reserves the right to withhold its consent to such assignment or sublease.

The “Assignment/Sublease Consideration” shall be the consideration (including, without limitation, all forms of rent and additional rent) payable by the assignee or subtenant on account of an assignment of the Lease or sublease of all or a portion of the Premises.  For the purposes of this calculation, the Assignment/Sublease Consideration shall be deemed to not include so called “pass-through” charges or charges that will be passed through to an assignee or sub-tenant.  The following are examples (without limitation) of typical “pass-through” charges:  Tenant's proportionate share of costs and expenses in excess of the Operating Expense Base, sub-metered electricity (if any), parking fees (if any), off-hour heat and air conditioning related fees and the like.

The “Lease rent” shall be the Annual Base Rent and Additional Rent pursuant to the Lease, prorated on a per diem basis and allocated on a per square foot basis to the portion of the Premises subject to an assignment or sublease.  For the purposes of this calculation, “Additional Rent” shall be deemed to exclude the Assignment/Sublease Excess Rent as defined below and any pass-through charges not included in the Assignment/Sublease Consideration pursuant to the immediately preceding paragraph.

“Tenant’s Assignment/Sublease Costs” shall be deemed to include the actual out-of-pocket expenses paid by Tenant to third parties in connection with the assignment of the Lease or sublease of all or a portion of the Premises for (a) brokerage commissions and (b) construction of certain improvements in the Premises (or construction “allowances” applicable for such improvements if and to the extent such improvements are actually approved by Landlord in advance, completed and paid for all in accordance with the terms of this Lease).  For the purpose of calculating Tenant’s 

 

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Assignment/Sublease Costs, such improvements in the Premises shall be deemed to specifically include only changes in the locations of walls and doors (and plumbing, electrical, HVAC, fire protection and ceiling changes related to such changes in the locations of walls and doors) and shall specifically not include changes in telecommunications or data wiring or related equipment or any other changes.  For purposes of the calculation hereunder, Tenant’s Assignment/Sublease Costs shall be amortized over the term of the Assignment or Sublease, as the case may be, and applied on a monthly basis to the determination of Assignment/Sublease Excess Rent (as set forth below)

Except in the case of a Permitted Transfer, if the Assignment/Sublease Consideration exceeds the Lease rent plus Tenant’s Assignment/Sublease Costs, Tenant shall pay to Landlord 100% of such excess (the “Assignment/Sublease Excess Rent”).  The Assignment/Sublease Excess Rent shall be paid to Landlord as Additional Rent in equal monthly installments during the balance of the Term with respect to an assignment and over the sublease term with respect to a sublease, and shall be payable on the first day of each month beginning with the first full month during which the assignment or sublease is effective.

Notwithstanding the foregoing provisions of this Article: (l) in the event Tenant proposes to assign this Lease or enter into a sublease such that all or substantially all of the Premises will have been sublet, Landlord, at Landlord's option, may give to Tenant, within thirty (30) days after the submission by Tenant to Landlord of the statement required to be submitted in connection therewith, a notice terminating this Lease on the date (referred to as the “Earlier Termination Date”) immediately prior to the effective date of the proposed assignment or the proposed commencement date of the term of the proposed subletting, as set forth in such statement, and, in the event such notice is given, this Lease and the Term shall come to an end and expire on the Earlier Termination Date with the same effect as if it were the date originally fixed herein for the end of the Term of this Lease, and the Rent shall be apportioned as of said Earlier Termination Date and any prepaid portion of Rent for any period after such date shall be refunded by Landlord to Tenant; or (2) in the event Tenant proposes to sublet any portion of the Premises, Landlord, at Landlord's option, may give to Tenant, within thirty (30) days after the submission by Tenant to Landlord of the statement required to be submitted in connection with such proposed subletting, a notice electing to eliminate such portion of the Premises (said portion is referred to as the “Eliminated Space”) from the Premises during the period (referred to as the “Elimination Period”) commencing on the date (referred to as the “Elimination Date”) immediately prior to the proposed commencement date of the term of the proposed subletting, as set forth in such statement, and ending on a date specified by Landlord, which date shall be on or after the proposed expiration date of the term of the proposed subletting, as set forth in such statement, and in the event such notice is given (i) the Eliminated Space shall be eliminated from the Premises during the Elimination Period; (ii) Tenant shall surrender the Eliminated Space to Landlord on or prior to the Elimination Date in the same manner as if said Date were the date originally fixed in this Lease for the end of the Term of this Lease; (iii) if the Eliminated Space shall constitute less than an entire floor, Landlord, at Landlord's expense, shall have the right to make any alterations and installations in the Premises required, in Landlord's judgment, reasonably exercised, to make the Eliminated Space a self-contained rental unit with access through corridors to the elevators and core toilets serving the Eliminated Space, and if the Premises shall contain any core toilets or any corridors (including any corridors proposed to be constructed by Landlord pursuant to this subdivision (iii) providing access from the Eliminated Space to the core area), Landlord and any tenant or other occupant of the Eliminated Space shall have the right to use such toilets and corridors in common with Tenant and any other permitted occupants of the Premises, and the right to install signs and directional indicators in or about such corridors indicating the name and location of such tenant or other occupant; (iv) during the Elimination Period, the Annual Base Rent shall be reduced in the proportion which the area of the Eliminated Space bears to the total area of the Premises immediately prior to the Elimination Date (including an equitable portion of the area of any corridors referred to in subdivision (iii) of this sentence as part of the area of the Eliminated Space for the purpose of computing such reduction), and any prepaid Rent for any period after the Elimination Date allocable to the Eliminated Space shall be refunded by Landlord to Tenant; (v) there shall be an equitable apportionment of any Additional Rent payable pursuant to the Article contained herein entitled “RENT” for the relevant fiscal and calendar years in which said Elimination Date shall occur; and (vi) if the Elimination Period shall end prior to the date fixed in this Lease for the end of the Term of this Lease, the Eliminated Space, in its then existing condition, shall be deemed restored to and once again a part of 

 

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the Premises subject to the provisions of this Lease as if said elimination had not occurred during the period (referred to as the “Restoration Period”) commencing on the date next following the expiration of the Elimination Period and ending on the date originally fixed in this Lease for the end of the Term of this Lease, except in the event that Landlord is unable to give Tenant possession of the Eliminated Space at the expiration of the Elimination Period by reason of the holding over or retention of possession of any tenant or other occupant, in which event (x) the Restoration Period shall not commence, and the Eliminated Space shall not be deemed restored to or a part of the Premises, until the date upon which Landlord shall give Tenant possession of such Space free of occupancies, (y) neither the date fixed in this Lease for the end of the Term of the Lease, nor the validity of this Lease shall be affected, and (z) Tenant waives any right to recover any damages which may result from the failure of Landlord to deliver possession of the Eliminated Space at the end of the Elimination Period.  At the request of Landlord, Tenant shall execute and deliver an instrument or instruments, in form satisfactory to Landlord, setting forth any modifications to this Lease contemplated in or resulting from the operation of the foregoing provisions of this Article; however, neither Landlord's failure to request any such instrument nor Tenant's failure to execute or deliver any such instrument shall vitiate the effect of the foregoing provisions of this Article.  The failure by Landlord to exercise its option under this Article with respect to any assignment or subletting shall not be deemed a waiver of such option with respect to any extension of such sublease or any subsequent assignment or subletting.

Tenant shall reimburse Landlord promptly, as Additional Rent, for Landlord's reasonable legal, professional, administrative, managerial and all other expenses (which expenses may include, without limitation, hourly fees for administrative and management personnel and an allocation for overhead and profit) related to any request by Tenant for any consent required under the provisions of this Article.

The listing of any name other than that of Tenant, whether at any door of the Premises or in or on any Building or Property directory, or otherwise, shall not operate to vest any right or interest in this Lease or in the Premises or be deemed to be the written consent of Landlord mentioned in this Article, it being expressly understood that any such listing is a privilege extended by Landlord revocable at will by written notice to Tenant.

If this Lease be assigned, or if the Premises or any part thereof be sublet or occupied by anybody other than Tenant, Landlord may at any time and from time to time, collect Rent and other charges from the assignee, subtenant or occupant, and apply the net amount collected to the Rent and other charges herein reserved, but no such assignment or collection shall be deemed a waiver of this covenant, or the acceptance of the assignee, subtenant or occupant as a tenant, or a release of Tenant from the further performance by Tenant of covenants on the part of Tenant herein contained.  The consent by Landlord to an assignment or subletting or occupancy shall not in any way be construed to relieve Tenant from obtaining the express consent in writing of Landlord to any further assignment or subletting or occupancy.

Notwithstanding any consent by Landlord, no assignment or subletting of the Premises by Tenant shall relieve the assigning or subleasing Tenant from Tenant's obligation to pay Rent to Landlord or from Tenant's obligation to observe or perform any and all of the terms, provisions, covenants and conditions of this Lease.  The intent of the preceding sentence is that the assigning or subleasing Tenant remains primarily liable in addition to the liability of the assignee or subtenant as the case may be.

	
11.0
	
MISCELLANEOUS COVENANTS

	
 
	
11.1.
	
Rules and Regulations.  Tenant and Tenant's servants, employees, agents, visitors and licensees will faithfully observe such Rules and Regulations as are attached hereto as Exhibit C and made a part hereof or as Landlord hereafter at any time or from time to time may make and which in the reasonable judgment of Landlord shall be necessary for the reputation, safety, care or appearance of the Building or other portions of the Property, or the preservation of good order therein, or the operation or maintenance of the Building or other portions of the Property, or the equipment thereof, or the comfort of tenants or others in the Building or other portions of the Property, provided, however, that in the case of any conflict between the provisions of this Lease and any such Rules and Regulations, the provisions of this Lease shall control, and provided further that nothing contained in this Lease shall be construed to impose upon 

 

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Landlord any duty or obligation to enforce such Rules and Regulations or the terms, covenants or conditions in any other lease as against any other tenant and Landlord shall not be liable to Tenant for violation of the same by any other tenant, its servants, employees, agents, visitors, invitees or licensees.

	
 
	
11.2.
	
Nuisance.  Tenant shall not permit any nuisance or use or practice on or about the Premises, the Building or elsewhere on the Property which is in violation of Landlord's rules and regulations or any municipal ordinance, law, rule or regulation or any State or Federal laws or which unreasonably interferes with or is an unreasonable annoyance to the peaceful possession or proper use of the premises of other tenants or occupants; the determination of such interference or annoyance to be at the sole discretion of Landlord.

	
 
	
11.3.
	
Access to Premises.  Tenant shall: (i) permit Landlord to erect, use and maintain pipes, ducts and conduits in and through the Premises, provided the same do not materially reduce the floor area or materially adversely affect the appearance thereof; (ii) permit Landlord and any Mortgagee to have free and unrestricted access to and to enter upon the Premises at all reasonable hours for the purposes of inspecting equipment (including, without limitation, sanitary, electrical, heating, air conditioning or other systems) or making repairs, replacements or improvements in or to the Premises, the Building or elsewhere on the Property or complying with all laws, orders and requirements of governmental or other authority or of exercising any right reserved to Landlord by this Lease (including the right during the progress of any such repairs, replacements or improvements or while performing work and furnishing materials in connection with compliance with any such laws, orders or requirements to take upon or through, or to keep and store within, the Premises all necessary materials, tools and equipment); and (iii) permit Landlord, at reasonable times, to show the Premises during ordinary business hours to any Mortgagee, prospective purchaser of any interest of Landlord in the Building, the Property or any portion thereof, prospective Mortgagee, or prospective assignee of any Mortgage, and during the period of twelve months next preceding the Term Expiration Date to any person contemplating the leasing of the Premises or any part thereof.  If during the last month of the Term, Tenant shall have removed substantially all of Tenant's property from the Premises, Landlord may immediately enter and alter, renovate and redecorate the Premises, without elimination or abatement of Rent, or incurring liability to Tenant for any compensation, and such acts shall have no effect upon this Lease.  If Tenant shall not be personally present to open and permit any entry into the Premises at any time when for any reason an entry therein shall be necessary or permissible, Landlord or Landlord's agents must nevertheless be able to gain such entry by contacting a responsible representative of Tenant, whose name, address and telephone number shall be furnished by Tenant.  Landlord shall exercise its rights of access to the Premises permitted under any of the terms and provisions of this Lease in such manner as to minimize, to the extent practicable, interference with Tenant's use and occupation of the Premises.  If an excavation shall be made or authorized by Landlord to be made upon the Property, Tenant shall afford, to the person causing or authorized to cause such excavation, license to enter upon the Premises for the purpose of doing such work as said person shall deem necessary to preserve the Building, the Property or any portion thereof from injury or damage and to support the same by proper foundations without any claim for damage or indemnity against Landlord, or diminution or abatement of Rent.

	
 
	
11.4.
	
Accidents to Sanitary and other Systems.  Tenant shall give to Landlord prompt notice of any fire or accident in the Premises, the Building or elsewhere on the Property and of any damage to, or defective condition in, any part or appurtenance of the Building's or the Property's sanitary, electrical, heating and air conditioning or other systems located in, or passing through, the Premises.

	
 
	
11.5.
	
Signs, Blinds and Drapes.  Tenant shall not place any signs on the exterior of the Building or elsewhere on the Property or on or in any window, public corridor or door visible from the exterior of the Premises.  No drapes or blinds may be put on or in any window nor may any drapes or blinds be removed by Tenant.

 

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11.6.
	
Estoppel Certificate.  Tenant shall at any time and from time to time upon not less than ten (10) Business Days' prior notice by Landlord or by a Mortgagee to Tenant, execute, acknowledge and deliver to the party making such request a statement in writing certifying that this Lease is unmodified and in full force and effect (or if there have been modifications, that the same is in full force and effect as modified and stating the modifications), and the dates to which Rent has been paid in advance, if any, and stating whether or not to the best knowledge of the signer of such certificate Landlord is in default in performance of any covenant, agreement, term, provision or condition contained in this Lease and, if so, specifying each such default of which the signer may have knowledge, it being intended that any such statement delivered pursuant hereto may be relied upon by any prospective purchaser of any interest in the Building, the Property or any portion thereof, any Mortgagee or prospective Mortgagee, any tenant or prospective tenant thereof, any prospective assignee of any Mortgage, or any other party designated by Landlord.  The form of any such estoppel certificate requested by a Mortgagee shall be satisfactory to such Mortgagee.

	
 
	
11.7.
	
Requirements of Law - Fines and Penalties.  Tenant at its sole expense shall comply with all laws, rules, orders and regulations of federal, state, county and local governments (including without limitation, the Americans with Disabilities Act, Public Law 101-336, 42 U.S.C. §§12101 et seq., as amended; the Resource Conservation and Recovery Act, 42 U.S.C. §6901 et seq., as amended; the Comprehensive Environmental Response, Compensation and Responsibility Act of 1980, codified in scattered sections of 26 U.S.C., 33 U.S.C., 42 U.S.C. and 42 U.S.C. §9602 et seq., as amended; the Toxic Substances Control Act, 15 U.S.C. §2061 et seq., as amended; the Massachusetts Oil and Hazardous Materials Release Prevention and Response Act, M.G.L. c.21E, as amended; and the Massachusetts Hazardous Waste Management Act, M.G.L. c.21C, as amended) and with any direction of any public officer or officers, pursuant to law, which shall impose any duty upon Landlord or Tenant with respect to and arising out of Tenant's use or occupancy of the Premises, the Building or any other portion of the Property.  If Tenant receives notice of any violation of law, ordinance, order or regulation applicable to the Premises, the Building or any other portion of the Property, it shall give prompt notice thereof to Landlord.

	
 
	
11.8.
	
Floor Loading.  Tenant shall not place a load upon any floor of the Premises, the Building or other portion of the Property exceeding the floor load per square foot area which such floor was designed to carry and which is allowed by law.  Landlord reserves the right to prescribe the weight and position of all equipment and fixtures, including computers and safes, which shall be placed so as to distribute weight and which shall be placed and maintained by Tenant at Tenant's expense in settings sufficient in Landlord's judgment to absorb and prevent vibration, noise and annoyance.

	
 
	
11.9.
	
Tenant's Access.  Subject to such reasonable rules and regulations as Landlord may impose from time to time, and causes beyond Landlord's reasonable control, Tenant shall have the right, during the Term of the Lease, to have access to the Premises, twenty-four hours per day, seven days per week.  Any rules, regulations, mechanisms or procedures of Landlord with respect to controlling or regulating access to the Premises, the Building or other portions of the Property shall not be interpreted as imposing any duty on Landlord to provide security for the Premises, the Building or any portion of the Property or any person in the Premises, the Building or elsewhere on the Property.

	
 
	
11.10.
	
Survival.  Any and all liability for payments under this Lease, and any and all liability for obligations (including, without limitation, indemnification provisions) relating to the period prior to the expiration of the Term or earlier termination of this Lease and/or for obligations that by their nature arise thereafter, shall survive such expiration or earlier termination.

	
12.0
	
PARKING

From 8:00 am to 6:00 pm on Business Days, in the Garage and in common with other tenants (on an unreserved, non-exclusive basis), Tenant shall have the right to use the number of parking spaces shown in Article 1.0 of this Lease, “REFERENCE DATA:”, under the defined term “Parking Spaces:”.

 

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Tenant's use of Parking Areas on the Property shall be solely by Tenant's employees and visitors.  Landlord shall not be liable to Tenant and this Lease shall not be affected if any parking rights of Tenant hereunder are impaired by any law, ordinance or other governmental regulation imposed after the date of the execution of this Lease.  Landlord reserves the right to grant to any other tenant, person or entity the exclusive right to use specific parking spaces and certain Parking Areas, including, without limitation, certain Parking Areas within the Garage or elsewhere on the Property, which are now or may at some future time be within controlled systems established by Landlord for the use by certain tenants.  Landlord reserves the right to from time to time make changes in Parking Areas and to from time to time implement or change procedures or systems as Landlord determines necessary to monitor and/or control the use of Parking Areas.

Tenant agrees to abide by all rules, regulations and procedures established by Landlord for the use of Parking Areas as such may be changed from time to time.  Landlord shall have the right to tow vehicles that are in violation of any rule or regulation established by Landlord. 

Notwithstanding anything herein contained to the contrary, Landlord agrees to provide Tenant with Additional Parking Spaces in the Garage in common with other tenants (on an unreserved, non-exclusive basis), and Tenant shall pay to Landlord as Additional Rent, the Additional Parking Space Charge.  Landlord may at Landlord’s discretion, by giving notice to Tenant, terminate Tenant's right to use any one or all of such Additional Parking Spaces.  In the event Tenant's right to use such Additional Parking Spaces is terminated, the Additional Parking Space Charge for the use of each such Additional Parking Space so terminated shall be abated from the date of such termination, and there shall be no further reduction of Rent.

	
13.0
	
CASUALTY

In the event of loss of, or damage to, the Premises, the Building or the Property or any portion thereof by fire or other casualty, the rights and obligations of the parties hereto shall be as follows:

(a) If the Premises, or any part thereof, shall be damaged by fire or other casualty, Tenant shall give prompt notice thereof to Landlord, and Landlord, upon receiving such notice, shall proceed promptly and with due diligence, subject to unavoidable delays and the terms of this Article 13.0, to repair, or cause to be repaired, such damage; provided that Landlord shall not be required (i) to repair any Tenant improvements except to the extent that, at least 30 days prior to the fire or other casualty, Landlord receives notice of such improvements, proof of the costs thereof and such other information as Landlord's insuror may require and (ii) to expend in excess of the net insurance proceeds obtained by Landlord and made available to Landlord for such repairs less all costs and expenses including adjustor's and attorney's fees of obtaining such insurance proceeds.  In addition, Landlord's obligations shall be subject to the rights of Mortgagees, applicable laws, including, without limitation, zoning laws and building codes then in existence, and insurance regulations.  If the Premises or any part thereof shall be rendered untenantable by reason of such damage, Annual Base Rent shall proportionately abate for the period from the date of such damage to the date when such damage shall have been repaired.

(b) If, as a result of fire or other casualty, the whole or a substantial portion of the Building or the Property is rendered untenantable, Landlord, within ninety (90) days from the date of such fire or casualty, may terminate this Lease by notice to Tenant, specifying a date not less than twenty (20) nor more than forty (40) days after the giving of such notice on which the Term of this Lease shall terminate.  If Landlord does not so elect to terminate this Lease, then Landlord shall proceed with diligence to repair the damage to the Premises and all facilities serving the same, if any, which shall have occurred, and the Annual Base Rent shall meanwhile proportionately abate, all as provided in Paragraph (a) of this Article.  However, if such damage is not repaired and the Premises restored to substantially the same condition as they were prior to such damage within six (6) months from the date of such damage, Tenant within thirty (30) days from the expiration of such six (6) month period or from the expiration of any extension thereof by reason of unavoidable delays as hereinafter provided, may terminate this Lease by notice to Landlord, specifying a date not more than sixty (60) days after the giving of such notice on which the Term of this Lease shall terminate.  The period within which the required repairs may be accomplished shall be extended by the number of days, not to exceed one hundred eighty (180) days, lost as a result of unavoidable delays, which term shall be defined to include all delays referred to in the Article contained herein entitled “INABILITY TO PERFORM - EXCULPATORY CLAUSE”.

 

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(c) Landlord shall not be required to repair or replace any of Tenant's business machinery, equipment, cabinet work, furniture, personal property or other installations, and no damages, compensation or claim shall be payable by Landlord for inconvenience, loss of business or annoyance arising from any repair or restoration of the Premises, the Building, the Property or any portion thereof.

(d) The provisions of this Article shall be considered an express agreement governing any instance of damage or destruction of the Premises, the Building or any portion thereof by fire or other casualty, and any law now or hereafter in force providing for such a contingency in the absence of express agreement shall have no application.

(e) In the event of any termination of this Lease pursuant to this Article, the Term of this Lease shall expire as of the effective termination date as fully and completely as if such date were the date originally fixed herein for the end of the Term of this Lease.  Tenant shall have access to the Premises for a period of thirty (30) days after the date of termination in order to remove Tenant's personal property.

(f) Landlord's Architect's certificate, given in good faith, shall be deemed conclusive of the statements therein contained and binding upon Tenant with respect to the performance and completion of any repair or restoration work undertaken by Landlord pursuant to this Article or the Article contained herein entitled “CONDEMNATION - EMINENT DOMAIN”.

	
14.0
	
CONDEMNATION - EMINENT DOMAIN

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

Upon the giving of any such notice of termination (either by Landlord or Tenant) this Lease and the Term hereof shall terminate on or retroactively as of the date on which Tenant shall be required to vacate any part of the Premises or shall be deprived of a substantial part of the means of access thereto, provided, however, that Landlord may in Landlord's notice elect to terminate this Lease and the Term hereof retroactively as of the date on which such taking, appropriation or condemnation became legally effective.  In the event of any such termination, this Lease and the Term hereof shall expire as of the effective termination date as fully and completely as if such date were the date originally fixed herein for the end of the Term of this Lease.  If neither party (having the right so to do) elects to terminate, Landlord will, with reasonable diligence and at Landlord's expense, restore the remainder of the Premises, or the remainder of the means of access, as nearly as practical to the same condition as obtained prior to such taking, appropriation or condemnation in which event (i) a just proportion of the Annual Base Rent, according to the nature and extent of the taking, appropriation or condemnation and the resulting permanent injury to the Premises and the means of access thereto, shall be permanently abated, and (ii) a just proportion of the remainder of the Annual Base Rent, according to the nature and extent of the taking, appropriation or condemnation and the resultant injury sustained by the Premises and the means of access thereto, shall be abated until what remains of the Premises and the means of access thereto shall have been restored as fully as may be for permanent use and occupation by Tenant hereunder.

 

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Except for any award specifically reimbursing Tenant for moving or relocation expenses and except for any award specifically made to Tenant for interruption of Tenant's business, there are expressly reserved to Landlord all rights to compensation and damages created, accrued or accruing by reason of any such taking, appropriation or condemnation.  In implementation and in confirmation of which Tenant does hereby acknowledge that Landlord shall be entitled to receive and retain all such compensation and damages, grants to Landlord all and whatever rights (if any) Tenant may have to such compensation and damages, and agrees to execute and deliver all and whatever further instruments of assignment as Landlord may from time to time request.  In the event of any taking of the Premises or any part thereof for temporary use, (i) this Lease shall be and remain unaffected thereby, and (ii) Tenant shall be entitled to receive for itself any award made for such use, provided, that if any taking is for a period extending beyond the Term of this Lease, such award shall be apportioned between Landlord and Tenant as of the Term Expiration Date.

	
15.0
	
DEFAULT

	
 
	
15.1.
	
Conditions of Limitation - Re-entry - Termination.  This Lease and the herein term and estate are upon the condition that if (a) Tenant shall neglect or fail to perform or observe any of Tenant's covenants herein, including (without limitation) the covenants with regard to the payment when due of Rent; or (b) Tenant shall be involved in financial difficulties as evidenced by an admission in writing by Tenant of Tenant's inability to pay its debts generally as they become due, or by the making or offering to make a composition of its debts with its creditors; or (c) Tenant shall make an assignment or trust mortgage, or other conveyance or transfer of like nature, of all or a substantial part of its property for the benefit of its creditors, or (d) the leasehold hereby created shall be taken on execution or by other process of law and shall not be revested in Tenant within sixty (60) days thereafter; or (e) a receiver, sequester, trustee or similar officer shall be appointed by a court of competent jurisdiction to take charge of all or a substantial part of Tenant's property and such appointment shall not be vacated within sixty (60) days; or (f) any proceeding shall be instituted by or against Tenant pursuant to any of the provisions of any Act of Congress or State law relating to bankruptcy, reorganization, arrangements, compositions or other relief from creditors, and, in the case of any such proceeding instituted against it, if Tenant shall fail to have such proceeding dismissed within thirty (30) days or if Tenant is adjudged bankrupt or insolvent as a result of any such proceeding; or (g) any event shall occur or any contingency shall arise whereby this Lease, or the term and estate thereby created, would (by operation of law or otherwise) devolve upon or pass to any person, firm or corporation other than Tenant, except as expressly permitted under the Article of this Lease entitled “ASSIGNMENT, MORTGAGING, SUBLETTING, ETC.”; or (h) Tenant shall vacate all or substantially all of the Premises; or (i) a default by Tenant under the Sublease, or, if Landlord has exercised its rights under Section 3(a) of the Consent to cause Tenant to assume obligations under the Master Lease, a default by Tenant under the “Master Lease” (as defined in the Consent); then, and in any such event Landlord may, in a manner consistent with applicable law, immediately or at any time thereafter declare this Lease terminated by notice to Tenant or, without further demand or notice, enter into and upon the Premises (or any part thereof in the name of the whole), and in either such case (and without prejudice to any remedies which might otherwise be available for arrears of Rent or other charges due hereunder or preceding breach of covenant and without prejudice to Tenant's liability for damages as hereinafter stated), this Lease shall immediately terminate (“Default Termination”).  The words “re-entry” and “re-enter” as used in this Lease are not restricted to their technical legal meaning.  As used in items (b), (c), (e) and (f) of this Section, the term “Tenant” shall also be deemed to refer to any guarantor of Tenant's obligations hereunder.

	
 
	
15.2.
	
Damages - Termination.  In the event of a Default Termination, Tenant shall be liable to Landlord and shall pay to Landlord (i) monthly in advance all Rent accruing from the date of a Default Termination through the date scheduled for the Term of this Lease to expire had the Default Termination not occurred plus (ii) all other unpaid Rent and other Tenant obligations accruing prior to the Default Termination, which amounts shall be paid immediately upon Default Termination; provided that at Landlord's election, exercisable by Landlord at the time of a Default Termination or at any time thereafter (“Landlord's Acceleration Election”), in addition to all other unpaid Rent and other Tenant obligations accruing prior to Landlord's Acceleration Election (including, without limitation the amounts set forth in (i) and (ii) above in this 

 

Page 24

	
 
		
paragraph), Tenant shall pay to Landlord as liquidated damages (and not as a penalty) the aggregate amount of Rent accruing or which would accrue during the period starting with the exercise of Landlord's Acceleration Election and ending with the date scheduled for the expiration of the Term of this Lease had the Default Termination not occurred on an accelerated basis.

In the event of a Default Termination, Landlord may lease the Premises, all or any portion thereof, at any time and from time to time to such other parties and on such terms as Landlord, in Landlord's sole discretion, may determine.  Such re-letting shall not release Tenant from any liability whatsoever except that, if and only to the extent required by applicable law, Landlord shall apply monies collected from any such re-letting to Tenant's obligations after first deducting Landlord's expenses incurred to obtain possession of the Premises, remove property belonging to Tenant or persons claiming by through or under Tenant from the Premises (including, without limitation, any warehouse or storage charges), all expenses of every sort incurred by Landlord in conjunction with re-letting the Premises (including, without limitation, brokerage fees, legal and other professional fees and construction and construction management costs) and all administrative and managerial expenses associated with any of the forgoing, which such expenses may include, without limitation, hourly fees for personnel and an allocation for overhead and profit; provided that in no event shall Tenant be entitled to receive any excess of such net rents over the sums payable by Tenant to Landlord hereunder and provided further that, in any suit for the collection of damages pursuant to this subparagraph, Tenant shall in no event be entitled to a credit for any net rents from a re-letting except to the extent that such net rents are actually received by Landlord.

Suit or suits for the recovery of damages, or any installments thereof, may be brought by Landlord from time to time at Landlord's election, and nothing contained herein shall be deemed to require Landlord to postpone any suit until the date scheduled for the expiration of the Term of this Lease had the Default Termination not occurred.

In the case of any event of default by Tenant under this Lease (whether or not such default results in a Default Termination), in addition to all of Tenant's other obligations under this Lease, Tenant shall be liable to Landlord for and shall pay to Landlord upon demand all expenses, costs and other obligations which Landlord may incur by reason of or related to any such default, including, without limitation, legal, professional, administrative and managerial expenses (which expenses may include, without limitation, hourly fees for personnel and an allocation for overhead and profit).

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

Landlord and Tenant each waive their respective rights to a jury trial of any monetary or non-monetary claim or cause of action based upon or arising out of this Lease, including, without limitation, contract claims, tort claims, breach of duty claims and all other common law or statutory claims.  Each party recognizes and agrees that the foregoing mutual waiver constitutes a material inducement for it to enter into this Lease.  Each party represents and warrants that it has reviewed this waiver with its respective legal counsel and knowingly and voluntarily waives its jury trial rights following such consultation.

	
 
	
15.3.
	
Fees and Expenses.  If Tenant shall default in the performance of any covenant on Tenant's part to be performed as in this Lease contained, Landlord may immediately, or at any time thereafter, without notice, perform the same for the account of Tenant.  If Landlord at any time is compelled to pay or elects to pay any sum of money, or do any act which will require the payment of any sum of money, by reason of the failure of Tenant to comply with any provision hereof, or if Landlord is compelled to or does incur any expense, including without limitation reasonable attorneys' fees, in instituting, prosecuting and/or defending any action or proceeding instituted by reason of any default of Tenant hereunder or any costs incurred in recovering possession of the Premises after the termination of the Lease, Tenant shall on demand pay to Landlord by way of reimbursement the sum or sums so paid by Landlord with all interest, costs and damages.

 

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15.4.
	
Landlord's Remedies Not Exclusive.  The specified remedies to which Landlord may resort hereunder are cumulative and are not intended to be exclusive of any remedies or means of redress to which Landlord may at any time be lawfully entitled, and Landlord may invoke any remedy (including without limitation the remedy of specific performance) allowed at law or in equity as if specific remedies were not herein provided for.

	
 
	
15.5.
	
Grace Period.  Notwithstanding anything to the contrary in this Article contained, Landlord agrees not to take any action to terminate this Lease (a) for default by Tenant in the payment when due of Rent, if Tenant shall cure such default within ten (10) days after written notice thereof given by Landlord to Tenant, or (b) for default by Tenant in the performance of any other covenant, if Tenant shall cure such default within a period of thirty (30) days after written notice thereof given by Landlord to Tenant (except where the nature of the default is such that remedial action should appropriately take place sooner, as indicated in such written notice), or with respect to covenants other than to pay a sum of money within such additional period as may reasonably be required to cure such default if (because of governmental restrictions or any other cause beyond the reasonable control of Tenant) the default is of such a nature that it cannot be cured within such thirty (30)-day period, provided, however, (1) that there shall be no extension of time beyond such thirty (30)-day period for the curing of any such default unless, not more than ten (10) days after the receipt of the notice of default, Tenant in writing (i) shall specify the cause on account of which the default cannot be cured during such period and shall advise Landlord of its intention duly to institute all steps necessary to cure the default and (ii) shall as soon as may be reasonable duly institute and thereafter diligently prosecute to completion all steps necessary to cure such default and, (2) that no notice of the opportunity to cure a default need be given, and no grace period whatsoever shall be allowed to Tenant, if the default is incurable or if the covenant or condition the breach of which gave rise to the default had, by reason of a breach on a prior occasion, been the subject of a notice hereunder to cure such default.

	
16.0
	
ABANDONED PROPERTY

Any personal property in which Tenant has an interest which shall remain in the Premises, the Building or elsewhere on the Property after the expiration or termination of the Term of this Lease shall be conclusively deemed to have been abandoned, and may be disposed of in such manner as Landlord may see fit.

	
17.0
	
SUBORDINATION

This Lease is subject and subordinate in all respects to the lease dated April 1, 1968 between the Massachusetts Turnpike Authority, as landlord, and Landlord as tenant, as amended, and to any future ground lease, to all mortgages and other matters of record and to mortgages which may hereafter be placed on or affect this Lease, the Building, the Property or any portion thereof or Landlord's interest or estate therein, and to each advance made or hereafter to be made under any such mortgages, and to all renewals, modifications, consolidations, replacements and extensions thereof and substitutions therefor.  This Article shall be self-operative and no further instrument of subordination shall be required.  In confirmation of such subordination, Tenant shall execute and deliver promptly any certificate acknowledging or confirming such subordination that Landlord or any mortgagee or their respective successor in interest may request.

Landlord shall, upon receipt of Tenant’s written request, use reasonable efforts to obtain a Subordination, Non-Disturbance and Attornment agreement from any future Mortgagees holding mortgages covering real estate of which the Premises is a part.  The failure of the Landlord to obtain any such agreement shall not be a default by Landlord under this Lease.  Tenant shall reimburse Landlord upon demand, as Additional Rent, for Landlord's reasonable legal, professional, administrative, managerial and all other expenses (which expenses may include, without limitation, hourly fees for administrative and management personnel and an allocation for overhead and profit) related to any such request by Tenant.

 

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18.0
	
QUIET ENJOYMENT

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

Without incurring any liability to Tenant, Landlord may permit access to the Premises and open the same, whether or not Tenant shall be present, upon any demand of any receiver, trustee, assignee for the benefit of creditors, sheriff, marshall or court officer entitled to, or reasonably purporting to be entitled to, such access for the purpose of taking possession of, or removing Tenant's property or for any other lawful purpose (but this provision and any action by Landlord hereunder shall not be deemed a recognition by Landlord that the person or official making such demand has any right or interest in or to this Lease, or in or to the Premises), or upon demand of any representative of the fire, police, building, sanitation or other department of the city, county, state or federal governments.

	
19.0
	
ENTIRE AGREEMENT - WAIVER - SURRENDER

	
 
	
19.1.
	
Entire Agreement.  This Lease and the Exhibits made a part hereof contain the entire and only agreement between the parties relative to the Premises and any and all statements and representations, written and oral, including previous correspondence and agreements between the parties hereto, are merged herein.  Tenant acknowledges that all representations, and statements upon which it relied in executing this Lease are contained herein and that Tenant in no way relied upon any other statements or representations, written or oral.  Any executory agreement hereafter made shall be ineffective to change, modify, discharge or effect an abandonment of this Lease in whole or in part unless such executory agreement is in writing and signed by the party against whom enforcement of the change, modification, discharge or abandonment is sought.  Nothing herein shall prevent the parties from agreeing to amend this Lease and the Exhibits made a part hereof as long as such amendment shall be in writing and shall be duly signed by both parties.

	
 
	
19.2.
	
Waiver by Landlord.  The failure of Landlord to seek redress for violation, or to insist upon the strict performance, of any covenant or condition of this Lease, or any of the Rules and Regulations promulgated hereunder, shall not prevent a subsequent act, which would have originally constituted a violation, from having all the force and effect of an original violation.  The receipt by Landlord of Rent with knowledge of the breach of any covenant of this Lease shall not be deemed a waiver of such breach.  The failure of Landlord to enforce any of such Rules and Regulations against Tenant or any other tenant, licensee or occupant in the Building or elsewhere on the Property shall not be deemed a waiver of any such Rules and Regulations.  No provisions of this Lease shall be deemed to have been waived by Landlord unless such waiver be in writing signed by Landlord.  No payment by Tenant or receipt by Landlord of a lesser amount than the monthly Rent herein stipulated shall be deemed to be other than on account of the stipulated Rent, nor shall any endorsement or statement on any check or any letter accompanying any check or payment of rent be deemed an accord and satisfaction, and Landlord may accept such check or payment without prejudice to Landlord's right to recover the balance of such rent or pursue any other remedy in this Lease provided.

	
 
	
19.3.
	
Surrender.  No act or thing done by Landlord during the term hereby demised shall be deemed an acceptance of a surrender of the Premises, and no agreement to accept such surrender shall be valid, unless in writing signed by Landlord.  No employee of Landlord or of Landlord's agents shall have any power to accept the keys of the Premises prior to the termination of this Lease.  The delivery of keys to any employee of Landlord or of Landlord's agents shall not operate as a termination of the Lease or a surrender of the Premises.

	
20.0
	
INABILITY TO PERFORM - EXCULPATORY CLAUSE

Landlord shall be relieved from performing its obligations under this Lease if Landlord is prevented or delayed from doing so by reason of strikes or labor troubles or any other similar or dissimilar cause whatsoever beyond Landlord's reasonable control, including but not limited to, governmental 

 

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preemption in connection with a national emergency or by reason of any rule, order or regulation of any department or subdivision thereof of any governmental agency or by reason of the conditions of supply and demand which have been or are affected by war, hostilities or other similar or dissimilar emergency.  In each such instance of inability of Landlord to perform, Landlord shall exercise reasonable diligence to eliminate the cause of such inability to perform.

Tenant shall neither assert nor seek to enforce any claim for breach of this Lease against any of Landlord's assets other than Landlord's interest in the Building of which the Premises are a part, and Tenant agrees to look solely to such interest for the satisfaction of any liability of Landlord under this Lease, it being specifically agreed that in no event shall Landlord (which term shall include, without limitation any of the officers, trustees, directors, partners, beneficiaries, joint venturers, members, stockholders or other principals or representatives, disclosed or undisclosed, of Landlord or any managing agent) ever be personally liable for any such liability.  This paragraph shall not limit any right that Tenant might otherwise have to obtain injunctive relief against Landlord or to take any other action which shall not involve the personal liability of Landlord to respond in monetary damages from Landlord's assets other than Landlord's interest in said real estate, as aforesaid.  Notwithstanding anything to the contrary contained in this Lease, in no event shall Landlord be liable for consequential damages.

Landlord shall not be in default unless a failure to perform an obligation remains uncured for more than thirty (30) days following written notice from Tenant specifying the nature of such default, or such longer period as may be reasonably required to correct such default.

	
21.0
	
LANDLORD'S CONSENT

It is understood and agreed that whenever Landlord's consent or approval is required, either expressed or implied, by any provision of this Lease, the consent or approval may be granted or withheld arbitrarily in Landlord's sole discretion unless otherwise specifically stated in such provision.  Notwithstanding anything to the contrary contained in the Lease, if any provision of the Lease obligates Landlord not to unreasonably withhold its consent or approval, an action for specific performance will be Tenant's sole right and remedy in any dispute as to whether Landlord has breached such obligation.

	
22.0
	
RIGHT TO RELOCATE

Landlord reserves the right to relocate the Premises to space elsewhere in the Building comparable to the Premises with respect to size, condition, finish, design and functional layout (the “Relocation Space”) by giving Tenant reasonable prior written notice (the “Relocation Notice”) of Landlord's intention to relocate the Premises.  If within 30 days after the date of the Relocation Notice, Landlord and Tenant have not agreed upon the specific space to which the Premises are to be relocated to and the timing of such relocation, then, at any time until Landlord and Tenant (i) agree upon the specific space to which the Premises are to be relocated and the timing of such relocation and (ii) execute an amendment to this Lease with respect to such agreement, Landlord may terminate this Lease by notice to Tenant.  If Landlord elects to terminate this Lease, then this Lease shall terminate on that date which is 30 days after the date of the notice to terminate this Lease given pursuant to the immediately preceding sentence.  If Landlord and Tenant do agree upon the space to which the Premises are to be relocated to and the timing of such relocation, then Tenant agrees to execute an amendment to the Lease setting forth such agreement.  Landlord agrees to pay the reasonable costs of moving Tenant to such other space (including, without limitation, the reasonable cost to relocate Tenant’s phone and computer systems and the reasonable cost for a moving contractor to pack and unpack Tenant’s personal property to the extent a moving contractor would typically perform such function) and the reasonable cost to replace any letterhead and business cards existing as of the effective date of any relocation if and to the extent such letterhead and business cards are rendered obsolete solely as a result of such relocation.  Except as may be mutually agreed to in writing in the form of an amendment to this Lease, the exercise of Landlord’s rights pursuant to this Article shall not in and of itself give rise to any increase or decrease in Rent.  If construction in the Relocation Space is required in order to make the Relocation Space comparable to the Premises (as required above in this Article 22.0, “RIGHT TO RELOCATE”), such construction shall be performed by Landlord at Landlord’s expense and shall be Substantially Complete prior to any relocation.

 

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23.0
	
BILLS AND NOTICES

All bills and statements for reimbursement or other payments or charges due from Tenant to Landlord hereunder shall be due and payable in full thirty (30) days, unless herein otherwise provided, after submission thereof by Landlord to Tenant.  Tenant's failure to make timely payment of any amounts indicated by such bills and statements, whether for work done by Landlord at Tenant's request, reimbursement provided for by this Lease or for any other sums properly owing by Tenant to Landlord, shall be treated as a default in the payment of Rent, in which event Landlord shall have all rights and remedies provided in this Lease for the nonpayment of Rent.

Any notice by either party to the other party shall be in writing.  Any notice from Landlord to Tenant related to the Premises or to the occupancy thereof shall be deemed duly served if and when such notice is (i) addressed to Tenant and left at the Premises or (ii) sent to Tenant at Tenant's Address by registered or certified mail, return receipt requested, postage prepaid or by FedEx, UPS or other nationally known reputable overnight courier service.  Any notice from Tenant to Landlord related to the Premises or to the occupancy thereof shall be deemed duly served if and when such notice is sent to Landlord at Landlord's Address by registered or certified mail, return receipt requested, postage prepaid or by FedEx, UPS or other nationally known reputable overnight courier service.

Landlord may change Landlord's Address and Tenant may change Tenant's Address by delivering or sending a notice in accordance with the foregoing paragraph to the other party  stating the change and setting forth the changed address, provided such changed address is within the United States.

	
24.0
	
HOLDOVER

If Tenant remains in the Premises, the Building or elsewhere on the Property beyond the expiration or earlier termination of the Term of this Lease such holding over shall not be deemed to create any tenancy, but Tenant (a) shall be a tenant-at-sufferance only, (b) shall pay Rent to Landlord at the times and manner determined by Landlord at a daily rate in an amount equal to three times the daily rate of the Rent and other sums payable under this Lease as of the last day of the Term of this Lease and (c) shall indemnify, defend and hold harmless Landlord from and against any and all damages, liabilities, claims and losses relating to or arising as a result of such holding over.

	
25.0
	
NO OPTION

Employees or agents of Landlord have no authority to make or agree to make a lease or any other agreement or undertaking in connection herewith.  The submission of this document for examination and negotiation does not constitute an offer or agreement to lease, or a reservation of, or option for the Premises and this document shall become effective and binding as a lease only upon the execution and delivery hereof by both Landlord and Tenant.  If Tenant executes all of the execution copies of this document and returns them to Landlord, such action shall constitute an irrevocable offer by Tenant to enter into this document as a lease, which offer Landlord may accept by executing the same and returning one (1) fully executed copy to Tenant at any time within two (2) weeks after receipt of such execution copies by Landlord.  If Landlord does not accept such offer within said two (2) week period, it shall be deemed to have been rejected; and upon rejection (either by lapse of time as aforesaid or by notice from Landlord to Tenant), Landlord will destroy all of said execution copies.  If Tenant is a corporation, it agrees that the person executing this Lease for it has full authority to do so, and also to execute any notice, receipt, consent, amendment of the Lease, or any other document pertaining to the Lease or the Premises until such time as Landlord receives notice from Tenant to the contrary.

	
26.0
	
PARTIES BOUND - SEIZIN OF TITLE

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

If, in connection with or as a consequence of the sale, transfer or other disposition of the Building, the Property or any portion thereof, Landlord ceases to be the owner of the “landlord's” interest in the Premises, Landlord shall be entirely freed and relieved from the performance and observance 

 

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

	
27.0
	
MISCELLANEOUS

	
 
	
27.1.
	
Separability.  If any provision of this Lease or portion of such provision or the application thereof to any person or circumstance is for any reason held invalid or unenforceable, the remainder of the Lease (or the remainder of such provision) and the application thereof to other persons or circumstances shall not be affected thereby.  In the event that any charge under this Lease is interpreted to be the payment of interest, the rate of interest shall be equal to the lesser of the amount stated in the Lease or the maximum amount permitted by law.

	
 
	
27.2.
	
Independent Covenants.  The covenant and agreement of Tenant to pay to Landlord Annual Base Rent, Real Estate Taxes, Operating Expenses, Additional Rent or any other payment to Landlord or any covenant or agreement of Tenant to make payments to third parties (such as direct payments to a taxing authority) shall be independent of any covenant in this Lease to be performed by Landlord; and default in Landlord's performance of any such covenant shall not be a basis for Tenant to cease or reduce payment to Landlord of Annual Base Rent, Real Estate Taxes, Operating Expenses, Additional Rent or any other payment to Landlord, or to cease or reduce payments to third parties, or to terminate this Lease.

	
 
	
27.3.
	
Captions.  The captions are inserted only as a matter of convenience and for reference, and in no way define, limit or describe the scope of this Lease nor the intent of any provisions thereof.

	
 
	
27.4.
	
Landlord or Tenant.  The words “Landlord” and “Tenant” as used in this Lease may extend to and be applied to several parties whether male or female and to corporations and partnerships, and words importing the singular may include the plural and all obligations of Tenant as herein defined shall be joint and several.  Each of the provisions of this Lease shall bind and inure to the benefit of the heirs, legal representatives, successors and assigns of the parties hereto and it is specifically understood that Landlord has the right to assign all of its right, title and interest, or any portion thereof, in and to this Lease and any amendments thereto to any other party or entity during the Term of this Lease and any extension thereof and that Tenant shall execute any and all instruments that may be necessary to acknowledge and assent to such assignment.

	
 
	
27.5.
	
Broker.  Each party represents and warrants that it has not directly or indirectly dealt, with respect to the leasing of space in the Building or elsewhere on the Property, with any broker or had its attention called to the Premises or other space to let in the Building or elsewhere on the Property, by any broker other than the Broker (if any) listed in the Article of this Lease entitled “REFERENCE DATA” whose commission shall be the responsibility of Landlord.  Each party agrees to exonerate and save harmless and indemnify the other against any claims for a commission by any other broker, person or firm, with whom such party has dealt in connection with the execution and delivery of this Lease or out of negotiations between Landlord and Tenant with respect to the leasing of other space in the Building or elsewhere on the Property.

	
 
	
27.6.
	
Governing Law.  This Lease is made pursuant to, and shall be governed by, and construed in accordance with, the laws of the Commonwealth of Massachusetts.

	
 
	
27.7.
	
Assignment of Lease and/or Rents.  With reference to any assignment by Landlord of its interest in this Lease and/or the Rent payable hereunder, conditional in nature or otherwise, which assignment is made to or held by a bank, trust company, insurance company or other institutional lender holding a Mortgage on the Building, the Property or any portion thereof, Landlord and Tenant agree:

(a) that the execution thereof by Landlord and acceptance thereof by such Mortgagee shall never be deemed an assumption by such Mortgagee of any of the obligations of Landlord hereunder, unless such Mortgagee shall, by written notice sent to Tenant, specifically otherwise elect; and

(b) that, except as aforesaid, such Mortgagee shall be treated as having assumed Landlord's obligations hereunder only upon foreclosure of such Mortgagee's Mortgage and the taking of possession of the Premises after having given notice of its intention to succeed to the interest of Landlord under this Lease.

 

Page 30

	
 
	
27.8.
	
Notice of Lease.  Tenant agrees that it will not record this Lease in any Registry of Deeds or Registry District.

IN WITNESS WHEREOF, Landlord and Tenant have caused this instrument to be executed under seal, all as of the day and year first above written.

 

	
GATEWAY REALTY TRUST
	
 
	
Acer Therapeutics Inc.

	
 
	
 
	
 
	
 
	
 
	
 
	
 

	
BY:
	
 
	
Commonwealth Development LLC,
	
 
	
 
	
 
	
 

	
as Trustee and not individually
	
 
	
 
	
 
	
 

	
 
	
 
	
 
	
 
	
 
	
 
	
 

	
By
	
 
	
/s/ James A. Magliozzi
	
 
	
By
	
 
	
/s/ Chris Schelling

	
 
	
 
	
James A. Magliozzi, Manager
	
 
	
Name:
	
 
	
Chris Schelling

	
 
	
 
	
 
	
 
	
Title:
	
 
	
CEO & Founder, duly authorized

	
 
	
 
	
 
	
 
	
 
	
 
	
 

	
 
	
 
	
 
	
 
	
 
	
 
	
4/6/2018

 

 

 

 

 

EXHIBIT A

LEASE PLAN

 

 

 

EXHIBIT B

CLEANING SERVICES

 

LOBBY AND COMMON AREAS

	
•
	
Clean and disinfect water fountains

	
•
	
Clean directory and signage

	
•
	
Clean doors, walls, windows, mullions and metal work

	
•
	
Clean hard surface floors

	
•
	
Dust horizontal surfaces

	
•
	
Empty trash receptacles

	
•
	
High dusting (exit signs, light fixtures and air diffusers)

	
•
	
Vacuum all carpets and mats

 

LAVATORIES

	
•
	
Clean mirrors, walls, rest room supply dispensers and toilet partitions.

	
•
	
Clean and disinfect countertops, sinks and toilets

	
•
	
Empty trash receptacles

	
•
	
High dusting (exit signs, light fixtures and air diffusers)

	
•
	
Refill rest room supply dispensers

	
•
	
Sweep and wash floors

 

TENANT AREAS

	
•
	
Dry mop tile floors

	
•
	
Dust open horizontal surfaces

	
•
	
Empty trash receptacles

	
•
	
High dusting (exit signs, light fixtures and air diffusers)

	
•
	
Vacuum all carpets

 

 

EXHIBIT C

RULES AND REGULATIONS

	
1.
	
The sidewalks, entrances, passages, courts, elevators, vestibules, stairways, corridors or halls of the Property shall not be obstructed or encumbered or used for any purpose other than ingress and egress to and from the premises demised to any tenant or occupant.

	
2.
	
No awnings or other projections shall be attached to the outside walls or windows of the Building without the prior written consent of Landlord.  No curtains, blinds, shades, or screens shall be attached or hung in, or used in connection with, any window or door of the premises demised to any tenant or occupant, without the prior written consent of Landlord.  Such awnings, projections, curtains, blinds, shades, screens, or other fixtures must be of a quality type, design and color, and attached in a manner, approved by Landlord in writing in advance.

	
3.
	
No sign, advertisement, object, notice or other lettering shall be exhibited, inscribed, painted or affixed on any part of the outside or inside of the premises demised to any tenant or occupant of the Building without the prior written consent of Landlord.  Interior signs on doors and directory tables, if any, shall be of a size, color and style approved by Landlord in writing and in advance.

	
4.
	
The sashes, sash doors, skylights, windows, and doors that reflect or admit light and air into the halls, passageways or other public places in the Building shall not be covered or obstructed, nor shall any bottles, parcels, or other articles be placed on any window sills.

	
5.
	
No show cases or other articles shall be put in front of or affixed to any part of the exterior of the Building, nor placed in the halls, corridors, vestibules or other parts of the Building.

	
6.
	
The water and wash closets and other plumbing fixtures shall not be used for any purposes other than those for which they were constructed, and no sweepings, rubbish, rags, or other substances shall be thrown therein.

	
7.
	
No tenant or occupant shall mark, paint, drill into, or in any way deface any part of the Building or the premises demised to such tenant or occupant.  No boring, cutting or stringing of wires shall be permitted, except with the prior written consent of Landlord, and as Landlord may direct.  No tenant or occupant shall install any resilient tile or similar floor covering in the premises demised to such tenant or occupant except in a manner approved by Landlord in writing and in advance.

	
8.
	
No bicycles, vehicles, dogs (except for seeing eye dogs and similar animals) or other animals, birds or pets of any kind shall be brought into or kept in or about the premises demised to any tenant.  Bicycles may be stored in racks, if any, furnished for such purpose by Landlord in a common area of the Property.  No cooking shall be done or permitted in the Building by any tenant without the approval of Landlord.  No tenant shall cause or permit any unusual or objectionable odors to emanate from the premises demised to such tenant.

	
9.
	
Without the prior written consent of Landlord, no space in the Building shall be used for manufacturing, or for the sale of merchandise, goods or property of any kind at auction.

	
10.
	
No tenant shall make, or permit to be made, any unseemly or disturbing noises or disturb or interfere with other tenants or occupants of the Building or neighboring buildings or premises whether by the use of any musical instrument, radio, television set or other audio device, unmusical noise, whistling, singing, or in any other way.  Nothing shall be thrown out of any doors or windows.

	
11.
	
Each tenant must, upon the termination of its tenancy, restore to Landlord all keys of stores, storage areas, offices and toilet rooms, either furnished to, or otherwise procured by, such tenant.

	
12.
	
All removals from the Building, or the carrying in or out of the Building or the premises demised to any tenant, of any safes, freight, furniture, or bulky matter of any description must take place at such time and in such manner as Landlord or its agents may determine, from time to time.  Landlord reserves the right to inspect all freight to be brought into the Building and to exclude from the Building all freight which violates any of the Building Rules or the provisions of such tenant's lease.

i

 

	
13.
	
No tenant or occupant shall purchase spring water, ice, food, beverage, lighting maintenance, cleaning towels or other like service, from any company or person not approved by Landlord in writing and in advance, which approval shall not be unreasonably withheld.

	
14.
	
Landlord shall have the right to prohibit any advertising by any tenant or occupant which, in Landlord's opinion, tends to impair the reputation of the Building or its desirability as a building for offices, and upon notice from Landlord, such tenant or occupant shall refrain from or discontinue such advertising.

	
15.
	
Each tenant, before closing and leaving the premises demised to such tenant at any time, shall see that all entrance doors are locked and windows closed.

	
16.
	
Each tenant shall, at its expense, provide artificial light in the premises demised to such tenant for Landlord's agents, contractors, and employees while performing janitorial or other cleaning services and making repairs or alterations in said premises.

	
17.
	
No premises shall be used, or permitted to be used, for lodging or sleeping, or for any immoral or illegal purpose.

	
18.
	
There shall not be used in the Building, either by any tenant or occupant or by their agents or contractors, in the delivery or receipt of merchandise, freight or other matter, any hand trucks or other means of conveyance except those equipped with rubber tires, rubber side guards and such other safeguards as Landlord may require.

	
19.
	
Canvassing, soliciting and peddling in the Building are prohibited and each tenant and occupant shall cooperate in seeking their prevention.

	
20.
	
If the premises demised to any tenant become infested with vermin, such tenant, at its sole cost and expense, shall cause its premises to be exterminated from time to time, to the satisfaction of Landlord, and shall employ such exterminators therefor as shall be approved by Landlord in writing and in advance.

	
21.
	
No premises shall be used, or permitted to be used, at any time, without the prior written approval of Landlord, as a store for the sale or display of goods, wires or merchandise of any kind, or as a restaurant, shop, booth, bootblack or other stand, or for the conduct of any business or occupation which predominantly involves direct patronage of the general public in the premises demised to such tenant, or for manufacturing or for other similar purpose.

	
22.
	
No tenant shall move, or permit to be moved, into or out of the Building or the premises demised to such tenant, any heavy or bulky matter, without the specific approval of Landlord.  If any such matter requires special handling, only a person holding a Master Rigger's license shall be employed to perform such special handling.  No tenant shall place, or permit to be placed, on any part of the floor or floors of the premises demised to such tenant, a load exceeding the floor load per square foot which such floor was designed to carry and which is allowed by law.  Landlord reserves the right to prescribe the weight and position of safes and other heavy matter, which must be placed so as to distribute the weight.

	
23.
	
The requirements of tenants will be attended to only upon application at the office of the Building.  Building employees shall not be required to perform, and shall not be requested by any tenant or occupant to perform, any work outside of their regular duties, unless under specific instructions from the office of the managing agent of the Building.

	
24.
	
Tenant shall not block access to heating and air conditioning or other equipment or elements of the Building to be maintained by Landlord, whether by the placement of Tenant’s furniture or equipment or otherwise.  In the event such heating and air conditioning or other equipment or element of the Building is blocked by the placement of Tenant’s furniture or equipment or otherwise, Tenant, at Tenant’s expense, shall upon request of Landlord immediately move such equipment.

	
1.
	

ii

 

EXHIBIT D

WORK LETTER

Landlord shall provide all plans and drawings necessary to modify the Premises pursuant to this Work Letter.  If Tenant elects to make material changes to the work described in this Work Letter and such changes increase the cost of the plans and drawings or of the work or cause a delay in the production of the plans and drawings or of the work, then all such changes, delays and any related costs shall be at the sole cost and expense of Tenant.

Landlord shall furnish labor and materials as necessary to modify the Premises pursuant to this Work Letter using Building Standard Construction Items (Building Standard Construction Items are set forth in Exhibit E).  Landlord shall perform the required to be performed by Landlord pursuant to this Work Letter in a good and workman like manner.  Unless otherwise specifically specified in this Work Letter, all items, including, without limitation, construction items which are not Building Standard Construction Items and which are to be provided at Landlord's expense, if any, will be standard basic, in-stock, locally available items and the specific manufacturer, model, and style will be at Landlord's sole discretion.  The additional costs of any custom colors or sizes or any special-order items, the cost of any construction items which are not Building Standard Construction Items, and the cost of any Building Standard Construction Items which are in excess of the quantity of Building Standard Construction Items to be provided pursuant to Exhibit E shall be paid to Landlord by Tenant within 30 days of Tenant's receipt of an invoice for such additional costs.

Notwithstanding anything to the contrary in this Exhibit D, “Work Letter”, or elsewhere in the Lease, Landlord’s obligation to perform modifications in the Premises shall include only as specifically stated in this Work Letter the following: replace existing 2’ x 4’ parabolic lens fluorescent ambient light fixtures with building typical premium LED ambient light fixtures, install a building typical sink and faucets in existing counter top along with sink related plumbing, electrical and other sink related modifications, remove all abandoned telephone/data jacks and related wiring and patch and match affected walls.

In addition to modifying the Premises as required pursuant to this Work Letter with Building Standard Construction Items, Landlord agrees to provide the following construction items at the Landlord's expense:

	
 
	
•
	
Building typical premium 2’ x 4’ LED ambient light fixtures throughout

	
 
	
•
	
One building typical sink and faucet set-up with point of use water heater along with modification to existing countertop and lower cabinets as applicable and necessary related plumbing and electrical.

Unless otherwise specifically set forth above, the following items, if applicable, and any related costs will be at the sole expense of Tenant:

	
 
	
•
	
Any plumbing, plumbing fixtures and equipment required by Tenant, including, without limitation, any plumbing, plumbing fixtures and equipment related to any kitchen or sink areas.

	
 
	
•
	
Special or dedicated circuits or electrical connections in excess of the number of or of a different type than circuits and receptacles ordinarily provided for standard office space and costs related to the connection of Tenant's computers or other equipment.

	
 
	
•
	
Other than as provided for standard office space, heating, ventilation, air conditioning, humidification or air filtration (“HVAC”) required because of Tenant's processes, at Tenant's election or to meet any other special needs of Tenant.

	
 
	
•
	
Millwork, countertop, cabinetry or shelving.

	
 
	
•
	
Glass and glazing within the Premises.

	
 
	
•
	
Modifications to the building standard construction of partitions, doors and frames, flooring and base, painting, lighting fixtures, convenience outlets, or air diffusers required because of Tenant's processes, the installation of Tenant's equipment, at Tenant's election or to meet any other special needs of Tenant, including, without limitation, walls extending to underside of slab, blocking, 

 

 

	
 
		
special sound insulation, modified doors, folding or retractable doors, access or raised flooring and any costs related to the foregoing.

	
 
	
•
	
Tenant's moving and equipment rigging costs.

Tenant shall provide at its expense, all labor, equipment and materials related to the installation and operation of its own telephone, telecommunications, security and computer systems, and any other fixtures and/or equipment required by Tenant.

Notwithstanding anything to the contrary contained above in this Work Letter or elsewhere in the Lease, Tenant shall, at Tenant’s expense, be responsible for providing Landlord with Tenant’s finish selection specifications, including, without limitation, detailed specifications and locations if and as applicable for paint colors, carpet, vinyl base and VCT, plastic laminate or other counter tops, millwork, blocking in walls, special electrical needs, etc.  Such information shall be delivered to Landlord complete and accurate in the then current industry best-practices format no later than one week after Lease execution.  Failure of Tenant to provide such information by such time and in such format shall constitute a delay in the production of the plans and drawings caused by Tenant.  Landlord shall have no obligation to provide interior design services, the burden for which shall rest solely with Tenant.

 

2

 

EXHIBIT E

BUILDING STANDARD CONSTRUCTION ITEMS

Partitions:

	
 
	
•
	
2 1/2” wide, 20 gauge metal studs, 24” on center with 1/2” gypsum wall board

Interior Doors and Frames:

	
 
	
•
	
One door, frame and hardware set per 250 square feet of usable space

	
 
	
•
	
Door and Frame Construction:  8'-0” x 3'-0” x 1 3/4” solid core flush wood door with oak veneer faces and hollow metal 16 gauge knock down frames

Hardware: 

	
 
	
•
	
Hinges - 4 ea., Stanley, F179 Series, 4 1/2 x 4 1/2”, US 26D finish (or comparable)

	
 
	
•
	
Passage Set - 1 ea., Schlage “S” Series Lever handle, US 26D finish (or comparable)

	
 
	
•
	
Door Stop - 1 ea., Ives, floor mounted, #436, US 26D finish (or comparable)

	
 
	
•
	
Silencers - 3 ea., Ives #20

	
 
	
•
	
Closer - where required by code

Flooring and Base:

	
 
	
•
	
Cut Pile Carpet; 30 oz., Shaw Commercial Carpets (or comparable)

	
 
	
•
	
Loop Pile Carpet; 26 oz., Karastan/Bigelow (or comparable)

	
 
	
•
	
Vinyl Composition Tile (VCT); 12” x 12” x 1/8” Tarkett “Basics”

	
 
	
•
	
Vinyl Base; 4” vinyl base, cove edge at vinyl flooring, straight edge at carpeted areas, Nafco Supreme (or comparable)

Ceiling

	
 
	
•
	
Standard ceiling height 8'-3” +/-, subject to existing building systems

	
 
	
•
	
Armstrong Fissured Tegular Minatone, 2'x2' lay-in No. L705A 

Painting:

	
 
	
•
	
Walls; primed and 1 coat (flat)

	
 
	
•
	
Frames; primed and 2 coats (semi-gloss)

	
 
	
•
	
Doors; 3 coats polyurethane

Lighting Fixtures:

	
 
	
•
	
One fixture per 100 square feet of usable space

	
 
	
•
	
Type of fixture:  Fluorescent 18 cube;  2' x 4' lay in, 3 bulb fluorescent fixture

	
 
	
•
	
One wall switch per room or 10 ceiling fixtures

Convenience Outlets:

	
 
	
•
	
One standard, white or ivory, duplex electrical receptacle as required by code.

Air Difusers:

	
 
	
•
	
As required to provide 1 CFM per usable square foot.acer-ex106_121.htm

 

Exhibit 10.6

 

 

TRIPLE NET LEASE

1000 WALL

 

 

 

Between:

 

 

 

EASTERN WESTERN CORP.

(“Landlord”)

 

 

 

And

 

 

ACER THERAPEUTICS INC.

(“Tenant”)

 

 

 

 

Dated April 1, 2018

 

 

 

 

 

 

 

 

 

 

 

Table of Contents

	
 
	
 
	
Page

	
1.
	
TERM.
	
4

	
2.
	
RENT.
	
4

	
2.1
	
Base Rent.
	
5

	
3.
	
SECURITY DEPOSIT.
	
5

	
4.
	
ADDITIONAL RENT.
	
5

	
4.1
	
Operating Expenses.
	
5

	
4.2
	
Property Taxes and Insurance.
	
6

	
4.3
	
Payment of Operating Expenses, Taxes ad Insurance.
	
6

	
5.
	
INSURANCE; INDEMNITY
	
6

	
5.1
	
Insurance.
	
6

	
5.2
	
Increases in Premiums.
	
7

	
5.3
	
Indemnity.
	
7

	
5.4
	
Tenant’s Insurance.
	
7

	
6.
	
USE OF PREMISES.
	
8

	
7.
	
TENANT IMPROVEMENTS AND ALTERATIONS.
	
9

	
8.
	
REPAIRS AND MAINTENANCE.
	
10

	
8.1
	
Landlord’s Responsibilities.
	
10

	
8.2
	
Tenant’s Responsibilities.
	
10

	
8.3
	
Inspections.
	
11

	
8.4
	
Landlord’s Work.
	
11

	
9.
	
LIENS; TENANT’S TAXES.
	
11

	
10.
	
UTILITIES.
	
11

	
11.
	
ICE, SNOW, AND DEBRIS.
	
11

	
12.
	
WAIVER OF SUBROGATION; SPECIAL OR CONSEQUENTIAL DAMAGES.
	
12

	
13.
	
INJURY TO TENANT’S PROPERTY.
	
12

	
14.
	
DAMAGE OR DESTRUCTION.
	
12

	
14.1
	
Partial Destruction.
	
12

	
14.2
	
Substantial Damage.
	
12

	
14.3
	
Restoration.
	
12

	
15.
	
EMINENT DOMAIN.
	
13

	
15.1
	
Partial Taking.
	
13

	
15.2
	
Substantial taking of the Property.
	
13

	
15.3
	
Substantial Taking of Premises.
	
13

	
15.4
	
Definition.
	
13

	
16.
	
BANKRUPTCY.
	
13

	
17.
	
DEFAULT.
	
14

	
18.
	
REMEDIES ON DEFAULT.
	
14

	
19.
	
SURRENDER AT EXPIRATION.
	
15

	
19.1
	
Condition of Premises.
	
15

	
19.2
	
Fixtures.
	
16

	
19.3
	
Holdover.
	
16

	
20.
	
ASSIGNMENT AND SUBLETTING.
	
16

	
20.1
	
Landlord’s Consent.
	
16

	
20.2
	
Payment to Landlord and Termination of Lease
	
17

	
21.
	
SUBORDINATION.
	
17

	
22.
	
ESTOPPEL CERTIFICATE.
	
17

	
23.
	
PERFORMANCE BY LANDLORD.
	
18

	
24.
	
LANDLORD’S RIGHT TO CURE DEFAULT.
	
18

	
25.
	
INSPECTION.
	
18

	
26.
	
FOR SALE AND RENT SIGNS.
	
18

	
27.
	
ATTORNEY’S FEES.
	
18

	
28.
	
NOTICES.
	
18

 

 

	
29.
	
BROKERS.
	
19

	
30.
	
LATE CHARGES.
	
19

	
31.
	
NO PERSONAL LIABILITY.
	
19

	
32.
	
MISCELLANEOUS PROVISIONS.
	
19

	
33.
	
EXHIBITS.
	
20

 

 

 

 

 

SUMMARY OF BASIC LEASE TERMS

The following is a summary of the basic terms contained in this Lease.  In the event of any conflict between any provision contained in this Summary and a provision contained in the balance of the Lease, the latter shall control.

 

	
1.
	
Name of Landlord:
	
 
	
Eastern Western Corp.

	
2.
	
Address for Notices to Landlord:
	
 
	
 

	
 
	
 
	
 
	
PO Box 3228

	
 
	
 
	
 
	
Portland, OR 97208-3228

	
 
	
 
	
 
	
 

	
3.
	
Address for Rent Payments:
	
 
	
Eastern Western Corp.

	
 
	
 
	
 
	
PO Box 3228

	
 
	
 
	
 
	
Portland, OR 97208-3228

	
 
	
 
	
 
	
 

	
4.
	
Name of Tenant and Address of Premises:
	
 
	
Acer Therapeutics Inc.

	
 
	
 
	
 
	
1000 NW Wall Street #220

	
 
	
 
	
 
	
Bend, OR 97701

	
 
	
 
	
 
	
 

	
5.
	
Address for Notices to Tenant:
	
 
	
Chris Schelling

	
 
	
 
	
 
	
Acer Therapeutics Inc.

	
 
	
 
	
 
	
1000 NW Wall Street #220

	
 
	
 
	
 
	
Bend, OR 97701

	
 
	
 
	
 
	
 

	
6.
	
Trade Name under Which Tenant Will Operate at Premises:
	
 
	
ACER Therapeutics Inc.

	
 
	
 
	
 
	
 

	
7.
	
Business to Be Conducted By Tenant at Premises:
	
 
	
General Office

	
 
	
 
	
 
	
 

	
8.
	
Approximate Floor Area of Premises:
	
 
	
2,288 SF

	
 
	
 
	
 
	
 

	
9.
	
Lease Term:
	
 
	
36 Months

	
 
	
 
	
 
	
 

	
10.
	
Estimated Commencement Date:
	
 
	
April 1, 2018

	
 
	
 
	
 
	
 

	
11.
	
Base Rent:
	
 
	
$$4,004.00

	
 
	
 
	
 
	
 

	
12.
	
Percentage Rent Rate:
	
 
	
% of Gross Sales

	
 
	
 
	
 
	
 

	
13.
	
Landlord's Broker:
	
 
	
Nick Vaughn, Fratzke Commercial

	
 
	
 
	
 
	
 

	
14.
	
Tenant's Broker:
	
 
	
Brian Fratzke, Fratzke Commercial

	
 
	
 
	
 
	
 

	
15.
	
Security Deposit:
	
 
	
$2,500.00

 

 

 

 

 

 

1000 WALL

TRIPLE NET (NNN) LEASE

thIS LEASE is entered into effective 1st day of April, 2018, between Eastern Western Corp, an Oregon corporation (“Landlord”), and Acer Therapeutics Inc. (“Tenant”).  Landlord owns that certain building and other improvements known as 1000 Wall (the “Building”) on that certain property located at 1000 NW Wall Street and 130-180 NW Oregon Avenue, City of Bend, Deschutes County, State of Oregon (the “Property”). Landlord hereby leases to Tenant and Tenant hereby leases from Landlord certain space on the Property located at Suite #220 consisting of approximately 2,288 rentable square feet as outlined on the attached Exhibit A (the “Premises”) on the terms and conditions set forth in this Lease.

1.TERM.  

The term of this Lease (the “Term”) shall be for a period of 36 months, commencing on the first to occur of the following dates: (a)April 1, 2018  ; (b) the date on which Tenant begins to transact business on, at, or from the Premises; or (c) one day after Landlord has delivered possession of the Premises to Tenant with any work to be performed by Landlord in the Premises (as agreed by Landlord in an exhibit attached to this Lease, if any) substantially completed (the “Commencement Date”). Tenant’s Base Rent shall commence on April 1, 2018.  If applicable, Tenant shall complete any work required in the Premises, and approved by Landlord pursuant to Section 7, within days after Landlord delivers possession of the Premises to Tenant.  If the first day of the Term shall be a day other than the first day of a calendar month, then the Term shall be deemed extended by the number of days between the Commencement Date of this Lease and the first day of the first calendar month thereafter, so that the Term shall expire at the end of a calendar month.  In the event Landlord allows Tenant the right to early possession of the Premises for the purpose of installation of Tenant’s improvements to the Premises or for other purposes, then Tenant’s entry into the Premises shall be subject to all terms and conditions of this Lease except the payment of Rent.  Tenant’s entry shall mean entry by Tenant, its officers, contractors, employees, licensees, agents, servants, guests, invitees, and visitors.  If Landlord, for any reason, cannot deliver possession of the Premises on the estimated commencement date set forth in the Summary of Basic Lease Terms (the “Estimated Commencement Date”), this Lease shall not be void or voidable, nor shall Landlord be liable to Tenant for any loss or damage resulting from such delay.  In that event, however, Landlord shall deliver possession of the Premises as soon as practicable.  If Landlord is delayed in deliver possession to Tenant for any reason attributable to Tenant, this Lease shall commence on the Estimated Commencement Date set forth in the Summary of Basic Lease Terms. 

2.RENT.  

Beginning on the Commencement Date and continuing during the entire Term, Tenant shall pay Landlord as rent for each “Lease Year” the “Base Rent” as defined in this Section and all “Additional Rent” (as defined in Section 4).  The term “Lease Year” shall mean the period from the Commencement Date through the first December 31st following the Commencement Date, January 1st through December 31st for each subsequent full calendar year during the Term, and January 1st to the end of the Term for the final Lease Year.  All Rent shall be paid when due without notice, offset, or deduction or for any reason. 

4 | 1000 WALL LEASE AGREEMENT

 

2.1Base Rent.  

The minimum monthly rent during the Term (“Base Rent”) is outlined in the Summary of Basic Lease Terms.  Base Rent shall be paid in advance on or before the first day of each calendar month during the Term, except for the first calendar month.  Upon execution of this Lease, Tenant shall pay to Landlord Base Rent for the first full calendar month of the Term.  If the first month of the Term shall be a partial month, Base Rent shall be prorated on a daily basis, based on a 30 day month, and the amount due for such partial month shall be paid on or before the first day of the first full calendar month following the Commencement Date.

 

		
	
Months
	
Base Rent / Month 

	
1-12
	
$4004.00

	
13-24
	
$4124.12

	
25-36
	
$4247.84

Plus NNN

(a)General.  All references to “Rent” or “Rental” in this Lease shall mean Base Rent, Additional Rent and all other payments required of Tenant under this Lease unless otherwise expressly specified and all payments required by Tenant under this Lease shall be deemed “Rent.

(b)Place of Payment.  Tenant shall pay Rent and other amounts required to be paid by Tenant hereunder to Landlord at the address for Landlord set forth on the last page of this Lease, or at such other place as Landlord may from time to time designate in writing.

3.SECURITY DEPOSIT.  

Upon execution of this Lease, Tenant shall pay to Landlord a sum equal to the amount set forth on the Summary of Basic Lease Terms, as security for the full and faithful performance by Tenant of all of the covenants and terms of this Lease required to be performed by Tenant.  Such security deposit shall be returned to Tenant after the expiration of this Lease provided Tenant has fully and faithfully carried out Tenant’s entire obligation hereunder, including the payment of all amounts due to Landlord hereunder and the surrender of the Premises to Landlord in the condition required by this Lease.  However, Landlord, at its option, may apply such sum on account of the payment of the last month’s Base Rent or other unpaid Tenant obligations.  Such sum may be commingled with other funds of Landlord and shall not bear interest.  In the event of a sale of the Property, Landlord shall transfer the security deposit to the purchaser to be held under the terms of the Lease, and Landlord shall thereupon be released from all liability for the return of the security deposit.  Tenant agrees to look solely to the new landlord for the return of the security deposit.

4.ADDITIONAL RENT.

4.1Operating Expenses.  

In addition to Base Rent, Tenant shall pay to Landlord a portion of the Operating Expenses incurred by Landlord in connection with the Property.  The term “Operating Expenses” shall mean all expenses paid or incurred by Landlord or on Landlord’s behalf, as reasonably determined by Landlord to be necessary or appropriate for the efficient operation, management, maintenance, and repair of the land and the Building.  Tenant shall pay their pro-rata share of those Operating Expenses applicable to the land and Building in general. Landlord shall allocate Operating Expenses applicable to the land and the Building in general, as Landlord determines is reasonable.  Without limiting the generality of the foregoing, Operating Expenses shall specifically include the management fee charged by Landlord’s managing agent.

5 | 1000 WALL LEASE AGREEMENT

 

4.2Property Taxes and Insurance.  

In addition to Base Rent, Tenant shall pay their pro-rata share of all real property taxes and assessments levied, assessed or imposed during the Term upon the Property (”Taxes”) and their pro-rata share of the cost of insurance provided by Landlord pursuant to Section 5.1 (“Insurance”).  Tenant shall pay to Landlord an amount each month, which is equal to one-twelfth of the estimated annual Taxes and Insurance together with Tenant’s payments of Operating Expenses, as provided in Section 4.3) below.  If, during the Term, the voters of the state in which the Premises are located or the state legislature enacts a real property tax limitation, then any substitute taxes, in any name or form, which may be adopted to replace or supplement real property taxes shall be added to Taxes for purposes of this Section 4.2.  Should there be in effect during the Term any law, statute, or ordinance which levies, assesses, or imposes any tax (other than federal or state income tax) upon rents, Tenant shall pay such taxes as may be attributable to the Rents under this Lease or shall reimburse Landlord for any such taxes paid by Landlord within ten days after landlord bills Tenant for the same.

4.3Payment of Operating Expenses, Taxes and Insurance.  

Landlord shall notify Tenant of Tenant’s required estimated monthly payments of Operating Expenses, Taxes, and Insurance.  Beginning on the Commencement Date, and continuing throughout the Term, Tenant shall make such monthly payment on or before the first day of each calendar month.  Landlord may, from time to time, by written notice to Tenant, change the estimated monthly amount to be paid.  No interest or earnings shall be payable by Landlord to Tenant on any amount paid under this Section 4, and Landlord may commingle such payments with other funds of Landlord.  Landlord shall, within 90 days after the close of each calendar year, deliver to Tenant a written statement setting forth the actual Operating Expenses, Taxes and Insurance for the prior year together with a computation of the charge or credit to Tenant of any difference between the actual cost and the estimated cost paid by Tenant for such period; and any such difference shall be paid or reimbursed, as applicable, within 10 days after Landlord gives Tenant notice thereof.  If Tenant has any objections to the annual statement made by landlord, such objections shall be made in writing given to landlord within 30 days after the statement is submitted to Tenant.  If no objections are made within such time period, the annual statement shall be conclusive and binding on Tenant.  If Tenant desires to review any of Landlord’s records pertaining to Operating Expenses, Taxes or Insurance, Tenant may do so after reasonable prior notice given to Landlord, but no more often that once during any calendar year.  Such review shall take place where such records are kept, and shall be conducted by a certified public accountant chosen by Tenant subject to landlord’s prior written approval, which shall not be unreasonably withheld.  Tenant shall pay all costs of such review including without limitation reimbursement for time incurred by landlord’s representatives and photocopy charges.

5.INSURANCE; INDEMNITY

5.1Insurance.  

During the Term, Landlord shall maintain in full force a policy or policies of standard multi-peril insurance covering the Building and other improvements (exclusive of Tenant’s trade fixtures, tenant improvements and other property) situated on the Property for the perils of fire, lightning, windstorm and other perils commonly covered in such policies.  Additionally, the perils of earthquake, landslide, flood, and/or other perils may be covered at the election of Landlord.  During the Term, Landlord shall maintain in full force a comprehensive liability insurance policy in amounts considered appropriate by Landlord insuring Landlord against liability for bodily injury and property damage occurring in, on or about the Property.  Landlord shall use its reasonable efforts to secure said insurance at competitive rates.

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5.2Increases in Premiums.  

This Lease is entered into on the basis that Tenant’s occupancy will not affect the Property’s classification for insurance rating purposes.  If Tenant’s initial intended use of the Premises results in higher insurance premiums for any buildings situated on the Property, Tenant shall pay for the increased costs of the premiums for insuring any such buildings against loss with standard extended overage endorsements during the Term.  If the insurance premiums on any such buildings are increased during the Term as a result of the installation of equipment on the Premises by Tenant, by reason of Tenant maintaining certain goods or materials on the Premises or as a result of other use or occupancy of the Premises by Tenant, Tenant shall pay the additional cost of the insurance for any such buildings (whether or not Landlord has consented to the activity resulting in the increased insurance premiums).  Tenant shall refrain from any activity in its use of the Premises which would make it impossible to insure the Premises or the buildings situated on the Property against casualty or which would increase the insurance rate of any such buildings or prevent Landlord from taking advantage of the ruling of the Insurance Rating Bureau of the state in which the Premises are situated or its successors allowing Landlord to obtain reduced premium rates for long term fire insurance policies, unless Tenant pays the additional cost of the insurance.  All of Tenant’s electrical equipment shall be U-L approved.  If Tenant installs any electrical equipment that overloads the lines in the Premises or in any such buildings, Tenant shall at its own expense make whatever changes are necessary to comply with the requirements of the Insurance underwriters and governmental authorities having jurisdiction.  Any insurance premiums to be paid by Tenant by reason of its initial intended use of the Premises or any increase in insurance premiums attributable to Tenant’s use or occupancy of the Premises during the Term shall be paid by Tenant to Landlord within thirty days after Landlord bills Tenant for the same.

5.3Indemnity.  

Tenant shall indemnify, defend, and save harmless the Landlord Parties from any and all liability, damage, expenses, attorneys’ fees, causes of actions, suits, claims or judgments, arising out of or connected with (i) the use, occupancy, management, or control of the Premises, (ii) any failure of Tenant to comply with the terms of this Lease, and (iii) the acts or omissions of Tenant, its agents, members, officers, directors, employees, customers or invitees; provided, however, that Tenant shall not be liable for claims caused by the sole negligence of Landlord.  Tenant shall, at its own cost and expense, defend any and all suits which may be brought against Landlord either alone or in conjunction with others upon any such above mentioned cause or claim, and shall satisfy, pay, and discharge any and all judgments that may be recovered against Landlord in any such action or actions in which Landlord may be a party defendant.  As used herein, “Landlord Parties” shall mean and refer to Landlord and its members, beneficiaries, owners, officers, directors, employees, agents, management agent, invitees and lenders. 

5.4Tenant’s Insurance.  

Tenant shall at its own expense during the Term carry in full force and effect a comprehensive public liability insurance policy including property and personal injury coverage, insuring the Premises and its contents, including any of Tenant’s leasehold improvements, with an insurance carrier satisfactory to Landlord, naming Landlord, Landlord’s management agent, and Landlord’s lender as additional insureds, with a combined single limit for bodily injury or property damage in an amount of not less than the greater of (a) $1,000,000, or (b) 1,000,000, per occurrence and in aggregate, insuring against and all liability of Tenant with respect to the Premises and under this Lease including without limitation Tenant’s indemnity obligations under this Lease, or arising out of the maintenance, use or occupancy of the Premises.  Tenant shall carry insurance, which fully covers repair and replacement of broken storefront windows, if any.  If engaged in the sale or distribution of alcoholic beverages, Tenant shall carry liquor liability insurance in a form and in such amounts satisfactory to Landlord.  All policies of insurance required to be carried hereunder shall provide that the insurance shall not be cancelable or modified without at least ten (10) days prior written notice to Landlord, shall be deemed primary and noncontributing with other insurance available to Landlord, and shall be issued by one or more insurance companies licensed to do business in the State of Oregon and reasonably acceptable to Landlord.  On or before the Commencement Date, Tenant shall furnish Landlord with a certificate or other acceptable evidence that such insurance is in effect.  Tenant shall also provide and maintain insurance to comply with Worker’s Compensation and Employer’s Liability Laws.

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6.USE OF PREMISES.  

The premises shall be used for the purposes described in the Summary of Basic Lease Terms and for no other purpose without Landlord’s written consent.  In connection with the use of Premises, Tenant shall:

6.1Conform to all applicable laws, statutes, rules, ordinances, orders, regulations and requirements of any public authority (“Laws”) affecting the Premises and the use of the Premises and correct, at Tenant’s own expense, any failure of compliance created through Tenant’s fault or by reason of Tenant’s use, unless such failure is due to Landlord’s default in the performance of the agreements set forth in this Lease to be kept and performed by Landlord.    Landlord represents to Tenant that there is no asbestos in the Building, and Landlord indemnifies Tenant from any liability arising out of the presence of asbestos in the Building.

6.2Refrain from any activity which would be reasonably offensive to Landlord, to other tenants in any buildings situated on the property, or to owners or users of the adjoining premises, or which would tend to create a nuisance or damage the reputation of the Premises or of any such buildings.  Without limiting the generality of the foregoing, Tenant shall not permit any noise or odor to escape or be emitted from the Premises nor permit the use of flashing (strobe) lights nor shall Tenant permit the sale or display of offensive materials as reasonably determined by Landlord;

6.3Refrain from loading the floors, electrical systems, plumbing systems, or heating, ventilating and air conditioning systems (“HVAC”), beyond the point considered safe by a competent engineer or architect selected by Landlord and refrain from using electrical, water, sewer, HVAC, and plumbing systems in any harmful way.  If Landlord employs an engineer, architect, electrical, or other consultant to determine whether Tenant's use of the Premises is in violation of this Section 6.3, Tenant shall pay the reasonable costs incurred in connection with that employment.  Tenant shall use hair interceptors, grease traps or other drain protection devices as needed to avoid such harmful use;

6.4Not permit any pets or other animals in the Premises except for Service Animals;

6.5Refrain from making any marks on or attaching any sign, insignia, antenna, window covering, aerial or other device to the exterior or interior walls, windows or roof of the Premises without the written consent of the Landlord, which consent shall not be unreasonably withheld.  Landlord need not consent to any sign, which fails to conform to the general design concept of the buildings situated on the Property, as established by Landlord. Notwithstanding Landlord's consent to any signs, Tenant shall (i) comply with all Laws related to such signs at its own cost and expense, and (ii) remove all such signs upon termination of the Lease and repair any damage to the Premises caused thereby, at Tenant's own cost and expense;

6.6Comply with any reasonable rules respecting the use of the Premises promulgated by Landlord from time to time and communicated to Tenant in writing.  Without limiting the generality of the foregoing, such rules may establish hours during which the common area shall be open for use, may regulate deliveries to the Premises and may regulate parking by employees.  Recognizing that it is in the best interests of all tenants to accommodate the parking needs of customers, Landlord reserves the right to require employees of Tenant to park in designated areas of the common area or to park outside of the common area if Landlord determines that the extent of employee parking is detrimental to the business of the tenants or any of them.  Tenant shall use its best efforts to complete, or cause to be completed, all deliveries, loading and unloading to the Premises by 9 a.m. each day, and to prevent delivery trucks or other vehicles serving the Premises from parking or standing in from of the locations of other tenants;

6.7Comply with any no smoking (and other health related) policies and procedures established by Landlord from time to time;

6.8Recognizing that it is in the interest of both Tenant and Landlord to have regulated hours of business, Tenant shall keep the Premises open for business and cause Tenant’s business to be conducted therein during those days and hours as is customary for businesses of like character in the city or county in which the Premises are situated, but in any event during those days and hours reasonably established by Landlord, except to the extent that the use of the Premises is interrupted or prevented by causes beyond Tenant’s reasonable control;

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6.9Not permit any cash, credit card, or coin-operated vending, novelty or gaming machines or equipment on the Premises without the prior written consent of Landlord; and not permit the use of any part of the Premises for a second-hand store, nor for an auction, distress or fire sale, or bankruptcy or going-out-of-business sale or the like;

6.10Refrain from violating or causing the violation of any exclusive use provision granted to any tenant or other occupant of the Property as to which Tenant has been given written notice;

6.11Not commit or suffer any harm to the Premises including without limitation the improvements thereon or any part thereof; and Tenant shall keep the Premises in a neat, clean, sanitary, and orderly condition;

6.12Refrain from any use of any area on the Property which is outside of the Premises unless such use is specifically permitted in writing by Landlord in advance; and

6.13Not generate, release, store, or deposit on the Premises any environmentally hazardous or toxic substances, materials, wastes, pollutants, oils, or contaminants, as defined by any federal, state, or local law or regulation, including, without limitation, petroleum products (collectively, “Hazardous Substance”).  Tenant shall indemnify, defend, and hold harmless Landlord from and against any and all claims, losses, damages, response costs and expenses of any nature whatsoever (including without limitation attorneys’, experts’, and paralegals’ fees) arising out of or in any way related to the generation, release, storage, or deposit of Hazardous Substances on the Premises by Tenant or any other person or entity other than Landlord on and/or after the date of this Lease.

6.14Tenant shall not install or display any sign visible from the exterior of the Premises without the Landlord's review and prior written consent as to design, size, location and color.  All signs installed or displayed by Tenant shall conform to Landlord's rules and regulations regarding signs and applicable Legal Requirements. All signage requests must be submitted with a sketch/mock-up to Landlord; only signage which has been approved by Landlord shall be installed. Tenant shall have ten (10) days to remove any non-approved signage upon Landlord’s request; should signage not be removed within said timeframe, Tenant shall be considered in default of the Lease.

7.TENANT IMPROVEMENTS AND ALTERATIONS.  

Except as specified in an exhibit attached to this Lease (if any), Tenant accepts the Premises in their as-is condition as of the Commencement Date and Tenant shall pay for all tenant improvements, whether the work is performed by Landlord or by Tenant.  If any improvements to the Premises or other work on the Premises by Tenant causes the need to comply with any Laws in areas outside of the Premises including without limitation the Americans with Disabilities Act or regulations pertaining to earthquake codes, Tenant shall pay the cost thereof as well.  Tenant shall make no improvements or alterations on the Premises of any kind, including the initial work to be performed by Tenant in the Premises, without the prior written consent of Landlord, which consent shall not be unreasonably withheld.  Prior to the commencement of any work by Tenant, Tenant shall first submit the following to Landlord and obtain Landlord’s written consent to all of the following which consent shall not be unreasonably withheld: Tenant’s plans and specifications; Tenant’s estimated costs; and the names of all of Tenant’s contractors and subcontractors. Landlord to approve, or provide Tenant Improvement comments back to Tenant within 20 days after submittal. If Landlord is to perform some or all of such work, Landlord shall have the right to require Tenant to pay for the cost of the work in advance or in periodic installments.  If the work is to be performed by Tenant, Landlord shall have the right to require Tenant to furnish adequate security to assure timely payment to the contractors and subcontractors for such work.  All work performed by Tenant shall be done in strict compliance with all applicable building, fire, sanitary, and safety codes, and other applicable laws, statutes, regulations, and ordinances, and Tenant shall secure all necessary permits for the same.  Tenant shall keep the Premises free from all liens in connection with any such work.  All work performed by the Tenant shall be carried forward expeditiously, shall not interfere with Landlord’s work or the work to be performed by or for other tenants, and shall be completed within a reasonable time.  Landlord or Landlord’s agents shall have the right at all reasonable times to inspect the quality and progress of such work.  All improvements, alterations and other work performed on the Premises by either Landlord or Tenant shall be the property of Landlord when installed, except for Tenant’s trade fixtures, and may not be removed at the expiration of this Lease unless the applicable Landlord’s consent specifically provides otherwise.  Notwithstanding Landlord’s consent to improvements 

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or alterations by Tenant, all such improvement, alteration or other work to be performed by Tenant shall be at the sole cost and expense of Tenant.  Tenant shall give Landlord not less than five (5) business days advance written notice of the date on which any construction will commence so as to give Landlord the opportunity to post a notice of non-responsibility.

8.REPAIRS AND MAINTENANCE.

8.1Landlord’s Responsibilities.  

The following shall be the responsibility of Landlord:

(a)Structural repairs and maintenance and repairs necessitated by structural disrepair or defects.

(b)Repair and maintenance of the exterior walls, roof, gutters, downspouts and the foundation of the Building.  This shall not include maintenance of the operating condition of doors and windows or replacement of glass, nor maintenance of the store front; 

(c)Maintenance of the HVAC system; and

(d)Repair of interior walls, ceilings, doors, windows, floors and floor coverings when such repairs are made necessary because of a failure of Landlord to keep the structure in repair as above provided in this Section 8.1.

(e)If Landlord elects to do so, the hiring of a qualified pest extermination company for regular extermination services.

The cost of such improvements shall be included in the Operating Expenses; provided, however, all capital expenses shall be amortized over their useful life, and only the portion attributable to a Lease Year shall be passed through to Tenant during the Lease Year.

8.2Tenant’s Responsibilities.  

The following shall be the responsibility of Tenant:

(a)The interior of the Premises including any interior decorating;

(b)All interior fixtures, including light fixtures and bulbs and bathroom fixtures and interior piping;

(c)Any repairs necessitated by the negligence of or use of the Premises by Tenant, its agents, employees and invitees and their use of the Premises;

(d)Maintenance and repair of the interior walls and floor coverings (both hard surfaces and carpeting);

(e)Any repairs or alterations required under Tenant’s obligation to comply with the laws and regulations as set forth in this Lease; and

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(f)All other repairs or maintenance to the Premises which Landlord is not expressly required to make under Section 8.1 above, which includes, without limiting the generality of the foregoing, the replacement of all glass which may be broken or cracked during the Term with glass of as good or better quality than that in use at the commencement of the Term, any store front within the Premises, wiring, plumbing, drainpipes, sewers, and septic tanks including without limitation, repairs outside of the Premises if the need for the repair arises from Tenant’s use of the Premises.  All of Tenant’s work shall be in full compliance with then-current building code and other governmental requirements.  

8.3Inspections.  

Landlord shall have the right to inspect the Premises at any reasonable time or times to determine the necessity of repair.  Whether or not such inspection is made, the duty of Landlord to make repairs as outlined above in any area in Tenant’s possession and control shall not mature until a reasonable time after Landlord has received from Tenant written notice of the necessity of repairs, except in the event emergency repairs may be required and in such event Tenant shall attempt to give Landlord appropriate notice considering the damages.  Except in the case of emergency, in which case no notice shall be required, Landlord shall provide Tenant with not less than one Business Day notice to Tenant prior to entering the Premises pursuant to this Section 8.3.

8.4Landlord’s Work. 

 All repairs, replacements, alterations or other work performed on or around the Premises by Landlord shall be done in such way as to interfere as little as reasonably possible with the use of the Premises by Tenant.  Tenant shall have neither right to an abatement of Rent nor any claim against Landlord for any inconvenience or disturbance resulting from Landlord’s performance of repairs and maintenance pursuant to this Section 8.

9.LIENS; TENANT’S TAXES.  

Tenant shall keep the Premises free from all liens, arising from any act or omission of Tenant or those claiming under Tenant.  Landlord shall have the right to post and maintain on the Premises or the Building such notices of non-responsibility as are provided for under the lien laws of the state of Oregon.  Tenant shall be responsible for and shall pay when due all taxes assessed during the Term against any leasehold or personal property of any kind owned by or placed upon or about the Premises by Tenant.

10.UTILITIES.  

Tenant shall pay promptly for all water and sewer facilities, gas and electrical services, including heat and light, garbage collection, recycling, and all other facilities and utility services used by Tenant or provided to the Premises during the Term.  If the heating and air-conditioning systems are not on separate meters, Tenant shall pay its proportionate share of such charges, as reasonably determined by Landlord, within ten days after billings therefore.  Tenant shall arrange for regular and prompt pickup of trash and garbage and shall store such trash and garbage in only those areas designated by Landlord.  However, if Landlord elects to arrange for garbage collection on a cooperative basis for Tenant and other tenants, Tenant shall pay its proportion share of the garbage collection charges, within ten days after billings therefor.  Tenant shall comply with any recycling programs required by any Law or reasonably required by Landlord.

11.ICE, SNOW, AND DEBRIS.  

Tenant shall keep the walks in front of the Premises, if any, free and clear of ice, snow, rubbish, debris, and obstructions.  Tenant shall save and protect the Landlord Parties from any injury whether to Landlord, to any Landlord Party or to Landlord’s property or to any other person or property caused by Tenant’s failure to perform Tenant’s obligations under this Section 11.  Tenant’s obligations under this Section 11 shall be performed at Tenant’s cost and expense.  Landlord reserves the right to cause the removal of ice, snow, debris and obstruction from the area in front of the Premises and Tenant shall pay the cost thereof within ten days after billing therefor.

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12.WAIVER OF SUBROGATION; SPECIAL OR CONSEQUENTIAL DAMAGES.  

Neither party shall be liable to the other for any loss or damage that would be covered by any insurance policy required to be carried hereunder.  All claims or rights of recovery for any and all such loss or damage, however caused, are hereby waived.  Without limiting the generality of the foregoing, said absence of liability shall exist whether or not such loss or damage is caused by the negligence of either Landlord or Tenant or by any of their respective agents, servants or employees.  In no event shall Landlord or Tenant be liable for any special or consequential damages.

13.INJURY TO TENANT’S PROPERTY.  

Landlord shall not be liable for any injury to the goods, stock, merchandise or any other property of Tenant or to any person in or upon the Premises or the leasehold improvements in the Premises resulting from fire or collapse of the Building or any portion thereof or any other cause, including but not limited to damage by water or gas, or by reason of any electrical apparatus in or about the Premises. With the exception for Landlords gross negligence or willful misconduct.  Tenant is responsible for carrying insurance to cover the risks described in this Section.

14.DAMAGE OR DESTRUCTION.

14.1Partial Destruction.  

If the Premises shall be partially damaged by fire or other cause, and Section 14.2 below does not apply, the damages to the Property shall be repaired by Landlord, and all Base Rent until such repair is completed shall be abated proportionately according to the part of the Premises which is un-useable by Tenant, except when such damage occurs because of the fault of Tenant in which case there shall be no abatement.  Landlord shall bear the cost of such repairs unless the damage occurred from a risk which would not be covered by a standard fire insurance policy with an endorsement for extended coverage, including sprinkler leakage, and the damage was the result of the fault of Tenant, in which event Tenant shall bear the expense of the repairs.

14.2Substantial Damage.  

If the buildings situated on the Property or the Building or the Premises, or any of them, are 50% or more destroyed during the Term by any cause, Landlord may elect to terminate the Lease as of the date of damage or destruction by notice given to Tenant in writing no more than 45 days following the date of damage.  In such event all rights and obligations of the parties shall cease as of the date of termination.  In the absence of an election to terminate, Landlord shall proceed to restore the Premises, if damaged, to substantially the same form as prior to the damage or destruction, so as to provide Tenant useable space equivalent in the quantity and character to that which existed before the damage or destruction.  Work shall be commenced as soon as reasonably possible, and thereafter proceed with diligence, except for work stoppages on account of matters beyond the reasonable control of Landlord.  From the date of damage until the Premises are restored or repaired, Base Rent shall be abated or apportioned according to the part of the Premises useable by Tenant, unless the damage occurred because of the fault of the Tenant in which case there shall be no abatement.  Landlord shall bear the cost of such repairs unless the damage occurred from a risk which is not covered by the insurance policies carried by Landlord, and the damage was the result of the fault of Tenant, in which event Tenant shall bear the expense of the repairs.

14.3Restoration.  

If the Premises are to be restored by Landlord as provided in this Section 14, Tenant, at its expense, shall be responsible for the repair and restoration of all items which were initially installed at the expense of Tenant (whether the work was done by Landlord or Tenant) or for which an allowance was given by Landlord to Tenant, together with Tenant’s stock in trade, trade fixtures, furnishings, and equipment; and Tenant shall commence the installation of the same promptly upon delivery to it of possession of the Premises, and Tenant shall diligently prosecute such installation to completion.

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15.EMINENT DOMAIN.

15.1Partial Taking.  

If a portion of the Premises is condemned and neither Section 15.2 nor Section 15.3 apply, the Lease shall continue in effect.  Landlord shall be entitled to all the proceeds of condemnation, and Tenant shall have no claim against Landlord as a result of condemnation.  Landlord shall proceed as soon as reasonably possible to make such repairs and alterations to the Premises as are necessary to restore the remaining Premises to the condition as similar as reasonably practicable to that existing at the time of condemnation.  Base Rent shall be abated to the extent that the Premises are untenantable during the period of alteration and repair.  After the date on which title vests in the condemning authority, Base Rent shall be reduced commensurately with the reduction in value of the Premises as an economic unit on account of the partial taking.

15.2Substantial taking of the Property.  

If a condemning authority takes any substantial part of the Property or any substantial part of the Building, the Lease shall, at the option of Landlord, terminate as of the date title vests in the condemning authority.  In such event all rights and obligations of the parties shall cease as of the date of termination.  Landlord shall be entitled to all of the proceeds of condemnation, and Tenant shall have no claim against Landlord as a result of the condemnation.  Tenant shall be free to make a separate claim for its moving expenses and lost trade fixtures so long as such claim does not interfere with or reduce Landlord’s claim or award.

15.3Substantial Taking of Premises.  

If a condemning authority takes all of the Premises or a portion sufficient to render the remaining Premises reasonably unsuitable for Tenant’s use, the Lease shall terminate as of the date title vest in the condemning authority.  In such event all rights and obligations of the parties shall cease as of the date of termination.  Landlord shall be entitled to all of the proceeds of condemnation, and Tenant shall have no claim against Landlord as a result of the condemnation.

15.4Definition.  

Sale of all or any part of the Premises to a purchaser with the power of eminent domain in the face of a threat or probability of the exercise of the power shall be treated for the purpose of this Lease as taking by condemnation.

16.BANKRUPTCY.  

Subject to Section 17, this Lease shall not be assigned or transferred voluntarily or involuntarily by operation of law.  It may, at the option of Landlord, be terminated, if Tenant be adjudged bankrupt or insolvent, or makes an assignment for the benefit of creditors, or files or is a party to the filing of a petition in bankruptcy, or in case a receiver or trustee is appointed to take charge of any of the assets of Tenant or sublessees or assignees in or on the Premises, and such receiver or trustee is not removed within 30 days after the date of his appointment, or in the event of judicial sale of the personal property in or on the Premises upon judgment against Tenant or any sublessees or assignees hereunder, unless such property or reasonable replacement therefor be installed on the Premises within ten days after such judicial sale.  To the extent permitted by law, this Lease or any sublease hereunder shall not be considered as an asset of a debtor-in-possession or an asset in bankruptcy, insolvency, receivership, or other judicial proceedings.  This Lease shall be considered a lease of real property in a multi-tenanted building within the meaning of Section 365(b)(3) of the US Bankruptcy Code.

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17.DEFAULT.  

The following shall be events of default:

17.1Failure of Tenant to pay any Rent when due or failure of Tenant to pay any other charge required under this Lease after ten (10) days after it is due.

17.2Failure of Tenant to execute the documents described in Section 21 or 22 within the time required under such Sections; failure of Tenant to provide or maintain the insurance required of Tenant pursuant to Section 5.3; or failure of Tenant to comply with any Laws as required pursuant to Section 6 within 24 hours after written demand by Landlord.

17.3Failure of Tenant to comply with any term or condition or fulfill any obligation of this Lease (other than the failures described in Sections 17.1 or 17.2 above) within thirty (30) days after written notice by Landlord specifying the nature of the default with reasonable particularity.  If the default is of such nature that it cannot be completely remedied within the thirty (30) day period, this provision shall be complied with if Tenant begins correction of the default within the thirty (30) day period and thereafter proceeds with reasonable diligence and in good faith to effect the remedy as soon as practicable.  Landlord shall not be obligated to give written notice for the same type of default more than twice during the term of this Lease; at Landlord’s option, a failure to perform an obligation after the second notice shall be an automatic event of default, without notice or any opportunity to cure.

17.4The abandonment of the Premises by Tenant or the failure of Tenant for fifteen (15) days or more to occupy the Premises for one or more of the designated purposes of this Lease unless such failures is excused under other provisions of this Lease.

17.5The bankruptcy or insolvency of Tenant or the occurrence of other acts specified in Section 16 of this Lease which give Landlord the option to terminate.

18.REMEDIES ON DEFAULT.  

In the event of a default, Landlord may, at Landlord’s option, exercise any one or more of the rights and remedies available to a landlord in the state of Oregon to redress such default, consecutively or concurrently, including the following:

18.1Landlord may elect to terminate Tenant’s right to possession of the Premises or any portion thereof by written notice to Tenant.  Following such notice, Landlord may re-enter, take possession of the Premises and remove any persons by legal action or by self-help with the use of reasonable force and without liability for damages.  

18.2Following re-entry by Landlord, Landlord may relet the Premises for a term longer or shorter than the Term and upon any reasonable terms, including the granting of rent concessions to the new tenant.  Landlord may alter; refurbish or otherwise changes the character or use of the Premises in connection with such reletting.  Landlord shall not be required to relet for any use or purpose, which Landlord may reasonably consider injurious to its property or to any tenant, which Landlord may reasonably consider objectionable.  No such reletting by Landlord following a default by Tenant shall be construed as an acceptance of the surrender of the Premises.  If rent received upon such reletting exceeds the Rent owed under this Lease, Tenant shall have no claim to the excess.

18.3Following re-entry Landlord shall have the right to recover from Tenant the following damages;

(a)All unpaid rent or other charges for the period prior to re-entry, plus interest at a rate equal to the lesser of:  (i) five percentage points in excess of the discount rate, including any surcharge on the discount rate, on 90-day commercial paper declared by the Federal Reserve Bank in the Federal Reserve district in which Bend, Oregon is located on the date the charge was due (the “Interest Rate”); or (ii) the maximum rate allowed by law.

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(b)An amount equal to the Rent lost during any period during which the Premises are not relet, if Landlord uses reasonable efforts to relet the Premises.  If Landlord lists the Premises with a real estate broker experienced in leasing commercial property in Central Oregon, such listing shall constitute the taking of reasonable efforts to relet the Premises.

(c)All costs incurred in reletting or attempting to relet the Premises, including but without limitation, the cost of cleanup and repair in preparation for a new tenant, the cost of correcting any defaults or restoring any unauthorized alterations, the cost of any tenant improvements necessary for a new tenants, and the amount of any real estate commissions or advertising expenses.

(d)The difference between the Rent reserved under this Lease and the amount actually received by Landlord after reletting, as such amounts accrue.

(e)Reasonable attorney’s fees incurred in connection with the default, whether or not any litigation is commenced.

18.4Landlord may sue periodically to recover damages as they accrue throughout the Term and no action for accrued damages shall be a bar to a later action for damages subsequently accruing.  To avoid a multiplicity of actions, Landlord may obtain a decree of specific performance requiring Tenant to pay the damages stated in Section 18.3 above as they accrue.  Alternatively, Landlord may elect in any one action to recover accrued damages plus damages attributable to the remaining Term equal to the difference between the Rent under this Lease and the reasonable rental value of the Premises for the remainder of the Term.

18.5In the event that Tenant remains in possession following default and Landlord does not elect to re-enter, Landlord may recover all back Rent and other charges, and shall have the right to cure any nonmonetary default and recover the cost of such cure from Tenant, plus interest from the date of expenditure at the Interest Rate.  In addition, Landlord shall be entitled to recover attorney’s fees reasonably incurred in connection with the default, whether or not litigation is commenced.  Landlord may sue to recover such amounts as they accrue, and no one action for accrued damages shall bar a later action for damages subsequently accruing.

18.6The foregoing remedies shall not be exclusive but shall be in addition to other remedies and rights provided under applicable law, and no election to pursue one remedy shall preclude resort to another remedy.

19.SURRENDER AT EXPIRATION.  

19.1Condition of Premises. 

 Upon expiration of the Term or earlier termination Tenant shall deliver all keys to Landlord and surrender the Premises broom clean and in substantially the same condition as existed at the commencement of the Lease, ordinary wear and tear excepted; provided, however, improvements and alterations constructed by Tenant shall not be removed or restored to the original condition unless the terms of Landlord’s consent provides otherwise or unless Landlord requests Tenant to remove all or any of such improvements or alterations, in which event Tenant shall remove the same and restore the Premises.  Depreciation and wear from ordinary use for the purpose for which the Premises were let need not be restored, but all repairs for which Tenant is responsible shall be completed to the latest practical date prior to such surrender.  Tenant’s obligations under this Section 19 shall be subject to the provisions of Section 14 relating to damages or destruction.

15 | 1000 WALL LEASE AGREEMENT

 

19.2Fixtures.

(a)All fixtures placed upon the Premises during the Term, other than Tenant’s trade fixtures, shall, at Landlord option, become the property of the Landlord.  Movable furniture, decorations, floor covering other than hard surface bonded or adhesively fixed flooring, curtains, drapes, blinds, furnishing and trade fixtures shall remain the property of Tenant if placed on the Premises by Tenant; provided, however, if Landlord granted Tenant an allowance for improvements, installation, floor coverings, curtains, drapes, blinds or other items, such items shall at Landlord’s option become the property of Landlord notwithstanding the installation thereof by Tenant.

(b)If Landlord so elects, Tenant shall remove any or all fixtures, which would otherwise remain the property of Landlord, and shall repair any physical damage resulting from the removal.  If Tenant fails to remove such fixtures, Landlord may do so and charge the cost to Tenant with interest at the Interest Rate.  Tenant shall remove all furnishings, furniture, and furniture and trade fixtures, which remain the property of Tenant.  If Tenant fails to do so, this shall be an abandonment of the property, and Landlord may retain the property and all rights of Tenant with respect to it shall cease.  Landlord may effect a removal and place the property in public or private storage for Tenant’s account.  Tenant shall be liable to Landlord for the cost of removal, and transportation to storage, with interest on all such expenses from the date of expenditure at the Interest Rate.

(c)The time for removal of any property or fixtures which Tenant is required to remove from the Premises upon termination shall be as follows:

(1)On or before the date the Lease terminates because of expiration of the Term or because of a default under Section 18; or

(2)Within 30 days after notice from Landlord requiring such removal where the property to be removed is a fixture which Tenant is not required to remove except after such notice by Landlord, and such date would fall after the date on which Tenant would be required to remove other property.

19.3Holdover.  

If Tenant does not vacate the Premises at the time required, Landlord shall have the option to treat Tenant as a tenant from month-to-month, subject to all of the provisions of this Lease except the provision for the Term, and except the Base Rent provided herein shall increase 125% during the period of the month-to-month tenancy.  Failure of Tenant to remove fixtures, furniture, furnishings or trade fixtures which Tenant is required to remove under this Lease shall constitute a failure to vacate to which this Section 19.3 shall apply if the property not removed will interfere with occupancy of the Premises by another tenant or with occupancy by Landlord for any purpose including preparation for a new tenant.

20.ASSIGNMENT AND SUBLETTING.

20.1Landlord’s Consent.  

Tenant shall not, either voluntarily or by operation of law, sell, assign or transfer this Lease or sublet the Premises or any part thereof, or assign any right to use the Premises or any part thereof (each a “Transfer”) without the prior written consent of Landlord, which consent shall not be unreasonably withheld, and any attempt to do so without such prior written consent shall be void and at Landlord’s option, shall terminate this Lease.  If Tenant requests Landlord’s consent to any Transfer, Tenant shall promptly provide Landlord with a copy of the proposed agreement between Tenant and its proposed transferee and with all such other information concerning the business and financial affairs of such proposed transferee as Landlord may request.  Landlord may withhold such consent unless the proposed transferee (i) is satisfactory to Landlord as to credit, managerial experience, net worth, character and business or professional standing; (ii) is a person or entity whose possession of the Premises would not be inconsistent with Landlord’s commitments with other tenants or with the mix of uses Landlord desires at the Property; (iii) will occupy the Premises solely for the use authorized under this Lease; (iv) expressly assumes and agrees in writing to be bound by and directly responsible for all of Tenant’s obligations 

16 | 1000 WALL LEASE AGREEMENT

 

hereunder; and (v) will conduct a business which does not adversely impact the use of the Property’s common areas.  Landlord’s consent to any such Transfer shall in no event release Tenant from its liabilities hereunder nor relieve Tenant from the requirement of obtaining Landlord’s prior written consent to any further Transfer.  Landlord’s acceptance of rent from any other person shall not be deemed to be a waiver by Landlord of any provision of this Lease or consent to any Transfer.

20.2Payment to Landlord and Termination of Lease

(a)Landlord may, as a condition to its consideration of any request for consent to a proposed Transfer, impose a fee to cover Landlord’s administrative and legal expenses in connection therewith.  Such fee shall (i) be payable by Tenant upon demand, (ii) include all legal fees incurred by Landlord, and (iii) be retained by Landlord regardless of whether such consent is granted.

(b)If any such proposed Transfer provides for the payment of, or if Tenant otherwise receives, rent or other consideration for such Transfer which is in excess of the Rent and all other amounts which Tenant is required to pay under this Lease (regardless of whether such excess is payable on a lump sum basis or over a term), then in the event Landlord grants its consent to such Proposed Transfer, Tenant shall pay Landlord the amount of such excess as it is received by Tenant.  Any violations of this paragraph shall be deemed a material and non-curable breach of this Lease.

(c)If Tenant is a corporation, an unincorporated association, a partnership, a limited partnership, or a limited liability company, the transfer, assignment or hypothecation of any stock or interest in such entity in the aggregate in excess of twenty-five percent of the total prior to such event shall be deemed a Transfer of this Lease within the meaning and provision of this Section 20.

21.SUBORDINATION.  

Tenant’s interest hereunder shall be subject and subordinate to all mortgages, trust deeds, and other financing and security instruments placed on the Premises by Landlord from time to time (“Mortgages”) except that no assignment or transfer of Landlord’s rights hereunder to a lending institution as collateral security in connection with a mortgage shall affect Tenant’s right to possession, use and occupancy of the Premises so long as Tenant shall not be in default under any of the terms and conditions of this Lease.  The provisions of this Section 21 shall be self-operating.  Nevertheless, Tenant agrees to execute, acknowledge and deliver to Landlord within ten days after Landlord’s written request, an instrument in recordable form which expressly subordinates Tenant’s interest hereunder to the interests of the holder of any Mortgage, and which includes any other reasonable provisions requested by the holder or prospective holder of any Mortgage.  At Landlord’s request, Tenant shall furnish Landlord current balance sheets, operating statements, and other financial statements, in the form as reasonably requested by Landlord or by the holder or prospective holder of any Mortgage, certified by Tenant as accurate and current.  Tenant agrees to sign an authorization for Landlord to conduct a check of Tenant’s credit as requested by Landlord from time to time.

22.ESTOPPEL CERTIFICATE.  

Tenant shall from time to time, upon not less than  20 days prior notice, submit to Landlord, or to any person designated by Landlord, a statement in writing, in the form submitted to Tenant by Landlord, certifying that this Lease is unmodified and in full force and effect (or if there have been modifications, identifying the same by the date thereof and specifying the nature thereof) that to the knowledge of Tenant no uncured default exists hereunder (or if such uncured default does exist, specifying the same), the dates to which the Rent and other sums and charges payable hereunder have been paid, that Tenant has no claims against Landlord and no defenses or offsets to rental except for the continuing obligations under this Lease (or if Tenant has any such claims, defenses or offsets, specifying the same), and any other information concerning this Lease as Landlord reasonably requests.  A failure of Tenant to timely respond to such request shall constitute a default hereunder and shall constitute Tenant’s agreement with Landlord’s determination as to the matters described in this Section 22.

17 | 1000 WALL LEASE AGREEMENT

 

23.PERFORMANCE BY LANDLORD and Tenant. 

Landlord or Tenant shall not be deemed in default for the nonperformance or for any interruption or delay in performance of any of the terms, covenants and conditions of this Lease if the same shall be due to any labor dispute, strike, lockout, civil commotion or like operation, invasion, rebellion, hostilities, military or usurped power, sabotage, governmental regulations or controls, inability to obtain labor, services or materials, through acts of God, or other cause beyond the reasonable control of Landlord or Tenant, providing such cause is not due to the willful act or neglect of Landlord or Tenant.

24.LANDLORD’S RIGHT TO CURE DEFAULT.  

If Tenant shall fail to perform any of the covenants or obligations to be performed by Tenant, Landlord, in addition to all other remedies provided herein, shall have the option (but not the obligation) to cure such failure to perform after ten days’ written notice to Tenant (except in the case of emergency, in which case, no notice shall be required).  All of Landlord’s expenditures incurred to correct the failure to perform shall be reimbursed by Tenant upon demand with interest from the date of expenditure at the Interest Rate.  Landlord’s right to cure Tenant’s failure to perform is for the sole protection of Landlord and the existence of this right shall not release Tenant from the obligation to perform all of the covenants herein provided to be performed by Tenant, or deprive Landlord of any other right which Landlord may have by reason of default of this Lease by Tenant.

25.INSPECTION.  

Landlord, Landlord’s agents and representatives, shall have the right to enter upon the Premises at any time in the event of emergency and, in other events, at reasonable times after giving  prior 48 hour verbal notice (in person, not voicemail), followed by written notice for the purpose of inspecting the same, for the purpose of making repairs or improvements to the Premises or the Building, for showing the Premises during the final ninety (90) days of the Term, or for any other lawful purpose.

26.FOR SALE AND RENT SIGNS.  

During the period of ninety (90) days prior to the date for the termination of this Lease, Landlord may post on the Premises or in the Windows thereof signs of moderate size notifying the public that the Premises are “for sale” or “for rent” or “for lease”.

27.ATTORNEY’S FEES.  

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

28.NOTICES.  

Any notice required or permitted under this Lease shall be in writing and shall be deemed given when actually delivered or two (2) days after being deposited in the United States mail as certified or registered mail, addressed to the addresses set forth on the last page of this Lease or to such other addresses as may be specified from time to time by either of the parties in the manner above provided for the giving of notice.

18 | 1000 WALL LEASE AGREEMENT

 

29.BROKERS.  

Tenant covenants, warrants and represents that it has not engaged any broker, agent or finder who would be entitled to any commission or fee in connection with the negotiation and execution of this Lease except as set forth in the Summary of Basic Lease Terms attached hereto.  Tenant agrees to indemnify and hold harmless Landlord against and from any claims for any brokerage commissions and all costs, expenses and liabilities in connection therewith, including attorneys’ fees and expenses, arising out of any charge or claim for a commission or fee by any broker, agent or finder on the basis of any agreements made or alleged to have been made by or on behalf of Tenant except for brokers listed on the Summary of Basic Lease Terms.  The provisions of this Section 29 shall not apply to any brokers with whom Landlord has an express written brokerage agreement.  Landlord shall be responsible for payment of any such brokers.

30.LATE CHARGES. 

 Tenant acknowledges that late payment by Tenant to Landlord of any Rent or other charge due hereunder will cause Landlord to incur costs not contemplated by this Lease, the exact amount of which will be extremely difficult to ascertain.  Such costs may include, without limitation, processing and accounting charges and late charges, which may be imposed, on Landlord under the terms of any Mortgage.  Accordingly, if any Rent or other charge is not received by Landlord within ten (10) days after it is due; Tenant shall pay to Landlord a late charge equal to five percent (5%) of the overdue amount.  The parties hereby agree that such late charge represents a fair and reasonable estimate of the costs incurred by Landlord by reason of the late payment by Tenant.  Acceptance of any late charge by Landlord shall in no event constitute a waiver of Tenant’s default with respect to the overdue amount in question, nor prevent Landlord from exercising any of the other rights and remedies granted hereunder.

31.NO PERSONAL LIABILITY.  

The liability of Landlord to Tenant for any default by Landlord under the terms of this Lease shall be limited to the interest of Landlord in the Building and the Property, and Landlord shall not be personally liable for any deficiency.  This clause shall not be deemed to limit or deny any remedies which Tenant may have in the event of default by Landlord under this Lease which does not involve the personal liability of Landlord.

32.MISCELLANEOUS PROVISIONS.  

32.1This Lease does not grant any rights of access to light or air over any part of the Property.  Time is of the essence of this Lease.  

32.2The acceptance by Landlord of any Rent or other benefits under this Lease shall not constitute a waiver of any default.  Any waiver by Landlord of the strict performance of any of the provisions of this Lease shall not be deemed to be a waiver of subsequent breaches of the same character or of a different character, occurring either before or subsequent to such waiver, and shall not prejudice Landlord’s right to require strict performance of the same provision in the future or of any other provision of this Lease.

32.3This Lease contains the entire agreement of the parties.  

32.4The parties acknowledge and agree that any calculations of square footage in the Premises and on the Property are approximations.  

32.5No recalculation of square footage shall affect the obligations of Tenant under this Lease including without limitation the amount of base Rent or other Rent payable by Tenant under this Lease.  

32.6This Lease shall not be amended or modified except by agreement in writing, signed by the parties hereto.  

19 | 1000 WALL LEASE AGREEMENT

 

32.7Subject to the limitations on the assignment or transfer of Tenant’s interest in this Lease, this Lease shall be binding upon and inure to the benefit of the parties, their respective heirs, personal representatives, successors, and assigns.  

32.8No remedy herein conferred upon or reserved to Landlord or Tenant shall be exclusive of any other remedy herein provided or provided by law, but each remedy shall be cumulative. 

32.9In interpreting or construing this Lease, it is understood that Tenant may be more than one person, that if the context so requires, the singular pronoun shall be taken to mean and include the plural, and that generally all grammatical changes shall be made, assumed, and implied to make the provisions hereof apply equally to corporations, partnerships, and individuals.  

32.10Section headings are for convenience and shall not affect any of the provisions of this Lease. 

32.11 If any provision of this Lease or the applications thereof to any person or circumstance is, at any time or to any extent, held to be invalid or unenforceable, the remainder of this Lease, or the applications of such provision to persons or circumstances other than those to which it is held invalid or unenforceable, shall not be affected thereby, and each provision of this Lease shall be valid and enforceable to the fullest extent permitted by law.  

32.12All agreements (including, but not limited to, indemnification agreements) set forth in this Lease, the full performance of which is not required prior to the expiration or earlier termination of this Lease, shall survive the expiration or earlier termination of this Lease and be fully enforceable thereafter.  

33.EXHIBITS. 

The following Exhibits are attached hereto and incorporated as a part of this Lease:

 

	
 
	
Exhibit A
	
Premises

	
 
	
Exhibit B
	
Tenant Improvements

	
 
	
Exhibit C
	
Rules and Regulations

	
 
	
Exhibit D
	
Tenant’s Options

	
 
	
Exhibit E
	
Brokers

	
 
	
Exhibit F
	
Guaranty

	
 
	
Addendum A
	
Sustainability Addendum

 

IN WITNESS WHEREOF, this Lease may be executed in counterparts, each of which will be deemed an original, but all of which will constitute a single agreement.  Facsimile, scanned and emailed or electronic signatures will be treated as original signatures.  At the request of any party, an originally executed document will be mailed following the sending of any facsimile or scanned and emailed version.

 

	
 
	
 
	
LANDLORD:
	
 
	
 
	
 
	
TENANT:

	
 
	
 
	
 
	
 
	
 
	
 
	
 

	
 
	
 
	
Eastern Western Corp.
	
 
	
 
	
 
	
Acer Therapeutics Inc.

	
 
	
 
	
an Corporation
	
 
	
 
	
 
	
 

	
 
	
 
	
 
	
 
	
 
	
 
	
 

	
By:
	
 
	
/s/ Michael McGinley
	
 
	
By:
	
 
	
/s/ Chris Shelling

	
Name:
	
 
	
Michael E McGinley
	
 
	
Name:
	
 
	
Chris Schelling

	
Title:
	
 
	
President
	
 
	
Title:
	
 
	
CEO & Founder

	
Date:
	
 
	
3/29/2018
	
 
	
Date:
	
 
	
4/2/2018 6:21 AM PDT

 

 

20 | 1000 WALL LEASE AGREEMENT

 

EXHIBIT A
Premise

21 | 1000 WALL LEASE AGREEMENT

 

EXHIBIT C

Rules and Regulations

1.As used in these Rules and Regulations, "Tenant" means Tenant and all of its officers, owners, employees, agents, customers and invitees.

2.Sidewalks, halls, passages, exits, entrances, shall not be obstructed by Tenant or used by Tenant for any purpose other than access to and from the Premises.  

3.Tenant shall not go on the roof of any part of the building.  

4.No awning, canopy, or other projection of any kind, and no sign, poster, light or other material shall be installed on, over or around the windows and only such window coverings as are approved by Landlord shall be used in the Premises.

5.The Premises shall not be used for lodging or sleeping.  Unless specifically authorized in Tenant's lease, no cooking shall be done or permitted by Tenant on the Premises, except the preparation of coffee, tea, and similar items for Tenant and its employees, and use of a microwave oven.

6.Landlord will furnish Tenant with 2 sets of keys and access cards for the Building, elevators and Premises. There shall be a reasonable charge for additional keys and access cards, including a charge for replacements of lost keys.  No additional locking devices shall be installed on the Premises without the prior written consent of Landlord, and Tenant shall furnish Landlord with a key or access card for any such additional locking device. Tenant, upon termination of its tenancy, shall return to Landlord all keys and access cards.  Tenant will pay all reasonable charges imposed by Landlord for changing any locks or codes if necessitated by loss of keys or access cards.

7.Tenant shall not use or keep in the Premises or the Building any kerosene, gasoline, or other flammable or combustible fluid or materials or use any method of heating or air conditioning other than that supplied or approved in writing by Landlord.

8.In case of invasion, mob, riot, public excitement, or other circumstances rendering such action advisable in Landlord's opinion, Landlord reserves the right to prevent access to the Building by such action as Landlord may deem appropriate, including closing entrances to the Building; provided, however, that Landlord shall not be permitted to prevent access to the Building due to a labor disturbance.

9.All perimeter doors to the Building shall remain closed and securely locked at all times after regular Building hours.  The doors of the Premises shall remain closed and securely locked at such time as Tenant's employees leave the Premises, after regular Building hours.

10.The toilet rooms, toilets, urinals, wash bowls, and other apparatus in the Premises and the Building shall not be used for any purpose other than that for which they are intended.  No foreign substance of any kind shall be deposited therein, and any damage resulting from Tenant's misuse shall be paid for by Tenant.  Tenant may administer supervised urinalysis on a periodic basis in the toilet rooms and Tenant shall immediately clean the toilet room when necessary.  Landlord may clean the toilet room at Tenant's expense if necessary.

11.Except with the prior written consent of Landlord, the Premises shall not be used for manufacturing of any kind, or for any business or other activity other than that specifically permitted under Tenant's lease.

12.Tenant shall not install any radio, television, or similar antenna or aerial, nor any loudspeaker or other device, on the roof, exterior walls, or grounds of the Building without obtaining prior written consent from Landlord.

22 | 1000 WALL LEASE AGREEMENT

 

13.Tenant shall not use in the Premises or the Building any hand-truck not equipped with rubber tires and side guards, nor any other material-handling equipment not approved in writing by Landlord.  No vehicles of any kind shall be brought by Tenant into the Premises without Landlord's approval.

14.Tenant shall store its trash, garbage, and recycling within the Premises until removal as may be designated from time to time by Landlord.  No material shall be placed in the Building trash boxes or receptacles if such material may not be disposed of in the ordinary and customary manner in the Bend, Oregon metropolitan area without being in violation of any law or ordinance governing such disposal.  Tenant will participate in recycling programs instituted by Landlord from time to time.

15.All loading and unloading of merchandise, supplies, materials, garbage and refuse and delivery or removal of the same to or from the Premises shall be made only through such entryways and at such time as Landlord may designate.  Landlord shall be given prior notice of Tenant's intent to move any furniture, equipment or any heavy or bulky items into or from the Building.  Such moving shall be scheduled only with Landlord's consent and shall be subject to supervision by the Building manager.  Protective covers shall be used in elevator cabs when used for moving equipment or furniture.  Tenant shall be responsible for all damage to the Building resulting from moving activities.

16.Canvassing, soliciting, peddling, and distributing of handbills or other written material in the Building is prohibited, and Tenant shall cooperate to prevent same.

17.Tenant shall not permit the use or the operation of any vending or amusement machines on the Premises, including without limitation vending machines, video games, pinball machines, or pay telephones, without the prior written consent of Landlord.  However, Tenant shall be permitted to install inside its Premises snack and beverage vending machines for the use of Tenant's employees and invitees.

18.Landlord may direct the use of pest extermination at such intervals as Landlord may determine.

19.Tenant shall, immediately upon request from Landlord (which request need not be in writing), reduce its lighting in the Premises for temporary periods designated by Landlord, when required in Landlord's judgment to prevent overloads of the mechanical or electrical systems of the Building; provided, however, that Tenant shall not be required to reduce its lighting if such reduction would materially interfere with Tenant's use of the Premises for its business.

20.Employees of Landlord shall not perform any work for or on behalf of Tenant or do anything outside of their regular duties unless under special instructions from Landlord.

21.Smoking is prohibited in all areas of the Building and within fifteen (15) feet of all entrances/exits.

22.Tenant must provide, at its own expense, protection to the carpets from chair wheels or other abnormal wear, tear, or staining.  Tenant shall be responsible for replacing carpet where damage has occurred due to lack of such protection.  Tenant shall be responsible for heavy stain removal and periodic shampooing of carpet.  It is recommended that carpets be shampooed at least annually.

23.If Tenant elects to install a monitored security system within its Premises, neither the Landlord nor its contractors shall be held responsible for setting off the alarm mistakenly, or for any fines which may be levied.

24.The normal Building hours are from 7:00 AM to 6:00 PM Monday through Friday, except holidays.  Building holidays are New Year's Day; President's Day; Easter; Memorial Day; Independence Day; Labor Day; Thanksgiving and Christmas.

23 | 1000 WALL LEASE AGREEMENT

 

25.No pets shall be allowed in the Premises.

26.Tenant shall not annoy, obstruct or interfere with the rights of other tenants of the Building.  Tenant shall create no nuisance nor allow any objectionable fumes, noise or vibrations to be emitted from the Premises.  Tenant shall not conduct any activities that will in any manner degrade or damage the reputation of the Building.

27.During times other than normal Building hours, Tenant's employees, customers and invitees may be required to show identification in order to gain access to the Building.  Landlord may refuse access to the Building to anyone Landlord believes to be a threat to the Building or to the safety or its occupants.  Landlord shall have no liability for refusing access to any person.

28.Tenant shall comply with all fire, evacuation, and life safety plans and rules adopted by Landlord.

29.When using the Common Areas, Tenant and its employees, customers and invitees will behave in a manner appropriate for an office building, will observe common courtesies, will clean up their trash, and will refrain from behavior (including making noise) which disturbs tenants in adjacent areas.

30.Landlord may waive any one or more of these Rules and Regulations in favor of a particular Tenant or Tenants, but no such waiver by Landlord shall be construed as a waiver of these Rules and Regulations in favor of any other tenants, nor prevent Landlord from thereafter enforcing any such Rules and Regulations against any or all tenants of the Building.

31.These Rules and Regulations are in addition to, and shall not be construed in any way to modify, alter or amend, the conditions of Tenant's Lease.  In the event of a conflict between these Rules and Regulation and Tenant's Lease, the Lease shall govern.  

Landlord reserves the right to amend these Rules and Regulations and to make such other reasonable rules and regulations as in its judgment may from time to time be needed for the safety, care, and cleanliness of the Building and for the preservation of good order therein; provided, however that any such amendments or additions shall not modify, alter, or amend, in the whole or part, the terms, covenants, agreements, and conditions of Tenant's Lease.

32.Fratzke Commercial Real Estate Advisors, Inc., acted as a scrivener for this lease and provide no legal advice to either Tenant or Landlord.

 

 

24 | 1000 WALL LEASE AGREEMENT

 

EXHIBIT D

Tenant's Options

OPTIONS TO EXTEND LEASE.  

1.Subject to and upon the terms and conditions set forth below, Tenant will have options to extend the term of this Lease for up to two (2) additional period of three (3) years.   Tenant will also have a right of first refusal to lease Suite 202 also known as 210. 

2.Each of Tenant's options to extend must be exercised by written notice to Landlord no less than 180 days prior (a) to the end of initial term (in the case of the first option) or (b) the end of the then-current extension term.  

3.If Tenant has more than one option to renew, no option may be exercised for an extension unless any and all prior options have been exercised.

4.Tenant shall not be permitted to extend the term of this Lease pursuant to any of Tenant's options, and no extension will be effective, if:

a.Any Rent which is then due has not been paid as of the date of exercise of any option or as of the date the extended term is to begin; or

b.There exists any Event of Default by Tenant as of the date of exercise of any option or as of the date the extended term is to begin.  

5.Tenant's options are personal to Tenant and cannot be exercised by any successor, assignee or sublessee without the prior written consent of Landlord, which consent may be granted or withheld in Landlord's sole and unfettered discretion. Provided however that Tenant shall be permitted to assign the Lease to an affiliate or a permitted transferee.

6.Effective as of the date each extension term begins, the Base Rent provided for in this Lease will be adjusted to the then-current market rent for the Premises; provided, however, in no event will any such adjustment result in a reduction of the Base Rent.  If Landlord and Tenant cannot agree upon the amount of the adjusted Base Rent within 30 days after Tenant's notice of exercise of an option to extend, the issue will be submitted to a qualified, independent real estate appraiser (the "Appraiser") in the Bend, Oregon area for a final and binding determination.  Landlord will designate by written notice to Tenant three qualified, independent real estate appraisers to make the market rate determination.  Within ten (10) days of receipt of Landlord’s list, Tenant will choose one of the appraisers from such list to be the Appraiser and will give Landlord written notice of its selection.  If Tenant fails to timely select an Appraiser, Landlord may choose any one of the three included on the list.  Each of the parties will have 30 days after the effective date of Tenant's notice of selection, or Landlord’s selection if Tenant fails to timely elect, to submit its initial materials to the Appraiser.  Landlord and Tenant shall each provide copies to the other of the materials submitted to the Appraiser.  Each party will submit any response to the other party's materials within ten days after the effective date of transmission, and will provide the other with a copy of such materials also.  The Appraiser will notify Landlord and Tenant of his or her determination in writing. The costs of the Appraiser will be split between the parties.

25 | 1000 WALL LEASE AGREEMENT

 

EXHIBIT E

Brokers

 

 

 

	
A.
	
Landlord's Broker:

 

Name: Nick Vaughn

Company: Fratzke Commercial

Email:Nick@fratcommercial.com

Phone:541-610-8202

Fax:

Address:963 SW Simpson #220, Bend, OR 97701

 

 

	
B.
	
Tenant's Broker:

 

Name: Brian Fratzke

Company: Fratzke Commercial

Email: Brian@fratcommercial.com

Phone:541-306-4948

Fax:

Address: 963 SW Simpson #220, Bend, OR 97701

 

 

26 | 1000 WALL LEASE AGREEMENT

 

ADDENDUM A

Sustainability Addendum

1002 NW WALL STREET LLC, an Oregon limited liability company (“Landlord”) and Bounce USA LLC and Natural High Co Pty Ltd (“Tenant”) are parties to a lease agreement dated January 27th, 2015 (the “Lease”) to which this Sustainability Addendum (this “Addendum”) is attached.  

In order to reflect the interests of Landlord and Tenant in promoting environmental sustainability, and to establish their respective and continuing commitments to perform in accordance therewith (the “Sustainability Practices”), Landlord and Tenant hereby agree to be bound by the terms and conditions set forth in this Addendum.  Capitalized terms used in this Addendum and not otherwise defined shall have the meaning ascribed to such terms in the Lease.

1.EFFECT OF ADDENDUM. This Addendum modifies the Lease to which this Addendum is attached, and the terms hereof are incorporated into the Lease as if fully set forth therein.  In the event of an inconsistency between any term or condition contained in this Addendum and the Lease, the terms and conditions contained in this Addendum shall control.  

2.SUSTAINABILITY PRACTICES.  Landlord and Tenant are subject to the following Sustainability Practices applicable to the Premises:

 

	
 
	
☒ Sustainability analysis with local utility providers of available credits and programs.

	
 
	
☒ Pursuit of sustainability credits and governmental programs.

	
 
	
☒ Energy-efficient lighting.
	
☒ Low-flow toilet fixtures.

	
 
	
☒ Occupant-sensor water faucets.
	
☒ Bicycle parking.

	
 
	
☒ Environmentally-friendly cleaning products.
	
☒ Recycling program.

 

3.MAINTENANCE; REPAIRS; ALTERATIONS.  In addition to any obligations set forth in the Lease:  (a) Landlord and Tenant agree that all maintenance and repairs performed by either party shall be consistent with the above Sustainability Practices; (b) all alterations, additions, and improvements by either Landlord or Tenant (collectively, “Alterations”) shall also comply with the Sustainability Practices including, without limitation, the use of low- or no‐VOC paints, solvents and adhesives, recycling practices and other commercially reasonable “green” construction standards; and (c) all maintenance, repairs, and Alterations shall be performed in accordance with any applicable LEEDÒ, Energy StarÒ, or other sustainability certification that affects the Building, Center and/or Common Areas.  Copies of the sustainability certifications referenced in the preceding subsection (c) shall be made available to Tenant upon request.  No Alterations shall be performed by Tenant without Landlord’s prior written consent.  Further, any Alterations to the Premises installed by Tenant that Landlord requires Tenant to remove upon termination of the Lease shall be removed and disposed of in an environmentally sustainable manner so long as such removal can be accomplished at a commercially reasonable cost.

4.OPERATING EXPENSES.  In addition to the Operating Expenses described in the Lease, “Operating Expenses” shall also include all expenses paid or incurred by Landlord (or on Landlord’s behalf) as reasonably determined by Landlord to be necessary or appropriate for the implementation of sustainable practices (including the Sustainability Practices) in the operation of the Premises, Building, Center and Common Areas including, without limitation, modifications required to:  (a) reduce the use of energy, or to create onsite energy sources; (b) reduce the use of fresh water; (c) reuse storm water; (d) promote sustainable methods of transportation; (e) purchase energy manufactured from “green” or renewable sources for onsite consumption; and (f) other modifications required to achieve or maintain any applicable LEEDÒ, Energy StarÒ, or other sustainability certification.  If the Operating Expenses described above (the “Sustainable Operating Expenses”) do no fall within the definition of Operating Expenses set forth in the Lease, Tenant’s obligation to pay Tenant’s proportionate share of Sustainable Operating Expenses shall be limited to the following:  (i) for Sustainable Operating Expenses that constitute capital improvements, Tenant shall only be obligated to pay Tenant’s proportionate share of the amount which is the lesser of the savings reasonably calculated by Landlord to be achieve by such 

27 | 1000 WALL LEASE AGREEMENT

 

capital improvement or the total cost of the capital improvement amortized over the useful life of the improvement or otherwise in accordance with generally accepted accounting principles uniformly applied; and (ii) for Sustainable Operating Expenses that do not constitute capital improvements, Tenant’s proportionate share in any Operating Year shall not exceed five (5%) percent of Minimum Rent payable during such Operating Year.  Provided however that Tenant shall only be responsible for LEED and sustainability measure costs if such measures are cost-saving or cost-neutral, as evidenced in Landlord’s actual operating expense statements.

5.ASSIGNMENT; SUBLETTING.  Notwithstanding anything to the contrary contained in the Lease, Landlord shall have no obligation to approve any assignment or sublease in which the proposed use of the Premises will be contrary to the sustainability goals and provisions in this Addendum.  In addition to any and all other obligations in the Lease relating to assignment or subletting, Landlord’s consent to any proposed assignment or sublease is expressly conditioned on the proposed assignee or sublessee assuming, in writing, all of Tenant’s obligations in this Addendum.  

6.BREACH; REMEDIES.  In addition to the remedies provided in the Lease, upon a breach by either party of any of the terms of this Addendum, such party agrees to indemnify, defend, protect, and hold harmless the other, its managing agent, and its agents, employees, successors, and assigns, from any and all claims, judgments, damages, penalties, fines, costs, liabilities, and losses that arise during or after the term directly or indirectly such breach, including, without limitation, the loss of any environmental certification and tax credits.  The foregoing indemnity further includes, without limitation, all loss, cost, and expense of removing, remediating (regardless of the method of remediation employed), and disposing (in a manner complying with the Sustainability Practices) of materials and/or Alterations located at the Premises that are in violation of the terms of this Addendum and/or the Sustainability Practices.  The indemnification provisions of this Section 6 shall survive any termination of this Addendum or the Lease.

7.RULES AND REGULATIONS.  Landlord and Tenant agree that Landlord may amend the rules and regulations applicable to the Premises as frequently and as necessary to implement and maintain the sustainability goals and provisions in this Addendum.

 

28 | 1000 WALL LEASE AGREEMENT

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