Exhibit 10.2
John Hancock Tower
200 Clarendon
Street
Boston, Massachusetts
02117
Eighteenth Amendment to
Lease
This Eighteenth Amendment to Lease
(this “ Amendment ”) is made as of this 29th day
of July, 2008 (the “ Effective Date ”), by and
between (i) 100 & 200 Clarendon LLC , a
Delaware limited liability company (“ Landlord
”), and (ii) CRA International, Inc. , a
Massachusetts corporation, formerly known as Charles River
Associates Incorporated (“ Tenant ”).
RECITALS
A.
Landlord and Tenant are parties to
that certain Lease dated as of March 1, 1978 (the “
Original Lease ”) as amended by that certain First
Amendment of Lease dated as of December 16, 1981 (the “
First Amendment ”), as further amended by that certain
Second Amendment of Lease dated as of February 24, 1984 (the
“ Second Amendment ”), as further amended by
that certain Third Amendment of Lease dated as of February 28,
1985 (the “ Third Amendment ”), as further
amended by that certain Fourth Amendment of Lease dated as of
February 7, 1986 (the “ Fourth Amendment
”), as further amended by that certain Fifth Amendment of
Lease dated as of February 13, 1987 (the “ Fifth
Amendment ”), as further amended by that certain Sixth
Amendment of Lease dated as of August 24, 1987 (the “
Sixth Amendment ”), as further amended by that certain
Seventh Amendment of Lease dated as of January 31, 1990 (the
“ Seventh Amendment ”), as further amended by
that certain Eighth Amendment of Lease dated as of
December 31, 1991 (the “ Eighth Amendmen
t”), as further amended by that certain Ninth Amendment of
Lease dated as of September 2, 1992 (“ Ninth
Amendment ”), as further amended by that certain Tenth
Amendment of Lease dated as of August 24, 1995 (the “
Tenth Amendment ”), as further amended by that certain
Eleventh Amendment of Lease dated as of November 25, 1996 (the
“ Eleventh Amendment ”), as further amended by
that certain Twelfth Amendment of Lease dated as of March 19,
1998 (the “ Twelfth Amendment ”), as further
amended by that certain Thirteenth Amendment of Lease dated as of
August 13, 1999 (the “ Thirteenth Amendment
”), as further amended by that certain Fourteenth Amendment
of Lease dated as of April 20, 2000 (the “ Fourteenth
Amendment ”), as further amended by that certain
Fifteenth Amendment of Lease dated as of June 7, 2002 (the
“ Fifteenth Amendment ”), as further amended by
that certain Sixteenth Amendment of Lease dated as of
April 23, 2004 (the “ Sixteenth Amendment
”), and as further amended by that certain Seventeenth
Amendment of Lease dated as of February 6, 2008 (the “
Seventeenth Amendment ”) (the Original Lease, together
with the First Amendment, Second Amendment Third Amendment, Fourth
Amendment, Fifth Amendment, Sixth Amendment, Seventh Amendment,
Eighth Amendment, Ninth Amendment, Tenth Amendment, Eleventh
Amendment, Twelfth Amendment, Thirteenth Amendment, Fourteenth
Amendment, Fifteenth Amendment, Sixteenth Amendment, and
Seventeenth Amendment, the “ Existing Lease ”),
pursuant to which Tenant leases approximately 28,129 rentable
square feet of space located on Floor 26, 6,000 rentable square
feet of space located Floor 31, 28,803 rentable square feet of
space located on Floor 32, and 28,492 rentable square feet of space
located on Floor 33 for a total area of 91,424
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rentable square feet (the “
Premises ”), as shown on Exhibit A
attached hereto, of that certain office building located at
200 Clarendon Street, Boston, Massachusetts 02117 (the “
Building ”). Any capitalized terms used herein
not otherwise defined shall have the respective meanings ascribed
to them in the Existing Lease.
B.
Landlord and Tenant hereby desire to
amend the Existing Lease on the terms and conditions set forth in
this Amendment. The Existing Lease, as amended by this
Amendment, shall be referred to herein as the “ Lease
”.
AGREEMENT
NOW, THEREFORE,
for good and valuable consideration,
the receipt and sufficiency of which is hereby acknowledged,
Landlord and Tenant hereby agree as follows:
1.
Extension of Lease
Term . The Term
with respect to the Premises currently expires on August 31,
2009 (the “ Existing Expiration Date ”).
Upon the mutual execution and delivery of this Amendment, the Term
with respect to the Premises is hereby extended from the Existing
Expiration Date to March 31, 2015 (the “ New
Expiration Date ”). The period from the first day
immediately after the Existing Expiration Date through the New
Expiration Date with respect to the Premises shall be referred to
herein as the “ 18th Amendment Extended Term
”. During the 18th Amendment Extended Term, all
references in the Existing Lease to the term “ Term
” with respect to the Premises shall be deemed to refer to
the 18th Amendment Extended Term. All references in this
Amendment to “ Term ” shall mean any period
during which this Lease is in effect. During the 18th
Amendment Extended Term, Tenant shall lease the Premises on all of
the same terms and conditions set forth in the Lease, except as
otherwise set forth herein.
Pursuant to Section 9 of the
Ninth Amendment, as amended by Section 7 of the Sixteenth
Amendment, Tenant has an Option to Extend the Term of the
Lease. Landlord and Tenant acknowledge that by entering into
this Amendment, Tenant is hereby exercising the aforementioned
Option to Extend the Term, and that except as set forth in
Section 8 below, Tenant shall have no further rights to extend
the Term of the Lease. Notwithstanding the foregoing, if
Tenant elects to terminate this Amendment pursuant to the terms and
conditions set forth in Section 20 hereof, then, and only in
that event, Tenant shall retain the Option to Extend the Term of
the Lease set forth in Section 9 of the Ninth Amendment, as
amended by Section 7 of the Sixteenth Amendment, except that
the Exercise Date, as defined in Section 7 of the Sixteenth
Amendment, shall be not later than one hundred twenty (120) days
after the Effective Date set forth above.
2 .
Base Rent
. From and after the mutual
execution of this Amendment until the Existing Expiration Date, and
in addition to all other charges payable under the Lease, Tenant
shall continue to pay the monthly Base Rent with respect to the
Premises in accordance with the terms and provisions of the
Existing Lease. During the 18th Amendment Extended Term,
Tenant shall pay the Base Rent for the Premises in the amount of
$6,171,120.00 per annum ($514,260.00 per month; $67.50 per rentable
square foot of the Premises) in accordance with the terms of
Paragraph 1 of the Existing Lease.
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3 .
Waived Rent
. Notwithstanding anything herein which may
be construed to the contrary, provided there is no event of
monetary or material non-monetary default by Tenant existing under
the Lease, beyond all applicable notice and cure periods (an
“ Uncured Major Default ”), at any time during
the below-listed time periods in the 18th Amendment Extended Term
(the “ Waiver Periods ”), the monthly amount of
Base Rent is hereby waived by Landlord (the “ Waived
Rent ”) as set forth below. The foregoing waivers
shall not affect Tenant’s obligation to pay additional rent
or any other charges payable by Tenant under the Lease.
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Waiver Periods
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Waived Rent
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September, 2009
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$
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514,260.00
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October, 2009
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$
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514,260.00
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September, 2010
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$
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514,260.00
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September, 2011
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$
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514,260.00
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September, 2012
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$
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514,260.00
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September, 2013
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$
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514,260.00
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September, 2014
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$
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514,260.00
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If there exists an Uncured Major
Default during a Waiver Period, then Tenant shall not be entitled
to the benefit of the Waived Rent for the applicable Waiver Period;
provided, however, that if Tenant thereafter cures such Uncured
Major Default (which cure shall be subject to Landlord’s
acceptance thereof if it occurs after the applicable notice and
cure period) Tenant shall thereupon have the benefit of the Waived
Rent which it was denied during the period of such Uncured Major
Default, as a credit against Tenant’s next due payment of
Base Rent as if there had been no such Uncured Major
Default.
4 .
Ownership Taxes, Operating
Expenses.
(a)
Ownership Taxes.
The Base Year for purposes of
calculating Tenant’s Proportionate Share of Ownership Taxes
with respect to the 18th Amendment Extended Term shall be the
calendar year 2010, and Tenant’s Proportionate Share shall be
5.26%. With respect to the 18th Amendment Extended Term, and
any Option Terms, as hereinafter defined, all references in
subparagraph (a) of Paragraph 2 of the Lease (Rent Adjustment)
to the term “fiscal year” shall be deemed to mean
“calendar year”.
(b)
Operating Expenses
. Subparagraphs (b) and
(c) of Paragraph 2 of the Lease (Rent Adjustment) is hereby
deleted in its entirety, and the provisions governing Operating
Expenses set forth in Exhibit B attached hereto
and incorporated herein are hereby substituted therefor. The
Base Year for purposes of calculating Tenant’s Proportionate
Share of Operating Expenses with respect to the 18th Amendment
Extended Term shall be the calendar year 2010, and Tenant’s
Proportionate Share shall be 5.26%.
5 .
Acceptance of
Premises .
Tenant is currently occupying the Premises and acknowledges and
hereby agrees that (i) except for furnishing the 18th
Amendment Allowance, as hereinafter defined, and except as provided
in the following paragraph, Landlord shall have no
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obligation to perform any work to prepare the
Premises for Tenant’s use and occupancy and (ii) Tenant
accepts the Premises in its current condition, “AS-IS,”
“WITH ALL FAULTS.” Additionally, Tenant
acknowledges that Landlord has not made any representation or
warranty as to the condition of the Premises or the Building with
respect to the suitability or fitness of same for the conduct of
Tenant’s permitted use, its business, or for any other
purpose.
Landlord shall, at its sole cost and
expense, install filters (and maintain and/or replace such filters
throughout the 18 th Amendment Extended Term) in certain
of the heat registers in the Premises. Furthermore, Landlord
shall take such other reasonable actions as may be reasonably
necessary, in Landlord’s good faith judgment, throughout the
Term to prevent black dust from being released from any registers
in the Premises. Promptly after execution and delivery of
this Amendment by both parties, Tenant and Landlord shall jointly
inspect the heat registers in the Premises to determine which of
them are emitting dust. Within thirty (30) days after such
joint determination, Landlord shall install filters in all affected
heat registers.
6 .
18th Amendment
Allowance. Landlord shall make available to Tenant a
one-time tenant improvement allowance (the “ 18th
Amendment Allowance ”) for the construction costs
(including, without limitation, planning, architectural, and
engineering expenses, construction management fees, moving
expenses, and voice and data cabling) incurred by Tenant (including
architectural planning costs for The Phillips Group incurred by
Tenant prior to the date of this Amendment) in refurbishing the
Premises (the “ Improvements ”) in an amount
equal to One Million Eight Hundred Twenty-Eight Thousand Four
Hundred Eighty and 00/100 Dollars ($1,828,480.00). The
planning, construction and installation of the Improvements shall
be performed by parties selected by Tenant and approved by Landlord
(which approval shall not be unreasonably withheld, conditioned or
delayed) in accordance with the terms of Paragraph 10 of the
Existing Lease. Landlord shall, from time to time (but not
more often than monthly) within forty-five (45) days following
receipt of invoices marked as paid, unconditional mechanics’
lien releases, and such other information as Landlord may
reasonably request with respect to the Improvements, reimburse
Tenant for the cost of the Improvements; provided, however, that in
no event shall Landlord be obligated to make disbursements pursuant
to this Section 6 in a total amount which exceeds the 18th
Amendment Allowance. Tenant may elect to use a portion of the
18th Amendment Allowance in an amount not to exceed $457,120.00
($5.00 per rentable square foot of the Premises) (the “
Reserved Allowance ”) (i) for the purchase and
installation of future Improvements in the Premises and/or
(ii) as a credit against Base Rent and any additional rent due
under the Lease.
It is understood and agreed that
subject to the prior approval of Landlord, which approval shall not
be unreasonably withheld, conditioned, or delayed, Tenant may
select the construction manager of its choice and shall not be
required to use Landlord or an affiliate of Landlord as
construction manager. Although Tenant has not yet chosen its
construction manager or architect, Landlord hereby approves the use
by Tenant of CB Richard Ellis-NE Partners, LP as construction
manager, and The Phillips Group as architect, in the event that
Tenant elects to use either or both of these companies for such
purposes.
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7 .
Assignment and
Subletting .
(a)
The language added as insertion #4
to the first sentence of Paragraph 8 of the Lease is hereby deleted
in its entirety and replaced with the following
language:
“provided, however, that
Tenant may, without the prior written consent of Landlord (but with
prior written certification to Landlord from Tenant’s chief
financial officer that the financial test set forth in subsection
(i) below has been met, if applicable) assign or sublet the
Premises to a Permitted Transferee as such term is hereinafter
defined, but provided further that no such assignment or subletting
shall affect Tenant’s continuing liability hereunder.
For purposes of this Lease, (i) an “ Assignee
” is hereby defined as a business entity into which Tenant is
merged or with which Tenant is consolidated, or which acquires all
or substantially all of the stock or assets of Tenant, which
business entity shall have a net worth (determined in accordance
with generally accepted accounting principles, consistently
applied) immediately after such merger, consolidation or
acquisition at least equal to the greater of (x) One Hundred
Twenty Million and 00/100 Dollars ($120,000,000.00) and
(y) seventy-five percent (75%) of the net worth (determined in
accordance with generally accepted accounting principles,
consistently applied) of Tenant immediately prior to such merger,
consolidation or acquisition, and (ii) an “
Affiliated Entity ” is hereby defined as any entity
which is controlled by, is under common control with, or which
controls Tenant, control being defined as the direct or indirect
ownership of more than fifty (50%) percent of the beneficial
interest of the entity in question (individually and collectively,
a “ Permitted Transferee ”).”
From and after the Effective Date,
all references in the Lease to the language “an affiliate as
that term is defined in Rule 144 promulgated under the
Securities Act of 1933” shall be deleted in its entirety, and
all references in the Lease to “an affiliate” shall be
deemed to mean a Permitted Transferee.
(b)
The last sentence of Paragraph 8 of
the Lease is deleted in its entirety and is replaced with the
following: “Landlord agrees that its consent to a
proposed assignment or subletting shall not be unreasonably
withheld provided Tenant remains primarily liable
hereunder.” In addition, Paragraph 8 of the Lease is
hereby amended by adding the following language:
“If Landlord consents to an
assignment of the Lease or a sublease of all or any portion of the
Premises (the “ Subject Space ”) (each, a
“ Transfer ”), as a condition thereto which the
parties hereby agree is reasonable, Tenant shall pay to Landlord
fifty percent (50%) of any Transfer Premium (as hereinafter
defined) as and when received by Tenant from such assignee or
subtenant (each, a “ Transferee ”).
“ Transfer Premium ” shall mean all Base Rent
and additional rent (collectively, “ Rent ”), or
other consideration payable by such Transferee in connection with
the Transfer in excess of the Rent payable by Tenant under the
Lease during the term of the Transfer (on a
per-rentable-square-foot basis if less than all of the Premises is
transferred) after deducting the reasonable expenses incurred by
Tenant for (i) any free base rent, allowances or other
economic concessions provided to the Transferee, (ii) any
brokerage commissions, advertising costs, legal fees, architectural
fees, and reasonable leasehold improvement costs in connection with
the Transfer, (iii) in the case of any sublease, any actual
costs incurred by Tenant in separately demising the subleased
space, and (iv) any other reasonable costs incurred in
connection with the Transfer. Transfer Premium shall also
include, but not be limited to, key money, bonus money or other
cash consideration paid by Transferee to
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Tenant in connection with such Transfer, and any
payment in excess of fair market value for services rendered by
Tenant to Transferee or for assets, fixtures, inventory, equipment,
or furniture transferred by Tenant to Transferee in connection with
such Transfer. In the calculations of the Rent (as it relates
to the Transfer Premium calculated under this Paragraph 8), the
Rent paid by Transferee and by Tenant during each annual period for
the Subject Space shall be computed after adjusting such rent as
aforesaid. It is expressly understood and agreed that this
paragraph shall not apply to any assignment or sublease for which
Landlord’s consent is not required under the
Lease.
Notwithstanding anything to the
contrary contained in this Paragraph 8, if Tenant delivers to
Landlord a notice of Tenant’s desire to Transfer all or
substantially all of the Premises on the terms and conditions set
forth in the Lease for all or substantially all of the balance of
the applicable Term (the “ Transfer Notice ”),
Landlord shall have the option, by giving written notice (the
“ Recapture Notice ”) to Tenant within thirty
(30) days (which period shall be shortened to twenty (20) days
after 100 & 200 Clarendon LLC transfers all of its
interests in the Building to an unrelated third party) after
receipt of such Transfer Notice, to recapture the portion of the
Premises which Tenant desires to transfer as identified in such
Transfer Notice (the “ Transfer Space ”);
provided, however, that Tenant shall have the right to nullify
Landlord’s election to recapture the Transfer Space if Tenant
delivers written notice (the “ Withdrawal Notice
”) to Landlord withdrawing Tenant’s Transfer Notice
within ten (10) days after Tenant’s receipt of the
Recapture Notice. Unless Tenant timely delivers the
Withdrawal Notice, such Recapture Notice shall cancel and terminate
the Lease with respect to the Transfer Space as of the later of
(i) the date stated in the Transfer Notice as the effective
date of the proposed Transfer and (ii) ninety (90) days
following the giving of the Recapture Notice. In the event of
a recapture by Landlord, if the Lease shall be canceled with
respect to less than the entire Premises, the Rent reserved therein
shall be prorated on the basis of the number of rentable square
feet retained by Tenant in proportion to the number of rentable
square feet contained in the Premises, and the Lease as so amended
shall continue thereafter in full force and effect, and upon
request of either party, the parties shall execute written
confirmation of the same. If Landlord declines, or fails to
elect in a timely manner to recapture the Transfer Space under this
Section 7, then, provided Landlord has consented to the
proposed Transfer, Tenant shall be entitled to proceed to transfer
the Transfer Space to the proposed Transferee within one hundred
eighty (180) days after the date of the Transfer Notice, subject to
the provisions of this Section 7 and the Existing Lease.
Tenant acknowledges and agrees that if Tenant delivers the
Withdrawal Notice, Landlord may enter into a direct lease with the
proposed Transferee identified in the applicable Transfer Notice on
such terms and conditions as are acceptable to Landlord in its sole
and absolute discretion, and Tenant shall have no right, title or
interests to any of the rent, additional rent and/or any other
consideration that Landlord receives from such Transferee. It
is expressly understood and agreed that Landlord shall have no
recapture right for any assignment or sublease for which
Landlord’s consent is not required under the
Lease.
In no event shall Tenant be
permitted to sublease the Premises or assign the Lease to a
Restricted Occupant, as hereinafter defined. For purposes
hereof, a “ Restricted Occupant ” shall be
defined as any tenant (or any subtenant or occupant whose sublease
or occupancy agreement is dated prior to the Effective Date) of
premises in the Building ( “Occupant ”) unless
such Occupant’s need, as to the size of premises and length
of term, cannot then (i.e., at the time that Tenant requests
Landlord’s consent to a Transfer to such Occupant) be
satisfied by
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Landlord. Landlord shall confirm to
Tenant, in writing within ten (10) business days of receipt of
Tenant’s written request, as to whether or not Landlord has
comparable space to offer such Occupant.”
8 .
Options to
Extend .
As noted above, pursuant to
Section 9 of the Ninth Amendment, as amended by Section 7
of the Sixteenth Amendment, Tenant has an Option to Extend the Term
of the Lease. Landlord and Tenant acknowledge that by
entering into this Amendment, Tenant is hereby exercising the
aforementioned Option to Extend the Term, and that except as set
forth in Section 8 below, Tenant shall have no further rights
to extend the Term of the Lease.
On the conditions (which conditions
Landlord may waive, at its election, by written notice to Tenant at
any time) that both at the time Tenant exercises the extension
option(s) described below and on the commencement date of the
applicable Option Term, (i) Tenant is not in default of its
covenants and obligations under the Lease beyond all applicable
notice and cure periods, and (ii) Tenant has not subleased
more than one (1) full floor of the Premises then demised to
Tenant other than to a Permitted Transferee, Tenant shall have the
right and option to extend the Term for either (x) the entire
Premises plus the 22,778 rentable square feet of office space on
Floor 31 of the Building that Tenant is currently subleasing from
John Hancock Financial Services, Inc., through March 31,
2015 (collectively, “ Extension Premises A ”) or
(y) Floors 26, 32, and 33 only (collectively, “
Extension Premises B ”), in either case for two
(2) additional periods of five (5) years each (each
five-(5)-year period to be referred to hereinafter as an “
Option Term ”), provided that Tenant shall give
written notice (“ Extension Notice ”) to
Landlord on or before the date that is not less than sixteen (16)
months prior to, but not more than nineteen (19) months prior to,
the expiration of the then current Term (the “ Exercise
Date ”), the first such Option Term commencing as of the
expiration of the 18 th Amendment Extended Term and the
second such Option Term commencing as of the expiration of the
first (1 st ) Option Term. Notwithstanding the
foregoing, only in connection with Tenant’s lease of any RFO
Premises, as more fully set forth in Section 9(a) hereof,
Tenant may send Landlord an Extension Notice on or before the date
twenty-four (24) months prior to the expiration of the then current
Term. If Tenant elects to extend the Term of the Lease
hereunder, then at the time Tenant delivers its Extension Notice
for the first Option Term, Tenant shall specify either Extension
Premises A or Extension Premises B as the Premises for which the
Term is being extended for the Option Term(s), and if Tenant fails
to specify same, Tenant shall be deemed to have exercised its
option to extend the Term for Extension Premises A defined
above.
If an option is
duly exercised as aforesaid, the then current Term shall be
automatically extended for the applicable Option Term commencing on
the date immediately following the expiration of the then current
Term (the “ Option Term
Commencement Date ”) upon all of the same
terms and conditions contained in the Lease except that Base Rent
shall be determined as hereinafter provided. In the event
that an option to extend is duly exercised, all references
contained in the Lease to “Term” or “18th
Amendment Extended Term”, whether by number of years or
number of months, shall be construed to refer to the then current
Term as extended by the exercise of the aforesaid option(s),
whether or not specific reference thereto is made in the
Lease. In exercising any option hereunder, Tenant
acknowledges that time is of the essence.
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Base Rent during the applicable
Option Term shall be equal to the then Fair Rental Value for the
Premises (as defined and determined below).
For purposes of this Section 8,
“ Fair Rental Value ” shall mean the annual fair
rental for the Premises that would be agreed upon between a
landlord and a tenant executing a lease in a comparable building of
comparable age for comparable square footage located in Boston for
a comparable term in light of all the other business terms of the
Lease, assuming the following:
(a)
the landlord and tenant are well
informed and well advised, and each is acting in what it considers
its own best interests;
(b)
the rental shall reflect the
condition of the Premises and all residual value of any
improvements to the Premises;
(c)
the method by which square footage
is measured is similar to the method used to measure the Premises;
and
(d)
the creditworthiness of the tenant
is similar to the creditworthiness of Tenant at the time the option
to extend the Lease is exercised.
For purposes of this Section 8,
the determination of the Fair Rental Value specified above shall
include consideration of all adjustments, if any, for Ownership
Taxes and Operating Expenses attributable to the Premises.
Effective as of the applicable Option Term Commencement Date and
for the duration of the applicable Option Term, the Base Year for
determining Tenant’s Proportionate Share of Ownership Taxes
and Tenant’s Proportionate Share of Operating Expenses shall
be the calendar year ending immediately prior to the applicable
Option Term Commencement Date (i.e., 2014 for an Option Term
commencing in 2015).
Within thirty (30) days after
receipt of Tenant’s Extension Notice, Landlord shall
initially designate Fair Rental Value and Landlord shall furnish
data in support of such designation. If Tenant disagrees with
Landlord’s designation of a Fair Rental Value, Tenant shall
so notify Landlord within ten (10) business days after receipt
of Landlord’s designation, whereupon Landlord and Tenant
shall negotiate in good faith for thirty (30) days (“
Negotiation Period ”). If the parties cannot
agree in the Negotiation Period as to the amount of Fair Rental
Value, then the determination of Fair Rental Value shall
immediately be submitted to arbitration in accordance with the
following procedure.
Within fifteen (15) days after the
Negotiation Period, each of Landlord and Tenant shall appoint an
appraiser and shall notify the other of same. If either party
fails to give notice to the other identifying an appraiser within
the time provided, and such failure continues for ten
(10) business days after notice from the other party (which
notice shall state in a prominent position, in bold face type and
all capital letters, “WARNING: FAILURE TO RESPOND TO
THIS NOTICE WITHIN TEN (10) BUSINESS DAYS WILL RESULT IN
LOSING YOUR RIGHT TO NAME AN APPRAISER TO DETERMINE RENT DURING THE
EXTENSION OPTION TERM”), said party shall be deemed to
have waived the right to
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identify an appraiser, and the
decision of the other party’s appraiser shall control If two
appraisers are selected, they must within fifteen (15) days after
the selection of the second agree to a third appraiser. If
the two appraisers fail to identify the third appraiser within such
fifteen-(15)-day period, then either Landlord or Tenant may
petition the American Arbitration Association (or its equivalent)
having jurisdiction over the Premises for the appointment of the
third appraiser. The three appraisers must each, within
thirty (30) days after the appointment of the third appraiser,
simultaneously deliver to Landlord and Tenant their expert opinions
of the Fair Rental Value in question. The Fair Rental Value
is the rent proposed by either the appraiser selected by Landlord
or the appraiser selected by Tenant that is closest to the rent
determined by the third appraiser. Landlord and Tenant each
have the right, to be exercised within fifteen (15) days after the
appointment of the third appraiser, to submit written materials to
the appraisers and the other party not in excess of fifteen (15)
pages in length and may submit a reply of not more than five
(5) pages within five (5) days after receipt of the
other party’s submission. There must be no hearings or
other contact between the appraisers and the parties hereto.
Each party must pay the cost of the appraiser selected by it and
one half of the cost of the third appraiser. All appraisers
must be independent, disinterested, and must have the designation
MAI, SRA or equivalent and must have not less than five
(5) years’ experience appraising lease rents in the
business market wherein the Premises are located. The
appraisers may, but need not, present formal written appraisals
supporting their opinion but must, in any event, certify that the
report was conducted in accordance with professional
standards. The decision of this appraisal process is binding
upon the parties and is not subject to appeal to a court or other
body except for claims based upon fraud.
9.
Right of First
Offer .
Section 8 of the
Sixteenth Amendment of Lease is hereby deleted in its entirety, and
the following language is substituted therefor:
On the conditions (which conditions
Landlord may waive, at its election, by written notice to Tenant at
any time) that both at the time Landlord is required to give
Landlord’s Notice, as hereinafter defined, and as of the
Commencement Date in respect of the RFO Premises, as hereinafter
defined, (i) Tenant is not in default of its covenants and
obligations under the Lease beyond all applicable notice and cure
periods, and (ii) Tenant has not subleased more than one
(1) full floor of the Premises then demised to Tenant other
than to a Permitted Transferee, then Tenant shall have the
following right to lease the RFO Premises when the RFO Premises
become available for lease to Tenant, as hereinafter
defined.
(a)
Definition of RFO
Premises
The “ RFO Premises
” shall be defined as any separately demised area on Floor 30
of the Building, when such area becomes available for lease to
Tenant during the Term, as the same may be extended. For the
purposes of this Section 9, an RFO Premises shall be deemed to
be “ available for lease to Tenant ” if, during
the Term of the Lease, Landlord, in its sole judgment, determines
that such area will become available for leasing to Tenant (i.e.,
when Landlord determines that the then current tenant of such RFO
Premises will terminate its lease and vacate such RFO Premises,
John Hancock Financial Services, Inc., or any other tenant
having prior rights as set forth in Section 9(e) below,
has not exercised its right to lease the RFO Premises, and when
Landlord intends to offer such area for lease). Landlord
shall give Tenant
9
written notice (“ Offer Notice
”) at the time that Landlord determines, as aforesaid, that
the RFO Premises will become available for lease to
Tenant.
In the event there are less than two
(2) years remaining in the Term or in the first Option Term,
if applicable, at the time Landlord gives Tenant an Offer Notice,
then in order for Tenant to exercise Tenant’s Right of First
Offer, Tenant must simultaneously send Landlord its Exercise Notice
for the next Option Term, as set forth in Section 8
above. In no event shall Tenant have any rights, and Landlord
shall not be required to provided Tenant with an Offer Notice,
under this Section 9 on or after the date sixteen (16) months
prior to the expiration of the then-current Term of the Lease
unless, with respect to the 18 th Amendment Extended
Term or the first Option Term, Tenant has exercised either the
first or second option to extend pursuant to Section 8 above,
as the case may be. Notwithstanding the foregoing, this
paragraph is not intended to increase the number of extension
options, which shall be limited to two (2) as set forth in
Section 8 of this Amendment.
(b)
Exercise of Right to Lease RFO
Premises
Landlord’s Offer Notice shall
set forth the exact location of the RFO Premises, the Base Rent and
Base Years (if applicable) applicable to the RFO Premises, and the
Commencement Date and Expiration Date in respect of the RFO
Premises. Tenant shall have the right, exercisable upon
written notice (“ Tenant’s Exercise Notice
”) given to Landlord within fifteen (15) business days after
the receipt of Landlord’s Notice, to lease the RFO
Premises. If Tenant fails timely to give Tenant’s
Exercise Notice, Tenant shall have no further right to lease such
RFO Premises pursuant to this Section 9, provided, however,
that this Right of First Offer shall (1) continue to apply to
any portions of the RFO Premises that were not included in
Landlord’s Offer Notice, (2) apply again to the RFO
Premises included in Landlord’s Offer Notice if Landlord
fails to enter into a lease document for such RFO Premises within
twelve (12) months after Tenant waives this Right of First Offer as
to such RFO Premises, (3) apply again to the RFO Premises
included in Landlord’s Offer Notice if Landlord desires to
offer the RFO Premises to another party where the net effective
rate of the basic economic terms for such RFO Premises (taking into
account free rent, allowances, tenant improvements, build-out
periods without rent, and any other concessions) is ten percent
(10%) or more below the net effective rate of the basic economic
terms that were contained in Landlord’s Offer Notice to
Tenant hereunder, (4) apply again to the RFO Premises included
in Landlord’s Office Notice if the RFO Premises being offered
by Landlord is less than 85% or more 115% of the rentable square
footage of space in Lanldord’s Offer Notice to Tenant
hereunder, and (5