Exhibit 10.1
100
HAYDEN AVENUE
LEXINGTON,
MASSACHUSETTS
Lease Dated
May 22, 2008
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, 100
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:
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Mortimer B. Zuckerman
and Edward H. Linde, Trustees of 92 Hayden Avenue Trust under
Declaration of Trust dated August 18, 1983, recorded with the
Middlesex South District Registry of Deeds in Book 15218,
Page 425 as amended by instrument dated October 30, 1997
recorded with said Registry in Book 27863, Page 347, but not
individually.
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Landlord’s
Original Address:
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c/o Boston Properties
Limited Partnership
Prudential Center
800 Boylston Street, Suite 1900
Boston, MA 02199-8103
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Landlord’s
Construction Representative:
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Michael
Schumacher
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Tenant:
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AMAG
Pharmaceuticals, Inc., a Delaware corporation.
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Tenant’s Original
Address:
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125 Cambridge Park
Drive
Cambridge, Massachusetts 02140
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Tenant’s
Construction Representative:
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John
Colorusso
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Commencement
Date:
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The date of this
Lease.
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Rent Commencement
Date:
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February 1,
2009
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Term (Sometimes Called
the “Original Term”):
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The period from the
Commencement Date through August 31, 2016, unless extended or
sooner terminated as provided in this Lease.
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Extension
Options:
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Two successive
(2) periods of five (5) years each as provided in and on
the terms set forth in Section 8.20 hereof.
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The Site:
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That certain parcel of
land known as and numbered 92-100 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 100
Hayden Avenue, Lexington, Massachusetts.
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The Additional
Building:
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The two (2) story
Building on the Site known as and numbered 92 Hayden Avenue,
Lexington, Massachusetts.
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The
Buildings:
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The Building and the
Additional Building. The Buildings are herein
identified.
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The Complex:
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The Building and the
Additional 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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The entire Building
(but excluding Landlord’s management office in the Building),
containing 55,924 square feet of rentable floor area as shown on
the floor plans annexed hereto as Exhibit D and incorporated
herein by reference.
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Number of Parking
Spaces:
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185 spaces in
accordance with and subject to the
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2
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provisions of
Section 2.2.1 hereof.
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Annual Fixed
Rent:
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(i) During the
Original Term of this Lease at the following annual
rates:
(a) For the period
beginning on the “Commencement Date”
(hereinbefore defined) and expiring on the day immediately
preceding the “Rent Commencement Date” (also
hereinbefore defined), there shall be no Annual Fixed Rent
payable;
(b) For the period
beginning on the Rent Commencement Date and ending on the last of
the twelfth (12 th ) full calendar month following the
Rent Commencement Date, at the annual rate of $1,839,899.60 (being
the product of (i) $32.90 and (ii) the Rentable Floor
Area of the Premises);
(c) For the period
beginning on the first day of thirteenth (13 th ) full
calendar month following the Rent Commencement Date and expiring on
the last day of the twenty fourth (24 th ) full calendar
month following the Premises Rent Commencement Date, at the annual
rate of $1,895,823.60 (being the product of (i) $33.90 and the
(ii) Rentable Floor Area of the Premises);
(d) For the period
beginning on the first day of the twenty fifth (25 th )
full calendar month following the Rent Commencement Date and ending
on the last day of the thirty sixth (36 th ) full
calendar month following the Rent Commencement Date, at the annual
rate of $1,951,747.60 (begin the product of (i) $34.90 and
(ii) Rentable Floor Area of the Premises);
(e) For the period
beginning on the first day of the thirty seventh (37 th
) full calendar month following the Rent Commencement Date and
ending on the last day of the forty eighth (48 th ) full
calendar month following the Rent Commencement Date, at the annual
rate of
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3
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$2,007,671.60 (being
the product of (i) $35.90 and (ii) the Rentable Floor
Area of the Premises);
(f) For the period
beginning on the first day of the forty-ninth (49 th )
full calendar month following the Rent Commencement Date and ending
on the last day of the sixtieth (60th) full calendar month
following the Rent Commencement Date, at the annual rate of
$2,063,595.60 (being the product of (i) $36.90 and
(ii) the Rentable Floor Area of the Premises);
(g) For the period
beginning on the first day of the sixty-first (61 st )
full calendar month following the Rent Commencement Date and ending
on the last day of the seventy-second (72 nd ) full
calendar month following the Rent Commencement Date, at the annual
rate of $2,119,519.60 (being the product of (i) $37.90 and
(ii) the Rentable Floor Area of the Premises; and
(h) For the period
beginning on the first day of the seventy-third (73 rd )
full calendar month following the Rent Commencement Date and ending
on the last day of the eighty fourth (84 th ) full
calendar month following the Rent Commencement Date, at the annual
rate of $2,175,443.60.00 (being the product of (i) $38.90 and
(ii) the Rentable Floor Area of the Premises).
(i) For the period
beginning on the first day of the eighty fifth (85 th )
full calendar month following the Rent Commencement Date and ending
on the last day of the Original Term, at the annual rate of
$2,343,215.60 (being the product of (i) $41.90 and
(ii) the Rentable Floor Area of the Premises.
(ii) During the
extension option periods (if exercised), as determined pursuant to
Section 8.20.
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4
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Base Operating
Expenses:
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Landlord’s
Operating Expenses (as hereinafter defined in Section 2.6) for
calendar year 2009, being January 1, 2009 through
December 31, 2009.
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Base Taxes:
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Landlord’s Tax
Expenses (as hereinafter defined in Section 2.7) for fiscal
tax year 2009, being July 1, 2008 through June 30,
2009.
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Tenant
Electricity:
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As provided in
Section 2.8 hereof.
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Additional
Rent:
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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”):
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55,924 square
feet.
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Total Rentable Floor
Area of the Building:
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55,924 square
feet.
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Total Rentable Floor
Area of the Additional Building:
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31,100 square
feet.
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Total Rentable Floor
Area of the Buildings:
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87,024 square
feet.
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Permitted
Use:
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General office
purposes, and as ancillary thereto (but not as primary uses) other
uses customarily accessory to and consistent with general office
purposes as from time to time permitted as of right by the Zoning
By-Law of the Town of Lexington.
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Initial Minimum Limits
of Tenant’s Commercial General Liability
Insurance:
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$5,000,000.00 per
occurrence, subject to the requirements of Sections 5.7 through
5.7.11.
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Brokers:
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Jones Lang LaSalle
One Post Office Square
Boston, Massachusetts 02109
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and
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Cushman and
Wakefield
125 Summer Street
15 th Floor
Boston, Massachusetts 02110
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Security
Deposit:
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$459,975.00, subject to
the terms and provisions of Section 8.21 below.
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1.2
Exhibits
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There are incorporated
as part of this Lease:
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Exhibit A
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Description of
Site
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Exhibit A-1
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Parking Plan
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Exhibit B
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—
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Tenant Plan and Working
Drawing Requirements
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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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Floor Plans
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Exhibit E
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List of Remaining
Cafeteria and Data Room Equipment
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Exhibit F
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—
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Form of Lien
Waivers
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Exhibit G
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—
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Form of Letter of
Credit
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Exhibit H
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—
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Broker
Determination
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Exhibit I
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Form of
Tenant’s Insurance Certificate(s)
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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
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1
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1.2
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Exhibits
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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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8
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The Buildings,
Premises, Term and Rent
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8
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2.1
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The
Premises
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8
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6
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2.2
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Rights to Use
Common Facilities
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2.3
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Landlord’s
Reservations
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2.4
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Habendum
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2.5
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Fixed Rent
Payments
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10
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2.6
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Operating
Expenses
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2.7
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Real Estate
Taxes
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18
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2.8
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Tenant
Electricity
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ARTICLE III
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Condition of
Premises; Alterations
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ARTICLE IV
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26
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Landlord’s
Covenants; Interruptions and Delays
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4.1
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Landlord
Covenants
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4.2
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Interruptions and
Delays in Services and Repairs, etc.
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4.3
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Landlord’s
Indemnity
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4.4
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Landlord’s
Insurance
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4.5
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Hazardous
Materials
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30
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4.6
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Compliance with
Law
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4.7
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Furniture
Removal
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31
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4.8
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Cafeteria
Operations
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ARTICLE V
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32
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Tenant’s
Covenants
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5.1
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Payments
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5.2
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Repair and Yield
Up
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5.3
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Use
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5.4
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Obstructions;
Items Visible From Exterior; Rules and Regulations
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5.5
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Safety
Appliances
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5.6
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Assignment;
Sublease
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5.7
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Tenant’s
Indemnity, Insurance And Related Matters
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5.8
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Waiver of
Subrogation
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49
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5.9
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Right of
Entry
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49
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5.10
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Floor Load;
Prevention of Vibration and Noise
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50
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5.11
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Personal Property
Taxes
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50
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5.12
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Compliance with
Laws
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50
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5.13
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Payment of
Litigation Expenses
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50
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5.14
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Alterations
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5.15
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Vendors
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5.16
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Patriot
Act
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ARTICLE VI
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54
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Casualty and
Taking
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6.1
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Damage Resulting
from Casualty
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6.2
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Uninsured
Casualty
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56
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6.3
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Rights of
Termination for Taking
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6.4
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Award
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ARTICLE VII
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Default
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7.1
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Tenant’s
Default
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7.2
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Landlord’s
Default
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ARTICLE VIII
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Miscellaneous
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8.1
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Extra Hazardous
Use
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8.2
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Waiver
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8.3
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Cumulative
Remedies
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62
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8.4
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Quiet
Enjoyment
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8.5
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Notice to
Mortgagee and Ground Lessor
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64
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8.6
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Assignment of
Rents
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64
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8.7
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Surrender
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8.8
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Brokerage
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8.9
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Invalidity of
Particular Provisions
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8.10
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Provisions
Binding, etc.
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66
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8.11
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Recording;
Confidentiality
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8.12
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Notices
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8.13
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When Lease Becomes
Binding
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8.14
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Section Headings
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67
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8.15
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Rights of
Mortgagee
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8.16
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Status Reports and
Financial Statements
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8.17
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Self-Help
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8.18
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Holding
Over
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8.19
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Extension
Options
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8.20
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Security
Deposit
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72
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8.21
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Late
Payment
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8.22
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Tenant’s
Payments
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8.23
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Waiver of Trial by
Jury
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8.24
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Tenant’s
Signage
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8.25
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Governing
Law
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8.26
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Rooftop
Rights
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77
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ARTICLE
II
The Buildings,
Premises, Term and Rent
2.1
The Premises
Landlord hereby demises
and leases to Tenant, and Tenant hereby hires and accepts from
Landlord, Tenant’s Space in the Building excluding the roof
(but subject to Tenant’s
8
rights under
Section 8.27 hereof), and if Tenant’s Space is less than
the entire 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 and being one of the two (2) Buildings erected on
the Site by the Landlord; 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 two (2) Buildings 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 herein provided, 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 Complex from time to time made by
Landlord of which Tenant is given notice common walkways and
driveways necessary for access to the Building.
2.2.1
Tenant’s Parking
In addition, Tenant
shall have the exclusive right, as appurtenant to the Premises, to
use, without additional charge, the portion of the parking area
shown on the Parking Plan as “100 Hayden Parking Area”.
The Number of Parking Spaces (referred to in
Section 1.1) for the parking of employee automobiles and other
passenger vehicles (and the occasional parking of delivery vans)
not longer than thirty (30) feet and no more than two such delivery
vans at any one time, provided, however, that Tenant shall be
responsible for moving such delivery vans in order for Landlord to
perform snow plowing and parking lot maintenance; and provided
further that Landlord shall not be obligated to furnish stalls or
spaces in any parking area specifically designated for
Tenant’s use. In the event that the Rentable Floor Area of
the Premises decreases at any time during the Lease Term, the
Number of Parking Spaces provided to Tenant hereunder shall be
reduced proportionately. In no event shall Tenant have any
right to use parking spaces in the portion of the parking area
shown on the Parking Plan as “92 Hayden Parking
Area”. 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 by notice to Tenant with respect to the use of the parking
areas on the Site. The parking privileges granted herein are
non-transferable
9
except to a permitted
assignee or subtenant as provided in Section 5.6 through
Section 5.6.5. Further, 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
In the event that
Tenant’s Space is less than the entire Building, 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 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. Any non-emergency work performed pursuant to this
Section 2.3 shall be performed at such times and in such a
manner so as to minimize interference with Tenant’s
operations in the Premises. Any non-emergency work shall be
performed only after reasonable advance notice to
Tenant.
2.4
Habendum
Tenant shall have and
hold the Premises for a period commencing on the date of this Lease
(the “Commencement Date”), 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.
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 time to time designate by notice,
(1) 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
(2) on the first day of each and every calendar month during
each 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 applicable extension
option period. 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 either (i) by mail to
P.O. Box 3557, Boston, Massachusetts 02241-3557, (ii) by
wire transfer to Bank of
10
America in Dallas,
Texas, Bank Routing Number 0260-0959-3 or (iii) by ACH
transfer to Bank of America in Dallas, Texas, Bank Routing Number
111 000 012, and in the case of (ii) or (iii) referencing
Account Number 3756454460, Account Name of Boston Properties, LP,
Tenant’s name and the Property address. 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.
Notwithstanding
anything contained herein or in Section 1.1 to the contrary,
it is understood and agreed that in the event that this Lease is
terminated by reason an Event of Default during the first thirty
(30) months of the Term, Annual Fixed Rent for the period
commencing on the Commencement Date and ending on the last day of
the free rent period shall immediately become due and payable in
the amount of $766,624.83. Tenant shall within ten (10) days
after demand therefor pay Landlord any amounts necessary so that
the total Annual Fixed Rent for such period shall equal $766,624.83
as aforesaid (taking into account any amounts previously paid by
Tenant as Annual Fixed Rent during such period).
2.6
Operating Expenses
“Landlord’s
Operating Expenses” means reasonable, out of pocket 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
11
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 managing, operating, maintaining or
cleaning of the Building or Site, water, sewer, electric, gas, oil
and telephone charges including utilities charges for parking lot
lighting (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 under guarantees); cost of snow
removal and care of landscaping; payments under service contracts
with independent contractors; management fees at reasonable rates
consistent with the type of occupancy and the service rendered;
costs of maintaining a regional property management office in
connection with the operation, management and maintenance of the
Building (sometimes called the “Regional Property Management
Charge”); 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 during the Lease Term,
but only to the extent the same are incurred either (i) to
reduce Landlord’s 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 now or hereafter in force (the
capital expenditures described in subsections (i) and
(ii) being hereinafter referred to as “Permitted Capital
Expenditures”); 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 of the capital item acquired and the useful life shall
be reasonably determined by Landlord in accordance with generally
accepted accounting principles and practices in effect at the time
of acquisition of the capital item.
Notwithstanding the
foregoing provisions, the following shall be excluded from
Landlord’s Operating Expenses:
(1)
Leasing fees or commissions, advertising and promotional expenses,
legal fees, the cost of tenant improvements, build out allowances,
moving expenses, and other concessions and expenses incurred in
connection with leasing spacing in the Building;
(2)
Interest on indebtedness, debt amortization, ground rent, and
refinancing costs for
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any mortgage or ground
lease of the Building, the Complex, or any portion of either of
them;
(3)
If the Building shall become a multi-tenant building (i.e., the
Building is occupied by two (2) or more tenants, each under a
direct lease with Landlord), costs incurred in performing work or
furnishing services for any tenant (including Tenant), to the
extent that such work or services is in excess of any work or
service Landlord is obligated to provide Tenant under this Lease
without additional charge. However, as between Landlord and
Tenant, the provisions of Section 4.1.2 shall apply in the
case of additional services requested by Tenant to be performed by
Landlord;
(4)
The cost of any item or service to the extent to which Landlord is
reimbursed or compensated by insurance, any tenant, or any third
party;
(5)
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, which
deductible shall be as reasonably determined by Landlord;
(6)
Any advertising, promotional or marketing expenses for the
Building;
(7)
With the exception of the management fee described in the first
paragraph of this Section 2.6 and an allocable portion of the
property management office costs and expenses of Landlord or Boston
Properties, the cost of any service or materials provided by any
party related to Landlord, to the extent such costs exceed the
reasonable cost for such service or materials absent such
relationship in buildings similar to the Buildings in the vicinity
of the Buildings (if, in any calendar year, the percentage of
revenues used to calculate the management fee shall be greater than
the percentage used to calculate the management fee included in
Base Operating Expenses, then Base Operating Expenses shall be
adjusted and shall be in effect from the year in which the
management fee percentage is increased and shall be the management
fee that would have been payable, and calculated on the rental
income, for calendar year 2009 as if such higher percentage were
then in effect.);
(8)
Penalties and interest for late payment of any obligations of
Landlord, including, without limitation, taxes, insurance,
equipment leases and other past due amounts, provided that Tenant
pays Operating Costs and real estate taxes timely as and when
due;
(9)
Salaries or other compensation paid to employees above the grade of
Regional Property Manager except that if any such employee performs
a service which would have been performed by an outside consultant,
the compensation paid to such employee for performing such service
shall be included in Operating
13
Expenses for the
Building to the extent only that the cost of such service does not
exceed the costs of such service had such service been performed by
an outside consultant. Further, if and to the extent an
employee performs services at the Building and other properties,
such employee’s labor costs shall be reasonably allocated and
only the portion reasonably allocable to the Building shall be
included in Landlord’s Operating Expenses (Nothing contained
herein shall affect Landlord’s right to collect the
management fee specifically provided for above.);
(10)
Cost of purchasing or installing sculpture, paintings or other
objects of art;
(11)
Cost of repairs, replacements, alterations or improvements
necessary to make the Building comply with applicable law in effect
as of the date of this Lease;
(12)
Legal fees or other expenses incurred in connection with
negotiating and enforcing leases with tenants in the Complex;
(13)
Depreciation, except that “Permitted Capital
Expenditures” (as hereinbefore defined) and interest and
amortization thereon, which shall include payments for rented
equipment to the extent that such rented equipment would, if
purchased, constitute a Permitted Capital Expenditure or would be
used in performing the work which constitutes a Permitted Capital
Expenditure , shall be included in Operating Expenses;
(14)
All costs and expenses of any special events (e.g. receptions,
concerts); provided, however, that Tenant shall pay the entire
costs and expenses of any special events run by Tenant;
(15)
All legal, architectural, engineering, accounting and other
professional fees; provided, however, that, subject to the
provisions of item 1 above, legal, architectural, engineering,
accounting and other professional fees and costs incurred in
connection with the management, operation, maintenance, repair and
replacement of the Complex shall be included in Operating
Expenses;
(16)
All costs and expenses attributable to any hazardous wastes,
substances, or materials existing as of the date of this Lease (but
not any which subsequently arise, other than by reason of the acts
or omissions of Landlord, its agents, contractors, or employees)
and/or any testing, investigation, reporting, management,
maintenance, remediation, or removal thereof; provided, however,
Tenant shall be solely responsible for all such costs and expenses
for all hazardous wastes, substances and materials resulting from,
or caused by Tenant or its contractors, subcontractors, agents,
employees or invitees and the cost of testing, investigation,
reporting, management, maintenance, remediation and removal
thereof. However, there shall be included in Operating Expenses the
cost of Landlord’s routine annual or other periodic hazardous
material or similar inspection of the buildings, the cost of which
incurred during the Base Year shall also be included in Base
Operating Expenses (and Landlord agrees that Base
14
Operating Expenses
shall include an amount equal to the cost of such annual
inspection, whether or not an annual inspection is actually
performed during calendar year 2009);
(17)
All charitable or political contributions;
(18)
Reserves, provided, however, amounts actually expended in
maintaining, repairing and operating the Property shall be included
in Operating Expenses;
(19)
Costs incurred with respect to the Additional Building or any other
building that may from time to time exist on the Site (a
“Future Building”); provided, however, that any costs
relating to the common areas of the Site) shall be reasonably
allocated among the Building, the Additional Building and any
Future Building;
(20)
All costs and expenses arising out of (i) any violation of law
or legal requirement by Landlord, (ii) any violation or breach
of any lease of space in the Building, or (iii) any other
breach of contract by Landlord;
(21)
All general corporate overhead of Landlord or any its agents or
affiliates; and
(22)
Any management fee other than the management fee and the Regional
Property Management Charge set forth in the first paragraph of this
Section 2.6; provided, however, that if Tenant requests
Landlord or its managing agent to perform work for Tenant beyond
that which is covered by this Section 2.6, the same shall be
done on a work order basis for which Landlord shall have the right
to charge Tenant for Landlord’s performing same.
In addition to the
foregoing, if in any calendar year after 2009 Landlord shall
provide a service that was not provided in 2009, then Base
Operating Expenses shall be adjusted to include the reasonable
estimate of the cost of providing such services in calendar year
2009. Further, if in any calendar year after 2009, Landlord with
Tenant’s consent shall cease to provide a service that was
provided in 2009, then Base Operating Expenses shall be adjusted to
exclude the cost of providing such services in calendar year
2009.
“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 100% of 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 100% of
the Total Rentable Floor Area of the Buildings.
“Base Operating
Expenses” is hereinbefore defined in Section 1.1.
Base Operating Expenses shall not include (i) 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
(“Temporary Cost
15
Increase”);
provided, however, that if any item(s) of Temporary Cost
Increases shall continue uninterrupted beyond calendar year 2009,
then the amount of such Temporary Cost Increase excluded from Base
Operating Expenses with respect to such item(s) shall also be
excluded from Landlord’s Operating Expenses for and with
respect to any such calendar year during which such Temporary Cost
Increase continues and (ii) the cost of any Permitted Capital
Expenditures; provided, however, that any Permitted Capital
Expenditures excluded from Base Operating Expenses shall not be
included in Landlord’s Operating Expenses in any subsequent
year.
“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 100% of 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 100% of the Rentable Floor Area of the
Buildings.
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
tenant electricity to be paid by Tenant at the time of payment of
Annual Fixed Rent, separate provision being made in
Section 2.8 of this Lease for Tenant’s electricity costs
for the Premises).
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 for the
preceding calendar year or fraction thereof, as the case may be,
Landlord’s Operating Expenses and Operating Expenses
Allocable to the Premises (the “Annual Statement”). The
Annual Statement 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, Tenant for
the year or other period covered by such 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, net of any sums then due from Tenant to
Landlord).
16
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.
Notwithstanding the
foregoing, in determining the amount of Landlord’s Operating
Expenses for any calendar year or portion thereof falling within
the Lease Term, if less than ninety-five percent (95%) of the Total
Rentable Floor Area of the Building shall have been occupied by
tenants at any time during the period in question, then those
components of Landlord’s Operating Expenses that vary based
on occupancy for such period shall be adjusted to equal the amount
such components of Landlord’s Operating Expenses would have
been for such period had occupancy been ninety-five percent (95%)
throughout such period.
Subject to the
provisions of this paragraph and provided that no Event of Default
then exists, Tenant shall have the right, at Tenant’s cost
and expense, to examine all documentation and calculations prepared
in the determination of Operating Expenses Allocable to the
Premises:
(1)
Such documentation and calculation shall be made available to
Tenant at the office (located in the Eastern continental United
States) where Landlord keeps such records, during normal business
hours within thirty (30) days after Landlord receives a written
request from Tenant to make such examination.
(2)
Tenant shall have the right to make such examination no more than
once in respect of any period in which Landlord has given Tenant a
statement of the actual amount of Landlord’s Operating
Expenses.
(3)
Any request for examination in respect of any Operating Year may be
made no more than one hundred eighty (180) days after Landlord
delivers the Annual Statement with respect to such period and such
examination shall be completed within ninety (90) days after it is
commenced, time being of the essence in respect of both
periods.
(4)
Such examination may be made only by (i) an independent
certified public accounting firm, or (ii) a qualified real
estate professional or firm approved by Landlord, which approval
shall not be unreasonably withheld. Without limiting
Landlord’s approval rights, Landlord may withhold its
approval of any examiner of Tenant who is being paid by Tenant on a
contingent fee basis.
17
(5)
As a condition to performing any such examination, Tenant and its
examiners shall be required to execute and deliver to Landlord a
commercially reasonable agreement pursuant to which Tenant and its
examiners agree to keep confidential any information which either
of them discovers about Landlord or the Building in connection with
such examination, subject only to those exceptions customarily
found in such agreements. Without limiting the foregoing, such
examiners shall be required to agree that they will not represent
any other tenant in the Building or in the other buildings on the
Site.
2.7
Real Estate Taxes
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 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, net of any sums then due from Tenant to
Landlord).
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.
18
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.
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 100% of
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 100% of the Total Rentable Floor Area of the
Buildings.
(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 100% of 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 100% of the Total Rentable Floor Area of the
Buildings.
(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
19
determined, calculated
as if Landlord had elected to pay such special taxes or assessments
over the longest period allowed by law (whether or not Landlord
actually so elects). There shall be excluded from such taxes all
income, estate, succession, inheritance, franchise and transfer
taxes, and, provided that Tenant has timely paid all amounts due
from Tenant under this Section 2.7, any fees, penalties, or
interest payable on account of the late payment of any real estate
taxes. 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.
(viii)
If Landlord shall receive any refund of any real estate taxes of
which Tenant has paid a portion pursuant to this Section 2.7,
then, out of any balance remaining after deducting Landlord’s
reasonable expenses incurred in obtaining such refund, Landlord
shall pay or credit to Tenant its proportionate share of said
balance, prorated as set forth above, but in no event more than the
amount paid by the Tenant with respect to the fiscal year in
question.
Tenant shall not have
the right to seek an abatement of real estate taxes, but provided
Tenant has not assigned this Lease nor sublet more than one
(1) full floor in the Building, and there shall not be
existing an Event of Default, Tenant shall have the right to
request that Landlord seek and abatement of real estate taxes at
Tenant’s sole cost and expense. Landlord agrees to act
reasonably with respect to any such request including meeting with
Tenant.
2.8
Tenant Electricity
Commencing on the
Commencement Date and continuing throughout the Term (as it may be
extended), Tenant covenants and agrees to pay directly to the
appropriate utility company providing electricity to the Site, as
Additional Rent, all electricity charges for
20
lights, power and
heating, ventilating and air conditioning consumed at the Premises
and for other purposes within the Building (“Tenant
Electricity”) and all electricity for exterior lighting of
the Building (and not the exterior of the Additional Building)
(“Exterior Electricity”). There are presently two
(2) electric meters, one of which reads only the electricity
to power heating, ventilating and air-conditioning to the Premises
and the other of which reads both the Exterior Electricity and the
Tenant Electricity, and no other electric usage, and Tenant shall
be responsible for the full payment of all electrical charges
associated with both meters.
Tenant covenants and
agrees to take all steps required by the appropriate utility
company to provide for the direct billing to Tenant of the Tenant
Electricity and the Exterior Electricity including, without
limitation, making application(s) to such utility company in
connection therewith and making any deposits (including, but not
limited to, such letters of credit) as such utility company shall
require. Tenant covenants and agrees to pay, before
delinquency, all electricity charges and rates for and relating to
the Tenant Electricity and the Exterior Electricity and from time
to time if requested by Landlord to provide Landlord with evidence
of payment to, and good standing with, such utility company as
Landlord may reasonably require but not more frequently than twice
in any calendar year unless an Event of Default (hereinafter
defined) exists in which case there shall be no limitation on the
frequency of such request.
ARTICLE
III
Condition of
Premises; Alterations
3.1
Tenant covenants and agrees that Tenant is leasing the Premises in
their as-is condition on the Commencement Date and that, except as
expressly provided in the following sentence, Landlord has no
obligation to perform or make any additions, alterations,
improvements, demolition or other work to the Premises, the
Building or the Site. Notwithstanding the foregoing, Landlord
agrees that, as of the Commencement Date, the utility and building
service systems and equipment serving the Premises shall be in good
operating order and condition; provided, however, that the items
listed on Exhibit E hereto shall be delivered in their
“as is” condition. Further, Tenant acknowledges
and agrees that the Commencement Date is a fixed date (being the
date of the Lease) and that the Rent Commencement Date also is a
fixed date (being February 1, 2009) notwithstanding that
Tenant plans to perform improvement and other work in and to the
Premises and irrespective of when Tenant begins such work and how
long Tenant takes to complete such work. In addition, neither the
Commencement Date nor the Rent Commencement Date shall be extended
for any reason whatsoever including, without limitation, the time
it takes for certificates of occupancy to be issued by the Town of
Lexington for Tenant’s improvement work in and to the
Premises, Tenant hereby acknowledging and agreeing that Tenant is
solely responsible for obtaining all such certificates of
occupancy. Landlord agrees to cooperate in good faith with
Tenant, at no out of pocket expense to Landlord, in Tenant’s
efforts to obtain such certificates of
21
occupancy.
3.2
(A) Tenant, at its sole cost and
expense, shall perform all work necessary to prepare the Premises
for Tenant’s occupancy in accordance with plans and
specifications prepared by Baker Design Group, or another
architect licensed by the Commonwealth of Massachusetts and
approved by Landlord, which approval shall not be unreasonably
withheld, delayed, or conditioned, such plans and specifications to
be subject to the reasonable approval of the Landlord as set forth
below. Tenant hereby acknowledges that the lobby in the Building,
including its floor, walls, ceiling, doors and equipment
(collectively, the “Lobby”), are new and that in no
event shall Tenant make any changes, renovations, alterations or
substitutions to or in the Lobby. Further, during the performance
of any demolition or improvement work in the Building, Tenant shall
take all steps reasonably required by Landlord to protect the Lobby
from damage and shall obtain Landlord’s approval which
approval shall not be unreasonably withheld, delayed, or
conditioned for the methods of such protection prior to Tenant
performing (or allowing any contractors to perform) any work in the
Premises.
Tenant shall submit to
Landlord a detailed floor plan layout together with working
drawings (the “Tenant’s Submission”) for work to
be performed by Tenant to prepare the Premises for Tenant’s
occupancy (“Tenant’s Work”). Such floor plan
layout and working drawings (the “Plans”) shall contain
at least the information required by, and shall conform to the
requirements of, Exhibit B. Tenant’s submission shall
include at least two (2) full sized sets and two (2) half
size sets of Tenant’s proposed layout and working drawings.
Landlord’s approval of the Plans shall not be unreasonably
withheld or delayed; however, Landlord’s determination of
matters relating to aesthetic issues relating to alterations or
changes which are visible outside the Premises shall be in
Landlord’s sole discretion. Landlord shall have seven
(7) business days from Tenant’s submission made in
accordance with the requirements hereof to respond to
Tenant’s request for approval thereof. If
Tenant’s submission does not comply with requirements hereof,
Landlord shall notify Tenant of same within two (2) business
days after Tenant makes any such defective submission, which notice
shall specify the respects in which such submission is
defective. Any disapproval of any Plans shall set forth in
reasonable detail the grounds for such disapproval along with
Landlord’s suggested corrective measures. If
Landlord disapproves of any Plans, then Tenant shall promptly have
the Plans revised by its architect to incorporate all objections
and conditions presented by Landlord and shall resubmit such plans
to Landlord no later than seven (7) days after Landlord has
submitted to Tenant its objections and conditions. Landlord
shall have five (5) calendar days from Tenant’s
resubmission to respond to Tenant’s request for approval
thereof. Such process shall be followed until the Plans shall have
been approved by the Landlord without objection or condition.
If Landlord fails to respond in writing to Tenant within in the
applicable period specified above (i.e., seven (7) business
days after Tenant’s initial submission and five
(5) calendar days after any resubmission), then the submitted
plans shall be deemed approved for all purposes of this
Article III.
If in connection with
the review of Tenant’s Plans by the Town of Lexington
Building
22
Commissioner at the
time of Tenant’s submission of an application for a building
permit for Tenant’s Work, it is determined by said Building
Commissioner that the existing lobby/atrium and /or the existing
means of egress of the Building does not comply with applicable
Legal Requirements and that modification thereto is required,
Landlord, at its sole cost and expense, shall perform modification
work to the lobby/atrium and/or means of egress which will bring
such areas into compliance with the applicable Legal Requirements
and will otherwise be done aesthetically in a manner as determined
by Landlord. If any such modification work shall be required,
the same shall be performed by Landlord’s contractors
concurrently with Tenant’s performance of Tenant’s
Work.
Notwithstanding the
foregoing, Tenant shall be solely responsible for compliance of
Tenant’s Plans with applicable Legal Requirements, and in the
event that (a) any Tenant’s Work performed in or
adjacent to the existing lobby/atrium area as shown on
Exhibit D makes necessary the performance of any other work in
such lobby/atrium or the other existing means of egress from the
Building in order for such lobby/atrium or the other means of
egress to comply with applicable Legal Requirements, or
(b) any of Tenant’s Work in the Building is for uses
other than general office purposes (and accessory cafeteria and
other customary uses accessory to general office uses) and results
in the existing lobby/atrium area or the other existing means of
egress from the Building not complying with applicable Legal
Requirements, then Tenant, at its sole cost and expense, shall be
obligated to perform the work necessary to provide compliance with
applicable Legal Requirements (including the applicable
Massachusetts Building Code).
(B) Once the
Plans have been approved by Landlord, Tenant, at its sole cost and
expense, shall promptly, and with all due diligence, perform
Tenant’s Work as set forth on the Plans, and, in connection
therewith, the Tenant shall obtain all necessary governmental
permits and approvals for Tenant’s Work. Landlord shall
cooperate with Tenant, at no out of pocket expense to Landlord and
with no liability to Landlord, in Tenant’s efforts to obtain
such permits and approvals. All of Tenant’s Work
shall be performed strictly in accordance with the Plans and in
accordance with applicable Legal Requirements (as defined in
Section 3.4 hereof) and Insurance Requirements (as defined in
Section 5.14 hereof). Tenant shall have Tenant’s Work
performed by a general contractor first approved by Landlord,
which approval shall not be unreasonably withheld, delayed, or
conditioned, which contractor shall provide to Landlord such
insurance as the Landlord may reasonably require. Landlord has
provided to Tenant rules and regulations relative to the
performance of Tenant’s Work and any other work which the
Tenant may perform under this Lease and Tenant shall abide by all
such reasonable rules and regulations and shall cause all of
its contractors to so abide. Notwithstanding anything set
forth in said rules and regulations, not later than twenty one
(21) days after the date of this Lease, Tenant shall pay to
Landlord a one time access fee of $2,500.00 in lieu of any and all
other fees for accessing the Building during the performance of
Tenant’s Work. It shall be Tenant’s obligation to
obtain a certificate or certificates of occupancy or other like
governmental approval for the use and occupancy of the Premises to
the extent required by law, and Tenant shall not occupy the
Premises for the conduct of business until and unless it has
obtained such approval and has submitted to Landlord a
23
copy of the same.
However, the Commencement Date and the Rent Commencement Date shall
be the fixed dates as set forth in Section 3.1 hereof. Tenant
shall also prepare and submit to Landlord promptly after
Tenant’s Work is substantially complete a set of as-built
plans in both print and electronic forms showing the work performed
by Tenant to the Premises including, without limitation, any wiring
or cabling installed by Tenant or Tenant’s contractor for
Tenant’s computer, telephone and other communication
systems.
3.3
Special Allowance .
Landlord shall provide
to Tenant a special allowance of $2,236,960.00 (being the product
of (i) $40.00 and (ii) the Rentable Floor Area of the
Premises (the “Tenant Allowance”). The Tenant Allowance
shall be used and applied by Tenant solely on account of the cost
of Tenant’s Work and the “Applicable Design
Costs” (hereinafter defined). Provided that Tenant is
not in default beyond the expiration of any applicable notice or
grace period of its obligations under the Lease at the time that
Tenant requests any requisition on account of Tenant’s
Allowance, Landlord shall pay to Tenant a portion of the cost of
the work shown on each requisition (as hereinafter defined)
submitted by Tenant to Landlord within thirty (30) days of
submission thereof by Tenant to Landlord, such portion calculated
as follows: If there shall be such a default, Landlord shall
not be obligated to continue funding the Tenant Allowance until and
unless such default is fully cured within the applicable grace
period. If such default is not so cured within the grace
period, Landlord shall have no obligation to continue
funding. Each requisition shall set forth the total cost of
Tenant’s Work (which term, for the purpose hereof, shall
include Approved Design Costs) incurred during the period covered
by such requisition. Landlord shall pay for and with respect to
each such requisition an amount equal to the product of
(i) the cost of Tenant’s Work set forth in such
requisition, multiplied by (ii) a fraction, the numerator of
which is the total amount of the Tenant Allowance and the
denominator of which is the total amount of the cost of
Tenant’s Work (excluding, however, the cost of any so-called
“demountable wall systems” or other portions, if any,
of Tenant’s Work toward which the Tenant Allowance may not be
applied). Notwithstanding the foregoing, (a) in no event
shall Landlord be required to pay more than the total amount of
Tenant’s Allowance, and (b) the final payment(s) of
Tenant’s Allowance shall, if necessary for Tenant to receive
the total amount of Tenant’s Allowance that Tenant is
otherwise entitled to receive hereunder, be increased to the extent
necessary for Tenant to receive such total amount. For the
purposes hereof, a “requisition” shall mean written
documentation showing in reasonable detail the costs of the
improvements then installed by Tenant in the Premises (i.e., the
Tenant’s Work). Each requisition shall be accompanied
by evidence reasonably satisfactory to Landlord that all work
covered by previous requisitions has been fully paid by
Tenant. Further, the parties hereby acknowledge that the
provisions of the next to last sentence of Section 5.14 of
this Lease shall apply to all of Tenant’s Work under this
Article III. At Landlord’s request from time to
time, Tenant shall deliver lien waivers from all contractors and
subcontractors performing Tenant’s Work. Landlord shall
have the right, upon reasonable advance notice to Tenant, to
examine Tenant’s invoices relating to each requisition in
order to verify the amount thereof. Tenant shall submit
requisition(s) no more often than monthly. For the purposes
hereof, the cost to be so
24
reimbursed by Landlord
shall consist solely of the cost of leasehold improvements and the
Approved Design Costs (hereinafter defined) but not the cost of any
of Tenant’s personal property, trade fixtures or trade
equipment or any so-called soft costs or other design costs in
excess of the Approved Design Costs. The “Approved Design
Costs” shall mean the architectural, engineering and space
planning fees and charges actually paid by Tenant to third party,
unaffiliated architects, engineers and space planners respecting
the preparation of Tenant’s Plans but not to exceed the
product of (i) $5.00 and (ii) the 55,924 square feet of
Rentable Floor Area of the Premises. Notwithstanding the foregoing,
Landlord shall be under no obligation to apply any portion of the
Tenant Allowance for any purposes other than as provided in this
Section 3.4, nor shall Landlord be deemed to have assumed any
obligations, in whole or in part, of Tenant to any contractors,
subcontractors, suppliers, workers or materialmen. Further, the
Tenant Allowance shall only be applied towards the cost of
leasehold improvements and the Approved Design Costs but in no
event shall Landlord be required to make application of any portion
of the Tenant Allowance towards Tenant’s personal property
any “demountable wall systems”, if any, trade fixtures
or moving expenses or on account of any supervisory fees, overhead,
management fees or other payments to Tenant, to any partner or
affiliate of Tenant or to any third party excepting “Approved
Design Costs” (hereinabove defined) and payments to
Tenant’s contractors. In the event that such cost of
Tenant’s Work, including the Approved Design Costs, is less
than the Tenant Allowance, Tenant shall not be entitled to any
payment or credit nor shall there be any application of the same
toward Annual Fixed Rent or Additional Rent owed by Tenant under
this Lease.
3.4
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. 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. Tenant acknowledges that Tenant is acting for its
own benefit and account and that Tenant will not be acting as
Landlord’s agent in performing any Tenant Work, accordingly,
no contractor, subcontractor or supplier shall have a right to lien
Landlord’s interest in the Property in connection with any
work.
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ARTICLE
IV
Landlord’s
Covenants; Interruptions and Delays
4.1
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Landlord Covenants
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Landlord covenants and
agrees to the following during the Term:
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4.1.1
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Services
Furnished by Landlord .
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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.
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4.1.2
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Additional Services
Available to Tenant
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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 reasonable and equitable rates from time to time
established by Landlord. Tenant agrees to pay to Landlord, as
Additional Rent, at the rates described above in this Section, the
charges of Landlord providing 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 express, written request of Tenant within thirty (30) days
after being billed therefor.
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4.1.3
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Roof, Exterior Wall,
Floor Slab and Common Facility Repairs
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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.
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4.2
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Interruptions and Delays in Services and
Repairs, etc
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(A)
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
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26
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.
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.
(B) Notwithstanding
the foregoing, upon the occurrence of any event or circumstance
resulting from or caused by (x) any failure of Landlord to
provide electrical, heating, ventilating, air conditioning, or all
elevator service to the Premises or access to the Premises that
prevents Tenant from using the Premises or any portion thereof or
(y) any alterations, replacements, or improvements made by
Landlord to other tenant premises within the Building (any such
event or circumstance described in clauses (x) or
(y) above being hereinafter referred to as an “Abatement
Event”), Tenant shall give Landlord notice (“Abatement
Notice”) of any such Abatement Event and if such Abatement
Event continues beyond the Eligibility Period (as hereinafter
defined), then the Annual Fixed Rent shall be abated entirely or
reduced, as the case may be, after the expiration of the
Eligibility Period for such time that Tenant continues both to be
so prevented from using, and does not use, the Premises or a
portion thereof, in the proportion that the rentable area of the
portion of the Premises that Tenant is prevented from using, and
does not use, bears to the total Rentable Floor Area of the
Premises. The term “Eligibility Period” shall mean
(i) in connection with a failure by Landlord to provide
required services or access to the Premises due to an event or
circumstance within Landlord’s reasonable control or in
connection with any alterations, replacements, or improvements made
by Landlord to other tenant premises within the Building, a period
of five (5) consecutive business days after Landlord’s
receipt of any Abatement Notice(s) and (ii) in connection
with a failure by Landlord to provide required services or access
to the Premises due to an event or circumstance not within
Landlord’s reasonable control, a period of fourteen
(14) consecutive business days after Landlord’s receipt of
any Abatement Notice(s).
4.3
Landlord’s Indemnity
(a) Indemnity
. Subject to the limitations in Section 8.4 and in
Section 5.7.1 and Section 5.8 of this Lease, and to the
extent not resulting from any act, omission, fault, negligence or
misconduct of Tenant or its contractors, licensees, invitees,
agents, servants or employees, Landlord agrees to indemnify and
save harmless Tenant from and against any claim by a third party
arising from any injury to or death of any person or damage to
or
27
destruction of the
property of any person other than Tenant occurring in the Premises
or in the Complex after the date that possession of the Premises is
first delivered to Tenant and until the expiration or earlier
termination of the Lease Term, to the extent such injury results
from the negligence or willful misconduct of Landlord or
Landlord’s employees, or from any breach or default by
Landlord in the performance or observance of its covenants or
obligations under this Lease; provided, however, that in no event
shall the aforesaid indemnity render Landlord responsible or liable
for any loss or damage to fixtures, personal property or other
property of Tenant, and Landlord shall in no event be liable to
Tenant for any indirect, consequential or punitive damages.
Tenant shall provide notice of any such third party claim to
Landlord as soon as practicable. The provisions of this
Section shall not be applicable to the holder of any mortgage
now or hereafter on the Property, the Complex or the Building
(whether or not such holder shall be a mortgagee in possession of
or shall have exercised any rights under a conditional, collateral
or other assignment of leases and/or rents respecting the Property,
the Complex or the Building) unless and until such mortgagee shall
enter into actual physical possession of the Complex in which case
such mortgagee shall be bound under this Section 4.3 for
events covered by this Section 4.3 but only first actually
occurring from and after the date such mortgagee enters into actual
physical possession of the Complex subject to the limitations set
forth in Section 8.4, 5.7.1 and 5.8 of this Lease.
(b)
Breach . In the event that Landlord breaches any of
its indemnity obligations hereunder or under any other contractual
or common law indemnity: (i) Landlord shall pay to the Tenant
Parties all liabilities, loss, cost, or expense (including
reasonable attorney’s fees) reasonably incurred by the Tenant
Parties as a result of said breach; and (ii) the Tenant
Parties may deduct and offset from any amounts due to Landlord
under this Lease any amounts owed by Landlord pursuant to this
section.
(c) No
limitation . The indemnification obligations under this
Section shall not be limited in any way by any limitation on
the amount or type of damages, compensation or benefits payable by
or for Landlord under workers’ compensation acts, disability
benefit acts, or other employee benefit acts. Landlord waives
any immunity from or limitation on its indemnity or contribution
liability to the Tenant Parties based upon such acts.
(d)
Survival . The terms of this section shall survive any
termination or expiration of this Lease.
(e)
Costs . The foregoing indemnity and hold harmless
agreement shall include indemnity for all reasonable costs,
expenses and liabilities (including, without limitation,
attorneys’ fees and disbursements) incurred by the Tenant
Parties in connection with any such claim or any action or
proceeding brought thereon, and the defense thereof. In
addition, in the event that any action or proceeding shall be
brought against one or more Tenant Parties by reason of any such
claim, Landlord, upon request from the Tenant Party, shall resist
and defend such action or proceeding on behalf of the Tenant Party
by counsel appointed by Landlord’s insurer (if such claim is
covered by insurance without
28
reservation) or
otherwise by counsel reasonably satisfactory to the Tenant
Party. The Tenant Parties shall not be bound by any
compromise or settlement of any such claim, action or proceeding
without the prior written consent of such Tenant Parties, which
consent shall not be unreasonably withheld. Such consent
shall not be required for any compromise or settlement pursuant to
which the Tenant Parties are completely released from
liability.
(f) The provisions of this
Section 4.3 are subject to the limitations set forth in
Section 8.4 hereof.
4.4
Landlord’s Insurance
(a) Required insurance
. Landlord shall maintain insurance against loss or damage
with respect to the Building on an “all risk” type
insurance form, with customary exceptions, subject to such
commercially reasonable deductibles as Landlord may determine, in
an amount equal to at least the replacement value of the
Building. Landlord shall also maintain such insurance with
respect to any improvements, alterations, and permanent fixtures of
Tenant located at the Premises but Landlord shall not be obligated
to insure Tenant’s Property or any demountable walls or
partitions. Landlord shall maintain a policy of commercial
general liability insurance, on an occurrence basis, issued on a
form at least as broad as Insurance Services Office
(“ISO”) Commercial General Liability Coverage
“occurrence” form CG 00 01 10 01 or another ISO
Commercial General Liability “occurrence” form
providing equivalent coverage. Such insurance shall include
broad form contractual liability coverage, specifically covering
but not limited to the indemnification obligations undertaken by
Landlord in this Lease. The minimum limits of liability of
such insurance shall be $5,000,000.00 per occurrence per
location. Landlord shall maintain worker’s compensation
insurance or participation in a monopolistic state workers’
compensation fund. The cost of such insurance shall be
treated as a part of Operating Expenses. Such insurance shall
be maintained with an insurance company selected by Landlord.
Payment for losses thereunder shall be made solely to
Landlord. Upon Tenant’s reasonable request from time to
time but not more frequently than once each calendar year, Landlord
shall provide Tenant with certificates evidencing the insurance
coverage required by this Lease.
(b) Optional insurance
. Landlord may maintain such additional insurance with
respect to the Building, the Site and the Complex, including,
without limitation, earthquake insurance, terrorism insurance,
flood insurance, liability insurance, pollution liability insurance
and/or rent insurance, as Landlord may in its reasonable business
judgment elect, provided that such additional insurance is
customarily carried by the owners of buildings similar to the
Buildings in the metropolitan Boston area. Landlord may also
maintain such other insurance as may from time to time be required
by any Mortgagee. The cost of all such additional insurance
shall also be part of the Operating Expenses.
(c) Blanket and
self-insurance . Any or all of Landlord’s insurance
may be
29
provided by blanket
coverage maintained by Landlord or any affiliate of Landlord under
its insurance program for its portfolio of properties, or by a
commercially reasonable program of self-insurance maintained by
Boston Properties Limited Partnership and/or Boston
Properties, Inc. (or by any successor landlord) through a
captive insurance company authorized and regulated by a state
government of one of the United States or by the government of the
captive’s domicile, and in such event Operating Expenses
shall include the portion of the reasonable cost of blanket
insurance that is equitably allocable to the Building. In
addition, with respect to self-insurance:
(i)
the cost of such self insurance included in Operating Expenses
shall not exceed the cost that Landlord would have incurred to
purchase from an insurance company the insurance coverage provided
by such self insurance;
(ii)
the cost to repair any damage covered by such self-insurance shall
not be included in Operating Expenses except for an amount equal to
a commercially reasonable deductible under a third-party policy;
and
(iii)
the provisions of Section 5.8 hereof shall operate to release
Tenant from liability for any loss or damage covered by such
self-insurance if and to the extent that such self-insurance
replaces insurance which Landlord would otherwise have been
required to maintain under this Lease but for Landlord’s
decision to self-insure such risk.
(d) No obligation .
Landlord shall not be obligated to insure, and shall not assume any
liability of risk of loss for, Tenant’s Property, including
any such property of tenant’s subtenants or occupants.
Landlord will also have no obligation to carry insurance against,
nor (except as set forth in Section 4.2(B)) be
responsible for, any loss suffered by Tenant, subtenants or other
occupants due to interruption of Tenant’s or any
subtenant’s or occupant’s business.
4.5
Hazardous Materials
Landlord represents to
Tenant that to the best of Landlord’s actual knowledge as of
the Date of this Lease, except as set forth in that certain
“Report On Oil And Hazardous Material Site Evaluation Update,
92-100 Hayden Avenue, Lexington, Massachusetts” by
Haley & Aldrich, Inc., (File No. 11817-040 dated
September, 1996) and that certain “Asbestos Survey Report,
92-100 Hayden Avenue, Lexington, Massachusetts” prepared for
Boston Properties, Inc. by Covino Environmental
Associates, Inc., dated May 20, 1997 (Covino Project
No. 97-00226) (copies of which have been previously provided
to Tenant), there are no Hazardous Materials (as that term is
defined in Section 5.3 below, which term, for the purposes
hereof, shall also include mold) in the Building or on, at,
beneath, or migrating from the Site which are required to be
investigated, removed, or otherwise abated in accordance with
applicable Hazardous Materials Laws. Subject to the
limitations of Section 8.4 hereof, Landlord shall remove or
abate as required by
30
applicable Hazardous
Materials Laws Hazardous Materials on, at, beneath, or migrating
from the Site or in the Building, provided that the foregoing
removal and/or abatement requirements shall not apply to Hazardous
Materials (including mold) which first become present in the
Building or on the Site after the Commencement Date
(x) because of the use, action or (where action is required
hereunder or under Hazardous Materials Laws) inaction of any tenant
or occupant in the Site, including Tenant, or any employee, agent
or contractor of Tenant or (y) because of any use, alterations
or other construction by or for Tenant or any occupant (other than
any Landlord Party) of the Building (items (x) and
(y) being herein collectively called the
“Exclusions”). Subject to the limitations of
Section 8.4 hereof, Landlord agrees to defend, indemnify, and
save Tenant harmless from liability, loss and damage to persons or
property and from any claims (including, without limitation, bodily
injury, property damage, and environmental clean up claims and
notices of responsibility), actions, proceedings and expenses in
connection therewith resulting from (1) the inaccuracy of
Landlord’s representation in the first sentence of this
Section 4.5; (2) the presence of Hazardous Materials on,
at, beneath, or migrating from the Site or in the Building, except
to the extent present as a result of the action of Tenant, or any
employee, agent or contractor of Tenant; or (3) the failure of
Landlord to fulfill its obligations under the second sentence of
this Section 4.5; provided, however, that in no event shall
the foregoing indemnity (i) cover or in any way include the
Exclusions and (ii) render Landlord liable for any loss or
damage to Tenant’s Property and Landlord shall in no event be
liable for indirect, consequential or punitive damages. This
indemnity and hold harmless agreement shall survive the expiration
or earlier termination of this Lease.
4.6
Compliance with Law
To comply with all
applicable Legal Requirements now or hereafter in force that impose
a duty on Landlord with respect to the common areas of the
Complex.
4.7
Furniture Removal
Within twenty (20) days
following execution of this Lease by both Tenant and Landlord,
Landlord shall, at its sole expense, remove all furniture currently
located in the Premises other than the fixtures and equipment
listed on Exhibit E attached hereto (the “Remaining
Equipment”). Tenant shall have the right to use the Remaining
Equipment throughout the Term and, at the expiration of the Term,
shall return the Remaining Equipment to Landlord in good condition,
reasonable wear and tear excepted.
4.8
Cafeteria Operations
Reference is made to
the fact that there presently exists within the Building a
cafeteria area (the “Cafeteria Space”) and cafeteria
equipment. During the term of this Lease, Tenant shall have
the right, at its sole cost and expense, to operate a cafeteria in
the Cafeteria Space for the conduct of a food service for
Tenant’s employees and business invitees but not for the
general public provided, however, that Tenant shall first obtain
and shall keep in full force and effect such special permits,
approvals, licenses and other approvals as shall be required by
applicable laws, by-laws, orders, rules and
regulations.
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In connection with the
operation of such cafeteria, Tenant may enter into a food service
contract with a cafeteria operator or other food service
provider. Landlord shall have no liability under such
contract but shall have a right to review and approve such
contract. Landlord shall have no responsibility for maintenance,
repair or replacement of the cafeteria equipment.
ARTICLE
V
Tenant’s
Covenants
Tenant covenants and
agrees to the following during the Term and such further time as
Tenant occupies any part of the Premises:
5.1
Payments
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, 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, in each case reasonable
wear and tear, damage by fire or other casualty or taking under the
power of eminent domain and damage resulting from the negligence of
any of the Landlord Parties, their agents, contractors or employees
or from the failure of Landlord to perform its obligations under
this Lease only excepted, and at the expiration or termination of
this Lease peaceably to yield up the Premises including all
construction, work, improvements, and all alterations and additions
thereto in good order, repair and condition, reasonable wear and
tear only excepted, first removing all furniture, fixtures,
equipment, goods and effects of Tenant and, to the extent specified
by Landlord by notice to Tenant given at least thirty (30) 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 (but specifically excluding all
cabling and wiring existing in the Premises as of the date of this
Lease) and all partitions, and 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 Buildings caused by Tenant, Tenant’s agents,
contractors, employees, sublessees, licensees, concessionaires or
invitees.
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5.3
Use
To use and occupy the
Premises for no other purpose other than the Permitted Use, and not
to injure or deface the Premises, Building, the Additional
Building, the Site or any other part of the Site nor to permit in
the Premises or on the Site any auction sale, vending machine
(other than those used exclusively by Tenant’s personnel), or
inflammable fluids or chemicals (except as set forth in the last
grammatical paragraph of this Section 5.3), or nuisance, or
the emission from the Premises of any objectionable noise or odor,
nor to permit in the Premises anything which would 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 likely to disturb the quiet enjoyment of
other occupants of the Building or the Additional Building,
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 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 asbestos,
petroleum (and any breakdown product thereof), lead containing
paint, PCBs, and any other 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 promptly after becoming aware of same 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.
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 which they are normally used for office
uses, and in compliance with all Hazardous Materials Laws and other
applicable laws, ordinances, bylaws, rules and regulations,
and Tenant obtains and complies with all permits required by
Hazardous Materials Laws or any other laws, ordinances, bylaws,
rules or regulations prior to the use or presence of any such
substances in the Premises.
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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, 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, 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.
5.5
Safety Appliances
To
keep the Premises equipped with all safety appliances required by
any public authority because of (i) any use made by Tenant
other than normal office use, (ii) Tenant’s particular
configuration of furniture within the Premises,
(iii) any alterations, additions or improvements made by or on
behalf of Tenant in the Premises, or (iv) any subletting of
any portion of the Premises, and to procure all licenses and
permits so required because of any of the foregoing items described
in clauses (i), (ii), (iii), or (iv) above, it being
understood that the foregoing provisions shall not be construed to
broaden in any way Tenant’s Permitted Use. Landlord
agrees to provide any other safety appliances so required by law
(i.e., except to the extent the same are required by reason of
clauses (i), (ii), (iii), or (iv) above), the cost of which
shall be included in Landlord’s Operating Expenses to the
extent provided in Section 2.6 above.
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 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 herein 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.
5.6.1 Notwithstanding
the foregoing provisions of Section 5.6 above and the
provisions of Sections 5.6.2, 5.6.3, and 5.6.4 below, but subject
to the provisions of Section 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) (i) to any entity
controlling, controlled by, or under common control with Tenant
(any such entity referred to in this item (i), a “Tenant
Affiliate”), (ii) or to any entity into which Tenant may
be converted or with which it may merge, or (iii) to any
entity that acquires substantially all of the stock of Tenant or
the assets of Tenant, provided that the entity (other than a Tenant
Affiliate) to which this
34
Lease is so assigned or
which so sublets the Premises and/or any guarantor of such entity
has a credit worthiness (e.g., assets on a pro forma basis using
generally accepted accounting principles consistently applied and
using the most recent financial statements) which is the same or
better than the Tenant as of the date of this Lease. For the
purposes of the preceding sentence, “control” shall
mean ownership, direct or indirect, of the majority of the voting
equity interests in any such entity. Any of the transfers
described in this Section 5.6.1 is referred to herein as a
“Permitted Transfer”.
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 up to and including one
(1) specific full floor of the Building (as distinguished from
floor area on a number of floors totaling the square footage of any
given floor) provided that in each instance Tenant, at its sole
cost and expense, shall construct such demising walls and secondary
or additional means of ingress and egress as shall be required by
applicable Legal Requirements and provided, further, that in each
instance Tenant first obtains the express prior written consent of
Landlord, which consent shall not be unreasonably withheld,
conditioned or delayed. Landlord shall not be deemed to be
unreasonably withholding its consent to such a proposed subleasing
if:
(a)
the proposed subtenant is (i) a tenant or subtenant in
the Additional Building and Landlord then has available for
lease space in the Additional Building comparable in size to
the space proposed to be subleased to such subtenant or
(iii) not of a character consistent with the operation of a
first class office and development building (by way of example,
Landlord shall not be deemed to be unreasonably withholding its
consent to a subleasing to any governmental or quasi-governmental
agency that regularly deals with the publ
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