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Exhibit
10.46
EXECUTION COPY
THIS INDENTURE OF LEASE dated
as of the 11 th day
of July, 2006 (“Execution Date”), is made by and
between 445 Simarano Drive, Marlborough LLC, a Massachusetts
limited liability company with offices c/o Ram Management Co.,
Inc., 200 U.S. Route One, Suite 200, Scarborough, Maine 04074
(hereinafter called the “Landlord”) and Cytyc
Corporation, a Delaware corporation with a mailing address of 250
Campus Drive, Marlborough, Massachusetts 01752 (hereinafter called
the “Tenant”).
WITNESSETH that for and in
consideration of the rents herein reserved and the covenants and
agreements herein contained and expressed and to be kept, performed
and fulfilled, the parties agree as follows:
Section 1 - Premises;
Building; Land; Landlord’s Work .
(A) Landlord hereby demises
and lets unto Tenant, and Tenant hereby leases from Landlord a
portion of the building at 445 Simarano Drive, Marlborough,
Massachusetts (the “Building”), the leased premises is
deemed to contain 129,588 rentable square feet on the first floor
and 15,939 rentable square feet of second floor office space (a
total of 145,527 rentable square feet), and shown as the building
space highlighted on Exhibit A annexed hereto (the
“Premises”) and use, in common with others, of such
easements and appurtenances necessary for access to the Premises
(as defined herein). The Building is located on the parcel of land.
(“Land”) shown on Exhibit A-1 . The legal
description of the Land is set forth on Exhibit A-2 . The
Building, the Land, all improvements located on the Land, and all
rights of way and easements appurtenant thereto are herein referred
to as the “Property”. Tenant shall have access to the
Premises on a 24 hour, 365 days per year basis. The Landlord shall
provide Tenant, at no charge, with parking based on a ratio of 2.3
cars per 1,000 square feet based on the total rentable square feet
of the building (175,763 sf.). In addition, included within the
above-referenced allotment of parking spaces, Landlord shall
provide Tenant at no charge approximately 108 designated spaces
(the upper parking lot servicing the second floor) for
Tenant’s exclusive use. All other parking spaces shall be for
use by Tenant in common with other tenants in the Building (except
for such parking spaces that are provided to Cascade
Promotions’ space for its exclusive use), all of which
parking spaces shall be located within the Building’s parking
areas, all as set forth on Exhibit A-1 .
(B) The Landlord shall
provide the Vanilla Box and Base Building standard in accordance
with the terms and conditions set forth in Exhibit B
attached hereto and made a part hereof (“Landlord’s
Work”). Landlord shall complete the following items of
Landlord’s Work as follows: (1) Landlord’s work on
Exhibit B attached hereto on or before July 14, 2006,
subject to force majeure to the extent stated in Exhibit B: Items
1, 2 and 7; (2) Landlord’s Work on Exhibit K 2,
3, and 6 on or before July 14, 2006, subject to force majeure
to the extent stated in Exhibit K , and (3) all other
items of Landlord’s Work set forth on Exhibits B and K,
within the timeframes set in said Exhibits B and K, subject to
force majeure and delays in installation up to a maximum of thirty
(30) days. All other work, permits and approvals shall be at
Tenant’s sole cost and expense and as set forth in
Section 15 below. Otherwise, except as expressly set forth in
this Lease, the Landlord shall provide the Tenant with the Premises
in “broom clean” condition and “as is.” In
addition, the Landlord shall provide a Tenant Improvement Allowance
of $1,150,000 for Tenant’s construction work in the space in
accordance with the terms and conditions set forth in
Section 15 below.
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(C) Subject to the force
majeure provision set forth in Section 1(B) above, in the
event that Landlord’s Work (as described on Exhibit B)
is not substantially completed as of the Rent Commencement Date,
Landlord shall provide Tenant with one-half day’s free Base
Rent (as liquidated damages) for each day of delay in
Landlord’s substantial completion after the Rent Commencement
Date. If such delay continues beyond thirty (30) days,
Landlord shall provide Tenant with one day’s free Base Rent
(as liquidated damages) for each day of such further
delay.
(D) Seismic Provision.
Landlord agrees to engage a reputable seismic expert to determine
whether the Building requires upgrading in order to comply with
Massachusetts law. Landlord shall, by July 14, 2006 (subject
to Landlord’s right to extend to July 21, 2006 if
requested by its seismic expert, deliver to Tenant a report from
such expert setting forth such expert’s opinion as to whether
the Building requires such upgrade work. If required by such
report, Landlord will perform work to upgrade the Building so long
as the Landlord’s cost of such work does not exceed $150,000
and the Tenant shall contribute the next $75,000 of said cost. To
the extent the cost of such required work is less than $150,000,
such savings shall inure to Landlord’s benefit. If Landlord
does not deliver such report to Tenant on the date set forth above,
or if the cost of such work exceeds $225,000 and the Landlord and
Tenant cannot agree on allocation of the additional cost, then
either party shall have the right, exercisable upon written notice
to the other party to terminate this Lease. Any work required by
such expert’s report shall be completed by the Rent
Commencement Date, subject to force majeure up to a maximum of
thirty (30) days.
(E) In the event that an
additional handicapped chairlift is required to be installed to
comply with applicable law, Landlord shall perform all work
necessary to install such chair lift and Tenant agrees to pay 1/3
of the cost of such work up to a maximum of $25,000. Such work, if
required, shall be completed by November 1, 2006, subject to
force majeure up to a maximum extension of thirty
(30) days.
Section 2 - Term;
Term Commencement Date; Rent Commencement Date; Tenant Work;
Landlord Delays ,
(A) The term of this Lease
shall commence as of the Term Commencement Date, as hereinafter
defined. The Term Commencement Date shall be defined as the date
that Landlord delivers the Premises to Tenant in a condition which
will allow Tenant to commence Tenant’s Work, with the
Landlord’s Work identified in items numbered 1, 2 and 7 in
Exhibit B complete and with the items numbered 2, 3 and 6 in
Exhibit K complete, and shall, subject to the provisions of
this Lease, terminate as of the date (“Termination
Date”) which is twelve (12) years and three
(3) months commencing on the Rent Commencement Date, except
that if the Rent Commencement Date occurs on other than the first
day of a calendar month, then the Termination Date shall be the
last day of the calendar month which the date twelve years and
three months after the Rent Commencement Date occurs.
(B) The “Rent
Commencement Date” shall be defined as the date one hundred
twenty (120) days after the Term Commencement Date, except
that, in the event that Tenant’s Work is delayed by any
Landlord Delays, as hereinafter defined, the Rent Commencement Date
shall be extended by the period of any Landlord Delays; whether it
has been delayed by force majeure
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The parties shall, promptly after the
occurrence of the Rent Commencement Date, execute a written
agreement confirming the Term Commencement Date, the Rent
Commencement Date, and the Termination Date.
(C) “Tenant Work”
shall be defined as all work to be performed by Tenant in the
initial preparation of the Premises for Tenant’s occupancy.
Landlord shall, at no cost to Landlord (except that the Tenant
Improvement Allowance may be applied to such costs), cooperate with
Tenant in such manner as Tenant may reasonably request, in
obtaining all permits and approvals necessary for the performance
of Tenant’s Work and Tenant’s use of the
Premises.
(D) “Landlord
Delays” shall be defined as any delay in the performance of
the Tenant Work by reason of: (i) the default or delay of
Landlord, or Landlord’s agents, employees or contractors,
(ii) Landlord’s failure, for any reason, to complete all
of Landlord’s Work on or before the date one hundred twenty
(120) days after the Term Commencement Date; whether it has
been delayed by force majeure, or (ii) Tenant’s
inability to obtain a building permit or certificate of occupancy
solely based upon the non-compliance of the exterior common areas
of the Building, and the common vestibule located behind the
Cascade Promotions’ space, or the Property with applicable
laws, ordinances or regulations (collectively
“Laws”).
(E) If the Term Commencement
Date does not occur on or before August 15, 2006 for any
reason, subject to extension in the event of force majeure not
exceeding 30 days, then Tenant shall have the right to terminate
this Lease upon written notice to Landlord.
Section 3 - Rent
Commencement Date and Rent Rate .
(A) For the purposes of this
Section 3, “Rent Month” shall be defined as any
calendar month during the term of this Lease commencing as of the
Rent Commencement Date, or on the same day of the months following
the Rent Commencement Date. For example, if the Rent Commencement
Date occurs on December 15, 2006, then Rent Month 1 shall be
the period commencing as of December 15, 2006 and ending as of
January 14, 2007, Rent Month 2 shall be the period commencing
as of January 15, 2007 and ending as of February 14,
2007, etc.
(B) For the purposes of this
Section 3, “Rent Year” shall be defined as any
twelve month period during the term commencing as of the Rent
Commencement Date, or as of any anniversary of the Rent
Commencement Date.
(C) Commencing on the Rent
Commencement Date, Tenant shall pay to Landlord rent (“Base
Rent”) for the Premises monthly, in advance, on or before the
first day of each month (prorated for any partial month), with
first Rent Year’s rent being paid on a phase-in basis, as
follows:
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Period
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Rent per rentable
square foot per annum |
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Total Period Rent |
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Monthly Rent |
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Rent Months 1-6 Base Rent payable on
20,000 sf
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$ |
6.35 |
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$ |
63,500 |
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$ |
10,583 |
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Rent Months 7-9 Base Rent payable on
80,000 sf
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$ |
6.35 |
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$ |
127,000 |
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$ |
42,333 |
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Rent Months 10-12 Base Rent payable on
125,000 sf
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$ |
6.35 |
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$ |
198,437 |
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$ |
66,146 |
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Rent Years 2-3 Base Rent payable on
145,527 beginning on the first anniversary of the Rent Commencement
Date (subject to the provisions of Section 8 below)
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$ |
6.35 |
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$ |
924,096 |
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$ |
77,008 |
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Rent Years 4-6
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$ |
6.75 |
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$ |
982,307 |
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$ |
81,859 |
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Rent Years 7-9
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$ |
7.50 |
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$ |
1,091,453 |
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$ |
90,954 |
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Rent Years 10-the end of the initial
term
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$ |
8.25 |
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$ |
1,200,598 |
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$ |
100,050 |
Section 4 Additional
Rent .
(A) Operating
Costs,
(1) Commencing as of the Rent
Commencement Date, and continuing thereafter throughout the term of
this Lease, Tenant shall pay to Landlord, as Additional Rent,
Tenant’s Proportionate Share (as hereinafter defined) of all
of the costs of the Property (“Operating Costs”).
Operating Costs may include, but shall not be limited to: i)
cleaning and maintenance of the common areas, ii) clearing and snow
removal from parking area, access drives, and all other paved areas
on the Land, iii) insurance carried by Landlord with respect to the
Property in accordance with the provisions of this Lease
(“Insurance Costs”), iv) landscaping and grounds care,
v) repairs and maintenance of the buildings and improvements on the
Property, vi) maintenance and other costs related to water, sewer,
septic, storm drainage and other utility services provided to the
Property to the extent such utilities are not separately metered to
the Premises and other tenant premises in the Property, and vi)
parking lot and exterior lighting maintenance and repairs.
Operating Costs shall not include Excluded Costs, as hereinafter
defined.
(2) In the event that Tenant
leases the ROFO Space (as defined below) and becomes the sole
Tenant of the Building, Landlord shall, on or before the
December 1 immediately preceding each calendar year during the
term of this Lease, provide to Tenant, for Tenant’s written
approval, a budget for Operating Costs for such calendar year.
Tenant shall not unreasonably withhold its approval of such budget
and Tenant shall, within fifteen (15) days after its receipt
of such budget, advise Landlord as to whether it approves such
budget. Any dispute as to any such budget shall be submitted to
arbitration in accordance with Section 48 hereof.
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(3) Intentionally
deleted.
(B) Property Management
Fee Rent. Commencing as of the Rent Commencement Date, and
continuing thereafter throughout the term of this Lease, Tenant
shall pay to Landlord, as Additional Rent, Property Management Fee
Rent equal to three (3%) percent of the sum of: (i) Base
Rent, (ii) Operating Costs, and (iii) Taxes payable by
Tenant to Landlord, from time to time, pursuant to the provisions
of this Lease. Notwithstanding the foregoing, if Tenant exercises
its right of first refusal and becomes sole tenant in building,
Tenant may have the option to manage the property, pursuant to
Section 21, and then, from and after the date that Tenant
commences to manage the Property, Tenant shall be obligated to pay
a one and one-quarter percent (1.25%) Property Management Fee
to Landlord for asset management.
(C) Taxes. Subject to
Section 4(E), commencing as of the Rent Commencement Date,
Tenant shall pay to Landlord, as Additional Rent, Tenant’s
Proportionate Share of Taxes, as hereinafter defined. The term
“Taxes” as used in this paragraph shall be deemed to
include all assessments, impositions and other governmental
charges, ordinary and extraordinary, which may be levied, assessed
or otherwise become a lien upon or charge against the Property.
Landlord hereby represents to Tenant that, as of the Execution Date
of this Lease, there are no betterments or special assessments
affecting the Property. Betterments and special assessments shall
only be included Taxes as if, and to the extent, the same were
payable over the longest period of time permitted by Law.
Notwithstanding anything to the contrary herein contained, Taxes
shall exclude: (i) all excess profits taxes, franchise taxes,
corporate excise taxes, gift taxes, capital stock taxes,
inheritance and succession taxes, estate taxes, federal and
commonwealth/state income taxes, and other taxes to the extent
applicable to Landlord’s general or net income (unless such
tax is a substitute for or supplementary to an ad valorem property
tax); and (ii) any penalties or interest caused by late
payment of Taxes by Landlord which is not caused by the late
payment of Taxes by Tenant.
(D) Payment Procedures
.
(1) Additional rent shall be
paid in monthly installments, due with the monthly payments of the
Base Rent, based on the estimated budget provided by Landlord to
Tenant. Landlord shall, on or before the date one hundred twenty
(120) days after the end of each calendar year during the term
of the Lease, reconcile actual costs and expenses with the budget
figures and make appropriate adjustments with Tenant. As part of
such annual reconciliation, the Landlord shall provide Tenant with
a detailed statement of actual costs and expenses (“Year End
Statement”) in Landlord’s normal format. Tenant shall,
within thirty (30) days after such delivery, pay
Tenant’s share to Landlord, as Additional Rent, less any
estimated payments. If the estimated payments exceed Tenant’s
share, then the excess shall be applied against the next
installment(s) of Base Rent and Additional Rent payable by Tenant,
except that, with respect to the reconciliation for the last year
of the term of the Lease, Landlord shall, at the time that it
delivers the Year End Statement for such year, reimburse Tenant for
any overpayment by Tenant, to the extent that such overpayment
exceeds any amounts then due from Tenant to Landlord.
(2) If Tenant provides a
written request to Landlord within one hundred and eighty
(180) days after receipt of the Year End Statement provided in
this Section 4(D), Tenant shall be entitled, during reasonable
business hours, to review Landlord’s books and records on
which Landlord has calculated Additional Rent. Notwithstanding the
foregoing, if, in performing any such audit, Tenant discovers any
errors, Tenant shall have the right to review Landlord’s
books
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and records for the one (1) year
immediately preceding the year in question solely for the purpose
of determining whether such errors were made in the preceding year.
If Tenant’s review establishes any overpayment by Tenant,
Landlord shall either, at Landlord’s option, credit such
amount to Tenant’s next payment of Additional Rent, or refund
such amounts within thirty (30) days after receipt of
Tenant’s calculations; if Tenant’s review discloses any
underpayment by Tenant, Tenant shall pay such amounts within thirty
(30) days from the time it calculates, or receives the
calculation of such amounts. If, after performing any such audit,
it is determined that Landlord has overbilled Tenant by more than
5% for the year in question, Landlord shall reimburse Tenant
for its reasonable out-of-pocket costs incurred in performing such
audit. Such audits may be performed by Tenant’s certified
public account or by Tenant’s internal auditors but in no
event shall any such examiner be compensated on a percentage basis
of any recovery from Landlord.
(E) Initial Budget;
Phasing of Tenant’s Obligation to Pay Taxes. During
calendar year 2006 the estimated budget for Additional Rent shall
be $2.42 per rentable square foot ($1.50 per rentable square foot
for Operating Costs and Property Management Fee Rent and $.92 per
rentable square foot for Taxes). Tenant shall be responsible for
Operating Costs) on the entire 145,527 square feet of the Premises
commencing on the Rent Commencement Date. Tenant obligation to pay
Taxes shall be phased in the same proportion that Tenant’s
obligation to pay Base Rent is phased as set forth in
Section 3 above.
(F) Tenant’s
Proportionate Share. For the purposes of this Lease,
Tenant’s Proportionate Share is the product of the rentable
area of the Premises divided by the rentable area of the Building.
At the time of signing of this Lease, such Tenant’s
Proportionate Share is expected to be eighty-two and eight-tenths
percent (82.8%), based on one hundred forty five thousand five
hundred twenty seven (145,527) square feet divided by one
hundred seventy five thousand seven hundred sixty three square feet
(175,763) square feet, the rentable square footage of the
Property.
Section 5 - Payment
of Rent and Late Charges . Payments due under Sections 3 and 4
above shall be made at Landlord’s office at the address set
forth in Section 37, or such other place as Landlord may
designate in writing, on or before the first of each month. If any
installment of Base Rent shall not be received by Landlord or
Landlord’s designee within five (5) business days
following the due date (provided, however, Landlord shall be
required to give written notice to Tenant of such failure and
Tenant shall have a cure period of five (5) business days once
in any twelve month period, after which the late charge shall apply
without notice), or within five (5) business days following
written notice that such amount was not paid when due for
Additional Rent, then Tenant shall pay to Landlord a late charge
equal to five percent (5%) of the overdue amount; provided,
however, that Landlord hereby agrees to waive the first such late
charge in any 12 month period. In addition to the late charge
described above, any Rent or other amounts owing hereunder which
are not paid within ten (10) days following the due date shall
bear interest from the date when due until paid at an annual
interest rate equal to the prime rate, as stated under the column
“Money Rates” in The Wall Street Journal , plus
four (4%) percent (“Lease Interest Rate”);
provided, however, in no event shall such annual interest rate
exceed the highest annual interest rate permitted by applicable
Law. All payments under this Lease shall be paid to Landlord
without notice or demand, and without abatement, deduction,
counterclaim or set-off, except to the extent otherwise expressly
set forth herein.
Section 6 - Security
Deposit . Intentionally Omitted.
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Section 7 –
Option to Extend.
(A) Subject to the terms and
conditions in this Section 7, Tenant shall have the right and
option to extend the term of this Lease for two
(2) consecutive additional periods (“Extension
Terms”) of five (5) years each commencing on the
expiration of the original term or the then Extension Term, upon
all the terms and conditions of this Lease except for Base Rent.
Base Rent during the Extension Term shall be at the greater of the
Base Rent paid during the immediately preceding lease year or
ninety five percent (95%) of the then fair market rent
(“Fair Market Rent”) for the Premises, as defined
below. Tenant may exercise its option to extend only if Tenant is
not then (i.e. as of the giving of Tenant’s Exercise Notice,
as hereinafter defined) in default in performance or observance of
any term or condition of this Lease, after the giving of any
applicable notice and the expiration of any applicable grace
period. In addition, if, as of the commencement of the First
Extension Term, either: (i) Tenant’s interest in this
Lease has been assigned to anyone other than a Permitted Transferee
(as defined in Section 22 hereof), or (y) Tenant has
subleased more than fifty (50%) of the rentable area of the
Premises to anyone other than a Permitted Transferee, then Tenant
shall not have the right to extend the term of the Lease for the
Second Extension Term. Tenant may exercise its options to extend
only by delivering notice (“Tenant’s Exercise
Notice”) of its intent to extend the term hereof to Landlord
on or after the date eighteen (18) months prior to the
expiration of the then current term of the Lease, but on or before
the date twelve (12) months prior to the expiration of the
then current term of the Lease, time being of the essence. If
Tenant fails timely to give Tenant’s Exercise Notice, as
aforesaid, Tenant’s option shall utterly expire, time being
of the essence. Following the timely exercise by Tenant of its
option to extend the term hereof, the term of the Lease shall,
subject to Section 7(D), be deemed to be extended for the
Extension Term in question, without the need for further act or
deed by either party.
(B) The Fair Market Rent
shall mean the rent then being paid by tenants for leases entered
into as of the date in question for premises similar to the
Premises in buildings which are comparable to the Building in terms
of age, quality of construction, level of service and amenities,
size and appearance and located in Southborough, Northborough,
Marlborough and Westborough, Massachusetts. Fair Market Rent shall
take into account all relevant factors, including, without
limitation, whether the tenant is paying additional rent on a gross
basis or on a net basis, as well as free rent, landlord
construction allowances, and other economic concessions then being
provided by landlords to tenants. Fair Market Rent shall not take
into account the value of any leasehold improvements made by Tenant
to the extent that the same have been paid for by
Tenant.
(C) Tenant may, on or after
the date fifteen (15) months prior to the end of the then
current term, request that Landlord provide Tenant with
Landlord’s determination of Base Rent for the Extension Term
in question, and Landlord shall provide Tenant with
Landlord’s determination of said Base Rent in writing within
fifteen (15) business days of Landlord’s receipt of such
request. If Tenant does not agree with Landlord’s
determination, then Tenant shall so advise Landlord of such
disagreement in Tenant’s Exercise Notice. If Tenant does not
make such request of Landlord prior to the time that Tenant gives
Tenant’s Exercise Notice for the Extension Term in question,
Landlord shall, within thirty (30) days after Landlord
receives Tenant’s Exercise Notice, furnish Tenant in writing
with notice of Landlord’s determination of the Base Rent for
the Extension Term in question. In such event, if Tenant does not
agree with Landlord’s determination of Base Rent, Tenant
shall advise Landlord in writing (“Dispute
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Notice”) of such agreement within
twenty (20) days of its receipt of such determination, In
either case, if the parties do not agree upon the Base Rent for the
Extension Term in question, then the Fair Market Rent shall be
determined by appraisal as follows, Tenant hereby agreeing that it
shall have no right to submit any dispute as to Fair Market Rent to
appraiser unless Tenant has previously exercised its option to
extend the term of the Lease for the Extension Term in question.
Each of the parties shall, within twenty (20) days after the
giving of Tenant’s Exercise Notice or within twenty
(20) days after Tenant gives the Dispute Notice, select an
appraiser, each of whom shall have at least five (5) years of
experience in appraising commercial properties in the greater
Boston area, and the two appraisers shall together select a third
appraiser similarly qualified. The three appraisers together shall
attempt to agree on the current market rate of Base Rent for the
Extension Term in question. Failing a unanimous decision, the Base
Rent shall be determined by majority vote of the appraisers.
Landlord and Tenant shall each pay the charges for the appraiser
which it selects, and they shall share equally the charges for the
third appraiser. Following the exercise by Tenant of its option to
extend the term hereof, all references in this Lease to the term
hereof, or expressions of similar import, shall be deemed to refer
to the term as so extended. The decision and award of the
appraiser(s) shall be final and conclusive on all
parties.
(D) Intentionally
deleted.
Section 8 –
Right of First Offer.
(A) Until the expiration (or
earlier termination) of the Cascade Promotions Lease, Tenant shall
have a right of first offer (“Right of First Offer”) to
lease the entire space currently leased by Cascade Promotions
consisting of approximately thirty thousand two hundred thirty-six
(30,236) rentable square feet which space shall be available
in June, 2011 unless earlier terminated (the “ROFO
Space.”) The ROFO Space term shall be co-terminus with the
term of this Lease and the ROFO Space rent and additional charges
shall be the same per square foot Base Rent and other charges as
are then applicable pursuant to this Lease. If the Tenant accepts
the Landlord’s ROFO, this Lease shall be deemed amended and
the ROFO Space shall become part of the Premises. Landlord shall be
obligated to deliver such ROFO Space at the end of the Cascade
Promotions Lease in its “as is” condition.
(B) Conditions. Both
at the time Tenant exercises the Right of First Offer and as of the
Term Commencement Date in respect of the ROFO Space, the Lease must
be in full force and effect and Tenant shall not be in default of
its obligations under the Lease after the giving of any applicable
notice and the expiration of any applicable grace
period.
(C) Landlord Notice .
Landlord shall not lease any such ROFO Space to a third party
unless and until Landlord has first offered the ROFO Space to
Tenant in writing (the “First Offer Leasing Notice”)
and Tenant either rejects such offer or a period of thirty
(30) days has elapsed from the date that Tenant has received
the First Offer Leasing Notice without Tenant having notified
Landlord in writing of its acceptance of such First Offer Leasing
Notice, time being of the essence. Landlord’s Notice shall
set forth the date (“Estimated Commencement Date”) that
Landlord estimates that the ROFO Space will be delivered to Tenant
(i.e. the day of the existing tenant’s lease of the ROFO
Space expires).
(D) Tenant Acceptance.
If Tenant timely delivers to Landlord, in accordance with the
conditions of this Section 8, written notice of Tenant’s
exercise of the Right of First Offer for all
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of the ROFO Space and the Landlord
determines that Tenant meets all of the conditions provided in this
Section 8, then the ROFO Space shall be deemed added to the
Premises and subject to the terms and conditions in this Lease,
with the exception of those Lease modifications set forth in
Section 8(f).
(E) Tenant’s
Rejection or Failure to Meet Conditions. If Tenant declines or
fails to duly and timely exercise its Right of First Offer or fails
to meet all of the conditions provided in this Section 8,
Landlord shall, except as set forth in this Section 8(e),
thereafter be free to lease the ROFO Space in portions or in its
entirety to any third-party at any time without regard to the
restrictions in this Section 8 and on whatever terms and
conditions Landlord may decide in its sole discretion, without
again complying with all the provisions of this Section 8.
Notwithstanding the foregoing, if the ROFO Space becomes available
for lease to Tenant prior to June 30, 2011 and if Tenant does
not elect to lease the ROFO Space at such earlier date, then Tenant
shall again have the right to lease such ROFO Space for a term
commencing as of June 30, 2011 (i.e. the term, including
extension and renewal options, of the next tenant to lease the ROFO
Space shall expire no later than June 30, 2011); provided
however, that if the ROFO Space becomes available for lease to
Tenant at such earlier date due to the then-existing ROFO Space
tenant’s default under its lease of the ROFO Space with
Landlord, and if Tenant does not elect to lease the ROFO Space at
such earlier date, then Tenant shall again have the right to lease
such ROFO Space for a term commencing as of the earlier of:
(i) the expiration of the term of the next tenant’s
lease of the ROFO Space, or (ii) the date five (5) years
plus a period of time (not to exceed six (6) months) necessary
to enable Landlord to relet the ROFO Space.
(F) Changes to Lease.
If Tenant leases the ROFO Space pursuant to the terms of this
Section 8, all the obligations, terms, and conditions under
the Lease shall also apply to the ROFO Space except
that:
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i. |
Term Commencement Date . The Term Commencement Date for
the Lease for the ROFO Space (the “Term Commencement Date for
the ROFO Space”) shall be the later of: (x) the
Estimated Commencement Date set forth in Landlord’s Notice,
or (y) the day the ROFO Space is delivered to the Tenant,
broom clean, free of tenants or other occupants, and in the same
condition in which the ROFO Space is now in, reasonable wear and
tear excepted. |
(1) If Term Commencement Date
does not occur on the Estimated Commencement Date, Landlord shall,
at Landlord’s sole cost, use reasonable efforts (which
efforts shall include commencing and diligently prosecuting summary
process proceedings) to recover possession of the ROFO Space from
the existing occupants of the ROFO Space as soon as possible and to
obtain any damages and hold over premiums (“Hold Over
Premiums”) which has the right to obtain from such occupants.
Landlord shall, within ten (10) days after it receives any
Hold Over Premiums from such occupants, pay fifty percent
(50%) of the net (i.e. net of reasonable attorney’s fees
incurred by Landlord in obtaining such Hold Over Premiums) amount
of such Hold Over Premiums to Tenant.
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(2) If the Term Commencement
Date does not occur on or before the date four (4) months
after the Estimated Commencement Date, Tenant shall have the right
to cancel its exercise of its right to lease the ROFO Space by
giving written notice to Landlord.
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ii. |
Rent Commencement Date . The Rent Commencement Date in
respect of the ROFO Space shall be the date ninety (90) days
after the Term Commencement Date in respect of the ROFO
Space. |
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iii. |
The Premises . As of the Commencement Date for the ROFO
Space, the ROFO Space shall be deemed part of the Premises, and the
Premises shall be deemed to consist of the entirety of the Building
and the Land. |
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iv. |
Pro Rata Share . As of the Rent Commencement Date for
the ROFO Space, Tenant’s pro rata share of Operating Costs
and Taxes shall be one hundred percent (100%). |
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v. |
Tenant Improvement Allowance . Landlord shall not be
obligated to provide a Tenant Improvement Allowance to
Tenant in respect of its demise of the ROFO Space. |
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vi. |
Rent . ROFO Space rent shall be. at the Fair Market Rent
computed pursuant to Section 7 above and additional charges
shall be the same per square foot amount as is then applicable
pursuant to this Lease. |
(G) Confirming Lease
Amendmen . If requested by either party, Landlord and Tenant
shall promptly confirm the following in a written amendment to the
Lease;
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i. |
The Commencement Date for the ROFO Space; |
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ii. |
The Rent Commencement Date for the ROFO Space; |
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iii. |
The location and size of the ROFO Space that was leased by
Tenant with an exhibit annexed showing that space
crosshatched; |
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iv. |
The new Annual Rent to be paid by Tenant; and |
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v. |
Tenant’s increased pro rata share of operating costs and
real estate taxes. |
Section 9 –
Taxes and Assessments . Landlord shall pay and discharge all
real estate taxes and levies, and charges and governmental
impositions, duties and charges of like kind and nature, which
shall or may during the term of this Lease be charged, laid, levied
or imposed upon or become a lien or liens upon the Building and the
Property, subject to Tenant making the payments of Additional Rent
as required in Section 4 above. Tenant shall pay all personal
property taxes and other governmental impositions on its personal
property and fixtures located at the Premises.
Section 10 –
Quiet Enjoyment . Landlord shall put Tenant in possession of
the Premises at the Term Commencement Date, and Tenant, so long as
there is no default by Tenant, after the giving of any applicable
notice and the expiration of any applicable grace periods, shall
peaceably and quietly hold and enjoy the Premises without hindrance
by anyone claiming by, or through, Landlord, or anyone claiming
superior title to Landlord, subject to the terms of this
Lease.
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Section 11 -
Signs . Tenant may install exterior signage at the
Tenant’s expense (subject to Landlord’s right to apply
the Tenant Improvement Allowance towards such costs) with
Landlord’s approval (which approval shall not be unreasonably
withheld), and subject to the Landlord’s Building Signage
standards and all municipal and state regulations. Except for the
existing signage of Cascade Promotions (if any), no other exterior
signage shall be permitted on the Property.
Section 12 - Repairs
by Tenant.
(A) Tenant’s
Obligations During Term and at End of Term. Except for those
portions of the Premises which are required to be maintained by
Landlord pursuant to Section 13, Tenant shall, at its own
expense, be responsible for all maintenance and repairs to the
Premises, including, without limitation, light bulbs, ballasts, the
heating, ventilating and air conditioning systems, alarm system
serving the Premises, and for all interior painting desired by
Tenant and for the replacement of broken glass within the Premises
(which includes the exterior windows). Tenant shall employ suitable
contractors (approved by Landlord) to perform maintenance of said
heating, ventilating and air conditioning systems, and alarm
system. Tenant shall also promptly make any repairs lawfully
required by any public authority as a result of changes in statutes
or regulations which become effective subsequent to the beginning
of the term of this Lease and which repairs are required because of
the nature of the occupancy of the Premises by Tenant or the manner
in which it conducts its business therein. At the expiration of
this Lease or earlier termination hereof for any cause herein
provided for, Tenant shall deliver up the Premises to Landlord
broom clean and in the same sanitary and attractive condition and
state of repair as at the Rent Commencement (as the same may be
changed, from time to time, pursuant to the provisions of this
Lease), reasonable wear and tear, taking by eminent domain and
damage due to fire or other casualty, and damage caused the fault
or neglect of Landlord, or Landlord’s agents, employees or
contractors excepted.
Landlord makes no warranties
or representations regarding indoor air quality or condition within
the Premises to the extent related to Tenant’s installation
of the HVAC system. Furthermore, Landlord shall have no
responsibility regarding indoor air quality or condition (through
rent offset by Tenant or otherwise), such responsibility being
solely that of Tenant. Tenant has conducted or has had the
opportunity to conduct all testing regarding indoor air quality and
condition, and hereby releases Landlord for any claim
therefore.
(B) Replacement of Systems
Near End of Term. Tenant shall be under no obligation to
replace any systems (including, without limitation, the HVAC
system) serving the Premises during the three (3) years prior
to the Termination Date (as extended in the event that Tenant
exercises one or more of its extension options); however Tenant
shall continue to be obligated to repair and maintain said systems
in good working order until the Termination Date to the extent that
it is possible to keep said systems in good working order without
making replacing the systems or major components of such
systems.
(C) Landlord’s
Self-Help Rights. In the event Tenant fails to make promptly
any repairs required of Tenant hereunder, or fails to perform any
of its other obligations, Landlord may, at its option, if such
failure continues for more than thirty (30) days after
Landlord has
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provided notice to Tenant (except that
no such prior notice shall be required in an emergency), make such
repairs or perform such obligations to Tenant’s account and
the reasonable cost thereof will become an obligation of Tenant
under this Lease, payable within thirty (30) days of demand
and any such amount shall bear interest at the Lease Interest Rate,
as defined in Section 5, from the date of demand.
Section 13 -
Landlord’s Maintenance .
(A) Landlord
Obligations. Landlord shall, throughout the term of the Lease,
maintain the structural portions of the Building (i.e. roof,
foundations, exterior walls and windows, columns and beams), in
good order, condition and repair, except to the extent that damage
is caused by Tenant, Tenant’s agents, contractors or
employees, subject to Section 26(C) below. In addition,
subject to Section 21, Landlord shall maintain landscaping,
parking and other paved areas, and common improvements (e.g.
drainage, lighting, etc.) serving the Building in good order,
condition, and repair. Landlord shall remove snow and ice from the
parking and other all paved areas on the Land in accordance with
the standards attached hereto as Exhibit L . Landlord shall
keep the parking areas lit during night time hours. The parties
acknowledge that it is their intention that pursuant to this Lease
Tenant has responsibility for all non-structural maintenance and
repair to the Premises. Except as expressly set forth in this
Lease, Landlord has no obligation to provide any services to
Tenant.
(B) Tenant Self-Help.
In the event Landlord fails to make promptly any repairs required
of Landlord hereunder, or fails to perform any of its other
obligations, Tenant may, at its option, if such failure continues
for more than thirty (30) days after Tenant has provided
notice to Landlord (except that no prior notice shall be required
in an emergency), make such repairs or perform such obligations to
Landlord’s account and the cost thereof will become an
obligation of Landlord under this Lease, payable within thirty
(30) days of demand and any such amount shall bear interest at
the Lease Interest Rate, as defined in Section 5, from the
date of demand. If Landlord fails timely to pay any amounts due to
Tenant pursuant to this Section 15 and Tenant obtains an
arbitrator’s award that Landlord should have paid such
amount, Tenant shall have the right to deduct such amounts from the
next installments of Base Rent and other charges due from Tenant
under the Lease.
(C) Landlord Fault
.
(1) Rent Abatement .
If the Premises, or any portion thereof, become untenantable by
reason of Landlord Fault, as hereinafter defined, for a period of
more than Abatement Period, as hereinafter defined, after Tenant
gives Landlord written notice of such event, then Tenant’s
obligation to Base Rent and other charges due under the Lease shall
be equitably abated during such period of untenantability. The
“Abatement Period” shall be defined as five
(5) business days, except that to the extent that Landlord is
delayed in curing such condition by reason of such force majeure,
the Abatement Period shall be extended by such delay up to a
maximum of ten (10) additional business days.
(2) Termination . If
the Premises, or any portion thereof, become untenantable by reason
of Landlord Fault for a period of more than Termination Period, as
hereinafter defined, in the event of force majeure) after Tenant
gives Landlord written notice of such event, then Tenant shall have
the right to terminate this Lease upon written notice to Landlord.
The “Termination Period” shall be defined as one
hundred twenty (120) days, except that to the extent
that
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Landlord is delayed in curing such
condition by reason of such force majeure, the Termination Period
shall be extended by such delay up to a maximum of sixty
(60) additional business days.
(3) Landlord Fault .
“Landlord Fault” shall be defined as: (i) any
failure by Landlord to perform any maintenance or repairs which are
required to be performed by Landlord hereunder, (ii) any
breach by Landlord in its maintenance and repair obligations under
this Lease, or (iii) the negligence or willful misconduct of
Landlord, or Landlord’s agents, employees or
contractors.
(4) The provisions of this
Section 13(C) shall not apply in the event of untenantability
caused by fire, other casualty or taking.
Section 14 -
Alterations and Additions .
(A) Tenant’s Right
to Make Alterations. Tenant shall not make alterations or
additions to the Premises, without obtaining Landlord’s prior
written consent. Notwithstanding the foregoing:
(i) All initial Tenant
improvements are subject to Landlord’s prior written
cons
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