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Exhibit 10.2
LEASE
BURLINGTON WOODS OFFICE PARK
1 BURLINGTON WOODS DRIVE, BURLINGTON, MASSACHUSETTS
Premises: Portion of the First (1st) Floor
Tenant: SOUNDBITE COMMUNICATIONS, INC.
TABLE OF CONTENTS
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1 BASIC LEASE PROVISIONS
............................................. 1
1.1. INTRODUCTION
.................................................... 1
1.2. BASIC DATA AND DEFINITIONS
...................................... 1
2. DEMISING OF PREMISES, TERM, OPTIONS
................................ 2
2.1. DEMISE OF PREMISES
.............................................. 2
2.2. APPURTENANT RIGHTS AND RESERVATIONS
............................. 2
2.3. TERM
............................................................ 3
2.4. OPTION TO EXTEND THE TERM
....................................... 3
3. RENT
...............................................................
4
3.1. FIXED RENT
...................................................... 4
3.2. FIXED RENT FOR AVAILABLE SPACE AND DURING EXTENSION TERM
........ 4
3.3. LATE PAYMENT
.................................................... 6
4. USE OF PREMISES; ALTERATIONS
....................................... 6
4.1. PERMITTED USE
................................................... 6
4.2. ALTERATIONS
..................................................... 7
5. ASSIGNMENT AND SUBLETTING
.......................................... 8
5.1. GENERALLY
....................................................... 8
5.2. REIMBURSEMENT, RECAPTURE AND EXCESS RENT
........................ 10
5.3. CERTAIN TRANSFERS
............................................... 12
6. CONDITION OF PREMISES AND RESPONSIBILITY FOR REPAIRS
............... 13
6.1. CONDITION OF PREMISES
........................................... 13
6.2. INTENTIONALLY OMITTED
........................................... 13
6.3. REPAIRS TO BE MADE BY LANDLORD
.................................. 13
6.4. MAINTENANCE AND REPAIRS TO BE MADE BY TENANT
.................... 14
6.5. FLOOR LOAD - HEAVY MACHINERY; OCCUPANT DENSITY
.................. 14
7. SERVICES; UTILITY CHARGES
.......................................... 15
7.1. LANDLORD'S SERVICES
............................................. 15
7.2. UTILITY SERVICES AND CHARGES
.................................... 16
7.3. ELECTRICAL SERVICE AND ELECTRICAL CHARGE
........................ 17
8. ADDITIONAL RENT FOR TAXES AND OPERATING EXPENSES
................... 17
8.1. TENANT'S PAYMENT OF ITS SHARE OF REAL ESTATE TAXES
.............. 17
8.2. TENANT'S PAYMENT OF ITS SHARE OF OPERATING EXPENSES
............. 18
9. INDEMNITY AND INSURANCE
............................................ 22
9.1. INDEMNITY
....................................................... 22
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Burlington Woods - SOUNDBITE COMMUNICATIONS, INC. (BWOP 1)
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9.2. INSURANCE
....................................................... 22
9.3. TENANT'S RISK
................................................... 23
9.4. INJURY CAUSED BY THIRD PARTIES
.................................. 23
9.5. LANDLORD'S INSURANCE
............................................ 23
10. LANDLORD'S ACCESS TO PREMISES
...................................... 24
10.1. LANDLORD'S RIGHT OF ACCESS
...................................... 24
10.2. EXHIBITION OF SPACE TO PROSPECTIVE TENANTS
...................... 24
10.3. KEYS
............................................................ 24
11. FIRE, EMINENT DOMAIN, ETC
.......................................... 24
11.1. FIRE OR OTHER CASUALTY
.......................................... 24
11.2. EMINENT DOMAIN
.................................................. 25
12. DEFAULT
............................................................ 26
12.1. TENANT'S DEFAULT
................................................ 26
12.2. REMEDIES
........................................................ 27
12.3. INTEREST ON LATE PAYMENTS
....................................... 28
12.4. LANDLORD'S DEFAULT
.............................................. 28
12.5. COSTS OF ENFORCEMENT
............................................ 29
12.6. BANKRUPTCY AND INSOLVENCY
....................................... 29
13. MISCELLANEOUS PROVISIONS
........................................... 30
13.1. EXTRA HAZARDOUS USE
............................................. 30
13.2. WAIVER
.......................................................... 30
13.3. COVENANT OF QUIET ENJOYMENT
..................................... 30
13.4. LANDLORD'S LIABILITY
............................................ 31
13.5. NOTICE TO MORTGAGEE AND GROUND LESSOR
........................... 31
13.6. ASSIGNMENT OF RENTS
............................................. 32
13.7. MECHANIC'S LIENS
................................................ 32
13.8. NO BROKERAGE
.................................................... 32
13.9. INVALIDITY OF PARTICULAR PROVISIONS
............................. 33
13.10. PROVISIONS BINDING, ETC
......................................... 33
13.11. RECORDING
....................................................... 33
13.12. NOTICES
......................................................... 33
13.13. WHEN LEASE BECOMES BINDING
...................................... 34
13.14. PARAGRAPH HEADINGS
.............................................. 34
13.15. RIGHTS OF MORTGAGEE
............................................. 34
13.16. STATUS REPORT
................................................... 34
13.17. TENANT'S FINANCIAL CONDITION
.................................... 35
13.18. ADDITIONAL REMEDIES OF LANDLORD; SURVIVAL
....................... 35
13.19. WAIVER OF COUNTERCLAIMS
......................................... 35
13.20. CONSENTS
........................................................ 36
13.21. HOLDING OVER
.................................................... 36
13.22. NON-SUBROGATION
................................................. 36
13.23. ENVIRONMENTAL HAZARDS
........................................... 37
13.24. LETTER OF CREDIT
................................................ 38
13.25. GOVERNING LAW
................................................... 38
13.26. INTENTIONALLY OMITTED
........................................... 38
13.27. SECURITY MEASURES
............................................... 38
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13.28. EASEMENTS
....................................................... 39
13.29. CHANGES TO PROPERTY
............................................. 39
13.30. INCORPORATION OF PRIOR AGREEMENTS
............................... 39
13.31. AMENDMENTS
...................................................... 40
13.32. COVENANTS
....................................................... 40
13.33. AUCTIONS
........................................................ 40
13.34. MERGER
.......................................................... 40
13.35. AUTHORITY
....................................................... 40
13.36. RELATIONSHIP OF PARTIES
......................................... 40
13.37. RIGHT TO LEASE
.................................................. 40
13.38. CONFIDENTIALITY
................................................. 40
13.39. OFAC CERTIFICATION AND INDEMNITY
................................ 41
13.40. WAIVER OF JURY TRIAL
............................................ 41
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iii
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LEASE
BURLINGTON WOODS OFFICE PARK
This Lease, by and between Landlord and the Tenant (as defined
below), relates
to the space in the building (the "Building") known as Building No.
1,
Burlington Woods Office Park (which office park, and all
improvements therein
from time to time, shall be referred to as the "Office Park"), in
Burlington,
Middlesex County, Massachusetts, with an address at One Burlington
Woods Drive,
Burlington, Massachusetts. The term "Lot" shall mean the parcel of
land on which
the Building is located; and the term "Property" shall mean the Lot
and all
improvements thereon from time to time, including the Building.
The parties to this Lease hereby agree with each other as
follows:
1. BASIC LEASE PROVISIONS
1.1. INTRODUCTION.
As further supplemented in the balance of this instrument and its
Exhibits, the
following sets forth the basic terms of this Lease and, where
appropriate,
constitutes definitions of certain terms used in this Lease.
1.2. BASIC DATA AND DEFINITIONS.
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Lease Date: May _______, 2006.
Landlord: BURLINGTON WOODS OFFICE TRUST NO. 1
Present Mailing Address of c/o Finard & Company, LLC
Landlord: One Burlington Woods Drive
Burlington, Massachusetts 01803
Tenant: SOUNDBITE COMMUNICATIONS, INC.,
a Delaware corporation.
Present Mailing Address of Tenant: One Burlington Woods Drive
Burlington, Massachusetts 01803
Term or original Term: Approximately two (2) years commencing
on
the Scheduled Commencement Date and
expiring on May 31, 2008, unless
otherwise terminated or extended as
provided in this Lease.
Scheduled Commencement Date: June 1, 2006.
Annual Monthly
Fixed Rent: PSF Fixed Rent Installment
$20.00 $72,080.00 $6,006.67
Electrical Charge: Currently, an amount equal to $1.50
multiplied by the Rentable Floor Area of
the Premises but Landlord reserves the
right to increase the Electrical Charge
by a percentage equal to any percentage
increase in all charges for electrical
service provided to the Building in
common with the Premises' electrical
service.
Option Period: One extension period of three (3) years.
Premises: The portion of the Building (as defined
above) located on the first (1st) floor,
and shown as outlined on Exhibit A
attached hereto.
Rentable Floor Area of the Premises: Approximately 3,604 square
feet.
Rentable Floor Area of the Building: Approximately 114,212 square
feet.
Permitted Use: First-class office space, and no other
use.
Letter of Credit Amount: $12,013.34.
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Brokers: Spaulding & Slye Colliers International
and Richards Barry Joyce & Partners, LLC.
Tax Base: The Taxes for Tax Year 2007 (the fiscal
year ending June 30, 2007), as provided
in Section 8.1.
Base Operating Expenses: The Operating Expenses for Operating
Year
2006 (the calendar year ending December
31, 2006), as provided in Section 8.2.
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2. DEMISING OF PREMISES, TERM, OPTIONS
2.1. DEMISE OF PREMISES.
2.1.1. Landlord hereby demises and leases to Tenant, and Tenant
hereby
accepts from Landlord, the Premises, subject to the terms and
conditions of this
Lease.
2.1.2. For the purposes of this Lease, it is agreed that the
Rentable Floor
Area of the Premises shall be as stated in Section 1.2 above, and
the Rentable
Floor Area of the Building shall be as stated in Section 1.2
above.
2.2. APPURTENANT RIGHTS AND RESERVATIONS.
2.2.1. Tenant shall have, as appurtenant to the Premises, the
nonexclusive
right to use and to permit its invitees to use in common with
others, public or
common lobbies, hallways, stairways, passenger elevators and
sanitary facilities
in the Building necessary for Tenant's use and occupancy of the
Premises, any
other common areas and facilities as Landlord may designate from
time to time,
and (as provided in the next subsection) the parking facilities
serving the
Building (collectively, "common areas"). Such rights shall always
be subject to
reasonable rules and regulations from time to time established by
Landlord by
suitable notice, and shall be subject to the right of Landlord to
designate and
change from time to time areas and facilities to be so used;
provided, however,
Landlord shall use commercially reasonable efforts to minimize any
material
interference with Tenant's use of or access to the Premises.
2.2.2. Tenant shall also have, as appurtenant to the Premises,
the
nonexclusive right to use, and permit its employees and invitees to
use, in
common with others, on a first come, first serve basis, the open
parking
facilities serving the Building (excepting those spaces now or
hereafter
designated by Landlord as being for the exclusive use of others).
Such parking
rights shall be subject to the right of Landlord to limit the
number of parking
spaces available to Tenant, its employees and invitees, where the
use of the
same exceeds, in Landlord's judgment, the ratio of 3.3 spaces per
1,000 square
feet of the Rentable Floor Area of the Building.
2.2.3. Excepted and excluded from the Premises are the roof and
all
perimeter walls of the Premises, except the inner surfaces thereof,
but the
entry doors to the Premises are not excluded from the Premises and
are a part
thereof for all purposes; and Tenant agrees that Landlord shall
have the right
to place in the Premises (but in such manner as to reduce to a
minimum
interference with Tenant's use of the Premises) utility lines,
pipes and the
like to serve premises other than the Premises, and to replace and
maintain and
repair such utility lines, pipes and the like in, over and upon the
Premises.
2.2.4. During the hours of 8:00 A.M. to 6:00 P.M., Monday through
Friday,
legal holidays (both federal and state) in all cases excepted
("Normal Building
Operating Hours"), the Building shall be open and access to the
Premises shall
be freely available, subject to interruption due to causes beyond
Landlord's
reasonable control. During periods other than Normal Building
Operating Hours,
Landlord
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shall provide means of access to the Premises, subject to security
restrictions
on such access, such as card access systems, and to Section 13.4.2
below. Access
to the Premises during Normal Building Operating Hours and at other
times shall
always be subject to reasonable rules and regulations therefor from
time to time
established by Landlord by suitable notice. Tenant acknowledges
that, in all
events, Tenant is responsible for providing security to the
Premises and its own
personnel, and to the maximum extent permissible by law, Tenant
shall indemnify,
defend with counsel of Landlord's selection, and save Landlord
harmless from any
claim for injury to person or damage to property asserted by any
personnel,
employee, guest, invitee or agent of Tenant which is suffered or
occurs in or
about the Premises or in or about the Building by reason of the act
of any
intruder or any other person in or about the Premises or the
Building.
2.2.5. Landlord shall provide Tenant with the use of the modular
furniture
("Modular Furniture") and all telephone and data wiring, cabling
relating
thereto, currently located in the Premises. Such Modular Furniture
is provided
to Tenant for use during the Lease Term on an "as is" "where is"
basis with no
representations or warranties of any kind or nature, express or
implied,
including the condition or suitability for Tenant's use thereof,
none having
been made. Tenant shall be responsible for all costs and expenses
relating to
insuring, installing, moving, maintaining and wiring the Modular
Furniture and
shall return and yield-up the Modular Furniture with the Premises
upon the
termination or expiration of this Lease in the same condition as
they were
provided to Tenant, damage by reasonable wear and tear, but not
casualty,
excepted, and Tenant shall not remove the Modular Furniture from
the Premises or
materially modify or alter the Modular Furniture without, in each
instance,
obtaining Landlord's prior written consent, which consent shall not
be
unreasonably withheld, conditioned or delayed.
2.3. TERM.
2.3.1. Subject to the conditions herein stated, Tenant shall hold
the
Premises for the Term (as defined in Section 1.2) commencing on the
Commencement
Date (as defined below) and expiring at midnight of the last day of
the Term,
unless sooner terminated as provided herein.
2.3.2. The Scheduled Commencement Date set forth in Section 1.2 is
an
estimated Commencement Date. The actual Commencement Date shall be
the date
possession of the Premises is tendered to Tenant in accordance with
the
provisions of this Lease; provided, however, that the term of this
Lease shall
be computed from the first day of the calendar month following the
Commencement
Date if the Commencement Date is not on the first day of the
month.
Notwithstanding the Scheduled Commencement Date specified in
Section 1.2, if for
any reason Landlord cannot deliver possession of the Premises to
Tenant on said
date, Landlord shall not be subject to any liability therefor, nor
shall such
failure affect the validity of this Lease or the obligations of
Tenant
hereunder; provided, however, in such a case, Tenant shall not be
obligated to
pay rent or perform any other obligation of Tenant under this
Lease, except as
may be otherwise provided in this Lease, until possession of the
Premises is
tendered to Tenant. Tenant at it's election may terminate this
Lease by
providing written notice to Landlord if Landlord has not tendered
possession of
the Premises to Tenant in accordance with the Lease by June
30,2006.
2.3.3. Landlord and Tenant agree to execute a supplemental
agreement
confirming the actual Commencement Date and expiration date of the
Term, once
same are determined.
2.4. OPTION TO EXTEND THE TERM.
The Tenant shall have the option to extend the Term of this Lease
for an
additional period equal to the
3
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Option Period (the "Extension Term"), provided that: (i) this Lease
is in full
force and effect; (ii) Tenant is not in default of the terms and
conditions of
this Lease at the time it elects to extend the Term or at the
commencement of
the Extension Term; (iii) the original named Tenant has not
assigned this Lease
or sublet any portion of the Premises; and (iv) Tenant has given
Landlord
written notice of its election to extend the Term no later than 9
months prior
to the expiration date of the original Term of this Lease. In the
event that
Tenant shall extend the Term as aforesaid, such extension shall be
upon the same
terms and conditions as set forth herein except that: no further
right to extend
shall be deemed to be included; and the annual Fixed Rent payable
hereunder
shall be adjusted in accordance with the provisions of Section 3.
Should Tenant
so extend the Term of this Lease, the term "Term" as used herein
shall mean the
original Term together with the Extension Term.
3. RENT
3.1. FIXED RENT.
3.1.1. Tenant agrees to pay to Landlord, without offset or
deduction and
without previous demand therefor, except as expressly provided
herein, annual
Fixed Rent during each Lease Year (as defined below) of the Term.
The annual
Fixed Rent during the original Term shall be as provided in Section
1.2 above.
3.1.2. All such annual Fixed Rent shall be payable in equal
monthly
installments, in advance, on the first day of each and every
calendar month
during the Term, commencing on the Commencement Date, to Landlord,
or as
directed by Landlord, at the Present Mailing Address of Landlord
(as set forth
in Section 1.2) or at the address from time to time designated by
Landlord.
3.1.3. Fixed Rent for any partial month shall be paid by Tenant on
a pro
rata basis, and if the Commencement Date, except as otherwise
expressly provided
in Section 1.2 above, occurs on a day other than the first day of a
calendar
month, the first payment which Tenant shall make shall be a payment
equal to a
proportionate part of such monthly Fixed Rent for the partial month
from such
date to the first day of the succeeding calendar month, and the
monthly Fixed
Rent for such succeeding calendar month.
3.1.4. For the purposes of this Lease, "Lease Year" shall mean
each
successive 12-month period included in whole or in part in the Term
of this
Lease; the first Lease Year beginning on the Commencement Date and
ending at
midnight on the day before the first anniversary of the
Commencement Date
(provided that if the Commencement Date is not the first day of a
calendar
month, the first Lease Year shall end at midnight on the last day
of the
calendar month which includes the first anniversary of the
Commencement Date).
If the first Lease Year of the Term shall be greater than one full
calendar
year, the annual Fixed Rent for such Lease Year shall be
increased
proportionately to the greater length of such Lease Year.
3.1.5. Notwithstanding the fact that the amounts of Fixed Rent set
forth in
this Lease were or may have been determined with reference to the
floor area of
the Premises, said amounts as set forth above are stipulated to be
the amounts
of Fixed Rent due hereunder. whether or not the actual floor area
of the
Premises are in fact more or less than the floor area figures used
to determine
said Fixed Rent.
3.2. FIXED RENT FOR AVAILABLE SPACE AND DURING EXTENSION TERM.
3.2.1. During the Extension Term of this Lease (if Tenant exercises
its
option to extend the Term hereof in accordance with Section 2.4),
the annual
Fixed Rent to be paid by Tenant during each
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Lease Year of the Extension Term shall be determined as of the
first day of the
inclusion of the Available Space into the Premises and Extension
Term,
respectively, and shall equal the Fair Market Rental Value.
3.2.2. The "Fair Market Rental Value" shall mean the market rate
for the
rental of the Premises for the Extension Term including all
relevant factors,
but in no event less than the Fixed Rent payable during the last
Lease Year of
the original Term. The Fair Market Rental Value shall be determined
as follows:
(a) After the exercise by Tenant of its option to extend the
Term,
Landlord shall advise Tenant in writing of Landlord's determination
of
the Fair Market Rental Value within twenty (20) business days
of
Landlord's receipt of Tenant's exercise notice (but in no event
shall
Landlord be required to provide such determination prior to nine
(9)
months prior to the expiration of the original Term). Tenant shall
be
deemed to have accepted the rental amount contained in Landlord's
said
notice, and such rental rate shall be conclusively deemed to be
the
Fair Market Rental Value, unless Tenant notifies Landlord in
writing,
within 10 business days after Landlord's notice (but in no event
shall
Tenant's notice be sent less than eight (8) months prior to the
expiration of the original Term), that Tenant disputes the
aforementioned determination by Landlord and Tenant
affirmatively
elects to either (i) rescind its exercise of the extension option,
in
which event Tenant's extension option shall be of no further force
or
effect, or (ii) that Tenant disputes the aforementioned
determination
by Landlord, in which event the parties shall proceed to the
Fair
Market Rental Value determination as set forth in Subsection
(c)
below.
(b) In the event that Tenant so disputes the determination of the
Fair
Market Rental Value by Landlord, and the Landlord and Tenant
are
unable to agree on the Fair Market Rental Value within 30 days,
the
same shall be determined as follows: Landlord and Tenant each
shall,
within thirty (30) days thereafter, appoint an independent
appraiser
who shall be instructed to determine independently the Fair
Market
Rental Value. If the difference between the amounts so determined
by
such appraisers does not exceed ten percent (10%) of the lesser
of
such amounts, then the Fair Market Rental Value shall be an
amount
equal to fifty percent (50%) of the total of the amounts so
determined. If the difference between the amounts so determined
shall
exceed ten percent (10%) of the lesser of such amounts, then such
two
(2) appraisers shall have ten (10) days thereafter to appoint a
third
appraiser, but if such appraisers fail to do so within such ten
(10)
day period, then either Landlord or Tenant may request the
Greater
Boston Real Estate Board or any successor organization thereto
to
appoint an appraiser within ten (10) days of such request, and
both
Landlord and Tenant shall be bound by any appointment so made
within
such ten (10) day period. If no such appraiser shall have been
appointed within such ten (10) days either Landlord or Tenant
may
apply to any court having jurisdiction to have such appointment
made
by such court. Any appraiser appointed by the original appraisers,
by
the Greater Boston Real Estate Board or by such court shall be
instructed to determine the Fair Market Rental Value in
accordance
with the definition of such term contained herein and within
twenty
(20) days after its appointment. If the third appraisal shall
exceed
the higher of the first two appraisals, the Fair Market Rental
Value
shall be the higher of the first two appraisals; if the third
appraisal is less than the lower of the first two appraisals, the
Fair
Market Rental Value shall be the lower of the first two
appraisals.
In all other cases, the Fair Market Rental Value shall be equal
to
the third appraisal. Notwithstanding the foregoing, if either
party
shall fail to appoint its appraiser within the 30 day period
specified
above (such party being referred to herein as the "failing
party"),
the other party may serve notice on the failing party requiring
the
failing
5
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party to appoint its appraiser within ten (10) days of the giving
of
such notice. If the failing party shall not respond by appointment
of
its appraiser within said ten day period, then the appraiser
appointed
by the other party shall be the sole appraiser whose determination
of
the Fair Market Rental Value shall be binding and conclusive
upon
Tenant and Landlord. Each party shall pay for the fees and expenses
of
the appraiser appointed by it, but the fees and expenses of the
third
appraiser shall be shared equally by the parties. All
appraisers
appointed hereunder shall be MAI appraisers, so-called,
knowledgeable
in the field of commercial real estate and experienced in the
Boston
Metro-West market. The foregoing determination shall be
conclusive,
final and binding on the parties and enforceable in any court
having
jurisdiction over the parties.
(c) If the parties are unable to agree on the Fair Market Rental
Value (or
the arbitration procedure set forth above has not concluded) prior
to
the first day of the Extension Term, Tenant shall make monthly
payments on account of Fixed Rent (in addition to all additional
rent
and other payments hereunder) in the amount of Landlord's
initial
designation of the Fair Market Rental Value, until the Fair
Market
Rental Value has been finally established as herein provided, at
which
time an appropriate retroactive Fixed Rent adjustment payment
or
refund shall be made, if necessary.
3.2.3. During the Extension Term, Tenant shall continue to pay
all
additional rent and other payments as provided in this Lease.
3.3. LATE PAYMENT.
If any Fixed Rent, additional rent or any other payments due
hereunder from
Tenant are not paid within 10 days of the due date thereof, Tenant
shall be
charged a late fee of $250.00 for each late payment for each month
or portion
thereof that said payment remains outstanding. Said late fee shall
be payable in
addition to and not in exclusion of any other remedies of Landlord
on account of
such late payments, including without limitation the obligation to
pay interest
on late payments, as provided in Section 12.3.
4. USE OF PREMISES; ALTERATIONS
4.1. PERMITTED USE.
4.1.1. Tenant agrees that the Premises shall be used and occupied
by Tenant
only for the Permitted Use, as provided in Section 1.2 of this
Lease, and for no
other purpose or purposes.
4.1.2. Tenant further covenants and agrees to conform to the
following
provisions during the entire Lease Term:
(a) Tenant shall cause all freight (including furniture, fixtures
and
equipment used by Tenant in the occupancy of the Premises) to
be
delivered to or removed from the Building and the Premises in
accordance with reasonable rules and regulations established by
Landlord therefor and Landlord may require that such deliveries
or
removals be undertaken during periods other than Normal
Building
Operating Hours.
(b) Tenant shall not place on the exterior of exterior walls
(including
both interior and exterior surfaces of windows and doors) or on
any
part of the Building outside the Premises, any sign, symbol,
advertisement or the like visible to public view outside of the
Premises except as provided in the next paragraph.
6
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Notwithstanding the foregoing, Tenant may, at Tenant's sole
expense,
locate a sign at the entrance door to the Premises of the type
commonly and customarily found in first-class office buildings for
the
purpose of identifying and locating the Premises, which sign
and
location shall be subject to the prior approval of Landlord,
which
approval shall not be unreasonably withheld, conditioned or
delayed.
Where Landlord establishes reasonable standards for such signs,
Tenant
agrees to conform to the same and to submit for Landlord's
prior
approval, such approval not unreasonably to be withheld,
conditioned
or delayed, a plan or sketch of the sign to be placed on or about
such
entry door and location thereof. Without limitation, lettering
on
windows and window displays are expressly prohibited. Landlord
shall
also provide Tenant, and any permitted successor or assign, with
a
listing on the Building's main tenant directory.
(c) Tenant shall not perform any act or any practice which may
injure the
Premises, or any other part of the Building or the Property, or
cause
any offensive odors or loud noise, or constitute a nuisance or
a
menace to any other tenant or tenants or other persons in the
Building, or be detrimental to the reputation or appearance of
the
Building, and Tenant shall permit no waste with respect to the
Premises or the Property.
(d) Tenant shall conduct Tenant's business in the Premises in such
a
manner that Tenant's invitees shall not collect, line up or linger
in
the lobby or corridors of the Building, but shall be entirely
accommodated within the Premises.
(e) Tenant shall comply and shall cause all employees to comply
with all
rules and regulations from time to time established by Landlord
by
suitable notice, including without limitation the current rules
and
regulations, a copy of which are attached hereto as Exhibit B.
Landlord shall not, however, be responsible for the noncompliance
of
any such rules and regulations by any other tenant or occupant.
(f) Tenant shall, at Tenant's sole expense, promptly comply with
all
applicable laws, ordinances, rules, regulations, orders,
certificates
of occupancy, conditional use or other permits, variances,
covenants
and restrictions of record, the reasonable recommendations of
Landlord's engineers or other consultants, and requirements of
any
fire insurance underwriters, rating bureaus or government
agencies,
now in effect or which may hereafter come into effect during the
Lease
Term relating in any manner to the Premises or the particular
occupation or particular use (as opposed to office use generally,
the
cost for which shall be part of Operating Expenses to the extent
set
forth in Section 8.2) by Tenant (or any of its employees, visitors
or
invitees) of the Premises ("Laws and Restrictions").
4.2. ALTERATIONS.
Tenant shall not make any alterations, improvements, additions,
utility
installations or repairs (hereinafter collectively referred to as
"Alterations")
to the Premises, except in accordance with this Section 4.2 and
with the prior
written consent of Landlord, which Landlord agrees not unreasonably
to withhold,
condition or delay as to nonstructural Alterations (nonstructural
Alterations
being those that do not materially, adversely affect the Building's
structure,
roof, exterior or mechanical, electrical, plumbing, life safety or
other
Building systems or architectural design, character or use of the
Building or
Premises). Without limiting any of the terms hereof Landlord will
not approve
any Alterations requiring unusual expense to readapt the Premises
to normal
office use on lease termination or increasing the cost of
construction,
insurance or taxes on the Building or of Landlord's services to the
Premises,
unless Tenant first gives
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assurances or security acceptable to Landlord that such
re-adaptation will be
made prior to such termination without expense to Landlord and
makes provisions
acceptable to Landlord for payment of such increased cost. All
Alterations made
by Tenant shall be made in accordance with plans and specifications
which have
been approved in writing by the Landlord, in Landlord's reasonable
discretion,
pursuant to a duly issued permit, and in accordance with all Laws
and
Restrictions, the provisions of this Lease and in a good and
first-class
workmanlike manner using new materials of same or better quality as
base
building standard materials, free of all liens and encumbrances.
All Alterations
shall be performed by a contractor or contractors selected by
Tenant and
approved in writing by Landlord, in Landlord's reasonable
discretion. Except for
any non-structural Alteration costing less than $10,000.00 (per
such
Alteration), Tenant shall pay to Landlord a fee equal to the lesser
of (i) five
percent (5%) of the cost of any such Alterations, or (ii)
Landlord's actual
costs incurred, to compensate Landlord for the overhead and other
costs it
incurs in reviewing the plans therefor and in monitoring the
construction of the
Alterations; in the event any non-structural Alteration costing
less than
$10,000.00 requires Landlord's specific review or monitoring,
Tenant shall pay
the reasonable third party cost therefor incurred by Landlord. If,
as a result
of any Alterations made by Tenant, Landlord is obligated to comply
with the
Americans With Disabilities Act or any other Laws or Restrictions
and such
compliance requires Landlord to make any improvement or Alteration
to any
portion of the Building, as a condition to Landlord's consent,
Landlord shall
have the right to require Tenant to pay to Landlord prior to the
construction of
any Alteration by Tenant, the entire cost of any improvement or
alteration
Landlord is obligated to complete by such law or regulation. Tenant
agrees to
obtain or cause its contractor(s) to obtain, prior to the
commencement of any
work or Alterations, "builder's all risk" insurance in an amount
and with such
commercially reasonable coverages approved by Landlord and worker's
compensation
insurance in the statutorily required amount(s) and evidence of all
such
insurance shall be furnished to Landlord prior to the performance
by such
contractor(s) or person(s) of any work in respect of the Premises.
Landlord
shall have the right to stop any work not being performed in
conformance with
this Lease, and, at its option, but only after notice to Tenant and
Tenant fails
to promptly remedy such non-conformance, may repair or remove
non-conforming
work at the expense of Tenant. Tenant hereby indemnifies and holds
Landlord
harmless from and against any liens, encumbrances and violations of
Laws and
Restrictions. The filing of any lien or encumbrance, or the
violation of Laws or
Restrictions, shall constitute a default hereunder. The repair and
indemnity
obligations of Tenant hereunder, including Tenant's obligations to
repay
Landlord the cost of repairing or removing Alterations, shall
survive the
termination of this Lease. All Alterations performed by Tenant in
the Premises
shall remain therein (unless, at the time of Landlord's consent
therefore,
Landlord directs Tenant to remove the same on termination or
expiration of this
Lease) and, at termination or expiration, shall be surrendered as a
part
thereof, except for Tenant's usual trade fixtures, furniture and
equipment
installed prior to or during the Lease term at Tenant's cost, which
trade
fixtures, furniture and equipment Tenant shall remove in their
entirety prior to
the termination or expiration of this Lease. Tenant agrees to
repair any and all
damage to the Premises resulting from such removal (including
removal of
Tenant's Alterations directed by Landlord) or, if Tenant fails to
do so and
Landlord so elects, to pay Landlord for the cost of any such
repairs forthwith
after billing therefor.
5. ASSIGNMENT AND SUBLETTING
5.1. GENERALLY.
5.1.1. Notwithstanding any other provisions of this Lease,
Tenant
covenants and agrees that it will not assign this Lease or sublet
(which term,
without limitation, shall include the granting of any concessions,
licenses,
occupancy rights, management arrangements and the like) the whole
or any part of
the Premises without, in each instance, having first received the
express,
written consent of Landlord, which consent shall not be
unreasonably withheld,
conditioned or delayed. A change in Tenant's name shall not
constitute an
assignment or sublease hereunder, provided Tenant notifies Landlord
in writing
of
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such name change prior to making such change. Tenant shall not
collaterally
assign this Lease (or any portion thereof) or permit any assignment
of this
Lease by mortgage, other encumbrance or operation of law.
5.1.2. Without limitation, it shall not be unreasonable for
Landlord to
withhold such approval from any assignment or subletting where, in
Landlord's
opinion: (i) the proposed assignee or sublessee does not have a
financial
standing and credit rating equal to Tenant at the time of this
Lease (or at the
time of the proposed assignment or subletting, if greater); (ii)
the proposed
assignee or sublessee, in Landlord's reasonable discretion, does
not have a good
reputation in the community; (iii) the business in which the
proposed assignee
or sublessee is engaged could, in Landlord's reasonable discretion,
detract from
the Building, its value or the costs of ownership thereof; (iv)
Intentionally
Deleted; (v) the proposed sublessee or assignee is a current tenant
or a
prospective tenant (meaning such tenant has been shown space in the
last six (6)
months or has been presented with or has made an offer to lease
space) of the
Building or of the Office Park; (vi) the use of the Premises by any
sublessee or
assignee (even though a Permitted Use) violates any use restriction
granted by
Landlord in any other lease or would otherwise cause Landlord to be
in violation
of its obligations under another lease or agreement to which
Landlord is a
party; (vii) if such assignment or subleasing is not approved of by
the holder
of any mortgage on the Property (if such approval is required);
(viii) a
proposed assignee's or subtenant's business will impose a burden on
the
Property's parking facilities, elevators, common areas, facilities,
or utilities
that is greater than the burden permitted under this Lease, in
Landlord's
reasonable judgment; (ix) any guarantor of this Lease refuses to
consent to the
proposed transfer or to execute a written agreement reaffirming the
guaranty;
(x) Tenant is in default (beyond applicable notice or cure periods)
of any of
its obligations under the Lease at the time of the request or at
the time of the
proposed assignment or sublease; (xi) if requested by Landlord, the
assignee or
subtenant refuses to sign a commercially reasonable non-disturbance
and
attornment agreement in favor of Landlord's lender; (xii) Landlord
has sued or
been sued by the proposed assignee or subtenant or has otherwise
been involved
in a legal dispute with the proposed assignee or subtenant; (xiii)
the assignee
or subtenant is involved in a business which is not in keeping with
the then
current standards of the Property; (xiv) the assignment or sublease
will result
in there being more than two (2) subtenants of the Premises (e.g.,
the assignee
or subtenant intends to use the Premises as an executive suite); or
(xv) the
assignee or subtenant is a governmental or quasi-governmental
entity or an
agency, department or instrumentality of a governmental or
quasi-governmental
agency. In no event, however, shall Tenant assign this Lease or
sublet the whole
or any part of the Premises to a proposed assignee or sublessee
which has been
judicially declared bankrupt or insolvent according to law, or with
respect to
which an assignment has been made of property for the benefit of
creditors, or
with respect to which a receiver, guardian, conservator, trustee in
involuntary
bankruptcy or similar officer has been appointed to take charge of
all or any
substantial part of the proposed assignee's or sublessee's property
by a court
of competent jurisdiction, or with respect to which a petition has
been filed
for reorganization under any provisions of the Bankruptcy Code now
or hereafter
enacted, or if a proposed assignee or sublessee has filed a
petition for such
reorganization, or for arrangements under any provisions of the
Bankruptcy Code
now or hereafter enacted and providing a plan for a debtor to
settle, satisfy or
extend the time for the payment of debts.
5.1.3. Any request by Tenant for such consent shall set forth or
be
accompanied by, in detail reasonably satisfactory to Landlord,
the
identification of the proposed assignee or sublessee, its financial
condition
and the terms on which the proposed assignment or subletting is to
be made,
including, without limitation, a final copy of all assignment and
sublease
documents (with copies of such fully executed copies to follow
promptly and
Landlord's consent, if granted, shall be expressly conditioned upon
receipt
thereof), and clearly stating the rent or any other consideration
to be paid in
respect thereto; and such request shall be treated as Tenant's
warranty in
respect of the information submitted therewith. Tenant's request
shall not be
deemed complete or submitted until all of the foregoing information
has been
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<PAGE>
received by Landlord. Landlord shall respond to such request for
consent within
15 business days following Landlord's receipt of all information,
documentation
and security required by Landlord with respect to such proposed
sublease or
assignment.
5.1.4. The foregoing restrictions shall be binding on any assignee
or
sublessee to which Landlord has consented, provided,
notwithstanding anything
else contained in this Lease, Landlord's consent to any further
assignment,
subleasing or any sub-subleasing by any approved assignee or
sublessee may be
withheld by Landlord at Landlord's sole and absolute
discretion.
5.1.5. Consent by Landlord to any assignment or subleasing shall
not
include consent to the assignment or transferring of any lease
renewal,
extension or other option, first offer, first refusal or other
rights granted
hereunder, or any special privileges or extra services granted to
tenant by
separate agreement (written or oral), or by addendum or amendment
of the Lease.
5.1.6. In the case of any assignment of this Lease or subletting of
the
Premises, the Tenant named herein shall be and remain fully and
primarily liable
for the obligations of Tenant hereunder, notwithstanding such
assignment or
subletting, including, without limitation, the obligation to pay
the Fixed Rent
and other amounts provided under this Lease, and the Tenant shall
be deemed to
have waived all suretyship defenses.
5.1.7. In addition to the foregoing, it shall be a condition of
the
validity of any such assignment or subletting that the assignee or
sublessee
agrees directly with Landlord, in form satisfactory to Landlord, to
be bound by:
(i) with respect to an assignment, all the obligations of Tenant
hereunder,
including, without limitation, the obligation to pay Fixed Rent and
other
amounts provided for under this Lease, and (ii) with respect to a
sublease,
those obligations under the Lease applicable to the subleased
premises and/or
incorporated in the sublease; and (iii) with respect to both an
assignment and
sublease, the covenant regarding use and the covenant against
further assignment
and subletting.
5.2. REIMBURSEMENT, RECAPTURE AND EXCESS RENT.
5.2.1. Tenant shall, upon demand, reimburse Landlord for the
reasonable
fees and expenses (including legal and administrative fees and
costs) incurred
by Landlord in processing any request to assign this Lease or to
sublet all or
any portion of the Premises, whether or not Landlord agrees
thereto, and if
Tenant shall fail promptly so to reimburse Landlord, the same shall
be a default
in Tenant's monetary obligations under this Lease subject to the
applicable
grace and cure period set forth in Section 12.1(b).
5.2.2. If Tenant requests Landlord's consent to assign this Lease
or sublet
all or a portion of the Premises, Landlord shall have the option,
exercisable by
written notice to Tenant given within 15 days after Landlord's
receipt of
Tenant's completed request, to terminate this Lease as of the date
of the
proposed sublease or assignment. In the event of termination in
respect of a
portion of the Premises, the portion so eliminated shall be
delivered to
Landlord on the date specified in good order and condition in the
manner
provided in Section 4.2 at the end of the Term and thereafter, to
the extent
necessary in Landlord's judgment, Landlord, at its own cost and
expense, may
have access to and may make modification to the Premises (or
portion thereof) so
as to make such portion a self-contained rental unit with access to
common
areas, elevators and the like. Fixed Rent and the Rentable Floor
Area of the
Premises shall be adjusted according to the extent of the Premises
for which the
Lease is terminated.
5.2.3. Without limitation of the rights of Landlord hereunder in
respect
thereto, if there is any assignment of this Lease by Tenant for
consideration or
a subletting of the whole of the Premises by Tenant at a rent which
exceeds the
rent payable hereunder by Tenant, or if there is a subletting of
a
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<PAGE>
portion of the Premises by Tenant at a rent in excess of the
subleased portion's
pro rata share of the rent payable hereunder by Tenant, then Tenant
shall pay to
Landlord, as additional rent, forthwith upon Tenant's receipt of,
in the case of
an assignment, fifty percent (50%) of all the consideration (or the
cash
equivalent thereof) therefor and in the case of a subletting, fifty
percent
(50%) of all any such excess rent. For the purposes of this
subsection, the term
"rent" or "consideration" shall mean all Fixed Rent, additional
rent or other
payments and/or consideration payable by one party to another for
the use and
occupancy of all or a portion of the Premises including, without
limitation, key
money, or bonus money paid by the assignee or subtenant to Tenant
in connection
with such transaction and any payment in excess of fair market
value for
services rendered by Tenant to the assignee or subtenant or for
assets,
fixtures, inventory, equipment or furniture transferred by Tenant
to the
assignee or subtenant in connection with any such transaction, but
shall exclude
any separate payments by Tenant for reasonable attorney's fees, the
reasonable
cost of any reasonable Alterations made by Tenant to the Premises
(amortized
over the Lease Term), and broker's commissions in connection with
such
assignment or subletting.
5.2.4. If the Premises or any part thereof are sublet by Tenant,
following
the occurrence of a default which has continued beyond the
applicable cure
period, Landlord, in addition to any other remedies provided
hereunder or at
law, may at its option collect directly from such sublessee(s) all
rents
becoming due to the Tenant under such sublease(s) and apply such
rent against
any amounts due Landlord by Tenant under this Lease, and Tenant
hereby
irrevocably authorizes and directs such sublessee(s) to so make all
such rent
payments, if so directed by Landlord; and it is understood that no
such election
or collection or payment shall be construed to constitute a
novation of this
Lease or a release of Tenant hereunder, or to create any lease or
occupancy
agreement between the Landlord and such subtenant or impose any
obligations on
Landlord, or otherwise constitute the recognition of such sublease
by Landlord
for any purpose whatsoever.
5.2.5. The following terms and conditions shall apply to any
subletting by
Tenant of all or any part of the Premises and shall be deemed
included in all
subleases under this Lease whether or not expressly incorporated
therein:
Tenant hereby absolutely and unconditionally assigns and transfers
to
Landlord all of Tenant's interest in all rentals and income arising
from any
sublease entered into by Tenant, and Landlord may collect such rent
and income
and apply same toward Tenant's obligations under this Lease;
provided, however,
that until a default beyond applicable notice and cure periods
occurs in the
performance of Tenant's obligations under this Lease, Tenant may
receive,
collect and enjoy the rents accruing under such sublease. Landlord
shall not, by
reason of this or any other assignment of such rents to Landlord
nor by reason
of the collection of the rents from a subtenant, be deemed to have
assumed or
recognized any sublease or to be liable to the subtenant for any
failure of
Tenant to perform and comply with any of Tenant's obligations to
such subtenant
under such sublease, including, but not limited to, Tenant's
obligation to
return any security deposit. Tenant hereby irrevocably authorizes
and directs
any such subtenant, upon receipt of a written notice from Landlord
stating that
a default beyond applicable notice and cure periods exists in the
performance of
Tenant's obligations under this Lease, to pay to Landlord the rents
due as they
become due under the sublease. Tenant agrees that such subtenant
shall have the
right to rely upon any such statement and request from Landlord,
and that such
subtenant shall pay such rents to Landlord without any obligation
or right to
inquire as to whether such default exists and notwithstanding any
notice from or
claim from Tenant to the contrary. In the event Landlord terminates
this Lease
by reason of a default of Tenant, Landlord at its option and
without any
obligation to do so, may require any subtenant to attorn to
Landlord, in which
event Landlord shall undertake the obligations of Tenant under such
sublease
from the time of the exercise of said option to the termination of
such
sublease; provided, however, Landlord shall not be liable for any
prepaid rents
or security deposit paid by
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<PAGE>
such subtenant to Tenant, unless Landlord actually receives such
security
deposit, or for any other prior defaults of Tenant under such
sublease.
5.3. CERTAIN TRANSFERS.
5.3.1. If at any time Tenant's interest in this Lease is held by
a
corporation, trust, partnership, limited liability company or other
entity, the
transfer of a controlling interest in the voting stock, beneficial
interests,
partnership interests, membership interests or other ownership
interests therein
(whether at one time or in the aggregate) shall be deemed an
assignment of this
Lease, and shall require Landlord's prior written consent. The
foregoing
provisions shall not be applicable so long as the Tenant is a
corporation, the
outstanding voting stock of which is listed on a recognized
security exchange,
or if at least 80% of its voting stock is owned by another
corporation, the
voting stock of which is so listed. For the purposes hereof, a
"controlling
interest" shall mean any transfer that results in the change
(whether at one
time or in the aggregate) in the effective control over the
management of such
entity.
5.3.2. To enable Landlord to determine the ownership of Tenant,
Tenant
agrees to furnish to Landlord, from time to time promptly after
Landlord's
reasonable request therefor, (i) if the second to last sentence of
subsection
5.3.1 if applicable, proof of listing on a recognized security
exchange, or (ii)
if the last sentence of subsection 5.3.1 is not applicable, an
accurate and
complete listing of the holders of its stock, beneficial interests,
partnership
interests, membership interests or other ownership interests
therein as of such
request and as of the date of this Lease. Landlord shall use
reasonable efforts
to keep confidential any information received by Landlord pursuant
to this
Section 5.3, provided, however, that Landlord shall have the right
to disclose
any such information to existing or prospective mortgagees, or
prospective
purchasers of the Building.
5.3.3. Notwithstanding any other provision of this Section, (a)
transactions with an entity (i) into or with which Tenant is merged
or
consolidated, (ii) to which all or substantially all of Tenant's
assets are
transferred as a going concern, (iii) which controls or is
controlled by Tenant
or is under common control with Tenant, or (b) any transfer of
stock, equity or
other indicia of ownership of or interest in Tenant resulting from
(i) an
initial or subsequent offering, sale transfer or conveyance of such
stock,
equity or ownership interest on any recognized securities market,
or (ii) the
transfer, exchange, acquisition or conveyance of any stock, equity
or other
ownership interest by, to, from any entity providing financing or
capitalization
to Tenant, shall not be deemed to be an assignment or subletting
within the
meaning of this Section, provided that in any of such events (1)
Landlord
receives prior written notice of any such transactions, (2) except
in any
instance where Tenant is the surviving entity following any such
transaction
described in (a) above, the assignee or subtenant agrees directly
with Landlord,
by written instrument in form reasonably satisfactory to Landlord,
to be bound
by all the obligations of Tenant hereunder including, without
limitation, the
covenant against further assignment and subletting, (3) in no event
shall Tenant
be released from its obligations under this Lease, (4) any such
transfer or
transaction is for a legitimate, regular business purpose of Tenant
other than a
transfer of Tenant's interest in this Lease, and (5) the
involvement by Tenant
or its assets in any transaction, or series of transactions (by way
of merger,
sale, acquisition, financing, refinancing, transfer, leveraged
buy-out or
otherwise) whether or not a formal assignment or hypothecation of
this Lease or
Tenant's assets occurs, will not result in a reduction of the "Net
Worth" of
Tenant as hereinafter defined as it exists immediately prior to
said transaction
or transactions constituting such reduction. "Net Worth" of Tenant
for purposes
of this section shall be the net worth of Tenant (excluding any
guarantors)
established under generally accepted accounting principles
consistently applied.
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6. CONDITION OF PREMISES AND RESPONSIBILITY FOR REPAIRS
6.1. CONDITION OF PREMISES.
6.1.1. Subject to Landlord substantially completing Landlord's Work
(as
defined below) as set forth herein, Tenant accepts the Premises and
the Building
in their present "as is" condition, without representation or
warranty, express
or implied, in fact or in law, by Landlord and without recourse to
Landlord as
to the nature, condition or usability thereof; and Tenant agrees
that except as
expressly set forth in this Section 6.1., Landlord has no work to
perform in or
on the Premises to prepare the Premises for Tenant's use and
occupancy, and that
any and all work to be done in or on the Premises will be performed
by Tenant at
Tenant's sole cost and expense in accordance with the terms of this
Lease. It
being understood that Landlord shall deliver the Premises with all
electrical,
mechanical, plumbing, HVAC and other systems serving the Premises
in good
working order, subject to punchlist items and minor repairs
relating thereto
that do not materially interfere with Tenant's use of the Premises
and subject
to the terms and conditions of this Lease. Prior to the
Commencement Date,
Landlord shall substantially complete the work shown on Exhibit D
attached
hereto ("Landlord's Work"). Provided that Tenant does not interfere
with or
delay the completion by Landlord or its agents or contractors of
Landlord's
Work, Tenant shall have the right to enter the Premises up to
fourteen (14) days
prior to the anticipated Commencement Date for the purpose of
installing
furniture, trade fixtures, equipment, and similar items. Tenant
shall be liable
for any damages or delays caused by Tenant's activities at the
Premises.
Provided that Tenant has not begun operating its business from the
Premises, and
subject to all of the terms and conditions of the Lease, the
foregoing activity
shall not constitute the delivery of possession of the Premises to
Tenant and
the Lease term shall not commence as a result of said activities.
Prior to
entering the Premises Tenant shall obtain all insurance it is
required to obtain
by the Lease and shall provide certificates of said insurance to
Landlord.
Tenant shall coordinate such entry with Landlord's building
manager, and such
entry shall be made in compliance with all terms and conditions of
this Lease
and the Rules and Regulations attached hereto.
6.2. INTENTIONALLY OMITTED.
6.3. REPAIRS TO BE MADE BY LANDLORD.
6.3.1. Except as otherwise provided in this Lease, Landlord agrees
to keep
in good order, condition and repair, the roof, exterior walls,
structural
components and common building systems of the Building insofar as
they affect or
serve the Premises and the appurtenant common areas of the
Building, and to
maintain, repair and replace, in a good working order and
condition, the HVAC
(except the supplemental HVAC system and equipment serving Tenant's
computer
room as set forth below), plumbing electrical and other mechanical
systems and
equipment serving the Premises, unless installed by or for Tenant
or exclusively
serving and located within the Premises. Without limitation,
Landlord shall in
no event be responsible to Tenant for the condition of glass in and
about the
Premises or for the doors leading directly to the Premises, or for
any
Alterations installed by or at Tenant's request, or for any
condition in the
Premises or, subject to Section 13.22, caused by any act or neglect
of Tenant or
any contractor, agent, employee or invitee of Tenant, or anyone
claiming by,
through or under Tenant. Landlord also agrees to maintain the
parking areas,
roadways and landscaping on the Property surrounding the Building
in good order
and repair, including but not limited to providing adequate
lighting and snow
removal therefrom. Landlord shall not be responsible to make any
improvements or
repairs to the Building or the Premises other than as expressed in
this Section
unless expressly otherwise provided in this Lease. All costs
incurred by
Landlord in connection with the foregoing obligations shall be
included as part
of Operating Expenses, subject to the terms of Section 8.2.
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6.3.2. Landlord shall never be liable for any failure to make
repairs
which, under the provisions of this Section or elsewhere in this
Lease, Landlord
has undertaken to make unless: (a) Tenant, to the extent it has
knowledge of any
such defective condition, has given notice to Landlord of the need
to make such
repairs as a result of a condition in the Building or in the
Premises requiring
any repair for which Landlord is responsible; and (b) Landlord has
failed to
commence to make such repairs within a reasonable time after
receipt of such
notice if any repairs are, in fact, necessary.
6.4. MAINTENANCE AND REPAIRS TO BE MADE BY TENANT.
6.4.1. Tenant covenants and agrees that Tenant will keep neat and
clean and
maintain in good order, condition and repair, the Premises and
every part
thereof (and any signs permitted hereunder), and specifically
including, without
limitation, the supplemental HVAC system and equipment serving
Tenant's computer
room, throughout the Lease Term, excepting only those repairs for
which Landlord
is responsible under the terms of this Lease, damage by fire or
other casualty
or as a consequence of the exercise of the power of eminent domain
and
reasonable wear and tear and Tenant shall surrender the Premises at
the end of
the Term in such condition. Without limitation, Tenant shall
maintain and use
the Premises in accordance with all Laws and Restrictions and
shall, at Tenant's
own expense obtain and maintain in effect all permits, licenses and
the like
required by applicable law, all to the extent necessitated by
Tenant's (or any
of its employee's, invitee's or customer's) particular use of the
Premises, as
opposed to "office use" generally which will be the responsibility
of Landlord
and the cost for which shall be included in Operating Expenses,
subject to the
terms of Section 8.2. 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 any areas in the Building or Office Park,
including the
Premises, by Tenant, Tenant's contractors or Tenant's agents,
employees,
invitees, or anyone claiming by, through or under Tenant. Landlord
may replace
as needed any bulbs and ballasts in the Premises during the Lease
Term at
Tenant's cost and expense, or Landlord may require Tenant to
replace the same,
at Tenant's cost and expense. Tenant shall pay Landlord, as
additional rent, the
cost of Landlord (or its agents) either performing, or entering
into a contract
for, regularly scheduled (monthly or quarterly as reasonably
determined by
Landlord) preventive maintenance/service for the supplemental HVAC
system and
equipment serving Tenant's computer room; provided that during the
first Lease
Year, Tenant shall not be required to pay for any repairs or
replacements
relating to the supplemental HVAC system, except for such
preventative
maintenance/service and/or incidental repairs and replacements
relating thereto
(e.g., filters, hoses and other de minimis items).
6.4.2. If repairs are required to be made by Tenant pursuant to the
terms
hereof, Landlord may demand that Tenant make the same forthwith,
and if Tenant
fails, refuses or neglects to commence such repairs and complete
the same with
reasonable dispatch after such demand, Landlord may (but shall not
be obligated
to) make or cause such repairs to be made and shall not be
responsible to Tenant
for any loss or damage that may accrue to Tenant's stock or
business by reason
thereof. If Landlord makes or causes such repairs to be made,
Tenant agrees that
Tenant will forthwith, on demand, pay to Landlord the reasonable
cost thereof,
and if Tenant shall fail to so reimburse Landlord upon demand,
Landlord shall
have the remedies provided for the nonpayment of rent or other
charges payable
hereunder.
6.5. FLOOR LOAD - HEAVY MACHINERY; OCCUPANT DENSITY.
6.5.1. Tenant shall not place a load upon any floor in the
Premises
exceeding the floor load per square foot of area which such floor
was designed
to carry and which is allowed by law. Landlord reserves the right
to prescribe
the weight and position of all business machines and mechanical
equipment,
including safes, which shall be placed so as to distribute the
weight. Business
machines and mechanical equipment shall be placed and maintained by
Tenant at
Tenant's expense in settings
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sufficient, in Landlord's judgment, to absorb and prevent
vibration, noise and
annoyance. Tenant shall not move any safe, heavy machinery, heavy
equipment,
freight, bulky matter or fixtures into or out of the Building
without Landlord's
prior consent, which shall not be unreasonably withheld,
conditioned or delayed.
6.5.2. If such safe, machinery, equipment, freight, bulky matter
or
fixtures requires special handling, Tenant agrees to employ only
persons holding
a Master Rigger's License to do said work, and that all work in
connection
therewith shall comply with applicable laws and regulations. Any
such moving
shall be at the sole risk and hazard of Tenant and Tenant will
exonerate,
indemnify and save Landlord harmless against and from any
liability, loss,
injury, claim or suit resulting directly or indirectly from such
moving. Tenant
shall schedule such moving at such times as Landlord shall require
for the
convenience of the normal operations of the Building.
6.5.3. Tenant shall maintain a ratio of not more than one Occupant
(as
defined below) for each two hundred (200) square feet of rentable
area in the
Premises. Landlord shall have the right to periodically visit the
Premises
without advance notice to Tenant in order to track the number of
Occupants
arriving at the Premises, provided, however, Landlord shall use
commercially
reasonable effort so as not to materially interfere with Tenant's
business
operations during any such visit. For purposes of this section,
"Occupants"
include employees, visitors, and contractors, but shall use
commercially
reasonable effort so as to not materially include people not
employed by Tenant
that deliver or pick up mail or other packages at the Premises,
employees of
Landlord or employees of Landlord's agents or contractors. Tenant
acknowledges
that increased numbers of Occupants causes additional wear and tear
on the
Premises and the Common Areas, additional use of electricity, water
and other
utilities, and additional demand for other Building services.
7. SERVICES; UTILITY CHARGES
7.1. LANDLORD'S SERVICES.
7.1.1. Landlord covenants during the Term:
(a) To furnish, through Landlord's employees or independent
contractors,
electricity (for lights, convenience receptacles, and normal
office
machines and equipment in the Premises, subject to Section 7.2
below,
and for the common areas and facilities), heat, air conditioning
and
ventilation and nightly janitorial and general cleaning services to
a
level customarily provided by operators of buildings such as
the
Building; it is understood, however, that heat, air conditioning
and
ventilation and certain other services shall only be furnished
during
Normal Building Operating Hours; and
(b) To furnish, through Landlord's employees or independent
contractors,
additional Building operation services upon reasonable advance
request
of Tenant at rates from time to time established by Landlord to
be
paid by Tenant provided the same may be reasonably and
conveniently
provided by Landlord. Tenant hereby agrees to pay to Landlord the
cost
of such additional services as additional rent upon demand by
Landlord.
7.1.2. Landlord has made arrangements for the operation of a
cafeteria food
service facility (the "Cafeteria") in the Building. The Cafeteria
will be
available for use by Tenant and its employees, together with
others, during its
hours of operation and in accordance with any rules and regulations
that may be
established concerning such use. Charges for food and other
services provided at
the Cafeteria shall be as determined by Landlord (or the operator
of the
Cafeteria) from time to time in its sole
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discretion. It is understood and agreed that all use of the
Cafeteria and its
facilities shall be at the sole risk of Tenant and the employees
using same, and
Tenant hereby releases Landlord, and the owner or operator of the
Cafeteria,
from any liability in connection with such use and indemnifies and
holds the
Landlord, and the owner or operator of the Cafeteria, harmless from
and against
any loss, cost, liability, damage or expense occasioned by or in
any way
related to or arising from the use of the Cafeteria by Tenant or
Tenant's
employees or by any other party allowed to use same by Tenant or
any of its
employees. Landlord reserves the right at any time or from time to
time, in its
sole discretion, to discontinue the Cafeteria, or alter its size,
type, location
or serving capacity, or its meals or hours of operation or any
other aspect
thereof. Any losses incurred by Landlord in operating the Cafeteria
shall be
included as part of the Operating Expenses for the Operating Year
in which such
losses were incurred.
7.1.3. All costs incurred by Landlord in connection with foregoing
services
shall be included as part of the Operating Expenses.
7.2. UTILITY SERVICES AND CHARGES.
7.2.1. The Tenant shall obtain directly from the supplier or
utility
company any services (such as telephone service, or should it be
separately
metered and provided as provided in Section 7.3 below, electrical
service) not
provided to the Premises by Landlord, and Tenant shall pay all
charges therefor
when due. If requested by Landlord, Tenant shall promptly provide
Landlord with
evidence of such payment. If such utility company shall have a lien
on the
Premises for nonpayment of such charges and Tenant shall fail at
any time to
make payment of same, without limitation of Landlord's rights on
account of such
failure, Tenant shall thereafter, if requested by Landlord, pay to
Landlord,
when monthly Fixed Rent is next due and thereafter on Landlord's
demand, an
amount reasonably estimated by Landlord to be sufficient to
discharge any such
lien in the event of a further failure of Tenant to pay any such
charges when
due. Landlord shall hold the amounts from time to time deposited
under this
Section 7.2 as security for payment of such charges and may,
without limitation
of remedies on account of Tenant's failure to make any subsequent
payment of
such charges, use such amounts for such payments. Such amount or
such portion
thereof as shall be unexpended at the expiration of this Lease
shall, upon full
performance of all Tenant's obligations hereunder, be repaid to
Tenant without
interest.
7.2.2. Tenant shall not introduce to the Premises fixtures or
equipment
which (individually or in the aggregate) exceed those used by the
average office
tenant or overload the capacity of the electrical, heating,
ventilating and air
conditioning, mechanical, plumbing or other utility systems serving
the
Premises; such capacities shall be deemed overloaded if such use by
Tenant
exceeds, on a square foot basis, the capacity of such systems; and
in no event
shall the electrical usage at the Premises exceed 4 watts per
square foot. If
Tenant uses the Premises or installs fixtures or equipment in such
a manner as
would so overload said systems, as reasonably determined by
Landlord, Tenant
shall pay, as additional rent, within 10 days of billing therefor,
the cost of
providing and installing any additional equipment, facilities or
services that
may be required as a result thereof, and for any repairs or damage
resulting
therefrom. Landlord acknowledges that the current use by Tenant of
the Premises
is permitted under this Section.
7.2.3. All costs incurred by Landlord in connection with utility
services
provided to the Premises shall be included as part of the Operating
Expenses,
subject to the terms of Section 8.2.
7.2.4. Landlord shall not be responsible for any interruption
of
electricity, oil, water, sewer, telephone, data or other utility or
Building
services supplied to the Premises. Furthermore, Landlord shall not
be liable for
loss of property or for injury to, or interference with, Tenant's
business,
including, without limitation, loss of profits, however occurring,
through or in
connection with or incidental to an
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interruption of any such services or utilities. Landlord may comply
with
voluntary controls or guidelines promulgated by any governmental
entity relating
to the use or conservation of energy, water, gas, light or
electricity or the
reduction of automobile or other emissions without creating any
liability of
Landlord to Tenant under this Lease.
7.3. ELECTRICAL SERVICE AND ELECTRICAL CHARGE.
7.3.1. It is understood that the electrical service for the
Premises (for
lights and convenience outlets) is currently separately metered
from service
provided to other rentable spaces and common areas of the Building.
Accordingly,
(i) Tenant shall make arrangements for such electrical service
directly with the
utility supplier, and (ii) Landlord shall have no obligations to
Tenant with
respect to electrical service to the Premises.
7.3.2. Nothing in Section 7.3.1 shall relieve Tenant from its
obligation to
pay as part of Operating Expenses, Tenant's share of electrical
charges relating
to the common areas as set forth in this Lease.
7.3.3. Intentionally Deleted.
8. ADDITIONAL RENT FOR TAXES AND OPERATING EXPENSES
8.1. TENANT'S PAYMENT OF ITS SHARE OF REAL ESTATE TAXES.
8.1.1. For the purposes of this Section, the following terms shall
have the
following meaning:
"Tax Year" shall mean the twelve-month period in use in the
Town
of Burlington for the purpose of imposing ad valorem taxes upon
real property.
In the event that such Town changes the period of its tax year,
"Tax Year" shall
mean a twelve-month period commencing on the first day of such new
tax year, and
each twelve-month period commencing on the anniversary of such date
during the
Term of this Lease.
"Taxes" shall mean all taxes and assessments of every kind and
nature imposed, assessed or levied by a governmental authority on
the Property,
including without limitation all real estate taxes, betterments,
assessments
(ordinary and extraordinary), water rents, sewer, and other
charges. If taxes
upon rentals or otherwise pertaining to the Property (including
without
limitation any tax on rentals or income or any value added tax, so
called) shall
be substituted, in whole or in part, for the present ad valorem
real estate
taxes, or shall be assessed in addition thereto, then the term
"Taxes" shall
include such substituted taxes, to the extent to which the same
shall be a
substitute for present ad valorem real estate taxes, together with
any such
additional taxes. The term "Taxes" shall not include any
inheritance or estate
taxes, or any taxes on income to the extent applicable to
Landlord's net income.
Landlord acknowledges that the Building and improvements relating
thereto are
the only taxable improvements located on the Lot.
8.1.2. In the event that the Taxes imposed with respect to the
Property
shall be greater during any Tax Year (and in the event the Town
shall first send
estimated tax bills, until a final bill is sent [at which time
Tenant's share of
real estate taxes shall be recomputed], real estate taxes shall be
such taxes as
shown on the estimated tax bill) than the Tax Base (as defined in
Section 1.2),
Tenant shall pay to Landlord, as additional rent, the amount
obtained by
multiplying the amount by which the Taxes exceed the Tax Base by a
fraction, the
numerator of which is the Rentable Floor Area of the Premises and
the
denominator of which is the Rentable Floor Area of the
Building.
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8.1.3. Landlord shall submit to Tenant a statement setting forth
the amount
of such additional rent, and withi
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