Document:

Exhibit 10.9

 

COPLEY PLACE

 

BOSTON, MASSACHUSETTS

 

OFFICE LEASE

 

Between

 

COPLEY PLACE ASSOCIATES, LLC
 as Landlord

 

and

 

WAYFAIR LLC,
 as Tenant

 

DATED April 18, 2013

 

FROM THE OFFICE OF:

 

Goulston & Storrs, P.C.
 400 Atlantic Avenue
 Boston, Massachusetts 02110-3333

 

 

TABLE OF CONTENTS

 

	
 
    	
 
    	
Page
    
	
 
    	
 
    
	
ARTICLE 1. BASIC DATA
    	
5
    
	
1.01
    	
Date
    	
5
    
	
1.02
    	
Landlord
    	
5
    
	
1.03
    	
Present Mailing Address of   Landlord
    	
6
    
	
1.04
    	
Tenant
    	
6
    
	
1.05
    	
Present Mailing Address of   Tenant
    	
6
    
	
1.06
    	
Guarantor
    	
6
    
	
1.07
    	
Present Mailing Address of   Guarantor
    	
6
    
	
1.08
    	
Commencement Date
    	
6
    
	
1.09
    	
Rent Commencement Date
    	
6
    
	
1.10
    	
Termination Date
    	
6
    
	
1.11
    	
Base Rent
    	
6
    
	
1.12
    	
Operating Expense Base Year
    	
7
    
	
1.13
    	
Base Year Operating Expenses
    	
7
    
	
1.14
    	
Tax Base Year
    	
7
    
	
1.15
    	
Base Year Taxes
    	
7
    
	
1.16
    	
Tenant’s Proportionate Tax   Share
    	
7
    
	
1.17
    	
Tenant’s Proportionate   Expense Share
    	
7
    
	
1.18
    	
Use
    	
7
    
	
1.19
    	
Premises
    	
8
    
	
1.20
    	
Common Areas
    	
8
    
	
1.21
    	
Letter of Credit Amount
    	
9
    
	
1.22
    	
Brokers
    	
9
    
	
 
    	
 
    	
 
    
	
ARTICLE 2. HABENDUM; TERM
    	
9
    
	
 
    	
 
    
	
ARTICLE 3. POSSESSION
    	
9
    
	
3.01
    	
Rent Commencement
    	
9
    
	
3.02
    	
Early Entry
    	
9
    
	
3.03
    	
No Change in Lease Term
    	
10
    
	
3.04
    	
Appurtenant Rights
    	
10
    
	
3.05
    	
Roof Deck
    	
10
    
	
 
    	
 
    	
 
    
	
ARTICLE 4. BASE RENT
    	
11
    
	
 
    	
 
    
	
ARTICLE 5. ADDITIONAL RENT
    	
11
    
	
5.01
    	
Obligation as to Additional Rent
    	
11
    
	
5.02
    	
Definitions
    	
11
    
	
5.03
    	
Expense & Tax Adjustment
    	
16
    
	
5.04
    	
Adjustment for Services not Rendered by Landlord
    	
16
    
	
5.05
    	
Audit Rights
    	
17
    
	
5.06
    	
Billing for Electricity
    	
18
    
	
 
    	
 
    	
 
    
	
ARTICLE 6. USE OF PREMISES
    	
18
    
				

 

1

 

	
ARTICLE 7. CONDITION OF   PREMISES; LANDLORD’S WORK
    	
18
    
	
7.01
    	
Condition of Premises
    	
18
    
	
7.02
    	
Building Renovations
    	
19
    
	
7.03
    	
Landlord’s Work
    	
19
    
	
 
    	
 
    	
 
    
	
ARTICLE 8. SERVICES
    	
19
    
	
8.01
    	
List of Services
    	
19
    
	
8.02
    	
Landlord Repairs and Maintenance
    	
21
    
	
8.03
    	
Interruption of Services
    	
22
    
	
8.04
    	
Additional Services
    	
22
    
	
8.05
    	
Energy Conservation
    	
23
    
	
 
    	
 
    	
 
    
	
ARTICLE 9. COMPLIANCE WITH   LAWS; REPAIRS; HAZARDOUS MATERIALS
    	
23
    
	
9.01
    	
Compliance With Laws
    	
23
    
	
9.02
    	
Repairs
    	
24
    
	
9.03
    	
Hazardous Materials
    	
24
    
	
 
    	
 
    	
 
    
	
ARTICLE 10. ADDITIONS AND   ALTERATIONS
    	
25
    
	
10.01
    	
Consent Required
    	
25
    
	
10.02
    	
Improvements are Landlord’s Property
    	
26
    
	
10.03
    	
Lines
    	
27
    
	
10.04
    	
Specialty Alterations
    	
28
    
	
 
    	
 
    	
 
    
	
ARTICLE 11. COVENANT AGAINST   LIENS
    	
28
    
	
 
    	
 
    
	
ARTICLE 12. INSURANCE
    	
29
    
	
12.01
    	
Waiver of Subrogation
    	
29
    
	
12.02
    	
Coverage
    	
29
    
	
12.03
    	
Avoid Action Increasing Rates
    	
30
    
	
12.04
    	
Landlord’s Insurance
    	
31
    
	
 
    	
 
    	
 
    
	
ARTICLE 13. FIRE OR OTHER   CASUALTY
    	
31
    
	
13.01
    	
Effect of Casualty
    	
31
    
	
13.02
    	
Intentionally Omitted
    	
32
    
	
13.03
    	
Responsibility for Reconstruction of Improvements
    	
32
    
	
 
    	
 
    	
 
    
	
ARTICLE 14. WAIVER OF CLAIMS   -INDEMNIFICATION
    	
32
    
	
14.01
    	
Tenant’s Indemnification
    	
32
    
	
14.02
    	
Landlord’s Indemnification
    	
33
    
	
 
    	
 
    	
 
    
	
ARTICLE 15. NONWAIVER
    	
33
    
	
 
    	
 
    
	
ARTICLE 16. CONDEMNATION
    	
33
    
	
 
    	
 
    
	
ARTICLE 17. ASSIGNMENT AND   SUBLETTING
    	
34
    
	
17.01
    	
No Transfer Without Consent
    	
34
    
	
17.02
    	
Rent Premium on Transfer
    	
35
    
	
17.03
    	
Change in Control
    	
36
    
				

 

2

 

	
ARTICLE 18. SURRENDER OF   POSSESSION
    	
37
    
	
 
    	
 
    
	
ARTICLE 19. HOLDING OVER
    	
38
    
	
 
    	
 
    
	
ARTICLE 20. ESTOPPEL   CERTIFICATE
    	
38
    
	
 
    	
 
    
	
ARTICLE 21. SUBORDINATION
    	
39
    
	
 
    	
 
    
	
ARTICLE 22. CERTAIN RIGHTS   RESERVED BY LANDLORD
    	
40
    
	
 
    	
 
    
	
ARTICLE 23. RULES AND   REGULATIONS
    	
42
    
	
 
    	
 
    
	
ARTICLE 24. LANDLORD’S   REMEDIES
    	
42
    
	
 
    	
 
    
	
ARTICLE 25. EXPENSES OF   ENFORCEMENT
    	
45
    
	
 
    	
 
    
	
ARTICLE 26. COVENANT OF   QUIET ENJOYMENT
    	
45
    
	
 
    	
 
    
	
ARTICLE 27. LETTER OF CREDIT
    	
45
    
	
27.01
    	
General Provisions
    	
45
    
	
27.02
    	
Drawings under Letter of Credit
    	
46
    
	
27.03
    	
Use of Proceeds by Landlord
    	
46
    
	
27.04
    	
Additional Covenants of Tenant
    	
47
    
	
27.05
    	
Nature of Letter of Credit
    	
47
    
	
 
    	
 
    	
 
    
	
ARTICLE 28. REAL ESTATE   BROKER
    	
47
    
	
 
    	
 
    
	
ARTICLE 29. NOTICE TO   MORTGAGEE AND GROUND LESSOR
    	
48
    
	
 
    	
 
    
	
ARTICLE 30. ASSIGNMENT OF   RENTS
    	
48
    
	
 
    	
 
    
	
ARTICLE 31. PERSONAL   PROPERTY TAXES
    	
48
    
	
 
    	
 
    
	
ARTICLE 32. MISCELLANEOUS
    	
49
    
	
 
    	
 
    
	
ARTICLE 33. NOTICES
    	
54
    
	
 
    	
 
    
	
ARTICLE 34. LIMITATION ON   LIABILITY
    	
55
    
	
 
    	
 
    
	
ARTICLE 35. LANDLORD’S   DESIGNATED AGENT
    	
55
    
	
 
    	
 
    
	
ARTICLE 36. COMMENCEMENT   DATE
    	
56
    
	
 
    	
 
    
	
ARTICLE 37. PARKING
    	
56
    
	
 
    	
 
    
	
ARTICLE 38. TENANT   IMPROVEMENT ALLOWANCE
    	
56
    
	
 
    	
 
    
	
ARTICLE 39. FINANCIAL   STATEMENTS
    	
59
    
				

 

3

 

	
ARTICLE 40. TENANT AUTHORITY   TO EXECUTE LEASE
    	
59
    
	
40.01
    	
Tenant Authority to Execute Lease
    	
59
    
	
40.02
    	
Landlord Authority to Execute Lease
    	
59
    
	
 
    	
 
    	
 
    
	
ARTICLE 41. OPTION TO EXTEND   LEASE
    	
59
    
	
 
    	
 
    
	
ARTICLE 42. EXPANSION RIGHTS
    	
61
    
	
42.01
    	
Special Expansion Rights
    	
61
    
	
42.02
    	
Expansion Rights
    	
63
    
	
42.03
    	
Expansion Amendment
    	
64
    
	
42.04
    	
Bentley Space
    	
64
    
	
 
    	
 
    	
 
    
	
ARTICLE 43. RIGHT OF FIRST   OFFER
    	
65
    
	
43.01
    	
Grant of Option; Conditions
    	
65
    
	
43.02
    	
Terms for Offering Space
    	
65
    
	
43.03
    	
Definition of Prevailing Market Rent
    	
66
    
	
43.04
    	
Determination of Prevailing Market Rent
    	
66
    
	
43.05
    	
Condition of Offering Space
    	
67
    
	
43.06
    	
Offering Amendment
    	
67
    
	
 
    	
 
    	
 
    
	
ARTICLE 44. ROOFTOP   COMMUNICATIONS
    	
68
    
	
 
    	
 
    
	
ARTICLE 45. EMERGENCY   GENERATOR
    	
71
    
	
 
    	
 
    
	
Exhibit A
    	
Plan   of Premises
    	
 
    
	
 
    	
 
    	
 
    
	
Exhibit A-1
    	
Early   Expansion Spaces
    	
 
    
	
 
    	
 
    	
 
    
	
Exhibit A-2
    	
Roof   Deck Plan
    	
 
    
	
 
    	
 
    	
 
    
	
Exhibit A-3
    	
Expansion   Space One and Expansion Space Two
    	
 
    
	
 
    	
 
    	
 
    
	
Exhibit B-1
    	
Shell   Work
    	
 
    
	
 
    	
 
    	
 
    
	
Exhibit B-2
    	
Landlord’s   Work
    	
 
    
	
 
    	
 
    	
 
    
	
Exhibit C
    	
Rules and   Regulations
    	
 
    
	
 
    	
 
    	
 
    
	
Exhibit D
    	
Cleaning   Specifications
    	
 
    
	
 
    	
 
    	
 
    
	
Exhibit E
    	
Measurement   Standards
    	
 
    
	
 
    	
 
    	
 
    
	
Exhibit F
    	
Letter   of Credit Form
    	
 
    
	
 
    	
 
    	
 
    
	
Schedule   8.01
    	
Tenant’s   HVAC Requirements
    	
 
    
				

 

4

 

OFFICE LEASE

 

COPLEY PLACE

 

BOSTON, MASSACHUSETTS

 

THIS INSTRUMENT is an Agreement of Lease in which the Landlord and the Tenant are the parties hereinafter named, and which relates to space in the Office Section of Copley Place (hereinafter referred to as the “Office Section”) located at 100 Huntington Avenue, Boston, Suffolk County, Massachusetts (the project known as Copley Place, including without limitation the hotel portions thereof, plazas, pedestrian bridges, service areas and all other common areas, together with all present and future easements, additions, improvements, air rights and other rights appurtenant thereto, is hereinafter referred to as the “Property”), subject to the covenants, terms, provisions and conditions of this Lease. The “Office Section” means the seven (7) levels of office area in four so-called “Towers” (denoted, respectively, as “One Copley Place”, “Two Copley Place”, “Three Copley Place” and “Four Copley Place” or as “Tower 1”, “Tower II”, “Tower Ill” and “Tower IV”, respectively), containing approximately 867,564 square feet of rentable floor area constituting a portion of the building (the “Building”) located at the aforesaid address. The Building also contains retail shopping, restaurant, parking and other facilities, which are not included within the Office Section. The Building does not, however, include the hotel or residential portions of the Property or the pedestrian bridges.

 

The provisions set forth in this lease are the result of a negotiation in which the parties were represented by counsel experienced in lease transactions of office space in the Commonwealth of Massachusetts. Each of the provisions was negotiated in view of the entire transaction including the type and location of the property, the rental, the term and the respective rights, obligations and remedies of the Landlord and Tenant. As a result, the rights, obligations and remedies which have been agreed to herein are, as negotiated, a part of the transaction as a whole and neither party intends that the absence of any particular remedy being specified for a particular action or lack of action by the other party imply that the parties intended any remedy not so specified. Without limiting the generality of the foregoing, in no event shall Tenant have the right to terminate or cancel this lease as a result of any default by Landlord or breach by Landlord of its covenants or any warranties or promises hereunder, except in the case of a wrongful eviction of Tenant from the demised premises (constructive or actual) by Landlord or as otherwise specifically set forth herein. In consideration of the covenants herein contained, Landlord and Tenant hereby agree as follows:

 

ARTICLE 1.
 BASIC DATA

 

The following sets forth basic data and, where the context admits, constitutes definitions of the terms hereinafter listed.

 

	
1.01 
    	
Date:
    	
 
    	
April 18, 2013
    
	
 
    	
 
    	
 
    	
 
    
	
1.02 
    	
Landlord:
    	
 
    	
COPLEY PLACE   ASSOCIATES, LLC, a Delaware limited liability company
    

 

5

 

	
1.03 
    	
Present Mailing   Address of Landlord:
    	
 
    	
Simon Property   Group, Inc. 

Attention: Property   Manager
   Two Copley Place, Suite 100
   Boston, MA 02116-6502
    
	
 
    	
 
    	
 
    	
 
    
	
1.04 
    	
Tenant:
    	
 
    	
WAYFAIR LLC, a   Delaware limited liability company
    
	
 
    	
 
    	
 
    	
 
    
	
1.05 
    	
Present Mailing   Address of Tenant:
    	
 
    	
177 Huntington   Avenue, Suite 6000
   Boston, MA 02115
   Attention: General Counsel
    
	
 
    	
 
    	
 
    	
 
    
	
1.06 
    	
Guarantor:
    	
 
    	
None
    
	
 
    	
 
    	
 
    	
 
    
	
1.07 
    	
Present Mailing   Address of Guarantor:
    	
 
    	
Not Applicable
    
	
 
    	
 
    	
 
    	
 
    
	
1.08 
    	
Commencement Date:
    	
 
    	
Subject to   ARTICLE 3 and ARTICLE 36 hereof, July 1, 2014.
    
	
 
    	
 
    	
 
    	
 
    
	
1.09 
    	
Rent Commencement   Date:
    	
 
    	
The Commencement   Date
    
	
 
    	
 
    	
 
    	
 
    
	
1.10 
    	
Termination Date:
    	
 
    	
June 30, 2024   as the same may be extended pursuant to the option of extension set forth in   ARTICLE 41, unless, in any case, sooner terminated as provided in this   Lease.
    
	
 
    	
 
    	
 
    	
 
    
	
1.11 
    	
Base Rent:
    	
 
    	
Subject to   ARTICLE 3, ARTICLE 4 and ARTICLE 36 hereof, Base Rent shall be   payable in accordance with the following table:
    

 

	
Period
    	
 
    	
Annual Base Rent
   Per Rentable
   Square Foot
    	
 
    	
Annual Base
   Rent
    	
 
    	
Monthly
   Installment of
   Annual Base
   Rent
    	
 
    
	
July 1, 2014 through June 30, 2015
    	
 
    	
$
    	
34.65
    	
 
    	
$
    	
3,662,366.40
    	
 
    	
$
    	
305,197.20
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
July 1, 2015 through June 30, 2016
    	
 
    	
$
    	
35.65
    	
 
    	
$
    	
3,768,062.40
    	
 
    	
$
    	
314,005.20
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
July 1, 2016 through June 30, 2017
    	
 
    	
$
    	
36.65
    	
 
    	
$
    	
3,873,758.40
    	
 
    	
$
    	
322,813.20
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
July 1, 2017 through June 30, 2018
    	
 
    	
$
    	
37.65
    	
 
    	
$
    	
3,979,454.40
    	
 
    	
$
    	
331,621.20
    	
 
    

 

6

 

	
July 1, 2018 through June 30, 2019
    	
 
    	
$
    	
38.65
    	
 
    	
$
    	
4,085,150.40
    	
 
    	
$
    	
340,429.20
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
July 1, 2019 through June 30, 2020
    	
 
    	
$
    	
39.65
    	
 
    	
$
    	
4,190,846.40
    	
 
    	
$
    	
349,237.20
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
July 1, 2020 through June 30, 2021
    	
 
    	
$
    	
40.65
    	
 
    	
$
    	
4,296,542.40
    	
 
    	
$
    	
358,045.20
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
July 1, 2021 through June 30, 2022
    	
 
    	
$
    	
41.65
    	
 
    	
$
    	
4,402,238.40
    	
 
    	
$
    	
366,853.20
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
July 1, 2022 through June 30, 20233
    	
 
    	
$
    	
42.65
    	
 
    	
$
    	
4,507,934.40
    	
 
    	
$
    	
375,661.20
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
July 1, 2023 through June 30, 2024
    	
 
    	
$
    	
43.65
    	
 
    	
$
    	
4,613,630.40
    	
 
    	
$
    	
384,469.20
    	
 
    

 

	
1.12 
    	
Operating Expense   Base Year:
    	
 
    	
The Calendar Year   2014.
    
	
 
    	
 
    	
 
    	
 
    
	
1.13 
    	
Base Year Operating   Expenses:
    	
 
    	
The amount of   Operating Expenses incurred with respect to the Base Year, determined in   accordance with subsection 5.02(v) (including the grossing up thereof as   provided therein).
    
	
 
    	
 
    	
 
    	
 
    
	
1.14 
    	
Tax Base Year:
    	
 
    	
The Calendar Year   2014.
    
	
 
    	
 
    	
 
    	
 
    
	
1.15 
    	
Base Year Taxes:
    	
 
    	
The amount of Taxes   incurred with respect to the Tax Base Year determined in accordance with   subsection 5.02(iv) (including the grossing up thereof as provided   therein).
    
	
 
    	
 
    	
 
    	
 
    
	
1.16 
    	
Tenant’s   Proportionate Tax Share:
    	
 
    	
12.82% for the   Premises initially leased hereunder (computed on the basis of 95% occupancy).
    
	
 
    	
 
    	
 
    	
 
    
	
1.17 
    	
Tenant’s   Proportionate Expense Share:
    	
 
    	
12.82% for the   Premises initially leased hereunder (computed on the basis of 95% occupancy).
    
	
 
    	
 
    	
 
    	
 
    
	
1.18 
    	
Use:
    	
 
    	
Subject to   ARTICLE 23, general executive, professional and administrative offices   and uses ancillary or accessory thereto.
    

 

7

 

	
1.19 
    	
Premises:
    	
 
    	
That portion of the   Office Section designated on the plan attached hereto as Exhibit A   consisting of a Sheet for each floor of Tower IV in which a portion of the   Premises is located and containing a total of approximately 105,696 rentable   square feet, consisting of the following approximate rentable square footages   in Tower IV of the Building:  

 

35,176   rentable square feet on the 7th floor  

24,104   rentable square feet on the 6th floor  

15,976   rentable square feet on the 4th floor  

23,048   rentable square feet on the 3rd floor  

7,392   rentable square feet on the 1st floor  

 

The foregoing   described Premises (“Initial Premises”) is subject to   an expansion of the Premises pursuant to the Expansion Rights provided in   ARTICLE 42 and the exercise(s)  of a Right of First Offer provided   in ARTICLE 43.  

 

Excepted and   excluded from the Premises are the roof or ceiling, the floor and all   perimeter walls of the Premises, except the inner surfaces thereof, but the   entry doors to the Premises are not excluded from the Premises and are a part   thereof for all purposes; and Tenant agrees that Landlord shall have the right   to place in the Premises (but in such manner as to reduce to a minimum   interference with Tenant’s use of the Premises) utility lines, pipes and the   like, to serve premises other than the Premises, and to replace and maintain   and repair such utility lines, pipes and the like, in, over and upon the   Premises, but in no event shall such installations reduce the usable square   footage of the Premises by more than de minimus amounts.
    
	
 
    	
 
    	
 
    	
 
    
	
1.20 
    	
Common Areas:
    	
 
    	
Those portions of   the Property not leased to any tenant, but for the benefit of the Property   and its tenants, such as landscaped areas, malls, pedestrian walkways and   bridges, public restrooms, service areas and the like 
    

 

8

 

	
 
    	
 
    	
 
    	
and if the Premises   include less than the entire rentable floor area of any floor, the common   toilets, corridor and elevator lobby of such floor.
    
	
 
    	
 
    	
 
    	
 
    
	
1.21 
    	
Letter of Credit   Amount:
    	
 
    	
$1,220,788.80
    
	
 
    	
 
    	
 
    	
 
    
	
1.22 
    	
Brokers:
    	
 
    	
Richards Barry   Joyce & Partners for Tenant 
   CB Richard Ellis-N.E. Partners, L.P. for Landlord
    

 

ARTICLE 2.
 HABENDUM; TERM

 

To have and to hold the Premises for the Term (as hereinafter defined), and the right to use the Common Areas during the Term in common with others entitled thereto. The term of this Lease (the “Term”) shall be that period of time commencing on the Commencement Date specified in ARTICLE 1 hereof and ending on the Termination Date specified in ARTICLE 1 hereof, unless extended as set forth in ARTICLE 41 hereof or sooner terminated as provided herein.

 

ARTICLE 3.
 POSSESSION

 

3.01                        Rent Commencement. In the event Landlord is unable to deliver possession of the Premises on or before September 1, 2013 in the condition required pursuant to Section 7.1 by reason of the holding over or retention of possession by any tenant or occupant, or for any other reason, this Lease shall nevertheless continue in force and effect, except the Commencement Date and the Rent Commencement Date for any portion of the Initial Premises that Landlord is delayed in delivering beyond September 1, 2013 shall be delayed day for day for each day following September 1, 2013 that Landlord is unable to so deliver possession of such portion of the Premises.  In addition, (i) if Landlord is unable to so deliver possession of all or any portion of the Initial Premises by December 31, 2013, then following the Rent Commencement Date, Tenant shall have the right to receive an abatement of one (1) day of Base Rent allocable to the portion of the Initial Premises which Landlord has not so delivered for each and every day of delay in such delivery following December 31, 2013 and (ii) if Landlord is unable to so deliver possession of fifty percent (50%) or more of the Initial Premises by February 1, 2014, Tenant shall have the right, by giving written notice thereof to Landlord, to terminate this Lease and in such event all obligations of Landlord and Tenant with respect to this Lease shall terminate and be of no further force and effect.

 

3.02                        Early Entry. Landlord shall deliver the Premises to Tenant, in the condition set forth in Section 7.1 on September 1, 2013 for purposes of performing Tenant’s Initial Alterations (as hereinafter defined) of the Premises and for installation of telecommunications, business equipment and furniture, and may, subject to Legal Requirements (as hereinafter defined) use the Premises for the conduct of Tenant’s business prior to the Commencement Date.  Such entry by

 

9

 

Tenant prior to the Commencement Date shall be at Tenant’s sole risk and without material interference to any work then being performed in the Building by Landlord or to any work then being performed by other tenants in space occupied by such tenants, and all of the covenants and conditions of this Lease shall be binding upon the parties hereto with respect to such whole or part of the Premises.  Nevertheless, Tenant’s obligation to pay Rent shall not commence until the Rent Commencement Date and Tenant shall pay Base Rent and any Additional Rent that may be due under ARTICLE 5 on the Rent Commencement Date and upon the first day of each calendar month thereafter at the rates set forth in ARTICLES 1 and 5 hereof. Tenant shall pay for electricity used by Tenant following commencement of Tenant’s construction of the Initial Alterations in the Premises as determined by actual check metering of such usage.

 

3.03                        No Change in Lease Term. The occurrence of any of the events described in this ARTICLE 3 shall not be deemed to accelerate or defer the Termination Date.

 

3.04                        Appurtenant Rights. Tenant shall have, as appurtenant to the Premises, the right (i) to use, in common with others, to the extent space is available therein, the shafts, stacks, pipes, ducts, risers and conduits that are not for the exclusive use of other tenants in the Building, (ii) to use vertical conduits, installed by Tenant at its sole cost and expense, in locations approved by Landlord, for telecommunications running from the Premises to the roof of the Building or a below grade point of entry into the Building, (iii) to install, at Tenant’s sole cost and expense, fiber optic cabling, in conduits and locations approved by Landlord, (iv) to install, use, maintain and repair, a standby generator, in accordance with ARTICLE 45 below, and the Dish/Antenna (as defined in ARTICLE 44 below), and (v) to use the roof area designated on Exhibit A-2 for the installation and maintenance of a roof deck on the terms and conditions set forth in Section 3.05.

 

3.05                        Roof Deck. If Tenant elects to install a roof deck as described in Section 3.04; such roof deck shall be subject to all Legal Requirements as if the same were a part of the Premises; installed and maintained at Tenant’s expense (but the Allowance provided hereunder may be used for design and installation of the same), removed and replaced at Tenant’s expense as required for roof maintenance, and otherwise subject to all requirements and rights applicable to Initial Alterations, including, without limitation, that the Tenant shall have no obligation of restoration with regard to the roof deck. Tenant shall maintain liability insurance with respect thereto as if the same were part of the Premises. Tenant shall be responsible for any material damage caused to the roof or any other part of the Building by the installation, use, maintenance, removal or replacement of the roof deck, to the extent caused by Tenant, Tenant’s invitees or any of Tenant’s agents or representatives as a result of Tenant’s exercise of its rights with respect to the roof deck. Tenant agrees that if it makes use of the roof for a roof deck, it will keep the roof of the Building free of all trash or waste materials produced by Tenant, Tenant’s invitees or any of Tenant’s agents or representatives.  Except as may arise from the negligence of the Landlord, neither Landlord nor its agents shall have any responsibility or liability for the conduct or safety of any of Tenant, Tenant’s invitees or any of Tenant’s agents or representatives while on the roof deck. If Tenant elects to remove the roof deck, Tenant shall repair any damage to the roof caused by such removal, including the patching of any holes. Tenant specifically acknowledges and agrees that the terms and conditions of ARTICLE 14 regarding indemnification and waiver of claims shall apply with full force and effect to the roof deck.

 

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ARTICLE 4.
 BASE RENT

 

Commencing on the Rent Commencement Date, Tenant shall pay to Landlord or Landlord’s agent without notice or demand at Copley Place Associates, LLC, c/o Simon Property Group, Inc., P.O. Box 5631, Indianapolis, Indiana 40206-5631, or at such other place as Landlord may from time to time designate in writing, in coin or currency which, at the time of payment, is legal tender for private or public debts in the United States of America, the Base Rent specified in ARTICLE 1 hereof in the equal monthly installments specified in ARTICLE 1 hereof in advance on or before the first day of each and every month (and partial month, if any) during the Term following the Rent Commencement Date, without any abatement, counterclaim, set-off or deduction whatsoever, except as expressly provided herein; in this regard, it is understood that the parties have agreed to such remedies with respect to those instances, if any, in which the parties have determined that such remedies are appropriate.  If the Rent Commencement Date for any portion of the Premises is other than on the first day of a month or the Term ends other than on the last day of the month, the Base Rent for such month shall be prorated. The prorated Base Rent for the portion of the month in which the Rent Commencement Date occurs shall be paid on the Rent Commencement Date.

 

ARTICLE 5.
 ADDITIONAL RENT

 

5.01                        Obligation as to Additional Rent. In addition to paying the Base Rent specified in ARTICLE 4 hereof, Tenant shall, commencing on the Rent Commencement Date and for the duration of the Term, pay as “Additional Rent” the amounts determined pursuant to Sections 5.03 and 5.04 of this ARTICLE 5. The Base Rent and the Additional Rent are sometimes collectively referred to in this Lease as the “Rent”. All amounts due under this ARTICLE as Additional Rent shall be payable for the same periods and in the same manner, time and place as the Base Rent and in the same currency, without any abatement, counterclaim, set-off or deduction whatsoever, except as expressly set forth herein. Without limitation on other obligations of Tenant that shall survive the expiration of the Term, the obligations of Tenant to pay the Additional Rent provided for in this ARTICLE 5 shall survive the expiration of the Term for a period of eighteen (18) months.  For any partial Calendar Year following the Rent Commencement Date, Tenant shall be obligated to pay only a pro rata share of the Additional Rent, based on the number of days of the Term falling within such Calendar Year.

 

5.02                        Definitions.  As used in this ARTICLE 5, the terms:

 

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

 

(ii)                                  “Tenant’s Proportionate Tax Share” shall mean the percentage specified in ARTICLE 1 hereof, being the percentage calculated by dividing the rentable area contained in the Premises by 824,186 (being 95% of the rentable square foot area of the Office Section).

 

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(iii)                               “Tenant’s Proportionate Expense Share” shall mean the percentage specified in ARTICLE 1 hereof, being the percentage calculated by dividing the rentable area contained in the Premises by 824,186 (being 95% of the rentable square foot area of the Office Section).

 

(iv)                              “Taxes” shall mean all real estate taxes and assessments, special or otherwise, levied or assessed upon or with respect to the Property or any part thereof including without limitation Common Areas as such taxes and assessments are reasonably determined by Landlord to be for the benefit of the Office Section and ad valorem taxes for any personal property of Landlord to the extent used in connection with the Office Section.  For purposes of clarity, it is understood that there is one real estate tax bill for the Property and that Landlord allocates to the Office Section real estate taxes and assessments on the entire Property based upon the reasonable determination of Landlord.  Should the Commonwealth of Massachusetts, or any political subdivision thereof, or any other governmental authority having jurisdiction over the Building, (a) impose a tax, assessment, charge or fee, which Landlord shall be required to pay, by way of substitution for or as a supplement to such real estate taxes and ad valorem personal property taxes, or (b) impose an income or franchise tax or a tax on rents in substitution for or as a supplement to a tax levied against the Property or any part thereof and/or the personal property used by Landlord in connection with the Property or any part thereof, all such taxes, assessments, fees or charges (hereinafter defined as “in lieu of taxes”) shall be deemed to constitute Taxes hereunder.  Taxes shall also include, in the year paid, all fees and costs reasonably incurred by Landlord in seeking to obtain a reduction of, or a limit on the increase in, any Taxes, regardless of whether any reduction or limitation is obtained. Taxes shall not include any inheritance, estate, succession, transfer, gift, franchise, corporate excise taxes, transfer taxes, or net income or capital stock tax. If less than 95% of the Office Section is occupied during all or a portion of the Tax Base Year or any Adjustment Year, Landlord shall make an appropriate adjustment in Taxes for such year by adjusting the amount deemed to be Taxes for such Calendar Year so that Tenant’s responsibility for Taxes shall be an amount equal to the amount it would have paid on account of Taxes had the Office Section been 95% occupied.  In computing the Adjustment Amount under Section 5.03, any refund of Taxes received by Landlord in the period during which Taxes is being computed and which is available to benefit Tenant as described in this ARTICLE 5, shall, net of the cost of obtaining such refund (to the extent costs were not previously included in Taxes or Operating Expenses), reduce Taxes to which Section 5.03 is applicable; and if Tenant expands into space formerly occupied by other tenants, which expansion space becomes subject to this Lease, Tenant shall not be entitled to any refund or credit in connection with a refund or abatement of Taxes for periods prior to the commencement date for Tenant’s lease of such expansion space. All references to Taxes “for” a particular Calendar Year shall be deemed to refer to Taxes due and payable during such Calendar Year without regard to when such Taxes are assessed or levied.

 

(v)                                 “Operating Expenses” mean all expenses, costs and disbursements of every kind and nature, other than Taxes, paid or incurred by Landlord in operating, managing, repairing and maintaining the Property and its appurtenances as such expenses, costs and disbursements are reasonably allocated on a fair and equitable basis 

 

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to the Office Section by the Landlord in its sole reasonable judgment, or as the same are incurred directly in the operation of the Office Section. Operating Expenses shall include, without limitation: premiums for fire, casualty, liability and such other insurance as Landlord may from time to time maintain; security expenses; compensation and all fringe benefits, workmen’s compensation insurance premiums and payroll taxes paid by Landlord to, for or with respect to all persons engaged in operating, maintaining, or cleaning the Property (equitably apportioned, if such personnel serve the Property and other properties); steam, water, sewer, stormwater, electric, gas, telephone, and other utility charges to the Building not billed directly to tenants by Landlord or the utility; expenses incurred in connection with the central plant furnishing heating, ventilating and air conditioning to the Office Section (and to the Building and the Property where and to the extent the expenses of the Building and the Property are otherwise allocable to the Office Section), which expenses may include a reasonable fee paid to the independent operator of such central plant; costs of lighting, ventilating, (including maintaining and repairing ventilating fans and fan rooms) making routine repairs to and maintenance of underground roadways (and the access ramps servicing such roadways) and railroad platforms and railroad rights of way (including track); costs of repairing and maintaining fire protection systems relating to the underground roadways, access ramps, railroad platforms and railroad rights of way; costs of building and cleaning supplies and equipment (including rental); cost of maintenance, cleaning and repairs; cost of snow plowing or removal, or both, and care of interior and exterior landscaping; payments to independent contractors under contracts for cleaning, operating, management, maintenance and repair (which payments may be to affiliates of Landlord so long as not more than the market rate for such services is included in determining Tenant’s share of Operating Expenses); all other expenses paid in connection with cleaning, operating, management, maintenance and repair, and the amortized cost of capital expenditures (provided that replacement parts or components which are essentially in the nature of regular maintenance replacements even though classified for accounting purposes as capital and which are installed in the ordinary course of business shall not be deemed capital for these purposes and shall not therefore be capital expenditures for purposes of this Lease) which are: (a) in good faith based upon engineering estimates intended to (I) stabilize or reduce, over the portion of the useful life of such improvements or equipment within the then Term, operating expense costs that would otherwise be incurred or (II) improve the operating efficiency of the Property; or (b) required to comply with any Laws that are enacted, or first become effective, after the date of this Lease. The amount included in any Calendar Year with respect to such capital expenditure shall be the total expenditure amortized by Landlord over the useful life thereof determined in accordance with generally accepted accounting principles or, in the case of those items described in clause (a)(I) or clause (a)(II) above, the lesser of the useful life of such items and the Payback Period (defined below). The amortized cost of a capital expenditure may, at Landlord’s option, include actual rate paid by Landlord to finance the capital expenditure or imputed interest at the rate that Landlord is charged for moneys then borrowed by Landlord or by an affiliate that makes such funds available to Landlord for operations. “Payback Period” means the reasonably estimated period of time that it takes for the cost savings resulting from a capital expenditure to equal the total capital expenditure.

 

Operating Expenses shall not, however, include the following:

 

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(a)                                 costs of any alterations or special services rendered to individual tenants (including Tenant), for which a special, separate charge shall be made or which is not furnished generally to all office tenants of the Building;

 

(b)                                 Taxes;

 

(c)                                  interest or principal or financing costs on mortgages encumbering the land on which the Building is located or the Building or relating to funds borrowed by Landlord, or any ground lease rent or other rent payable by Landlord to the holder of any ground lease or other lease to the Landlord, as tenant, of the Property or any portion thereof;

 

(d)                                 leasing commissions, marketing costs, advertising, legal, space planning, construction and related expenses (including permitting, licensing and inspection fees), and lease concessions incurred in procuring, negotiating or disputing leases or subleases with, and installing leasehold improvements for, tenants, subtenants or prospective tenants or subtenants of the Building;

 

(e)                                  any other expenses for which Landlord actually receives during the applicable period direct reimbursement from insurance (or if Landlord fails to carry the insurance required hereunder, the reimbursement Landlord would have received had it carried such requisite insurance), condemnation awards, other tenants or any other source;

 

(f)                                   any costs in connection with the repair, replacement or correction of any defective construction work or equipment which is covered by an applicable warranty and for which (and to the extent which) Landlord recovers with respect thereto;

 

(g)                                  any charges under any maintenance or management contract made with an affiliate of Landlord to the extent such charges exceed what would have been paid at arm’s length with an unrelated party;

 

(h)                                 any costs, fines or penalties incurred due to the violation by Landlord or any other tenant of any law;

 

(i)                                     any costs of environmental remediation for which Landlord is responsible under this Lease, or for which any other tenant or other third party is responsible under the law;

 

(j)                                    costs incurred in connection with the sale, financing or refinancing of the Property or any portion thereof;

 

(k)                                 fines, interest and penalties incurred due to the late payment of Taxes, or the failure to file tax or informational returns when due, or due to the late payment of Operating Expenses;

 

(l)                                     organizational expenses associated with the creation and operation of the entity which constitutes Landlord, including Landlord’s general corporate overhead, in-house legal fees and any entertainment, dining or travel expenses of Landlord;

 

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(m)                             any penalties or damages that Landlord pays to Tenant under this Lease or to other tenants in the Building under their respective leases;

 

(n)                                 the amount of judgments against Landlord or settlements of third party claims against Landlord and the amount of attorneys’ fees in connection with any of the same (but the foregoing shall not prevent the application of insurance carried by Landlord under this Lease to the same);

 

(o)                                 costs of the operation of the Copley Garage or the Dartmouth Street Garage (as such terms are hereinafter defined);

 

(p)                                 rentals and other related expenses incurred in leasing heating, ventilating and air conditioning systems, elevators or other equipment ordinarily considered to be capital items, except (i) expenses in connection with making repairs on or keeping Buildings systems in operation while repairs are being made and (ii) costs of equipment not affixed to the Building which is used in providing janitorial or similar services;

 

(q)                                 capital expenditures which are not specifically included in Operating Expenses as set forth above;

 

(r)                                    advertising and promotional expenditures and costs of signs in or on the Building identifying the owner of the Building or other tenants’ signs, costs arising from Landlord’s charitable or political contributions, costs for sculpture, paintings or other objects of art, other than maintenance of the same, and the cost of any “tenant relations” parties, events or promotion;

 

(s)                                   the cost of any electric power used by any tenant in the Building for which such tenant is billed directly by Landlord including without limitation by reason of such tenant’s usage being metered or sub-metered, or electric power costs for which any tenant directly contracts with the local public service company;

 

(t)                                    bad debt, rental loss or any reserves for repairs or replacements; or services and utilities provided, taxes attributable to, and costs incurred in connection with the operation of the retail, parking, and restaurant operations in the Building; or

 

(u)                                 costs of so-called lease or credit enhancement insurance or similar insurance products, whether or not the same is required by any mortgagee of the Property, which are obtained for the purpose of obtaining financing or similar credit benefits that inure to the owner or mortgagee of the Property.

 

If less than 95% of the Office Section’s rentable area shall have been occupied by tenant(s) at any time during any Calendar Year (including the Operating Expense Base Year), for purposes of determining the Adjustment Amount (as hereinafter defined) and the Operating Expense in the Base Year, each component of Operating Expenses for such Calendar Year allocated to the Office Section that varies with fluctuations in occupancy shall be deemed to be an amount equal to the like component which would reasonably be expected to have been incurred had such occupancy been 95% throughout such Calendar Year (including the Operating Expense Base Year, as applicable), so that the amount Tenant actually pays on account of Operating Expenses paid or incurred by Landlord reflects the amount Tenant would have paid if 

 

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the Office Section would have been 95% occupied during such period.  If any item of Operating Expenses, though paid or incurred in one calendar year, relates to more than one Calendar Year, at the option of Landlord such item may be proportionately allocated among such related calendar years.

 

5.03                        Expense & Tax Adjustment.  Tenant shall pay to Landlord or Landlord’s agent as Additional Rent, a sum (“Adjustment Amount”) equal to the sum of (i) Tenant’s Proportionate Expense Share multiplied by the amount by which (a) Operating Expenses incurred in each Calendar Year exceeds (b) Base Year Operating Expenses plus (ii) Tenant’s Proportionate Tax Share multiplied by the amount by which (a) Taxes payable with respect to each Calendar Year exceeds (b) Base Year Taxes. The Adjustment Amount with respect to each Calendar Year shall be paid in monthly installments, in an amount reasonably estimated from time to time by Landlord and communicated by written notice to Tenant, which estimate may be revised to reflect increases in Taxes and Operating Expense adjustments.  Landlord shall cause to be kept books and records showing Operating Expenses in accordance with an appropriate system of accounts and accounting practices consistently maintained for a period of at least two (2) years following the conclusion of each Calendar Year during the Term.  Following the close of each Calendar Year, Landlord shall cause the amount of the Adjustment Amount for such Calendar Year to be computed based on Operating Expenses and Taxes for such Calendar Year and Landlord shall deliver to Tenant a statement of such amount and within thirty (30) days after receipt of such statement, Tenant shall pay any deficiency to Landlord as shown by such statement, as the same may have been adjusted by reason of such review. If the total of the estimated monthly installments paid by Tenant during any Calendar Year exceed the actual Adjustment Amount due from Tenant for such Calendar Year, at Landlord’s option such excess shall be either credited against payments next due hereunder or refunded by Landlord provided Tenant is not then in default hereunder with respect to any monetary obligation or in default beyond applicable notice and cure periods with respect to any other obligations. Delay in computation of the Adjustment Amount or a delay in the delivery of a statement of such amount shall not be deemed a default hereunder or a waiver of Landlord’s right to collect the Adjustment Amount hereunder; provided, however, Landlord’s failure to deliver such computation and statement within eighteen (18) months after the end of the applicable Calendar Year shall be deemed a waiver of Landlord’s right to collect any amount in addition to the amounts theretofore collected with respect to such applicable Calendar Year on account of Operating Expenses and Taxes (but such failure or delay in delivery shall not entitle Tenant to a refund of estimated amounts collected with respect to Operating Expenses and Taxes with respect to such applicable Calendar Year). The provisions of this Section 5.03 shall survive the expiration or earlier termination of this Lease.

 

5.04                        Adjustment for Services not Rendered by Landlord. Tenant acknowledges that if Landlord is not furnishing any particular work or service the cost of which, if performed by Landlord, would be included in Operating Expenses, to any tenant who has undertaken to perform such work or service in lieu of the performance thereof by Landlord, and, as a result, Operating Expenses are reduced, Operating Expenses shall be deemed for the purpose of determining the Adjustment Amount to be increased by an amount equal to the additional Operating Expenses which would reasonably have been incurred during such period by Landlord if it had at its own expense furnished such work or service to such tenant. Furthermore, to the extent Landlord incurs any category or item contained within Operating Expenses that should 

 

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have been but was not included in the Base Year, then the Base Year Operating Expenses shall be increased by the amount which should have been included in the Base Year Operating Expenses.

 

5.05                        Audit Rights. Tenant may, within one hundred eighty (180) days after receiving Landlord’s statement of Operating Expenses or Taxes, give Landlord written notice (“Review Notice”) that Tenant intends to review Landlord’s records of the Operating Expenses or Taxes for that calendar year and, if Tenant so chooses, the Calendar Year immediately preceding and/or the Operating Expense Base Year and Tax Base Year. Within a reasonable time after receipt of the Review Notice, Landlord shall make all pertinent records available for inspection by electronic files or in hard copy (which hard copies shall be provided at the Building and may, at Tenant’s expense, be copied). Such records shall set forth in reasonable detail the Operating Expenses or Taxes and shall include reasonable backup necessary for Tenant to conduct its review, including the records for the previous calendar year or base year for comparison. Within one hundred eighty (180) days after the records are made available to Tenant, Tenant shall have the right to give Landlord written notice (an “Objection Notice”) stating in reasonable detail any objection to Landlord’s statement of Operating Expenses or Taxes for the years under review. Tenant shall be deemed to have approved Landlord’s statement of Expenses or Taxes and shall be barred from raising any claims regarding the Operating Expenses or Taxes for that year if Tenant fails to give Landlord an Objection Notice within the 180 day period following the receipt of the statement for the next succeeding Calendar Year or fails to provide Landlord with a Review Notice within the applicable 180 day period described above. If Tenant provides Landlord with a timely Objection Notice, Landlord and Tenant shall work together in good faith to resolve any issues raised in Tenant’s Objection Notice. In the event Landlord and Tenant are unable to reach a mutual determination of the issues, Tenant shall have the right to have professional auditors conduct a review of Landlord’s books and records relating to Operating Expenses or Taxes incurred during the period. Such professional auditors may not, however, be engaged on a contingent fee basis. Such an audit may occur not more often than once in a year; shall be conducted within twelve (12) months (plus any period for which Landlord defers the audit as provided in this sentence) of receipt of a statement of the statement of Operating Expenses and Taxes (and the other documentation to which Tenant is entitled as set forth above) for the period being audited; shall be conducted during regular business hours of Landlord’s property manager at its office in the Boston, Massachusetts metropolitan area; provided, however, so long as Simon Property Group, Inc. or an affiliate is the property manager of the Building and the Building is owned by an entity in which an affiliate of Simon Property Group has an economic interest, such audit must be conducted in the Indianapolis, Indiana office of Landlord. Such audit shall occur on the date requested by Tenant which shall be on not less than fifteen (15) business days’ notice from Tenant to Landlord and may be deferred by Landlord, by notice to Tenant given at least ten (10) business days before the date proposed by Tenant, for up to one (1) month to a date convenient to Landlord’s property manager and Tenant. Landlord shall be provided with a copy of such third-party audit. If Landlord and Tenant determine without a third party audit, or if such audit demonstrates, that Operating Expenses or Taxes for the calendar year are less than reported, Landlord shall provide Tenant with a credit against the next installment of Rent in the amount of the overpayment by Tenant. Likewise, if Landlord and Tenant determine that Operating Expenses or Taxes for the calendar year are greater than reported, or if the audit so demonstrates, Tenant shall pay Landlord the amount of any underpayment within thirty (30) days. In addition, if as a result of an audit, Operating Expenses 

 

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or Taxes are found to be overstated by more than five percent (5%), Landlord shall pay to Tenant, Tenant’s reasonable cost of conducting such audit, not to exceed $15,000.00, plus, if applicable, reasonable travel costs to Indianapolis for necessary auditing staff. The records obtained by Tenant shall be treated as confidential.  In no event shall Tenant be permitted to examine Landlord’s records or to dispute any statement of Operating Expenses or Taxes unless Tenant has paid and continues to pay during the period of the audit all Rent when due.

 

5.06                        Billing for Electricity.

 

(i)                                     Lack of Separate Metering. The Premises are not separately metered for electricity and, accordingly, Tenant shall pay Landlord as further Additional Rent, in monthly installments at the time prescribed for monthly installments, the electrical charge computed by Landlord based on a check meter installed at Landlord’s sole cost and expense and the applicable rates and surcharges of the electrical utility serving the Premises (without any surcharges by Landlord).

 

(ii)                                  Separate Metering. In the event that Landlord in its sole discretion subsequently makes arrangements with the utility company supplying electricity to the Premises for separate metering and billing, Tenant shall pay (as hereinafter described) for the use of all electrical service to the Premises (other than the electrical service necessary for Landlord to fulfill its obligation to provide heating and air conditioning as provided in subsection 8.01(i) hereof). In such event, Tenant shall be billed directly by such utility company and Tenant agrees to pay each bill promptly in accordance with its terms. In the event that for any reason Tenant cannot be billed directly, Landlord shall forward each bill received by it with respect to the Premises to Tenant and Tenant shall pay such bill promptly in accordance with its terms.

 

ARTICLE 6.
 USE OF PREMISES

 

Tenant shall use and occupy the Premises in accordance with law; and solely for the Permitted Uses specified in ARTICLE 1 hereof and for no other purpose or purposes. For purposes of clarity, it is understood that an office use shall include the right of the Tenant to conduct an on-line retail operation; provided, however, Tenant shall have no right to conduct an in-person retail operation on the Premises.

 

ARTICLE 7.
 CONDITION OF PREMISES; LANDLORD’S WORK

 

7.01                        Condition of Premises. The Premises are demised to Tenant and Tenant accepts the same “as-is”, except that (a) if, not later than sixty (60) days following the date of this Lease, Tenant notifies Landlord that the Initial Premises or a portion thereof (clearly designated in such notice to Landlord) are to be delivered in shell condition (but absent such notice Landlord will not otherwise be obligated to perform the Shell Work, time being of the essence of such notice), the Landlord shall, with respect to such designated portion(s) of the Premises, perform the Shell Work described in Exhibit B-1 at Landlord’s sole cost and expense prior to September 1, 2013, and all other work necessary to prepare the Initial Premises for Tenant’s occupancy shall be 

 

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performed at Tenant’s sole cost and expense, in accordance with the applicable provisions of this Lease and (b) as to space added to the Premises pursuant to Section 42.01, if Tenant elects as provided therein, that some or all of the space so added shall be delivered in shell condition (but absent such notice Landlord will not otherwise be obligated to perform the Shell Work, time being of the essence of such notice), the Landlord shall, with respect to such designated portion(s) of the Premises, perform the Shell Work described in Exhibit B-1 at Landlord’s sole cost and expense prior to the date which is ninety (90) days following the date on which the additional space would be delivered under Section 42.01 but for the Tenant election that the same be delivered in shell condition, and all other work necessary to prepare the space so added under Section 42.01 for Tenant’s occupancy shall be performed at Tenant’s sole cost and expense, in accordance with the applicable provisions of this Lease. Tenant’s taking possession of any portion of the Premises shall be conclusive evidence that such portion of the Premises was in good order and satisfactory condition when Tenant took possession, and except for latent defects not readily apparent from a careful inspection of the Premises without cutting into or otherwise disturbing walls, floors or ceilings and punchlist items of which Tenant has delivered notice to Landlord, excluding items of damage caused by Tenant or its agents, independent contractors or suppliers (subject to the provisions of Section 3.01 of this Lease).  No promise of Landlord to alter, remodel or improve the Property and no representation by Landlord or its agents respecting the condition of the Property has been made to Tenant or relied upon by Tenant other than as may be contained in this Lease or in any written amendment hereto signed by Landlord and Tenant.

 

7.02                        Building Renovations.  Subject to Landlord obtaining Boston Redevelopment Authority and City of Boston approvals, as well as approvals and/or relocation agreements of tenants affected by proposed construction, including without limitation Barneys New York, Banana Republic, Sovereign Bank, BCBG and Karen Clarke, Landlord shall, at Landlord’s sole cost and expense, complete the planned renovations to the Property (not limited to new office lobby on retail level, upgraded sky lobby, conference center and roof deck). Landlord’s intention is that such approvals will be diligently pursued so as to permit completion of such renovations no later than the Commencement Date.

 

7.03                        Landlord’s Work. Prior to the Commencement Date, Landlord shall, at its sole cost and expense substantially complete, in a good and workmanlike manner and in accordance with Legal Requirements, Landlord’s Work as set forth in Exhibit B-2.

 

ARTICLE 8.
 SERVICES

 

8.01                        List of Services. Landlord shall provide the following services, the costs of which are included within Operating Expenses, on all days during the Term, except Sundays and holidays, unless otherwise stated, and subject to all governmental rules, regulations and guidelines applicable thereto:

 

(i)                                     HVAC. Heating and air conditioning in the Premises during the normal heating and air conditioning seasons, from Monday through Friday, during the period from 8 a.m. to 6 p.m. and on Saturday during the period from 8 a.m. to 1 p.m., satisfying the standards set forth in Schedule 8.01 attached hereto. Tenant will pay for all heating

 

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and air conditioning requested and furnished prior to or following such hours at rates to be established from time to time by Landlord and intended by Landlord to reflect, when set, Landlord’s good faith estimate of its cost to deliver such after-hours heating and air conditioning.  Requests for any additional services shall be in writing and delivered to Landlord’s property manager not later than 2 p.m. of the previous day.

 

(ii)                                  Electric. Adequate electrical wiring and facilities for standard building lighting fixtures provided by Landlord and for Tenant’s incidental uses (it being understood that Tenant is to bear the cost of replacement of all lamps, tubes, ballasts and starters for lighting fixtures in the Premises); provided that (a) the connected electrical load for lighting and incidental use equipment does not exceed an average of six (6) watts per rentable square foot of the Premises; (b) the electricity so furnished for incidental uses will be at 277 volts (and may be stepped down at Tenant’s expense in accordance with Tenant’s requirements) and no electrical circuit for the supply of such incidental use will have a current capacity exceeding 20 amperes; and (c) such electricity will be used only for equipment and accessories normal to office usage, including without limitation a server room. If Tenant’s requirements for such electricity (including without limitation supplemental cooling requirements by reason of such uses) are in excess of those set forth in the preceding sentence, Landlord reserves the right to require Tenant to install the conduit, wiring and other equipment necessary to supply electricity for such excess use requirements at Tenant’s expense.

 

(iii)                               Water. Water at temperatures and otherwise as supplied by the City of Boston or other water provider for drinking, lavatory and toilet purposes and to water which Tenant can use to supply its condenser units for supplemental heating, ventilation and air-conditioning as provided in Section 8.3(c) below (but Landlord shall not have an obligation to provide so-called condenser water).

 

(iv)                              Janitorial. Janitorial services as delineated in Exhibit D attached hereto.

 

(v)                                 Window Washing. Window washing of the inside and outside of windows in the Building’s perimeter walls as may be situated in the Premises as delineated in Exhibit D attached hereto.

 

(vi)                              Passenger Elevator. Non-exclusive automatic passenger elevator service twenty-four hours (24) a day, seven (7) days a week, three hundred sixty-five (365) days a year.

 

(vii)                           Freight Elevator and Loading Dock. Non-exclusive freight elevator service to all floors of the Premises and access to the Buildings loading dock, subject to scheduling by Landlord.

 

(viii)                        Access. Access to the Premises twenty-four (24) hours per day, seven (7) days a week, three hundred sixty-five (365) days per year, subject to fire, casualty and other causes beyond Landlord’s control.

 

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8.02                        Landlord Repairs and Maintenance.  Landlord shall operate the Building in a good and quality manner at all times and shall maintain and repair the Building components described in this subsection 8.02 in good condition and repair, consistent with standards for similar office buildings in downtown Boston, Massachusetts which have services, systems and facilities comparable to the Building.  Landlord agrees to keep neat and clean and in good order, condition and repair, and in compliance with all Legal Requirements, the roof, public and common areas, plazas, exterior walls (including exterior glass), foundation, footings, structure and structural elements of the Building and the plumbing, mechanical, electrical, fire safety, sprinkler, heating, ventilation, air conditioning, elevator and telecommunications systems, ducts, pipes and conduits serving the Premises and the other portions of the Building, but nothing herein shall require the Landlord to repair or maintain any portion thereof that is for the exclusive use of Tenant or any tenant or occupant of the Building. All costs incurred by Landlord in the performance of its obligations under this Section 8.02 shall be included in Operating Expenses subject to and in accordance with ARTICLE 5. If (a) Landlord fails to make repairs or replacements which Landlord has undertaken to make under the provisions of this subsection 8.02 or elsewhere in this Lease and (b) by reason of such failure, there is an imminent threat in the Premises to persons or property or Tenant is prevented from conducting its business operations in the Premises, Tenant may elect to take reasonable action within the Premises (and without affecting structure or systems outside of the Premises) solely to remedy the condition threatening such persons or property or Tenant’s business operations. Tenant shall endeavor to give Landlord advance notice of the condition and the action, but if such notice is not reasonable under the circumstances, shall give notice to Landlord as soon as practicable. Tenant shall not have any such right with respect to any condition which Landlord intends to remedy in accordance with a comprehensive plan, intended to manage the necessary repair or replacement, which has been communicated to Tenant. In the event that Tenant remedies such imminent threat or condition preventing the conduct of Tenant’s business in the Premises, Landlord shall reimburse Tenant for all actual out-of-pocket costs reasonably incurred in connection which such repairs completed by Tenant hereunder within thirty (30) days after submission by Tenant to Landlord of a statement of such costs and a request for reimbursement thereof, together with reasonable back up documentation.  In the event Landlord does not, within such thirty (30) day period following the submission of the request for reimbursement and the necessary documentation, make payment of the full amount for which Tenant submitted a request for reimbursement, Tenant may cause the matter to be submitted to arbitration by notice given to Landlord within five (5) business days of the end of the end of the thirty (30) day period, in which event Landlord and Tenant shall, during the ensuing ten (10) business days, attempt to agree on an arbitrator not affiliated with either party (and if they are unable to do so, either party may request that the President of the American Arbitration Association in Boston choose an arbitrator, as promptly as possible, meeting the criteria set forth below; provided, however, the parties shall each have the right during a five (5) business day period following the end of the ten (10) business day period to submit the names of not more than two (2) potential arbitrators meeting the said criteria and if the parties or either of them makes such a submission, the choice of the President of the American Arbitration Association shall be made from the list of potential arbitrators so submitted). The arbitrator shall have a period of ten (10) business days to determine (1) whether Tenant was authorized under this Section 8.02 to make the repairs made by it and (2) if so authorized the amount which Tenant is entitled to be reimbursed consistent with the rights of Tenant and the obligations of Landlord under this Section 8.02. If any amount 

 

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is owed by Landlord in addition to any amount which Landlord may have theretofore paid to Tenant with respect hereto, Landlord shall pay such amount within thirty (30) days following the decision of the arbitrator and if Landlord does not make such payment within such thirty (30) day period, Tenant may offset the amount the arbitrator determined was due to Tenant, less any portion thereof theretofore paid to Tenant, from Base Rent thereafter becoming due under this Lease. The arbitrator shall be a person with knowledge of commercial office property management (and not less than ten (10) years’ experience in the field of property management) sufficient to enable such person (a) to assess the requirement for Tenant having taken the actions taken by Tenant and (b) to analyze the cost of the repair work undertaken to assure the reasonability thereof. The expenses of the arbitrator shall be borne equally by the Landlord and the Tenant.

 

8.03                        Interruption of Services. Tenant agrees that Landlord shall not be liable in damages, by abatement of Rent or otherwise, for failure to furnish or delay in furnishing any service, or for any diminution in the quality or quantity thereof, when such failure or delay or diminution is occasioned, in whole or in part, by repairs, renewals, or improvements, by any strike, lockout or other labor trouble, by inability to secure electricity, gas, water, or other fuel at the Building after reasonable effort so to do, by any accident or casualty whatsoever, by act or default of Tenant or other parties, or by any other cause beyond Landlord’s reasonable control; and such failures or delays or diminution (any such event, a “Service Failure”) shall never be deemed to constitute an eviction or disturbance of Tenant’s use and possession of the Premises or relieve Tenant from paying Rent or performing any of its obligations under this Lease. Notwithstanding the foregoing, if the Premises, or a material portion of the Premises, is made untenantable (that is, Tenant cannot conduct its business in such portion) or inaccessible for a period in excess of five (5) consecutive business days as a result of the Service Failure that has been caused by Landlord’s act or omission with respect to matters within Landlord’s control (“Controlled Service Failure”), then Tenant, as its sole remedy, shall be entitled to receive an abatement of Rent payable hereunder during the period beginning on the sixth (61 ) consecutive business day of the Controlled Service Failure and ending on the day the service has been restored. If the entire Premises has not been rendered untenantable or inaccessible by such a Controlled Service Failure, the amount of abatement that Tenant is entitled to receive by reason of such a Controlled Service Failure shall be prorated based upon the percentage of the Premises rendered untenantable or inaccessible and not used by Tenant. Notwithstanding the foregoing, business days during which the Premises or a material portion thereof are untenantable or inaccessible, or during which all or nearly all the Premises are unusable, by reason of a Service Failure which arises from a fire or other casualty which is covered by the provisions of ARTICLE 13 shall in no event be considered in determining whether Tenant is entitled to an abatement of Rent under this Section 8.03 (in such event the provisions of Section 13.01 shall govern Tenant’s rights). In no event shall Landlord be liable to Tenant for any loss or damage, including the theft of Tenant’s property, arising out of or in connection with the failure of any security services, personnel or equipment.

 

8.04                        Additional Services.  Landlord may, but shall have no obligation to, provide such extra or additional services (beyond the services described in Section 8.01) as it is reasonably possible for Landlord to provide, and as Tenant may from time to time request in writing, within a reasonable period after the time such extra or additional services are requested; furthermore, if extra or additional elevator or heating and air conditioning services are requested, Landlord shall 

 

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not be required to furnish any such services unless Landlord has received advance notice from Tenant requesting such services prior to 2:00 p.m. on the business day next preceding the day with respect to which such services are requested.  Failure by Landlord to furnish such services shall not constitute an actual or constructive eviction, in whole or in part, or entitle Tenant to any abatement or diminution of Rent, or relieve Tenant from any of its obligations under this Lease, or impose any liability upon Landlord or its agents by reason of inconvenience or annoyance to Tenant, or injury to or interruption of Tenant’s business or otherwise. Tenant shall pay for such extra or additional services at Landlord’s scheduled rate therefor from time to time as quoted to other tenants of the Office Section, or if there be no scheduled rate, then at Landlord’s cost in providing them, such amount to be considered additional Rent hereunder. All charges for such extra or additional services shall be due and payable at the same time as the installment of Base Rent with which they are billed, or if billed separately, shall be due and payable within ten (10) days after Tenant receives Landlord’s bill therefor. Any such billings for extra or additional services shall include an itemization of the extra or additional services rendered and the charge for each such service.

 

8.05                        Energy Conservation.  Notwithstanding anything to the contrary in this ARTICLE 8 or elsewhere in this Lease, Landlord shall have the right to institute such policies, programs and measures as may be necessary or desirable, in Landlord’s discretion, for the conservation and/or preservation of energy or energy related services if consistent with similar programs instituted generally in first-class office buildings in Boston, or as may be required to comply with any applicable codes, rules and regulations, whether mandatory or voluntary.

 

ARTICLE 9.
 COMPLIANCE WITH LAWS; REPAIRS; HAZARDOUS MATERIALS

 

9.01                        Compliance With Laws. Subject to the following provisions, each of Landlord, in the Base Building Work and in performance of its obligations under Section 8.02, and in its use, ownership, operation and management of the Property, and Tenant, in the Tenant Improvements and any other work it performs in the Building and in its use and occupancy of the Premises, shall comply in all material respects with the requirements of all applicable governmental laws, codes, ordinances, rules and regulations, whether now or hereinafter enacted, including without limitation the Americans With Disabilities Act (42 U.S.C. §12101 et. seq.) and the regulations and accessibility guidelines issued pursuant thereto and the laws set forth in M.G.L. Ch. 22, §13A and the regulations promulgated thereunder (Architectural Access Board Regulations) (collectively, “Legal Requirements”), to the extent that the same are applicable to the Building, and with any and all directions, rules and regulations of Boards of Fire Underwriters, Rating Boards or the like (or successor agencies); and Tenant shall obtain and maintain all permits, licenses and the like, required by all applicable laws in respect of Tenant’s particular use and occupancy of the Premises, as opposed to office use in general. Landlord will cooperate with Tenant’s efforts to obtain any such permits, licenses and the like, at no cost to Landlord. Notwithstanding the foregoing, in no event shall Tenant be responsible or liable for, or obligated to cure, any noncompliance with Legal Requirements existing on or before the Commencement Date, nor shall Tenant be responsible for any future violation of Legal Requirements that results in whole or in part, from Landlord’s acts or omissions or improvements to the Property. Furthermore, Tenant’s obligations under this Section 9.01 shall not include making any structural repairs or improvements to the Building.

 

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9.02                        Repairs. Subject to Section 12.01, Tenant will, at Tenant’s own expense, keep the Premises, including all improvements, fixtures and furnishings therein, in good order, repair and condition at all times during the Term, and, except as to damage resulting from ordinary wear and tear, Tenant shall promptly and adequately repair all damage to the Premises and replace or repair all damaged or broken glass, fixtures and appurtenances, under the supervision and subject to the approval of Landlord, and within any reasonable period of time specified by Landlord; provided, however, as to any damage resulting from casualty, Tenant shall have no responsibility for repair or replacement which is Landlord’s responsibility under this Lease. If Tenant does not do so, Landlord may, but shall not be obligated to, make such repairs and replacements, and Tenant shall pay Landlord the cost thereof, including a percentage of the cost thereof (to be uniformly established for the Office Section) sufficient to reimburse Landlord for all overhead, general conditions, fees and other costs or expenses arising from Landlord’s involvement with such repairs and replacements forthwith upon being billed for same. Landlord may, but shall not be required to, enter the Premises at all reasonable times on reasonable advance notice (and at any time in emergency situations, with such notice as is commensurate with the emergency) to make such repairs, alterations, improvements and additions to the Premises, to the Office Section or the Building or to any equipment located in the Office Section or the Building as Landlord shall desire or deem necessary or as Landlord may be required to do by governmental authority or court order or decree.

 

9.03                        Hazardous Materials.

 

(i)                                     Tenant shall not (either with or without negligence) cause or permit the escape, disposal or release of any biologically or chemically active or hazardous substances, or materials (collectively the “Hazardous Materials”). Tenant shall not allow the storage or use of Hazardous Materials in any manner not sanctioned by law or by the highest standards prevailing in the industry for the storage and use of such Hazardous Materials, nor allow to be brought into the Building any Hazardous Materials except to use in the ordinary course of Tenant’s business, and then only after written notice is given to Landlord of the identity of Hazardous Materials. Without limitation, Hazardous Materials shall include those described in the Comprehensive Environmental Response, Compensation and Liability Act of 1980, as amended, 42 U.S.C. Section 9601 et seq., the Resource Conservation and Recovery Act, as amended, 42 U.S.C. Section 6901 et seq., any applicable state or local laws and the regulations adopted under these acts; provided, however, Hazardous Materials shall not include customary office and cleaning supplies, in reasonable quantities which are maintained and stored in accordance with manufacturer’s specification for maintenance and storage in an office environment.  If any lender or governmental agency shall ever require testing to ascertain whether or not there has been any release of Hazardous Materials, then the reasonable costs thereof shall be reimbursed by Tenant to Landlord upon demand as additional charges if such requirement applies to the Premises.  In addition, Tenant shall execute affidavits, representations and the like from time to time at Landlord’s request concerning Tenant’s best knowledge and belief regarding the presence of Hazardous Materials on the Premises. In all events, Tenant shall indemnify Landlord in the manner elsewhere provided in this Lease from any release of Hazardous Materials on the Premises occurring while Tenant is in possession or elsewhere if caused by Tenant or persons 

 

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acting under Tenant. The within covenants shall survive the expiration or earlier termination of the Term.

 

(ii)                                  Landlord hereby represents to Tenant that, to the best of its knowledge, there are no Hazardous Materials present on, in or under the land on which the Building is located that require investigation or remediation under applicable law. Tenant shall have no responsibility for and shall not assume or be deemed to have assumed any liability of Landlord on account of oil or Hazardous Materials on, at or in the Property prior to the date Tenant takes possession of the Premises. In no event, unless caused by Tenant or persons for whose conduct Tenant is responsible, shall Tenant be liable for any release of oil or hazardous substances occurring or accruing after the Term. Landlord shall indemnify, defend and hold Tenant harmless from and against any claims, damages, costs and liabilities, including consultants’ fees and reasonable attorneys fees, arising out of Landlord’s use, generation, storage or disposal of hazardous substances or oil on, under or about, or transported to or from, the Building or the Land. Landlord’s indemnification obligations under this Section 9.03(ii) shall survive the expiration or earlier termination of this Lease.

 

ARTICLE 10.
 ADDITIONS AND ALTERATIONS

 

10.01                 Consent Required. Tenant shall not, without the prior written consent of Landlord, make any alterations, improvements or additions (sometimes referred to in this Lease, collectively, as “Alterations”) to the Premises, which consent shall not be unreasonably, withheld, conditioned or delayed. Alterations to be made to the Initial Premises prior to the commencement of the Term or made initially to SSB Expansion Space and Early Expansion Space (as those terms are defined under Section 42.01) are referred to in this Lease as the “Initial Alterations”. If Landlord consents to said alterations, improvements or additions, it may impose such conditions with respect thereto as Landlord deems reasonable, including, without limitation, requiring Tenant to provide reasonable assurance that all costs incurred with respect to such work shall be fully and timely paid, insurance against liabilities which may arise out of such work, and plans and specifications plus permits necessary for such work, requiring Tenant to perform such work at times reasonably designated by Landlord; provided, however, such conditions shall not require Tenant to construct Initial Alterations during particular hours (although reasonable rules and regulations relating to regulating noise, odor and vibration resulting from such construction may be imposed).  Notwithstanding the foregoing, Landlord’s consent shall not be necessary with respect to Alterations that do not affect the Building systems or structure or the roof skin and (a) are cosmetic in nature (such as paint, carpet and attached furniture) or (b) which in the aggregate (together with any reasonably related set of Alterations) cost less than $50,000.00 plus the costs of painting and carpeting related to the particular Alterations. Tenant shall have the right to hire its own contractors, subject to Landlord’s approval, which approval shall not be unreasonably withheld, conditioned or delayed; provided, that it is agreed that it shall not be unreasonable for Landlord to withhold consent to work in the Building by any contractor with whom Landlord has had quality or cooperation issues in the past. It is further understood that Landlord’s consent to the hiring by Tenant of Tenant’s own contractors may be withheld if Landlord’s permitting such hiring might reasonably be expected to adversely affect other construction in the Building or might reasonably be expected to result in 

 

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a material interruption of services provided to tenants of the Building. Any contractor hired by Tenant shall be appropriately insured as reasonably determined by Landlord. Tenant shall promptly pay to the contractor, when due, the cost of all such work and of all decorating required by reason thereof. In connection with seeking Landlord’s approval, plans and specifications regarding proposed Alterations shall be in such form and with such content as Landlord shall reasonably require and Tenant shall, in addition to all other expenses which Tenant is obligated to pay to Landlord hereunder, reimburse Landlord for all sums reasonably expended for unaffiliated third party consultants’ examination and approval of the architectural and working plans and specifications for the Alterations and, except in connection with the Initial Alterations to the Premises, shall pay Landlord for use of elevators and hoists during the making of the Alterations; provided, however, that Landlord shall have the exclusive right to determine the scheduling of (and shall cooperate reasonably with Tenant to coordinate) the use of such elevators and hoists which shall not be unreasonably withheld, conditioned or delayed.  Landlord shall review and approve (or provide comments on) Tenant’s plans and specifications no later than ten (10) business days after submission.  If Landlord fails to approve, object to or provide comments on Tenant’s submission of a set of plans and specifications within such ten (10) business day period, then Tenant may deliver a notice to Landlord stating that if Landlord fails to approve, object to or provide comments on such plans within two (2) business days following the delivery of such notice, and in such event, if Landlord fails to so approve, object to or provide comments on such plans within such two (2) business day period, Landlord shall be deemed to have approved the submitted set of plans and specifications. If any of the plans and specifications are disapproved by Landlord, Landlord shall provide Tenant with reasonably detailed reasons for such disapproval and the foregoing process shall be repeated until all of the plans and specifications shall have been approved or deemed approved by Landlord, except that Landlord’s approval of any revisions to the plans and specifications submitted in response to Landlord’s comments or objections shall be deemed given unless Landlord submits written comments or objections to Tenant within five (5) business days after receipt thereof, subject to the delivery of a second notice and Landlord’s failure to approve, object to or provide comments within two (2) business days following Landlord’s receipt thereof. Except for the reimbursement for third party consultants at commercially reasonable rates, Tenant will not be charged any Landlord supervisory, management or review fees in connection with any Alterations.  Landlord’s architect and base building contractor will reasonably cooperate with Tenant to ensure timely completion of Alterations.  Upon completion of such work Tenant shall deliver to Landlord, if payment is made directly to contractors, evidence of payment, contractors’ affidavits and full and final waivers of all liens for labor, services or materials, all in form satisfactory to Landlord. Tenant shall defend and hold Landlord, any mortgagee, the DOT (defined in Article 33U), the Property and the Building harmless from all costs, damages, liens and expenses related to such work. All work done by Tenant or its contractors pursuant to ARTICLES 9 or 10 shall be done in a good and workmanlike manner using only good grades of materials and shall comply with all insurance requirements and all applicable laws and ordinances and rules and regulations of governmental departments or agencies.

 

10.02                 Improvements are Landlord’s Property. All alterations, improvements and additions to the Premises, whether temporary or permanent in character, made or paid for by Landlord or Tenant, shall without compensation to Tenant become Landlord’s property at the termination of this Lease by lapse of time or otherwise; provided, however, all articles of personal property and all business fixtures, machinery and equipment and furniture owned or

 

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installed by Tenant solely at its expense in the Premises (all of which are herein referred to as “Tenant’s Property”) shall remain the property of Tenant and may be removed by Tenant or any person claiming under Tenant at any time or times during the Term and shall be removed by Tenant no later than the expiration or earlier termination of the Term. Any items of Tenant’s Property (except money, securities and like valuables) which remain on the Premises after the Termination Date or earlier termination of the Term shall be deemed to have been abandoned and in such case may either be retained by Landlord as its property or may be removed by Landlord and disposed of at Tenant’s expense (this provision shall survive the termination of this Lease).

 

10.03                 Lines. Tenant may install, maintain, replace, remove or use any communications or computer wires, cables and related devices and fiber optic cabling (collectively the “Lines”) at the Property in or serving the Premises, provided:  (a) Tenant shall obtain Landlord’s prior written consent, use an experienced and qualified contractor approved in writing by Landlord in accordance with, and subject to, the procedures and standards for approvals of contractors performing Alterations, and comply with all of the other provisions of ARTICLE 10.01, (b) any such installation, maintenance, replacement, removal or use shall not interfere with the use of any then existing Lines at the Building, (c) an acceptable number of spare Lines and space for additional Lines shall be maintained for existing and future occupants of the Building, as determined in Landlord’s reasonable opinion, (d) if Tenant at any time uses any equipment that may create an electromagnetic field exceeding the normal insulation ratings or ordinary twisted pair riser cable or cause radiation higher than normal background radiation, the Lines therefor (including riser cables) shall be appropriately insulated to prevent such excessive electromagnetic fields or radiation, (e) Tenant’s rights shall be subject to the rights of any regulated telephone company, and (f) Tenant shall pay all costs in connection therewith. Landlord reserves the right to require that Tenant remove any Lines located in or serving the Premises which are installed in violation of these provisions, or which are at any time in violation of any laws, ordinances, rules or regulations or represent a dangerous or potentially dangerous condition (whether such Lines were installed by Tenant or any other party claiming under Tenant), within fifteen (15) days after written notice.

 

Landlord may (but shall not have the obligation to): (i) install new Lines at the Building, (ii) create additional space for Lines at the Property, and (iii) reasonably direct, monitor and/or supervise the installation, maintenance, replacement and removal of, the allocation and periodic re-allocation of available space (if any) for, and the allocation of excess capacity (if any) on, any Lines now or hereafter installed at the Building by Landlord, Tenant or any other party (but Landlord shall have no right to monitor or control the information transmitted through such Lines). Such rights shall not be in limitation of other rights that may be available to Landlord by law or otherwise. If Landlord exercises any such rights, Landlord may charge Tenant for the costs attributable to Tenant, or may include those costs and all other costs in Operating Expenses under ARTICLE 5 (including without limitation, costs for acquiring and installing Lines and risers to accommodate new Lines and spare Lines, any associated computerized system and software for maintaining records of Line connections, and the fees of any consulting engineers and other experts); provided, any capital expenditures included in Operating Expenses hereunder shall be amortized (together with reasonable finance charges) as provided in subsection 5.02(v).

 

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Tenant shall not be required to remove any or all Lines installed by or for Tenant within or serving the Premises upon termination of this Lease. All Lines shall become the property of Landlord (without payment by Landlord) upon termination of this Lease. Tenant shall not, without the prior written consent of Landlord in each instance, grant to any third party a security interest or lien in or on the Lines, and any such security interest or lien granted without Landlord’s written consent shall be null and void. Except to the extent arising from the intentional or negligent acts of Landlord or Landlord’s agents or employees, Landlord shall have no liability for damages arising from, and Landlord does not warrant that the Tenant’s use of any Lines will be free from the following (collectively called “Line Problems”): (x) any eavesdropping or wire-tapping by unauthorized parties, (y) any failure of any Lines to satisfy Tenant’s requirements, or (z) any shortages, failures, variations, interruptions, disconnections, loss or damage caused by the installation, maintenance, replacement, use or removal of Lines by or for other tenants or occupants at the Building, by any failure of the environmental conditions or the power supply for the Building to conform to any requirements for the Lines or any associated equipment, or any other problems associated with any Lines by any other cause. Under no circumstances shall any Line Problems be deemed an actual or constructive eviction of Tenant, render Landlord liable to Tenant for abatement of Rent, or relieve Tenant from performance of Tenant’s obligations under this Lease.  Landlord in no event shall be liable for damages by reason of loss of profits, business interruption or other consequential damage arising from any Line Problems.

 

10.04                 Specialty Alterations.  Subject to the foregoing provisions, Tenant shall have the right to construct within the Premises computer rooms and any other specialized facilities, and may connect floors of the Premises by the installation of interconnecting stairs, as long as any such work does not impact the structural integrity of the Building; provided, however, if Tenant elects to construct any such installations or additions, or any other installations or additions which are not typical office-related leasehold improvements that require substantial or unusual expense to re-adapt the Premises for normal office purposes (collectively, “Specialty Alterations”), Landlord shall notify Tenant of Tenant’s removal or restoration obligations with respect to any Specialty Alterations at the time of Landlord’s approval of such Specialty Alterations, and Tenant shall be obligated to remove any identified Specialty Alterations at the expiration of the Term; provided, however, Landlord hereby agrees that Tenant shall not be required to remove or restore any of Tenant’s Initial Alterations (or Alterations that were comparable replacements of Initial Alterations) whether or not the same are Specialty Alterations.

 

ARTICLE 11.
 COVENANT AGAINST LIENS

 

Tenant has no authority or power to cause or permit any lien or encumbrance of any kind whatsoever, whether created by act of Tenant, operation of law or otherwise, to attach to or be placed upon the Property, the Building or the Premises, or to affect any estate or interest of Landlord, Landlord’s lessor, any mortgagee or the DOT (defined in ARTICLE 33U). Tenant covenants and agrees not to suffer or permit any lien of mechanics, materialmen or others to be placed against the Property, the Building or the Premises, or to affect any estate or interest of Landlord, Landlord’s lessor, any mortgagee or the DOT, with respect to work or services claimed to have been performed for or materials claimed to have been furnished to Tenant or the 

 

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Premises, and, in case of any such lien attaching or notice of any lien, or claim therefor being asserted, Tenant covenants and agrees to cause same to be released and removed of record, by payment or bonding over within thirty (30) days after Tenant’s actual knowledge thereof. In the event that such lien is not so released and removed, Landlord, at its sole option, may take all action necessary to release and remove such lien (without any duty to investigate the validity thereof) and Tenant shall promptly upon notice reimburse Landlord for all sums, costs and expenses (including reasonable attorneys’ fees) incurred by Landlord in connection therewith.

 

ARTICLE 12.
 INSURANCE

 

12.01                 Waiver of Subrogation.  Landlord and Tenant each hereby waive any and every claim for recovery from the other for any and all loss of or damage to the Property, Building or the Premises or to the contents thereof, which loss or damage is covered by valid and collectible physical damage insurance policies, to the extent that such loss or damage is recoverable under said insurance policies. Inasmuch as this mutual waiver will preclude the assignment of any such claim by subrogation (or otherwise) to an insurance company (or any other person), Landlord and Tenant each agree to give to each insurance company which has issued, or in the future may issue, to its policies of physical damage insurance, written notice of the terms of this mutual waiver, and to have said insurance policies properly endorsed, if necessary, to prevent the invalidation of said insurance coverage by reason of said waiver. Tenant’s waiver of subrogation as hereinabove set forth shall also run to the benefit of and extend to Landlord’s lessor and the DOT.

 

12.02                 Coverage.  Tenant shall purchase and maintain insurance during the entire Term for the benefit of Tenant, and, except for personal property insurance maintained by Tenant other than with respect to leasehold improvements, for the benefit of Landlord, the DOT and any mortgagee of which Tenant is given notice (as their respective interests may appear) (collectively, the “Insured Landlord Parties”) with terms, coverages and in companies reasonably satisfactory to Landlord, and with such increases in limits as Landlord may from time to time request and which are consistent with increases required of similar office tenants in Class A office buildings in Boston, but initially Tenant shall maintain the following coverages in the following amounts:

 

(i)                                     Commercial General Liability. Commercial General Liability Insurance covering the Insured Landlord Parties and Landlord’s management agent for claims of bodily injury, personal injury and property damage arising out of Tenant’s operations, assumed liabilities or use of the Premises, for limits of liability not less than:

 

	
Bodily Injury and Property
    	
 
    	
$3,000,000 each occurrence
    
	
 
    	
 
    	
 
    
	
Damage Liability
    	
 
    	
$3,000,000 annual aggregate
    
	
 
    	
 
    	
 
    
	
Personal Injury Liability
    	
 
    	
$3,000,000 annual aggregate
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
0% Insured’s participation
    

 

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(ii)                                  Comprehensive Automobile. Comprehensive Automobile Insurance covering all owned, non-owned and hired automobiles of Tenant including the loading and unloading of any automobile with limits of liability not less than:

 

	
Bodily Injury and Property
    	
 
    	
$3,000,000 each occurrence
    
	
 
    	
 
    	
 
    
	
Damage Liability
    	
 
    	
$3,000,000 annual aggregate
    

 

(iii)                               Physical Damage. Physical Damage Insurance covering all additions, improvements and alterations to the Premises which are beyond the building standard tenant improvements provided by Landlord and all office furniture, trade fixtures, office equipment, merchandise and all other items of Tenant’s property on the Premises. Such insurance shall be written on an “all risks” of physical loss or damage basis, for the full replacement cost value of the covered items and in amounts that meet any coinsurance clauses of the policies of insurance.

 

(iv)                              Improvements and Betterments.  From and after the time Tenant takes control of the Premises for purposes of its construction, Improvements and Betterments Insurance completed value (non-reporting) form coverage, including “all-risk” type coverage and coverage against the perils normally covered by a special extended coverage endorsement, collapse, cost of demolition, increased cost of construction and the value of the undamaged portion of the construction being undertaken by Tenant, in customary form for Massachusetts construction projects and to be maintained in such amounts as to afford one hundred percent (100%), non-contributory coverage against loss.

 

Tenant may provide such of the foregoing insurance coverage under a so-called blanket policy providing adequate coverage in Landlord’s reasonable judgment for the properties and risks being covered thereby. In the event Tenant elects to use a blanket policy, Tenant shall specifically notify Landlord thereof and provide such information regarding the properties and risks covered thereby as Landlord shall reasonably request. Tenant may, in addition, satisfy the limits requirements through umbrella coverage written with companies which would satisfy the provisions of this ARTICLE if such companies were providing the underlying coverage hereunder.

 

Tenant shall, prior to the commencement of the Term, furnish to Landlord certificates evidencing such coverage, on ACORD Form 27, which certificates shall state that such insurance coverage may not be changed or canceled without at least thirty (30) days’ prior written notice to Landlord and Tenant and shall name Landlord and Landlord’s management agent as additional insureds (other than with respect to the insurance described in subsection 12.02(iii) above).

 

12.03                 Avoid Action Increasing Rates. Tenant shall comply with all applicable laws and ordinances, all orders and decrees of court and all requirements of other governmental authorities having jurisdiction over the Building and of the applicable rating bureau, and shall not, directly or indirectly, make any use of the Premises which may thereby be prohibited or be dangerous to person or property or which may jeopardize any insurance coverage or may increase the cost of insurance or require additional insurance coverage. If by reason of the failure of Tenant to

 

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comply with the provisions of this Section 12.03, (i) any insurance coverage is jeopardized, or (ii) insurance premiums are increased, Landlord shall have the option to require Tenant to make immediate payment of the increased insurance premium and if Tenant fails to do so, such failure shall constitute a default in the payment of Rent due under this Lease.

 

12.04                 Landlord’s Insurance.  Landlord agrees to maintain in full force and effect throughout the Term (i) Commercial General Liability Coverage with respect to the Property, and the conduct and operation of its business therein, with combined commercial general liability and umbrella coverage limits of not less than Ten Million Dollars ($10,000,000.00) for bodily injury or death and property damage in any one occurrence and shall name Tenant as an additional insured; and (ii) Cause of Loss Special Form property insurance (including commercially reasonable amounts of loss of rents coverage, as long as such coverage is available at commercially reasonable rates) with respect to the Building and the Building’s equipment and personal property, but excluding Tenant’s property and any alterations made by Tenant, in an amount equal to the replacement cost of the equipment and personal property that Landlord is obligated to insure hereunder.

 

ARTICLE 13.
 FIRE OR OTHER CASUALTY

 

13.01                 Effect of Casualty.  ARTICLE 9 hereof notwithstanding, if the Premises or the access thereto shall be damaged by fire or other casualty and if such damage does not render all or a material portion of the Premises untenantable and if the Premises, the Office Section or the Building are not substantially damaged (as hereinafter defined), then Landlord shall, subject to building and zoning laws then applicable, repair and restore the same with reasonable promptness, subject to reasonable delays for insurance adjustments and delays caused by matters beyond Landlord’s reasonable control, but shall not be obligated to expend therefor an amount in excess of the proceeds of insurance recovered with respect thereto plus any associated deductible amount. If all or a material portion of the Premises are rendered untenantable by fire or other casualty, or if the Premises, the Office Section or the Building are substantially damaged by fire or other casualty (the term “substantially damaged” meaning damage of such a character that the same cannot, in the ordinary course, reasonably be expected to be repaired within one hundred eighty (180) days from the time that repair work would commence) and Landlord is terminating all other leases in Tower IV, then, in either such case, Landlord shall have the right to terminate this Lease by giving notice of Landlord’s election so to do not later than one hundred twenty (120) days after Landlord has ascertained all information required by Landlord to determine whether or not to terminate this Lease, including without limitation the amount of insurance proceeds which are available to Landlord for restoration. If all or a material portion of the Premises or access thereto are so damaged by fire or other casualty that the Premises are rendered untenantable (reasonable commercial access to the Premises being necessary for the Premises to be “tenantable”) for the operation of Tenant’s business for a period reasonably estimated by Landlord to exceed two hundred forty (240) days or if the damage is not in fact repaired so that the Premises are tenantable for the operation of Tenant’s business within such two hundred forty (240) day period, then Tenant shall have the right to terminate this Lease by giving notice of Tenant’s election to terminate not later than thirty (30) days after (a) receiving notice from Landlord that the period for repair will exceed two hundred forty (240) days or (b) the end of such two hundred forty (240) day period if the Premises are not in fact tenantable at

 

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the end of such period. In the event a party entitled to do so gives such termination notice, this Lease shall terminate (with appropriate proration(s) of Rent being made for Tenant’s possession of the tenantable portion of the Premises after the date of such damage) as of the date specified in such notice (but in no event sooner than thirty (30) days after the date of such notice) with the same force and effect as if the date specified were the date originally established as the expiration date hereof.  Except as aforesaid, Landlord shall have no liability to Tenant, and except as specifically provided above, Tenant shall not be entitled to terminate this Lease by virtue of any delays in completion of such repairs and restoration.  Further, in the event this Lease is not terminated, Landlord shall not be obligated to restore any portion of the Office Section or the Building outside of the Premises which is not necessary for reasonable access to and egress from the Premises.  Rent shall abate on those portions of the Premises as are, from time to time, untenantable as a result of such damage.

 

13.02                 Intentionally Omitted.

 

13.03                 Responsibility for Reconstruction of Improvements.  Notwithstanding anything to the contrary herein set forth, Landlord shall have no duty pursuant to this ARTICLE 13 to repair or restore any portion of the alterations, additions or improvements in the Premises or the decorations hereto except to the extent that such alterations additions, improvements and decorations were paid by requisitions from any allowance provided by Landlord to Tenant and only to the extent of the insurance proceeds with respect thereto paid to Landlord by Tenant or its insurers. If Tenant desires any other or additional repairs or restoration, the same shall be done at Tenant’s sole cost and expense subject to all of the provisions of ARTICLE 9 and ARTICLE 10 hereof. Tenant acknowledges that Landlord shall be entitled to the full proceeds of any insurance coverage, whether carried by Landlord or Tenant, for damage to alterations, additions, improvements or decorations provided by Landlord either directly or through an allowance to Tenant.

 

ARTICLE 14.
 WAIVER OF CLAIMS -INDEMNIFICATION

 

14.01                 Tenant’s Indemnification. To the extent not prohibited by law, Landlord, its partners, its managing agent, Landlord’s lessor, any mortgagee, the DOT and their respective officers, agents, servants and employees shall not be liable for any damage either to person or property or resulting from the loss of use thereof sustained by Tenant or by other persons due to the Building or any part thereof or any appurtenances thereof becoming out of repair, or due to the happening of any accident or event in or about the Office Section, the Premises or the Building, or due to any act or neglect of any tenant or occupant of the Office Section, the Building or of any other person or entity. This provision shall apply particularly, but not exclusively, to damage caused by gas, electricity, snow, frost, steam, sewage, sewer gas or odors, fire, water, noise, vibration, fumes or by the bursting or leaking of pipes, faucets, sprinklers, plumbing fixtures and windows, and shall apply without distinction as to the person whose act or neglect was responsible for the damage and whether the damage was due to any of the causes specifically enumerated above or to some other cause of an entirely different kind. Tenant further agrees that all personal property upon the Premises, or upon loading docks, receiving and holding areas, or freight elevators of the Building shall be at the risk of Tenant only, and that Landlord shall not be liable for any loss or damage thereto or theft thereof. Without limitation of

 

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any other provisions hereof, Tenant agrees to defend, protect, indemnify and save harmless Landlord, Landlord’s lessor, any mortgagee and the DOT from and against all liability to third parties which arose (or which were claimed to have arisen) within or without the Premises during the Term of this Lease or out of acts or omissions of Tenant and its servants, agents, employees, contractors, suppliers, workers and invitees, except to the extent such liability arises from the negligence of Landlord, its property manager or its agents. The foregoing indemnity shall survive the expiration or earlier termination of this Lease.

 

14.02                 Landlord’s Indemnification. To the maximum extent this agreement may be made effective according to law, Landlord agrees to indemnify and save harmless Tenant from and against all liabilities for claims by third parties arising from any accident, injury or damage to any person, or to the property of any person occurring on the Property, including any accident, injury or damage in connection with the Landlord’s Work, where such accident, damage or injury results from negligence of Landlord, its property manager or Landlord’s agents, or from a breach by Landlord of its representations and warranties set forth in this Lease. The foregoing indemnity shall survive the expiration or earlier termination of this Lease.

 

ARTICLE 15.
 NONWAIVER

 

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

 

ARTICLE 16.
 CONDEMNATION

 

If the Property, the Building or any portion thereof shall be taken or condemned by any competent authority for any public or quasi-public use or purpose (a “taking”), or if the configuration of any roadway, street, alley, or railroad line adjacent to or beneath the Building is changed by any competent authority and such taking or change in configuration makes it necessary or desirable to remodel or reconstruct the Building or any part thereof, Landlord shall have the right, exercisable at its sole discretion, to cancel this Lease upon not less than ninety (90) days’ notice prior to the date of cancellation designated in the notice. No money or other consideration shall be payable by Landlord to Tenant for the right of cancellation and Tenant shall have no right to share in the condemnation award or in any judgment for damages caused by such taking or change in configuration; provided, however, nothing herein shall prevent Tenant from pursuing a judgment from the taking authority for its moving expenses, the unamortized costs of improvements paid for by Tenant (and not paid by Landlord allowance) and

 

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trade fixtures so long as pursued in a separate action which will not result in a reduction of any award otherwise payable to Landlord (except for the cost of such Tenant’s trade fixtures, unamortized improvements (not paid by allowance) or the Tenant’s expense of moving that might otherwise have been paid to Landlord).  In the event that any part of the Premises shall be taken by any public authority or for any public use and the remainder, even after restoration, would not be reasonably suitable for Tenant’s use, in Tenant’s bona fide business judgment, or in the event that a taking results in a permanent loss of adequate parking or a permanent deprivation of all reasonable commercial access to the Premises, then this Lease may be terminated at the election of Tenant, which election shall be made by giving of notice by Tenant to Landlord within thirty (30) days after the date of the taking.

 

ARTICLE 17.
 ASSIGNMENT AND SUBLETTING

 

17.01                 No Transfer Without Consent. Tenant shall not, without the prior written consent of Landlord (which consent shall not be unreasonably conditioned, delayed or withheld), (i) assign, convey or mortgage this Lease or any interest hereunder; (ii) permit to occur or exist any assignment of this Lease, voluntarily or by operation of law; (iii) sublet the Premises or any part thereof; or (iv) permit the occupancy of the Premises by any parties other than Tenant, its affiliates and their employees.  Any such action (each, a “Transfer’’) on the part of Tenant to any assignee, sublessee or other transferee (each assignee, sublessee or other transferee being referred to herein as a “Transferee”), without Landlord’s consent to the extent such consent is required, shall be void and of no effect. Landlord’s consent to any Transfer or Landlord’s election to accept any Transferee as the tenant hereunder and to collect rent from such Transferee shall not release Tenant or any subsequent tenant of the Premises from any covenant or obligation under this Lease. Landlord’s consent to any Transfer shall not constitute a waiver of Landlord’s right to withhold its consent to any future Transfer.

 

Notwithstanding any contrary provision of this Lease, Tenant shall have the right, without the prior consent of Landlord, to assign this Lease and to sublet all or any portion of the leased Premises to any person or entity (a) controlling, controlled by, or under common control with Tenant, (b) acquiring all or substantially all of the assets of Tenant, or (c) with or into which Tenant merges or consolidates, whether by statutory merger, sale of stock, or otherwise (any of the foregoing (a)-(c), a “Related Party Transfer”), so long as (i) the principal purpose of such assignment or sublease is not the acquisition of Tenant’s interest in this Lease by a third party, (ii) the assignment or sublet is not made to circumvent the provisions of this Section 17.01, and (iii) the assignee or successor under (b) or (c) succeeds to all or substantially of Tenant’s business conducted within the Premises immediately prior to such assignment or sublet. In no event shall any business reorganization (e.g., a change in corporate form of Tenant), nor any change in Tenant’s shareholders, partners, or other beneficial owners in the conduct of Tenant’s business, be deemed an assignment of Tenant’s interest in this Lease.

 

Landlord agrees that the Premises may be occupied without the need for any sublease during the Term by any persons or entities which in the aggregate occupy not more than five percent (5%) of the Premises if such persons or entities are during the period of occupancy involved in a then current engagement with Tenant, current consultants to Tenant actively

 

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involved in furnishing consulting services during such period, or a member of Tenant or any affiliate thereof, to whom Tenant is providing courtesy office space.

 

No Transfer or Related Party Transfer shall release the transferor from primary liability with the transferee for all of the Tenant’s obligations under this Lease.

 

The parties hereby agree that it shall be reasonable under this Lease and under any applicable law for Landlord to withhold consent to any proposed Transfer requiring Landlord’s consent where one or more of the following applies (without limitation as to other reasonable grounds for withholding consent, Landlord acknowledging that the rental rate is not a reasonable ground for withholding consent under this Lease): (i) the Transferee is of a character or reputation or engaged in a business which is not consistent with the quality of the Property; (ii) the Transferee intends to use the Premises or a portion thereof for purposes which are not permitted under this Lease; (iii) the Transferee is either (x) a government (or agency or instrumentality thereof), (y) an occupant of the Property (unless Landlord does not have comparable space in the Building that is suitable for use by such occupant), or (z) a prospective tenant of the Property with whom Landlord is actively negotiating at the time Tenant proposes to make the Transfer; (iv) Tenant is in monetary default (or any other default which has continued beyond applicable notice and cure periods) as described in ARTICLE 24; (v) the proposed Transferee’s anticipated use of the Premises involves the generation, storage, use, treatment or disposal of Hazardous Materials in a manner not otherwise permitted by this Lease; (vi) the proposed Transferee is in any way affiliated with organizations which sponsor terrorist organizations regardless of the use to be made of the Premises by the proposed Transferee; (vii) the corridor pattern resulting from demising the sublease space would result in access to leasable space serviced by that corridor being inconsistent with the corridor pattern of a first- class office building; or (viii) in the reasonable judgment of Landlord acting in good faith, such a Transfer would violate any term, condition, covenant or agreement of the Landlord involving the Property.  If Landlord wrongfully withholds its consent to any Transfer, Tenant’s sole and exclusive remedy therefor shall be to seek specific performance of Landlord’s obligation to consent to such Transfer.

 

17.02                 Rent Premium on Transfer. Without limitation of the rights of Landlord hereunder in respect thereto, (i) if there is any assignment of this Lease by Tenant or a subletting or other Transfer of the whole of the Premises (other than a Related Party Transfer, which shall not be subject to the provisions of this Section 17.03) by Tenant, or (ii) if Tenant, as debtor or debtor in possession, or a trustee in bankruptcy for Tenant pursuant to the Bankruptcy Code, 11 U.S.C. 101 et. seq., as amended from time to time (the “Bankruptcy Code”), shall assign this Lease or sublet the Premises, or any part thereof, at a rent or for other consideration which, in any such case, is in excess of the sum of (x) the subleased portion’s pro rata share of the rent payable hereunder by Tenant for the period of the sublease or the amount payable for the assigned space over the remaining term of this Lease with respect thereto, and (y) the Reasonable Transfer Costs (as hereinafter defined), then Tenant shall pay to Landlord, as additional rent, (a) with respect to an assignment of this Lease fifty percent (50%) of the amount by which the total consideration received or to be received by Tenant in connection with the assignment exceeds the Reasonable Transfer Costs and (b) with respect to a sublease, fifty percent (50%) of the amount by which the total consideration received or to be received by Tenant in connection with the sublease exceeds the sum of the rent applicable to the subleased space and the Reasonable Transfer Costs (the

 

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“Sublease Premium”). “ Reasonable Transfer Costs” shall mean any tenant improvement allowance paid or credited to the transferee by Tenant, customary brokerage commissions not reimbursed by the transferee or paid directly by the transferee, legal, advertising and marketing expenses, free rent allowances, alteration costs and expenses of preparation of the Premises (or portion thereof) for the transferee. With respect to an assignment of this Lease, the amount payable to Landlord hereunder shall be paid to Landlord by Tenant as a first charge against the consideration received by Tenant and payment shall be made by Tenant within thirty (30) days of Tenant having received consideration in connection with the assignment (Tenant shall pay the first charge as consideration is received so that if there are installments of consideration, the payment to Landlord shall be made from each installment as such first charge until the full amount due to Landlord shall have been paid). With respect to a sublease, for each month commencing with the first month in which the subtenant pays any consideration to or for the benefit of the Tenant (the “Sublease Start Month”) through the month in which Landlord receives payment or gets other consideration from Tenant in connection with the sublease, Tenant shall pay to Landlord (each such monthly payment to Landlord, an “On-Account Premium Payment”) an amount equal to (a) 50% of (i) the total of all such consideration theretofore paid to or for the benefit of Tenant with respect to the subleasing through the end of such month for which the calculation is being made (the “Calculation Period”) less (ii) the Rent payable by Tenant under this Lease for the Calculation Period less (iii) the Amortized Reasonable Transfer Costs for the Calculation Period, reduced by (b) the total of On-Account Premium Payments theretofore made by Tenant. Tenant shall pay the On-Account Premium Payment due with respect to any calendar month within ten (10) business days following such calendar month. “Amortized Reasonable Transfer Costs” shall mean the Reasonable Transfer Costs (A) divided by the number of calendar months between, and including, the first calendar month with respect to which the subtenant pays any rent to Tenant or provides a benefit to Tenant (such as paying a cost otherwise customarily or legally the responsibility of Tenant) and the last calendar month of the term of the sublease multiplied by (B) the number of calendar months commencing with the first calendar month with respect to which the subtenant paid rent through the calendar month in which the payment due Landlord is being calculated. The provisions of this Section 17.03 shall apply to each and every assignment of this Lease and each and every subletting or other Transfer of all or a portion of the Premises, other than Related Party Transfers, in each case on the terms and conditions set forth herein. Each request by Tenant for permission to assign this Lease or to sublet the whole or any part of the Premises shall be accompanied by a certification of an executive officer of Tenant as to the elements of consideration paid or to be paid by the assignee or subtenant, however characterized, and the time periods with respect to which such payments have been or will be made together with a calculation, based thereon, of the amount due Landlord under this Section 17.02 by reason of the assignment or sublet. For the purposes of this Section 17.03, the consideration paid by the transferee shall mean all Base Rent, Additional Rent or other payments and/or consideration payable by one party to another related to the use and occupancy of all or a portion of the Premises.

 

17.03                 Change in Control. If Tenant is a corporation or a limited liability company (other than a corporation whose stock is traded through a national or regional exchange or over-the- counter), any transaction or series of transactions (including without limitation any dissolution, merger, consolidation or other reorganization of Tenant, or any issuance, sale, gift, transfer or redemption of any capital stock of Tenant, whether voluntary, involuntary or by operation of

 

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law, or any combination of any of the foregoing transactions) resulting in the transfer of control of Tenant, other than by reason of death, shall be deemed to be a Transfer for the purpose of this ARTICLE 17. If Tenant is a partnership, any transaction or series of transactions (including without limitation any withdrawal or admittance of a partner or any change in any partners’ interest in Tenant, whether voluntary, involuntary or by operation of law, or any combination of any of the foregoing transactions) resulting in the transfer of control of Tenant, other than by reason of death, shall be deemed to be a Transfer for purposes of this ARTICLE 17. The term “control” as used in this Section 17.03 means the power to directly or indirectly direct or cause the direction of the management or policies of Tenant.  If Tenant is a corporation or a limited liability company, a change or series of changes in ownership of stock which would result in direct or indirect change in ownership by the stockholders or an affiliated group of stockholders (or members) of less than fifty percent (50%) of the outstanding voting stock of Tenant as of the date of the execution and delivery of this Lease shall not be considered a change of control; provided, however, a sale of part or all of the corporate shares of Tenant resulting in a change in control of Tenant shall not require Landlord’s consent if more than 50% of the voting power is held by twenty-five (25) or more unrelated shareholders or distributed to such number of unrelated shareholders in a public offering registered with the Securities and Exchange Commission.  For purposes of clarity, Landlord acknowledges that although a transaction which results in a change in control may be a Transfer under this Article 17, Landlord’s consent thereto is not required and no amount shall be due under Section 17.02 with respect to any such Transfer which is a Related Party Transfer (although a subsequent change in control of a party who succeeded to an interest in this Lease or the Premises (or a part thereof) in a Related Party Transfer shall require consent and/or payment of an amount under Section 17.02 if such Transfer does not itself constitute a Related party Transfer.

 

ARTICLE 18.
 SURRENDER OF POSSESSION

 

Upon the expiration of the Term or upon the termination of Tenant’s right of possession to all or a portion of the Premises, whether by lapse of time or at the option of Landlord as herein provided, Tenant shall forthwith quietly and peaceably surrender the Premises or portion thereof to Landlord in good order, repair and condition, ordinary wear excepted.  Any interest of Tenant in the alterations, improvements and additions to the Premises made or paid for by Landlord or Tenant shall, without compensation to Tenant, become Landlord’s property at the termination of this Lease by lapse of time or otherwise and if such option is exercised such alterations, improvements and additions shall be relinquished to Landlord in good condition, ordinary wear excepted.  Prior to the termination of the Term or of Tenant’s right of possession Tenant shall remove office furniture, trade fixtures, office equipment and all other items of Tenant’s property on the Premises. Tenant shall pay to Landlord upon demand the cost of repairing any damage to the Premises and to the Building caused by any removal required hereunder.  If Tenant shall fail or refuse to remove any such property from the Premises, Tenant shall be conclusively presumed to have abandoned the same, and title thereto shall thereupon pass to Landlord without any cost either by set-off, credit, allowance or otherwise, and Landlord may at its option accept the title to such property or, at Tenant’s expense, may (i) remove the same or any part in any manner that Landlord shall choose, repairing any damage to the Premises caused by such removal, and (ii) store, destroy or otherwise dispose of the same without incurring liability to Tenant or any other person.

 

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ARTICLE 19.
 HOLDING OVER

 

In addition to performing all of Tenant’s other obligations hereunder, if Tenant retains possession of the Premises or any part thereof after the expiration of the Term, such holding over shall be on the terms and conditions as set forth in this Lease, as far as applicable, except that Tenant shall pay, as a use and occupancy charge with respect to, in addition to all other charges for which Tenant would be liable hereunder if it were occupying during the term of this Lease, during the first thirty (30) days of such holdover 150% of the Base Rent and the Adjustment Amount payable under the terms of this Lease for and with respect to the last full calendar month immediately prior to the expiration of the Term and after such initial thirty (30) day period for each calendar month or portion thereof during which such holdover continues, as a use and occupancy charge with respect to, in addition to all other charges for which Tenant would be liable hereunder if it were occupying during the term of this Lease, an amount equal to 150% of the higher of (x) the Base Rent and the Adjustment Amount payable under the terms of this Lease for and with respect to the last full calendar month immediately prior to the expiration of the Term or (y) one twelfth of the annual fair market rent for the Premises under a one (1) year lease commencing on the day immediately succeeding the last day of the Term. Amounts due as aforesaid shall be prorated for partial months on a per diem basis. Notwithstanding anything to the contrary herein contained, Landlord shall have the right to commence eviction proceedings against Tenant immediately upon any holding over by Tenant in the Premises.

 

In addition, Tenant shall indemnify, defend and hold Landlord harmless from and against any loss, cost or damages (including, without limitation reasonable attorneys’ fees) which Landlord may suffer by reason of any such holdover by Tenant for a period of longer than thirty (30) days. The provisions of this ARTICLE 19 shall not be deemed to limit or constitute a waiver of any other rights or remedies of Landlord provided herein or at law.

 

ARTICLE 20.
 ESTOPPEL CERTIFICATE

 

Tenant agrees that, from time to time upon not less than twenty (20) days’ prior request by Landlord, Landlord’s lessor or any mortgagee, Tenant or Tenant’s duly authorized representative having knowledge of the following facts will deliver to Landlord a statement in writing certifying (i) that this Lease is unmodified (or if there have been modifications, a description of such modifications), (ii) to the best of Tenant’s knowledge, this Lease (as modified if there were modifications) is in full force and effect, (iii) the dates to which Rent and other charges have been paid; (iv) to the best of Tenant’s knowledge, that Landlord is not in default under any provision of this Lease, or, if in default, the nature thereof in detail; (v) if true, that the Premises have been delivered to Tenant by Landlord and accepted by Tenant; (vi) that there are no proceedings pending against Tenant which have been adversely decided and which would affect Tenant’s obligations under this Lease (or if there are such proceedings, identifying such proceedings; (vii) that Tenant has not made a claim against Landlord which has not been resolved or satisfied (or is any such claim has not been resolved or satisfied, stating such claims and its status); and (viii) such further matters as may reasonably be requested by Landlord; it being intended that any such statement may be relied upon by any prospective assignee of Landlord, any mortgagee or prospective mortgagee of the Building, any prospective assignee of

 

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any such mortgagee, or any prospective and/or subsequent purchaser or transferee of all or a part of Landlord’s interest in the Property, the Office Section or the Building, or any other person having an interest therein. Tenant shall execute and deliver whatever additional instruments may reasonably be required for such purposes. Tenant’s failure to deliver any of the foregoing instruments or the statement within twenty (20) days of Landlord’s request therefor in writing shall be deemed to be an acknowledgement that the statements contained therein are true.

 

ARTICLE 21.
 SUBORDINATION

 

This Lease and all rights of Tenant hereunder are subject and subordinate to any mortgage or mortgages, blanket or otherwise, made by Landlord and which do now or may hereafter affect the Property or the Building; and to any and all renewals, modifications, consolidations, replacements and extensions thereof, and to any ground or other lease, or similar instrument now or hereafter placed against the Building; provided that the foregoing subordination shall only be effective as to a mortgagee that has offered to enter into a commercially reasonable subordination, non-disturbance and attornment agreement with Tenant (“SNDA”), and does in fact enter into a SNDA with Tenant if Tenant accepts such offer, under the terms of which (in addition to other commercially reasonable provisions) such Mortgagee shall agree that so long as Tenant is not in default beyond applicable periods of notice and cure of its obligations under this Lease, Tenant’s occupancy under, on and subject to the terms hereof shall not be disturbed. Landlord represents and warrants that as of the date of execution of this Lease, there is no mortgage on the Building or the Property. Tenant shall upon demand at any time or times execute, acknowledge and deliver to Landlord any and all instruments that may be reasonably necessary to subordinate this Lease and all rights of Tenant hereunder to any such mortgage or mortgages or to confirm or evidence such subordination subject to the terms of the SNDA. Each of the parties shall bear its own costs in connection with the subordination and the SNDA. Tenant covenants and agrees, in the event any proceedings are brought for the foreclosure of any mortgage with respect to which it has been delivered a SNDA, to attorn to the purchaser upon any such foreclosure sale if so requested to do by such purchaser, and to recognize such purchaser as the Landlord under this Lease. Tenant agrees to execute and deliver at any time and from time-to-time, upon the request of Landlord or of any holder of such mortgage or of such purchaser, any instrument which may be necessary or appropriate, in the reasonable judgment of the requesting party, in any such foreclosure proceeding or otherwise to evidence such attornment. Tenant waives the provisions of any statute or rule of law, now or hereafter in effect, which may give or purport to give Tenant any right or election to terminate or otherwise adversely affect this Lease, or the obligations of Tenant hereunder in the event any such foreclosure proceeding is brought, prosecuted or completed.  Tenant and Landlord further agree that if so requested by any mortgagee of Landlord, this Lease shall be made superior to any such mortgage and that they will execute such documents as may be required by such mortgagee to effect the superiority of this Lease to such mortgage.

 

Following the execution of this Lease, Landlord shall request and use reasonable efforts to obtain from the DOT a recognition agreement, on commercially reasonable terms, pursuant to which the DOT agrees that so long as Tenant is not in default beyond applicable periods of notice and cure of its obligations under this Lease, Tenant’s occupancy under, on and subject to the terms hereof shall not be disturbed in the event of a termination of the Underlying Lease.

 

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ARTICLE 22.
 CERTAIN RIGHTS RESERVED BY LANDLORD

 

Landlord shall have the following rights (but not obligations), each of which Landlord may exercise without notice to Tenant and without liability to Tenant for damage or injury to property, person or business on account of the exercise thereof, and the exercise of any such rights shall not be deemed to constitute an eviction or disturbance of Tenant’s use or possession of the Premises, and shall not give rise to any claim for set-off or abatement of Rent or any other claim:

 

(i)                                     To change the Building’s name or street address upon not less than one hundred eighty (180) days prior written notice, in which event, Landlord shall reimburse Tenant for all of Tenant’s costs of the type reasonably and customarily incurred by a tenant in connection with changing such name or address on Tenant’s stationary and other office supplies.

 

(ii)                                  To install, affix and maintain any and all signs on the exterior and on the interior of the Building (other than within the Premises).

 

(iii)                               Provided that reasonable access to the Premises shall be maintained and the business of Tenant shall not be interfered with or disrupted unreasonably, to rearrange, relocate, enlarge, reduce, close or change corridors, elevators, stairs, lavatories, doors, lobbies, exits or entrances in or to the Building and to decorate and to make repairs, alterations, additions and improvements, structural or otherwise, in or to the Building or any part thereof, including the Premises, and may erect scaffolding and other structures reasonably required by the character of the work to be performed, and during such operations may upon reasonable notice enter upon the Premises and take into and upon or through any part of the Building, including the Premises, all materials that may be required to make such repairs, alterations, improvements, or additions, and in that connection Landlord may temporarily close public entry ways, other public spaces, stairways, corridors or connecting structures and interrupt or temporarily suspend any services or facilities agreed to be furnished by Landlord all, subject to the provisions of this clause, without the same constituting an eviction of Tenant in whole or in part, and without abatement of Rent by reason of loss or interruption of the business of Tenant or otherwise, and without in any manner rendering Landlord liable for damages or relieving Tenant from performance of Tenant’s obligations under this Lease. Landlord may at its option make any repairs, alterations, improvements and additions in and about the Building and upon reasonable notice in or about the Premises during ordinary business hours and, if Tenant desires to have such work done during other than business hours, Tenant shall pay all overtime and additional expenses resulting therefrom. Landlord’s entry into the Premises shall be accomplished in a manner to minimize interference with the Tenant’s business but such commitment shall not require Landlord to perform such work during other than ordinary business hours.

 

(iv)                              To furnish door keys for the entry door(s) in the Premises at the commencement of this Lease and to retain at all times, and to use in appropriate instances, keys to all doors within and into the Premises and Tenant shall be obligated

 

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should it elect to change the manner in which its Premises are secured to provide Landlord with duplicates of keys, entry cards and with combinations or passwords necessary to allow Landlord and those furnishing services to the Premises in accordance with the terms and conditions of this Lease to access the Premises for such purposes as may be permitted under this Lease. Upon the expiration of the Term or of Tenant’s right of possession, Tenant shall return all keys to Landlord and shall disclose to Landlord the combination of any safes, cabinets or vaults left in the Premises.

 

(v)                                 To approve all window coverings used in the Building which approval shall not be unreasonably withheld, conditioned or delayed, it being understood that window coverings which are visible from outside the Premises may be subject to a standard of uniformity imposed by the Landlord in its reasonable discretion.

 

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

 

(vii)                           To establish reasonable security policies and other controls for the purpose of regulating all property and packages, both personal and otherwise, to be moved into or out of the Building and Premises and all persons using the Building both during and after normal office hours, provided such policies and other controls do not unreasonably interfere with Tenant’s security system and security protocol set forth herein. Without limiting the generality of the foregoing, Landlord may require all persons entering or leaving the Building during such hours as Landlord may from time to time reasonably determine to identify themselves to security personnel by registration or otherwise in accordance with Building security controls, and to establish their right to enter or leave in accordance with the provisions of applicable rules and regulations adopted by Landlord. Landlord shall not be liable in damages for any error with respect to exclusion from the Building of any person. In case of fire, casualty, invasion, insurrection, mob, riot, civil disorder, public excitement or other commotion, or threat thereof, Landlord reserves the right, in its reasonable discretion, to limit or prevent access to the Building during the continuance of the same, shut down elevator service, activate elevator emergency controls or otherwise take such action or preventive measures deemed reasonably necessary by Landlord for the safety or security of the tenants or other occupants of the Building or the protection of the Building and the property in the Building. Tenant agrees to cooperate with any reasonable safety or security program developed by Landlord.

 

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(viii)                        To reasonably regulate delivery and service of supplies and the usage of the loading docks, receiving areas and freight elevators.

 

(ix)                              To show the Premises to prospective tenants at reasonable times in the last eighteen (18) months of the Term (as the same may have been extended as set forth in ARTICLE 41), and, if vacated or abandoned, to show the Premises at any time, and to decorate, remodel, repair, alter or otherwise prepare the Premises for re- occupancy.

 

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

 

(xi)                              To enter the Premises at any reasonable time to inspect the Premises upon twenty-four (24) hours prior written, telephone or fax notice to Tenant except in an emergency, for the purpose of inspecting or making repairs to the Premises or responding to any emergency condition, and Landlord shall also have the right to make access available at all reasonable hours, upon twenty-four (24) hours prior written notice to Tenant except in an emergency, to prospective or existing mortgagees, purchasers or tenants of all or any part of the Property.

 

(xii)                           To grant to any person or to reserve unto itself the exclusive right to conduct any business or render any service in the Building. If Landlord elects to make available to tenants in the Building any services or supplies, or arranges a master contract therefor, Tenant agrees to obtain its requirements, if any, therefor from Landlord or under any such contract, provided that the charges therefor are reasonable.

 

ARTICLE 23.
 RULES AND REGULATIONS

 

Tenant agrees to observe the rules and regulations for the Building attached hereto as Exhibit C and made a part hereof. Landlord shall have the right from time to time to prescribe additional rules and regulations which, in its judgment, may be desirable for the use, entry, operation and management of the Premises, the Office Section and the Building, each of which rules and regulations and any amendments thereto shall become a part of this Lease. Tenant shall comply with all such rules and regulations; provided, however, that such rules and regulations shall not contradict or abrogate any right or privilege herein expressly granted to Tenant.

 

ARTICLE 24.
 LANDLORD’S REMEDIES

 

The following shall each be an “Event of Default” under this Lease: If Tenant shall fail to pay the Rent or any installment thereof within five (5) business days after the date due or shall fail to pay, within five (5) business days after written notice of such failure is given to Tenant, any other sum required to be paid by Tenant under this Lease or under the terms of any other agreement between Landlord and Tenant; or if the interest of Tenant in this Lease shall be levied on under execution or other legal process; or if any voluntary petition in bankruptcy or for corporate re-organization or any similar relief shall be filed by Tenant; or if any involuntary petition in bankruptcy shall be filed against Tenant under any federal or state bankruptcy or

 

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insolvency act and shall not have been dismissed within ninety (90) days from the filing thereof; or if a receiver shall be appointed for Tenant or any of the property of Tenant by any court and such receiver shall not have been dismissed within ninety (90) days from the date of his appointment; or if Tenant shall make an assignment for the benefit of creditors; or if Tenant shall admit in writing Tenant’s inability to meet Tenant’s debts as they mature; or if Tenant shall have misrepresented or breached a warranty to Landlord set forth in clause S of Section 32 of this Lease for which no cure period is applicable under Section 32.S; or if any event has occurred which is specified as an Event of Default under this Lease; or if Tenant shall fail to observe or perform any of the other covenants or conditions in this Lease which Tenant is required to observe and perform and such default shall continue for thirty (30) days after written notice to Tenant (or if such default is curable and shall reasonably require more than thirty (30) days to cure, if Tenant shall fail to commence to cure said default within thirty (30) days after notice thereof and/or fail to continuously prosecute the curing of the same to completion with due diligence) then Landlord may treat the occurrence of any one or more of the foregoing events as a breach of this Lease. If an Event of Default occurs, Landlord at its option may, without additional notice or any demand of any kind to Tenant or any other person, have any one or more of the following described remedies in addition to all other rights and remedies provided at law or in equity or elsewhere in this Lease:

 

(i)                                     Landlord may terminate this Lease and the Term created hereby at any time after the occurrence of any such Event of Default and shall give Tenant written notice of Landlord’s election to do so and the effective date thereof (the “Effective Date”), in which event Landlord may forthwith repossess the Premises in accordance with applicable law and shall be entitled to recover,

 

(a)                                 forthwith as liquidated damages, in addition to any other sums or liabilities under this Lease due to Landlord and damages for which Tenant may be liable, a sum of money equal to the present value (such present value to be computed on the basis of a per annum discount rate equal to the effective annual yield on U.S. Treasury obligations which could be purchased on the business day next succeeding the Effective Date (or if Landlord has elected to first avail itself of the remedy provided in subclause 24(i)(b) below, the date as of which it notifies Tenant that it is electing the remedy set forth in this subclause 24(i)(a)) and mature closest to the Termination Date as determined as if this Lease had not been terminated for a default hereunder) of the Rent provided to be paid by Tenant for the balance of the Term over the present value of the fair market rental value of the Premises, after deduction from the present value of such fair market rental value of all anticipated expenses of reletting.  Should the present value of the fair market rental value of the Premises, after deduction of all anticipated expenses of reletting, for the balance of the Term exceed the present value of the Rent provided to be paid by Tenant for the balance of the Term, Landlord shall have no obligation to pay to Tenant the excess or any part thereof or to credit such excess or any part thereof against any other sums or damages for which Tenant may be liable to Landlord, and unless and until such time as Landlord elects to avail itself of the remedy set forth in this subclause 24(i)(a).

 

(b)                                 in addition to any other sums or damages for which Tenant may otherwise be liable to Landlord, a sum of money equal to amounts due at the Effective Date and to recover from time to time from Tenant, and Tenant shall remain liable for, all Rent which

 

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would have thereafter been due but for such termination as and when the same would have become due (or after the same would have become due) had such termination not occurred by reason of default by Tenant, and any other sums thereafter accruing as they would have become due under this Lease during the period from the Effective Date to the Termination Date and at any time while Landlord is pursuing its rights hereunder, Landlord may invoke its rights to liquidated damages for the balance of the term as provided in subclause 24(i)(a) above.

 

Landlord may, but shall be under no obligation to, except as required by law, relet the Premises or any part thereof for the account of Tenant, for such rent, from time to time (which may be for a term extending beyond the Term of this Lease), and upon such terms as Landlord in Landlord’s sole discretion shall determine and Landlord shall have no obligation to accept any proposal made by third parties nor shall Landlord be required to accept any tenant offered by Tenant or to observe any instructions given by Tenant relative to such reletting. Also at any time prior to Landlord exercising rights under subclause 24(i)(a) above, Landlord may change the locks or other entry devices of the Premises and make repairs, alterations and additions in or to the Premises and redecorate same to the extent deemed by Landlord necessary or desirable, and Tenant shall upon written demand pay the cost thereof together with, if Landlord successfully relets the Premises or any part thereof, Landlord’s expenses of reletting, including without limitation, brokerage commissions payable to Landlord’s agent or to others.

 

Landlord may collect the rents from any such reletting and apply the same to the payment of expenses of reentry, redecoration, repair and alterations and the expenses of reletting and the excess or residue remaining to the payment of Rent and other sums in this Lease provided to be paid by Tenant under subclause 24(i)(b) above after the date of any such reletting, and any such excess or residue shall operate only as an offsetting credit against the amount of Rent and other sums due and owing with respect to periods after the date of such reletting.  For purposes of clarity, in no event shall Tenant be entitled to a credit on its indebtedness to Landlord with respect to prior periods or a refund of amounts accelerated pursuant to subclause 24(i)(a) if Landlord relets the Premises or any part thereof. No such reentry, repossession, repairs, alterations, additions or reletting pursuant to this ARTICLE shall operate to release Tenant in whole or in part from any of Tenant’s obligations hereunder, and if Landlord effects any such reletting, Landlord may, at any time and from time to time, with respect to periods prior to the period with respect to which Landlord avails itself of the remedy set forth in subclause 24(i)(a) above (and Tenant’s payment of the amount required thereby) sue and recover judgment for any deficiencies from time to time remaining after the application from time to time of the proceeds of any such reletting.

 

(ii)                                  Landlord, without thereby waiving default or breach, may cure the same for the account and at the expense of Tenant, without notice in a case of emergency threatening life or property, as determined by Landlord in its sole discretion, or in case of correction of a dangerous or hazardous condition threatening life or property, and in any other case if such default or breach is or becomes an Event of Default or continues for five (5) days after the Landlord gives written notice of intention to cure. Bills for any expense incurred by Landlord in connection with any such performance by Landlord shall be for the account of Tenant, and shall be due and payable within thirty (30) days

 

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after Tenant receives said bills, and if not paid when due, the amounts thereof shall become immediately due and payable as Additional Rent under this Lease.

 

ARTICLE 25.
 EXPENSES OF ENFORCEMENT

 

Tenant shall pay upon demand all Landlord’s reasonable costs, charges and expenses including the fees and out-of-pocket expenses of counsel, agents and others retained by Landlord incurred in enforcing Tenant’s obligations hereunder following the occurrence of a default or breach which continues beyond any applicable grace or cure periods.

 

ARTICLE 26.
 COVENANT OF QUIET ENJOYMENT

 

Landlord covenants that Tenant, on paying the Rent, charges for services and other payments herein reserved and on keeping, observing and performing, within applicable periods of notice, cure and grace, all the other terms, covenants, conditions, provisions and agreements herein contained on the part of Tenant to be kept, observed and performed shall, during the Term, peaceably and quietly have, hold and enjoy the Premises subject to the terms, covenants, conditions, provisions and agreements hereof, without hindrance or ejection by any persons lawfully claiming by, through or under Landlord, the foregoing covenant of quiet enjoyment being in lieu of any other covenant, expressed or implied.

 

ARTICLE 27.
 LETTER OF CREDIT

 

27.01                 General Provisions.  Not later than the date on which Tenant commences its Initial Alterations, Tenant shall deliver to Landlord, as collateral for the full performance by Tenant of all of its obligations under this Lease and for all losses and damages Landlord may suffer as a result of Tenant’s failure to comply with one or more provisions of this Lease, a Letter of Credit (hereinafter defined) substantially in the form of Exhibit F and containing the terms required herein, in the face amount of the Letter of Credit Amount, naming Landlord as beneficiary.

 

“Letter of Credit” shall mean a clean, irrevocable, non-documentary and unconditional letter of credit, permitting multiple and partial draws thereon, and otherwise in form acceptable to Landlord in its sole, reasonable discretion issued by and drawable upon a commercial bank (the “Issuing Bank”), which is satisfactory to Landlord and which satisfies both the Minimum Rating Agency Threshold (as hereinafter defined) and the Minimum Capital Threshold (as hereinafter defined). The “Minimum Rating Agency Threshold” shall mean that the Issuing Bank has outstanding unsecured, uninsured and unguaranteed senior long-term indebtedness that is then rated (without regard to qualification of such rating by symbols such as “+” or”-” or numerical notation) “Baa” or better by Moody’s Investors Service, Inc. and/or “BBB” or better by Standard & Poor’s Rating Services, or a comparable rating by a comparable national rating agency designated by Landlord in its discretion. The “Minimum Capital Threshold” shall mean that the Issuing Bank has combined capital, surplus and undivided profits of not less than $2,000,000,000.

 

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If, at any time or from time to time, Landlord reasonably determines that an Issuing Bank (i) no longer satisfies the Minimum Rating Agency Threshold, (ii) no longer satisfies the Minimum Capital Threshold, (iii) has been seized or closed by the Federal Reserve Board, the Federal Deposit Insurance Corporation, the Office of the Comptroller of the Currency, or another governmental or regulatory agency or authority, (iv) has become insolvent or its financial condition is such that in Landlord’s reasonable judgment, the Issuing Bank may be unable to honor a draw on the Letter of Credit, or (v) is unwilling or unable to honor the Letter of Credit or to perform its obligations to honor a draw upon the Letter of Credit, then within ten (10) days after demand, Tenant shall deliver to Landlord a replacement Letter of Credit, issued by a replacement Issuing Bank which satisfies the Minimum Rating Agency Threshold and the Minimum Capital Threshold and is otherwise satisfactory to Landlord in its discretion.

 

Tenant shall cause the Letter of Credit to be continuously maintained in effect (whether through replacement, renewal or extension) in the Letter of Credit Amount through the date (the “Final LC Expiration Date”) that is sixty (60) days after the scheduled expiration date of the Term or any renewal Term.  If the Letter of Credit held by Landlord expires earlier than the Final LC Expiration Date (whether by reason of a stated expiration date or a notice of termination or non-renewal given by the issuing bank), Tenant shall deliver a new Letter of Credit or certificate of renewal or extension (a “Renewal or Replacement LC”) to Landlord not later than sixty (60) days prior to the expiration date of the Letter of Credit then held by Landlord.  Any Renewal or Replacement LC shall comply with all of the provisions of this ARTICLE 27, shall be irrevocable, transferable and shall remain in effect (or be automatically renewable) through the Final LC Expiration Date upon the same terms as the expiring Letter of Credit or such other terms as may be acceptable to Landlord in its sole, reasonable discretion.

 

27.02                 Drawings under Letter of Credit. Upon Tenant’s failure to comply with one or more provisions of this Lease which continues beyond applicable periods of notice and cure, or as otherwise specifically agreed by Landlord and Tenant pursuant to this Lease or any amendment hereof, Landlord may, without prejudice to any other remedy provided in this Lease or by Law, draw on the Letter of Credit and use all or part of the proceeds to (a) satisfy any amounts due to Landlord from Tenant, and (b) satisfy any other damage, injury, expense or liability caused by Tenant’s failure to so comply. In addition, if Tenant fails to furnish a Renewal or Replacement LC complying with all of the provisions of this ARTICLE 27 at least sixty (60) days prior to the stated expiration date of the Letter of Credit then held by Landlord, Landlord may draw upon such Letter of Credit and hold the proceeds thereof (and such proceeds need not be segregated) in accordance with the terms of this ARTICLE 27 (the “LC Proceeds Account”).

 

27.03                 Use of Proceeds by Landlord. Subject to Section 27.02, the proceeds of the Letter of Credit shall constitute Landlord’s sole and separate property (and not Tenant’s property or the property of Tenant’s bankruptcy estate) and Landlord may immediately upon any draw (and without notice to Tenant) apply or offset the proceeds of the Letter of Credit: (a) against any Rent or other amount payable by Tenant under this Lease that is not paid when due; (b) against all losses and damages that Landlord has suffered; (c) against any costs incurred by Landlord in connection with this Lease (including attorneys fees); and (d) against any other amount that Landlord is owed by reason of Landlord’s exercise of its remedies for Tenant default under this Lease. Landlord agrees to return the Original Letter of Credit or any Renewal or Replacement LC pay to Tenant, or at Tenant’s written direction, the Issuing Bank or pay within thirty (30)

 

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days after the Final LC Expiration Date the amount of any proceeds of the Letter of Credit received by Landlord and not applied as allowed above; provided, that if prior to the Final LC Expiration Date a voluntary petition is filed by Tenant, or an involuntary petition is filed against Tenant by any of Tenant’s creditors, under the Federal Bankruptcy Code, then Landlord shall not be obligated to make such payment in the amount of the unused Letter of Credit proceeds until either all preference issues relating to payments under this Lease have been resolved in such bankruptcy or reorganization case or such bankruptcy or reorganization case has been dismissed, in each case pursuant to a final court order not subject to appeal or any stay pending appeal.

 

27.04                 Additional Covenants of Tenant.  If, as result of any application or use by Landlord of all or any part of the Letter of Credit, the amount of the Letter of Credit shall be less than the Letter of Credit Amount, Tenant shall, within five (5) business days thereafter, provide Landlord with additional letter(s) of credit in an amount equal to the deficiency (or a replacement letter of credit in the total Letter of Credit Amount), and any such additional (or replacement) letter of credit shall comply with all of the provisions of this ARTICLE 27, and if Tenant fails to comply with the foregoing, notwithstanding anything to the contrary contained in this Lease, the same shall constitute an Event of Default by Tenant. Tenant further covenants and warrants that it will neither assign nor encumber the Letter of Credit or any part thereof and that neither Landlord nor its successors or assigns will be bound by any such assignment, encumbrance, attempted assignment or attempted encumbrance.

 

27.05                 Nature of Letter of Credit. Landlord and Tenant (a) acknowledge and agree that in no event or circumstance shall the Letter of Credit or any renewal thereof or substitute therefor or any proceeds thereof (including the LC Proceeds Account) be deemed to be or treated as a “security deposit” under any Law applicable to security deposits in the commercial context (“Security Deposit Laws”), (b) acknowledge and agree that the Letter of Credit (including any renewal thereof or substitute therefor or any proceeds thereof) is not intended to serve as a security deposit, and the Security Deposit Laws shall have no applicability or relevancy thereto, and (c) waive any and all rights, duties and obligations either party may now or, in the future, will have relating to or arising from the Security Deposit Laws.

 

ARTICLE 28.
 REAL ESTATE BROKER

 

The Tenant represents that Tenant has dealt with (and only with) the Broker specified in ARTICLE 1 hereof as broker in connection with this Lease, and that insofar as Tenant knows, no other broker negotiated this Lease or is entitled to any commission in connection therewith. Tenant agrees to indemnify, defend and hold harmless Landlord its employees and agents from and against any claims made by any broker or finder other than the Broker named above for a commission or fee in connection with this Lease or any sublease hereunder, but nothing herein shall be construed as permitting any such sublease, provided that Landlord has not in fact retained such broker or finder. Landlord agrees to indemnify, defend and hold harmless Tenant, its employees and agents from and against any claims made by any broker or finder named above for a commission or fee in connection with this Lease, provided Tenant has not in fact retained such broker or finder and, in addition, Landlord shall pay the fees of the Broker(s) named in ARTICLE 1 of this Lease.

 

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ARTICLE 29.
 NOTICE TO MORTGAGEE AND GROUND LESSOR

 

After receiving notice from any person, firm or other entity that it holds a mortgage which includes the Premises, the Building or the Office Section as part of the mortgaged premises, or that it is the ground lessor under a ground lease (which term shall include the Underlying Lease and the Sublease (as such terms are defined in Section 32U of this Lease)) with Landlord, as ground lessee, which includes the Premises, the Building or the Office Section as part of the demised premises, no notice of default from Tenant to Landlord shall be effective unless and until a copy of the same is given to such holder or ground lessor, and the timely curing of any of Landlord’s defaults by such holder or ground lessor shall be treated as performance by Landlord. Such holder or ground lessor shall be given such reasonable time as may be necessary to effect such cure or to foreclose the mortgage or terminate the ground lease, as the case may be. For the purposes of ARTICLE 21, this ARTICLE 29, ARTICLE 30 and ARTICLE 33, the term “mortgage” includes a mortgage on a leasehold interest of Landlord (but not one on Tenant’s leasehold interest).

 

ARTICLE 30.
 ASSIGNMENT OF RENTS

 

With reference to any assignment by Landlord of Landlord’s interest in this Lease, or the rents payable hereunder, conditional in nature or otherwise, which assignment is made to the holder of a mortgage or ground lease (which term shall include the Underlying Lease and the Sublease) on property which includes the Premises, the Building or the Office Section, Tenant agrees:

 

(i)                                     that the execution thereof by Landlord, and the acceptance thereof by the holder of such mortgage, or the ground lessor, shall never be treated as an assumption by such holder or ground lessor of any of the obligations of Landlord hereunder, unless such holder, or ground lessor, shall, by notice sent to Tenant, specifically otherwise elect; and

 

(ii)                                  that, except as aforesaid, such holder or ground lessor shall be treated as having assumed Landlord’s obligations hereunder only upon a foreclosure of such holder’s mortgage and the taking of possession of the Premises, or in the case of a ground lessor, the assumption of Landlord’s position hereunder by such ground lessor.  In no event shall the acquisition of title to the Building and the land on which the same is located by a purchaser which, simultaneously therewith, leases the entire Building or such land back to the seller thereof be treated as an assumption, by operation of law or otherwise, of Landlord’s obligations hereunder, but Tenant shall look solely to such seller-lessee, and its successors from time to time in title, for performance of Landlord’s obligations hereunder. In any such event, this Lease shall be subject and subordinate to the lease to such seller. For all purposes, such seller-lessee, and its successors in title, shall be the landlord hereunder unless and until Landlord’s position shall have been assumed by such purchaser-lessor.

 

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ARTICLE 31.
 PERSONAL PROPERTY TAXES

 

Tenant shall pay all taxes which may be lawfully charged, assessed, or imposed upon all fixtures and equipment of every type and also upon all of Tenant’s personal property in the Premises, and Tenant shall pay all license fees which may lawfully be imposed upon the business of Tenant conducted upon the Premises.

 

ARTICLE 32.
 MISCELLANEOUS

 

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

 

B.                                    Interest on Overdue Amounts. All payments becoming due under this Lease and remaining unpaid for five (5) days thereafter shall bear interest from the date actually due until paid at the rate two percent (2%) per annum above the prime rate of interest charged from time to time by Bank of America (or its successor), but in no event more than the highest rate which is at the time lawful in the Commonwealth of Massachusetts; provided, however, if a payment otherwise due is not received on the date due (rather than within five (5) days thereafter, more than once in any twelve (12) month period, any payment due for the next succeeding twelve (12) months shall bear interest from the date due without the five (5) day grace period. Interest hereunder shall be payable within ten (10) days of billing therefor by Landlord.  The obligation hereunder shall survive the termination of this Lease.

 

C.                                    Grammatical Rules. The necessary grammatical changes required to make the provisions hereof apply either to corporations or partnerships or individuals, men or women, as the case may require, shall in all cases be assumed as though in each case fully expressed.

 

D.                                    Successors and Assigns. Each of the provisions of this Lease shall extend to and shall, as the case may require, bind or inure to the benefit not only of Landlord and of Tenant, but also of their respective successors or assigns, provided this clause shall not permit any assignment by Tenant contrary to the provisions of ARTICLE 17 hereof. All indemnities, covenants and agreements of Tenant contained herein shall inure to the benefit of Landlord’s agents and employees.

 

E.                                     Incorporation by Reference; Authority. All of the representations and obligations of Landlord are contained herein and in the Exhibits attached hereto, each of which is incorporated herein by reference so that all references to “Lease” herein shall refer to the body of this Lease and all Exhibits thereto; and no modification, waiver or amendment of this Lease or of any of its conditions or provisions shall be binding upon Landlord or Tenant unless in writing signed by Landlord and Tenant or, as to Landlord, by a duly authorized agent of Landlord empowered by a written authority signed by Landlord.

 

F.                                      Submission Not an Offer. Submission of this Lease for examination shall not bind Landlord or Tenant in any manner, and no lease or obligations of Landlord or Tenant shall arise until this instrument is signed by both Landlord and Tenant and delivery is made to each.

 

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

 

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H.                                   Intentionally Omitted.

 

I.                                        Transfer or Assignment by Landlord. Tenant acknowledges that Landlord has the right to transfer its interest in the Premises, the Office Section and the Building and in this Lease, and Tenant agrees that in the event of any such transfer Landlord shall be released from all liability thereafter accruing under this Lease and all liability with respect to periods prior to such transfer to the extent assumed by the transferee specifically or as a matter of law and Tenant agrees to look solely to such transferee for the performance of Landlord’s obligations hereunder from and after the date of such transfer except to the extent liabilities were not assumed by the transferee for the period prior to the transfer; provided that nothing herein shall result in liability to the transferee beyond the net proceeds received by the transferor in connection with such transfer. Tenant further acknowledges that Landlord may assign its interest in this Lease to a mortgage lender as additional security and agrees that such an assignment shall not release Landlord from its obligations hereunder and that Tenant shall continue to look to Landlord for the performance of its obligations hereunder.

 

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

 

K.                                   No Recording of Lease. This Lease shall not be recorded by Tenant or by anyone acting through, under or on behalf of Tenant, and the recording thereof in violation of this provision shall make this Lease null and void at Landlord’s election. At Tenant’s request, Landlord agrees to execute a Notice of Lease in recordable form for recording with the Suffolk County Registry of Deeds.

 

L.                                     Captions. The captions of ARTICLES, Sections and subsections are for convenience only and shall not be deemed to limit, construe, affect or alter the meaning of such ARTICLES, Sections and subsections.

 

M.                                 Intentionally Omitted..

 

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

 

O.                                    Order of Application.  Landlord shall have the right to apply payments received from Tenant pursuant to this Lease (regardless of Tenant’s designation of such payments) to satisfy any obligations of Tenant hereunder that are past due, in such order and amounts as Landlord in its sole discretion may elect.

 

P.                                      Time is of the Essence. Time is of the essence of this Lease and each of its provisions.

 

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Q.                                    Interpretive Law. Interpretation of this Lease shall be governed by the law of the Commonwealth of Massachusetts.

 

R.                                    Effect of Indemnifications. All indemnities, covenants and agreements of Tenant and Landlord contained herein which inure to the benefit of the other party shall be construed to also inure to the benefit of the other party’s agents and employees.

 

S.                                      OFAC. Each of Landlord and Tenant certifies, represents, warrants and covenants (the party so certifying, representing, warranting and covenanting is referred to herein as the “Certifying Party”) to the other that:

 

(i)                                     The Certifying Party is not acting and will not act, directly or indirectly, for or on behalf of any person, group, entity, or nation named by any Executive Order or the United States Treasury Department as a terrorist, “Specially Designated National and Blocked Person”, or other banned or blocked person, entity, nation or transaction pursuant to any law, order, rule, or regulation that is enforced or administered by the Office of Foreign Assets Control; and

 

(ii)                                  The Certifying Party is not engaged in this transaction, directly or indirectly on behalf of, or instigating or facilitating this transaction, directly or indirectly on behalf of, any such person, group, entity or nation.

 

(iii)                               Without limiting the foregoing, the Certifying Party is not, and the entities or individuals constituting the Certifying Party or which may own or control the Certifying Party or which may be owned or controlled by the Certifying Party are not, among the individuals or entities identified on any list compiled pursuant to Executive Order 13224 for the purpose of identifying suspected terrorists.

 

Each of Landlord and Tenant hereby agrees to defend (with counsel reasonably acceptable to the indemnified party), indemnify and hold harmless the other party (and as to landlord as the indemnified party, Landlord’s designated property management company), and their respective partners, members, affiliates and subsidiaries, and all of their respective officers, trustees, directors, shareholders, employees, servants, partners, representatives, insurers and agents from and against any and all claims arising from or related to any such breach the indemnifying party of the foregoing certifications, representations, warranties and covenants.  In connection with the foregoing, it is expressly understood and agreed that (x) any breach by Tenant of the foregoing representations and warranties shall be a default by Tenant under ARTICLE 24 above and that, as to any such breach which would result in any material liability to Landlord which would not be discharged by a cure by Tenant in accordance with ARTICLE 24, no cure period for such default shall be applicable, and (y) the representations and warranties contained in this clause S and the indemnity set forth herein shall be continuing in nature and shall survive the expiration or earlier termination of this Lease.

 

T.                                     Substitution of Other Premises. At any time hereafter, Landlord may relocate any portion of Tenant’s Premises not within Tower IV, subject to the terms set forth below, on the following conditions: (i) if the portion of the Premises which Landlord wants to relocate comprises a full floor of a Tower, the Premises on such full floor can only be relocated in

 

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connection with a lease to another tenant of not less than 40,000 rentable square feet; and (ii) if the portion of the Premises which Landlord wants to relocate comprises less than a full floor of a Tower, the Premises on such floor can be relocated in connection with a lease to another tenant of not less than one full floor of a Tower of the Office Section. Any such re-locatable portion of the Premises is referred to herein as “Committed Non-Tower IV Premises”. Landlord may (upon not less than one hundred eighty (180) days’ prior notice) substitute for the Committed Non-Tower IV Premises, different space (herein referred to as the “New Premises”) in the Office Section, provided that the New Premises shall be usable for Tenant’s purpose; shall be contiguous to the remaining Premises; shall be situated on the same floor as, or a higher floor than, the Committed Non Tower IV Premises; shall have a window line not less that the window line of the Committed Non-Tower IV Premises from which Tenant is being relocated; and Landlord shall pay the expenses of Tenant’s moving from the Committed Non-Tower IV Premises to the New Premises and for fully demising and improving the New Premises so that they are substantially similar to the Committed Non-Tower IV Premises in quality of improvement and utility to Tenant. The New Premises shall contain not less rentable square footage as the Committed Non-Tower IV Premises and in no event will the Base Rent or Tenant’s Proportionate Expense Share or Proportionate Tax Share be increased by reason of the substitution.

 

U.                                    Underlying Leases. Landlord is the lessee of air rights premises collectively referred to as Copley Place, pursuant to that certain Air Rights Lease Agreement (the “Underlying Lease”), made as of June 20, 2011, by and between Landlord, as the tenant thereunder, and the Massachusetts Department of Transportation (“DOT”), as the landlord thereunder.

 

Landlord hereby gives notice to Tenant that it supports the Affirmative Action and Resident Preference goals set forth in Paragraph 6 of Schedule D to the Underlying Lease and in Attachment C to the City of Boston’s Urban Development Action Grant application for Copley Place, and encourages Tenant to pursue such goals in Tenant’s own employment practices. In connection with hiring to fill permanent jobs at the Premises, Tenant shall not discriminate against any employee or applicant for employment because of race, color, religious creed, national origin, age or sex. Tenant shall comply to the extent applicable, with Title VII of the U.S. Civil Rights Act and M.G.L. c.151B with respect to employment at the Premises.

 

V.                                    Partial Invalidity. If any term, provision or condition contained in this Lease shall, to any extent, be invalid or unenforceable, the remainder of this Lease (or the application of such term, provision or condition to persons or circumstances other than those in respect of which it is invalid or unenforceable) shall not be affected thereby, and each and every other term, provision and condition of this Lease shall be valid and enforceable to the fullest extent possible permitted by law.

 

W.                                 Intentionally Omitted.

 

X.                                    Signage. Landlord hereby consents to Tenant placing signage on the exterior of the Premises at Tenant’s entrance doors, at Tenant’s sole cost and expense, in accordance with Landlord’s reasonable rules with respect thereto and Tenant may, at its option, at Landlord’s sole cost and expense, have its name on the electronic Building directory provided for tenants in the

 

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Sky Lobby of the Building as well as elevator lobby signage, consistent in quality and aesthetics with other elevator lobby signage in the Building, in each floor elevator lobby serving the Premises. Subject to any necessary approval from the City of Boston and Landlord’s approval of design, materials and specific location, not to be unreasonably withheld, Tenant may, at Tenant’s sole cost and expense, install, maintain and replace, so long as Signage Tenants occupy not less than 70% of the Initial Premises (or rentable area equivalent thereto), at Tenant’s sole cost and expense:

 

1.                                      the name and/or logo of the original Tenant or of a transferee pursuant to a Related Party Transfer, or, so long as such installation shall not result in a breach by Landlord of its obligations under any then existing lease of space in the Property, of a transferee to which Landlord has consented, a plaque not to exceed 18 inches by 18 inches in the new retail level office lobby at or near the elevators or Building directory.

 

2.                                      the name and/or logo of the original Tenant or of a transferee pursuant to a Related Party Transfer, or, so long as such installation shall not result in a breach by Landlord of its obligations under any then existing lease of space in the Property, of a transferee to which Landlord has consented, to be located above or next to signage identifying Tower IV in the Sky Lobby and sized consistent with new or existing Building Standard Tower identification signage (which presently exists on Tower entrance doors).

 

3.                                      the name and/or logo of the original Tenant or of a transferee pursuant to a Related Party Transfer, or, so long as such installation shall not result in a breach by Landlord of its obligations under any then existing lease of space in the Property, of a transferee to which Landlord has consented, on monument signage of approximately 2 feet deep by 3 feet wide by 4 feet high, in the outdoor plaza at the corner of Dartmouth Street and Huntington Avenue.

 

“Signage Tenant” shall mean the original Tenant named herein, any transferee pursuant to a Related Party Transfer, or any other transferee pursuant to a transfer to which Landlord has consented. No such signage shall display the name or logo of more than one entity and the name and logo on the signage must be the Tenant under this Lease or, if the Tenant under this Lease is an entity which is a lease-holding entity, the name and logo can be that of the affiliate of Tenant that is the principal operating company occupying the Premises.

 

Y.                                    Attorneys’ Fees. In the event of any legal action or proceeding brought by either party against the other arising out of this Lease, the prevailing party shall be entitled to recover reasonable attorneys’ fees and costs (including, without limitation, court costs and expert witness fees) incurred in such action. Such amounts shall be included in any judgment rendered in any such action or proceeding.

 

Z.                                     Waiver of Consequential Damages. Landlord and Tenant each hereby waive all claims for special, incidental, or consequential damages (except as may arise by reason of a Tenant holdover under Article 19) against the other arising out of the breach of or failure to perform or observe the requirements and obligations created by this Lease.

 

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AA.                           Violations of Law. Landlord hereby represents and warrants that as of the date hereof, Landlord has received no notices of any uncured violation of law, ordinance, order or regulation applicable to the Property.

 

ARTICLE 33.
 NOTICES

 

All notices to be given under this Lease shall be in writing and either hand delivered; delivered by reputable overnight courier, delivery acknowledged by recipient; or deposited in the United States mail, certified or registered mail with return receipt requested, postage prepaid, addressed as follows:

 

(i)                                     If to Landlord:

 

Simon Property Group, L.P.
 Attention:  Mike Connell, Property Manager
 Two Copley Place, Suite 100
 Boston, MA 02116-6502

 

With a copy to:

 

Simon Property Group, L.P.
 225 West Washington Street
 Indianapolis, IN 46204

 

and as provided in ARTICLE 29 of this Lease

 

and to such other person or such other address designated by notice sent by Landlord or Tenant.

 

(ii)                                  If to Tenant:

 

Prior to the Commencement Date:

 

Wayfair LLC
 177 Huntington Avenue, Suite 6000
 Boston, MA 02115
 Attention: Chief Financial Officer

 

Following the Commencement Date:

 

Wayfair LLC
 Four Copley Place
 Boston, MA 02116
 Attention: Chief Financial Officer

 

With a copy to:

 

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Bingham McCutchen LLP One Federal Street
 Boston, Massachusetts 02110
 Attention: Maurice H. Sullivan, Ill, Esq.

 

After receiving notice from any person, firm or other entity that it holds a mortgage which includes the Building as part of the mortgaged premises, no notice from Tenant to Landlord shall be effective unless and until a copy of the same is given to such holder, and the curing of any of Landlord’s defaults by such holder shall be treated as performance by Landlord. Such holder shall be given such reasonable time as may be necessary to effect such cure or to foreclose the mortgage, as the case may be. For the purposes of ARTICLE 21, ARTICLE 29, ARTICLE 30 and this ARTICLE 33, the term “mortgage” includes a mortgage on a leasehold interest of Landlord (but not one on Tenant’s leasehold interest.

 

Notice by mail shall be deemed to have been given as of the date of receipt. Notice by hand delivery or reputable overnight courier shall be deemed to have been given at the time of delivery or attempted delivery (as customarily evidenced by the courier).

 

ARTICLE 34.
 LIMITATION ON LIABILITY

 

It is expressly understood and agreed by Tenant that none of Landlord’s covenants, undertakings, representations or agreements are made or intended as personal covenants, undertakings, representations or agreements by Landlord or its partners, and any liability for damage or breach or nonperformance by Landlord shall be collectible only out of Landlord’s interest in the Property and no personal liability is assumed by, nor at any time may be asserted against, Landlord or its partners or any of its or their directors, officers, agents, employees, legal representatives, successors or assigns, all such liability, if any, being expressly waived and released by Tenant. The provisions of this ARTICLE 34 shall expressly be applicable to and inure to the benefit of Landlord’s successors and assigns. In no event shall Landlord or its constituent partners be liable for any incidental or consequential damages in connection with its obligations under, or any action taken by Landlord or its constituent partners in connection with, this Lease.

 

It is expressly understood and agreed by Landlord that none of Tenant’s covenants, undertakings, representations or agreements are made or intended as personal covenants, undertakings, representations or agreements by, and no personal liability is assumed by, nor at any time may be asserted against, any of Tenant’s members or partners or any of its or their directors, officers, agents, employees, legal representatives, successors or assigns, all such liability, if any, being expressly waived and released by Landlord.

 

ARTICLE 35.
 LANDLORD’S DESIGNATED AGENT

 

It is expressly understood and agreed by Tenant that the provisions of this Lease may be enforced on behalf of Landlord by an agent designated by Landlord for such purpose, and such enforcement shall be equally effective whether in the name of Landlord or such agent.

 

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ARTICLE 36.
 COMMENCEMENT DATE

 

If Landlord shall not have substantially completed Landlord’s Work (as set forth in Exhibit B) by the Commencement Date (“Landlord’s Completion Date”), the Commencement Date shall be deferred for the number of days after Landlord’s Completion Date required for Landlord to substantially complete Landlord’s Work; provided, however, the Commencement Date shall not be deferred if the Premises are not substantially completed by reason of any Tenant Delays (hereinafter defined). “Tenant Delays” shall mean delays caused by Tenant, its employees, agents or contractors which begin one (1) business day following notice thereof from Landlord to Tenant. Furthermore, if Landlord shall not have substantially completed Landlord’s Work with respect to restroom renovation with respect to the Initial Premises by September 14, 2014, then Tenant shall be entitled to a credit, for each day from September 1, 2014 to the date of such substantial completion, against Base Rent equal to one (1) day of Base Rent applicable to any floor of Tower IV (based on rentable square feet on that floor) with respect to which the Landlord’s Work thereon shall not have been substantially completed.  In addition, if Tenant adds space to the Initial Premises and as a result of such addition, Tenant is leasing more than 50% of a floor of a Tower, Landlord shall renovate the restrooms on such floor as contemplated by Exhibit B-2, and if Landlord shall not have substantially completed such restroom renovation on such floor by the date which is one hundred twenty (120) days following the date on which the Landlord delivers the space to Tenant that results in Tenant being the tenant of more than 50% of such floor, then Tenant shall be entitled to a credit, for each day following the end of such one hundred twenty (120) day period to the date of such substantial completion, against Base Rent due under this Lease equal to one (1) day of Base Rent applicable to the additional space on such floor which resulted in Landlord’s obligation.

 

ARTICLE 37.
 PARKING

 

Tenant shall have the right during the Term to use up to twenty-five (25) non reserved parking spaces in the garage located within and serving the Property and up to fifteen (15) non- reserved parking spaces in the Dartmouth Street Garage in the property adjacent to the Building and located on Dartmouth Street, subject with respect to each garage of payment by Tenant for such use at the prevailing monthly rate therefor generally charged to Office Section tenants by the operator of the garage from time to time; provided, however, for every additional 3,500 rentable square feet of space in the Premises in excess of 130,000 rentable square feet, Tenant will be entitled to use, at eh monthly rate and on the same terms as other spaces used by Tenant therein, one additional non-reserved parking space in the Dartmouth Street garage. In the event of non-payment of parking charges due hereunder by the Tenant, Landlord shall have the right to terminate Tenant’s rights with respect to parking without any obligation to reinstate such right to parking in the event Tenant attempts to resume payment for parking.

 

ARTICLE 38.
 TENANT IMPROVEMENT ALLOWANCE

 

Subject to the terms of this Section 38 set forth below, there shall be paid by the Landlord as the Landlord’s contribution toward Tenant’s Initial Alterations, the sum (“Allowance”) of

 

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$7,191,555.84, based upon a contribution of $68.04 per rentable square foot for 105,696 rentable square feet in the Initial Premises.  Tenant shall submit to Landlord Tenant’s good faith estimate (“Qualified Cost Estimate”) of the Qualified Costs (hereinafter defined) to be incurred by Tenant in connection with its move to and the construction of Initial Alterations in the Premises.  Installments of the Allowance shall be payable in accordance with the procedures set forth below.  Installments of the Allowance, which shall in no event exceed in the aggregate the amount of the Allowance, shall be paid to Tenant (or, at Landlord’s option if Landlord reasonably determines that Tenant is not paying its contractors and such failure to pay may give rise to a lien against the Building, to the order of the contractor that performed the work set forth in the respective invoices) or, at Tenant’s option to Tenant’s contractors, with respect to Qualified Costs theretofore incurred by Tenant (and not theretofore paid to Tenant or which were Tenant’s responsibility as set forth in this Article 38) for which Tenant has submitted a requisition consisting of, (i) in the case of other than costs incurred under architectural and engineering contracts (collectively “Professional Services Contracts”) or under construction contracts, such as furniture or moving or professional fees that are contracted for by Tenant separate from construction and Professional Services Contracts, paid invoices, (ii) in the case of Professional Services Contracts, invoices, and (iii) in the case of construction costs (a) an application for payment and sworn statement of a contractor performing general contracting work in the Premises substantially in the form of AIA Document G-702 covering all work for which disbursement is to be made to a date specified therein which is part of the construction contract; (b) a certification from an AIA architect substantially in the form of the Architect’s Certificate for Payment which is located on AIA Document G702, Application and Certificate of Payment; (c) contractor’s, project managers and subcontractor’s waivers of liens which shall cover all applicable items of Qualified Costs under such construction contracts for which disbursement is being requested and any other statements and forms required for compliance with the mechanics’ lien laws of the Commonwealth of Massachusetts, together with invoices with respect to such Qualified Costs and such other supporting data as Landlord or Landlord’s Mortgagee may reasonably require; (iv) a cost breakdown for each trade or subcontractor performing the work included in Qualified Costs for which a request for disbursement under such construction contracts is being made; (v) copies of all construction contracts for the such Alterations, together with copies of all change orders, if any; and (iii) a request to disburse from Tenant containing an acknowledgement by Tenant of the work done and a good faith estimate of the cost to complete the Initial Alterations to the Premises. Upon completion of the Initial Alterations, and as part of the requisition for final disbursement of the Allowance for hard construction costs, Tenant shall furnish Landlord with: (1) general contractor and architect’s completion affidavits, (2) full and final waivers of lien, (3) receipted bills covering all labor and materials expended and used, (4) as-built plans of the Alterations, and (5) the certification of Tenant’s architect to the Landlord that, based on on-site observation and the data comprising the application for disbursement, to the best of the architect’s knowledge, information and belief, the Alterations have progressed as indicated in the application, the quality of the Alterations is in accordance with the construction contract documents and the contractor is entitled to; payment of the amount certified in the application. Notwithstanding the foregoing, if the Qualified Cost Estimate exceeds the Allowance, Tenant shall be entitled to payments with respect to any requisition in accordance with the terms hereof except that each individual disbursement of the Allowance by Landlord shall be in the same ratio to the amount properly requisitioned as the Allowance bears to the Adjusted Qualified Cost Estimate (hereinafter defined). “Adjusted

 

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Qualified Cost Estimate” means the Qualified Cost Estimate reduced by any amount paid prior to the date of computing the Adjusted Qualified cost Estimate by Tenant directly to a contractor, professional or supplier with respect to the cost of an item that had been included in the Qualified Cost Estimate, but with respect to which Tenant will not be submitting a requisition (and for which Landlord will not make any payment with respect to the Allowance). Furthermore, the amount of any installment of the Allowance otherwise payable shall be reduced by the amount of any retainage applicable to the Qualified Costs (proportionately if an individual disbursement is reduced as set forth in the immediately preceding sentence) with respect to which the disbursement is being requested, but such retainage shall be payable as part of the final draw when all requirements set forth for such disbursement have been met). In no event shall Landlord be required to disburse any installment of the Allowance more than twice in any calendar month and in no event will Landlord be obligated to disburse an amount which is less than $50,000 (other than the final disbursement on account of the Allowance). Notwithstanding anything herein to the contrary, Landlord shall not be obligated to disburse any portion of the Allowance during the continuance of an uncured default under this Lease, and Landlord’s obligation to disburse shall only resume when and if such default is curable and is, in fact, cured. Time is of the essence with respect to the time periods set forth in this Section 38.

 

For purposes hereof, “Qualified Costs” shall mean actual costs for (a) preparation of drawings and other expenses incurred in connection with design and construction, including without limitation permit fees and costs of labor and materials, (b) construction of the Premises in accordance with the plans and specifications approved in accordance with ARTICLE 10, (c) wiring and cabling in the Premises (d) architectural, engineering, construction management, project management and other professional fees relating to design and construction of the Premises and the negotiation of this Lease, (e) costs for the procurement of furniture, fixtures and equipment in connection with this Lease, (f) telephone data, equipment, audio visual equipment, security systems and special power distribution (g) moving and delivery costs, (h) skylights and (i) a roof deck on the roof of Tower IV, U) interconnecting staircases between floors in the Premises, and (k) all other hard and soft costs related to the Tenant’s Alterations and moving expenses associated with the space with respect to which the Allowance for such Qualified Costs is being provided.

 

Notwithstanding the foregoing, if, as of June 15, 2015, the amount paid or payable (by reason of requisitions) by Landlord with respect to the Allowance is less than the Allowance, Landlord shall apply an amount equal the difference between the amount theretofore requisitioned by Tenant and the Allowance to Base Rent next coming due under this Lease; provided however, Landlord shall have no obligation to apply such amount to Base Rent if Tenant is in default of its obligations under this Lease unless and until such application would cure all defaults of Tenant in full.

 

Landlord shall pay the portion of the Allowance related to a requisition as is to be paid by Landlord under this Article 38 not later than thirty (30) days following the Landlord’s approval of the applicable requisition package. Landlord shall have a review period of fifteen (15) business days following the submission of a requisition package to object to the submission as not being in compliance with this Article 38 and if Landlord does not object to the submission within such period, the submission shall be deemed approved. If Landlord shall object to a requisition package, Tenant shall resubmit as necessary to comply with this Article 38 and the

 

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process for approval shall begin again. If Landlord shall fail to pay by the date due hereunder the amount to be paid by Landlord in accordance with this Article 38 for thirty (30) days following approval or deemed approval of the requisition package, upon five (5) days prior written notice thereof from Tenant to Landlord of such failure, Tenant may offset against Base Rent next payable by Tenant to Landlord under this Lease, the amount which was not paid by the end of such thirty (30) day notice period together with interest thereon at the rate specified in Section 32.B of this Lease from the end of such thirty (30) day period until the date on which such amount with interest is offset against such Base Rent or otherwise paid by Landlord to Tenant.

 

ARTICLE 39.
 FINANCIAL STATEMENTS

 

Tenant shall furnish to Landlord annually within thirty (30) days after Landlord’s request therefor in connection with any bona fide potential sale or financing of the Building, Tenant’s most recent annual statement, certified by a responsible financial officer of Tenant. Tenant agrees that Landlord may deliver a copy of such statements to its mortgagee or ground lessor or a potential purchaser of Landlord’s interest in the Premises, but otherwise, Landlord shall treat such statements and information contained therein as confidential; provided, however, Landlord may release such statements and information if and to the extent required by a court of competent jurisdiction or if in the opinion of Landlord’s counsel, the information contained in such statements and information is required to be disclosed under applicable law following not less than ten (10) business days’ notice to Tenant unless otherwise required by applicable law.

 

ARTICLE 40.
 TENANT AUTHORITY TO EXECUTE LEASE

 

40.01                 Tenant Authority to Execute Lease. Tenant (a) represents and warrants that this Lease has been duly authorized, executed and delivered by and on behalf of Tenant and constitutes the valid and binding agreement of Tenant in accordance with the terms hereof and (b) if Landlord so requests, Tenant shall deliver to Landlord or its agent, concurrently with the delivery of this Lease executed by Tenant, certified resolutions authorizing Tenant’s execution and delivery of this Lease by the person executing on behalf of Tenant and the performance of Tenant’s obligations hereunder.

 

40.02                 Landlord Authority to Execute Lease. Landlord has all requisite power and authority to execute and deliver this Lease and to carry out its obligations hereunder and the transactions contemplated hereby.

 

ARTICLE 41.
 OPTION TO EXTEND LEASE

 

Tenant shall have the right to extend the Term of this Lease for two (2) successive five (5) year periods, each such right of Tenant to be conditioned upon (a) this Lease at the time of election being in full force and effect and Tenant not then being in default under this Lease beyond any applicable notice and cure period, such extension period to commence upon the expiration of the original Term of this Lease, (b) as to the second option, the first option having been exercised. Each option may be exercised for all or a portion, but not less than 70%, of the

 

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Premises as the same is constituted at the date the option is exercised; provided, however, any contiguous portion of the Premises on any floor of any Tower with respect to which Tenant does not exercise an option to extend (each, a “Non-Extended Space”) (a) shall be not less than 5,000 contiguous rentable square feet on any one floor of any one Tower and (b) shall meet the Window Line Criterion (hereinafter defined) and (c) shall be accessible by a corridor that is consistent with corridor layouts in comparable first class office towers. Tenant shall be responsible for the cost of separately demising the remaining Premises (demising walls erected and Building systems separated from the space relinquished). The “Window Line Criterion” shall mean that the Non-Extended Space satisfies any one of the following conditions:

 

(i)                                     The window lines (exterior and atrium facing) are comparable to the window lines (exterior and atrium facing) of any other leased space in the Office Section of comparable size;

 

(ii)                                  The window lines (exterior and atrium facing) are substantially proportionate to the window lines (exterior and atrium facing) in the space on the floor that they is being retained;

 

(iii)                               The window line is, in the view of the Landlord’s Office Section brokers, marketable at rates consistent with the rates for other space of the Office Section; or

 

(iv)                              The window lines (exterior and atrium facing) are substantially proportionate to the window lines (exterior and atrium facing) of any other leased space in the Office Section.

 

A right of extension shall be exercised, if at all, by written notice to Landlord given at least eighteen (18) months, but not more than twenty-four (24) months prior to the expiration of the then Term of this Lease and such notice must designate the portion of the then Premises, if less than all, with respect to which the extension is being exercised.  If a notice is given in compliance with the provisions hereof, this Lease shall, thereupon, be extended for the applicable extension period, subject to the terms of this ARTICLE 41, without the need for any further instrument to be executed (but either party shall execute such a confirmatory instrument upon the request of the other); and if no such notice is given, then Tenant’s right of extension shall be null and void. All of the terms, conditions and provisions of this Lease shall be applicable to any extension of the Term hereof, as if the termination date of the extension period were the date originally set forth herein for the expiration of the Term, except that (i) the exercised right of extension shall be of no further force or effect, so that there shall be no further right of extension with respect thereto, (ii) the Base Rent per square foot during the extension period shall be 95% of the Fair Market Rent (as hereinafter defined); and (iii) the Premises demised under this Lease during the extension period shall be the Premises set forth in Tenant’s notice of extension (which may not be less than seventy percent (70%) of the Premises demised under this Lease at the time the notice of extension is given, as described above) and Tenant’s Proportionate Tax Share and Tenant’s Proportionate Expense Share shall be proportionately adjusted, if necessary to reflect the reduced size of space included in the Premises.

 

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“Fair Market Rent” for purposes of this ARTICLE 41 shall mean the rent (base rent and additional rent adjusted, if necessary, to reflect the base years to be used for the applicable period) per rentable square foot for similar office space in the Building and in comparable buildings as reasonably located in the City of Boston, (i) without taking into account actual improvements (regardless of who paid for such improvements), or the cost of demolition of the space, and (ii) taking into account (A) the magnitude of any free rent or buildout allowance, (B) length of lease, (C) building amenities, (D) the location and floor levels of the premises, (E) services provided, (F) surrender rights, if any, (G) parking rights and obligations, (H) free rent, tenant allowances or other concessions and (I) all other relevant market factors and (iii) taking into account the brokerage commissions, if any, to be paid in connection with the renewal.

 

Within thirty (30) days after Tenant’s exercise of the extension option (or, if earlier, within thirty (30) days after Tenant’s request for Landlord’s rental rate, which may be made at any time after the date twenty-two (22) months prior to the then scheduled expiration of the Term and prior to Tenant’s giving its notice exercising the extension option), Landlord shall provide Tenant with its good faith estimate of the Fair Market Rent for the period of the extension.  If, within thirty (30) days after Tenant’s receipt of Landlord’s estimate (“Consideration Period”), Tenant shall not have accepted Landlord’s estimate of Fair Market Rent, the parties shall at the request of either party made by notice given within ten (10) days of the end of the Consideration Period, discuss the matter in good faith for thirty (30) days. If within such thirty (30) day period the parties have not agreed on the Fair Market Rent rate in writing, then Landlord and Tenant shall, during the ensuing fifteen (15) days, attempt to agree on an arbitrator not affiliated with either party (and if they are unable to do so, either party may request that the President of the American Arbitration Association in Boston choose an arbitrator, as promptly as possible, meeting the criteria set forth below; provided, however, the parties shall have the right during the ten (10) day period following the end of the fifteen (15) day period to submit the names of not more than two (2) potential arbitrators meeting the said criteria and if the parties or either of them makes such a submission, the choice of the President of the American Arbitration Association shall be made from the list of potential arbitrators so submitted). Such arbitrator shall have a period of thirty (30) days to determine which of Landlord’s estimate of Fair Market Rent or Tenant’s estimate of Fair Market Rent hereunder more closely corresponds to the Fair Market Rent and the estimate of Fair Market Rent which in the judgment of the arbitrator more closely corresponds to the arbitrator’s estimate of Fair Market Rent shall be the Fair Market Rent for purposes hereof and the determination shall be binding upon the parties. The arbitrator must choose either the Fair Market Rent estimate submitted by Landlord or the Fair Market Rent estimate submitted by Tenant. Such arbitrator shall have at least ten (10) years’ experience in the valuation and appraisal of first-class office rents for real estate in the City of Boston, be experienced with leasing transactions exceeding 100,000 square feet within the downtown Boston area, and have no then contractual relationship with either Landlord or Tenant. The expenses of the arbitrator shall be borne equally by the Landlord and the Tenant.

 

ARTICLE 42.
 EXPANSION RIGHTS

 

42.01                 Special Expansion Rights. Exhibit A-1 described certain spaces in Tower IV of the Building of which the Tenant is State Street Bank or an affiliate.  Each such space is

 

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designated on Exhibit A-1 as “SSB” and is referred to herein as an “SSB Expansion Space” and such spaces are referred to herein collectively as “SSB Expansion Spaces”. The SSB Expansion Spaces are subject to a lease which terminates on December 31, 2014, if not extended pursuant to its current terms by December 31, 2013. In the event the lease of the SSB Expansion Spaces is not extended pursuant to the terms of the currently existing rights of the tenant thereof to extend either because the tenant of the SSB Expansion Space does not give timely notice of extension or because such tenant provides a waiver of the right to extend prior to December 31, 2013, Landlord shall promptly notify Tenant and Tenant shall have the option to expand the Initial Premises by any or all of the SSB Expansion Spaces (but as to any designated SSB Expansion Space on any one floor of any Tower, the expansion option must be exercised as to the entire SSB Expansion Space), by notice to Landlord given not later than the earlier of (a) February 28, 2014 and (b) sixty (60) days following the date of Landlord’s notice, but in no event shall Tenant be obligated to exercise an option earlier than September 30, 2013. If Tenant timely provides such notice, the SSB Expansion Spaces which Tenant elected to add to the Premises shall be added thereto as of January 1, 2015 (subject to any holdover by the tenant thereof).

 

Exhibit A-1 also designates a portion of the first floor of Tower I as space that may become Available (as hereinafter defined) prior to July 1, 2014. It is also possible that an SSB Expansion Space may become Available prior to July 1, 2014 by reason of a negotiated termination of the existing lease with respect to such SSB Expansion Space.  Furthermore, space contiguous (vertically or horizontally) to the Initial Premises excluding the currently vacant (approximately 8,963 rsf) suite on the second floor of Tower Ill may become available by reason of a termination of lease. Each SSB Expansion Space that becomes Available prior to July 1, 2014; the Tower I Space described in Exhibit A-1 and any such contiguous space in Tower Ill that becomes Available prior to July 1, 2014, is referred to herein as an “Early Expansion Space” (and collectively as “Early Expansion Spaces”). If the current tenant of an Early Expansion Space notifies Landlord that it is willing to terminate its existing lease of an Early Expansion Space prior to July 1, 2014 and Landlord is willing, in its sole discretion, to permit such termination, Landlord shall notify Tenant of the anticipated date of such Early Expansion Space shall be Available (“EES Notice”), and Tenant shall have the option to expand the Initial Premises by the addition thereto of such Early Expansion Space, by notice (“EES Acceptance”) to Landlord given not later than the later to occur of (i) September 1, 2013 and (ii) thirty (30) days following the date Tenant receives the associated EES Notice.

 

An Early Expansion Space shall be added to the Premises on later to occur of September 1, 2013 and the Add Date (as hereinafter defined) for such Early Expansion Space.

 

“Add Date” as to an Early Expansion Space shall be five (5) business days following the later to occur of (A) the date the Landlord anticipated the Early Expansion Space would be available in the EES Notice and (B) the date such Early Expansion Space is Available and Tenant is given notice thereof by Landlord; but in no event prior to thirty (30) days following the date Tenant gives the EES Acceptance with respect to such Early Expansion Space; provided, however, the Add Date shall be deferred as provided in Article 7 with respect to Early Expansion Space to be delivered in “shell” rather than “as-is” condition as provided in Article 7.

 

Space shall be “Available” if the lease with respect thereto is terminated, such space is vacant and currently existing tenants of the Building do not have rights to such space which were

 

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in effect as of the date of this Lease. It is understood that Tenant’s rights hereunder with respect to Tower IV are superior to rights of any third party including State Street Bank except with respect to the existing renewal option of State Street Bank (without modification).

 

With respect to SSB Expansion Space and Early Expansion Space added to the Premises hereunder, such space shall as of the date the same become a part of the Premises be leased on all of the terms and conditions of this Lease as if the same were a part of the Premises originally designated in Section 1.19, and, accordingly, (ii) Base Rent shall be increased by the Annual Base Rent per Rentable Square Foot set forth in Section 1.11 of this Lease multiplied by the rentable square feet in the SSB Expansion Space and/or Early Expansion Space so added to the Premises originally designated as of the date so added, (iii) the Tenant’s Proportionate Expense Share and Tenant’s Proportionate Tax Share will be increased to reflect the additional square footage in the Premises as of the date so added, and (iv) the Allowance under Section 38 shall be increased by an amount equal to $60.00 per rentable square foot contained in the added SSB Expansion Space and/or Early Expansion Space.

 

42.02                 Expansion Rights. Tenant shall have two (2) additional options to expand the Premises, subject to Section 43.01(ii). The first option (“Expansion Option One”) is to expand the Premises by the addition thereto of approximately 16,654 rentable square feet on the 4th floor of Tower III (“Expansion Space One”) and the second option (“Expansion Option Two”) is to expand the Premises by the addition thereto of approximately 5,413 rentable square feet on the 4th floor of Tower III (“Expansion Space Two”). Expansion Space One and Expansion Space Two are designated on Exhibit A-3. In the event Tenant exercises a right of first offer as provided in Article 43 with respect to space within Expansion Space One and/or Expansion space Two, the space that landlord is obligated to deliver hereunder shall be correspondingly reduced.  The right to exercise Expansion Option One is subject only to the prior rights of the current tenant thereof to extend or renew its lease thereof pursuant to existing rights contained in its lease as of the date hereof on or before March 31, 2014. The right to exercise Expansion Option Two is subject only to the right of first offer granted to the current tenant of Expansion Space One prior to the date of this Lease. Each option to expand requires notice of the exercise of the option by the applicable Expansion Notice Date (hereinafter defined), time being of the essence, and the space which is the subject of such option to expand shall be delivered by Landlord to Tenant by the applicable Expansion Delivery Date (as hereinafter defined).  “Expansion Notice Date” for Expansion Option One is March 1, 2014 and for Expansion Option Two is July 1, 2014. “Expansion Delivery Date” for Expansion Space One is March 1, 2015 and for Expansion Space Two is July 1, 2015. Rent will be payable on the space added by the exercise of Expansion Option One beginning on July 1, 2015. Rent will be payable on the space added by the exercise of Expansion Option Two beginning on November 1, 2015. With respect to expansion space added to the Premises under this Section 42.02, such expansion space shall be leased on all of the terms and conditions of this Lease as amended from time to time, except that (i) the Term for such expansion space shall begin on the applicable Expansion Delivery Date and end on the Termination Date (as the same may be extended or reduced as provided in this Lease), (ii) Base Rent shall be increased by the addition thereto of the Annual Base Rent per Rentable Square Foot set forth in Section 1.11 of this Lease multiplied by the rentable square feet in the applicable expansion space, (iii) the Proportionate Share of Expenses and the Proportionate Share of Taxes will be increased to reflect the additional square footage in the Premises and (iv) Tenant shall receive an improvement allowance with respect to the

 

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expansion space at a rate of $60.00 (not $68.04) per rentable square foot of the applicable expansion space multiplied by the ratio of the number of months in the term of the expansion space to the number of months in the original term of this Lease, such improvement allowance to be administered on the same terms as the Allowance under ARTICLE 38, but only disbursed to the extent of Qualified Costs related to the expansion space, without the right to apply any unused portion to free rent and such allowance must be requisitioned by December 31, 2016. The expansion space shall be otherwise delivered in “as-is” condition, broom clean and free of all personal property, debris, tenants and occupants.  If Landlord is delayed delivering possession of Expansion Space One or Expansion Space Two, as applicable, beyond the applicable Expansion Delivery Date due to the holdover or unlawful possession of Expansion Space One or Expansion Space Two, as applicable, by any party, or otherwise, Landlord shall use reasonable efforts to obtain possession of, and deliver to Tenant, Expansion Space One or Expansion Space Two, as applicable, and the commencement of the term for Expansion Space One or Expansion Space Two, as applicable, and Tenant’s obligation to pay Rent therefor shall be postponed accordingly. If Landlord is unable to deliver an Expansion Space under this Section 42.02 by the date which is ninety (90) days following the applicable Expansion Delivery Date, Tenant shall have the right to withdraw its notice to expand the Premises by the addition of such Expansion Space at any time thereafter, but prior to delivery of such Expansion Space in the condition required hereunder, by thirty (30) days’ notice to Landlord of such withdrawal; provided, however, such notice of withdrawal shall be of no force or effect if, prior to the end of such thirty (30) days, Landlord delivers the Expansion Space to Tenant in the condition required hereunder.

 

42.03                 Expansion Amendment.  If Tenant exercises an expansion option under Section 41.01 and/or Section 42.02, Landlord shall prepare an amendment (an “Expansion Amendment”) adding the applicable expansion space to the Premises on the terms set forth above and reflecting the changes in the Base Rent, Rentable Square Footage of the Premises, Tenant’s Proportionate Share of Taxes and Tenant’s Proportionate Share of Expenses and other appropriate terms. A copy of the Expansion Amendment shall be sent to Tenant and, subject to Landlord and Tenant agreeing upon any reasonable changes requested by Tenant, Tenant shall execute and return the expansion Amendment to Landlord within thirty (30) days thereafter, and Landlord shall deliver a copy thereof executed by Landlord to Tenant, but an otherwise valid exercise of an expansion option shall be fully effective, whether or not an Expansion Amendment is executed.

 

42.04                 Bentley Space. In the event Tenant is offered and elects to sublease the “Bentley” space consisting of 13,294 rentable square feet of space on the 7th floor of Tower Ill, designated by Landlord as Space #3701, from the tenant thereof, Landlord will consent to such sublease to Tenant and provide Tenant the option to add the sublease space to the Premises upon expiration of such sublease on the terms then in effect under this Lease, and if Tenant adds the sublease space to the Premises, Tenant shall receive an improvement allowance with respect to the expansion space at a rate of $60.00 (not $68.04) per rentable square foot of such space multiplied by the ratio of the number of months remaining in the term of this Lease at the date such space becomes a part of the Premises to the number of months in the original term of this Lease, such improvement allowance to be administered on the same terms as the Allowance under ARTICLE 38, but only disbursed to the extent of Qualified Costs related to the Bentley space, without the right to apply any unused portion to free rent.

 

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ARTICLE 43.
 RIGHT OF FIRST OFFER

 

43.01                 Grant of Option; Conditions. Tenant shall have a continuing right of first offer (the “Right of First Offer”) with respect to the following space in the Office Section:

 

(i)                                     Commencing on the date hereof, all space in Tower IV other than on the first floor;

 

(ii)                                  Commencing on the date hereof, any space in Tower Ill that is contiguous to the then Premises, whether on a floor above or below the Premises (including SSB Expansion Space and Early Expansion Space not added under Section 41.01 and any expansion space under Section 41.02) or on the same floor as a portion of the Premises, but in Tower Ill;

 

(iii)                               Commencing July 1, 2019, any space in Tower I, but subject to the rights, existing as of the date of this Lease, of other tenants of the Building.

 

Any such space that becomes available as hereinafter described is referred to herein as the “Offering Space”. If during the Term Landlord determines (in Landlord’s sole judgment) that Offering Space is available to lease to a third party other than the existing tenant or licensee of the Offering Space, then Landlord shall so advise Tenant (the “Advice”). Tenant may lease such Offering Space in its entirety only, under the applicable terms described below, by delivering written notice of exercise to Landlord (the “Notice of Exercise”) within ten business (10) days after the date of the Advice.  In any event, Tenant’s delivery of a Notice of Exercise shall be deemed to be the irrevocable exercise by Tenant of its Right of First Offer subject to and in accordance with the provisions of this ARTICLE 43. Any reference to the Advice below shall be a reference to the Advice with respect to which a Notice of Exercise was given.

 

Notwithstanding the foregoing, Tenant shall have no such Right of First Offer and Landlord need not provide Tenant with an Advice, if:

 

(a)                                 A material default is then continuing at the time that Landlord would otherwise deliver the Advice; or

 

(b)                                 Tenant herein named (or a transferee pursuant to a Related Party Transfer, as defined in ARTICLE 17 of this Lease) is not in occupancy of at least 70% of the Premises initially leased at the time Landlord would otherwise deliver the Advice; or

 

(c)                                  This Lease has been assigned (other than pursuant to a Related Party Transfer) prior to the date Landlord would otherwise deliver the Advice.

 

43.02                 Terms for Offering Space. The term for the Offering Space shall commence upon the commencement date stated in the Advice and shall thereafter continue for the balance of the Term of this Lease as the same may be extended; provided, however, in the event the commencement date for Offering Space as set forth in the Advice is to commence on or after July 1, 2019, the term of the lease with respect to the Offering Space shall be the term set forth in the Advice with respect thereto. The Offering Space shall be added to the then Premises under

 

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this Lease on all of the terms and conditions of this Lease as the same may be amended from time to time except as hereinafter provided and except as provided in the immediately preceding sentence. In the event the Offering Space becomes a part of the Premises prior to July 1, 2019, as of the date the Offering Space term commences (i) the amount added to Base Rent on account of the Offering Space shall be the Annual Base Rent per Rentable Square Foot set forth in Section 1.11 of this Lease multiplied by the rentable square feet in the Offering Space and (ii) the Tenant’s Proportionate Expanse Share and Tenant’s Proportionate Tax Share shall be increased to reflect the additional square footage in the Premises and (iii) Tenant shall receive an improvement allowance to be used for Qualified Costs with respect to the Offering Space at a rate of $60.00 per rentable square foot in the Offering Space multiplied by the ratio of the number of months in the Offering Space term to the number of months in the original Term of this Lease, such improvement allowance to be administered on the same terms as the Allowance under ARTICLE 38, but only disbursed to the extent of Qualified Costs related to the Offering Space, without the right to apply any unused portion to rent and such improvement allowance must be requisitioned by the date which is fifteen (15) months following the date of delivery of the Offering Space, but the Offering Space shall be otherwise delivered in the condition set forth in the Advice. In the event the Offering Space becomes a part of the Premises after June 30, 2019, Base Rent under this Lease shall be increased by the Prevailing Market Rent (as hereinafter defined) for the Offering Space and the terms and conditions under which the Offering Space shall be leased (including, without limitation, the duration of the term for the Offering Space) shall otherwise be as set forth in the Advice with respect to the Offering Space.

 

43.03                 Definition of Prevailing Market Rent. “Prevailing Market Rent” for purposes of this ARTICLE 43 shall mean the rent (base rent and additional rent adjusted, if necessary, to reflect the base years to be used for the applicable period) per rentable square foot for similar office space in the Building and in comparable buildings as reasonably located in the City of Boston (i) taking into account (A) any difference in the base years between the Offering Space and the compared space for measurement of additional rent on account of taxes and expenses, (B) the magnitude of any free rent or buildout allowance included in rent for the compared space, (C) length of lease, (D) building amenities in the respective buildings, (E) the location and floor levels of the Offering Space and the compared space, (F) services provided in the respective buildings, (G) surrender rights, if any, in the compared space (H) parking rights and obligations, (I) free rent, tenant allowances or other concessions in the compared space and (J) all other relevant market factors and (iii) taking into account the brokerage commissions, if any, to be paid in connection with the leasing the respective spaces.

 

43.04                 Determination of Prevailing Market Rent. Within thirty (30) days after Landlord’s receipt of the Notice of Exercise, if Base Rent is to be determined with reference to Prevailing Market Rent, Landlord shall provide Tenant with its good faith estimate of the Prevailing Market Rent. If, within thirty (30) days after Tenant’s receipt of Landlord’s estimate, Tenant shall not have notified Landlord of its objection to Landlord’s estimate and of Tenant’s estimate of Prevailing Market Rent, the estimate of Prevailing Market Rent quoted by Landlord shall be deemed to be the Prevailing Market Rent for the Offering Space. If Tenant so notifies Landlord of its objection, the parties shall discuss the matter in good faith for thirty (30) days after Tenant’s objection notice. If within such thirty (30) day period the parties have not agreed on the Prevailing Market Rent rate in writing, then Landlord and Tenant shall, during the ensuing fifteen (15) days, attempt to agree on an arbitrator not affiliated with either party (and if they are

 

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unable to do so, either party may request that the President of the American Arbitration Association in Boston choose an arbitrator, as promptly as possible, meeting the criteria set forth below; provided, however, the parties shall have the right during the ten (10) day period following the end of the fifteen (15) day period to submit the names of not more than two (2) potential arbitrators meeting the said criteria and if the parties or either of them makes such a submission, the choice of the President of the American Arbitration Association shall be made from the arbitrators so submitted).  Such arbitrator shall have a period of thirty (30) days to determine which of Landlord’s estimate of Prevailing Market Rent or Tenant’s estimate of Prevailing Market Rent hereunder more closely corresponds to the Prevailing Market Rent and the estimate of Prevailing Market Rent which more closely corresponds to the arbitrator’s estimate of Prevailing Market Rent shall be the Prevailing Market Rent for purposes hereof with respect to the subject Offering Space and the determination shall be binding upon the parties. The arbitrator must choose either the Prevailing Market Rent estimate submitted by Landlord or the Prevailing Market Rent Estimate submitted by Tenant.  Such arbitrator shall have at least ten (10) years’ experience in the valuation and appraisal of first-class office rents for real estate in the City of Boston, be experienced with leasing transactions exceeding 100,000 square feet within the downtown Boston area, and have no then contractual relationship with either Landlord or Tenant. The expenses of the arbitrator shall be borne equally by the Landlord and the Tenant.

 

43.05                 Condition of Offering Space. The Offering Space (including improvements therein) shall be delivered to Tenant broom-clean and free of occupants and personal property but otherwise in its condition and as-built configuration existing on the earlier of the date Tenant takes possession of the Offering Space or as of the date the term for such Offering Space commences.  If Landlord is delayed delivering possession of the Offering Space due to the holdover or unlawful possession of the Offering Space by any party, or otherwise, Landlord shall use reasonable efforts to obtain possession of the Offering Space, and the commencement of the term for the Offering Space and Tenant’s obligation to pay Rent for such Offering Space shall be postponed until the date Landlord delivers possession of the Offering Space to Tenant free from occupancy by any party and otherwise in the condition required hereunder.  If Landlord is unable to deliver an Offering Space under this Article 43 by the date which is ninety (90) days following the commencement date set forth in the applicable Advice, Tenant shall have the right to withdraw its notice to add the Offering Space to the Premises at any time thereafter, but only prior to delivery of such Expansion Space in the condition required hereunder, by thirty (30) days’ notice to Landlord of such withdrawal; provided, however, such notice of withdrawal shall be of no force or effect if, prior to the end of such thirty (30) days, Landlord delivers the Offering Space to Tenant in the condition required hereunder.

 

43.06                 Offering Amendment.  If Tenant exercises its Right of First Offer, Landlord shall prepare an amendment (an “Offering Amendment”) adding the Offering Space to the Premises on the terms set forth in the Advice and reflecting the changes in the Base Rent, Rentable Square Footage of the Premises, Tenant’s Proportionate Share of Taxes and Tenant’s Proportionate Share of Expenses and other appropriate terms. A copy of the Offering Amendment shall be sent to Tenant and, subject to Landlord and Tenant agreeing upon any reasonable changes requested by Tenant, Tenant shall execute and return the Offering Amendment to Landlord within thirty (30) days thereafter, but an otherwise valid exercise of a Right of First Offer shall be fully effective, whether or not an Offering Amendment is executed.

 

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ARTICLE 44.
 ROOFTOP COMMUNICATIONS

 

Landlord hereby grants to Tenant a license to use space on the roof of the Building for communications infrastructure, Tenant shall have the right to access and use the roof of the Building (such right being referred to herein as a “Roof License”), commencing on the Commencement Date, in accordance with the following terms and conditions:

 

A.                                    During the term of a Roof License, Tenant, at no additional cost other than the costs incurred by Tenant in connection with installation and maintenance, may use the Roof Space (as hereinafter defined) for the purpose of installing, operating and maintaining microwave dishes, antennae and/or other communication devices approved by the Landlord (each, a “Dish/Antenna”), such approval not to be unreasonably withheld, conditioned or delayed.  Tenant shall have no right to use the Roof Space under a Roof License subsequent to the Termination Date. Tenant may elect to terminate the use of the Roof Space and so terminate the Roof License under which Tenant is using the Roof Space by giving not less than thirty (30) days notice to Landlord of Tenant’s intention to cease using the Roof Space, complying with its obligations relating to removal of the Dish/Antenna Items (as defined below) not later than such date. The exact location of the space on the roof to be used by Tenant under a Roof License shall be reasonably designated by Landlord (the “Roof Space”).  Landlord reserves the right at Landlord’s sole cost and expense and without material disruption to Tenant, to relocate the Roof Space as reasonably necessary during the Term. Landlord’s designation shall take into account Tenant’s use of the Dish/Antenna Items.  Notwithstanding the foregoing, Tenant’s right to install the Dish/Antenna shall be subject to the reasonable approval rights of Landlord and Landlord’s architect and/or engineer with respect to the plans and specifications of the Dish/Antenna Items (as hereinafter defined) including without limitation appearance, the size of the Dish/Antenna, the manner in which the Dish/Antenna is attached to the roof of the Building and the manner in which any cables are run to and from the Dish/Antenna, it being understood that Tenant shall have the right at its cost and expense to run conduit to connect the Premises to the Dish/Antenna, provided that Tenant installs such conduit in existing chases reasonably designated by Landlord, installs such conduit in a manner that avoids, and at times that do not result in, interference with other tenants of the Building as of the date of this Lease and their equipment and installations and performs such installation in compliance with rules with respect thereto from time to time promulgated by Landlord using contractors approved by Landlord and providing such insurance coverage as Landlord may reasonably require. The Dish/Antenna must be tagged with weatherproof labels showing manufacturer, model, frequency range, and name of Tenant. In addition, the cable between the Dish/Antenna and the Premises, and any other cable connected to the Dish/Antenna (the “Dish/Antenna Cable”) must be tagged in the telecom closet on each floor with a label showing Tenant’s name, phone number and suite number. The precise specifications and a general description of the Dish/Antenna along with all documents Landlord reasonably requires to review the installation of the Dish/Antenna Items (the “Communications Plans and Specifications”) shall be submitted to Landlord for Landlord’s written approval no later than twenty (20) days before Tenant commences to install the Dish/Antenna.  Tenant shall be solely responsible for obtaining all necessary governmental and regulatory approvals and for the cost of installing, operating, maintaining and removing the Dish/Antenna.  Tenant shall notify Landlord upon completion of the installation of the Dish/Antenna Items. If Landlord determines that the Dish/Antenna does not comply with the approved Communications Plans and

 

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Specifications, that the Building has been damaged during installation of the Dish/Antenna Items or that the installation was defective, Landlord shall notify Tenant of any noncompliance or detected problems and Tenant shall act promptly with the application of diligence to cure the defects. If the Tenant fails to promptly cure the defects, Tenant shall pay to Landlord upon demand the cost, as reasonably determined by Landlord, of correcting any defects and repairing any damage to the Building caused by such installation.  If at any time Landlord, in its sole but reasonable discretion, deems it necessary, Tenant shall provide and install, at Tenant’s sole cost and expense, appropriate aesthetic screening, reasonably satisfactory to Landlord, for the Dish/Antenna (the “Aesthetic Screening”).

 

B.                                    Landlord agrees that during the term of a Roof License, Tenant, upon reasonable prior written notice to Landlord, shall have access to the Building and the Roof Space for the purpose of installing, maintaining, repairing and removing the Dish/Antenna, Dish/Antenna Cable, the appurtenances and the Aesthetic Screening, if any (collectively, the “Dish/Antenna Items”), all of which shall be performed by Tenant or Tenant’s authorized representative or contractors, which shall be approved by Landlord (such approval not to be unreasonably withheld, conditioned or delayed), at Tenant’s sole cost and risk. It is agreed, however, that only authorized engineers, employees or properly authorized contractors of Tenant, FCC inspectors, or persons under their direct supervision will be permitted to have access to the roof of the Building and the Roof Space. Tenant further agrees to exercise such control over the people requiring access to the roof of the Building and the Roof Space as is necessary to keep to a minimum the number of people having access to the roof of the Building and the Roof Space and the frequency of their visits.

 

C.                                    It is further understood and agreed that the installation, maintenance, operation and removal of the Dish/Antenna Items are not permitted to damage the Building or the roof thereof, or unreasonably interfere with the use of the Building and roof by Landlord or other tenants of the Building. Tenant shall be responsible for any material damage caused to the roof or any other part of the Building, to the extent caused by Tenant or any of its agents or representatives as a result of Tenant’s exercise of its rights under a Roof License under this ARTICLE 44. Tenant agrees that at all times during the term of a Roof License, it will keep the roof of the Building and the Roof Space free of all trash or waste materials produced by Tenant or Tenant’s agents, employees or contractors.

 

D.                                    Tenant agrees to install only Dish/Antenna Items of types and frequencies which will not cause unreasonable interference to Landlord or existing tenants of the Building.  If Tenant’s Dish/Antenna Items cause such interference, Tenant will change the frequency on which it transmits and/or receives and take any other steps necessary to eliminate the interference including relocating the Dish/Antenna to another location on the roof of the Building made available by Landlord. If said interference cannot be eliminated within a reasonable period of time, in the reasonable judgment of Landlord, then Tenant agrees to remove the Dish/Antenna from the Roof Space and to remove such other Dish/Antenna Items as Landlord may request, but may reinstall the same, at Tenant’s sole cost and expense, when it has demonstrated that such reinstallation will not result in interference.

 

E.                                     Tenant, at its sole cost and expense, and at its sole risk, shall install, operate and maintain the Dish/Antenna Items in a good and workmanlike manner, and in compliance with all

 

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building, electric, communication, and safety codes, ordinances, standards, regulations and requirements, now in effect or hereafter promulgated, of the Federal Government, including, without limitation, the Federal Communications Commission (the “FCC”), the Federal Aviation Administration (“FAA”) or any successor agency of either the FCC or FAA having jurisdiction over radio or telecommunications, and of the state, city and county in which the Building is located. Landlord and its agents assume no responsibility for the licensing, operation and/or maintenance of the Dish/Antenna Items. Tenant has the responsibility of carrying out the terms of its FCC license in all respects. The Dish/Antenna shall be connected to Landlord’s power supply in strict compliance with all applicable building, electrical, fire and safety codes. Neither Landlord nor its agents shall be liable to Tenant for any stoppages or shortages of electrical power furnished to the Dish/Antenna or the Roof Space because of any act, omission or requirement of the public utility serving the Building, or the act or omission of any other tenant, invitee or licensee or their respective agents, employees or contractors, or for any other cause beyond the reasonable control of Landlord, and Tenant shall not be entitled to any rental abatement for any such stoppage or shortage of electrical power.  Except as may arise from the negligence of the Landlord, neither Landlord nor its agents shall have any responsibility or liability for the conduct or safety of any of Tenant’s representatives or repair, maintenance and engineering personnel while in or on any part of the Building or the Roof Space in connection with installing or maintaining the Dish/Antenna Items. No failure of service under a Roof License shall constitute a Service Failure under this Lease.

 

F.                                      The Dish/Antenna Items shall remain the personal property of Tenant, and shall be removed by Tenant at its own expense at the expiration or earlier termination of a Roof License or Tenant’s right to possession hereunder. Tenant shall repair any damage caused by such removal, including the patching of any holes. Tenant agrees to maintain all of the Dish/Antenna Items placed on or about the roof or in any other part of the Building in proper operating condition and maintain same in satisfactory condition as to safety in Landlord’s sole discretion. Such maintenance and operation shall be performed in a manner to avoid any unreasonable interference with any other tenants or Landlord.

 

G.                                    In light of the specialized nature of the Dish/Antenna, Tenant shall be permitted to utilize the services of its choice for installation, operation, removal and repair of the Dish/Antenna Items, subject to the reasonable approval of Landlord. Notwithstanding the foregoing, Tenant must provide Landlord with prior written notice of any such installation, removal or repair and coordinate such work with Landlord in order to avoid voiding or otherwise adversely affecting any warranties granted to Landlord with respect to the roof. If necessary, Tenant, at its sole cost and expense, shall retain any contractor having a then existing warranty in effect on the roof to perform such work (to the extent that it involves the roof), or, at Tenant’s option, to perform such work in conjunction with Tenant’s contractor. If Landlord contemplates roof repairs that could affect Tenant’s Dish/Antenna, or which may result in an interruption of the Tenant’s telecommunication service, Landlord shall formally notify Tenant at least thirty (30) days in advance (except in cases of an emergency) prior to the commencement of such contemplated work in order to allow Tenant to make other arrangements for such service and Landlord shall diligently perform (or cause the performance of) such roof repairs so as to minimize the interference of Tenant’s Dish/Antenna.

 

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H.                                   Tenant shall not allow any provider of telecommunication, video, data or related services (“Communication Services”) to locate any equipment on the roof of the Building or in the Roof Space for any purpose whatsoever unrelated to Tenant’s (or its permitted subtenants’) own use, nor may Tenant use the Roof Space and/or Dish/Antenna to provide Communication Services to an unaffiliated tenant, occupant or licensee of another building, or to facilitate the provision of Communication Services on behalf of another Communication Services provider to an unaffiliated tenant, occupant or licensee of the Building or any other building.

 

I.                                        Tenant acknowledges that Landlord may at some time establish a standard license agreement (“Standard License Agreement”) with respect to the use of roof space by tenants of the Building. Tenant, upon request of Landlord, shall enter into such Standard License Agreement with Landlord provided that such agreement does not materially alter the rights or obligations of Tenant for a Roof License hereunder with respect to the Roof Space.

 

J.                                        Tenant specifically acknowledges and agrees that the terms and conditions of ARTICLE 14 regarding indemnification and waiver of claims shall apply with full force and effect to Roof Space and any other portions of the roof accessed or utilized by Tenant, its representatives, agents, employees or contractors.

 

K.                                   If Tenant defaults under any of the terms and conditions of this ARTICLE 44, and Tenant fails to cure said default within any applicable cure period provided for in this Lease, the same shall be an Event of Default under ARTICLE 24 of this Lease, but Landlord’s sole remedies for such a default shall be to terminate a then-existing Roof License on notice to Tenant and, in addition, Landlord may perform any non-monetary obligations of Tenant hereunder, including, without limitation the obligations of Tenant to remove all or any of the Dish/Antenna Items, and restore the Building and the Roof Space to the condition that existed prior to the installation of the Dish/Antenna Items. Tenant shall be liable for all out of pocket costs and expenses Landlord incurs in removing such Dish/Antenna Items and repairing any damage to the Building, the roof of the Building and the Roof Space caused by the installation, operation or maintenance of the Dish/Antenna Items. In such event, Tenant shall reimburse Landlord for all such costs incurred by Landlord as aforesaid together with an administrative charge equal to 10% of the cost of the work performed by Landlord. The amount to be reimbursed hereunder shall be paid together with interest from the date such cost is paid by Landlord (as evidenced by paid invoices supplied by Landlord to Tenant) at the rate of 12% per annum.

 

ARTICLE 45.
 EMERGENCY GENERATOR

 

A.                                    In addition to Tenant’s rights under ARTICLE 44 of this Lease, Landlord hereby grants to Tenant the right to install in a location or locations (collectively “Location”) in the lower level of the Building mutually agreeable to Landlord and Tenant, a standby generator and related equipment.  The generator and such equipment installed by Tenant, together with the equipment already referred to in said ARTICLE 44, shall be included in the definition of Equipment for all purposes of this Lease.  Notwithstanding anything elsewhere in this Lease to the contrary, the generator and related equipment need not be removed by Tenant prior to the Termination Date but shall be removed by Tenant no later than the Termination Date. Obligations with respect to removal shall survive any termination of this Lease.

 

71

 

B.                                    Landlord agrees that Tenant, upon reasonable prior written notice to Landlord, shall have access to the Location for the purpose of installing, maintaining, repairing and removing the generator and related equipment, all of which shall be performed by Tenant or Tenant’s authorized representative or contractors, which shall be approved by Landlord (such approval to be not unreasonably withheld, conditioned or delayed), at Tenant’s sole cost and risk. It is agreed, however, that only authorized engineers, employees or properly authorized contractors of Tenant or persons under their direct supervision will be permitted to have access to the Location. Tenant further agrees to exercise firm control over the people requiring access to the Location in order to keep to a minimum the number of people having access to the Location and the frequency of their visits.

 

C.                                    Tenant agrees to be responsible for any damage caused to the Location or any other part of the Building, which may be caused by Tenant or any of its agents or representatives as a result of Tenant’s exercise of its rights under this ARTICLE 45.

 

D.                                    Tenant, at its sole cost and expense, and at its sole risk, shall install, operate and maintain the generator and related equipment in a good and workmanlike manner, and in compliance with all building and safety codes, ordinances, standards, regulations and requirements, now in effect or hereafter promulgated.  Landlord and its agents assume no responsibility for the licensing, operation and/or maintenance of the generator and related equipment.  Except as may arise from the negligence of the Landlord, neither Landlord nor its agents shall have any responsibility or liability for the conduct or safety of any of Tenant’s representatives or repair, maintenance and engineering personnel while in or on any part of the Building or the Location in connection with installing or maintaining the generator and related equipment. No failure of service hereunder shall constitute a Service Failure under this Lease.

 

E.                                     Tenant agrees to maintain all of the generator and related equipment placed on or about the Location or in any other part of the Building in proper operating condition and maintain same in satisfactory condition as to safety in Landlord’s sole, reasonable discretion. Such maintenance and operation shall be performed in a manner to avoid any unreasonable interference with any other tenants or Landlord.

 

F.                                      In light of the specialized nature of the generator and related equipment, Tenant shall be permitted to utilize the services of its choice for installation, operation, removal and repair of the generator and related equipment, subject to the reasonable approval of Landlord. Notwithstanding the foregoing, Tenant must provide Landlord with prior written notice of any such installation, removal or repair and coordinate such work with Landlord in order to avoid voiding or otherwise adversely affecting any warranties granted to Landlord with respect to the Location.

 

G.                                    Tenant specifically acknowledges and agrees that the terms and conditions of ARTICLE 14 regarding indemnification and waiver of claims shall apply with full force and effect to the Location and any other portions of the Building accessed or utilized by Tenant, its representatives, agents, employees or contractors.

 

H.                                   If Tenant defaults under any of the terms and conditions of this ARTICLE 45, and Tenant fails to cure said default within any applicable cure period provided for in this Lease, the

 

72

 

same shall be an Event of Default under ARTICLE 24 of this Lease, but Landlord’s sole remedies for such a default shall be to terminate the rights hereunder on notice to Tenant and Tenant and, in addition, Landlord may perform any non-monetary obligations of Tenant hereunder, including, without limitation the obligations of Tenant to remove all or any of the generator and related equipment, and restore the Location to the condition that existed prior to the installation of the generator and related equipment. Tenant shall be liable for all out of pocket costs and expenses Landlord incurs in removing the generator and related equipment and repairing any damage to the Building caused by the installation, operation or maintenance of the generator and/or related equipment.  In such event, Tenant shall reimburse Landlord for all such costs incurred by Landlord as aforesaid together with an administrative charge equal to 10% of the cost of the work performed by Landlord. The amount to be reimbursed hereunder shall be paid together with interest from the date such cost paid is by Landlord (as evidenced by paid invoices supplied by Landlord to Tenant) at the rate of 12% per annum.

 

{Signatures on Next Page]

 

73

 

Executed as a sealed instrument as of the date first above written.

 

LANDLORD:

 

COPLEY PLACE ASSOCIATES, LLC, a Delaware limited liability company

 

	
By:
    	
SPG COPLEY ASSOCIATES, a Delaware
    
	
 
    	
limited liability company, its Managing   Member
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/ David Simon
    	
 
    
	
 
    	
 
    	
David Simon
    	
 
    
	
 
    	
 
    	
Hereunto duly authorized
    	
 
    

 

 

TENANT:

 

WAYFAIR LLC

 

	
By:
    	
/s/ Nicholas Malone
    	
 
    
	
 
    	
its:         CFO         and not individually
    	
 
    
	
 
    	
Hereunto duly authorized
    	
 
    

 

 

EXHIBIT A

 

OFFICE LEASE

 

FOR

 

WAYFAIR LLC

 

COPLEY PLACE

 

BOSTON, MASSACHUSETTS

 

PREMISES

 

Exhibit A-1

 

 

Exhibit A-2

 

 

Exhibit A-3

 

 

Exhibit A-4

 

 

Exhibit A-5

 

 

Exhibit A-6

 

EXHIBIT A-1

 

OFFICE LEASE

 

FOR

 

WAYFAIR LLC

 

COPLEY PLACE

 

BOSTON, MASSACHUSETTS

 

EARLY EXPANSION SPACES

 

Exhibit A-1-1

 

 

Exhibit A-1-2

 

 

Exhibit A-1-3

 

 

Exhibit A-1-4

 

 

Exhibit A-1-5

 

EXHIBIT A-2

 

OFFICE LEASE

 

FOR

 

WAYFAIR LLC

 

COPLEY PLACE

 

BOSTON, MASSACHUSETTS

 

ROOF DECK PLAN

 

Exhibit A-2-1

 

 

Exhibit A-2-2

 

EXHIBIT A-3

 

OFFICE LEASE

 

FOR

 

WAYFAIR LLC

 

COPLEY PLACE

 

BOSTON, MASSACHUSETTS

 

EXPANSION SPACE ONE AND EXPANSION SPACE TWO

 

Exhibit A-3-1

 

 

Exhibit A-3-2

 

 

Exhibit A-3-3

 

EXHIBIT B-1

 

OFFICE LEASE

 

FOR

 

WAYFAIR LLC

 

COPLEY PLACE

 

BOSTON, MASSACHUSETTS

 

SHELL WORK

 

·                                          Removal of floor surface to concrete slab, including all raised access flooring and ramps;

 

·                                          Removal of ceiling surfaces and lighting, perimeter soffit and linear diffuser to remain;

 

·                                          Installation of temporary lighting;

 

·                                          Removal of HVAC diffusers and ductwork back to VAV/Fan Powered Terminal Boxes;

 

·                                          Removal of all supplemental HVAC equipment and piping associated with existing tenant computer rooms;

 

·                                          Plumbing to be cut, capped and removed back to risers;

 

·                                          Fire alarm system devices secured to structure or Building elements;

 

·                                          Removal of office(s), and partitions, doors, sidelights and interior glass;

 

·                                          Electrical distribution in the Premises to be made safe and removed back to tenant distribution panel. All supplemental electrical panels and electrical equipment located within the open space to be removed back to core tenant distribution panels;

 

·                                          Removal of all existing tenant tel/data cabling;

 

·                                          Gypsum soffits with linear diffusers to remain;

 

·                                          Gypsum Columns to remain;

 

·                                          Infill existing floor cores;

 

·                                          Code compliant tenant demising walls to be provided throughout space.

 

Exhibit B-1-1

 

EXHIBIT B-2

 

OFFICE LEASE

 

FOR

 

WAYFAIR LLC

 

COPLEY PLACE

 

BOSTON, MASSACHUSETTS

 

LANDLORD’S WORK

 

Landlord shall be responsible for all demising work with respect to the Initial Premises at its sole cost and expense. Landlord shall also be responsible at its sole cost and expense for all restroom renovations on any floor of any Tower on which Tenant has leased, initially or during the Term, more than 50% of the floor area of such floor. Men’s and women’s restroom renovations, compliant with ADA (if necessary, including construction of additional handicap restrooms), will include plumbing fixtures, hot and cold running water, ceramic tile floors and wall surfaces, accessories and dividers, and ceilings and lighting.

 

Exhibit B-2-1

 

EXHIBIT C

 

OFFICE LEASE

 

FOR

 

WAYFAIR LLC

 

COPLEY PLACE

 

BOSTON, MASSACHUSETTS

 

RULES AND REGULATIONS

 

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

 

(a)                                 Any sign, lettering, picture, notice, or advertisement installed within Tenant’s Premises (including but not limited to Tenant identification signs on doors to the Premises) which is visible outside of the Premises shall be installed at Tenant’s cost and in such manner, character and style as Landlord may approve in writing.  No sign, lettering, picture, notice or advertisement shall be placed on any outside window or in any position so as to be visible from outside the Building or from any atrium or lobbies of the Building.

 

(b)                                 Tenant shall not use the name of the Building or use pictures or illustrations of the Building in advertising or other publicity, without the prior written consent of Landlord, which consent shall not be unreasonably withheld.

 

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

 

(d)                                 Tenant shall not make noises, cause disturbances, create vibrations, odors or noxious fumes or use or operate any electrical or electronic devices or other devices that emit sound, waves or are dangerous to other tenants and occupants of the Building or that would interfere with the operation of any 

 

Exhibit C-1

 

device or equipment or radio or television broadcasting or reception from or within the Building or elsewhere, or with the operation of roads or highways in the vicinity of the Building and shall not place or install any projections, antennae, aerials or similar devices inside or outside of the Premises.

 

(e)                                  Tenant shall not make any room to room canvass to solicit business from other tenants in the Building, and shall not exhibit, sell or offer to sell, use, rent or exchange any item or services in or from the Premises unless ordinarily embraced within Tenant’s use of the Premises as specified in its lease.

 

(f)                                   Tenant shall not waste electricity or water and agrees to cooperate fully with Landlord to assure the most effective operation of the Building’s heating and air conditioning and shall refrain from attempting to adjust any controls.  Tenant shall keep doors from the Premises to the public corridor doors closed when not in use.

 

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

 

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

 

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

 

(j)                                    Tenant shall not install nor operate machinery or any mechanical devices of a nature not directly related to Tenant’s ordinary use of the Premises without the written permission of Landlord.

 

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

 

(l)                                     Tenant shall not, and Tenant shall not permit or suffer anyone to:

 

(1)                                 Cook in the Premises (other than through the use of microwave or toaster oven(s)), but nothing herein shall prevent the use of customary coffee stations;

 

Exhibit C-2

 

(2)                                 Place vending or dispensing machines of any kind in or about the Premises for use by other than its employees, guests and business invitees;

 

(3)                                 At any time sell, purchase or give away, or permit the sale, purchase or gift of, food in any form other than to employees, guests and business invitees;

 

(m)                             Tenant shall not:

 

(1)                                 Use the Premises for lodging, manufacturing or for any immoral or illegal purposes.

 

(2)                                 Use the Premises to engage in the manufacture or sale of any spirituous, fermented, intoxicating or alcoholic beverages.

 

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

 

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

 

(o)                                 Tenant shall comply with all applicable federal, state and municipal laws, ordinances and regulations and building rules, and shall not directly or indirectly make any use of the Premises which may be prohibited thereby or which shall be dangerous to person or property or shall increase the cost of insurance or require additional insurance coverage.

 

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

 

(q)                                 Bicycles shall not be permitted in the Building in other than Landlord designated locations.

 

(r)                                    Tenant shall cooperate and participate in all security programs affecting the Building.

 

(s)                                   In the event Landlord allows one or more tenants in the Building to do any act prohibited herein, Landlord shall not be precluded from denying any other tenant the right to do any such act.

 

Exhibit C-3

 

(t)                                    Tenant, or the employees, agents, servants, visitors or licensees of Tenant shall not at any time place, leave or discard any rubbish, paper, articles, or objects of any kind whatsoever outside the doors of the Premises or in the corridors or passageways of the Building.  No animals or birds shall be brought or kept in or about the Building.

 

(u)                                 Landlord shall have the right to prohibit any advertising by Tenant which, in Landlord’s opinion, tends to impair the reputation of the Building or its desirability for offices, and, upon written notice from Landlord, Tenant will refrain from or discontinue such advertising.

 

(v)                                 Except as permitted under the Lease or in connection with the installation of any Tenant improvements and office decorations, Tenant shall not mark, paint, drill into, or in any way deface any part of the Building or the Premises.  No boring, driving of nails or screws, cutting or stringing of wires shall be permitted, except with the prior written consent of Landlord, and as Landlord may direct.  Tenant shall not install any resilient tile or similar floor covering in the Premises except with the prior approval of Landlord.  The use of cement or other similar adhesive material is expressly prohibited.

 

(w)                               Landlord shall have the right to limit or control the number and format of listings on the main Building directory.

 

Exhibit C-4

 

EXHIBIT D

 

OFFICE LEASE

 

FOR

 

WAYFAIR LLC

 

COPLEY PLACE

 

BOSTON, MASSACHUSETTS

 

CLEANING SPECIFICATIONS

 

I.             CLEANING -TENANT’S AREAS

 

A.                                    NIGHTLY- MONDAY THROUGH FRIDAY HOLIDAYS EXCLUDED

 

1.                                      DUST MOP, ALL STONE, CERAMIC, TILE, TERRAZZO, AND OTHER TYPES OF UNWAXED FLOORING, USING A TREATED MOP.

 

2.                                      DUST MOP ALL VINYL, ASBESTOS, ASPHALT, RUBBER AND SIMILAR TYPES OF FLOORING, USING A TREATED MOP.  THIS INCLUDES REMOVAL OF GUM AND OTHER SIMILAR SUBSTANCES USING A SCRAPING DEVICE.

 

3.                                      VACUUM ALL CARPETED AREAS.

 

4.                                      DUST MOP ALL PRIVATE AND PUBLIC STAIRWAYS AND VACUUM IF CARPETED.

 

5.                                      HAND DUST AND WIPE CLEAN ALL HORIZONTAL SURFACES INCLUDING FURNITURE, FILE CABINETS, FIXTURES, AND WINDOW SILLS, USING A CHEMICALLY TREATED DUST CLOTH.  PAPERS ON DESK SHALL REMAIN UNDISTURBED.

 

6.                                      DUST AND SANITIZE ALL TELEPHONES USING A DISINFECTANT SOLUTION.

 

7.                                      REMOVE FINGER MARKS FROM ALL PAINTED SURFACES NEAR LIGHT SWITCHES, ENTRANCE DOORS, ETC.

 

8.                                      REMOVE ALL GUM AND FOREIGN MATTER ON SIGHT.

 

9.                                      EMPTY AND CLEAN ALL WASTE RECEPTACLES AND REMOVE WASTE PAPER AND WASTE MATERIALS TO A DESIGNATED AREA.  REPLACE LINERS IN EACH RECEPTACLE.

 

Exhibit D-1

 

10.                               DAMP DUST INTERIORS OF ALL WASTE DISPOSAL RECEPTACLES AND WASH AS NECESSARY.

 

11.                               CLEAN AND SANITIZE USING A DISINFECTANT SOLUTION, ALL WATER FOUNTAINS AND WATER COOLERS.  SINKS/FLOORS ADJACENT TO SINKS/FOUNTAINS TO BE WASHED NIGHTLY.

 

12.                               SPOT MOP FLOORS FOR SPILLAGES, ETC.

 

13.                               EMPTY AND DAMP CLEAN ALL ASH TRAYS AND SCREEN ALL SAND URNS.

 

14.                               REMOVE FINGER MARKS AND DUST DOORS OF ELEVATOR HATCHWAYS.

 

15.                               CLEAN ALL LOW LEDGES, SHELVES, BOOKCASES, CHAIR RAILS, TRIM, PICTURES, CHARTS, ETC., WITHIN REACH.

 

16.                               CLEAN SINKS, TOILETS, AND RELATED PLUMBING FIXTURES.

 

17.                               CLEAN MIRRORS, METALWORK, AND GLASS TABLE TOPS.

 

18.                               UPON COMPLETION OF WORK, ALL SLOP SINKS ARE TO BE THOROUGHLY CLEANED AND ALL CLEANING EQUIPMENT AND SUPPLIES STORED NEATLY IN LOCATIONS DESIGNATED BY THE OFFICE OF THE BUILDING.

 

19.                               ALL CLEANING OPERATIONS SHALL BE SCHEDULED SO THAT A MINIMUM OF LIGHTS ARE TO BE LEFT ON AT ANY TIME.  UPON COMPLETION OF CLEANING ALL LIGHTS ARE TO BE TURNED OFF.  ALL ENTRANCE DOORS ARE TO BE KEPT LOCKED DURING THE CLEANING OPERATION.

 

B.                                    WEEKLY

 

1.                                      HAND DUST ALL DOOR LOUVERS AND OTHER VENTILATING LOUVERS WITHIN REACH.

 

2.                                      DUST ALL BASEBOARDS.

 

3.                                      MOVE AND VACUUM UNDERNEATH ALL FURNITURE THAT CAN BE MOVED.

 

4.                                      IN HIGH TRAFFIC AREAS, DAMP MOP IF NECESSARY AND APPLY SPRAY BUFFING SOLUTION IN A FINE MIST AND BUFF WITH A SYNTHETIC PAD.

 

5.                                      BUFF TRAFFIC AREAS AND PIVOT POINTS.

 

Exhibit D-2

 

6.                                      DAMP MOP ALL NON-CARPETED AND PUBLIC STAIRWAYS.

 

7.                                      WIPE CLEAN ALL BRIGHT WORK.

 

8.                                      CLEAN INTERIOR GLASS PARTITIONS AND DOORS.

 

9.                                      DUST ALL CHAIR RAILS.

 

C.                                    QUARTERLY

 

1.                                      VACUUM UPHOLSTERED FURNITURE.

 

2.                                      MACHINE SCRUB FLOORING.

 

3.                                      WASH AND APPLY ONE COAT OF APPROVED FLOOR FINISH TO COMPOSITION FLOORING.

 

4.                                      DUST ALL VERTICAL SURFACES SUCH AS WALLS, FURNITURE, PARTITIONS, AND SURFACES NOT REACHED IN NIGHTLY CLEANING.

 

5.                                      DUST EXTERIOR OF LIGHTING FIXTURES.

 

6.                                      WASH ALL BASEBOARDS.

 

7.                                      STRIP ALL RESILIENT FLOORING USING DILUTED STRIPPING SOLUTION.  MACHINE SCRUB FLOOR USING PAD TO REMOVE ALL FLOOR FINISH. THOROUGHLY RINSE WITH CLEAR WATER AND APPLY TWO COATS OF FLOOR FINISH.

 

II.                                   LAVATORIES

 

A.                                    NIGHTLY- MONDAY THROUGH FRIDAY

 

1.                                      POLICE LAVATORIES DURING THE DAY WITH MATRON OR PORTER TO PICK UP WASTE AND REPLENISH MATERIALS.

 

2.                                      CLEAN, SANITIZE (USING DISINFECTANT SOLUTION), AND POLISH ALL VITREOUS FIXTURES INCLUDING TOILET BOWLS, URINALS, AND WASH BASINS.

 

3.                                      SWEEP AND WASH FLOORING WITH APPROVED GERMICIDAL SOLUTION.

 

4.                                      WASH AND POLISH MIRRORS, POWDER SHELVES, DISPENSERS, HAND DRYERS, BRIGHTWORK, INCLUDING FLUSHOMETERS, PIPING, AND TOILET SEAT HINGES.

 

5.                                      CLEAN AND SANITIZE BOTH SIDES OF TOILET SEATS.

 

Exhibit D-3

 

6.                                      EMPTY ALL CONTAINERS AND DISPOSAL UNITS AND INSERT NEW LINERS WHERE REQUIRED.

 

7.                                      WASH AND SANITIZE (USING A DISINFECTANT SOLUTION) EXTERIOR OF ALL CONTAINERS.

 

8.                                      EMPTY, CLEAN, AND SANITIZE ALL SANITARY NAPKIN DISPOSAL UNITS.

 

9                                         DUST AND SPOT WASH, WHERE NECESSARY, PARTITIONS, TILE WALLS, DISPENSERS, CEILINGS, LIGHTS, SWITCHES AND RECEPTACLES.

 

10.                               REFILL ALL DISPENSERS TO NORMAL LIMITS INCLUDING NAPKINS, SOAP, TISSUE, TOWELS, ETC.

 

11.                               VACUUM ENTIRE CARPETED AREAS, IF ANY.

 

12.                               REMOVE ALL RUBBISH.

 

B.                                    WEEKLY

 

1.                                      WET MOP ALL TILE FLOORS AND WASH BASEBOARDS.

 

2.                                      MACHINE SCRUB FLOORS, HAND BRUSH CORNERS, AND HAND BRUSH TOILET EDGES WITH APPROVED GERMICIDAL DETERGENT SOLUTION.

 

C.                                    MONTHLY

 

1.                                      WASH ALL PARTITIONS, TILE WALLS, AND ENAMEL SURFACES WITH APPROVED GERMICIDAL DETERGENT SOLUTION.

 

D.                                    QUARTERLY

 

1.                                      DUST ALL HVAC GRILLS AND LOUVERS.

 

E.                                     OTHER

 

1.                                      CLEANING OF COMPUTER ROOMS AND KITCHENS WILL BE THE RESPONSIBILITY OF INDIVIDUAL TENANTS.

 

III.                              PUBLIC CORRIDORS, STAIRWELLS, AND SERVICE AREAS:

 

A.                                    NIGHTLY

 

1.                                      VACUUM AND SPOT CLEAN CARPETING.

 

2.                                      SWEEP AND DAMP MOP PUBLIC AREA CONCRETE FLOORS.

 

Exhibit D-4

 

3.                                      SWEEP AND DAMP MOP PUBLIC STAIRWELLS AND LANDINGS.

 

4.                                      CLEAN BASEBOARDS OF SCUFFS AND MARKS.

 

5.                                      EMPTY AND CLEAN ASHTRAYS AND SAND URNS.

 

6.                                      CLEAN ALL DIRECTORIES AND LOBBY SECURITY CONSOLE.

 

7.                                      CLEAN CORRIDOR GLASS AND METAL WORK.

 

8.                                      SPOT CLEAN WALLS, CEILINGS, LIGHTS, ETC.

 

9.                                      REMOVE TRASH TO COMPACTOR.

 

10.                               CLEAN TELEPHONES, TELEPHONE BOOTH AREAS AND MAIL DROPS.

 

11.                               KEEP SLOP SINKS, CLOSETS, SUPPLY ROOMS, AND OTHER JANITORIAL AREAS IN A CLEAN CONDITION.

 

12.                               KEEP ELECTRICAL AND TELEPHONE CLOSETS CLEAN AND FREE OF STORAGE.

 

13                                  CLEAN AND SANITIZE ALL PUBLIC DRINKING FOUNTAINS.

 

14.                               SWEEP AND WASH ALL FLOORS IN PUBLIC LOBBY.

 

15.                               CLEAN AND VACUUM CARPETING IN PASSENGER ELEVATOR CABS AND SPOT CLEAN AS NECESSARY.

 

16.                               DUST AND WIPE CLEAN WALLS, DOORS AND METAL WORK ON ALL PASSENGER ELEVATORS.

 

17.                               CLEAN FLOORS AND WALLS OF SERVICE ELEVATORS.

 

18.                               CLEAN AND REMOVE ANY DEBRIS FROM CEILING FIXTURES IN PASSENGER ELEVATORS.

 

19.                               WASH ALL LOBBY WALK OFF MATS.

 

B.                                    WEEKLY

 

1.                                      CLEAN ALL DOOR VENTS.

 

2.                                      DUST ALL VERTICAL SURFACES WITHIN REACH.

 

C.                                    MONTHLY

 

1.                                      DRY SHAMPOO ALL LOBBY CARPETING.

 

Exhibit D-5

 

D.                                    QUARTERLY

 

1.                                      STEAM CLEAN ALL LOBBY CARPETING.

 

2.                                      VACUUM ALL CEILING GRILLS AND AIR LOUVERS.

 

IV.                               WINDOW CLEANING

 

A.            WINDOWS WILL BE CLEANED AS NECESSARY, BUT NOT LESS THAN THE FOLLOWING FREQUENCIES:

 

EXTERIOR OF EXTERIOR GLASS - NOT LESS THAN 5 TIMES/YEAR.

 

INTERIOR OF EXTERIOR GLASS - NOT LESS THAN 2 TIMES/YEAR.

 

EXTERIOR OF INTERIOR GLASS - NOT LESS THAN 1 TIMES/YEAR.

 

INTERIOR OF INTERIOR GLASS - NOT LESS THAN 2 TIMES/YEAR.

 

Exhibit D-6

 

EXHIBIT E

 

OFFICE LEASE

 

FOR

 

WAYFAIR LLC

 

COPLEY PLACE

 

BOSTON, MASSACHUSETTS

 

MEASUREMENT STANDARDS

 

I.             Measurement Standards- Single Tenancy Floors.  Three steps, in sequence, are to be followed to determine the Total Rentable Area:  (i) compute gross area, (ii) deduct certain areas, and (iii) add applicable share of areas to be apportioned (see paragraph C below).

 

A.                                    Gross Area:  The gross area of a floor shall be the entire area within the exterior walls.  If the exterior wall consists in whole or part of windows, fixed clear glass or other transparent material, the measurement along the entire such wall shall be taken to a line established by the vertical plan of the inside of the glass or other transparent material.  If it consists solely of a nontransparent material, the measurement shall be taken to the inside surface of the outer building wall.  If a floor has no exterior wall within the property line, measurements shall be taken to the property line.  If a floor has no full-height enclosure wall, measurement shall be taken to the edge of the floor slab.

 

B.                                    Deductions from Gross Area:  The following non-rentable building areas with one-half of their enclosing walls are to be deducted.

 

1.                                      Public elevator shafts and associated elevator machine rooms.

 

2.                                      Required egress stairways.

 

3.                                      Areas within the gross area which are to be apportioned pursuant to paragraph (C) below.

 

C.                                    Areas to be apportioned (“Attributable Area”):

 

1.                                      Common facilities including, without limitation, all heating, ventilating, air conditioning, mechanical, electrical, cooling tower, telephone and other service floors, rooms or areas, containing equipment or supplies (exclusive of any tenant special air conditioning or mechanical area or facilities) and all public lobbies (including monumental stair and/or escalator), loading and other common service areas, throughout and within the Building including one-half of their enclosing walls, are to be apportioned.

 

Exhibit E-1

 

2.                                      Whenever the height of any room or space used for a heating, ventilating, air conditioning, mechanical, or electrical facility above the ground floor shall exceed the average story height in the Building by more than 25 percent, then the floor area of such room or space shall be determined by multiplying the actual floor area by the percentage that the height of the room or space exceeds the average story height, and adding the area so determined to the actual floor area of such room or space; however, if any such rooms or spaces penetrate the next higher floor, then the entire area of such room or space on both floors shall be apportioned under this paragraph (C).

 

II.            Measurement Standards - Multiple Occupancy Floors.  The sum of the Total Rentable Area for two or more tenants on a floor shall be the Total Rentable Area for that floor as computed in the manner for single tenancy floors.  Three steps are to be followed to determine the Total Rentable Area for each tenant on a multiple occupancy floor:  (i) compute the Net Rentable Area for such floor pursuant to (a) below, (ii) compute the Net Rentable Area for each tenant pursuant to (b) below, and (iii) multiply the Total Rentable Area of such floor by a fraction whose numerator is the Net Rentable Area for such tenant and whose denominator is the Net Rentable Area for such floor.

 

A.                                    Net Rentable Area for Any Floor:  The Net Rentable Area shall be the gross area as described for single tenancy floors less the entire core area (measured to the finished enclosing walls thereof, but excluding any part of the core rented to a tenant) and corridors (measured to the corridor side of the finished enclosing walls of the corridor).

 

B.                                    Net Rentable Area for Each Tenant:  Exterior walls are to be measured as described in the procedure for gross area. Demising walls between tenants are to be equally divided. Corridor walls to the finished corridor side are to be included in the Net Rentable Area of each tenant.

 

III.          Rentable Calculation.  Rentable Area is determined by measuring gross area less deductions (assuming all full floor occupants) and multiplying by 1.165.

 

Exhibit E-2

 

EXHIBIT F

 

OFFICE LEASE

 

FOR

 

WAYFAIR LLC

 

COPLEY PLACE

 

BOSTON, MASSACHUSETTS

 

LETTER OF CREDIT FORM

 

[Name of Financial Institution]

 

	
 
    	
Irrevocable   Standby
    
	
 
    	
Letter   of Credit
    
	
 
    	
No.                                 
    
	
 
    	
Issuance   Date:                                 
    
	
 
    	
Expiration   Date:                                 
    
	
 
    	
Applicant:                                 
    

 

Beneficiary

 

Copley Place Associates, LLC 
  Simon Property Group, L.P. 
 Attention:  Property Manager 
 Two Copley Place, Suite 100
 Boston, MA  02116-6502

 

Ladies/Gentlemen:

 

We hereby establish our Irrevocable Standby Letter of Credit in your favor for the account of the above referenced Applicant in the amount of                      U.S. Dollars($                    ) available for payment at sight by your draft drawn on us when accompanied by the following documents:

 

1.                                      The original of this Irrevocable Standby Letter of Credit.

 

2.                                      Beneficiary’s dated statement purportedly signed by an authorized signatory reading:

“This draw in the amount of                      U.S. Dollars($                    ) under your Irrevocable Standby Letter of Credit No.                      represents funds due and owing to us pursuant to the terms of that certain lease by and between                                         , as landlord, and                                         , as tenant, and/or any amendment to the lease or any other agreement between such parties related to the lease.”

 

Exhibit F-1

 

IT IS A CONDITION OF THIS LETTER OF CREDIT THAT IT IS DEEMED TO BE AUTOMATICALLY EXTENDED WITHOUT AMENDMENT FOR PERIOD(S) OF ONE YEAR EACH FROM THE CURRENT EXPIRY DATE HEREOF, OR ANY FUTURE EXPIRATION DATE, UNLESS AT LEAST SIXTY (60) DAYS PRIOR TO ANY EXPIRATION DATE, WE NOTIFY YOU BY REGISTERED MAIL OR OVERNIGHT COURIER AT THE ABOVE LISTED ADDRESS THAT WE ELECT NOT TO CONSIDER THIS LETTER OF CREDIT EXTENDED FOR ANY SUCH ADDITIONAL PERIOD.

 

ANY SUCH NOTICE SHALL BE EFFECTIVE WHEN SENT BY US AND UPON SUCH NOTICE TO YOU, YOU MAY DRAW AT ANY TIME PRIOR TO THE THEN CURRENT EXPIRATION DATE, UP TO THE FULL AMOUNT THEN AVAILABLE HEREUNDER, AGAINST YOUR DRAFT(S) DRAWN ON US AT SIGHT AND THE ORIGINAL OF THIS LETTER OF CREDIT AND ALL AMENDMENTS THERETO, ACCOMPANIED BY YOUR STATEMENT, SIGNED BY AN AUTHORIZED OFFICER ON YOUR LETTERHEAD STATING THAT YOU ARE IN RECEIPT OF BANK OF AMERICA, N.A.’S NOTICE OF NON-EXTENSION UNDER LETTER OF CREDIT NO.                      AND THE APPLICANT’S OBLIGATION TO YOU REMAINS.

 

THIS LETTER OF CREDIT IS TRANSFERABLE IN FULL AND NOT IN PART.  ANY TRANSFER MADE HEREUNDER MUST CONFORM STRICTLY TO THE TERMS HEREOF AND TO THE CONDITIONS OF RULE 6 OF THE INTERNATIONAL STANDBY PRACTICES (ISP98) FIXED BY THE INTERNATIONAL CHAMBER OF COMMERCE, PUBLICATION NO. 590.  SHOULD YOU WISH TO EFFECT A TRANSFER UNDER THIS CREDIT, SUCH TRANSFER WILL BE SUBJECT TO THE RETURN TO US OF THE ORIGINAL CREDIT INSTRUMENT, ACCOMPANIED BY OUR FORM OF TRANSFER, PROPERLY COMPLETED AND SIGNED BY AN AUTHORIZED SIGNATORY OF YOUR FIRM, BEARING YOUR BANKERS STAMP AND SIGNATURE AUTHENTICATION. ANY TRANSFER FEE SHALL BE FOR THE ACCOUNT OF THE APPLICANT AND FAILURE TO PAY BY THE APPLICANT WILL NOT AFFECT THE TRANSFERABILITY BY THE BENEFICIARY. SUCH TRANSFER FORM IS AVAILABLE UPON REQUEST.

 

DRAFT(S) MUST STATE: “DRAWN UNDER BANK OF AMERICA, N.A. STANDBY L/C NO.                      DATED                                         .”

 

DRAFTS AND DOCUMENTS MUST BE PRESENTED AT OUR OFFICE ADDRESSED: BANK OF AMERICA, N.A., l FLEET WAY, SCRANTON, PA 18507-1999, ATTN: GTO- STANDBY DEPT.

 

This Irrevocable Standby Letter of Credit is subject to the International Standby Practices (ISP98) ICC Publication No. 590.

 

We hereby engage with you to honor drafts and documents drawn under and in compliance with the terms of this Irrevocable Standby Letter of Credit.

 

All communications to us with respect to this Irrevocable Standby Letter of Credit must be addressed to our office located at                                                              to the attention of                                        .

 

	
Very   truly yours,
    	
 
    

 

Exhibit F-2

 

SCHEDULE 8.01

 

OFFICE LEASE

 

FOR

 

WAYFAIR LLC

 

COPLEY PLACE

 

BOSTON, MASSACHUSETTS

 

TENANT’S HVAC REQUIREMENTS

 

OUTDOOR DESIGN CONDITIONS (ASHRAE 1%)

 

	
A.
    	
 
    	
Summer:
    	
 
    	
91   F dry bulb
   73 F wet bulb
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
B.
    	
 
    	
Winter:
    	
 
    	
9F
    

 

INDOOR DESIGN CONDITIONS

 

	
A.
    	
 
    	
Summer:
    	
 
    	
74   F dry bulb
   50% RH
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
B.
    	
 
    	
Winter:
    	
 
    	
72   F dry bulb
   20% RH
    

 

VENTILATION

 

	
Minimum Outside Air:
    	
 
    	
In   accordance with the Massachusetts Building Code, 7th Edition
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
7   people per 1000sf for office / @ 20cfm per person
   50 people per 1000sf for conference room / @20cfm per person
    

 

INTERNAL HEAT GAIN

 

	
Occupants:
    	
 
    	
150sf/person   reusable sf
    
	
Lighting:
    	
 
    	
2.0   watts/reusable sf
    
	
Power:
    	
 
    	
3.5   watts/reusable sf
    

 

Schedule 8.01-1Exhibit 10.10

 

AGREEMENT OF LEASE

 

between

 

DISTRIBUTION I PATENT TENANT LLC, 
 a Delaware limited liability company, Landlord

 

and

 

WAYFAIR LLC,
 a Delaware limited liability company, Tenant

 

Premises:                                             The entire Building

 

Building:                                               Building J at Park West International known as
                                                                                                  1405 Worldwide Boulevard Hebron, Kentucky

 

Date:                                                                  As of December 31, 2013

 

 

TABLE OF CONTENTS

 

	
Article 1 BASIC DATA AND DEFINITIONS
    	
1
    
	
 
    	
 
    
	
Article 2 DEMISE
    	
3
    
	
 
    	
 
    
	
Article 3 TERM; DELIVERY
    	
3
    
	
 
    	
 
    
	
Article 4 RENTAL
    	
6
    
	
 
    	
 
    
	
Article 5 CONDITION OF PREMISES
    	
7
    
	
 
    	
 
    
	
Article 6 USE AND OPERATION OF THE PREMISES
    	
9
    
	
 
    	
 
    
	
Article 7 COMMON AREA
    	
11
    
	
 
    	
 
    
	
Article 8 OPERATING EXPENSES AND TAX ESCALATION
    	
11
    
	
 
    	
 
    
	
Article 9 UTILITIES
    	
14
    
	
 
    	
 
    
	
Article 10 PARKING
    	
15
    
	
 
    	
 
    
	
Article 11 MAINTENANCE AND REPAIRS
    	
15
    
	
 
    	
 
    
	
Article 12 TENANT’S CHANGES
    	
16
    
	
 
    	
 
    
	
Article 13 signs
    	
20
    
	
 
    	
 
    
	
Article 14 INSURANCE AND INDEMNITY
    	
20
    
	
 
    	
 
    
	
Article 15 CASUALTY
    	
24
    
	
 
    	
 
    
	
Article 16 EMINENT DOMAIN
    	
25
    
	
 
    	
 
    
	
Article 17 ASSIGNMENT AND SUBLETTING
    	
26
    
	
 
    	
 
    
	
Article 18 EVENTS OF DEFAULT
    	
30
    
	
 
    	
 
    
	
Article 19 REMEDIES
    	
32
    
	
 
    	
 
    
	
Article 20 WAIVER
    	
34
    
	
 
    	
 
    
	
Article 21 INDEMNIFICATION
    	
35
    
	
 
    	
 
    
	
Article 22 ESTOPPEL & ATTORNMENT AND   SUBORDINATION
    	
35
    
	
 
    	
 
    
	
Article 23 CURING TENANT’S DEFAULTS
    	
37
    
	
 
    	
 
    
	
Article 24 ACCESS
    	
38
    

 

 

	
Article 25 TENANT’S PROPERTY
    	
38
    
	
 
    	
 
    
	
Article 26 HOLDING OVER
    	
38
    
	
 
    	
 
    
	
Article 27 SECURITY DEPOSIT
    	
39
    
	
 
    	
 
    
	
Article 28 LANDLORD’S LIABILITY
    	
40
    
	
 
    	
 
    
	
Article 29 BROKER
    	
41
    
	
 
    	
 
    
	
Article 30 NOTICES
    	
41
    
	
 
    	
 
    
	
Article 31 MISCELLANEOUS
    	
41
    
	
 
    	
 
    
	
Article 32 CONTINGENCY
    	
45
    

 

EXHIBITS

 

Exhibit A — Site Plan
  Exhibit B — Insurance Schedule 
  Exhibit C — Form Letter of Credit 
  Exhibit D — Rules and Regulations

 

 

THIS LEASE (this “Lease”) is made and dated as of the 31st day of December, 2013 by and between DISTRIBUTION I PATENT TENANT LLC, a Delaware limited liability company, having an address c/o Interventure Advisors LP, 810 Seventh Avenue, Suite 3601, New York, New York 10019 (“Landlord”) and WAYFAIR LLC, a Delaware limited liability company, having an office at                                                                      (“Tenant”).

 

W I T N E S S E T H:

 

ARTICLE 1
 BASIC DATA AND DEFINITIONS

 

Section 1.01                            Basic Data and Definitions.  The following sets forth basic data and, where appropriate, constitutes definitions of the terms hereinafter listed.

 

(a)                                 “Building”  The building, fixtures, equipment and other improvements and appurtenances now or hereafter located or erected known as Building J at Park West International having a street address of 1405 Worldwide Boulevard, Hebron, Kentucky.

 

(b)                                 “Property”  The Building and the land appurtenant thereto or upon which the Building is situated identified on the site plan attached hereto and made a part hereof as Exhibit A.

 

(c)                                  “Permitted Use”  Tenant shall use the Premises solely for the purpose of general office and warehouse sales use in connection with the operation of its business and otherwise subject to the express terms and conditions contained herein, and for no other use or purpose whatsoever. (Article 6).

 

(d)                                 “Premises”  The entire Building shown on Exhibit A attached hereto and made a part hereof deemed to contain approximately 525,000 rentable square feet.

 

(e)                                  “Commencement Date”  January 1, 2014.

 

(f)                                   “Lease Year”  As defined in Section 3.01(a) herein.

 

(g)                                  “Expiration Date”  March 31, 2019

 

(h)                                 “Base Rent”  Shall be defined and paid as follows:

 

	
Term/Months
    	
 
    	
Base Rental per
   Rentable Square
   Foot
    	
 
    	
Monthly Base
   Rental
    	
 
    	
Annual Base Rent
    	
 
    
	
January 1, 2014 —   December 31, 2014
    	
 
    	
$
    	
2.80
    	
 
    	
$
    	
122,500.00
    	
 
    	
$
    	
1,470,000.00
    	
(1)
    
	
January 1, 2015 —   December 31, 2015
    	
 
    	
$
    	
2.90
    	
 
    	
$
    	
126,875.00
    	
 
    	
$
    	
1,522,500.00
    	
 
    
	
January 1, 2016 —   December 31, 2016
    	
 
    	
$
    	
3.00
    	
 
    	
$
    	
131,250.00
    	
 
    	
$
    	
1,575,000.00
    	
 
    
	
January 1, 2017 —   December 31, 2017
    	
 
    	
$
    	
3.10
    	
 
    	
$
    	
135,625.00
    	
 
    	
$
    	
1,627,500.00
    	
 
    
	
January 1, 2018 —   December 31, 2018
    	
 
    	
$
    	
3.20
    	
 
    	
$
    	
140,000.00
    	
 
    	
$
    	
1,680,000.00
    	
 
    
	
January 1, 2019 —   March 31, 2019
    	
 
    	
$
    	
3.30
    	
(2)
    	
$
    	
144,375.00
    	
 
    	
 
    	
 
    

 

(1)  The annual Base Rent for this period is subject to abatement pursuant to the express tens of Section 4.04 hereof.

(2)  The annual Base Rent for this period is payable for less than a full calendar year.

 

 

	
(i)
    	
“Security Deposit” $122,500.00 (Article 27)
    
	
 
    	
 
    	
 
    
	
(j)
    	
“Term” The period commencing on   the Commencement Date and ending on the Expiration Date, as more particularly   described in Section 3.01 of this Lease.
    
	
 
    	
 
    	
 
    
	
(k)
    	
“Broker” Collectively, Cassidy Turley and Richards Barry Joyce Partners. (Article 29)
    
	
 
    	
 
    
	
(l)
    	
“Landlord’s Notice Address”
    	
Distribution I Patent Tenant LLC
    
	
 
    	
 
    	
c/o Interventure Advisors LP
    
	
 
    	
 
    	
810 Seventh Avenue, Suite 3601
    
	
 
    	
 
    	
New York, New York 10019
    
	
 
    	
 
    	
Attention: Ms. Teresa Tsai (Article 30)
    
	
 
    	
 
    	
 
    
	
(m)
    	
“Landlord’s Rent Payment Address”
    
	
 
    	
 
    
	
 
	
(i)
    	
Via   ACH or Wire Transfer:
    
	
 
	
 
    	
 
    	
 
    
	
 
	
 
    	
Bank Name:
    	
Branch Banking & Trust
    
	
 
	
 
    	
ABA Number:
    	
054001547
    
	
 
	
 
    	
Attention:
    	
Grace Wiley
    
	
 
	
 
    	
Fax Number:
    	
(202) 835-9258
    
	
 
	
 
    	
Account Name:
    	
Distribution I Patent Owner (Collection)
    
	
 
	
 
    	
Account Number:
    	
5162-738-609
    
	
 
	
 
    	
 
    	
 
    
	
 
	
(ii)
    	
Payment   by mail:
    	
 
    
	
 
	
 
    	
 
    
	
 
	
 
    	
Distribution I Patent Tenant LLC
    
	
 
	
 
    	
c/o Colliers International
    
	
 
	
 
    	
4135 South Stream Boulevard, Suite 550
    
	
 
	
 
    	
Charlotte, North Carolina 28217
    
	
 
	
 
    	
Attention: Christopher O. Perry
    
	
 
	
 
    	
Phone: (704) 910-8448
    
					

 

(n)                                 “Tenant’s Notice Address”  Wayfair LLC

at the Premises (Article 30)

 

(o)                                 “Tenant’s Share”  100% (Section 8.13)

 

(p)                                 “Landlord’s Contribution”  Up to a maximum of $393,750.00, as more particularly set forth in Article 5 of this Lease.

 

(q)                                 “Renewal Option”  Two (2) options of five (5) years each pursuant to Section 3.03 herein.

 

2

 

ARTICLE 2
 DEMISE

 

Landlord hereby demises and leases to Tenant, and Tenant leases, rents, and agrees to accept from Landlord, the Premises, upon the terms and conditions set forth in this Lease.  Notwithstanding anything to the contrary contained in this Lease, all parts (except surfaces facing the interior of the Premises) of all walls, windows and doors bounding the Premises (including exterior Building walls, core corridor walls, doors and entrances), all balconies, terraces and roofs adjacent to the Premises, all space in or adjacent to the Premises used for shafts, stacks, stairways, chutes, pipes, conduits, ducts, fan rooms, heating, air conditioning, ventilating, plumbing, electrical, telecommunication and other mechanical facilities, closets, service closets and other facilities serving the Building or the Property, and the use thereof, as well as access thereto through the Premises for the purposes of operation, maintenance, alteration and repair, are hereby reserved to Landlord.

 

ARTICLE 3
 TERM; DELIVERY

 

Section 3.01                            Term; Lease Year.  The Term shall commence on the Commencement Date and, unless sooner terminated or extended as provided in this Lease, shall terminate on the Expiration Date.  The term “Lease Year” as used in this Lease shall mean the period of twelve (12) full calendar months commencing on the Commencement Date and each twelve (12) month period thereafter.

 

Section 3.02                            Early Entry by Tenant for Tenant’s Work.  Except as hereinafter expressly provided, neither Tenant nor its agents, employees, invitees or independent contractors shall enter the Premises prior to the Commencement Date.  Notwithstanding the foregoing sentence, upon the granting of consent by Landlord, which shall not be unreasonably withheld, Tenant or its agents may enter the Premises prior to the Commencement Date to perform Tenant’s Work however, such entry shall be deemed under all the terms, covenants and conditions of this Lease including, without limitation, the obligation to pay for utilities and services such as electricity and life and safety and to provide evidence of insurance required under this Lease, but excluding the covenant to pay Base Rent and Tenant’s Share of Operating Expenses and Tenant’s Share of Taxes.  In the event Tenant or Tenant’s contractor shall enter upon the Premises or any other part of the Property, as may be above permitted by Landlord, Tenant agrees to indemnify and save Landlord harmless from and against any and all Liabilities arising from or claimed to arise from (i) any act, neglect or failure to act of Tenant or anyone entering the Premises or the Property with Tenant’s permission, (ii) the performance of Tenant’s Work, and/or (iii) any other reason whatsoever arising out of said entry upon the Premises or the Property.

 

Section 3.03                            Renewal Option.

 

(a)                                 Tenant shall have the right to extend the Term of this Lease for two (2) successive periods of five (5) years each (the “First Renewal Term” and the “Second Renewal Term”, respectively, and each is sometimes referred to herein as a “Renewal Term”), provided that Tenant shall notify Landlord, in writing, at least twelve (12) months but not more than fifteen

 

3

 

(15) months prior to the expiration of the original Term or the expiration of the First Renewal Term, as applicable, of Tenant’s intention to exercise such option, and provided further that, both at the time of notice of such renewal and on the commencement date of the applicable Renewal Term, (i) Tenant is not in default hereunder beyond any applicable notice or cure periods, (ii) Tenant has not been in monetary default or material non-monetary default hereunder beyond any applicable notice or cure periods in the preceding twelve (12) month period, and (iii) Tenant and/or its permitted Successors and Related Entities (both as hereinafter defined) are in occupancy of the Premises, are open and conducting business in the Premises and have not otherwise subleased the Premises or any part thereof or assigned this Lease.  Time is of the essence with respect to the giving of any such notice.  The First Renewal Term shall commence on the day immediately following the Expiration Date and shall expire on the fifth (5th) anniversary thereof unless the First Renewal Term shall sooner end pursuant to any of the terms, covenants or conditions of this Lease or pursuant to law.  The Second Renewal Term, if applicable, shall commence on the day immediately following the expiration of the First Renewal Term and shall expire on the fifth (5th) anniversary thereof.  The terms and conditions of each Renewal Term shall be the same as the terms and conditions of this Lease, except that: (x) Tenant shall have no further right of renewal after the expiration of the Second Renewal Term or if Tenant shall fail to exercise any option to extend for any Renewal Term strictly in accordance with the terms of this Section; and (y) the Base Rent payable during each Renewal Term shall be the Prevailing Market Rate for the Premises as determined below.

 

(b)                                 Landlord shall provide Tenant with a written proposal setting forth its determination of the Prevailing Market Rate for the Premises for the applicable Renewal Term within thirty (30) days of receipt of Tenant’s respective notice to extend.  Tenant shall have ten (10) days from its receipt of Landlord’s proposal to either accept such proposal or to reject such proposal, in which case, the Prevailing Market Rate shall be determined pursuant to the express terms of Section 3.03(c) below.  The “Prevailing Market Rate” shall mean the then prevailing market rate for new leases and lease renewals and extensions in the Building and in similar buildings in the vicinity of the Building comparable to this Lease and the Premises, which shall be determined by Landlord or the applicable broker(s) pursuant to Section 3.03(c) below, as applicable, based on all factors Landlord or such broker(s), as applicable, deems relevant in its sole but reasonable discretion.

 

(c)                                  If Tenant rejects Landlord’s determination of the Prevailing Market Rent for the applicable Renewal Term, Landlord and Tenant shall use their good faith efforts to agree upon the Prevailing Market Rent of the Premises for the applicable Renewal Term.  In the event Landlord and Tenant cannot reach agreement within fifteen (15) days after the date of Tenant’s notice rejecting Landlord’s determination of the Prevailing Market Rent, Landlord and Tenant shall each select a reputable qualified, licensed real estate broker, who has at least ten (10) years experience in Hebron, Kentucky and who is familiar with the rentals then being charged in the Building and in comparable buildings in Hebron, Kentucky (respectively, “Landlord’s Renewal Broker” and “Tenant’s Renewal Broker”) who shall confer promptly after their selection by Landlord and Tenant and shall use all commercially reasonable efforts to agree upon the Prevailing Market Rent of the Premises for the applicable Renewal Term; it being agreed that any decision of the arbitrators pursuant to this Section 3.03 shall be binding on the parties hereto.  If Landlord’s Renewal Broker and Tenant’s Renewal Broker cannot reach agreement within fifteen (15) days after the date such brokers have been selected, then, within ten (10) days

 

4

 

thereafter, they shall designate a third reputable, licensed real estate broker, who has at least ten (10) years experience in Hebron, Kentucky and who is familiar with the rentals then being charged in the Building and in comparable buildings in Hebron, Kentucky (the “Independent Broker”).  Upon the failure of Landlord’s Renewal Broker and Tenant’s Renewal Broker to agree upon the designation of the Independent Broker, then the Independent Broker shall be appointed by any court having jurisdiction.  Concurrently with such appointment, Landlord’s Broker and Tenant’s Broker shall each submit a letter to the Independent Broker, with a copy to Landlord and Tenant, setting forth such broker’s estimate of the Prevailing Market Rent of the Premises during the applicable Renewal Term (respectively, “Landlord’s Broker’s Letter” and “Tenant’s Broker’s Letter”).  The Independent Broker shall conduct such investigations and hearings as he/she may deem appropriate and shall, within fifteen (15) days after the date of his/her designation, choose either the rental set forth in Landlord’s Broker’s Letter or Tenant’s Broker’s Letter to be the Base Rent for the Premises during the applicable Renewal Term, and such choice shall be binding upon Landlord and Tenant.  Landlord and Tenant shall each pay the fees and expenses of its respective broker.  The fees and expenses of the Independent Broker shall be shared equally by Landlord and Tenant.

 

(d)                                 In the event the applicable Renewal Term shall commence prior to a determination of the Base Rent during the applicable Renewal Term having been made in accordance with this Article, then the Base Rent to be paid by Tenant to Landlord until such determination has been made shall be the greater of (i) the fair market rental value as set forth in Landlord’s Broker’s Letter plus all sums payable pursuant to Article 8 of this Lease, or as otherwise provided herein, as Additional Rent, or (ii) the annual Base Rent for the twelve (12) month period immediately preceding the commencement of the applicable Renewal Term, including all escalations or Additional Rent payable pursuant to Article 8 hereof or as otherwise provided herein.  After such determination has been made for the Base Rent for the applicable Renewal Term, any excess rental for the applicable Renewal Term theretofore paid by Tenant to Landlord shall be credited by Landlord against the next ensuing monthly Rent payable by Tenant to Landlord and any deficiency in Rent due from Tenant to Landlord during the Renewal Term shall be immediately paid.

 

(e)                                  The parties hereto agree to enter into amendment(s) of this Lease confirming the exercise of Tenant’s option to extend the term of this Lease and the amount of the Base Rent payable during the Renewal Term(s), as applicable within thirty (30) days of request of the other; provided, however, if Landlord and Tenant fail to execute and deliver any such amendment within thirty (30) days of Landlord’s request, the Term shall be deemed extended at the Base Rent determined pursuant to the provisions of this Section 3.03.

 

(f)                                   Tenant’s rights and privileges described in this Section 3.03 are personal to the specific party originally identified as the “Tenant” under this Lease and assignees which are Successors or Related Entities of the party originally identified as the “Tenant” under this Lease, and may not be assigned, transferred or otherwise conveyed other than to assignees which are Successors or Related Entities of the party originally identified as the “Tenant” under this Lease, without Landlord’s prior written consent, which consent Landlord may grant or withhold in its sole and absolute discretion.

 

5

 

ARTICLE 4
 RENTAL

 

Section 4.01                            Rental.  The rents reserved under this Lease (collectively, the “Rental”) shall consist of Base Rent and all other sums that are due and payable by Tenant to Landlord under this Lease, including, without limitation, all amounts payable by Tenant under Article 8 herein (collectively, “Additional Rent”).  Tenant shall pay all Rental in lawful money of the United States to Landlord at Landlord’s Rent Payment Address via ACH or wire transfer as set forth hereinabove, or at such other place or in such other manner as Landlord may designate in writing from time to time, without any notice, deduction, reduction, abatement, recoupment or set-off whatsoever.

 

Section 4.02                            Base Rent.  Throughout the Term, Tenant shall pay to Landlord the annual Base Rent as set forth in Section 1.01 in twelve (12) equal monthly installments on the first day of each calendar month throughout the Term, in advance, without any notice or demand therefor and prorated on the basis of a thirty (30) day month for any partial calendar month during the Term.  Base Rent payable for the first full calendar month following the Commencement Date shall be paid by Tenant to Landlord together with Tenant’s execution and delivery of this Lease.

 

Section 4.03                            Interest and Late Charge.  If Tenant shall fail to pay any Rental when due, Tenant shall pay to Landlord, as Additional Rent, interest on the unpaid Rental at the rate of the lower of (such lower rate being herein referred to as the “Default Rate”):  (a) thirteen (13%) percent per annum and (b) the highest rate per annum chargeable to Tenant pursuant to law, from the date due until the date paid.  In addition, if Tenant shall fail to pay when due any Rental within five (5) days of the date due, then Tenant shall pay to Landlord, as Additional Rent, a late charge equal to five (5%) percent of the unpaid Rental plus reasonable attorneys fees incurred by Landlord by reason of Tenant’s failure to timely pay Rental, as an agreed and liquidated amount as compensation for Landlord’s additional administrative expenses relating to such late payment (provided in the case of the first two such failures in the Term only, such failures shall not result in a late charge hereunder unless and until Tenant fails to cure such defaults within five (5) days following notice thereof).  The provisions of this Section are in addition to any other remedies available to Landlord with respect to non-payment of Rental.

 

Section 4.04                            Abatement.  Notwithstanding anything to the contrary contained in this Lease,, provided that this Lease is in full force and effect and no Abatement Event of Default (as hereinafter defined) shall have occurred, Tenant shall be entitled to a credit against the Base Rent in the aggregate amount of $367,500.00 for the three (3) month period commencing on the Commencement Date and ending three (3) months thereafter (the “Rent Abatement Period”), which credit shall be applied against the Base Rent in three (3) equal monthly installments of $122,500.00 each.  During the Rent Abatement Period, Tenant shall otherwise be required to comply with all of the other terms, covenants and conditions of this Lease on Tenant’s part to be observed and performed, including, but not limited to, the obligation to make all payments of Additional Rent hereunder (including, without limitation, the Additional Rent payable under Article 8).  If at any time during the Term, an Abatement Event of Default shall occur, then, in addition to all other damages and remedies to which Landlord may be otherwise entitled, Landlord shall also be entitled to the repayment in full of all Rental which has theretofore been

 

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allowed as a credit under the provisions of this Section 4.04 of this Lease, which repayment Tenant shall make promptly following demand therefor.  As used herein, the term “Abatement Event of Default” shall mean a monetary default or material non-monetary default under this Lease shall have occurred and Tenant shall not have cured same:  (a) prior to the expiration of the applicable cure period (it being understood that if the default in question is of such a nature that it cannot be completely remedied within the applicable cure period, then Tenant shall not be deemed to be in default beyond the applicable cure period pursuant to this Section 4.04(a) if: (i) Tenant shall, after being given notice of the default and within the applicable cure period, advise Landlord in writing of Tenant’s intention to institute all steps necessary to remedy such situation, (ii) Tenant shall, within the applicable cure period, institute and thereafter diligently prosecute to completion all steps necessary to remedy the same, and (iii) Tenant shall remedy the same within a reasonable time after the date of the giving of said notice by Landlord, not to exceed sixty (60) days in the aggregate), and (b) within ten (10) days following a second notice to Tenant of such default.  Landlord’s second notice to Tenant shall contain a statement that “TENANT’S FAILURE TO CURE THE DEFAULT WITHIN THE TEN (10) DAY CURE PERIOD, SHALL RESULT IN THE LOSS OF TENANT’S RENT ABATEMENT”.

 

Section 4.05                            Failure to Pay.  If an Event of Default occurs, Landlord may require that all subsequent rent payments be made by wire transfer or by an automatic payment from Tenant’s bank account to Landlord’s account, without cost to Landlord.  Landlord shall have no obligation to accept less than the full amount of any installment of Rental which is due and owing by Tenant to Landlord, and if Landlord shall accept less than the full amount owing, Landlord may apply the sums received towards any of Tenant’s obligations at Landlord’s discretion.  Landlord’s failure to timely bill Tenant shall in no way excuse Tenant from its payment obligations or constitute a waiver of Landlord’s entitlement to any charges not timely billed by Landlord.

 

ARTICLE 5
 CONDITION OF PREMISES

 

Section 5.01                            Condition of Premises.  Tenant has examined and inspected the Premises and the physical condition thereof.  Landlord has not made and does not make any representation as to the physical condition or any other matter affecting or relating to the Premises, the Building or the Property, except as is in this Lease specifically set forth, and Tenant specifically acknowledges that no such representations have been made.  Tenant hereby acknowledges that Landlord has afforded Tenant the opportunity for a full and complete investigation, examination, and inspection of the Premises and Tenant agrees to accept the Premises (including all building and mechanical systems serving the Premises) “as is” on the date hereof, with all faults, Landlord shall not be required to perform any work or render any service to make the Premises or the Property ready or suitable for Tenant’s use and occupancy, AND TENANT WAIVES ANY IMPLIED WARRANTY OF SUITABILITY, HABITABILITY, MERCHANTABILITY OR OTHER IMPLIED WARRANTIES THAT LANDLORD WILL MAINTAIN OR REPAIR THE PREMISES OR ITS APPURTENANCES EXCEPT AS MAY BE CLEARLY AND EXPRESSLY PROVIDED IN THIS LEASE.

 

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Section 5.02                            Tenant’s Work.

 

(a)                                 Subject to the provisions of Article 12 herein, Tenant shall, at Tenant’s sole cost, perform or cause the performance of all alterations, installations, additions and improvements that shall be required to be made in or to the Premises in order to prepare the Premises, or any portion thereof, for Tenant’s initial occupancy for the Permitted Use (“Tenant’s Work”).  All materials used in connection with Tenant’s Work shall be new and first quality and Tenant’s Work shall be performed in a good and workmanlike manner.  Tenant’s Work shall constitute Tenant’s Changes (as hereinafter defined) and is subject to all of the terms and conditions set forth in Article 12 hereof attached hereto.  Tenant shall deliver copies of all of its detailed plans, drawings and specifications for Tenant’s Work to Landlord for its review and approval promptly following the mutual execution and delivery of this Lease.  Tenant shall be in default hereunder if Tenant fails to complete Tenant’s Work pursuant to the terms and conditions contained herein within twelve (12) months after Landlord’s approval of said detailed plans, drawings and specifications for Tenant’s Work.

 

(b)                                 Provided this Lease shall be in full force and effect and no Event of Default (as hereinafter defined) shall have occurred and be continuing, Landlord shall reimburse Tenant for the cost of Tenant’s Work actually incurred by Tenant which constitute Qualified Alterations (as hereinafter defined), as approved by Landlord pursuant hereto and which are actually made by Tenant within six (6) months of the Commencement Date up to a maximum amount of Landlord’s Contribution.  As used herein, the term “Qualified Alterations” shall mean the labor and materials used by Tenant to construct Tenant’s Changes which are permanent leasehold improvements in and to the Premises in compliance with this Lease after the date hereof including electrical work, replacement of existing lighting, painting and the installation of carpeting, and Soft Costs (as hereinafter defined), subject to the limitations set forth herein.  Qualified Alterations shall expressly exclude (and Landlord’s Contribution shall not be applied to) architect’s and engineer’s fees and costs of permits (collectively, “Soft Costs”) in excess of Nineteen Thousand Six Hundred Eighty-Seven and 50/100 ($19,687.50) Dollars in the aggregate, the cost of interest or late charges, or labor and materials and such services used to furnish trade fixtures, furniture, furnishings, moveable business equipment, and any personal property whatsoever.  Except as otherwise expressly set forth herein, Tenant shall complete Tenant’s Work in accordance with the plant approved in writing by Landlord, whether or not Landlord’s Contribution is sufficient to fund such completion.  To the extent that the Qualified Alterations are less than Landlord’s Contribution, Tenant shall not be entitled to receive any such excess, whether as a credit, refund, abatement or otherwise.

 

(c)                                  Provided this Lease is in full force and effect and Tenant has not defaulted hereunder, Landlord shall make Landlord’s Contribution to Tenant in one lump sum payment within thirty (30) days after the completion of Tenant’s Work and upon Tenant’s submission to Landlord of an invoice therefore together with the following items:  (i) an invoice for payment of Landlord’s Contribution together with paid receipts (or such other proof of payment as Landlord shall reasonably require) for work done in connection with Tenant’s Work, (ii) final lien waivers (in recordable form and form otherwise satisfactory to Landlord) from the architects, contractors, subcontractors and materialmen furnishing labor or materials in connection with Tenant’s Work releasing Landlord and Tenant from all liability for all such work, (iii) certificates by Tenant’s architect and Tenant certifying that Tenant’s Work has been properly performed in accordance

 

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with the plans and specifications approved by Landlord and incorporated into the Premises and that all such work has been fully paid for and performed and (iv) all sign-offs, inspection certificates and permits required to be issued by any governmental entities having jurisdiction thereover, including a certificate of occupancy and/or certificate of completion for the Premises if same is required pursuant to applicable Laws (as hereinafter defined).  Notwithstanding anything to the contrary contained herein, in no event shall Landlord be required to pay Landlord’s Contribution or any portion thereof pursuant to any invoice submitted by or on behalf of Tenant more than seven (7) months following the Commencement Date, time being of the essence.

 

ARTICLE 6
 USE AND OPERATION OF THE PREMISES

 

Section 6.01                            Use.  Tenant shall use the Premises during the Term for the Permitted Use and for no other use or purpose whatsoever.  Tenant shall diligently operate Tenant’s business in the Premises for the Permitted Use in a first class manner.

 

Section 6.02                            Compliance With Laws.  Except as otherwise expressly set forth herein, Tenant, at its sole cost, shall promptly comply with all present and future laws, statutes, codes, ordinances, rules, regulations, judgments, orders, writs or decrees of any governmental authority having jurisdiction over the Premises affecting or applicable to the Premises or to the use or occupancy thereof or the business conducted therein, including, without limitation, The Americans With Disabilities Act of 1990, as amended (collectively, “Laws”), whether or not any such Laws are foreseen or unforeseen, ordinary or extraordinary, shall necessitate Structural or Exterior Changes (as hereinafter defined in Section 12.01) or shall interfere with the use and enjoyment of the Premises.  Tenant shall deliver to Landlord true and complete copies of any and all permits, licenses, inspection and/or certificates required for the lawful conduct of Tenant’s business in the Premises.  Tenant shall obtain at its sole cost, all licenses, permits, and certificates (including temporary and permanent certificates of occupancy) required in connection with Tenant’s Work and other Tenant’s Changes and the operation of Tenant’s business.  Upon Landlord’s written request, Tenant shall deliver to Landlord true and complete copies of any and all such licenses, permits and certificates.  Tenant shall reasonably cooperate with any effort to obtain LEED, Green Globes, Energy Star (or similar) certification for the Building; provided that Tenant shall not be obligated to incur any additional cost or expense in connection therewith (other than a de minimis costs and expenses).  Tenant, at its sole cost, shall comply with any and all provisions, recommendations and requirements of (i) any national or local Board of Fire Underwriters (or other similar body) having jurisdiction over the Premises and (ii) any insurance policy(ies) covering or applicable to the Premises or Building and any issuer(s) of such insurance policy(ies) (collectively, “Insurance Requirements”).

 

Section 6.03                            Manner of Use.  In no event shall the Premises or any portion thereof be used:  (a) in violation of any Laws, Insurance Requirements or the certificate of occupancy or other licenses or certificates covering the Premises; (b) in a manner which creates or permits a nuisance or trespass; (c) in a manner which produces or transmits sounds audible outside the Premises; (d) in a manner which obstructs or encumbers the sidewalks or any other portion of the Common Area; (e) in a hazardous or wasteful manner; (f) in a manner which exceeds the floor load which such floor was designed, or is permitted by Laws, to carry; (g) in any manner which

 

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causes or permits any noise, odors, fumes, dust or vapors to be dispelled from the Premises; (h) for any form of assignation or lewdness, or any form of establishment employing partially or totally nude entertainers, employees, waiters or waitresses, or any usage as an adult entertainment facility, massage parlor, bathhouse, or facility which caters to the prurient sale of books, magazines, other periodicals, or sex-centered objects; (i) for any retail or manufacturing purposes, or (j) in any other manner which, in Landlord’s reasonable judgment, adversely affects the character, operation, reputation or appearance of the Property.

 

Section 6.04                            Refuse and Pests.  Tenant shall, at its sole cost and expense, maintain the Premises in a clean, safe and sanitary condition.  Tenant shall keep all garbage, trash or other refuse in sealed metal or water-tight rubber plastic containers which are rat-proof and shall remove and dispose of such garbage, trash, rubbish and refuse from the Premises each day that the Premises are open for business to the disposal area designated by Landlord and otherwise in accordance with all applicable Laws, including any recycling Laws.  Tenant shall separately contract with a trash removal contractor approved by Landlord for the removal and disposal of Tenant’s rubbish and trash from the Premises and shall be responsible for all charges relating to all trash removal.  Tenant shall keep the Premises free from all pests, insects and vermin and shall arrange for appropriate extermination at Tenant’s expense on a regular basis or at more frequent intervals to the extent Landlord reasonably determines a need for the same.

 

Section 6.05                            Hazardous Substances.  Except for normal cleaning solvents and office supplies used in connection with Tenant’s business (which shall at all times be used, handled, transported, stored, generated and disposed of in compliance with all applicable Laws), Tenant shall not cause or permit any Hazardous Substance (as hereinafter defined) to be used, handled, transported, stored, generated or disposed of on, in or from the Property by Tenant, its agents, employees, contractors, invitees or licensees.  If Hazardous Substances are used, handled, transported, stored, generated or disposed of on the Premises or the Property by Tenant, its agents, employees, contractors, invitees or licensees, or if the Premises or the Property (or any portion thereof) becomes contaminated in any manner as a result of the acts or omissions (or alleged acts or omissions) of Tenant, its agents, employees, contractors, invitees or licensees or if Tenant shall otherwise breach (or permit a breach) of its obligations under this Section 6.05, Tenant shall indemnify, hold harmless and defend Landlord and the other Landlord Indemnitees (as hereinafter defined) from and against any and all legal action, claims, expenses, costs, damages, loss, liability, penalties, fees and other expenses, including, without limitation, reasonable legal fees and disbursements (collectively, “Liabilities”), which shall include, without limitation, a decrease in value of the Property, damages due to loss or restriction of leasable or usable space and damages due to adverse impact on marketing of the Building or the Property, arising during or after the Term and relating to such contamination.  Such indemnification shall include, without limitation, all costs incurred by Landlord duo to any investigation of the Property or any part thereof or any cleanup, removal or restoration, whether or not required by laws.  If Tenant causes or permits the presence or release of any Hazardous Substance on the Property.  Tenant shall promptly, at its sole expense, take all action necessary to return the Property to the condition existing prior to the presence or release of such Hazardous Substance or Landlord may (hut shall have no obligations to) remove or remediate same at Tenant’s sole cost.  Tenant shall obtain Landlord’s prior consent to any such action and such action shall constitute Tenant’s Changes to be performed strictly in accordance with the terms and conditions of Article 12.  Notwithstanding anything to the contrary contained in this Lease,

 

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Tenant shall not be responsible for clean-up, handling, removing, abating or remediating (collectively, “Remediation”) of any Hazardous Substances which are present in the Premises prior to the delivery of the Premises to Tenant or which Landlord releases in the Premises, unless and to the extent same are released as a result of the acts or omissions of, through or under Tenant or result in connection with Tenant’s Changes, and no cost incurred in connection with the Remediation of such Hazardous Materials shall be allocated to or payable by Tenant.  As used in this Lease, “Hazardous Substance” means any substance (a) defined under any Environmental Law as a hazardous substance, hazardous waste, hazardous material, pollutant, solid waste or contaminant, (b) a petroleum hydrocarbon, including crude oil or any fraction thereof, including, without limitation, asbestos, polychlorobiphenyls (“PCBs”), petroleum products or derivatives, (c) hazardous, toxic corrosive, flammable, explosive, infectious, radioactive, carcinogenic or a reproductive toxicant, (d) otherwise regulated pursuant to any Environmental Law and (e) hazardous substances, solid wastes, hazardous wastes or toxic substances, as such terms are defined in (i) the Comprehensive Environmental Response, Compensation and Liability Act of 1980, as amended (42 U.S.C. Section 1802); (ii) the Resource Conservation Recovery Act (42 U.S.C. Section 6901, et. seq.), as amended; (iii) local, state and Federal laws governing conservation and protection of the environment and (iv) the rules and regulations adopted and promulgated pursuant to any such codes or acts.  The terms and conditions of this Section shall survive the termination of this Lease.  As used in this Lease, “Environmental Law” means all federal, state and local laws, statutes, ordinances, regulations, rules, judicial and administrative orders and decrees, permits, licenses, approvals, authorizations and similar requirements of all federal, state and local governmental agencies or other governmental authorities pertaining to the protection of human health and safety or the environment, or regulating the use, storage, treatment, disposal, transportation, management or reuse of Hazardous Substances, now existing or later adopted during the Term.

 

ARTICLE 7
 COMMON AREA

 

Tenant agrees not to encumber or obstruct, or allow to be encumbered or obstructed, the sidewalks, curbs and roadways adjacent or leading to the Building or the Premises.

 

ARTICLE 8
 OPERATING EXPENSES AND TAX ESCALATION

 

Section 8.01                            Operating Expenses.

 

(a)                                 “Operating Expenses” shall mean the total costs and expenses paid or incurred by or on behalf of Landlord including, without limitation, costs of repairs, maintenance and replacement obligations under Section 11.01 hereof (whether directly or through independent contractors) on an accrual basis consistently applied in respect of the operation, maintenance, repair, replacement, protection, insuring, improvement and management of the Property (inclusive of all parking areas) which, in accordance with the accounting practices used by Landlord and the terms hereof, are chargeable as an Operating Expense, including, without limitation, the financial expenses incurred in connection therewith, such as reasonable attorneys’ fees and disbursements, but specifically excluding (i) Taxes (hereinafter defined), (ii) capital improvements except to the extent provided herein, (iii) to perform the HVAC Unit Replacement

 

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(as hereinafter defined), (iv) leasing commissions, attorneys’ fees and other expenses incurred in connection with the negotiations or disputes with or leasing to tenants or prospective tenants, (v) costs incurred for tenant installations and decorations in connection with preparing space for a new tenant, (vi) mortgage interest and the costs of financing and refinancing, (vii) franchise or income taxes imposed on Landlord, (viii) ground rent, if any, (ix) goods and services furnished to an individual tenant of the Building which are separately reimbursed directly to Landlord, and (x) expenses for repair or maintenance to the extent the same have been reimbursed to Landlord pursuant to warranties.

 

(b)                                 If any capital improvement is made:  (i) to comply with Laws or the terms of Section 11.01 hereof (other than the HVAC Unit Replacement subject to the terms of Section 11.01), (ii) in lieu of a repair required in accordance with prudent real estate management practices as reasonably determined by Landlord, (iii) to provide or maintain building standards or (iv) to save or reduce Operating Expenses; then the cost of such improvement shall be included in Operating Expenses; provided, however, if the cost of such improvement is required to be capitalized for federal income tax purposes, such cost shall be amortized on a straight-line basis over the useful life of the improvement, ‘together with interest on the unamortized balance at the higher of eight percent (8%) per annum calculated on a cumulative, compounded basis or the rate as may have been paid by Landlord on borrowed funds and same shall be deemed an Operating Expense in each of the years during which the cost of the improvement is amortized.

 

Section 8.02                            Taxes.  “Taxes” shall mean the amount of all real property taxes, assessments, business taxes, excises, water charges, sewer rents, fees, levies, charges and other taxes of every kind and nature whatsoever, general or special, extraordinary and ordinary, foreseen and unforeseen, including, without limitation, interest on all installment payments, which may be levied or assessed against or arise in connection with the ownership, use, occupancy, operation or possession of the Property by any governmental or quasi-governmental authority (including, without limitation, personal property taxes for property that is owned by Landlord and used in connection with the Property).  Taxes shall also include all taxes, levies and charges which may be assessed, levied or imposed in substitution of, or in addition to, all or any part of real property taxes, or which are assessed in lieu of a tax increase, or paid as rent under any ground lease and all expenses incurred in determining or attempting to obtain a reduction of Taxes.  Taxes shall not include any Taxes measured in whole or in part by, rents or gross receipts or in the nature of an excise, franchise, gift, estate, succession, inheritance or capital levy tax or tax on Landlord’s income or profits (unless any of the foregoing taxes shall be in addition to or in lieu of so called “real estate taxes” in which case such taxes shall be included in the definition of Taxes).

 

Section 8.03                            Tenant’s Payment.  Commencing on the Commencement Date and continuing on the first day of each calendar month in advance during the Term, Tenant shall pay to Landlord, as Additional Rent, such amount as Landlord shall reasonably estimate to equal one-twelfth (1/12th) of Tenant’s Share of Operating Expenses and Tenant’s Share of Taxes for the then current calendar and/or fiscal year, as applicable, which estimate shall be determined by multiplying Landlord’s estimate of each of the monthly Operating Expenses and Taxes by Tenant’s Share.

 

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Section 8.04                            Year End Adjustment.  After the expiration of each calendar and/or fiscal year, Landlord shall deliver to Tenant one or more statements prepared by Landlord of Tenant’s Share of Operating Expenses and Tenant’s Share of Taxes for such year showing in reasonable detail the calculation of Tenant’s Share of Operating Expenses and/or Tenant’s Share of Taxes for such calendar or fiscal year, as applicable (each, a “Statement”).  If on the basis of a Statement, Tenant owes an amount that is less than the estimated payments for such year with respect to Operating Expenses or Taxes previously made by Tenant, Landlord shall credit such excess amount against the next payment(s) of Rental due from Tenant hereunder, of if the Term has expired or otherwise terminated (other than in connection with a Tenant default) and if no Rental shall be payable hereunder, Landlord shalt promptly pay such excess amount to Tenant.  If on the basis of a Statement, Tenant owes an amount that is more than the estimated payment for such year with respect to Operating Expenses or Taxes previously made by Tenant, Tenant shall pay the deficiency to Landlord within fifteen (15) days after delivery of the Statements.  Tenant’s Share of Operating Expenses and Tenant’s Share of Taxes shall be prorated for any partial month or partial Lease Year occurring in the Term.  The obligations of Landlord and Tenant under the provisions of this Article with respect to any Additional Rent payable by Tenant, or any credit to which Tenant may be entitled, shall survive the expiration or any sooner termination of the Term.  All sums payable by Tenant under this Article shall be collectible by Landlord in the same manner as-Base Rent.

 

Section 8.05                            Audit Rights. Any statement of Tenant’s Share of Operating Expenses sent to Tenant shall be conclusively binding upon Tenant unless, Tenant shall:  (a) timely pay to Landlord the amount set forth in such Statement, without prejudice to Tenant’s right to dispute the same, and (b) within sixty (60) days after such Statement is sent, send a written notice to Landlord objecting to such Statement and specifying the particular respects in which such Statement is claimed to be incorrect (the “Dispute Notice”).  If Tenant shall timely pay all amounts in a Statement and shall timely deliver a Dispute Notice to Landlord, the parties shall meet in good faith and attempt to resolve the dispute.  If the parties shall not be able to resolve such dispute (Tenant being required to give Landlord reasonable opportunity to substantiate the accuracy of the Statement being disputed by Tenant), then, provided Tenant shall have theretofore timely paid to Landlord the amount shown to be due to Landlord on the disputed Statement, Tenant shall have the right, during reasonable business hours and upon not less than ten (10) business days prior written notice, to have its accountants and/or auditors inspect the relevant portion of Landlord’s books and records.  Tenant shall have sixty (60) days from the giving of the foregoing notice to audit, at Landlord’s offices, Landlord’s books and records for the applicable year concerning the Operating Expenses in dispute, but only to the extent reasonably necessary to verify such disputed Operating Expenses, subject to the following conditions:  (i) there is no uncured default under this Lease; (ii) the audit shall be performed by an independent certified public accounting firm of recognized national or regional standing; (iii) in no event shall any audit be performed by a firm retained on a “contingency fee” basis; (iv) the audit shall commence within thirty (30) days after Landlord makes Landlord’s books and records available to Tenant’s auditor and shall conclude within sixty (60) days after commencement; (v) the audit shall be conducted where Landlord maintains its books and records and shall not interfere with the conduct of Landlord’s business; and (vi) Tenant shall (and shall cause its accounting firm to) treat any information learned or observed in connection with the audit confidential and Tenant shall (and shall cause its accounting firm to) execute a confidentiality agreement for Landlord’s benefit in form reasonably acceptable to Landlord prior

 

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to commencing the audit. In the event Tenant’s accountants and/or auditors dispute the correctness of any Statement and specify in writing the particular respects in which the Statement is claimed to be incorrect, the parties shall meet in good faith and attempt to resolve the dispute and Tenant shall give Landlord reasonable opportunity to substantiate the accuracy of the Statement being disputed by Tenant.  This Section 8.05 shall not be construed, to limit, suspend or abate Tenant’s obligation to pay Rental when due, including estimated Operating Expenses pending resolution of any dispute.  Landlord shall credit any overpayment of Operating Expenses determined by the final approved audit report against the next Rental due and owing by Tenant or, if no further Rental is due, promptly refund such overpayment of Operating Expenses directly to Tenant.  Similarly, Tenant shall pay Landlord any underpayment of Operating Expenses determined by the final approved audit report within thirty (30) days of determination.  If Tenant does not elect to audit the Operating Expenses for any year as herein expressly set forth, the Operating Expenses for the applicable year shall be deemed approved for all purposes, and Tenant shall have no further right to review or contest the same.  The fees and expenses of any such audit shall be borne by Tenant, unless Landlord’s charges are found to be overstated for the applicable year by more than five percent (5%), in which case Landlord shall bear the costs of the audit.  In no event shall Tenant have the right to audit Landlord’s books and records more than once during any twelve (12) month period, nor shall any assignee or subtenant of Tenant have any right to perform such an audit.

 

Section 8.06                            Calculation of Charges.  Landlord and Tenant agree that each provision of this Lease for determining charges, amounts and Additional Rent (including Operating Expense payments) by Tenant is commercially reasonable.

 

ARTICLE 9
 UTILITIES

 

Section 9.01                            Utilities.  Tenant shall arrange to obtain in its own name and pay directly to the appropriate supplier the cost of all utilities and services serving the Premises, including gas and electric, together with all fees, charges, deposits and assessments related to the hook-up, furnishing, consumption, maintenance and installation of all utilities or services and any meters measuring the same (collectively, “Utilities”) attributable or serving the Premises whether located inside or outside of the Premises.  Landlord shall have no obligation to provide any utilities or services to the Premises except to the extent expressly provided for in this Lease.  If any utilities or services are jointly metered within the Building, such as water/sewer and common area electric, Tenant shall be billed an amount equal to Tenant’s Share as part of Operating Expenses for the same pursuant to Article 8.  Tenant shall not install or utilize any equipment which may exceed or overload the capacity of any Utilities furnished or servicing the Premises or the Building.  All work performed by Tenant under this Section shall be deemed Tenant’s Changes and shall be subject to Article 12 herein.  Landlord shall have no liability to Tenant or any other party for any inadequacy, cessation, or interruption of any utilities and may temporarily suspend service of the heating, plumbing, and electric systems, when necessary, by reason of accident or emergency or an Unavoidable Delay, or for repairs, alterations, replacements or improvements which in Landlord’s sole judgment are desirable or necessary without the same constituting an eviction of Tenant in whole or in part, and the Rental shall not abate while such repairs, alterations, improvements, or additions are being made, by reason of loss or interruption of business of Tenant, or otherwise.

 

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Section 9.02                            Sprinklers.  Tenant shall be responsible at its cost for the installation, maintenance, operation, repair and replacement of the sprinkler system (and all components thereof) serving the Premises in compliance with applicable Laws.  If, in Landlord’s discretion, Landlord shall elect to maintain same in writing, Tenant shall pay to Landlord, as Additional Rent hereunder, Landlord’s costs of any sprinkler system maintenance contract for the Building together with any taxes, permit and inspection costs, testing, and any other expenses incurred with respect to the sprinkler system during the Term within fifteen (15) days of billing therefor by Landlord, provided, that such contribution by Tenant shall not derogate from Tenant’s obligations under this Section with respect to the sprinkler system serving the Premises.  Notwithstanding anything contained herein to the contrary, if any governmental authority requires or recommends the installation of a sprinkler system or that any changes, modifications, alterations, or additional sprinkler heads or other equipment be made or supplied in an existing sprinkler system (collectively, “Sprinkler Alterations”), or if any such Sprinkler Alterations become necessary to prevent the imposition of a penalty or charge against the full allowance for a sprinkler system in the fire insurance rate set by the applicable authority or by any insurer, Tenant shall, at Tenant’s expense, promptly make such Sprinkler Alterations, whether the work involved shall be structural or non-structural in nature and shall be responsible for any increased costs incurred by Landlord with respect to the Sprinkler Alterations.

 

ARTICLE 10
 PARKING

 

Tenant shall be entitled to the exclusive use of the parking spaces in the parking area serving the Building, at no additional cost to Tenant, provided that such use complies with all applicable Laws and Insurance Requirements and all rules and regulations that may be imposed by Landlord.  No parking shall be permitted on any of the streets or roadways located within the Property, if any.  Tenant acknowledges that all parking is in non-secured areas and that Landlord shall not provide any security for the same during the Term.  Accordingly, Tenant hereby acknowledges that Tenant shall use the parking areas at its own risk and hereby releases Landlord and its agents from any liability arising from any damage or injury incurred by Tenant, or its employees, customers and/or invitees, arising from their use of the parking areas.

 

ARTICLE 11
 MAINTENANCE AND REPAIRS

 

Section 11.01                     Landlord’s Obligations.  Landlord shall: (a) keep in good working order and repair the exterior grounds and landscaping, façade and roof of the Building, the base building systems (i.e., the base Building plumbing, drainage, sewer, and electrical equipment), and the foundation and other structural elements of the Premises, (b) provide reasonable and customary snow removal services to the Building and (c) replace the five (5) existing rooftop heating, ventilation and air conditioning (“HVAC”) units with new building standard HVAC units (the “HVAC Unit Replacement”), as required; provided, however, that, notwithstanding anything to the contrary contained herein, Landlord shall not be required to make any repairs or replacements caused by the acts or omissions of Tenant, or its agents, employees, licensees, sublessees, invitees or contractors or resulting in connection with Tenant’s Changes; it being agreed that such repairs and replacements shall be performed by Tenant at Tenant’s cost (or, at Landlord’s election, by Landlord, at Tenant’s cost).  The costs of Landlord’s performance

 

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pursuant to Section 11.01(a) and Section 11.01(b) shall constitute Operating Expenses (subject to the express limitations contained in Article 8 hereof).  Landlord shall not be required to make any other improvements or perform any other repairs of any kind upon the Premises or the Building and appurtenances.

 

Section 11.02                     Tenant’s Obligations.  Except as otherwise expressly set forth in Section 11.01  above, Tenant, at Tenant’s sole cost, shall keep and maintain in first class appearance, safe order, condition and repair the Building and every part thereof, including, without limitation all doors, door frames, door checks, other entrances, windows, window frames, glass and any security grill, electrical, heating and air conditioning systems and units (except as otherwise expressly set forth herein), whether or not any such units are located outside the Premises including any roof top HVAC units, plumbing, sewage, life safety systems, security, sprinkler systems, fire alarm systems, and any other mechanical or other Building systems serving the Premises, wall and floor coverings, ceilings, and Tenant’s Changes, and, except as otherwise expressly set forth in Section 11.01, shall perform all preventative maintenance and make all other repairs, replacements, renewals and restorations, interior and exterior, ordinary and extraordinary, foreseen and unforeseen, required to be made in and to the Building and the Premises.  Tenant, at its sole cost, shall secure from a licensed and reputable HVAC contractor a service and maintenance contract for the HVAC system or units serving the Premises and acceptable to Landlord.  Upon Landlord’s request, Tenant shall procure at its cost an annual written report of the condition thereof and deliver the same to Landlord.  The securing of such service contract by Tenant shall not relieve Tenant of its obligation to maintain and repair such equipment as above provided.  The term “repair” as used herein shall include replacements and/or renovations, when necessary.  Tenant shall surrender the Premises at the expiration of the Term broom clean and in as good condition as when Tenant’s Work was completed or in such better condition as the Premises may be put during the Term, excepting only deterioration caused by ordinary wear and tear.

 

ARTICLE 12
 TENANT’S CHANGES

 

Section 12.01                     Tenant’s Changes.  “Tenant’s Changes” shall mean any and all alterations, installations, additions or improvements made or to be made by or on behalf of Tenant, and shall include Tenant’s Work.  “Structural or Exterior Changes” shall mean any and all Tenant’s Changes which (a) affect the exterior of the Premises or are visible from outside the Premises, or (b) affect the structure of the Premises or any of its outer walls, any of its inner walls or columns which are load bearing, its foundation or roof, or (c) affect any of the building or service systems located in the Premises or the Building, including, without limitation, the mechanical, electrical, heating, ventilating and air-conditioning, plumbing, sprinkler and other service systems.  “Cosmetic Changes” shall mean any Tenant’s Changes to the interior of the Premises of a purely cosmetic or decorative nature (i.e., wall, floor and ceiling coverings and window treatments) that do not require a building permit or any similar authority, license or permit under applicable Laws provided that (i) the aggregate cost of such Cosmetic Changes will not exceed $150,000.00 in any one instance (or in any series of instances effectuating a single alteration plan), (ii) Landlord shall have received, at least ten (10) days prior to the commencement of the Cosmetic Changes, notice of performance of the same and the identity of the contractors performing the Cosmetic Changes (together with certificates of insurance

 

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required to be maintained by such contractors), which contractors shall be subject to the reasonable approval of Landlord, and (iii) the terms, conditions and provisions of this Lease regarding Tenant’s Changes are otherwise fully complied with.

 

Section 12.02                     Requirements.

 

(a)                                 Tenant shall obtain Landlord’s prior written consent to any Tenant’s Changes that are not Cosmetic Changes, which consent with respect to Tenant’s Changes which are not Structural or Exterior Changes shall not be unreasonably withheld, conditioned or delayed.  As a condition to obtaining Landlord’s consent to any Tenant’s Change that requires Landlord’s consent, Tenant shall deliver to Landlord detailed drawings, plans and specifications for the proposed Tenant’s Changes together with other information reasonably requested by Landlord in connection therewith.

 

(b)                                 All Tenant’s Changes shall be performed pursuant to the following terms and conditions:

 

(i)                                     Tenant, at its expense, shall obtain all necessary permits and approvals required under applicable Laws for Tenant’s Changes (both as a condition to performance and in connection with final sign offs and inspections) (collectively, the “Approvals”) prior to commencement of any Tenant’s Changes and upon completion of any Tenant’s Changes, as applicable. Landlord may obtain all necessary Approvals (and complete at Tenant’s expense any work required in order to obtain them) at Tenant’s expense upon Tenant’s failure to obtain the same;

 

(ii)                                  Tenant shall perform Tenant’s Changes strictly in accordance with full plans and specifications previously approved by Landlord pursuant hereto (to the extent a permit, license or other certificate is required under applicable Laws for the performance of such Tenant’s Changes) in a good and workmanlike manner in compliance with all applicable Laws and the reasonable rules adopted by Landlord for construction in the Building from time to time;

 

(iii)                               Tenant shall perform Tenant’s Changes using licensed and reputable contractors approved by Landlord in advance (which approval shall not be unreasonably withheld, conditioned or delayed by Landlord);

 

(iv)                              Prior to the commencement of any Tenant’s Changes, Tenant shall, at its sole cost, carry and deliver evidence to Landlord of additional insurance required under Article 14 and all such assurances to Landlord as Landlord shall reasonably require to assure payment of the costs thereof, including, without limitation, notices of non-responsibility, performance bonds, and funded construction escrows;

 

(v)                                 Tenant shall obtain lien waivers from all contractors, laborers and materialmen and shall discharge or bond, in accordance with the

 

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provisions of Section 12.04, any liens filed against the Premises, the Building or the Property;

 

(vi)                              In no event shall any Tenant’s Changes result in the reduction of any environmental rating for the Building or the Property which may now or hereafter be made, such as made pursuant to LEED, Green Globes or Energy Star;

 

(vii)                           Tenant shall pay to Landlord, within ten (10) business days of request therefor, the reasonable out-of-pocket costs incurred by Landlord in connection with any of Tenant’s Changes including costs of Landlord’s review of Tenant’s drawings and specifications for Tenant’s Changes.  No review or approval by Landlord of Tenant’s plans and specifications shall constitute any representation or warranty by Landlord as to the adequacy, correctness, efficiency, compliance with Laws or any other aspect of such drawings and specifications;

 

(viii)                        Tenant shall hold harmless, indemnify and defend Landlord from and against any and all Liabilities arising from or relating to Tenant’s Changes; and

 

(ix)                              If Tenant shall need to make any roof penetrations whatsoever to the Building in connection with Tenant’s Changes, and if Landlord shall approve same, Tenant shall utilize Landlord’s roofing contractor at Tenant’s expense in order to preserve Landlord’s roof warranty.

 

Section 12.03                     Removal.  All Tenant’s Changes shall, unless Landlord elects otherwise in writing at any time prior to the expiration of the Term, become the property of Landlord, and shall be surrendered with the Premises, at the expiration or sooner termination of the Term of this Lease.  Notwithstanding the foregoing, Tenant may, at the time that Tenant submits plans and specifications for any Tenant’s Changes to Landlord for Landlord’s approval, request in writing that Landlord waive its right to compel Tenant to remove the Tenant’s Changes identified on such plans and specifications.  If Landlord waives its right to compel Tenant to remove such Tenant’s Changes, in whole or in part, Landlord shall notify Tenant at the time of Landlord’s approval of such plans and specifications of those Tenant’s Changes which Tenant may be required to remove in accordance with the terms of this Article prior to the expiration or earlier termination of the Term of this Lease and Tenant shall upon such expiration or earlier termination of the Term, unless instructed otherwise by Landlord, be required to remove only such Tenant’s Changes specified in Landlord’s notice.  Subject to the terms of the preceding sentence, any Tenant’s Changes which Landlord shall designate shall be removed by Tenant prior to the expiration or earlier termination of this Lease, together with all of Tenant’s wiring, cabling and conduits serving the Premises, and Tenant, at its expense, shall repair any damage to the Premises and the Building caused by such removal.  In addition, prior to the expiration or termination of this Lease, Tenant shall remove all of Tenant’s Property from the Building and shall repair and restore in a good and workerlike manner to original condition existing on the Commencement Date (reasonable wear and tear excepted) any damage to the Property caused by the removal of Tenant’s Property.  Any Tenant’s Property and/or Tenant’s Changes that are not

 

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removed by the last day of the Term or the earlier termination of this Lease shall be deemed abandoned and Landlord shall have the right to take legal title to same, or to dispose of same, at Tenant’s cost, without further notice to Tenant.  Notwithstanding anything to the contrary contained herein.  Landlord, at Landlord’s option, exercised by notice given prior to the Expiration Date or any sooner termination of the Term, may require Tenant to leave all cables, wiring and conduits installed as Tenant’s Changes, in which event all such cables, wiring and conduits shall remain in the Premises and the Building and become the property of Landlord, at no cost and expense to Landlord.

 

Section 12.04                     Liens.  Tenant shall promptly pay all persons or entities furnishing labor or materials in connection with Tenant’s Changes and shall not permit any liens to be filed against the Premises, the Building, the Property or any portion thereof.  Tenant shall immediately cause any lien to be vacated and canceled of record within thirty (30) days after the filing thereof in a manner reasonably satisfactory to Landlord; provided that in the event of a bonafide dispute, Tenant may bond over such lien to discharge same or to remove same from title in satisfaction of this requirement in a manner reasonably acceptable to Landlord.  If Tenant has not so removed said lien, then, Landlord, in addition to any other of its rights or remedies hereunder, may, hut shall not be obligated to, vacate or release such lien, whereupon Tenant shall pay to Landlord, on demand, all sums incurred by Landlord in connection therewith, including, without limitation, reasonable attorneys’ fees, together with interest thereon at the Default Rate from the date incurred until the date paid.

 

Section 12.05                     Close Out Requirements.  Promptly following the substantial completion of any Tenant’s Changes, Tenant shall submit to Landlord:  (a) final, “as-built” plans for the Premises showing all such Tenant’s Changes and demonstrating that such Tenant’s Changes were performed substantially in accordance with plans and specifications approved by Landlord in a format reasonably requested by Landlord; (b) an itemization of Tenant’s total construction costs, detailed by contractor, subcontractors, vendors and materialmen; bills, receipts, lien waivers and releases from all contractors, subcontractors, vendors and materialmen; architects’; and (c) Tenant’s certification of completion, payment and acceptance, and all governmental approvals and confirmations of completion for such Tenant’s Changes.

 

Section 12.06                     Labor Harmony.  Tenant shall not, at any time prior to or during the Term hereof, directly or indirectly employ, or permit the employment of, any contractor, mechanic or laborer in or for the Premises, whether in connection with any Tenant’s Changes or otherwise, if such employment will interfere or cause any conflict with other contractors, mechanics or laborers engaged in the construction, maintenance or operation of the Building or the Property by Landlord, Tenant or others.  In the event of any such interference or conflict, Tenant, upon demand of Landlord, shall cause all contractors, mechanics or laborers causing such interference or conflict to leave the Building or the Property immediately.

 

Section 12.07                     Coordination.  Upon Landlord’s demand, Tenant shall from time to time pay Landlord as Additional Rent a fee established by Landlord for any supervisory, administrative and/or coordination services that Landlord may (but shall not be obligated to) perform in connection with any of Tenant’s Changes.

 

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ARTICLE 13
 SIGNS

 

Tenant shall not install, affix or erect any sign, plaque, lettering, banner or pendant on the exterior of the Building, or the Premises without Landlord’s prior written consent and otherwise subject to obtaining all necessary permits and approvals including those required by applicable Laws at Tenant’s expense.  Notwithstanding the foregoing, Landlord hereby approves the relocation of the existing sign from outside the building at 2055 Global Way to the Building (the “Existing Sign”), subject to applicable Laws, permits and approvals and the terms of this Lease.  Any changes or replacements to any signage also require Landlord’s prior written consent, which consent shall not be unreasonably withheld, conditioned or delayed if such replacement is substantially comparable to the Existing Sign, subject to applicable Laws, permits and approvals and the terms of this Lease.  Any request by Tenant for Landlord’s consent hereunder shall include detailed plans and specifications of the proposed signage, which shall include color, illumination, copy, material, etc.  Tenant shall maintain all of its signs in good condition and repair during the Term.  Upon vacating the Premises, Tenant shall remove all of its signs and repair any damage caused by such removal.  Any signs placed by Tenant in violation of this Article may be removed by Landlord at Tenant’s cost upon five (5) business days prior notice and without such removal constituting a breach of this Lease or entitling Tenant to claim damages on account thereof.

 

ARTICLE 14
 INSURANCE AND INDEMNITY

 

Section 14.01                     Tenant’s Insurance.

 

(a)                                 Tenant covenants and agrees that from and after the Commencement Date (or the date of early access or delivery of the Premises to Tenant if earlier), and at all times during the Term of this Lease and any renewal thereof, if applicable, Tenant, at its sole expense, shall obtain and keep in force the following insurance:

 

(i)                                     “All Risk” insurance insuring all Tenant alterations and improvements, including without limitation, Tenant’s Work, Tenant’s interest in the Premises and all property located in the Premises, including furniture, equipment, fittings, installations, fixtures, signs, supplies and all other personal property (collectively, “Tenant’s Property), leasehold improvements and Tenant’s Changes in an amount equal to the full replacement value; it being understood that no lack or inadequacy of insurance by Tenant shall in any event make Landlord subject to any claim by virtue of any theft of or loss or damage to any uninsured or inadequately insured property;

 

(ii)                                  Business Interruption insurance in an amount at least equal to the rental value of the Premises for at least twenty-four (24) months (that is, the aggregate amount of all Rent and other consideration pay able under this Lease by Tenant);

 

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(iii)                               Commercial general liability insurance written on an occurrence basis including personal injury, bodily injury, broad form property damage, contractual liability, with a cross liability clause and a severability of interests clause to cover Tenant’s indemnities set forth herein, and products and completed operations liability, in limits not less than $1,000.000 inclusive per occurrence and $2,000,000 per location annual aggregate, or such higher limits as Landlord may require from time to time during the Term and such insurance policies will be written as primary policies, not contributing with and not supplemental to the coverage that Landlord may carry and will not be subject to a deductible and umbrella liability insurance in excess of the underlying coverage listed in herein, with limits of not less than $10,000,000 per occurrence/$10,000,000 aggregate;

 

(iv)                              Worker’s Compensation and Employer’s Liability insurance, with a waiver of subrogation endorsement, in form and amount as required by applicable Law;

 

(v)                                 in the event Tenant performs any Tenant’s Changes or repairs in the Premises, Builder’s Risk insurance on an “All Risk” basis (including collapse) on a completed value (non-reporting) form for full replacement value covering all work incorporated in the Property and all materials and equipment in or about the Premises;

 

(vi)                              Auto Liability Insurance for owned, hired, or non-owned vehicles with a limit of liability not less than $1,000,000 combined limit for bodily injury and property damage; and

 

(vii)                           any other form or forms of insurance or any changes or endorsements to the insurance required herein, consistent with that of comparable buildings, as Landlord, or any mortgagee or lessor of Landlord, may reasonably require, from time to time, in form or in amount.

 

(b)                                 The insurance required in this Article 14 above shall be subject to the following provisions:

 

(i)                                     Tenant shall have the right to include the insurance required by this Section 14.01 under Tenant’s policies of “blanket insurance,” provided that no other loss which may also be insured by such blanket insurance shall affect the insurance coverages required hereby and further provided that Tenant delivers to Landlord a certificate specifically stating that such coverages apply to Landlord, the Premises, the Building and the Property.

 

(ii)                                  All such policies of insurance or certificates thereof shall name Landlord, Landlord’s manager, and all mortgagees and lessors of Landlord, of which Tenant has been notified, including without limitation, the parties specified on Exhibit B annexed hereto and made a part hereof, as

 

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additional insureds, all as their respective interests may appear.  All insurance required under this Section 14.01 shall be issued by such good and reputable insurance companies acceptable to Landlord and qualified to do and doing business in the State of Kentucky and having a rating not less than A:VIII as rated in the most current copy of A.M. Best’s Insurance Report in a form satisfactory to Landlord.

 

(iii)                               Tenant shall deliver to Landlord certificates with copies of insurance policies, together with satisfactory evidence of payment of premiums for such policies, simultaneously with delivery of execution counterparts of this Lease to Landlord and, with respect to renewals of such policies, not later than five (5) days prior to the end of the expiring term of coverage.  All policies of insurance shall be primary and non-contributory.

 

(iv)                              All policies and certificates shall (A) contain an agreement by the insurers that the policies will not be invalidated as they affect the interests of Landlord and Landlord’s mortgagees by reason of any breach or violation of warranties, representations, declarations or conditions contained in the policies and (B) include a clause or endorsement denying the insurer any rights of subrogation against Landlord.  Tenant shall notify Landlord and any mortgagee or lessor of Landlord in writing, by certified U.S. mail, return receipt requested, not less than thirty (30) days before any material change, reduction in coverage, cancellation, including cancellation for nonpayment of premium, or other termination thereof or change therein.

 

(c)                                  If Tenant shall hire or bring a contractor onto the Premises or the Property to perform any Tenant’s Changes or other work, Tenant agrees to have a written agreement with such contractor whereby it will be required to carry the same insurance coverages for Commercial General Liability, Auto and Worker’s Compensation and Employer’s Liability insurance required pursuant to this Section 14.01.  Tenant shall also require that such contractors insurance meet the additional terms as required of Tenant herein with regards to adding Landlord and Landlord’s manager and mortgagee(s) as additional insureds, maintaining primary and non-contributory coverage, waiving all rights of recovery and subrogation, and making certificates of insurance available as evidence of all policies during the term of their work and in advance of all applicable renewals.

 

(d)                                 Landlord shall not be required to carry insurance of any kind on Tenant’s Changes or Tenant’s Property, and Tenant hereby agrees that Tenant shall have no right to receive any proceeds from any property insurance policies carried by Landlord.

 

(e)                                  Tenant shall not knowingly conduct or permit to be conducted in the Premises any activity, or place any equipment in or about the Premises, the Building or the Property, which will invalidate the insurance coverage in effect or increase the rate of casualty insurance or other insurance on the Premises, the Building or the Property, and Tenant shall comply with all requirements and regulations of Landlord’s casualty and liability insurer.  If any invalidation of coverage or increase in the rate of casualty insurance or other insurance occurs or is threatened by any insurance company due to any act or omission by Tenant, or its agents, employees,

 

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representatives or contractors, such statement or threat shall be conclusive evidence that the increase in such rate is due to such act of Tenant or the contents or equipment in or about the Premises, and as a result thereof, Tenant shall be liable for such increase and such amount shall be considered Additional Rent payable with the next monthly installment of Base Rent due under this Lease.  In no event shall Tenant introduce or permit to be kept on the Premises or brought into the Building any dangerous, noxious, radioactive or explosive substance.

 

(f)                                   Landlord shall take all reasonably prudent measures and safeguards to prevent any injury, loss or damage to persons or property in the event of an incident in the Premises.

 

(g)                                  Landlord shall not be liable for any injury or damage to persons or property resulting from unknown fire, explosion, falling plaster, steam, gas, electricity, electrical or electronic emanations or disturbance, water, rain or snow or leaks from any part of the Building or the Property or from the pipes, or caused by dampness or mold, vandalism, theft, malicious mischief, operations in the construction of any private, public or quasi-public work, any latent defect in the Building or in the Premises, any temporary closing or darkening of any windows of the Premises or any inconvenience or annoyance to Tenant or injury to or interruption of Tenant’s business by reason of any of the events or occurrences referred to above or by any other cause of whatever nature, except to the extent of Landlord’s gross negligence or willful misconduct.  Tenant shall take all reasonably prudent measures and safeguards to prevent any injury, loss or damage to persons or property in the event of an incident in the Premises.

 

(h)                                 Any insurance limits required by this Lease are minimum limits only and not intended to restrict the liability imposed on Tenant or any contractor for work performed under the contract or otherwise.

 

Section 14.02                     Landlord’s Rights.  If Tenant fails to maintain any insurance required under this Lease, or fails to carry any other insurance required by Laws and such failure is not cured by Tenant within five (5) days of written notice thereof by Landlord, Landlord may (but without obligation to do so), and without further notice, procure such insurance and pay the premiums therefor on Tenant’s behalf, in which event Tenant shall pay to Landlord, as Additional Rent, all reasonable costs or expenses incurred by Landlord in connection therewith, together with interest thereon at the Default Rate from the date incurred until the date paid. Tenant shall not use the Premises in a manner which will in any way impair or invalidate any policy of insurance covering the Premises or the Building.  Tenant shall pay upon demand, as Additional Rent, any increase in premiums for insurance Landlord may reasonably elect to carry on the Premises or the Building, resulting from the Permitted Use or Tenant’s manner of use of the Premises.

 

Section 14.03                     Waiver of Subrogation.  Notwithstanding anything to the contrary contained in this Lease, each party shall look first to any insurance in its favor before making any claim against the other party for recovery for loss or damage resulting from fire or other casualty, and to the extent that such insurance is in force and collectible and to the extent permitted by law, Landlord and Tenant each hereby releases and waives all right of recovery against the other or any one claiming through or under each of them by way of subrogation or otherwise.  The foregoing release and waiver shall be in force only if both releasors’ insurance policies contain a clause providing that such a release or waiver shall not invalidate the insurance and both parties

 

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hereto shall obtain such clause, provided that such a clause can be obtained without additional premiums.  The waiver set forth in this Section 14.03 shall be in addition to, and not in substitution for, any other waivers, indemnities or exclusions of liability set forth in this Lease. This Article 14 shall survive the expiration or earlier termination of this Lease.

 

ARTICLE 15
 CASUALTY

 

Section 15.01                     Restoration.

 

(a)                                 If the Premises shall be partially or totally damaged or destroyed by fire or other casualty (a “Casualty”), Tenant shall immediately notify Landlord of the details of the Casualty and, if this Lease is not terminated pursuant to the provisions of this Article, Landlord shall promptly repair and restore the exterior walls and the roof and structural support columns of the Premises and the gas, electric, water and sanitary lines, if any, servicing the Premises up to the point of connection thereto to substantially the condition existing on the Commencement Date (subject to this Article) solely to the extent of the net insurance proceeds therefor paid to Landlord under Landlord’s property damage insurance policy covering the Premises or the Building and otherwise made available by Landlord’s mortgagee, plus the amount of any deductible.  In no event shall Landlord be required to repair or replace any Tenant’s Changes (including Tenant’s Work), or Tenant’s Property.

 

(b)                                 If this Lease is not terminated by Landlord or Tenant pursuant to the provisions of this Article, then promptly after completion of Landlord’s restoration work, Tenant shall, at its sole cost, repair and restore Tenant’s Changes (including Tenant’s Work), and Tenant’s Property and perform all repairs and restoration not required to be performed by Landlord in a manner and to a condition at least equal to that existing prior to the Casualty and recommence the operation of Tenant’s business in the Premises.  All restoration work performed by or on behalf of Tenant shall be deemed to be Tenant’s Changes and shall be performed in accordance with Article 12 herein.  Notwithstanding anything to the contrary contained herein, any restoration work that would be considered a Structural and Exterior Change or is located outside the Premises but is Tenant’s responsibility to restore under this Lease such as any loading dock shall be performed by Landlord at Tenant’s expense, and Tenant shall, within ten (10) days after Landlord’s request therefor, shall deliver the funds necessary to perform such restoration work, as determined by Landlord in its reasonable judgment.

 

Section 15.02                     Termination Rights.

 

(a)                                 If (i) the Premises shall be totally or substantially damaged or rendered wholly or substantially untenantable by a Casualty and Landlord elects not to restore the same, (ii) the Building shall be so damaged that Landlord determines that substantial alteration or reconstruction of the Building or the Premises shall be required, (iii) any mortgagee shall require that the insurance proceeds payable as a result of a casualty be applied to the payment of the mortgage debt or in the event of any material uninsured loss to the Building, then Landlord may terminate this Lease upon written notice to Tenant.

 

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(b)                                 If the Premises are substantially damaged by a Casualty or are rendered substantially untenantable thereby, and if Landlord shall not elect to terminate this Lease pursuant to Section 15.02(a) above, Landlord shall, within seventy-five (75) days following the Casualty, cause its contractor or architect to give written notice to Tenant of the date by which the restoration of the Premises shall be substantially completed (the “Estimated Restoration Date”).  If such notice shall indicate that the Estimated Restoration Date shall not occur within one hundred eighty (180) days following the receipt of the insurance proceeds (the “Restoration Date”), then Tenant may terminate this Lease by giving notice to Landlord not later than fifteen (15) days after receiving such notice and in such event this Lease shall terminate on the date specified in Tenant’s notice for the termination of this Lease (which date shall not be more than thirty (30) days after the giving of such notice).  If Tenant shall not so elect to terminate this Lease, but Landlord shall thereafter fail to substantially complete the restoration of the Premises on or before the Restoration Date (subject to Unavoidable Delays), Tenant may terminate this Lease by giving written notice to Landlord at any time within thirty (30) days following the Restoration Date but prior to Landlord’s actual delivery of the Premises to Tenant in substantially complete condition.  In addition, if the Premises are substantially damaged by a Casualty or are rendered substantially untenantable thereby during the last year of the Term, and balance of the Term remaining after the Estimated Restoration Date is estimated to be less than six (6) months, either Landlord or Tenant may terminate this Lease upon thirty (30) days prior written notice to the other party.

 

Section 15.03                     Rent Abatement.  If the Premises shall be partially or totally damaged by a Casualty, Base Rent and Additional Rent for Taxes and Operating Expenses shall be abated in proportion to that portion of the Premises rendered untenantable by the Casualty and thereafter actually not used by Tenant for the conduct of its business, such abatement to commence on the date of the Casualty and to continue until the earlier date of substantial completion of Landlord’s restoration work described in this Article.  No abatement shall occur if Tenant continues to use the damaged area.  If the Premises or any other portion of the Building is damaged by Casualty resulting from the fault or negligence of, through or under Tenant or any of Tenant’s agents, employees, invitees, assignees or sublessees, the Base Rent and Additional Rent for Taxes and Operating Expenses shall not be abated during the repair of such damage and Tenant shall be liable to Landlord for the cost of the repair and restoration of the Building caused thereby to the extent such costs and expenses are not covered by insurance proceeds.  No damages, compensation or claim shall be payable by Landlord for inconvenience, loss of business, or annoyance arising from or relating to any Casualty or restoration work relating thereto.

 

Section 15.04                     Express Agreement.  The provisions of this Article 15 shall be considered an agreement of the parties governing in the event of any damage to or destruction of the Premises by a Casualty, and any Laws now or hereinafter in effect providing for such a contingency in the absence of an express agreement shall have no application.

 

ARTICLE 16
 EMINENT DOMAIN

 

Section 16.01                     Total and Partial Condemnation If the whole or substantially all of the Premises shall be taken by any public authority under the power of eminent domain or is conveyed in lieu or in settlement thereof (a “Taking”), then the Term shall cease on the date of

 

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the vesting of title, and any Rental paid in advance of such date shall be refunded to Tenant.  If the part of the Premises shall be so acquired or condemned then, except as otherwise expressly provided in this Article, this Lease shall continue in force and effect.  If there is a Taking of only part of the Building or the Premises and if the part so acquired or condemned shall contain more than twenty-five (25%) percent of the total area of the Premises or the Building, as applicable, immediately prior to the Taking, or if by reason of such Taking, Tenant no longer has reasonable means of access to the Premises (other than temporarily), either Landlord or Tenant, may at its option, give the other within sixty (60) days following the date upon which Tenant shall have received notice of vesting of title, a thirty (30) day notice of termination of this Lease.  If any such notice of termination is given, this Lease shall end and expire upon the expiration of said thirty (30) days with the same effect as if the date of expiration of said thirty (30) days were the Expiration Date.

 

Section 16.02                     Abatement; Reward.  If neither party hereto shall terminate this Lease, Tenant shall continue in possession of the portion of the Premises not taken under the same terms and conditions as are herein provided, except that the Base Rent reserved herein and Tenant’s Share shall each be reduced in direct proportion to the amount of the Premises so taken.  All damages awarded for such Taking shall belong to Landlord, whether such damages be awarded as compensation for diminution in value of the leasehold or to the fee of the Premises; provided, however, Tenant may file a separate claim for Tenant’s Property and moving expenses provided that same does not reduce the award which would otherwise be available to Landlord.

 

ARTICLE 17
 ASSIGNMENT AND SUBLETTING

 

Section 17.01                     Assignment or Subletting.  Except as otherwise expressly provided for in this Article, Tenant covenants not to assign or transfer this Lease or to hypothecate or mortgage the same or sublet the Premises or any part thereof or interest therein (whether as a concession, franchise, license, or otherwise) without the prior written consent of Landlord, which consent shall not be unreasonably withheld, conditioned or delayed subject to the express terms of this Article 17.  Neither this Lease nor any interest herein shall be assigned by operation of law or otherwise without the prior written consent of Landlord.  Sales or transfers aggregating fifty percent (50%) or more of the capital or voting stock of Tenant (if Tenant is a nonpublic corporation) or transfers aggregating fifty percent (50%) or more of Tenant’s partnership interests (if Tenant is a partnership) or transfers aggregating fifty percent (50%) or more of the other ownership interests in Tenant (if Tenant shalt be a limited liability company or other legal entity) shall be deemed to be an assignment of this Lease.  Any assignment, subletting, transfer or other act prohibited under this Article shall be null and void and constitute a default under this Lease.

 

Section 17.02                     Tenant’s Notice.  If Tenant shall desire to assign this Lease or sublet all or any part of the Premises or any interest therein (each, a “Transfer”), Tenant shall, at least thirty (30) days prior to the effective date of any proposed Transfer, by written notice (“Tenant’s Notice”), furnish Landlord with (a) the name and address of the proposed subtenant, assignee or other transferee (each, a “Transferee”); (b) a description identifying the space to be sublet, if applicable; (c) the terms, conditions and consideration of the proposed Transfer; (d) the nature and character of the business of the proposed Transferee and its proposed use of the Premises;

 

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(e) current financial information with respect to the proposed Transferee, including, without limitation, a current financial report (audited if available); and (f) any other information as Landlord may reasonably request with respect to the proposed Transferee.

 

Section 17.03                     Landlord’s Option.  Except with respect to the Transfers expressly referred to in Section 17.09 or Section 17.10 hereof, if the proposed Transfer is for all or substantially all of the remaining Term, Tenant’s Notice shall be deemed an offer from Tenant to Landlord whereby Landlord may, at its option, terminate this Lease (the “Recapture Right”) exercisable by delivery of written notice thereof to Tenant within thirty (30) days after Landlord’s receipt of Tenant’s Notice.  If Landlord exercises its Recapture Right, then this Lease shall end on the date that such Transfer was to be effective or commence, as the case may be, and the Rental shall be paid and apportioned to such date.

 

Section 17.04                     Landlord’s Consent.  Upon Tenant’s compliance with the provisions of Section 17.02, if Landlord shall not exercise the Recapture Right, Landlord’s consent to the proposed Transfer shall not be unreasonably withheld, conditioned or delayed, provided and upon condition that:  (a) the proposed Transferee shall have a financial condition reasonably acceptable to Landlord; (b) the proposed Transferee shall have a good business reputation in Landlord’s reasonable opinion; (c) the Transferee proposes to use the Premises for the Permitted Use, or such other use as permitted by Laws that (i) would not violate or conflict with any restrictions or prohibitions then affecting the Building, and (ii) in Landlord’s reasonable opinion would be appropriate for the Building; (d) the proposed Transferee is not an entity who is then a tenant in the Building or an entity with which Landlord is then negotiating or within six (6) months has negotiated for space in the Building; (e) no Event of Default shall be continuing under this Lease either at the time Landlord’s consent to such Transfer is requested or on the effective date of the Transfer; (f) the proposed Transferee shall not be entitled to diplomatic or sovereign immunity and shall be subject to the service of process in, and the jurisdiction of the courts of state in which the Property is located, and (g) the proposed Transferee shall deposit with Landlord such additional security as Landlord may reasonably request, including, without limitation, a guaranty by one or more of the principals of the proposed Transferee.

 

Section 17.05                     Approved Sublettings.  Tenant shall deliver to Landlord a copy of an executed counterpart of each sublease within five (5) days after the of its execution and as a condition to the effectiveness of such sublease, which sublease shall be in form and substance reasonably satisfactory to Landlord and shall contain the following provisions:  (a) the sublease term shall end not later than one (1) day prior to the Expiration Date, (b) the sublease is subject to all of the obligations of Tenant under this Lease, (c) the sublease specifically provides that there shall be no further subletting of the sublet premises or an assignment thereof, and (d) the sublease is subject and subordinate to this Lease and to the matters to which this Lease is or shall be subordinate, and that in the event of a termination, re-entry or dispossession by Landlord under this Lease, Landlord may, at its option, succeed to all of the right, title and interest of Tenant, as sublessor under such sublease, and such subtenant shall, at Landlord’s option, attorn to Landlord pursuant to the then executory provisions of such sublease, provided, however, that Landlord shall not (i) be liable for any previous act or omission of Tenant under such sublease, (ii) be Subject to any offset not expressly set forth in such sublease which theretofore accrued to such subtenant against Tenant, (iii) be liable for any work, alterations, allowances or other concessions required to be performed or provided by Tenant as sublessor under such sublease, or

 

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(iv) be bound by any previous prepayment of more than one month’s fixed rent under such sublease.

 

Section 17.06                     Approved Assignments.  Tenant shall furnish Landlord with a counterpart of each assignment within five (5) days of the date of its execution as a condition to the effectiveness of the assignment, which assignment shall be in form and substance reasonably satisfactory to Landlord.  No assignment shall be binding upon Landlord and no assignee shall take possession of the Premises or any part thereof (including, without limitation, a permitted assignee under Section 17.09, hereof) unless Tenant shall, concurrent with the delivery of an executed counterpart of such assignment, deliver to Landlord an agreement executed by the assignee, in form and substance satisfactory to Landlord and otherwise in appropriate form for recording, whereby such assignee agrees unconditionally to be bound by and to perform all of the obligations of Tenant under this Lease arising after the date of the assignment and further agrees that the provisions of this Article 17 shall continue to be binding upon such assignee with respect to all future assignments and transfers.

 

Section 17.07                     Landlord’s Costs.  Except for Transfers expressly described in Section 17.09, Tenant shall pay to Landlord, as Additional Rent, a $1,500.00 administrative fee for processing Tenant’s request plus a sum equal to Landlord’s reasonable costs incurred in connection with any proposed Transfer, whether or not consented to by Landlord, including, without limitation, reasonable attorneys’ fees and credit checks.  Such Additional Rent shall be payable by Tenant within ten (10) days after Landlord’s demand therefor and as a condition of Landlord’s consent to such Transfer.

 

Section 17.08                     Excess Consideration.  If Landlord consents to a proposed Transfer, fifty percent (50%) of the sums or other economic consideration received by Tenant as a result of such Transfer, whether denominated as rent or otherwise under the sublease or assignment, which exceed, in the aggregate, the total sums which Tenant is obligated to pay Landlord under this Lease on a per square footage basis, plus the commercially reasonable costs incurred by Tenant in connection with such assignment or sublease for brokerage commissions and to pay for work performed by Tenant to prepare the Premises for initial occupancy by such Transferee, shall be payable to Landlord as Additional Rent under this Lease immediately upon such sums becoming payable to Tenant or to any subtenant or other person claiming by, through or under Tenant without affecting or reducing other obligations of Tenant hereunder.  The sums payable under this Section shall be paid to Landlord as and when payable to Tenant by the Transferee, as the case may be.

 

Section 17.09                     Corporate Transfers.  If Tenant is a corporation other than a Public Corporation (as hereinafter defined), the provisions of Sections 17.01 and 17.02 shall apply to a Transfer (by one or more Transfers) of a majority of the stock of Tenant as if such Transfer of a majority of the stock of Tenant were an assignment of this Lease, subject to the express terms of Section 17.10 below.  As used herein, the term “Public Corporation” shall mean a corporation whose stock is listed and traded on a nationally recognized stock exchange.

 

Section 17.10                     Permitted Transfers.  Notwithstanding anything to the contrary contained in this Lease, as long as the named Tenant or a Successor or Related Entity (both as hereinafter defined) of the named Tenant is the Tenant under this Lease, Tenant (or such

 

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Successor or Related Entity, as applicable), may without Landlord’s consent, but upon not less than ten (10) days prior written notice to Landlord, permit a Successor or Related Entity of the named Tenant (or such Successor or Related Entity of the named Tenant, as applicable), to sublet all or a portion of the Premises or to take an assignment of this Lease for any of the purposes permitted to Tenant, subject however to compliance with Tenant’s obligations under this Lease, provided that:  (a) no Event of Default shall have occurred and be continuing, (b) prior to such subletting or assignment, Tenant furnishes Landlord with the name of any such Successor or Related Entity, as the case may be, and in the case of a Transfer to a Related Entity Tenant delivers to Landlord a certification of Tenant, and such other evidence that is reasonably satisfactory to Landlord, that such subtenant or assignee is a Related Entity, (c) the Successor or Related Entity, as the case may be, shall have a tangible net worth at least equal to the greater of: (i) the tangible net worth of Tenant on the date hereof and (ii) the tangible net worth of Tenant (or such Successor or Related Entity of Tenant, as applicable) immediately prior to the Transfer, and Landlord shall have been provided with evidence reasonably satisfactory to Landlord thereof, and (d) the transfer was made for a legitimate independent purpose and, if this Lease is being transferred, not merely for the purpose of transferring this Lease.  No such assignment or sublease shall be effective until a copy of the executed assignment, sublease or other applicable agreement has been delivered to Landlord and Tenant has established to Landlord’s reasonable satisfaction that the applicable provisions of this Article 17 are fully complied with.  Such subletting shall not be deemed to vest in any such Successor or Related Entity, as the case may be, any right or interest in this Lease or the Premises, nor shall any such subletting or assignment relieve, release, impair or discharge any of Tenant’s obligations hereunder.  Notwithstanding anything to the contrary contained herein, neither the Recapture Right nor Tenant’s obligation to share excess consideration with Landlord pursuant to the terms of Section 17.08 hereof shall apply to Transfers pursuant to Section 17.09 and Section 17.10.  As used herein, the following terms shall be defined as follows:

 

(i)                                     “Successor” shall mean (v) any entity into which Tenant is merged, or consolidated or which merges or consolidates into Tenant, (w) any person or entity which acquires all or substantially all of the assets or stock of Tenant, or (x) any person or entity which acquires a controlling interest in the stock or other ownership interests of Tenant, (y) a corporate entity constituting Tenant (other than a Public Corporation) following a Transfer of a majority of the stock or ownership interests of Tenant or (z) any successor pursuant to a Transfer in connection with a public offering of Tenant;

 

(ii)                                  “Related Entity” shall mean any partnerships, professional corporations, limited liability entities or other business entities (but not including governmental entities or authorities) which control, are controlled by, or are under common control with Tenant; and

 

(iii)                               “control” for purposes of this Article 17 shall mean (x) ownership of not less than fifty (50%) percent of all of the voting stock of such corporation or not less than fifty (50%) percent of all of the legal and equitable interest in any other business entities or (y) the ability to direct the major business

 

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decisions of such entity without prior approval of Tenant’s shareholders, partners or other equity holders.

 

Section 17.11                     Tenant Remains Liable. Notwithstanding any Transfer, Tenant shall remain directly and primarily liable for the payment of the Rental due and to become due under this Lease and the terms, provisions, and conditions contained in this Lease on the part of Tenant to be performed from and after the effective date of the Transfer for the balance of the Term.  The consent by Landlord to a Transfer shall not in any way be construed to relieve Tenant from its obligation to obtain the consent in writing of Landlord to any further Transfer.  If Tenant assigns, Transfers, mortgages or encumbers this Lease or any interest therein or sublets all or any portion of the Premises in violation of the provisions of this Article, or if the Premises are occupied by anyone other than Tenant, Landlord may collect rent from any such assignee, sublessee or anyone who claims a right to this Lease or who occupies the Premises, and Landlord may apply the net amount collected to the Rental, and no such collection shall be deemed a waiver by Landlord of any of the terms and conditions contained in this Article nor an acceptance by Landlord of any such assignee, sublessee, claimant or occupant as Tenant, nor be deemed to release Tenant from the further performance of all of Tenant’s obligations under this Lease. Whether or not Landlord consents to any proposed Transfer, Tenant shall indemnify and hold harmless and defend Landlord from and against any Liabilities arising from or relating to any claims that may be made against Landlord by the proposed Transferee or by any brokers or other persons claiming a commission or similar compensation in connection with the proposed assignment or sublease.

 

ARTICLE 18
 EVENTS OF DEFAULT

 

Section 18.01                     Events of Default.  Each of the following events shall be an event of default (“Event of Default”) by Tenant under this Lease whether the same occurs prior to or after occupancy by Tenant of the Premises:

 

(a)                                 Tenant shall fail to pay any installment of Base Rent or any Additional Rent when due and Tenant shalt fail to remedy such default within five (5) days after notice by Landlord to Tenant of such default; or

 

(b)                                 if Tenant shall default in the observance or performance of any term, covenant or condition of this Lease (other than the covenants for the payment of Base Rent or Additional Rent) and Tenant shall fail to remedy such default within thirty (30) days after notice by Landlord to Tenant of such default, or if such default is of such a nature that it cannot be completely remedied within said period of thirty (30) days if Tenant (i) shall not, within thirty (30) days after being given such notice, advise Landlord in writing of Tenant’s intention duly to institute all steps necessary to remedy such situation, (ii) shall not, within thirty (30) days, institute and thereafter diligently prosecute to completion all steps necessary to remedy the same, and (iii) shall not remedy the same within a reasonable time after the date of the giving of said notice by Landlord, nor to exceed sixty (60) days in the aggregate;

 

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(c)                                  or if Tenant vacates, abandons or deserts the Premises (Landlord’s claim that Tenant has vacated, abandoned or deserted the Premises shall not be defeated solely because Tenant may have left all or any part of Tenant’s Property in the Premises); or

 

(d)                                 if Tenant, any parent or affiliate of Tenant, or any guarantor shall default in the performance of any term, covenant or condition on Tenant’s, such parent’s or affiliate’s or such guarantor’s part to be observed or performed under any other tease or license agreement with Landlord, or under any guaranty (as applicable) and such default shall continue beyond any grace period set forth in such other lease, license agreement or guaranty for the remedying of such default; or

 

(e)                                  if Tenant’s interest in this Lease shall devolve or pass to any person or entity whether by operation of law or otherwise except as expressly permitted under Article 17; or

 

(f)                                   any event described under Section 18.02; or

 

(g)                                  any death, disability or adjudicated incompetence of any individual surety or guarantor of this Lease, or any liquidation or dissolution of any corporate, partnership, limited liability company, or other business entity surety or guarantor of this Lease unless Tenant, within ten (10) days after such occurrence, shall provide a substitute guaranty from a substitute guarantor or other adequate security for the payment and performance of Tenant’s obligations, acceptable to Landlord in Landlord’s sole and absolute discretion.

 

Section 18.02                     Bankruptcy.  If the estate created hereby shall be taken in execution or by other process of law, or if Tenant shall be adjudicated insolvent or bankrupt pursuant to the provisions of any state or federal insolvency or bankruptcy law, or if a receiver or trustee of the property of Tenant shall be appointed, or if any assignment shall be made of Tenant’s Property for the benefit of creditors or if a petition shall be filed by or against Tenant seeking to have Tenant adjudicated insolvent or bankrupt pursuant to the provisions of any state or federal insolvency or bankruptcy law and such petition shall not be withdrawn and the proceedings dismissed within ninety (90) days after the filing of the petition, then and in any of such events, Landlord may terminate this Lease by written notice to Tenant; provided, however, if the order of the court creating any of such disabilities shall not be final by reason of the pendency of such proceedings or appeal from such order, or if the petition shall not have been withdrawn or the proceedings dismissed within ninety (90) days after the filing of the petition, then Landlord shall not have the right to terminate this Lease so long as Tenant performs its obligations hereunder.  If, as a matter of law, Landlord has no right on the bankruptcy of Tenant to terminate this Lease, then, if Tenant, as debtor, or its trustee wishes to assume or assign this Lease, in addition to curing or adequately assuring the cure of all defaults existing under this Lease on Tenant’s part on the date of filing of the proceeding (such assurances being defined below), Tenant, as debtor, or the trustee or assignee, must also furnish “adequate assurances” of future performance under this Lease (as defined below).  “Adequate assurance” of curing defaults means the posting with Landlord of a sum in cash sufficient to defray the cost of such a cure.  “Adequate assurance” of future performance under this Lease means posting a deposit equal to three (3) months Base Rent, and all other charges payable by Tenant hereunder, such as the amounts pay able pursuant to Article 8, and, in the case of an assignee, assuring Landlord that the assignee is financially capable of assuming this Lease, and that its use of the Premises will not be detrimental to the

 

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other tenants in the Building, if any, or Landlord.  In reorganization under Chapter 11 of the Bankruptcy Code, the debtor or trustee must assume this Lease or assign it within one hundred twenty (120) days from the filing of the proceeding, or such debtor or trustee shall be deemed to have rejected and terminated this Lease.

 

ARTICLE 19
 REMEDIES

 

Section 19.01                     Landlord’s Remedies.

 

(a)                                 If any Event of Default occurs, Landlord may, at its option and in addition to any and all other rights or remedies provided Landlord in this Lease or at law or equity, immediately, or at any time thereafter, and without demand or notice (except as provided herein):

 

(i)                                     immediately (through its agents or otherwise) re-enter the Premises or any part thereof, without notice, either by summary proceedings or by any other applicable action or proceeding, or, to the extent permitted by applicable Laws, by force or otherwise (without being liable to indictment, prosecution or damages therefor), and repossess the Premises and dispossess Tenant and any other persons from the Premises and remove any of its or their property and effects from the Premises and in no event shall re-entry be deemed an acceptance of surrender of this Lease or a waiver of the Event of Default;

 

(ii)                                  give to Tenant notice of intention to end the Term at the expiration of three (3) days from the date of the giving of such notice, and, in the event such notice is given, this Lease and the Term and estate hereby granted shall terminate upon the expiration of said three (3) days with the same effect as if that day were the expiration of the Term, and Tenant shall then quit and surrender the Premises to Landlord but Tenant shall remain liable as hereinafter set forth; and/or

 

(iii)                               relet the whole or any part or parts of the Premises from time to time, either in the name of Landlord or otherwise, to such tenant or tenants, for such term or terms ending before, on or after the expiration of the Term of this Lease; at such rental and upon such other conditions, which may include concessions and free rent periods, as Landlord, in its sole discretion, may determine.  Except and to the extent expressly provided in Section 19.01(e) below, Landlord shall have no obligation to relet the Premises or any part thereof and shall in no event be liable for refusal or failure to relet the Premises or any part thereof, or, in the event of any such reletting, for refusal or failure to collect any rent due upon any such reletting, and no such refusal or failure shall operate to relieve Tenant of any liability under this Lease or otherwise to affect any such liability.  Landlord, at Landlord’s option, may make such repairs, replacements, alterations, additions, improvements, decorations and other physical changes in and to the Premises as Landlord, in its sole discretion,

 

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considers advisable or necessary in connection with any such reletting, without affecting or relieving Tenant of any liability under this Lease.

 

(b)                                 Notwithstanding any termination of this Lease or termination of Tenant’s rights to possession, whether by summary proceedings or otherwise, Tenant shall pay and be liable for (on the days originally fixed herein for the payment thereof) the installments of all Rental as if this Lease had not been terminated and as if Landlord had not entered and whether the Premises are relet or remain vacant in whole or in part, but if the Premises is relet by Landlord, Tenant shall be entitled to a credit in the net sum of rents received by Landlord in reletting after deduction of all expenses incurred in reletting the Premises, and in collecting such rents.  In no event shall Tenant be (i) entitled to receive any excess of net Rental received by Landlord in any reletting over the sums payable by Tenant to Landlord hereunder or (ii) entitled in any suit for the collection of damages pursuant to this Article to a credit in respect of any net Rental from a reletting except to the extent that such net Rental is actually received by Landlord prior to the commencement of such suit.

 

(c)                                  In the event of a reletting, Landlord may apply the rent therefrom first to the payment of Landlord’s expenses including reasonable attorney’s fees incurred, expenses of reletting, repairs, including, but not limited to, brokerage fees, costs of subdividing, renovation or alteration of the Premises and then to the payment of Rental due from Tenant hereunder, and Tenant shall remain liable for any deficiency.  If the Premises or any part thereof should be relet in combination with other space, then proper apportionment on a square foot area basis shall be made of the rent received from such reletting and of the expenses of reletting.

 

(d)                                 In lieu of the payments to be made to Landlord under subparagraph (b) above, Landlord shall, at its option, be entitled to recover from Tenant as and for liquidated damages with respect to any termination of this Lease, an amount equal to the Base Rent and the Additional Rent reserved hereunder, for the remainder of the Term had this Lease not been terminated.  In the computation of such damages, all such Rental payable hereunder after the date of termination shall be discounted from the date installments of Rental would be due hereunder if this Lease had not been terminated to the date of payment at the rate of one percent (1%) per annum.  In no event shall Tenant be entitled to any rents collected or payable under any reletting, whether or not such rents shall exceed the Base Rent in effect immediately prior to the date upon which this Lease and the term hereof shall have expired and come to an end or the date of re-entry upon the Premises by Landlord, as the case may be.

 

(e)                                  All rights and remedies of Landlord hereunder shall be cumulative and none shall be exclusive of any other rights and remedies allowed by law.  Notwithstanding anything contained in this Lease to the contrary, if this Lease shall terminate due to a Tenant default, Landlord shall use its reasonable efforts to lease the Premises; it being agreed that any such duty to lease the Premises shall be satisfied and Landlord shall be deemed to have used reasonable efforts to lease the Premises by doing the following:  (i) posting a “For Lease” sign on the Premises; (ii) advising Landlord’s leasing agent of the availability of the Premises; or (iii) advising at least one outside commercial brokerage entity of the availability of the Premises; provided, however, in no event shall Landlord be required to (v) give priority to the Premises over other premises owned or managed by Landlord or its affiliates, (w) agree to any lease terms that it deems to be unacceptable, (x) relet the Premises for less than market rent, (y) relet to a

 

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tenant (or for a use) which is not in keeping with the character of the Building, or (z) expend any monies to refurbish, renovate or build-out the space, as may be requested by a prospective tenant, unless Landlord, in its sole discretion, approves both the lease terms and the character and credit of such prospective tenant.  Except as otherwise expressly set forth in this Lease, nothing contained in this Article shall be deemed to limit, prevent or preclude Landlord from recovering from Tenant the maximum amount to which Landlord is entitled as damages by any statute or rule of law or of any sums or damages to which Landlord may be entitled in addition to the damages set forth in this Article.

 

(f)                                   Tenant on its own behalf and on behalf of all persons claiming through or under Tenant, including all creditors, hereby waives any and all rights and privileges, insofar as is permitted by law, which Tenant and all such persons might otherwise have under any present or future law, to (i) the service of any notice of intention to re-enter or to institute legal proceedings to that end, (ii) redeem the Premises, (iii) reenter or repossess the Premises, or (iv) restore the operation of this Lease, after Tenant shall have been dispossessed by a judgment or by warrant of any court or judge, or after any re-entry by Landlord, or after any expiration or termination of this Leave and the term, whether such dispossess, re-entry, expiration or termination shall be by operation of law or pursuant to the provisions of this Lease.  The words “re-enter”, “re-entry” and “re-entered” as used in this Lease shall not be deemed to be restricted in their technical legal meanings.

 

(g)                                  If, on account of any breach or default by, through or under Tenant under this Lease, it shall become necessary or appropriate for Landlord to employ or consult with an attorney or collection agency concerning or to enforce or defend any of Landlord’s rights or remedies arising under this Lease or to collect any sums due from Tenant. Tenant agrees to pay all costs and fees so incurred by Landlord, including, without limitation, reasonable attorneys’ fees and costs.  TENANT EXPRESSLY WAIVES ANY RIGHT TO:  (i) TRIAL BY JURY OR TO HAVE A JURY PARTICIPATE IN RESOLVING ANY DISPUTE, WHETHER SOUNDING IN CONTRACT, TORT OR OTHERWISE, BETWEEN LANDLORD AND TENANT ARISING OUT OF THIS LEASE OR ANY OTHER INSTRUMENT, DOCUMENT, OR AGREEMENT EXECUTED OR DELIVERED IN CONNECTION HEREWITH OR THE TRANSACTIONS RELATED HERETO; AND (ii) SERVICE OF ANY NOTICE REQUIRED BY ANY PRESENT OR FUTURE LAW OR ORDINANCE APPLICABLE TO LANDLORDS OR TENANTS BUT NOT REQUIRED BY THE TERMS OF THIS LEASE.  Any action or claim to enforce or interpret the provisions of this Lease or otherwise arising out of or related to this Lease or to Tenant’s use and occupancy of the Premise, regardless of the theory of relief or recovery and regardless of whether third parties are involved in the action, may only be brought in the State and County where the Premises are located, and Landlord and Tenant irrevocably consent to personal jurisdiction in such State for purposes of any such action or claim.

 

ARTICLE 20
 WAIVER

 

Tenant hereby waives (a) all right and privilege, under, or by mason of, any present or future Laws, to redeem the Premises or to have a continuance of this Lease for the Term after being dispossessed or ejected therefrom by process of law, and (b) any right to interpose any

 

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noncompulsory counterclaim in any summary action of proceeding brought by Landlord in connection with this Lease.  In addition, Tenant and Landlord hereby waive trial by jury in any action, proceeding or counterclaim brought by Landlord against Tenant or tenant against Landlord, as the case may be, with respect to any matter whatsoever in connection with this Lease, or the use or occupancy of the Premises.

 

ARTICLE 21
 INDEMNIFICATION

 

TENANT AGREES TO ASSUME ALL RISK OF LOSS OR DAMAGE TO ANY MACHINERY, EQUIPMENT, FIXTURES, AND OTHER PERSONAL PROPERTY BROUGHT ONTO THE PREMISES FOLLOWING THE DATE HEREOF.  Tenant shall indemnify, defend and hold Landlord and its managing agent and their respective parent companies and/or corporations, their respective controlled, associated, affiliated and subsidiary companies and/or corporations and their respective representatives, shareholders, members, officers, directors, partners, agents, trustees, consultants, servants, employees, successors and assigns (collectively, the “Landlord Indemnitees”) harmless from and against all Liabilities arising in connection with:  (a) any occurrence in, upon, around or at the Premises or the occupancy or use by, through or under Tenant of the Premises or any part thereof, (b) all acts, failures, omissions or negligence of Tenant, its agents, employees, contractors, sublessees and invitees which occur in the Premises, or outside of the Premises but anywhere within or about the Building or the Property or (c) any breach, violation or non-performance of any term, covenant or condition of this Lease on the part of Tenant to be performed and observed hereunder.  Tenant further agrees to indemnify, defend and hold harmless Landlord and the Landlord Indemnitees of and from all Liabilities in connection with or arising from any claims by any persons by reason of loss or life injury to persons or damage to property occasioned by any use, occupancy, act, omission or negligence referred to in the preceding sentence, except to the extent resulting from Landlord’s negligence or willful misconduct.  Tenant shall give prompt notice to Landlord of any occurrence within the Premises, the Building or the Property for which Tenant may be liable to Landlord.  Any indemnity contained in this Lease for the benefit of Landlord shall also be deemed to inure to the benefit of the other Landlord Indemnitees.  For the purpose hereof, the Premises shall include any loading dock or loading platform area allocated to Tenant’s use, if any, and any adjacent sidewalks.  Tenant expressly acknowledges that Landlord shall have no obligation whatsoever to provide any security services with respect to the Property or the Premises.  If Landlord or any Landlord Indemnitee shall, without fault, be made a party to any litigation commenced by or against Tenant, or if Landlord or any such party shall, in its sole discretion, determine that it must intervene in such litigation Nation to protect its interests, then Tenant shall pay all costs, expenses and reasonable attorneys’ fees incurred or paid by such party in connection with such litigation.  The provisions of this Article shall survive the expiration or sooner termination of this Lease.

 

ARTICLE 22
 ESTOPPEL & ATTORNMENT AND SUBORDINATION

 

Section 22.01                     Estoppel Certificates.  Within ten (10) business days after written request from Landlord. Tenant shall, without charge, deliver to Landlord for the benefit of such persons or entities as Landlord may request a duly executed and acknowledged certificate indicating:

 

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(a) that this Lease is unmodified and in full force and effect, or, if there has been any modification, stating any such modification; (b) the Commencement Date and the Expiration Date; (c) that the Rental is paid currently without any off-set or defense thereto; (d) the dates to which the Rental has been paid, and the amount of Rental, if any, paid in advance; (e) whether or not there is then existing any claim of Landlord’s or, to Tenant’s knowledge, of Tenant’s default under this Lease and, if so, the nature thereof; and (f) any other reasonable matters.  Such certificate may be relied upon by Landlord and any of the named parties stated therein and said certificate shall be binding upon Tenant and its successors and assigns.  Tenant irrevocably agrees that if Tenant fails to execute and deliver an estoppel certificate within ten (10) business days as aforesaid, Landlord or Landlord’s beneficiary or agent may execute and deliver such certificate on Tenant’s behalf, and such certificate shall be fully binding on Tenant.

 

Section 22.02                     Attornment.  If any proceedings are brought for the foreclosure of, or in the event of the conveyance by deed in lieu of foreclosure of, or in the event of exercise of the power of sale under, any mortgage made by Landlord covering the Premises, or if Landlord sells, conveys or otherwise transfers its interest in the Property or an portion thereof containing the Premises, or in the event the lessor under any ground or superior lease shall succeed to Landlord’s interests under this Lease, this Lease shall remain in full force and effect and Tenant hereby attorns to, and covenants and agrees to execute an instrument in writing reasonably satisfactory to the new owner whereby Tenant attorns to such successor in interest and recognizes such successor as the Landlord under this Lease.  Upon such attornment, this Lease shall continue in full force and effect as, or as if it were, a direct lease between the successor landlord and Tenant upon all of terms and conditions and covenants as are set forth in this Lease, except that the successor landlord shall not: (a) be liable for any previous act or omissions of Landlord under this Lease; (b) be subject to any offset not provided for in this Lease, which shall have theretofore accrued to Tenant against Landlord; and (c) be bound by any previous modification of this Lease not provided for in this Lease, or by any previous prepayment of more than one month’s Base Rent, unless such modification or prepayment shall have been approved in writing by the lessor of such superior lease or the holder of such mortgage through or by reason of which the successor landlord shall have succeeded to the rights of Landlord under this Lease.

 

Section 22.03                     Notices to Lessors and Mortgagees.  In the event of any act or omission of Landlord which would give Tenant the right, immediately or upon notice, to terminate this Lease, or to claim a partial or total eviction, Tenant shall not exercise such right (a) until it has given written notice of such act or omission to the holder of each mortgage and the lessor of each ground or superior lease whose name and address shall previously have been furnished to Tenant in writing, and (b) until a reasonable period for remedying such act or omission shall have elapsed following the giving of such notice (which reasonable period shall in length be equal to the came less the period to which Landlord would be entitled under this Lease or otherwise, after similar notice, to effect such remedy), provided, however that such period shall run consecutively (and not concurrently) with Landlord’s cure period.

 

Section 22.04                     Subordination.  This Lease shall to subordinate at all times to all covenants, restrictions, easements and encumbrances now or hereafter affecting the Property and to any ground or superior leases or mortgages that are now, or may hereafter be, placed upon the Premises (and any advances made thereunder), and to the interest thereon, and to all

 

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amendments, renewals, replacements and extensions thereof, provided, that the holder of such interest shall agree not to disturb Tenant absent an Event of Default hereunder, provided further, however, that any mortgagee may elect to have this Lease constitute a lien prior to its mortgage, and in the event of such election and upon notification by such mortgagee to Tenant to that effect, this Lease shall be deemed prior in lien to such mortgage, whether this Lease is dated prior to or subsequent to the date of such mortgage.  The aforesaid provisions shall be self-operative and no further instrument of subordination shall be necessary unless required by the holder of any ground or superior lease or mortgage.  Upon the request of Landlord, any ground or superior lessor or any mortgagee, Tenant shall execute whatever instruments may be reasonably required by Landlord, ground or superior lessor or mortgagee to carry out the intent of this Section (provided that such instrument contains the non-disturbance protection referenced above) and, in addition, shall execute and deliver such further instruments containing modifications of this Lease, so long as such modifications do not materially increase Tenant’s monetary obligations under this Lease or otherwise materially and adversely affect Tenant’s rights or privileges under this Lease.  Landlord shall obtain, at Tenant’s sole cost, a subordination, non-disturbance and attornment agreement on Landlord’s existing mortgagee’s standard form, provided that Tenant shall execute same within ten (10) days following receipt thereof.  Tenant shall pay all actual out-of-pocket legal and other costs incurred in connection with a non-disturbance agreement and/or non-disturbance protection promptly following Landlord’s demand therefor.

 

Section 22.05                     Remedies.  Tenant’s failure to execute and deliver any reasonable statements, certificates or instruments necessary or desirable to effectuate the provisions of this Article within ten (10) days after written request so to do by Landlord, shall constitute a material breach of this Lease.

 

ARTICLE 23
 CURING TENANT’S DEFAULTS

 

Landlord may, but shall not be obligated to cure, at any time, after the expiration of any applicable notice or cure periods (or immediately in the event of an emergency, without prior notice to Tenant), any default by Tenant under this Lease; and whenever Landlord so elects, all of Landlord’s Expenses (hereinafter defined) shall be paid by Tenant to Landlord on demand, and shall be recoverable as Additional Rent and shall include, without limitation, reasonable attorneys’ fees and disbursements together with a ten (10%) percent administrative charge on the amount of Landlord’s Expenses so incurred.  “Landlord’s Expenses” shall mean all costs, expenses and disbursements of every kind and nature whatsoever incurred by Landlord in connection with any performance by it for the account of Tenant, including, without limitation, reasonable attorneys’ fees, involved in collecting or endeavoring to collect the Rental or any part thereof not paid when due or enforcing or endeavoring to enforce any rights against Tenant, under or in connection with this Lease, or pursuant to Laws, including without limitation, any cost, reasonable expense and disbursement involved in re-entering the Premises, instituting and prosecuting summary proceedings, as well as bills for any property, material, labor, or services provided, furnished, or rendered, by Landlord or at its instance to Tenant (all of which expenses shall constitute items of Additional Rent) or any insurance policies or service contracts procured or maintained by Landlord to comply with Tenant’s obligations under this Lease.

 

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ARTICLE 24
 ACCESS

 

Upon prior reasonable notice (which may be oral or telephonic), except in cases of emergency, in which case no notice shall be required, Tenant shall permit Landlord or its agents may enter the Premises at all reasonable times to examine the same and to show them to prospective purchasers or mortgagees and to make such repairs, alterations, improvements or additions as Landlord may deem necessary or desirable to the Premises and/or the Building (including, without limitation, such measures as maybe necessary or desirable to cure Tenant’s default as provided for herein) and Landlord shall be allowed to take all material into and upon the Premises that may be required therefor without the same constituting an eviction of Tenant in whole or in part, and the Rental shall not abate while such repairs, alterations, improvements, or additions are being made, by reason of loss or interruption of business of Tenant, or otherwise. Landlord may, at reasonable times upon reasonable written notice during the twelve (12) months prior to the Expiration Date, exhibit the Premises to prospective tenants and post therein “for let” signs visible from the exterior of the Premises which Tenant shall not remove.  Landlord shall use reasonable efforts not to unreasonably interfere with Tenant’s business by virtue of the foregoing.  At Tenant’s request and provided that Tenant shall make a representative available upon request, Landlord shall be accompanied by a representative of Tenant when Landlord or its agents are in the Premises.  Landlord shall be permitted to enter the Premises without notice and at all times in connection with an emergency.

 

ARTICLE 25
 TENANT’S PROPERTY

 

Tenant shall be responsible for, and shall pay, prior to delinquency, any and all taxes, assessments, levies, fees and other governmental charges of every kind or nature (collectively “Charges”) levied or assessed by and municipal, county, state, federal or other taxing or assessing authority upon, against or with respect to (a) the Premises or any leasehold interest therein, or any use thereof, including, without limitation, any use and/or occupancy tax, (b) all of Tenant’s Property, and (c) all or any portion of the Rentals payable by Tenant to Landlord; irrespective of whether any such items described in clauses (a) through (c) above are assessed as Tenant’s real or personal property, and irrespective of whether any of such items are assessed to or against Landlord or Tenant.  If at any time during the Term any of such Charges are not levied and assessed separately and directly to Tenant (for example, if the same are levied or assessed to Landlord, or upon or against the Building and/or the Property), Tenant shall pay to Landlord Tenant’s reasonable share thereof as reasonably determined by Landlord.

 

ARTICLE 26
 HOLDING OVER

 

If this Lease is not renewed or extended or a new lease is not entered into between the parties, and if Tenant shall then hold over after the Expiration Date or earlier termination of this Lease, irrespective of whether or not Landlord accepts Rental from Tenant for a period beyond the Expiration Date, Tenant’s occupancy of the Premises after the Expiration Date shall be upon all the terms set forth in this Lease except Tenant shall pay (a) for the first sixty (60) days of such holdover, an amount equal to one hundred fifty percent (150%) of (i) the applicable Base Rent in

 

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effect immediately before the holdover period began, and (ii) all applicable Additional Rent which would have been applicable had the Term continued through the period of such holding over by Tenant and (b) thereafter, two hundred percent (200%) of (i) the applicable Base Rent in effect immediately before the holdover period began, and (ii) all applicable Additional Rent which would have been applicable had the Term continued through the period of such holding over by Tenant.  If Tenant shall holdover or remain in possession of any portion of the Premises beyond the Expiration Date, whether or not Landlord accepts any Rental for a period beyond the Expiration Date, Tenant shall be subject not only to summary proceeding and all damages related thereto, but also to any damages arising out of any lost opportunities (and/or new leases) by Landlord to relet the Premises (or any part thereof).  Tenant hereby agrees to indemnify, defend and hold Landlord harmless against any liability resulting from delay by Tenant in surrendering the Premises upon the expiration or sooner termination of this Lease, including, without limitation, any claims made by any succeeding tenant or prospective tenant founded upon such delay.  All damages to Landlord by reason of such holding over by Tenant may be the subject of a separate action and need not be asserted by Landlord in any summary proceedings against Tenant.  The terms of this Article shall survive the expiration or earlier termination of this Lease.

 

ARTICLE 27
 SECURITY DEPOSIT

 

Section 27.01                     Deposit.  As security for the full and faithful performance by Tenant of all of the terms, covenants and conditions of this Lease, Tenant shall pay to Landlord simultaneously with Tenant’s execution of this Lease the Security Deposit by bank or certified check.  Landlord shall not be required to keep the Security Deposit separate from its general funds and Tenant shall not be entitled to any interest thereon.  Landlord shall not be obligated to apply the Security Deposit to Rental in arrears or damages for Tenant’s default, although Landlord may so apply the Security Deposit, at its option.  The Security Deposit, if not applied toward the payment of Rental in arrears or toward the payment of damages suffered by Landlord by reason of Tenant’s default, shall be returned to Tenant without interest, except as required by Laws, when this Lease is terminated or as otherwise provided in this Lease once Tenant has vacated the Premises and delivered possession thereof to Landlord in accordance with the terms and provisions hereof.  If Landlord repossesses the Premises because of Tenant’s default, Landlord may apply the Security Deposit to damages suffered to the date of such repossession and may apply the Security Deposit to such damages as may be suffered or shall accrue thereafter by reason of Tenant’s default.  If Landlord applies the Security Deposit in whole or in part, Tenant shall, upon demand by Landlord, deposit sufficient funds to maintain the Security Deposit in an amount equal to $122,500.00.  Failure of Tenant to deposit such additional security shall entitle Landlord to avail itself of the remedies provided in this Lease for nonpayment of Rental by Tenant.  Tenant covenants that it will not assign or encumber or attempt to assign or encumber any Security Deposit hereunder and that neither Landlord nor its successors or assigns shall be bound by any such assignment, encumbrance, attempted assignment or attempted encumbrance.

 

Section 27.02                     Letter of Credit.  In lieu of a cash deposit by Tenant for the Security Deposit, Tenant may deposit with Landlord a clean, irrevocable and unconditional letter of credit issued by and drawn upon any commercial bank reasonably acceptable to Landlord with offices for banking purposes in the City of New York and having a net worth of not less than One

 

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Billion ($1,000,000,000.00) Dollars, which letter of credit shall be in the form annexed hereto as Exhibit C (the “Letter of Credit”) and in the amount of the Security Deposit set forth in Article 1 hereof.  In addition, the Letter of Credit shall provide that it is assignable by Landlord without charge and shall either (i) expire on the date which is sixty (60) days after the expiration or earlier termination of this Lease (the “LC Date”) or (ii) be automatically self-renewing until the LC Date.  At any time that Tenant is in default under this Lease beyond any applicable notice and grace period, Landlord shall have the right to draw down the entire Letter of Credit in whole or in part as necessary to apply the proceeds thereof in accordance with the provisions of this Article 27.  Landlord shall also have the right to draw down the Letter of Credit in the event that Landlord fails to receive a replacement Letter of Credit on or prior to the thirtieth (30th) day preceding the expiration date thereof or if Tenant holds over in the Premises without the consent of Landlord after the expiration or earlier termination of this Lease.  If Landlord shall have drawn down the Letter of Credit and applied all or a portion thereof in accordance with the terms of this Article 27, then Tenant shall deposit with Landlord, within three (3) days after notice from Landlord, a sufficient amount of cash to bring the balance of the cash held by Landlord under this Article 27 to the amount of the Security Deposit.  The failure by Tenant to deposit such additional amount within the foregoing time period shall be deemed an Event of Default under this Lease.

 

ARTICLE 28
 LANDLORD’S LIABILITY

 

Section 28.01                     Transfer of Landlord’s Interest.  In the event of any sale, assignment or transfer(s) of Landlord’s interest in the Property, the Building or the Premises, the transferor shall be automatically relieved of all obligations on the part of Landlord accruing from and after the date of such transfer, provided that (a) the interest of the transferor, as Landlord, in any funds then in the hands of Landlord in which Tenant has an interest shall be turned over, subject to such interest, to the then transferee; and (b) notice of such sale or other transfer shall be delivered to Tenant if required by Laws.  No lessor under a superior or ground lease, holder of a mortgage or beneficiary of a deed of trust to which this Lease is or may be subordinate, shall be responsible for the Security Deposit, unless such lessor, mortgagee or beneficiary of such deed of trust shall have actually received the Security Deposit.

 

Section 28.02                     Limitation of Landlord’s Liability.  Notwithstanding anything to the contrary provided in this Lease, there shall be absolutely no personal liability on the part of Landlord or any officer, director, shareholder, partner, member, employee or agent of Landlord, whether disclosed or undisclosed (or any successor corporate landlord or any partner of any limited or general partnership which may become Landlord or any individual or other entity), with respect to any of the terms, covenants and conditions of this Lease, and Tenant shall look solely to Landlord’s interest in the Building for the satisfaction of each and every remedy of Tenant in the event of a breach or default by Landlord of any of the terms, covenants and conditions of this Lease, such exculpation of personal liability to be absolute and without any exception whatsoever.  No other property or assets of Landlord, any successor to Landlord, or any officer, director, shareholder, partner, member, employee or agent of Landlord or any successor to Landlord, shall be subject to judgment, levy, execution or other enforcement procedure for the satisfaction of Tenant’s remedies under or with respect to this Lease or the use

 

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or occupancy of the Premises.  Notwithstanding anything to the contrary contained in this Lease, in no event shall Landlord be liable for consequential damages.

 

ARTICLE 29
 BROKER

 

Each party represents and warrants to the other that it has dealt with no broker or agent in connection with this Lease other than the Broker and agrees to indemnify, hold harmless and defend the other party from and against any and all Liabilities arising from or relating to a breach of the foregoing representation and warranty.  Landlord shall pay any commission due the Broker pursuant to separate agreement.

 

ARTICLE 30
 NOTICES

 

Unless specifically stated to the contrary in this Lease, any notice, demand, request or other instrument which may be or is required to be given by Tenant or Landlord under this Lease or by Laws (“Notices”) shall be in writing and sent by nationally recognized overnight delivery service or by United States certified mail, return receipt requested, postage prepaid, and shall be deemed to have been given, if sent by national overnight delivery service, as of the first (1st) weekday upon which delivery is first attempted and, if sent by United States certified mail, on the date of delivery or refusal.  Notices given in accordance with this Section shall be addressed to Landlord and Tenant at their respective addresses set forth in Section 1.01 herein together with copies to the parties identified in said Section, as appropriate.  Each party may designate another notice address by notice given in accordance with this Section.  Notices may be given by the attorneys for the respective parties.

 

ARTICLE 31
 MISCELLANEOUS

 

Section 31.01                     Successors and Assigns.  All rights and liabilities given to or imposed under this Lease upon the respective parties hereto shall extend to and bind the several respective heirs, executors, administrators, successors, and permitted assigns of such parties, and if there shall be more than one Tenant, they shall all be bound jointly and severally by the terms, covenants and conditions of this Lease.

 

Section 31.02                     Rules and Regulations.  Tenant shall comply with and observe all reasonable rules and regulations established by Landlord from time to time for the Property (collectively, the “Rules”), including, without limitation, the Rules currently in effect at the Property and attached hereto and made a part hereof as Exhibit D.  Tenant’s failure to keep and observe the Rules shall constitute a breach of the terms of this Lease in the same manner as if such Rules were contained herein as covenants.  In the case of any conflict between the terms and conditions of the Rules and the terms and conditions of this Lease, the terms and conditions of this Lease shall be controlling.

 

Section 31.03                     Joint and Several Liability.  If more than one person or entity is executing, this Lease as Tenant, each such person or entity shall be jointly and severally liable for the obligations of Tenant under this Lease.

 

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Section 31.04                     Consent.  In any instance where the obtaining of Landlord’s consent or approval shall be required under this Lease, the failure of Landlord to give such consent or approval shall not render Landlord liable for damages, and Tenant’s sole remedy in such event shall be an action for specific performance or injunction, and such remedy shall be available only in those cases where Landlord has agreed not to unreasonably withhold its consent or where, as a matter of law Landlord may not unreasonably withhold its consent.

 

Section 31.05                     Covenant of Quiet Enjoyment.  Upon payment by Tenant of the Rental and upon the observance and performance of all of the covenants, terms and conditions on Tenant’s part to be observed and performed under this Lease, Tenant shall peaceably and quietly hold and enjoy the Premises for the Term, without hindrance or interruption by Landlord or any other person or persons lawfully or equitably claiming by, through or under Landlord, subject, nevertheless, to the terms and conditions of this Lease, and any mortgage, deed of trust or lease to which this Lease is subordinate.

 

Section 31.06                     Waiver.  The subsequent acceptance of Rental by Landlord shall not be deemed to be a waiver of any preceding breach by Tenant of any of the terms, covenants or conditions of this Lease, other than the failure of Tenant to pay the particular Rental so accepted, regardless of Landlord’s knowledge of such preceding breach at the time of acceptance of such Rental.  In particular, but without limitation, if Tenant assigns or transfers its interest in this Lease contrary to the terms of this Lease, any acceptance by Landlord of such assignee’s or transferee’s payment shall not be deemed to be a waiver of the restrictions set forth in this Lease.  One or more waivers of a breach of any covenant or condition shall not be construed as a waiver of a subsequent breach of the same covenant or condition, and the consent to or approval of any act requiring consent or approval shall not be deemed to render unnecessary the obtaining of consent to or approval of any subsequent similar act.  Landlord’s failure to insist upon the strict performance of any of the terms, covenants or conditions contained in this Lease shall not be deemed a waiver of any rights or remedies that Landlord may have and shall not be deemed a waiver of any subsequent breach or default in the performance of the terms, covenants or conditions herein contained.  No breach by Tenant of a covenant or condition of this Lease shall be deemed to have been waived by Landlord unless such waiver is in writing and signed by Landlord.  No act or thing done by Landlord or Landlord’s agents shall be deemed an acceptance of surrender of the Premises and no agreement to accept such surrender shall be valid unless in writing signed by Landlord.

 

Section 31.07                     Interpretations.  Nothing contained herein shall be deemed or construed by the parties hereto, nor by any third party, as creating the relationship of principal and agent or of partnership or of joint venture between the parties hereto, and neither the method of computation of Rental, nor any other provision contained herein, nor any acts of the parties hereto shall be deemed to create any relationship other than the relationship of Landlord and Tenant.  Whenever herein the singular number is used, the same shall include the plural, and the masculine gender shall include the feminine and neuter genders.

 

Section 31.08                     Unavoidable Delays.  “Unavoidable Delays” shall mean delays caused by force majeure events which shall include, but not be limited to, strikes, lockouts, acts of God, inability to obtain labor or materials, laws, statutes, decrees, rules, orders, ordinances, directions, regulations; restrictions and requirements of federal, state, county and municipal authorities,

 

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unusually severe weather conditions, litigation that results in an injunction prohibiting or otherwise delaying the continuity of construction or other acts related thereto, commotion caused by civil or foreign event, or war, fire, unavoidable casualty or any other cause, whether similar or dissimilar, in each case, beyond the reasonable control of either Landlord or Tenant, but shall not, in any event, include (a) unavailability of funds or (b) any monetary obligation that can be satisfied by the payment of a fixed sum.

 

Section 31.09                     Captions and Section Numbers.  The captions, section numbers, article numbers, and index appearing in this Lease are inserted only as a matter of convenience and in no way define, limit, construe, or describe the scope or intent of such sections or articles of this Lease, nor in any way affect this Lease.

 

Section 31.10                     Recording.  Tenant shall not record this Lease or any short form memorandum thereof without the prior written consent of Landlord, which consent Landlord may grant or withhold in its sole discretion.

 

Section 31.11                     Furnishing of Financial Statements.  Upon Landlord’s request in connection with a sale, refinancing or other capital event, Tenant shall promptly furnish Landlord, from time to time, but not more frequently than once in any twelve (12) month period, financial statements reflecting Tenant’s current financial condition.  Tenant hereby consents to Landlord conducting a credit check against Tenant (and any guarantor) from time to time as Landlord deems necessary or reasonably advisable.

 

Section 31.12                     Accord and Satisfaction.  Payment by Tenant or receipt by Landlord of a lesser amount than the Rental may, at Landlord’s sole option, be deemed to be on account of the earliest due Rental or deemed to be on account of Rental owing for the current period only, notwithstanding any instructions by or on behalf of Tenant to the contrary, which instructions shall be null and void, and no endorsement or statement on any check or any letter accompanying any check or payment as Rental shall be deemed an accord and satisfaction except with Landlord’s written consent, and Landlord shall accept such check or payment without prejudice to Landlord’s right to recover the balance of such Rental or pursue any other remedy in this Lease or at law or in equity against Tenant unless otherwise agreed in writing.

 

Section 31.13                     Execution of Lease; No Option.  The submission of this Lease to Tenant shall be for examination purposes only, and does not and shall not constitute a reservation of or option for Tenant to lease, or otherwise create any interest of Tenant in the Premises or any other premises situated in the Building.  The return to Landlord of Tenant-executed copies of this Lease shall not be binding upon Landlord, notwithstanding any preparation or anticipatory reliance or expenditures by Tenant or any time interval, until Landlord has in fact executed and actually delivered a fully-executed copy of this Lease to Tenant.

 

Section 31.14                     Governing Law.  This Lease shall be governed by and construed in accordance with the laws of the state of in which the Property is located.  If any provision of this Lease or the application thereof to any person or circumstances shall, to any extent, be invalid or unenforceable, the remainder of this Lease shall not be affected thereby and each remaining provision of the Lease shall be valid and enforceable to the fullest extent permitted by Law.

 

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Section 31.15                     Certain Rules of Construction.  Time is of the essence in this Lease.  Landlord and Tenant have had substantial experience with the subject matter of this Lease and have each fully participated in the negotiation and drafting of this Lease.  Accordingly, this Lease shall be construed without regard to the rule that ambiguities in a document are to be construed against the drafter.

 

Section 31.16                     Authority.  Tenant represents and warrants to Landlord that (a) it is a duly formed and validly existing limited liability company and is qualified to conduct business in the state in which the Property is located, (b) its franchise, corporate and/or all other taxes to both the state of formation and the state in which the Property is located have been paid to date, (c) it has the full right, power and authority to enter into and perform the obligations, terms and covenants contained in this Lease on the part of Tenant, and (d) each person signing this Lease is authorized to do so and to bind Tenant to the terms of this Lease.

 

Section 31.17                     Limitation of Warranties.  LANDLORD AND TENANT EXPRESSLY AGREE THAT THERE ARE AND SHALL BE NO IMPLIED WARRANTIES OF MERCHANTABILITY, HABITABILITY, SUITABILITY, FITNESS FOR A PARTICULAR PURPOSE OR OF ANY OTHER KIND A RISING OUT OF THIS LEASE, AND THERE ARE NO WARRANTIES WHICH EXTEND BEYOND THOSE EXPRESSLY SET FORTH IN THIS LEASE.  WITHOUT LIMITING THE GENERALITY OF THE FOREGOING, TENANT EXPRESSLY ACKNOWLEDGES THAT LANDLORD HAS MADE NO WARRANTIES OR REPRESENTATIONS CONCERNING ANY HAZARDOUS MATERIALS OR OTHER ENVIRONMENTAL MATTERS AFFECTING ANY PART OF THE PROPERTY AND LANDLORD HEREBY EXPRESSLY DISCLAIMS AND TENANT WAIVES ANY EXPRESS OR IMPLIED WARRANTIES WITH RESPECT TO ANY SUCH MATTERS.

 

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ARTICLE 32
 CONTINGENCY

 

This Lease and the transactions contemplated herein are subject to and conditioned upon the mutual execution and unconditional delivery of a surrender agreement (the “Surrender Agreement”) with respect to that certain Lease Agreement dated as of June 30, 2011 between Landlord, as landlord, and Tenant, formerly known as CSN Stores, LLC, as tenant, covering a portion of Building E at 2055 Global Way, Hebron, Kentucky.  In the event the Surrender Agreement shall fail of execution or unconditional delivery on or prior to the Commencement Date for any reason whatsoever, including, but not limited to, Landlord’s arbitrary refusal to enter into the Surrender Agreement or to agree to any term or condition thereof, upon Landlord’s or Tenant’s notice to the other, this Lease shall be deemed null and void and of no further force or effect.

 

IN WITNESS WHEREOF, Landlord and Tenant have duly executed this Lease as of the date first above written.

 

	
 
    	
Landlord:
    
	
 
    	
 
    
	
 
    	
DISTRIBUTION   I PATENT TENANT LLC,
    
	
 
    	
a   Delaware limited liability company
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/Priyanka   Garg
    
	
 
    	
Name:
    	
Priyanka   Garg
    
	
 
    	
Title:
    	
Sr.   Vice President
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
Tenant:
    
	
 
    	
 
    
	
 
    	
WAYFAIR   LLC,
    
	
 
    	
a   Delaware limited liability company
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/   Nicholas Malone
    
	
 
    	
Name:
    	
Nicholas   Malone
    
	
 
    	
Title:
    	
CAO   and Treasurer
    

 

45

 

Exhibit A

 

SITE PLAN

 

 

 

 

Exhibit B

 

INSURANCE SCHEDULE

 

CERTIFICATE HOLDER

 

Distribution I Patent Owner LLC

c/o Colliers International Real Estate Management Services (VA), LLC

625 Eye Street NW, Suite 700

Washington, DC 20006

 

ADDITIONAL INSUREDS

 

Distribution I Patent Tenant LLC

c/o Colliers International Real Estate Management Services (VA), LLC

625 Eye Street NW, Suite 700

Washington, DC 20006

 

CFC Transactions, as

sub-servicer c/o Cohen Financial

2 LaSalle Street

Chicago, Illinois 60606

 

Cassidy Turley Commercial Real Estate Services, Inc.

221 E. 4th Street

26th Floor

Cincinnati, OH 45202

 

Colliers International Real Estate Management Services (VA), LLC

625 Eye Street NW, Suite 700

Washington, DC 20006

 

 

Exhibit C

 

FORM LETTER OF CREDIT

 

 

DRAFT

 

IRREVOCABLE STANDBY LETTER OF CREDIT

 

NO. xxxx

 

 

	
BENEFICIARY:
    	
APPLICANT:
    
	
 
    	
 
    
	
Distribution I Patent Tenant LLC
    	
Wayfair LLC
    
	
c/o Interventure Advisors LP
    	
177 Huntington Avenue
    
	
810 Seventh Avenue, Suite 3601
    	
Suite 6000
    
	
New York, New York 10019
    	
Boston, MA 02115
    
	
 
    
	
Issue Date:
    
	
Expiration Date:   January 1, 2015 (at least one year from Lease Commencement Date)
    
	
Final Expiration Date:   May 31, 2019 (at least 60 days after Expiration Date)
    

 

Ladies and Gentlemen:

 

We hereby issue in your favor our irrevocable letter of credit No. XXX for account of Wayfair LLC (“Applicant”), for a sum not to exceed U.S. $122,500.00 in the aggregate effective immediately available against presentation of this original standby letter of credit and any amendments along with your draft(s) drawn on us at sight in the form of Annex 1 hereto, with blanks completed and signed by your authorized signatory.

 

Partial draws are authorized from time to time under this Letter of Credit. If your demand represents a partial drawing hereunder, we will endorse the original Letter of Credit to show the amount paid by us and the date of payment and return same to you for possible future claims.  If, however, your demand represents a full drawing or if such drawing is presented on the day of the relevant expiration date hereof, we will hold the original for our files and remove same from circulation.

 

This Letter of Credit is transferable in its entirety one or more times to any transferee or successor under the Lease that you may from time to time designate without any fee to Beneficiary.  We shall not recognize any transfer of this Letter of Credit until an executed transfer form in the form of Annex 2 hereto, completed and signed by your authorized signatory, is delivered to us, along with the return of the original standby letter of credit and all amendments, if any, to our office located at 3 Terry Drive, Suite 102, Mail Code: 70-106-IT1, Newtown, PA 18940, attn.:  Standby Letter of Credit Department.  Upon our receipt of the foregoing, we will transfer our Letter of Credit to your transferee or assignee.  Our transfer charges of 1⁄4 of 1%, minimum $250.00 are solely for the account of Applicant, and Transferor’s failure to make such payment shall not prevent the transfer of this Letter of Credit.

 

Pursuant to the laws of the U.S. and regulations of the United States Treasury, Department of Commerce and Office of Foreign Assets Control, request to transfer this Letter of Credit to any party in violation of such laws and/or regulations is strictly prohibited and will not be honored.

 

 

This Letter of Credit is valid for presentation at our offices located at 3 Terry Drive, Suite 102, Mail Code: 70-106-1T1, Newtown, PA 18940, attn.: Standby Letter of Credit Department via nationally-recognized overnight courier service on or before the close of business on (Expiry Date) or by personal delivery to our New York Office located at 551 Fifth Avenue, 25th Floor, New York, NY 10176 at which time any draw documents will be forwarded by us to our Newtown office for examination at the address above stated.

 

It is a condition of this Letter of Credit that it shall be automatically extended without amendment for a period of one year from the current or any future expiration date, unless at least sixty (60) days prior to the then current expiration date, we shall notify you in writing by registered or certified mail return receipt requested, or nationally-recognized overnight courier service at the above listed address (or such other address of which you notify us in writing from time to time) of our intention not to renew this Letter of Credit for such additional period. Upon your receipt of such notice, you may draw drafts on us at sight for an amount not to exceed the remaining balance in this Irrevocable Letter of Credit within the then applicable expiry date.

 

Except as expressly stated herein, payment under this Letter of Credit is not subject to any conditions or qualifications.

 

This Letter of Credit is governed by and construed in accordance with the laws of the State of New York and, except as otherwise expressly stated herein, subject to the International Standby Practices, ICC Publication No. 590 and in the event of any conflict, the laws of the State of New York will control without regard to principles of conflict of law.

 

We hereby agree with you and each drawer, endorser, and bona fide holder of drafts drawn under this Letter of Credit that that drafts drawn under and in compliance with the terms of this Letter of Credit shall be duly honored on presentation to us as provided herein.

 

	
SANTANDER   BANK, N.A., Issuing Bank
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
Authorized   Signature
    	
 
    
	
Name   and Title
    	
 
    

 

 

2

 

ANNEX 1

 

LETTER OF CREDIT

 

SIGHT DRAFT

 

	
 
    	
[Date                            ]
    

 

FOR VALUE RECEIVED

 

PAY ON DEMAND $                                                                   Dollars at sight to Account of [Insert Name of Issuer] Irrevocable Letter of Credit No.

 

                                                                                                                dated                            

 

To: [Insert name and address of Issuer]

 

 

	
 
    	
[Name   of Beneficiary]
    
	
 
    	
 
    
	
 
    	
By:
    	
 
    

 

 

ANNEX 1

 

LETTER OF CREDIT

 

	
 
    	
[Date                            ]
    

 

[Insert Name and Address of Issuer]

 

Attention:

 

Re:                             Letter of Credit No      .

 

Gentlemen:

 

For value received, the undersigned beneficiary hereby irrevocably transfers to:

 

(Name of Transferee)

(Address)

 

all rights of the undersigned beneficiary to draw under the above Letter of Credit in its entirety.

 

By this transfer, all rights of the undersigned beneficiary in such Letter of Credit are transferred to the transferee and the transferee shall have the sole rights as beneficiary thereof, including sole rights relating to any amendments, whether now existing or hereafter made. All amendments are to be advised directly to the transferee without necessity of any consent of or notice to the undersigned beneficiary.

 

	
 
    	
Yours   very truly,
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
SIGNATURE   AUTHENTICATED
    	
 
    	
[Insert   Name of Beneficiary]
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
(Bank)
    	
 
    	
Signature   of Beneficiary
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
(Authorized   Signature)
    	
 
    	
 
    

 

 

Exhibit D

 

RULES AND REGULATIONS

 

1.                                      The following rules and regulations shall apply to the Premises, the Building, the Property, the parking areas associated therewith, and the appurtenances thereto:

 

2.                                      Sidewalks, doorways, vestibules, halls, stairways, loading dock areas and associated overhead doors, and other similar areas (each, to the extent applicable to the Property) shall not be obstructed by tenants or used by any tenant for purposes other than ingress and egress to and from their respective leased premises and for going from one to another part of the Building.

 

3.                                      Plumbing (including but not limited to outside drains and sump pumps), fixtures and appliances shall be used only for the purposes for which designed, and no sweepings, rubbish, rags or other unsuitable material shall be thrown or deposited therein.  Damage resulting to any such fixtures or appliances from misuse by a tenant or its agents, employees or invitees, shall be paid by such tenant.

 

4.                                      Except as consented to in writing by Landlord or as expressly set forth in the Lease or in accordance with Tenant’s building standard improvements, no draperies, curtains, blinds, shades, screens or other devices shall be hung at or used in connection with any window or exterior door or doors of the Premises.  No awning shall be permitted on any part of the Premises.  Tenant shall not place anything against or near glass partitions or doors, or windows which might appear unsightly from outside the Premises.

 

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

 

6.                                      Tenant shall not make or permit any vibration or improper, objectionable or unpleasant noises or odors in the Building.

 

7.                                      Landlord will not be responsible for lost or stolen personal property, money or jewelry from tenant’s leased premises or public or common areas regardless of whether such loss occurs when the area is locked against entry or not, except to the extent of Landlord’s willful misconduct.

 

8.                                      Tenant shall not conduct any activity on or about the Property, the Premises or the Building which will draw pickets, demonstrators, or the like.

 

9.                                      All vehicles are to be currently licensed, in good operating condition, parked for business purposes having to do with Tenant’s business operated in the Premises, parked within designated parking spaces, one vehicle to each space.  No vehicle shall be parked as a “billboard” vehicle in the parking lot.  Any vehicle parked improperly may be towed away.  Tenant, Tenant’s agents,

 

 

employees, vendors and customers who do not operate or park their vehicles as required shall subject the vehicle to being towed at the expense of the owner or driver.

 

10.                               No birds or animals (other than seeing-eye dogs or other service animals as described under the Americans with Disabilities Act) shall be brought into or kept in, on or about any tenant’s premises.  No portion of any tenant’s premises may at any time be used or occupied as sleeping or lodging quarters.

 

11.                               Unless otherwise agreed in writing by Landlord, each tenant must contract for the removal of trash and other debris from its premises and provide a dumpster or other suitable trash receptacle adjacent to its premises for removal of trash; no trash or other debris may be left outside any tenant’s receptacle.

 

12.                               Tenant shall not permit storage outside the Premises or dumping of waste or refuse or permit any harmful materials to be placed in any drainage system or sanitary system in or about the Premises.

 

13.                               Tenant shall not install or operate on the Premises any machinery or mechanical devices of a nature not directly related to Tenant’s ordinary use of the Premises, except to the extent reasonably required for Tenant’s construction of alterations and improvements.

 

14.                               Tenant will not permit any Tenant Party to bring onto the Property any handgun, firearm or other weapons of any kind or illegal drugs.

 

2

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