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Exhibit
10.142
33 HAYDEN
AVENUE
LEXINGTON,
MASSACHUSETTS
Lease Dated December 20,
2004
THIS INSTRUMENT IS AN
INDENTURE OF LEASE in which the Landlord and the Tenant are the
parties hereinafter named, and which relates to space in a certain
building (the “Building”) known as, and with an address
at, 33 Hayden Avenue, Lexington, Massachusetts.
The parties to this Indenture
of Lease hereby agree with each other as follows:
ARTICLE I
REFERENCE
DATA
| 1.1 |
SUBJECTS REFERRED TO . |
Each reference in this Lease
to any of the following subjects shall be construed to incorporate
the data stated for that subject in this Article:
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| Landlord: |
|
Mortimer
B. Zuckerman and Edward H. Linde, Trustees of Hayden Office Trust
under Declaration of Trust dated August 24, 1977, recorded with the
Middlesex South Registry District of the Land Court as Document No.
560049 as amended and not individually and without personal
liability. |
|
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| Landlord’s Original Address: |
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c/o Boston Properties Limited
Partnership
111 Huntington Avenue, Suite
300
Boston, Massachusetts
02199-7610
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| Landlord’s Construction Representative: |
|
Michael
Schumacher |
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| Tenant: |
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Indevus
Pharmaceuticals, Inc., a Delaware corporation. |
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| Tenant’s Original Address: |
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99 Hayden Avenue
Lexington, Massachusetts
02421
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| Tenant’s Construction Representative: |
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Steve
Raposo |
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| Authorization To Proceed Date: |
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As set forth
in Section 3.1 |
|
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| Long Lead
Items Release Date: |
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As set forth
in Section 3.1 hereof |
|
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| Estimated
Commencement Date: |
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June 1,
2005 |
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| Commencement
Date: |
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As defined
in Sections 2.4 and 3.1. In no event shall Tenant be obligated to
accept the Premises and, therefore, have the Commencement Date
occur prior to June 1, 2005 |
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| Rent
Commencement Date: |
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The one
hundred and eighty first (181 st ) day following the
Commencement Date |
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| Outside
Completion Date: |
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December 1,
2005 |
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| The
“Original Term”: |
|
Sixty six
(66) calendar months (plus the partial month, if any, immediately
following the Commencement Date), unless extended or sooner
terminated as provided in this Lease. |
|
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| Extension
Option: |
|
One (1)
period of five (5) years as provided in and on the terms set forth
in Section 8.20 hereof. |
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| The Term or
Lease Term: |
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The
Original Term as extended by the Extension Option if Tenant shall
exercise the Extension Option. |
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| The
Site: |
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That certain
parcel of land known as and numbered 33 Hayden Avenue, Lexington,
Middlesex County, Massachusetts, being more particularly described
in Exhibit A attached hereto. |
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| The
Building: |
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The three
(3) story Building on the Site known as and numbered 33 Hayden
Avenue, Lexington, Massachusetts. |
2
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| The
Complex: |
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The Building
together with all parking areas, the Site and all improvements
(including landscaping) thereon and thereto. |
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| Tenant’s Space: |
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A portion of
the first floor and a portion of the second floor of the Building
in accordance with the floor plans annexed hereto as Exhibit D and
incorporated herein by reference. |
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| First Floor
Premises: |
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The entire
first floor portion of Tenant’s Space as shown and so labeled
on Exhibit D. |
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| The First
Offer Space: |
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The entire
premises presently leased to ICF Consulting, Inc., and shown on
Exhibit D-1. |
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| The Second
Floor First Offer Space: |
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The portion
of the First Offer Space located on the second floor of the
Building and so labeled on Exhibit D-1. |
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| The Third
Floor First Offer Space: |
|
The portion
of the First Offer Space located on the third floor of the Building
and so labeled on Exhibit D-1. |
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| Number of
Parking Spaces: |
|
At the rate
of 3.6 parking spaces for each 1,000 square feet of “Rentable
Floor Area of Tenant’s Space” (hereinafter defined in
this Section 1.1). |
|
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| Annual Fixed
Rent: |
|
(i) During the Original Term of this
Lease at the following annual rates:
(a) For the period commencing on the
Commencement Date and ending on the day immediately preceding the
Rent Commencement Date, there shall be no annual fixed rent
payable;
(b) For the period commencing on the
Rent Commencement Date and ending on the last day of the eighteenth
(18 th ) full calendar month of the Original Term, at
the annual rate of $1,037,944 being the product of (i) $23.00 and
(ii) the “Rentable Floor Area of Tenant’s Space”
(hereinafter defined in this Section1.1); and
(c) For the period commencing on the
first day of the nineteenth (19 th ) full calendar month
of
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3
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the Original Term and ending on the last
day of the thirtieth (30 th ) full calendar month of
the Original Term, at the annual rate of $1,060,508 being the
product of (i) $23.50 and (ii) the Rentable Floor Area of
Tenant’s Space; and
(d) For the period commencing on the
first day of the thirty first (31 st
) full
calendar month of the Original Term and ending on the last day of
the forty second (42 nd ) full calendar month of the Original
Term, at the annual rate of $1,083,072 being the product of (i)
$24.00 and (ii) the Rentable Floor Area of Tenant’s Space;
and
(e) For the period commencing on the
first day of the forty third (43 rd
) full
calendar month of the Original Term and ending on the last day of
the fifty fourth (54 th ) full calendar month of the Original
Term, at the annual rate of $1,105,636 being the product of (i)
$24.50 and (ii) the Rentable Floor Area of Tenant’s Space;
and
(f) For the period commencing on the
first day of the fifty fifth (55 th
) full
calendar month of the Original Term and ending on the last day of
the Original Term, at the annual rate of $1,128,200 being the
product of (i) $25.00 and (ii) the Rentable Floor Area of
Tenant’s Space.
(ii) During the extension option period
(if exercised), as determined pursuant to Section 8.20
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| Base
Operating Expenses: |
|
Landlord’s Operating Expenses (as hereinafter defined in
Section 2.6) for calendar year 2005, being January 1, 2005 through
December 31, 2005. |
|
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| Base
Taxes: |
|
Landlord’s Tax Expenses (as hereinafter defined in
Section 2.7) for fiscal tax year 2006, being July 1, 2005 through
June 30, 2006, but only (i) if based on an assessed value for the
Building and Site reflecting a fully leased building less a
vacancy/credit loss allowance as determined by the Lexington
Assessing Department and taking |
4
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| |
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into
account improvements to be made by Landlord to upgrade the common
areas and components of the Building as provided in Section 8.27
hereof and (ii) without regard to abatement for fiscal year 2006
(the “Assessment Criteria”). However, if Landlord
cannot reasonably demonstrate to Tenant’s reasonable
satisfaction conformance with the Assessment Criteria, then Base
Taxes shall be Landlord’s Tax Expenses for fiscal tax year
2007 (being July 1, 2006 through June 30, 2007). |
|
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| Tenant
Electricity: |
|
Initially as
provided in Section 2.5 subject to adjustment as provided in
Section 2.8 hereof. |
|
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| Additional
Rent: |
|
All charges
and other sums payable by Tenant as set forth in this Lease, in
addition to Annual Fixed Rent. |
|
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| Rentable
Floor Area of Tenant’s Space (Sometimes also called
“Rentable Floor Area of the Premises”): |
|
45,128
square feet. |
|
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| Total
Rentable Floor Area of the Building: |
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81,536
square feet. |
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| Permitted
Use: |
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General
office purposes and as accessory and ancillary to the foregoing
(but not as a primary use) (i) the use of the fitness area
constructed as part of the initial fit out of the Premises (not to
be enlarged) for the exercise and general fitness use of
Tenant’s employees (expressly excluding, without limitation,
other tenants and occupants (and their employees) in the Building
and members of the general public and (ii) the use of storage areas
within the Premises for Tenant’s storage needs incidental to
the conduct of Tenant’s business for office purposes within
the Premises. |
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| Initial
Minimum Limits of Tenant’s Commercial General Liability
Insurance: |
|
$5,000,000.00 combined single limit per occurrence on a per
location basis. |
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Brokers:
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The Shaffer Company
Acton, Massachusetts
and
Cushman & Wakefield
125 High Street
Boston, Massachusetts
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Security Deposit:
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$500,000.00 |
There are incorporated as
part of this Lease:
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Exhibit A
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—
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Description of Site |
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Exhibit B
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—
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Space
Plan and Detailed Scope |
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Exhibit B-1
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—
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List of
Additional Tenant Work |
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Exhibit C
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—
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Landlord’s Services |
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Exhibit D
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—
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Floor
Plans of Leased Premises |
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Exhibit D-1
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—
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Plan of
First Offer Space |
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Exhibit E
|
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—
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Form of
Commencement Date Agreement |
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Exhibit F
|
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—
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Broker
Determination |
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Exhibit G
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—
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Operating
Expense Statement Form |
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Exhibit H
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—
|
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Plan
Showing Location of Tenant’s Lobby Sign |
| 1.3 |
TABLE OF ARTICLES AND SECTIONS . |
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ARTICLE I
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1 |
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REFERENCE DATA
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1 |
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1.1
|
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SUBJECTS
REFERRED TO |
|
1 |
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1.2
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EXHIBITS |
|
6 |
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1.3
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TABLE OF
ARTICLES AND SECTIONS |
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6 |
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ARTICLE II
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9 |
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THE BUILDINGS, PREMISES, TERM AND
RENT
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9 |
6
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2.1
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THE
PREMISES |
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9 |
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2.2
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RIGHTS TO
USE COMMON FACILITIES |
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9 |
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2.3
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LANDLORD’S RESERVATIONS |
|
10 |
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2.4
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HABENDUM |
|
11 |
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2.5
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FIXED
RENT PAYMENTS |
|
11 |
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2.6
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OPERATING
EXPENSES |
|
13 |
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2.7
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REAL
ESTATE TAXES |
|
18 |
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2.8
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TENANT
ELECTRICITY |
|
20 |
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ARTICLE III
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22 |
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CONDITION OF PREMISES;
ALTERATIONS
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22 |
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3.1
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SUBSTANTIAL COMPLETION |
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22 |
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3.2
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OUTSIDE
COMPLETION DATE |
|
28 |
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3.3
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QUALITY
AND PERFORMANCE OF WORK |
|
30 |
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3.4
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PAYMENT
OF TENANT PLAN EXCESS COSTS AND CHANGE ORDER COSTS |
|
30 |
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3.5
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TENANT’S SUPPLEMENTAL AIR CONDITIONING UNITS |
|
30 |
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ARTICLE IV
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31 |
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LANDLORD’S COVENANTS;
INTERRUPTIONS AND DELAYS
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31 |
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4.1
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LANDLORD
COVENANTS: |
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31 |
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4.2
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INTERRUPTIONS AND DELAYS IN SERVICES AND REPAIRS,
ETC. |
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32 |
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ARTICLE V
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34 |
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TENANT’S COVENANTS
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34 |
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5.1
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PAYMENTS |
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34 |
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5.2
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REPAIR
AND YIELD UP |
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34 |
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5.3
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USE |
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34 |
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5.4
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OBSTRUCTIONS; ITEMS VISIBLE FROM EXTERIOR; RULES AND
REGULATIONS |
|
36 |
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5.5
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SAFETY
APPLIANCES |
|
36 |
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5.6
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ASSIGNMENT AND SUBLETTING |
|
36 |
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5.7
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INDEMNITY; INSURANCE |
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45 |
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5.8
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PERSONAL
PROPERTY AT TENANT’S RISK |
|
46 |
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5.9
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RIGHT OF
ENTRY |
|
47 |
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5.10
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FLOOR
LOAD; PREVENTION OF VIBRATION AND NOISE |
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47 |
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5.11
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PERSONAL
PROPERTY TAXES |
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47 |
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5.12
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COMPLIANCE WITH LAWS |
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47 |
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5.13
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PAYMENT
OF LITIGATION EXPENSES |
|
48 |
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5.14
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ALTERATIONS |
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48 |
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5.15
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VENDORS |
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50 |
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ARTICLE VI
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50 |
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CASUALTY AND TAKING
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50 |
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6.1
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DAMAGE
RESULTING FROM CASUALTY |
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50 |
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6.2
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UNINSURED
CASUALTY |
|
51 |
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6.3
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RIGHTS OF
TERMINATION FOR TAKING |
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52 |
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6.4
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AWARD |
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53 |
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ARTICLE VII
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53 |
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DEFAULT
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53 |
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7.1
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TENANT’S DEFAULT |
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53 |
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7.2
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LANDLORD’S DEFAULT |
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58 |
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ARTICLE VIII
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58 |
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MISCELLANEOUS
|
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58 |
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8.1
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EXTRA
HAZARDOUS USE |
|
58 |
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8.2
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WAIVER |
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58 |
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8.3
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CUMULATIVE REMEDIES |
|
59 |
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8.4
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QUIET
ENJOYMENT |
|
59 |
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8.5
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NOTICE TO
MORTGAGEE AND GROUND LESSOR |
|
60 |
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8.6
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ASSIGNMENT OF RENTS |
|
60 |
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8.7
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SURRENDER |
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61 |
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8.8
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BROKERAGE |
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61 |
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8.9
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INVALIDITY OF PARTICULAR PROVISIONS |
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62 |
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8.10
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PROVISIONS BINDING, ETC. |
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62 |
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8.11
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RECORDING |
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62 |
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8.12
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NOTICES |
|
62 |
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8.13
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WHEN
LEASE BECOMES BINDING |
|
63 |
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8.14
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SECTION
HEADINGS |
|
63 |
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8.15
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RIGHTS OF
MORTGAGEE |
|
64 |
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8.16
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STATUS
REPORTS AND FINANCIAL STATEMENTS |
|
64 |
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8.17
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SELF-HELP |
|
65 |
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8.18
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HOLDING
OVER |
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66 |
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8.19
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NON-SUBROGATION |
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67 |
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8.20
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EXTENSION
OPTION |
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67 |
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8.21
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SECURITY
DEPOSIT |
|
68 |
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8.22
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LATE
PAYMENT |
|
71 |
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8.23
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TENANT’S PAYMENTS |
|
71 |
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8.24
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WAIVER OF
TRIAL BY JURY |
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71 |
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8.25
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TENANT’S RIGHT OF FIRST OFFER TO LEASE ADDITIONAL
SPACE |
|
72 |
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8.26
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SIGNAGE |
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74 |
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8.27
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LOBBY
IMPROVEMENTS |
|
75 |
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8.28
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CAFETERIA |
|
75 |
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8.29
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ROOF
RIGHTS |
|
76 |
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8.30
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GOVERNING
LAW |
|
78 |
8
ARTICLE II
THE BUILDINGS, PREMISES,
TERM AND RENT
Landlord hereby demises and
leases to Tenant, and Tenant hereby hires and accepts from
Landlord, Tenant’s Space in the Building excluding exterior
faces of exterior walls, the common stairways and stairwells,
elevators and elevator wells, fan rooms, electric and telephone
closets, janitor closets, and pipes, ducts, conduits, wires and
appurtenant fixtures serving exclusively or in common other parts
of the Building and if Tenant’s Space includes less than the
entire rentable area of any floor, excluding the common corridors,
elevator lobbies and toilets located on such floor.
Tenant’s Space with
such exclusions is hereinafter referred to as the
“Premises.” The term “Building” means the
Building identified on the first page, and which is the subject of
this Lease; the term “Site” means all, and also any
part of the Land described in Exhibit A, plus any additions or
reductions thereto resulting from the change of any abutting street
line and all parking areas and structures. The term
“Property” means the Building and the Site.
| 2.2 |
RIGHTS TO USE COMMON FACILITIES . |
Subject to Landlord’s
right to change or alter any of the following in Landlord’s
discretion as provided in Section 2.3 hereof, Tenant shall have, as
appurtenant to the Premises, the non-exclusive right to use in
common with others, subject to reasonable rules of general
applicability to tenants of the Building from time to time made by
Landlord of which Tenant is given notice (a) the common lobbies,
corridors, stairways, elevators and loading area of the Building,
and the pipes, ducts, conduits, wires and appurtenant meters and
equipment serving the Premises in common with others, (b) common
walkways and driveways necessary for access to the Building, and
(c) if the Premises include less than the entire rentable floor
area of any floor, the common toilets, corridors and elevator lobby
of such floor. Notwithstanding anything to the contrary herein,
Landlord has no obligation to allow any particular
telecommunication service provider to have access to the Building
or to the Premises except as may be required by applicable law.
Tenant acknowledges that it uses Verizon as its present
telecommunications provider. Landlord hereby approves
Tenant’s use of Verizon but any cabling, equipment and other
telecommunications apparatus, wiring and other appurtenances
(collectively “Equipment”) and the placement and
location thereof shall be solely for Tenant’s use in the
conduct of the Permitted Use and shall be first approved by
Landlord prior to installation, such approval not to be
unreasonably withheld. Such approval may be conditioned by Landlord
on Tenant’s agreement to remove all of the same at the
expiration or earlier termination of this Lease but may not be
conditioned on the imposition of access
9
charges. Landlord agrees not
to unreasonably withhold its consent to any subsequent
telecommunications service provider in replacement of, and not in
addition to, Verizon. If Landlord so consents to such subsequent
telecommunications service provider, Landlord may not condition
such access upon the payment to Landlord by the service provider of
fees assessed by Landlord. However, Landlord shall have the right
to condition the same on Landlord’s prior approval of the
installation, placement and location of such subsequent service
provider’s Equipment and Tenant’s agreement to remove
all of such subsequent service provider’s Equipment at the
expiration or earlier termination of this lease. In no event shall
any telecommunications provider install any equipment for sale of
service to others or for anyone’s use other than Tenant in
the Premises for the conduct of the Permitted Use.
In addition, Tenant shall
have the right to use in the parking area the Number of Parking
Spaces (referred to in Section 1.1) for the parking of automobiles
by its employees and visitors, in common with use by other tenants
from time to time of the Complex, provided, however, that Landlord
shall not be obligated to furnish stalls or spaces in any parking
area specifically designated for Tenant’s use. However,
Landlord shall designate five (5) parking spaces for visitor use.
Such visitor spaces shall be available to the visitors of all
tenants, subtenants and other occupants from time to time of the
Building and Landlord shall have no obligation to police or
otherwise monitor or regulate the use thereof. Except for payment
by Tenant of operating expenses as provided in Section 2.6 hereof,
there shall be no charge for Tenant’s use of such parking
spaces during the Original Term. Tenant covenants and agrees that
it and all persons claiming by, through and under it, shall at all
times abide by all reasonable rules and regulations promulgated by
Landlord with respect to the use of the parking areas on the Site.
The parking privileges granted herein are non-transferable except
to a permitted assignee or subtenant as provided in Section 5.6
through Section 5.6.5. Further, except for the negligence or
willful misconduct of Landlord and persons for whose Landlord is
responsible, Landlord assumes no responsibility whatsoever for loss
or damage due to fire, theft or otherwise to any automobile(s)
parked on the Site or to any personal property therein, however
caused, and Tenant covenants and agrees, upon request from Landlord
from time to time, to notify its officers, employees, agents and
invitees of such limitation of liability. Tenant acknowledges and
agrees that a license only is hereby granted, and no bailment is
intended or shall be created.
| 2.3 |
LANDLORD’S RESERVATIONS . |
Landlord reserves the right
from time to time, without unreasonable interference with
Tenant’s use: (a) to install, use, maintain, repair, replace
and relocate for service to
10
the Premises and other parts
of the Building, or either, pipes, ducts, conduits, wires and
appurtenant fixtures, wherever located in the Premises or Building,
and (b) to alter or relocate any other common facility, provided
that substitutions are substantially equivalent or better.
Installations, replacements and relocations referred to in clause
(a) above shall be located so far as practicable in the central
core area of the Building, above ceiling surfaces, below floor
surfaces or within perimeter walls of the Premises. Notwithstanding
the foregoing, Landlord’s right to make such alterations,
additions or other changes shall not materially and adversely (i)
affect Tenant’s use of the Premises, (ii) interfere with or
deprive Tenant of reasonable access to and from the Premises, (iii)
change the configuration of the Premises or (iv) reduce the
Rentable Floor Area of the Premises. Further, except in the case of
emergencies, Landlord shall give Tenant reasonable advance notice
of any work and Landlord shall perform such work in a manner so as
not to materially interfere with Tenant’s use of the
Premises.
Tenant shall have and hold
the Premises for a period commencing on the earlier of (the
“Commencement Date”) (a) that date on which the
Premises are “substantially complete” as provided in
Section 3.1 provided, or (b) that date on which Tenant commences
occupancy of any portion of the Premises for the Permitted Uses,
and continuing for the Term unless sooner terminated as provided in
Article VI or Article VII or unless extended as provided in Section
8.20. During Landlord’s construction of the improvements to
the Premises pursuant to Article III hereof, Tenant shall have the
right to install its wiring and cabling, its furniture and fixtures
but only in accordance with and subject to the provisions and
requirements of Section 5.14 hereof and such right and
Tenant’s access shall be upon all of the terms and conditions
set forth in this Lease except that such installation if prior to
the date of substantial completion (as provided in Section 3.1),
shall not trigger the commencement of the Lease Term as respects
commencement of Annual Fixed Rent. However, whether or not Tenant
exercises such rights and whether or not Tenant has completed all
such installations, the Lease Term and Annual Fixed Rent shall
commence on the Commencement Date.
As soon as may be convenient
after the date has been determined on which the Term commences as
aforesaid, Landlord and Tenant agree to join with each other in the
execution of a written Declaration, in the form of Exhibit E, in
which the date on which the Term commences as aforesaid and the
Term of this Lease shall be stated. If Tenant fails to execute such
Declaration, the Commencement Date and Lease Term shall be as
reasonably determined by Visnick and Caulfield, Architects
(“Visnick & Caulfield”) in accordance with the
terms of this Lease.
| 2.5 |
FIXED RENT PAYMENTS . |
Tenant agrees to pay to
Landlord, or as directed by Landlord, at Landlord’s Original
Address specified in Section 1.1 hereof, or at such other place as
Landlord shall from
11
time to time designate by
notice, (1)(a) on the Rent Commencement Date (defined in Section
1.1 hereof) and thereafter monthly, in advance, on the first day of
each and every calendar month during the Original Term, a sum equal
to one twelfth (1/12 th ) of the Annual Fixed Rent (sometimes
hereinafter referred to as “fixed rent”) and (1)(b) on
the Commencement Date and thereafter monthly, in advance, on the
first day of each and every calendar month during the Original
Term, a sum equal to one twelfth (1/12 th
) of $1.00
per annum for each square foot of Rentable Floor Area of
Tenant’s Space for tenant electricity subject to escalation
as provided in Section 2.8 and (2) on the first day of each and
every calendar month during the extension option period (if
exercised), a sum equal to (a) one twelfth (1/12 th
) of the
annual fixed rent as determined in Section 8.20 for the extension
option period plus (b) then applicable monthly electricity charges
(subject to escalation for electricity as provided in Section 2.8
hereof. Until notice of some other designation is given, fixed rent
and all other charges for which provision is herein made shall be
paid by remittance to or for the order of Boston Properties Limited
Partnership at P.O. Box 3557, Boston, Massachusetts 02241-3557, and
all remittances received by Boston Properties Limited Partnership,
as Agents as aforesaid, or by any subsequently designated
recipient, shall be treated as payment to Landlord.
Annual Fixed Rent for any
partial month shall be paid by Tenant to Landlord at such rate on a
pro rata basis, and, if the Rent Commencement Date is a day other
than the first day of a calendar month, the first payment of Annual
Fixed Rent which Tenant shall make to Landlord shall be a payment
equal to a proportionate part of such monthly Annual Fixed Rent for
the partial month from the Rent Commencement Date to the first day
of the succeeding calendar month.
Additional Rent payable by
Tenant on a monthly basis, as hereinafter provided, likewise shall
be prorated, and the first payment on account thereof shall be
determined in similar fashion but shall commence on the
Commencement Date; and other provisions of this Lease calling for
monthly payments shall be read as incorporating this undertaking by
Tenant.
Notwithstanding that the
payment of Annual Fixed Rent payable by Tenant to Landlord shall
not commence until the Rent Commencement Date, Tenant shall be
subject to, and shall comply with, all other provisions of this
Lease as and at the times provided in this Lease.
The Annual Fixed Rent and all
other charges for which provision is herein made shall be paid by
Tenant to Landlord, without offset, deduction or abatement except
as otherwise specifically set forth in this Lease.
The Rent Commencement Date in
respect of the Premises (“RCD”) shall be the date which
is 181 days after the Commencement Date (“Fixed Rent
Abatement Period”) (i.e., Tenant shall have no obligation to
pay Annual Fixed Rent during the first (1 st
) 180 days of
the Term of the Lease in respect of the Premises (“Abated
Fixed Rent”).
12
Notwithstanding anything to
the contrary herein contained, if Tenant defaults at any time
during the Term of the Lease and fails to cure such default within
the applicable cure period under this Lease, all Abated Fixed Rent
shall immediately become due and payable. The payment by Tenant of
the Abated Fixed Rent in the event of a default shall not limit or
affect any of Landlord’s other rights, pursuant to this Lease
or at law or in equity. During the Fixed Rent Abatement Period,
only Annual Fixed Rent payable in respect of the Premises shall be
abated, and Tax Excess, Operating Expense Excess and all other
costs and charges specified in the Lease shall remain as due and
payable pursuant to the provisions of the Lease. In the event that
Tenant pays to Landlord the Abated Fixed Rent in accordance with
this Paragraph, then the monthly installments of Annual Fixed Rent
thereafter (i.e., after Tenant makes such payment) payable by
Tenant during the remainder of the initial Term of the Lease shall
be reduced by the Monthly Abated Fixed Rent Reduction, as
hereinafter defined. The “Monthly Abated Fixed Rent
Reduction” shall be defined as the amount of Abated Fixed
Rent actually paid by Tenant to Landlord, amortized on a
straight-line basis in equal monthly installments over the
remainder of the initial Term of the Lease.
“Landlord’s
Operating Expenses” means the cost of operation of the
Building and the Site which shall exclude costs of special services
rendered to tenants (including Tenant) for which a separate charge
is made, but shall include, without limitation, the following:
premiums for insurance carried with respect to the Building and the
Site (including, without limitation, liability insurance, insurance
against loss in case of fire or casualty and insurance of monthly
installments of fixed rent and any Additional Rent which may be due
under this Lease and other leases of space in the Building for not
more than 12 months in the case of both fixed rent and Additional
Rent and if there be any first mortgage of the Property, including
such insurance as may be required by the holder of such first
mortgage); compensation and all fringe benefits, worker’s
compensation insurance premiums and payroll taxes paid to, for or
with respect to all persons engaged in the operating, maintaining
or cleaning of the Building or Site, water, sewer, electric, gas,
oil and telephone charges (excluding utility charges separately
chargeable to tenants for additional or special services); cost of
building and cleaning supplies and equipment; cost of maintenance,
cleaning and repairs (other than repairs not properly chargeable
against income or reimbursed from contractors or manufacturers
under guarantees or out of insurance proceeds); cost of snow
removal and care of landscaping; payments under service contracts
with independent contractors; any and all subsidies or other
payments of any type or amount made or granted by Landlord
respecting the operation of the cafeteria; management fees at
reasonable rates consistent with the type of occupancy and the
service rendered; and all other reasonable and necessary expenses
paid in connection with the operation, cleaning and maintenance of
the Building and the Site and properly chargeable against income,
provided, however, there shall be included (a) depreciation for
capital expenditures made by Landlord (i) to reduce
Landlord’s
13
Operating Expenses if
Landlord shall have reasonably determined that the annual reduction
in Landlord’s Operating Expenses shall exceed depreciation
therefor or (ii) to comply with applicable laws, rules,
regulations, requirements, statutes, ordinances, by-laws and court
decisions of all public authorities which are enacted or amended
after the Date of this Lease; plus (b) in the case of both (i) and
(ii) an interest factor, reasonably determined by Landlord, as
being the interest rate then charged for long term mortgages by
institutional lenders on like properties within the locality in
which the Building is located; depreciation in the case of both (i)
and (ii) shall be determined by dividing the original cost of such
capital expenditure by the number of years of useful life (without
regard to any accelerated depreciation permitted thereunder) of the
capital item acquired and the useful life shall be reasonably
determined by Landlord in accordance with generally accepted
accounting principles and practices (without regard to any
accelerated depreciation permitted thereunder) in effect at the
time of acquisition of the capital item.
Notwithstanding the
foregoing, the following shall be excluded from Operating Expenses
for the Property:
| |
(1) |
All capital expenditures and depreciation, except as otherwise
explicitly provided in this Section 2.6; |
| |
(2) |
Leasing fees or commissions, advertising and promotional
expenses, legal fees, the cost of tenant improvements, build out
allowances to Tenants, moving expenses, assumption of rent under
existing leases and other concessions incurred in connection with
leasing space in the Building; |
| |
(3) |
Interest on indebtedness, debt amortization, ground rent, and
refinancing costs for any mortgage or ground lease of the Building
or the Site; |
| |
(4) |
Legal, auditing, consulting and professional fees and other
costs, (other than those legal, auditing, consulting and
professional fees and other costs incurred in connection with the
normal and routine maintenance and operation of the Building and/or
the Site) paid or incurred in connection with financings,
refinancings or sales of any of Landlord’s interest in the
Building or the Site; |
| |
(5) |
Real estate taxes, provided that real estate taxes shall be
payable as provided in Section 2.7; |
| |
(6) |
Costs incurred in performing work or furnishing services for
any tenant (including Tenant), whether at such tenant’s or
Landlord’s expense, to the extent that such work or services
is in excess of any work or service that Landlord is obligated to
furnish to Tenant at Landlord’s expense (e.g., if Landlord
agrees to provide extra cleaning to another tenant, the cost
thereof would be excluded since Landlord is not obligated to
furnish extra cleaning to Tenant); |
14
| |
(7) |
The cost of any item or service to the extent to which Landlord
is actually reimbursed or compensated by insurance, any tenant, or
any third party; |
| |
(8) |
The cost of repairs or replacements incurred by reason of fire
or other casualty or condemnation other than costs not in excess of
the deductible on any insurance maintained by Landlord which
provides a recovery for such repair or replacement; |
| |
(9) |
Insurance premiums to the extent any tenant causes
Landlord’s existing insurance premiums to increase or
requires Landlord to purchase additional insurance because of such
tenant’s use of the Building for other than office
purposes; |
| |
(10) |
Any advertising, promotional or marketing expenses for the
Building; |
| |
(11) |
Penalties and interest for late payment of any obligations of
Landlord, including, without limitation, taxes, insurance,
equipment leases and other past due amounts; |
| |
(12) |
Contributions to charitable organizations; |
| |
(13) |
Salaries or other compensation paid to employees above the
grade of property manager; |
| |
(14) |
The cost of testing, remediation or removal of “Hazardous
Materials” (as defined in Section 5.3) in the Building or on
the Site required by “Hazardous Materials Laws” (as
defined in Section 5.3) unless caused by Tenant or its contractors,
subcontractors, agents, employees or invitees; |
| |
(15) |
Legal fees and other expenses incurred in connection with
negotiating and enforcing leases with tenants in the
Building. |
“Operating Expenses
Allocable to the Premises” shall mean (a) the same proportion
of Landlord’s Operating Expenses for and pertaining to the
Building as the Rentable Floor Area of Tenant’s Space bears
to the Total Rentable Floor Area of the Building plus (b) the same
proportion of Landlord’s Operating Expenses for and
pertaining to the Site as the Rentable Floor Area of Tenant’s
Space bears to the Total Rentable Floor Area of the
Building.
“Base Operating
Expenses” is hereinbefore defined in Section 1.1. Base
Operating Expenses shall not include market-wide cost increases due
to extraordinary circumstances, including but not limited to Force
Majeure (as defined in Section 6.1), conservation surcharges,
boycotts, strikes, embargoes or shortages.
15
“Base Operating
Expenses Allocable to the Premises” means (i) the same
proportion of Base Operating Expenses for and pertaining to the
Building as the Rentable Floor Area of Tenant’s Space bears
to the Rentable Floor Area of the Building plus (ii) the same
proportion of Base Operating Expenses for and pertaining to the
Site as the Rentable Floor Area of Tenant’s Space bears to
the Total Rentable Floor Area of the Building.
In the event that on the
average less than ninety-five percent (95%) of the Rentable Floor
Area of the Building is leased during any calendar year during the
Lease Term (including, without limitation, calendar year 2005 for
purposes of calculating Base Operating Expenses), then
Landlord’s Operating Expenses for each such calendar year
which vary based on the level of occupancy (as, for example,
cleaning expenses) shall be determined by Landlord to be an amount
equal to the Landlord’s Operating Expenses which so vary and
which would normally be expected to have been charged had
ninety-five percent (95%) of the Rentable Floor Area of the
Building been leased during such calendar year. In no event shall
Landlord receive on account of any extrapolation an amount in
excess of actual costs incurred.
If with respect to any
calendar year falling within the Term, or fraction of a calendar
year falling within the Term at the beginning or end thereof, the
Operating Expenses Allocable to the Premises for a full calendar
year exceed Base Operating Expenses Allocable to the Premises, or
for any such fraction of a calendar year exceed the corresponding
fraction of Base Operating Expenses Allocable to the Premises then,
Tenant shall pay to Landlord, as Additional Rent, the amount of
such excess. Such payments shall be made at the times and in the
manner hereinafter provided in this Section 2.6. (The Base
Operating Expenses Allocable to the Premises do not include the
$1.00 for tenant electricity to be paid by Tenant at the time of
payment of Annual Fixed Rent and for which provision is made in
Section 2.5 hereof, separate provision being made in Section 2.8 of
this Lease for Tenant’s share of increases in electricity
costs.)
Landlord’s Operating
Expense records shall be kept on a consistent basis from year to
year. Not later than one hundred and twenty (120) days after the
end of the first calendar year or fraction thereof ending December
31 and of each succeeding calendar year during the Term or fraction
thereof at the end of the Term, Landlord shall render Tenant a
statement in reasonable detail and according to usual accounting
practices certified by a representative of Landlord, showing Base
Operating Expenses and Base Operating Expenses Allocable to the
Premises and also showing for the preceding calendar year or
fraction thereof, as the case may be, Landlord’s Operating
Expenses and Operating Expenses Allocable to the Premises. Said
statement shall be rendered in form substantially similar to the
Operating Expenses Statement Form attached hereto as Exhibit G.
Said statement to be rendered to Tenant shall also show for the
preceding year or fraction thereof as the case may be the amounts
of operating expenses already paid by Tenant as Additional Rent,
and the amount of operating expenses remaining due from, or
overpaid by,
16
Tenant for the year or other
period covered by the statement. Within thirty (30) days after the
date of delivery of such statement, Tenant shall pay to Landlord
the balance of the amounts, if any, required to be paid pursuant to
the above provisions of this Section 2.6 with respect to the
preceding year or fraction thereof, or Landlord shall credit any
amounts due from it to Tenant pursuant to the above provisions of
this Section 2.6 against (i) monthly installments of fixed rent
next thereafter coming due or (ii) any sums then due from Tenant to
Landlord under this Lease (or refund such portion of the
overpayment as aforesaid if the Term has ended and Tenant has no
further obligation to Landlord). Such refund, if any, shall survive
the expiration or earlier termination of this Lease provided Tenant
was not in default at the expiration or termination of this Lease
and provided Tenant does not then have any further obligations to
Landlord. Within ten (10) days after Landlord’s receipt of a
request for explanation from Tenant, Landlord shall provide to
Tenant a reasonable explanation to Tenant of questions relating to
Landlord’s Operating Expenses and such reasonable
documentation of expenses for the year covered by such statement as
Tenant may reasonably request.
In addition, Tenant shall
make payments monthly on account of Tenant’s share of
increases in Landlord’s Operating Expenses anticipated for
the then current year at the time and in the fashion herein
provided for the payment of fixed rent. The amount to be paid to
Landlord shall be an amount reasonably estimated annually by
Landlord to be sufficient to cover, in the aggregate, a sum equal
to Tenant’s share of such increases in operating expenses for
each calendar year during the Term. Any increase in estimated
annual estimated Landlord’s Operating Expenses shall be
accompanied by a reasonable written explanation thereof.
Notwithstanding the foregoing
provisions, no decrease in Landlord’s Operating Expenses
shall result in a reduction of the amount otherwise payable by
Tenant if and to the extent said decrease is attributable to
vacancies in the Buildings rather than to any other
causes.
Upon no less than ten (10)
business days prior notice to Landlord, Tenant, at Tenant’s
expense, may examine Landlord’s books and records regarding
the Operating Expense statement for the year submitted at any
reasonable time specified by Landlord during Landlord’s
business hours at a place designated by Landlord. Tenant shall hold
such books and records in confidence and not disclose the same to
any other party, including, without limitation, any other tenant in
the Building. As a condition precedent to the conduct of any such
audit, Tenant shall execute a confidentiality agreement binding
Tenant and its auditor and all of their respective employees and
agents in such form as determined by Landlord. Landlord shall
reasonably cooperate with any such examination and shall promptly
make such records available to Tenant and Tenant’s
accountant. Such audit right must be exercised within 180 days
following Tenant’s receipt of Landlord’s annual
reconciliation or other statement showing Landlord’s
determination of the Operating Expenses for the subject calendar
year. Any such review or audit shall be limited to
17
the year reflected in such
statement. In the event the audit shows an over-payment, or
mischarged amount, then Landlord shall grant Tenant a rent credit
in the amount previously paid by Tenant or if this Lease has
expired or terminated Landlord shall pay to Tenant such amount
(less any monies owned to Landlord under this Lease), which
obligation shall survive such termination or expiration. All costs
for any such audit shall be paid by Tenant, unless the amount of
the discrepancy is identified to be more than five percent (5%) in
which event Landlord shall pay for the costs of the audit. In no
event shall Tenant employ or otherwise use or engage the services
of any person, firm, consultant, accountant, advisor, agent or
other representative to perform such audit whose fee or
compensation is based in whole or in part on a percentage of the
amount disputed or on a percentage of overpayment or savings or on
any contingent basis.
If with respect to any full
Tax Year or fraction of a Tax Year falling within the Term,
Landlord’s Tax Expenses Allocable to the Premises as
hereinafter defined for a full Tax Year exceed Base Taxes Allocable
to the Premises, or for any such fraction of a Tax Year exceed the
corresponding fraction of Base Taxes Allocable to the Premises
then, on or before the thirtieth (30 th
) day
following receipt by Tenant of the certified statement referred to
below in this Section 2.7, then Tenant shall pay to Landlord, as
Additional Rent, the amount of such excess. Not later than ninety
(90) days after Landlord’s Tax Expenses Allocable to the
Premises are determined for the first such Tax Year or fraction
thereof and for each succeeding Tax Year or fraction thereof during
the Term, Landlord shall render Tenant a statement in reasonable
detail certified by a representative of Landlord showing for the
preceding year or fraction thereof, as the case may be, real estate
taxes on the Building and the Site and abatements and refunds of
any taxes and assessments. Expenditures for legal fees and for
other expenses incurred in seeking the tax refund or abatement may
be charged against the tax refund or abatement before the
adjustments are made for the Tax Year. Said statement to be
rendered to Tenant shall include a copy of the applicable rent
estate tax bill and shall also show for the preceding Tax Year or
fraction thereof as the case may be the amounts of real estate
taxes already paid by Tenant as Additional Rent, and the amount of
real estate taxes remaining due from, or overpaid by, Tenant for
the year or other period covered by the statement. Within thirty
(30) days after the date of delivery of the foregoing statement,
Tenant shall pay to Landlord the balance of the amounts, if any,
required to be paid pursuant to the above provisions of this
Section 2.7 with respect to the preceding Tax Year or fraction
thereof, or Landlord shall credit any amounts due from it to Tenant
pursuant to the provisions of this Section 2.7 against (i) monthly
installments of fixed rent next thereafter coming due or (ii) any
sums then due from Tenant to Landlord under this Lease (or refund
such portion of the over-payment as aforesaid if the Term has ended
and Tenant has no further obligation to Landlord). Such refund, if
any, shall survive the expiration or earlier termination of this
Lease provided was not then in default at the expiration or
termination of this Lease and provided Tenant does not then have
any further obligations to Landlord).
18
In addition, payments by
Tenant on account of increases in real estate taxes anticipated for
the then current year shall be made monthly at the time and in the
fashion herein provided for the payment of fixed rent. The amount
so to be paid to Landlord shall be an amount reasonably estimated
by Landlord to be sufficient to provide Landlord, in the aggregate,
a sum equal to Tenant’s share of such increases, at least ten
(10) days before the day on which such payments by Landlord would
become delinquent.
To the extent that real
estate taxes shall be payable to the taxing authority in
installments with respect to periods less than a Tax Year, the
foregoing statement shall be rendered and payments made on account
of such installments. Notwithstanding the foregoing provisions, no
decrease in Landlord’s Tax Expenses with respect to any Tax
Year shall result in a reduction of the amount otherwise payable by
Tenant if and to the extent said decrease is attributable to
vacancies in the Building or partial completion of the Building
rather than to any other causes.
Terms used herein are defined
as follows:
| |
(i) |
“Tax Year” means the twelve-month period beginning
July 1 each year during the Term or if the appropriate governmental
tax fiscal period shall begin on any date other than July 1, such
other date. |
| |
(ii) |
“Landlord’s Tax Expenses Allocable to the
Premises” shall mean (a) the same proportion of
Landlord’s Tax Expenses for and pertaining to the Building as
the Rentable Floor Area of Tenant’s Space bears to the Total
Rentable Floor Area of the Building plus (b) the same proportion of
Landlord’s Tax Expenses for and pertaining to the Site as the
Rentable Floor Area of Tenant’s Space bears to the Total
Rentable Floor Area of the Building. |
| |
(iii) |
“Landlord’s Tax Expenses” with respect to any
Tax Year means the aggregate real estate taxes on the Building and
Site with respect to that Tax Year, reduced by any abatement
receipts with respect to that Tax Year. |
| |
(iv) |
“Base Taxes” is hereinbefore defined in Section
1.1. |
| |
(v) |
“Base Taxes Allocable to the Premises” means (i)
the same proportion of Base Taxes for and pertaining to the
Building as the Rentable Floor Area of Tenant’s Space bears
to the Total Rentable Floor Area of the Building, plus (ii) the
same proportion of Base Taxes for and pertaining to the Site as the
Rentable Floor Area of Tenant’s Space bears to the Total
Rentable Floor Area of the Building. |
19
| |
(vi) |
“Real estate taxes” means all taxes and special
assessments of every kind and nature and user fees and other like
fees assessed by any governmental authority on the Building or Site
which the Landlord shall become obligated to pay because of or in
connection with the ownership, leasing and operation of the Site,
the Building and the Property and reasonable expenses of and fees
for any formal or informal proceedings for negotiation or abatement
of taxes (collectively, “Abatement Expenses”), which
Abatement Expenses shall be excluded from Base Taxes. The amount of
special taxes or special assessments to be included shall be
limited to the amount of the installment (plus any interest, other
than penalty interest, payable thereon) of such special tax or
special assessment required to be paid during the year in respect
of which such taxes are being determined. There shall be excluded
from such taxes all income, estate, succession, inheritance and
transfer taxes; provided, however, that if at any time during the
Term the present system of ad valorem taxation of real property
shall be changed so that in lieu of the whole or any part of the ad
valorem tax on real property there shall be assessed on Landlord a
capital levy or other tax on the gross rents received with respect
to the Site or Building or Property, or a federal, state, county,
municipal, or other local income, franchise, excise or similar tax,
assessment, levy or charge distinct from any now in effect in the
jurisdiction in which the Property is located) measured by or
based, in whole or in part, upon any such gross rents, then any and
all of such taxes, assessments, levies or charges, to the extent so
measured or based, shall be deemed to be included within the term
“real estate taxes” but only to the extent that the
same would be payable if the Site and Buildings were the only
property of Landlord. |
| |
(vii) |
If during the Lease Term the Tax Year is changed by applicable
law to less than a full 12-month period, the Base Taxes and Base
Taxes Allocable to the Premises shall each be proportionately
reduced. |
If with respect to any
calendar year falling within the Term or fraction of a calendar
year falling within the Term at the beginning or end thereof, the
cost of furnishing electricity to the Premises demised to Tenant,
(excluding electricity for common areas of the Building and Site
and electricity for standard heating, ventilating and
air-conditioning (“HVAC”), all of which shall be
covered by and included in Operating Costs under Section 2.6 hereof
and also excluding utility charges separately chargeable to tenants
for additional or special services as, for example, for
supplemental or additional HVAC services) for a full calendar year
exceeds $1.00 per square foot of Rentable Floor Area of the
Building, or for any such fraction of a calendar year exceeds the
corresponding fraction of $1.00 per square foot of Rentable Floor
Area of the Building, then Tenant shall pay to Landlord, as
Additional Rent, on or before the thirtieth (30 th
) day
following receipt by Tenant of the statement referred to below in
this Section 2.8, its proportionate share of the amount of such
excess (i.e.
20
the same ratio of such excess
as the Rentable Floor Area of Tenant’s Space bears to the
Total Rentable Floor Area of the Building). Payments by Tenant on
account of such excess shall be made monthly at the time and in the
fashion herein provided for the payment of Annual Fixed Rent. The
amount so to be paid to Landlord shall be an amount from time to
time reasonably estimated by Landlord to be sufficient to cover, in
the aggregate, a sum equal to such excess for each calendar year
during the Term. If the Landlord shall reasonably determine that
the cost of the electricity furnished to the Tenant at the Premises
exceeds the amount being paid under Sections 2.5 and 2.8, then the
Landlord may charge the Tenant for such excess and the Tenant shall
promptly pay the same upon billing therefor.
Not later than ninety (90)
days after the end of the first calendar year or fraction thereof
ending December 31 and of each succeeding calendar year during the
Term or fraction thereof at the end of the Term, Landlord shall
render Tenant a reasonably detailed accounting certified by a
representative of Landlord showing for the preceding calendar year,
or fraction thereof, as the case may be, the costs of furnishing
electricity to the Building. Said statement to be rendered to
Tenant also shall show for the preceding year or fraction thereof,
as the case may be, the amount already paid by Tenant on account of
electricity, and the amount remaining due from, or overpaid by,
Tenant for the year or other period covered by the
statement.
| |
2.8.1. |
TENANT ELECTRICITY – CHECK METERS FOR THE PREMISES
. |
| |
(A) |
Landlord shall, at its sole cost and expense, install one or
more check meters (so-called) for the Premises in locations and in
a manner as determined by Landlord. Notwithstanding the provisions
of Section 2.8 and any other Section or provision of this Lease,
commencing on the date the check meter(s) for the Premises becomes
operational and continuing for the Term (as it may be extended)
Tenant shall be check metered and separately billed by Landlord for
all electricity usage related to and/or used respecting the
Premises and all related facilities and equipment (collectively
called the “Premises Electricity”). Landlord shall have
the right to bill Tenant for Premises Electricity on a monthly
basis and Tenant shall pay such monthly Premises Electricity
charges to Landlord within ten (10) days after receipt of
Landlord’s billing therefore. |
From and after the date the
check meter(s) for the Premises are effective and operational, then
thereafter electricity thereafter used and/or consumed for the
Premises shall be paid as provided in this Section 2.8.1. but a
final settling up, adjustment and payment for Premises electricity
used and/or consumed prior to said effective date shall be made in
accordance with Section 2.5 and 2.8 hereof.
21
ARTICLE III
CONDITION OF PREMISES;
ALTERATIONS
| 3.1 |
SUBSTANTIAL COMPLETION . |
| |
(A) |
Plans and Construction Process . |
| |
(1) |
Landlord’s Work . Attached hereto as
Exhibit B is (i) a space plan (“Tenant Plan”) and (ii)
a detailed scope (hereinafter called the “Building Standard
Materials and Turnkey Scope”) showing the work to be
performed by Landlord, at Landlord’s cost and expense, in
order to prepare the Premises for Tenant’s occupancy (such
work being hereinafter referred to as the “Landlord’s
Work”). For the purposes of this Lease, the term
“Landlord’s Work” shall mean all labor, materials
and other work necessary for the construction of the improvements
described in Exhibit B; provided, however, that Landlord shall have
no responsibility for the installation or connection of
Tenant’s computer, telephone, other communication equipment,
systems or wiring. |
| |
(2) |
Additional Tenant Work . Attached hereto as
Exhibit B-1 is a list of items of work included on the Tenant Plan
which is work beyond the scope outlined in the Building Standard
and Materials Turnkey Scope and therefore is not included within
Landlord’s Work (such work being hereinafter referred to as
the “Additional Tenant Work”). For the purpose of this
Lease, the term “Additional Tenant Work” shall mean all
labor, materials and other work necessary for the construction of
the Additional Tenant Work and for the purchase and installation of
the “Tenant’s Supplemental Air-Conditioning
Units” (referred to in Section 3.5 hereof). Landlord’s
Work and the Additional Tenant Work are collectively hereinafter
called the “Work.” |
| |
(3)(a) |
Tenant
Plan Excess Costs . It is understood and agreed that
Landlord shall be responsible for the design costs associated with
the Landlord’s Work and Tenant shall be responsible (as part
of Tenant Plan Excess Costs, as hereinafter defined) for the design
costs associated with the Additional Tenant Work. On or before
January 28, 2005, Landlord shall furnish to Tenant a written
statement of (i) the costs of the Additional Tenant Work including
the “Tenant’s Supplemental A/C Units Costs”
(defined in Section 3.5 hereof) (such costs in the aggregate being
hereinafter referred to as the “Tenant Plan Excess
Costs”), which such costs shall include a construction
management fee equal to 4% of the Additional Tenant Work costs in
excess of $200,000.00 and shall be paid by Tenant as Additional
Rent
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in accordance with Section
3.4 below, and (ii) Landlord’s estimate of any delay which
would likely result in the completion of the Landlord’s Work
as the result of any particular item of Additional Tenant Work. In
addition, Landlord shall not charge the 4% construction management
fee on the cost of Tenant’s installation of its
telecommunications wiring and cabling. Tenant shall be solely
responsible for the installation thereof at its sole cost and
expense and Landlord shall have no obligation to manage or
otherwise oversee the installation thereof but Tenant shall comply
with the provisions of Section 2.2 hereof.
|
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(3)(b) |
Landlord’s Notice to Tenant of Long Lead
Items . On or before January 11, 2005, Landlord shall
furnish to Tenant a written list of “Long Lead Items”
(hereinafter defined), the cost thereof and the length of the lead
time. “Long Lead Items” shall mean any items of Work
for which there is a long lead time in obtaining the materials
therefore or which are specially or specifically manufactured,
produced or milled for the Work in or to the Premises and require
additional time for receipt or installation. |
| |
(4) |
Authorization to Proceed Date; Long Lead Item Release
Date . On or before February 2, 2005 (herein called the
“Authorization to Proceed Date”), Tenant shall give
Landlord written authorization to proceed with the Additional
Tenant Work in accordance with the Tenant’s Plan and Exhibit
B-1 (such notice being referred to as the “Notice to
Proceed”). In addition, Tenant shall promptly execute and
deliver to Landlord any affidavits and documentation required in
order to obtain all permits and approvals necessary for Landlord to
commence and complete the Work on a timely basis (“Permit
Documentation”). |
Further, Tenant shall, on or
before January 14, 2005 (herein called the “Long Lead Item
Release Date”), give Landlord written authorization to
proceed to purchase and/or contract for the “Long Lead
Items” (defined above). Notwithstanding the foregoing, Tenant
acknowledges that (i) certain Long Lead Items may still delay
completion of the Work and thus result in a Tenant Delay even if
Tenant does authorize them on or before the Long Lead Item Release
Date, and (ii) any Long Lead Items which are added as a result of a
change order after the Long Lead Item Release Date may delay
completion of the Work and thus result in a Tenant
Delay.
| |
(5) |
Change
Orders . Tenant shall have the right, in accordance
herewith, to submit for Landlord’s approval change proposals
subsequent to the Notice to Proceed (each, a “Change
Proposal”). Landlord agrees to
|
23
| |
respond to any such Change
Proposal within such time as is reasonably necessary (taking into
consideration the information contained in such Change Proposal)
after the submission thereof by Tenant, advising Tenant of any
anticipated increase in costs (“Change Order Costs”)
associated with such Change Proposal, as well as an estimate of any
delay which would likely result in the completion of the Work if a
Change Proposal is made pursuant hereto (“Landlord’s
Change Order Response”). Tenant shall have the right to then
approve or withdraw such Change Proposal within five (5) business
days after receipt of Landlord’s Change Order Response. If
Tenant fails to respond to Landlord’s Change Order Response
within such five (5) business day period, such Change Proposal
shall be deemed withdrawn. If Tenant approves such Change Proposal,
then such Change Proposal shall be deemed a “Change
Order” hereunder and if the Change Order is made, then the
Change Order Costs associated with the Change Order shall be deemed
additions to the Tenant Plan Excess Costs and shall be paid in the
same manner as Tenant Plan Excess Costs are paid as set forth in
Section 3.4. Notwithstanding the foregoing, if a Change Order
relates to a deletion in any item or component of Work which has
not been contracted for or purchased as of the date of
Landlord’s receipt of Tenant’s Change Proposal
therefore, Tenant shall only be responsible for the increase in the
cost of the item or component of the Work covered by the Change
Order in excess of the deleted item.
|
| |
(6) |
Tenant Response to Requests for Information and
Approvals . Except to the extent that another time period
is expressly herein set forth, Tenant shall respond to any request
from Landlord, Landlord’s architect, Landlord’s
contractor and/or Landlord’s Construction Representative for
approvals or information in connection with the Work, within three
(3) business days of Tenant’s receipt of such
request. |
| |
(7) |
Time of the Essence . Time is of the essence in
connection with Tenant’s obligations under this Section
3.1. |
| |
(1) |
A “ Tenant Delay ” shall be defined
as the following which shall be set forth in writing by Landlord to
Tenant within a reasonable period of time after Landlord learns of
same: |
| |
(a) |
Tenant’s failure to give authorization to Landlord to
proceed to purchase and/or contract for Long Lead Items on or
before the Long Lead Item Release Date,
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24
| |
Tenant’s failure to
give authorization to Landlord to proceed with the Additional
Tenant Work on or before the Authorization to Proceed Date or
Tenant’s failure to provide all required Permit Documentation
to Landlord on or before the Authorization to Proceed Date;
or
|
| |
(b) |
Tenant’s failure timely to respond to any request from
Landlord, Landlord’s architect, Landlord’s contractor
and/or Landlord’s Construction Representative including,
without limitation, within the time periods set forth in Section
3.1(A)(6) above; |
| |
(c) |
Tenant’s failure to pay the Tenant Plan Excess Costs in
accordance with Section 3.4; |
| |
(d) |
Any delay due to items of work for which there is a long lead
time in obtaining the materials therefor or which are specially or
specifically manufactured, produced or milled for the work in or to
the Premises and require additional time for receipt or
installation; |
| |
(e) |
Any delay in the completion of the Work resulting from
particular items of the Additional Tenant Work, including, without
limitation, Change Orders; or |
| |
(f) |
Any other delays caused by Tenant, Tenant’s contractors,
architects, engineers or anyone else engaged by Tenant in
connection with the preparation of the Premises for Tenant’s
occupancy, including, without limitation, utility companies and
other entities furnishing communications, data processing or other
service, equipment, or furniture. |
The Tenant Delays defined in
clauses (a), (b) and (c) of this Section 3.1(B)(1) are sometimes
hereinafter referred to as “Accelerated Rent Tenant
Delays,” the Tenant Delays defined in clauses (d), (e), and
(f) of this Section 3.1(B)(1) are sometimes hereinafter referred to
as “Other Tenant Delays.”
| |
(2) |
Tenant Obligations with Respect to Tenant Delays
. |
| |
(a) |
Tenant
covenants that no Tenant Delay shall delay commencement of the Term
or the obligation to pay Annual Fixed Rent or Additional Rent,
regardless of the reason for
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25
| |
such Tenant Delay or
whether or not it is within the control of Tenant or any such
employee. The Work shall be deemed substantially completed as of
the date when the Work would have been substantially completed but
for any Tenant Delays, as determined by Visnick & Caulfield,
Architects in the exercise of its good faith business
judgment.
|
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(b) |
If any Accelerated Rent Tenant Delays occur: (i) Tenant shall,
for the purpose of reimbursing Landlord for lost rent due to
Landlord’s inability to proceed with the Work as scheduled,
pay to Landlord an amount (“Accelerated Rent Payment”)
equal to one day of Annual Fixed Rent and Additional Rent for each
day of Accelerated Rent Tenant Delay, (ii) the Estimated
Commencement Date shall be extended by each day of Accelerated Rent
Tenant Delay, and (iii) if the Commencement Date occurs before the
Estimated Commencement Date, then any Accelerated Rent Payment paid
by Tenant shall be credited against the Annual Fixed Rent and
Additional Rent payable by Tenant in respect of the period
commencing as of the Commencement Date and ending as of the
Estimated Commencement Date. |
| |
(c) |
Tenant shall reimburse Landlord the amount, if any, by which
the cost of the Work is increased as the result of any Tenant Delay
in excess of the amounts paid under Section 3.1(B)(2)(b) above and
not otherwise credited to Tenant under said Section
3.1(B)(2)(b). |
| |
(d) |
If Landlord claims a Tenant Delay has occurred, Landlord and
Tenant shall reasonably cooperate to revise the project schedule to
the end that, insofar as reasonably feasible, lost time may be made
up but Landlord shall in no event be obligated to engage in
extraordinary efforts. Without limiting the foregoing, Landlord
shall have no obligation to cause any Work to be performed other
than during normal business hours and Landlord shall have no
obligation to pay premium or overtime rates and/or charges. In
determining whether a Tenant Delay has occurred, whether
Accelerated Rent is due or whether Tenant is to reimburse Landlord
on account of increases in cost due to a Tenant Delay only the net
effect on the critical path is to be considered after giving effect
to (i) changes in the work, which eliminate work or require less
work or less costly work than originally contemplated in the
project schedule and in fact reduce the time schedule and (ii) any
mitigation of a delay by means of rescheduling of work subject to
the foregoing. |
26
| |
(e) |
Any amounts due from Tenant to Landlord under this Section
3.1(B)(2) shall be due and payable within thirty (30) days of
billing therefor, and shall be considered to be Additional Rent.
Nothing contained in this Section 3.1(B)(2) shall limit or qualify
or prejudice any other covenants, agreements, terms, provisions and
conditions contained in this Lease. |
| |
(C) |
Substantial Completion of the Work . |
| |
(1) |
Landlord’s Obligations . Subject to Tenant
Delays and delays due to Force Majeure, as defined in Section 6.1
and subject to the provisions of Section 3.1(B)(2), Landlord shall
use reasonable speed and diligence to have the Work substantially
completed on or before the Estimated Commencement Date, but Tenant
shall have no claim against Landlord for failure so to complete
construction of the Work in the Premises, except for the right to
terminate this Lease, without further liability to either party, in
accordance with the provisions hereinafter specified in Section
3.2. |
| |
(2) |
Definition of Substantial Completion . The
Premises shall be treated as having been substantially completed on
the later of: |
| |
(a) |
The date on which the Work, together with common facilities for
access and services to the Premises, has been completed (or would
have been completed except for Tenant Delays) except for items of
work and adjustment of equipment and fixtures which can be
completed after occupancy has been taken without causing material
interference with Tenant’s use of the Premises (i.e.
so-called “punch list” items), and |
| |
(b) |
The date when permission has been obtained from the applicable
governmental authority, to the extent required by law, for
occupancy by Tenant of the Premises for the Permitted Use, unless
the failure to obtain such permission is due to a Tenant
Delay. |
In the event of any dispute
as to the date on which the Work has been substantially completed,
the reasonable determination of Visnick & Caulfield, Architects
as to such date shall be deemed conclusive and binding on both
Landlord and Tenant.
27
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(3) |
Incomplete Work . Landlord shall complete as soon
as conditions practically permit any incomplete items of Work, and
Tenant shall cooperate with Landlord in providing access as may be
required to complete such work in a normal manner. |
| |
(4) |
Early Access by Tenant . Landlord shall permit
Tenant access for installing Tenant’s trade fixtures in
portions of the Premises when it can be done without material
interference with remaining work or with the maintenance of
harmonious labor relations. Any such access by Tenant shall be upon
all of the terms and conditions of the Lease (other than the
payment of Annual Fixed Rent) and shall be at Tenant’s sole
risk, and Landlord shall not be responsible for any injury to
persons or damage to property resulting from such early access by
Tenant. |
| |
(5) |
Prohibition on Access by Tenant Prior to Actual
Substantial Completion . If, prior to the date that the
Premises are in fact actually substantially complete, the Premises
are deemed to be substantially complete pursuant to the provisions
of this Section 3.1 (i.e. and the Commencement Date has therefore
occurred), Tenant shall not (except with Landlord’s consent)
be entitled to take possession of the Premises for the Permitted
Use until the Premises are in fact actually substantially
complete. |
| |
(6) |
Landlord’s Notice of Anticipated Date of
Substantial Completion . Landlord shall give Tenant not
less than fourteen (14) days advance notice of the anticipated date
of substantial completion. |
| |
(7) |
Job meetings and Inspections . Landlord shall
advise Tenant from time to time (which advice may be oral) of the
periodic job meetings to be held respecting the conduct of Work and
Tenant shall have the right to attend such job meetings. In
addition, Tenant shall have the right to enter upon the Premises to
inspect the progress of the Work but only at times when Work is
being performed and in such a manner so as not to interfere with
the progress thereof. |
| 3.2 |
RENT ABATEMENT, OUTSIDE COMPLETION DATE AND
TENANT’S TERMINATION RIGHT . |
(A) In the event that the
Work shall not be substantially completed by the sixtieth
(60 th ) day following the Estimated Commencement Date
and if such failure to substantially complete is not due, in whole
or in part, to any Tenant Delay or to any Change Order, then for
each day that the Commencement Date is delayed beyond the 60
th day following the Estimated Commencement Date,
Landlord shall provide Tenant with one (1) day’s free fixed
rent which shall be in addition to the free rent resulting from the
Rent Commencement Date being the 181 st
following
the
28
Commencement Date. The
provisions of this Section 3.2(A) shall only apply if Tenant does
not terminate this Lease pursuant to Section 3.2(B)
below.
(B) If Landlord shall have
failed substantially to complete the Work on or before the Outside
Completion Date as defined in Section 1.1 hereof (which date shall
be extended automatically for such periods of time as Landlord is
prevented from proceeding with or completing the same by reason of
Force Majeure as defined in Section 6.1 or any act or failure to
act of Tenant which interferes with Landlord’s construction
of the Premises, without limiting Landlord’s other rights on
account thereof), Tenant shall have the right to terminate this
Lease by giving notice to Landlord of Tenant’s desire to do
so before such completion and within the time period from the
Outside Completion Date (as so extended) until the date which is
thirty (30) days subsequent to the Outside Completion Date (as so
extended); and, upon the giving of such notice, the term of this
Lease shall cease and come to an end without further liability or
obligation on the part of either party unless, within thirty (30)
days after receipt of such notice, Landlord substantially completes
the Work to be performed by Landlord pursuant to Section 3.1. In
the event that this Lease shall be terminated pursuant to the
foregoing provisions of this Section 3.2(B), Landlord shall
promptly reimburse Tenant for (a) any Tenant Plan Excess Costs
previously paid by Tenant to Landlord and (b) “Tenant’s
Termination Damages” (hereinafter defined).
“Tenant’s Termination Damages” shall be the
reasonable out of pocket costs and expenses actually paid by Tenant
to third parties unaffiliated and not employed by Tenant for, on
account of or respecting the following in the Premises but not to
exceed $300,00.00 in the aggregate: (i) legal fees paid by Tenant
in negotiating this Lease and in enforcing this Section 3.2(B) in
the event Tenant terminates pursuant hereto, (ii) project
management services of a third party in supervising the
installation of Tenant’s telecommunications equipment; (iii)
consulting services of a third party in supervising the
installation of Tenant’s audio visual equipment; (iv) voice
and data wiring and cabling, (v) video installations in conference
rooms, (vi) wiring and cabling in Tenant’s data center in the
Premises, (vii) purchase and installation of audio amplification
equipment and (viii) interior and exterior signage erected by
Tenant pursuant to Section 8.26 of this Lease. However, there shall
be excluded from Tenant’s Termination Damages the costs and
expenses of any of the foregoing items which are removed by Tenant
or which are reasonably reusable in another location by Tenant. As
a condition to being reimbursed for Tenant’s Termination
Damages, Tenant shall be required to submit to Landlord reasonable
written information evidencing actual payment of the foregoing. In
no event shall Tenant be entitled to any indirect, consequential,
punitive or other damages or any other remedies. Landlord and
Tenant hereby agree that the foregoing right of termination and
payment shall be Tenant’s sole and exclusive remedy for
Landlord’s failure so to complete such Work within such time
and respecting Tenant’s termination under this Section 3.2(B)
or otherwise. Each day of Tenant Delay shall be deemed conclusively
to cause an equivalent day of delay by Landlord in substantially
completing the Work pursuant to Section 3.1, and thereby
automatically extend for each such equivalent day of delay the date
of the Outside Completion Date.
29
| 3.3 |
QUALITY AND PERFORMANCE OF WORK . |
All construction work
required or permitted by this Lease shall be done in a good and
workmanlike manner and in compliance with all applicable laws,
ordinances, rules, regulations, statutes, by-laws, court decisions,
and orders and requirements of all public authorities (“Legal
Requirements”) and all Insurance Requirements (as defined in
Section 5.14 hereof). All of Tenant’s work shall be
coordinated with any work being performed by or for Landlord and in
such manner as to maintain harmonious labor relations. Each party
may inspect the work of the other at reasonable times and shall
promptly give notice of observed defects. Each party authorizes the
other to rely in connection with design and construction upon
approval and other actions on the party’s behalf by any
Construction Representative of the party named in Section 1.1 or
any person hereafter designated in substitution or addition by
notice to the party relying. Except to the extent to which Tenant
shall have given Landlord notice of respects in which Landlord has
not performed Landlord’s construction obligations under this
Article III not later than the end of the twelfth (12
th ) full calendar month next beginning after the
Commencement Date with respect to all of Landlord’s
construction obligations under this Article III including, but not
limited to, the heating, ventilating and air conditioning systems
servicing the Premises, Tenant shall be deemed conclusively to have
approved Landlord’s construction and shall have no claim that
Landlord has failed to perform any of Landlord’s obligations
under this Article III (if any). Landlord agrees to correct or
repair at its expense items which are then incomplete or do not
conform to the work contemplated under the Plans and as to which,
in either case, Tenant shall have given notice to Landlord, as
aforesaid.
| 3.4 |
PAYMENT OF TENANT PLAN EXCESS COSTS AND CHANGE ORDER
COSTS . To the extent, if any, that there are Tenant Plan
Excess Costs as provided in Section 3.1, Tenant shall pay Landlord,
as Additional Rent, fifty percent (50%) of the Tenant Plan Excess
Costs prior to the commencement of Landlord’s Work and the
Additional Tenant Work, provided however, that in the event the
Tenant Plan Excess Costs exceed $100,000.00 (“Maximum
Amount”), then, in addition, Tenant shall pay to Landlord, as
Additional Rent, prior to the commencement of Landlord’s Work
and the Additional Tenant Work, all such Tenant Plan Excess Costs
in excess of the Maximum Amount. Further, if a Change Order results
in “Change Order Costs” (as set forth in Section
3.1(A)(5)), then Tenant shall pay to Landlord, as Additional Rent,
at the time that Tenant approves such Change Order in accordance
with Section 3.1(A)(5), all such Change Order Costs. |
| 3.5 |
TENANT’S SUPPLEMENTAL AIR CONDITIONING UNITS . As
part of the “Additional Tenant Work” (defined in
Section 3.1(A)(2) hereof), Landlord shall
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30
| |
purchase and install three
(3), 5 ton air-conditioning units which shall be for Tenant’s
sole and exclusive supplemental air-conditioning requirements in
the Premises and shall be located on the roof of the Building and
elsewhere in the Premises (“Tenant’s Supplemental Air
Conditioning Units”). The location on the roof shall be as
selected by Landlord. The portion of the Tenant’s
Supplemental Air-Conditioning Units located within the Premises
shall be located either (i) above ceilings, as determined by
Landlord, or (ii) if elsewhere, as suggested by Landlord, then in a
location as reasonably agreed to by Landlord and Tenant. Tenant
shall timely select the units. However, Landlord shall have the
right to approve the units including, without limitation, their
size, weight, style, operating characteristics and aesthetics. The
cost to purchase Tenant’s Supplemental Air-Conditioning Units
and all labor, work and other materials necessary for the
installation of Tenant’s Supplemental Air-Conditioning Units
and their lines, fixtures and all appurtenances (collectively the
“Tenant’s Supplemental A/C Units Costs”) shall be
paid by Tenant as part of Tenant Plan Excess Costs pursuant to
Sections 3.1(A)(3) and 3.4 hereof. From and after Landlord’s
initial installation of the Tenant’s Supplemental Air
Conditioning Units, Tenant shall be solely responsible for the
operation, maintenance, repair and replacement of the same and
Tenant shall be responsible for all utilities’ costs incurred
in operating Tenant’s Supplemental Air Conditioning
Units.
|
ARTICLE IV
LANDLORD’S
COVENANTS; INTERRUPTIONS AND DELAYS
| |
4.1.1 |
(A) SERVICES FURNISHED BY LANDLORD . |
To furnish services,
utilities, facilities and supplies set forth in Exhibit C equal to
those customarily provided by landlords in high quality buildings
in the Boston West Suburban Market subject to escalation
reimbursement in accordance with Section 2.6.
(B) HVAC
MAINTENANCE
Subject to escalation
reimbursement in accordance with Section 2.6, Landlord shall
maintain, repair and make replacements as necessary to operate the
heating, ventilating and air-conditions system (the “HVAC
System”) including periodic cleaning and maintenance of the
ducts and outside components of the HVAC System.
| |
4.1.2 |
ADDITIONAL SERVICES AVAILABLE TO TENANT . |
To furnish, at Tenant’s
expense, reasonable additional Building operation services which
are usual and customary in similar office buildings in the Boston
West Suburban Market upon reasonable advance request of Tenant
at
31
reasonable and equitable
rates from time to time established by Landlord. Tenant agrees to
pay to Landlord, as Additional Rent, the cost of any such
additional Building services requested by Tenant and for the cost
of any additions, alterations, improvements or other work performed
by Landlord in the Premises at the request of Tenant within thirty
(30) days after being billed therefor.
| |
4.1.3 |
ROOF, EXTERIOR WALL, FLOOR SLAB AND COMMON FACILITY
REPAIRS . |
Except for (a) normal and
reasonable wear and use and (b) damage caused by fire and casualty
and by eminent domain, and except as otherwise provided in Article
VI and subject to the escalation provisions of Section 2.6, (i) to
make such repairs to the roof, exterior walls, floor slabs and
common areas and facilities as may be necessary to keep them in
serviceable condition and (ii) to maintain the Building (exclusive
of Tenant’s responsibilities under this Lease) in a first
class manner comparable to the maintenance of similar properties in
the Boston West Suburban Market.
| 4.2 |
INTERRUPTIONS AND DELAYS IN SERVICES AND REPAIRS, ETC
. |
Landlord shall not be liable
to Tenant for any compensation or reduction of rent by reason of
inconvenience or annoyance or for loss of business arising from the
necessity of Landlord or its agents entering the Premises for any
of the purposes in this Lease authorized, or for repairing the
Premises or any portion of the Building however the necessity may
occur. In case Landlord is prevented or delayed from making any
repairs, alterations or improvements, or furnishing any services or
performing any other covenant or duty to be performed on
Landlord’s part, by reason of any cause reasonably beyond
Landlord’s control, including without limitation the causes
set forth in Section 3.2 hereof as being reasonably beyond
Landlord’s control, Landlord shall not be liable to Tenant
therefor, nor, except as expressly otherwise provided in Article
VI, shall Tenant be entitled to any abatement or reduction of rent
by reason thereof, or right to terminate this Lease, nor shall the
same give rise to a claim in Tenant’s favor that such failure
constitutes actual or constructive, total or partial, eviction from
the Premises.
In the event that the
electrical, heating, ventilating, air conditioning, or all elevator
service to the Premises shall be shut down for more than five (5)
full and consecutive business days, then, Tenant shall be entitled
to an abatement of Annual Fixed Rent from the date of the shutdown
of such service to the date such service is restored. Tenant agrees
that if and to the extent such shutdown is covered by
Landlord’s loss of rents coverage, the abatement of Annual
Fixed Rent shall be limited and equal to the “Insurance
Amount” (hereinafter defined). However, if such shutdown of
service is attributable to Landlord’s negligence or willful
conduct, the abatement of Annual
32
Fixed Rent shall not be
limited to the Insurance Amount. The “Insurance Amount”
shall be an amount equal to the payment actually received by
Landlord (but only allocable to and on account of the Premises) for
such shut down of service to the Premises received from
Landlord’s insurance carrier providing such loss of rents
insurance less the amount of any deductible contained in such loss
of rents insurance coverage. Notwithstanding anything herein
contained to the contrary, in no event shall any of the events
referred to in this Section give rise to a claim in Tenant’s
favor that such failure constitutes actual or constructive, total
or partial, eviction from the Premises.
Landlord reserves the right
to stop any service or utility system, when necessary by reason of
accident or emergency, or until necessary repairs have been
completed; provided, however, that in each instance of stoppage,
Landlord shall exercise reasonable diligence to eliminate the cause
thereof. Except in case of emergency repairs, Landlord will give
Tenant reasonable advance notice of any contemplated stoppage and
will use reasonable efforts to avoid unnecessary inconvenience to
Tenant by reason thereof.
| 4.3 |
LANDLORD’S INSURANCE . Landlord shall carry at all
times during the Term of this Lease (i) commercial general
liability insurance with respect to the Building in an amount as
determined by Landlord from time to time, (ii) insurance against
loss or damage with respect to the Buildings covered by the
so-called “all risk” type insurance coverage (including
loss of rents as determined by Landlord) in an amount equal to at
least the replacement value of the Building but whether or not and
in what amounts to maintain coverage for terrorism, the decision as
to the amount of the full replacement coverage for “all
risk” type insurance coverage and the amount of the
deductible shall all be in Landlord’s sole discretion but in
no event shall such insurance be in such amount as would trigger
the application of the co-insurance provision of such policy.
Landlord may also maintain such other insurance as may from time to
time be required by a mortgagee holding a mortgage lien on the
Building. Further, Landlord may also maintain such insurance
against loss of annual fixed rent and additional rent and such
other risks and perils as Landlord deems proper. Any and all such
insurance (i) may be maintained under a blanket policy affecting
other properties of Landlord and/or its affiliated business
organizations, (ii) may be written with deductibles as determined
by Landlord and (iii) shall be subject to escalation reimbursement
in accordance with Section 2.6. |
33
ARTICLE V
TENANT’S
COVENANTS
Tenant covenants during the
Term and such further time as Tenant occupies any part of the
Premises:
To pay when due all fixed
rent and Additional Rent and all charges for utility services
rendered to the Premises (except as otherwise provided in Exhibit
C) and, as further Additional Rent, all charges for additional
services rendered pursuant to Section 4.1.2.
| 5.2 |
REPAIR AND YIELD UP . |
Except as otherwise provided
in Article VI and Section 4.1.3 to keep the Premises in good order,
repair and condition, reasonable wear and tear only excepted, and
all glass in windows (except glass in exterior walls unless the
damage thereto is attributable to Tenant’s negligence or
misuse) and doors of the Premises whole and in good condition with
glass of the same type and quality as that injured or broken,
damage by fire or taking under the power of eminent domain only
excepted, and at the expiration or termination of this Lease
peaceably to yield up the Premises all construction, work,
improvements, and all alterations and additions thereto in good
order, repair and condition, reasonable wear and tear only
excepted, first removing (i) all goods and effects of Tenant except
for the initial Tenant improvements constructed pursuant to Article
III hereof, (ii) to the extent specified by Landlord by notice to
Tenant as set forth in Section 5.14 hereof all alterations and
additions made by Tenant (iii) all partitions and (iv) to the
extent specified by Landlord by notice to Tenant given at least ten
(10) days before such expiration or termination, the wiring for
Tenant’s computer, telephone and other communication systems
and equipment whether located in the Premises or in any other
portion of the Building, including all risers and all alterations
and additions made by Tenant, and in each case repairing any damage
caused by such removal and restoring the Premises and leaving them
clean and neat. Tenant shall not permit or commit any waste, and
Tenant shall be responsible for the cost of repairs which may be
made necessary by reason of damage to common areas in the Building,
to the Site or to the other building caused by Tenant,
Tenant’s agents, contractors, employees, sublessees,
licensees, concessionaires or invitees.
To use and occupy the
Premises for the Permitted Use only, and not to injure or deface
the Premises, Building, the Site or any other part of the Complex
nor to permit in the Premises or on the Site any auction sale,
vending machine, or inflammable fluids or chemicals, or nuisance,
or the emission from the Premises of any objectionable noise or
odor, nor to permit in the Premises anything which will in any way
result in the leakage of fluid or the growth of mold, and not to
use or devote the Premises or any part thereof for any purpose
other than the Permitted Uses, nor any use thereof which is
inconsistent with the maintenance of the Building as an office
building of the first class in the quality of its maintenance, use
and occupancy, or which is improper, offensive, contrary to law or
ordinance or liable to invalidate or increase the premiums for any
insurance on the Building or its contents or liable to
34
render necessary any
alteration or addition to the Building. Further, (i) Tenant shall
not, nor shall Tenant permit its employees, invitees, agents,
independent contractors, contractors, assignees or subtenants to,
keep, maintain, store or dispose of (into the sewage or waste
disposal system or otherwise) or engage in any activity which might
produce or generate any substance which is or may hereafter be
classified as a hazardous material, waste or substance
(collectively “Hazardous Materials”), under federal,
state or local laws, rules and regulations, including, without
limitation, 42 U.S.C. Section 6901 et seq., 42 U.S.C. Section 9601
et seq., 42 U.S.C. Section 2601 et seq., 49 U.S.C. Section 1802 et
seq. and Massachusetts General Laws, Chapter 21E and the rules and
regulations promulgated under any of the foregoing, as such laws,
rules and regulations may be amended from time to time
(collectively “Hazardous Materials Laws”), (ii) Tenant
shall immediately notify Landlord of any incident in, on or about
the Premises, the Building or the Site that would require the
filing of a notice under any Hazardous Materials Laws, (iii) Tenant
shall comply and shall cause its employees, invitees, agents,
independent contractors, contractors, assignees and subtenants to
comply with each of the foregoing and (iv) Landlord shall have the
right to make such inspections (including testing) as Landlord
shall elect from time to time to determine that Tenant is complying
with the foregoing; provided, however, that if any inspection
discloses a use in violation of this Section 5.3, Tenant shall pay
for the Landlord’s out of pocket costs of such inspection.
Notwithstanding the foregoing, Tenant may use normal amounts and
types of substances typically used for office uses provided that
Tenant uses such substances in the manner in which they are
normally used and in compliance with all Hazardous Materials Laws
and other Legal Requirements and provided further that no odors
shall emanate from the Premises which are detectable in any other
portion of the Building or Site.
Landlord represents to Tenant
that, to the best of Landlord’s actual knowledge as of the
date of this Lease, there are no Hazardous Materials in the
Buildings or on the Site which are required to be removed or
otherwise abated in accordance with applicable Hazardous Materials
Laws. Subject to the limitations of Section 8.4 hereof if and to
the extent required to be removed or abated pursuant to the
requirements of Hazardous Materials Laws as set forth in any notice
from applicable governmental authority having jurisdiction, which
notice is not challenged but is accepted by Landlord, Landlord
shall use reasonable efforts to remove or abate as required by
applicable Hazardous Materials Laws Hazardous Materials in the
common areas of the Buildings or the “Base Building”
(as hereinafter defined), provided that the foregoing shall not
apply to (i) requirements of Hazardous Materials Laws resulting
from the use of, or additions, alterations or improvements in, any
tenant space in the Buildings, including the Premises (except that
if the initial improvements to the Premises performed by Landlord
in accordance with Section 3.1 or Section 3.2 hereof triggers
compliance with Hazardous Material Laws, Landlord shall be
responsible for removal or abatement in accordance with such
Hazardous Materials Laws) or (ii) Hazardous Materials which are in
the Building or on the Site because of the action or inaction of
any tenant or occupant in the Complex, including
35
Tenant, or any employee,
agent or contractor thereof, or (iii) any tenant space in the
Building, including the Premises, and any additions, alterations
and improvements therein. In addition, Landlord shall be
responsible for the initiation and performance on a regular basis
of an Operations and Maintenance Plan Regarding any Hazardous
Materials existing in the Building or on the Site existing prior to
the execution of this Lease. For purposes of this Section, the
“Base Building” shall mean the structural elements of
the Building and the heating, ventilating and air conditioning,
electrical and plumbing systems and equipment bringing primary
service to the tenant spaces in the Buildings. Subject to the
limitations of Section 8.4 hereof, Landlord agrees to indemnify and
save Tenant harmless from liability, loss and damage to persons or
property and from any claims, actions, proceedings and expenses in
connection therewith resulting from (x) the failure of Landlord to
fulfill its obligations under the preceding sentence or (y) any
releases of Hazardous Materials within the Buildings or on the Site
that occurred prior to the Date of this Lease; provided, however,
that in no event shall the foregoing indemnity render Landlord
liable for any loss or damage to Tenant’s personal property,
fixtures or equipment and Landlord shall in no event be liable for
indirect, consequential or punitive damages.
| 5.4 |
OBSTRUCTIONS; ITEMS VISIBLE FROM EXTERIOR; RULES AND
REGULATIONS . |
Not to obstruct in any manner
any portion of the Building not hereby leased or any portion
thereof or of the Additional Building or of the Site used by Tenant
in common with others; not without prior consent of Landlord to
permit the painting or placing of any signs (except for such
signage as is permitted pursuant to Section 8.26 hereof), curtains,
blinds, shades, awnings, aerials or flagpoles, or the like, visible
from outside the Premises; and to comply with all reasonable Rules
and Regulations now or hereafter made by Landlord, of which Tenant
has been given notice and which are applicable to all tenants
generally of the Building, for the care and use of the Building and
Site and their facilities and approaches; Landlord shall not be
liable to Tenant for the failure of other occupants of the
Buildings to conform to such Rules and Regulations.
To keep the Premises equipped
with all safety appliances required by any public authority because
of any use made by Tenant other than normal office use, and to
procure all licenses and permits so required because of such use
and, if requested by Landlord, to do any work so required because
of such use, it being understood that the foregoing provisions
shall not be construed to broaden in any way Tenant’s
Permitted Use.
| 5.6 |
ASSIGNMENT; SUBLEASE . Except as otherwise expressly
provided herein, Tenant covenants and agrees that it shall not
assign, mortgage, pledge, hypothecate or otherwise transfer this
Lease and/or Tenant’s interest in this Lease or sublet
(which
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36
| |
term, without limitation,
shall include granting of concessions, licenses or the like) the
whole or any part of the Premises. Any assignment, mortgage,
pledge, hypothecation, transfer or subletting not expressly
permitted in or consented to by Landlord under Sections 5.6.1-5.6.5
shall be void, ab initio; shall be of no force and effect; and
shall confer no rights on or in favor of third parties. In
addition, Landlord shall be entitled to seek specific performance
of or other equitable relief with respect to the provisions
hereof.
|
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5.6.1 |
Notwithstanding the foregoing provisions of Section 5.6 above
and the provisions of Sections 5.6.2 and 5.6.4 below, but subject
to the provisions of Sections 5.6.3, and 5.6.5 below, Tenant shall
have the right, without Landlord’s consent, to assign this
Lease or to sublet the Premises (in whole or in part) to (a) an
entity succeeding to the business and assets of Tenant whether by
way of merger or consolidation or by way of acquisition of all or
substantially all of the assets of Tenant (including, without
limitation, a transfer of this Lease by assignment to such
successor entity); provided that the acquiring entity is as a
matter of law, or otherwise agrees directly with Landlord to be,
directly and primarily obligated under this Lease, (b) an entity
which is either the parent of Tenant, controlled by Tenant or under
common control with Tenant (herein called an
“Affiliate”); provided that such assignee is as a
matter of law, or otherwise agrees directly with Landlord to be,
directly and primarily obligated under this Lease; or (c) a
partnership or joint venture in which Tenant (or an entity
described in items (a) or (b) above) is a bonafide partner or joint
venturer owning at least fifty one percent (51%) of all ownership
interests in such partnership or joint venture and possess at least
fifty one percent (51%) of the voting rights in such partnership or
joint venture; provided that such partnership or joint venture is
as a matter of law, or otherwise agrees directly with Landlord to
be, directly and primarily obligated under this Lease. However, it
shall be a condition to any such assignment or sublease under this
Section 5.6.1 that the entity to which this Lease is so assigned or
which so sublets the Premises has reasonable financial standing and
capability to perform the obligations of Tenant under this Lease as
and when due or required. If any Affiliate of Tenant to which this
Lease is assigned or the Premises sublet (in whole or in part)
shall cease to be such a parent or subsidiary corporation, such
cessation shall be considered an assignment or subletting requiring
Landlord’s consent. |
| |
5.6.1.1 |
Notwithstanding the provisions of Section 5.6 above but subject
to the provisions of this Section 5.6.1.1 and the provisions of
Sections 5.6.3, 5.6.4 and 5.6.5, Tenant may sublease less than
forty percent (40%) of the Rentable Floor Area of the Premises in
the aggregate provided that in each instance Tenant first obtains
the express prior written consent of Landlord, which consent shall
not be unreasonably withheld or delayed. In determining for the
purposes of the foregoing whether forty percent (40%) or more of
the Rentable Floor Area of the Premises have been sublet,
assignments or subleases made pursuant to Section 5.6.1 hereof
shall not be included. Tenant may sublease at a rent and other
charges payable by the proposed subtenant that may be lower than
the market rent and other charges for first class office
space.
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37
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However, Landlord shall
not be deemed to be unreasonably withholding its consent to such a
proposed subleasing if:
|
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(a) |
the proposed subtenant is (i) a tenant or subtenant in the
Building and there is available space in the Building that could
accommodate the requirement of such tenant or subtenant within six
(6) months of the date Tenant proposes to be the Commencement Date
for its proposed sublease, (ii) in active negotiation (as evidenced
by the receipt by Landlord of a request for proposal to lease from
such party no more than ninety (90) days prior to Tenant’s
request for consent) with Landlord for premises in the Building or
or (iii) not of a character consistent with the operation of a
first class office building (by way of example, Landlord shall not
be deemed to be unreasonably withholding its consent to an
assignment or subleasing to any governmental or quasi-governmental
agency). From time to time during the Lease Term, Tenant shall have
the right by written notice (“Tenant’s Notice”)
to submit to Landlord a list of prospective parties with whom
Tenant would like to propose sublease or assignment terms. Within
seven (7) days following Landlord’s receipt of Tenant’s
Notice, Landlord shall advise Tenant whether or not Landlord is in
active negotiations with any such prospective parties identified in
Tenant’s Notice; |
| |
(b) |
the proposed subtenant does not possess reasonably adequate
financial capability to perform the obligations of the subtenant
under the sublease as and when due or required, or |
| |
(c) |
the subtenant proposes to use the Premises (or part thereof)
for a purpose other than the purpose for which the Premises may be
used as stated in Section 1.1 hereof, or |
| |
(d) |
the character of the business to be conducted or the proposed
use of the Premises by the proposed subtenant or assignee shall (i)
be likely to materially increase Landlord’s Operating
Expenses beyond that which Landlord incurs for use by Tenant; (ii)
be likely to materially increase the burden on elevators or other
Building systems or equipment over the burden prior to such
proposed subletting; or (iii) violate or be likely to violate any
provisions or restrictions contained herein relating to the use or
occupancy of the Premises, or |
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(e) |
there shall be existing an Event of Default (defined in section
7.1), or |
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(f) |
any part of
the rent payable under the proposed sublease shall be based in
whole or in part on the income or profits derived from the Premises
or if proposed sublease shall potentially have any
adverse
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38
| |
effect on the real estate
investment trust qualification requirements applicable to Landlord
and its affiliates.
|
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5.6.2 |
Notwithstanding the provisions of Section 5.6. above, but
subject to the provisions of this Section 5.6.2 and the provisions
of Sections 5.6.3, 5.6.4 and 5.6.5 below, Tenant covenants and
agrees not to assign this Lease or to sublet forty percent (40%) or
more of the Rentable Floor Area of the Premises (which shall be
deemed to include, without limitation, any proposed subleasing
which together with prior subleasings would result in an area equal
to or greater than forty percent (40%) of the Rentable Floor Area
of the Premises in the aggregate being the subject of one or more
subleases) without, in each instance, having first obtained the
prior written consent of Landlord, which consent shall not be
unreasonably withheld or delayed. In determining for the purposes
of the foregoing whether forty percent (40%) or more has been
sublet, assignments or subleases made pursuant to Section 5.6.1
hereof shall not be included. Tenant may sublease at a rent and
other charges payable by the proposed subtenant that may be lower
than the market rent and other charges for first class office
space. However, Landlord shall not be deemed to be unreasonably
withholding its consent to such a proposed assignment or subleasing
if: |
| |
(a) |
the proposed assignee or subtenant is (i) a tenant or subtenant
in the Building and there is available space in the Building that
could accommodate the requirement of such tenant or subtenant
within six (6) months of the date Tenant proposes to be the
Commencement Date for its proposed sublease, (ii) in active
negotiation (as evidenced by the receipt by Landlord of a request
for proposal to lease from such party no more than ninety (90) days
prior to Tenant’s request for consent) with Landlord for
premises in the Building or (iii) not of a character consistent
with the operation of a first class office building (by way of
example, Landlord shall not be deemed to be unreasonably
withholding its consent to an assignment or subleasing to any
governmental or quasi-governmental agency). From time to time
during the Lease Term, Tenant shall have the right by written
notice (“Tenant’s Notice”) to submit to Landlord
a list of prospective parties with whom Tenant would like to
propose sublease or assignment terms. Within seven (7) days
following Landlord’s receipt of Tenant’s Notice,
Landlord shall advise Tenant whether or not Landlord is in active
negotiations with any such prospective parties identified in
Tenant’s Notice; |
| |
(b) |
the proposed assignee or subtenant does not possess reasonably
adequate financial capability to perform the obligations of the
Tenant under this Lease (in the case of an assignment) or of the
subtenant under the sublease (in the case of a sublease) as and
when due or required, |
39
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