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<PAGE>
Exhibit 10.9
LEASE AGREEMENT BETWEEN
W9/TIB III REALTY, L.L.C.,
AS LANDLORD, AND
AIRVANA, INC.,
AS TENANT
DATED OCTOBER 4, 2004
19 ALPHA ROAD, CHELMSFORD, MASSACHUSETTS
<PAGE>
BASIC LEASE INFORMATION
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<S> <C>
Lease Date: October 4, 2004
Landlord: W9/TIB III REALTY, L.L.C., a Delaware limited
liability company
Tenant: AIRVANA, INC., a Delaware corporation
Premises: The Land (as hereinafter defined) located at 19
Alpha Road, Chelmsford, Massachusetts together
with all improvements located thereon including
the building thereon containing approximately
63,220 rentable square feet (the "BUILDING", and
collectively, the "PREMISES"), as shown on the
site plan attached hereto as Exhibit A. The land
on which the Building is located (the "LAND") is
described on Exhibit B and includes certain
parking areas, roadways and driveways. The term
"PROJECT" shall collectively refer to the
Building, the Land and the driveways, parking
facilities, loading dock areas, roadways, any rail
tracks associated with the Building and similar
improvements and easements associated with the
foregoing or the operation thereof.
Term: Approximately eighty-four (84) months, commencing
on the Commencement Date and ending at 11:59 p.m.
local time on the last day of the 84th full
calendar month following the Commencement Date,
subject to adjustment and earlier termination as
provided in the Lease.
Commencement Date: The earlier of (a) the date on which
Tenant
occupies any portion of the Premises and begins
conducting business therein, provided that the
term "conducting business" shall not include the
completion of the Work, or (b) subject to the
provisions of Section 28(g) below, two hundred
(200) days after the Lease Date. Subject to the
provisions of Section 28(g) below, Tenant shall
have access to the Premises upon full execution of
the Lease for performance of the Work and
installation of communications equipment and
furniture and other fit-up components, business
fixtures and equipment. During the period between
the date on which Tenant takes possession of the
Premises for such purposes and the Commencement
Date, Tenant shall be subject to all the
provisions of this Lease except payment of Basic
Rent and Additional Rent (defined below).
Basic Rent Basic Rent shall be the following amounts for the
following periods of time:
LEASE ANNUAL BASIC MONTHLY
MONTH RENT RATE BASIC RATE
------- ------------ ----------
1 - 36 $568,980.00 $47,415.00
37 - 60 $600,590.00 $50,049.17
61 - 84 $616,395.00 $51,366.25
As used herein, the term "LEASE MONTH" means each
calendar month during the Term (and if the
Commencement Date does not occur on the first day
of a calendar month, the period from the
Commencement Date to the first day of the next
calendar month shall be included in the first
Lease Month for purposes of determining the
duration of the Term and the monthly Basic Rent
rate applicable for such partial month).
Additional Rent: Tenant's Proportionate Share of Operating
Costs,
Taxes and Insurance Costs.
Letter of Credit: $142,245.00
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i
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Rent: Basic Rent, Additional Rent, and all other sums
that Tenant may owe to Landlord or otherwise be
required to pay under the Lease.
Permitted Use: Office, research and development laboratory
and
light assembly.
Tenant's Proportionate 100%, which is the percentage obtained by
dividing
Share: (a) the number of rentable square feet in the
Premises as stated above by (b) the 63,220
rentable square feet in the Building. Landlord and
Tenant stipulate that the number of rentable
square feet in the Premises and in the Building
set forth above is conclusive and shall be binding
upon them.
Initial Liability Insurance $3,000,000
Amount
Tenant's Address Prior to Commencement Date: Following
Commencement Date:
Airvana, Inc. Airvana, Inc.
25 Industrial Avenue 19 Alpha Road
Chelmsford, MA 01824 Chelmsford, MA 01824
Attention: Chief Financial Officer Attention: Chief Financial
Officer
Telephone: 978-250-3000 Telephone: ___-___-____
Telecopy: 978-250-3910 Telecopy: ___-___-____
With a copy to:
Wilmer Cutler Pickering
Hale and Dorr LLP
60 State Street
Boston, MA 02109
Attention: Paul Jakubowski, Esq.
Telephone: 617-526-6193
Telecopy: 617-526-5000
Landlord's Address: With a copy to:
W9/TIB III Realty, L.L.C. W9/TIB III Realty, L.L.C.
c/o Grubb & Ellis Management c/o Archon Group, L.P.
Services, Inc. 600 East Las Colinas Blvd., Suite 400
267 Boston Road, Suite 6 Irving, Texas 75039
Billerica, MA 01862 Attention: General Counsel -
Attention: Property Manager 19 Alpha Road,
Telephone: 978-439-8000 Chelmsford, MA
Telecopy: 978-439-8080 Telephone: 972-368-2200
Telecopy: 972-368-3199
</TABLE>
ii
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The foregoing Basic Lease Information is incorporated into and
made a part of
the Lease identified above. If any conflict exists between any
Basic Lease
Information and the Lease, then the Lease shall control.
LANDLORD: W9/TIB III REALTY, L.L.C.,
a Delaware limited liability company
By: /s/ David Paul
------------------------------------
Name: David Paul
Title: VP
TENANT: AIRVANA, INC., a Delaware corporation
By: /s/ David P. Gamache
------------------------------------
Name: David P. Gamche
Title: CFO
iii
<PAGE>
TABLE OF CONTENTS
<TABLE>
<CAPTION>
PAGE NO.
--------
<S> <C>
1. Definitions and Basic
Provisions............................... 1
2. Lease
Grant.................................................... 1
3. Tender of
Possession........................................... 1
4.
Rent...........................................................
1
(a) Payment.................................................
1
(b) Operating Costs; Taxes..................................
1
(c) Tenant Inspection Right.................................
4
(d) Cash Inducement.........................................
5
5. Delinquent Payment; Handling
Charges........................... 5
6. Intentionally
omitted.......................................... 5
7. Landlord's Maintenance
Obligations............................. 5
(a) Building's Structure....................................
5
(b) Other Landlord Obligations..............................
5
(c) Landlord Representations................................
6
8. Improvements; Alterations; Tenant's Maintenance and
Repair
Obligations....................................................
6
(a) Improvements; Alterations...............................
6
(b) Repairs; Maintenance....................................
7
(c) Performance of Work.....................................
7
(d) Mechanic's Liens........................................
7
(e) Janitorial Services.....................................
8
9.
Utilities......................................................
8
10.
Use............................................................
8
11. Assignment and
Subletting...................................... 8
(a) Transfers...............................................
8
(b) Consent Standards.......................................
9
(c) Request for Consent.....................................
9
(d) Conditions to Consent...................................
9
(e) Attornment by Subtenants................................
9
(f) Cancellation............................................
10
(g) Additional Compensation.................................
10
(h) Permitted Transfers.....................................
10
12. Insurance; Waivers; Subrogation;
Indemnity..................... 11
(a) Tenant's Insurance......................................
11
(b) Landlord's Insurance....................................
11
(c) No Subrogation; Waiver of Property Claims...............
11
(d) Indemnity...............................................
12
(e) Cost of Landlord's Insurance............................
12
13. Subordination; Attornment; Notice to Landlord's
Mortgagee...... 12
(a) Subordination...........................................
12
(b) Attornment..............................................
13
(c) Notice to Landlord's Mortgagee..........................
13
(d) Landlord's Mortgagee's Protection Provisions............
13
(e) Subordination, Non-Disturbance and Attornment
Agreement............................................... 13
14. Rules and
Regulations.......................................... 14
15.
Condemnation...................................................
14
(a) Total Taking............................................
14
(b) Partial Taking - Tenant's Rights........................
14
(c) Partial Taking - Landlord's Rights......................
14
(d) Temporary Taking........................................
14
(e) Award...................................................
14
(f) Restoration.............................................
14
16. Fire or Other
Casualty......................................... 15
</TABLE>
iv
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(a) Repair Estimate.........................................
15
(b) Tenant's Rights.........................................
15
(c) Landlord's Rights.......................................
15
(d) Repair Obligation.......................................
15
(e) Abatement of Rent.......................................
15
17. Personal Property
Taxes........................................ 16
18. Events of
Default.............................................. 16
(a) Payment Default.........................................
16
(b) Intentionally Omitted...................................
16
(c) Estoppel................................................
16
(d) Insurance...............................................
16
(e) Mechanic's Liens........................................
16
(f) Other Defaults..........................................
16
(g) Insolvency..............................................
16
19.
Remedies.......................................................
16
(a) Termination of Lease....................................
17
(b) Termination of Possession...............................
17
(c) Perform Acts on Behalf of Tenant........................
17
20. Payment by Tenant; Non-Waiver; Cumulative
Remedies............. 17
(a) Payment by Tenant.......................................
17
(b) No Waiver...............................................
17
(c) Cumulative Remedies.....................................
18
21. Intentionally
Omitted.......................................... 18
22. Surrender of
Premises.......................................... 18
23. Holding
Over................................................... 18
24. Certain Rights Reserved by
Landlord............................ 19
(a) Building Operations.....................................
19
(b) Security................................................
19
(c) Prospective Purchasers and Lenders......................
19
(d) Prospective Tenants.....................................
19
25. Intentionally
omitted.......................................... 19
26.
Miscellaneous..................................................
19
(a) Landlord Transfer.......................................
19
(b) Landlord's Liability....................................
19
(c) Force Majeure...........................................
19
(d) Brokerage...............................................
20
(e) Estoppel Certificates...................................
20
(f) Notices.................................................
20
(g) Separability............................................
20
(h) Amendments; Binding Effect; No Electronic Records.......
20
(i) Quiet Enjoyment.........................................
20
(j) No Merger...............................................
21
(k) No Offer................................................
21
(l) Entire Agreement........................................
21
(m) Waiver of Jury Trial....................................
21
(n) Governing Law...........................................
21
(o) Notice of Lease.........................................
21
(p) Water or Mold Notification..............................
21
(q) Joint and Several Liability.............................
21
(r) Financial Reports.......................................
21
(s) Landlord's Fees.........................................
22
(t) Telecommunications......................................
22
(u) Confidentiality.........................................
22
(v) Authority...............................................
22
(w) Rooftop Equipment.......................................
22
(x) Signage.................................................
23
</TABLE>
v
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(y) List of Exhibits........................................
23
(z) Prohibited Persons and Transactions.....................
23
(aa) Landlord's Default......................................
24
(bb) Failure of Tenant to Continuously Occupy the Premises...
24
27. Letter of
Credit............................................... 24
(a) General Provisions......................................
24
(b) Drawings under Letter of Credit.........................
24
(c) Use of Proceeds by Landlord.............................
25
(d) Additional Covenants of Tenant..........................
25
(e) Transfer of Letter of Credit............................
26
(f) Nature of Letter of Credit..............................
26
28. Environmental
Requirements..................................... 26
(a) Prohibition against Hazardous Materials.................
26
(b) Environmental Requirements..............................
26
(c) Removal of Hazardous Materials..........................
26
(d) Tenant's Indemnity......................................
27
(e) Inspections and Tests...................................
27
(f) Tenant's Financial Assurance in the Event of a Breach...
27
(g) ACM Removal.............................................
27
29.
Parking........................................................
28
30. Other
Provisions............................................... 29
</TABLE>
vi
<PAGE>
LIST OF DEFINED TERMS
<TABLE>
<CAPTION>
Page No.
-----------
<S> <C>
2004 Estimated Operating
Costs.................................... 2
Abatement Period
................................................. 28
ACM Contractors
.................................................. 28
ACM Work
......................................................... 28
Adjoining 21 Alpha Parking Areas
................................. 28
Affiliate
........................................................ 1
Approval Criteria
................................................ D-2
Architect
........................................................ D-1
AS-IS
............................................................
D-1
Basic Lease Information
.......................................... 1
Building
......................................................... i
Building's Structure
............................................. 1
Building's Systems
............................................... 1
Cash Inducement
.................................................. 5
Casualty
......................................................... 15
Completed Application for Payment
................................ D-3
Construction Allowance
........................................... D-3
Construction Allowance Increase
.................................. D-3
Damage Notice
.................................................... 15
Default Rate
..................................................... 5
Engineered Parking Plan
.......................................... 28
Environmental Requirements
....................................... 26
Event of
Default.................................................. 16
Final LC Expiration Date
......................................... 24
GAAP
.............................................................
11
Hazardous Materials
.............................................. 26
Insurance Costs
.................................................. 12
Land
............................................................. i
Landlord
......................................................... 1,
E-1
Landlord's Mortgagee
............................................. 12
Law
..............................................................
1
Laws
............................................................. I,
E-1
LC Proceeds Account
.............................................. 25
Lease
............................................................ 1,
E-1, F-1
Lease
Month....................................................... i
Letter of Credit
................................................. 24
Letter of Credit Amount
.......................................... 24
Loss
.............................................................
12
Mortgage
......................................................... 12
OFAC
.............................................................
23
Operating Costs
.................................................. 2
Operating Costs and Tax Statement
................................ 4
Parking Allowance
................................................ 28
Parking Work
..................................................... 28
Permitted Transfer
............................................... 10
Permitted Transferee
............................................. 10
Prevailing Rental Rate
........................................... G-1
Primary Lease
.................................................... 12
Project
.......................................................... i
Punchlist Items
.................................................. E-1
Repair Period
.................................................... 15
Rooftop Equipment
................................................ 22
</TABLE>
vii
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<TABLE>
<S> <C>
Security Deposit Laws
............................................ 26
SNDA
.............................................................
13
Space
Plans.......................................................
D-1
Substantial
Completion............................................ D-3
Substantially Completed
.......................................... D-3
Taking
........................................................... 14
Tangible Net
Worth................................................ 11
Taxes
............................................................ 3
Telecommunications Services
...................................... 22
Tenant
........................................................... 1, 16,
E-1
Tenant Party
..................................................... 1
Tenant's Off-Premises Equipment
.................................. 1
Total Construction Costs
......................................... D-3
Transfer
......................................................... 9
Work
.............................................................
D-1
Working Drawings
................................................. D-1
Working Drawings Delivery Deadline
............................... D-1
</TABLE>
viii
<PAGE>
LEASE
THIS LEASE AGREEMENT (this "LEASE") is entered into as of
October 4, 2004,
between W9/TIB III REALTY, L.L.C., a Delaware limited liability
company
("LANDLORD"), and AIRVANA, INC., a Delaware corporation
("TENANT").
1. DEFINITIONS AND BASIC PROVISIONS. The definitions and basic
provisions
set forth in the Basic Lease Information (the "BASIC LEASE
INFORMATION")
executed by Landlord and Tenant contemporaneously herewith are
incorporated
herein by reference for all purposes. Additionally, the
following terms shall
have the following meanings when used in this Lease: "AFFILIATE"
means any
person or entity which, directly or indirectly, through one or
more
intermediaries, controls, is controlled by, or is under common
control with the
party in question; "BUILDING'S STRUCTURE" means the Building's
exterior walls,
roof, footings, foundations, structural portions of load-bearing
walls,
structural floors and subfloors, and structural columns and
beams; "BUILDING'S
SYSTEMS" means the Building's HVAC, life-safety, plumbing,
electrical, and
mechanical systems; "including" means including, without
limitation; "LAWS"
means all federal, state, and local laws, ordinances, rules and
regulations, all
court orders, governmental directives, and governmental orders,
and all
interpretations of the foregoing, and all restrictive covenants
affecting the
Project, and "LAW" means any of the foregoing; "TENANT'S
OFF-PREMISES EQUIPMENT"
means any of Tenant's equipment or other property that may be
located on or
about the Project (other than on the Premises); and "TENANT
PARTY" means any of
the following persons: Tenant; any assignees claiming by,
through, or under
Tenant; any subtenants claiming by, through, or under Tenant;
and any of their
respective agents, contractors, employees, licensees, guests and
invitees.
2. LEASE GRANT. Subject to the terms of this Lease, Landlord
leases to
Tenant, and Tenant leases from Landlord, the Premises.
3. TENDER OF POSSESSION. Possession of the Premises will be
tendered to
Tenant in the condition required by this Lease on the Lease
Date. Within ten
(10) days after request by Landlord, Tenant shall execute and
deliver to
Landlord a letter substantially in the form of Exhibit E hereto
confirming (1)
the Commencement Date and the expiration date of the initial
Term, and (2) that
Tenant has accepted the Premises. However, the failure of the
parties to execute
such letter shall not defer the Commencement Date or otherwise
invalidate this
Lease. Occupancy of the Premises by Tenant prior to the
Commencement Date shall
be subject to all of the provisions of this Lease excepting only
those requiring
the payment of Basic Rent and Additional Rent.
4. RENT.
(a) PAYMENT. Tenant shall timely pay to Landlord Rent, without
notice
(except as set forth in Section 4(b)(1) below), demand,
deduction or set off
(except as otherwise expressly provided herein), by good and
sufficient check
drawn on a national banking association at Landlord's address
provided for in
this Lease or as otherwise specified by Landlord and shall be
accompanied by all
applicable state and local sales or use taxes. The obligations
of Tenant to pay
Basic Rent and other sums to Landlord and the obligations of
Landlord under this
Lease are independent obligations. Basic Rent, adjusted as
herein provided,
shall be payable monthly in advance. The first monthly
installment of Basic Rent
shall be payable contemporaneously with the execution of this
Lease; thereafter,
Basic Rent shall be payable on the first day of each month
beginning on the
first day of the second full calendar month of the Term. The
monthly Basic Rent
for any partial month at the beginning of the Term shall equal
the product of
1/365 of the annual Basic Rent in effect during the partial
month and the number
of days in the partial month, and shall be due on the
Commencement Date.
Payments of Basic Rent for any fractional calendar month at the
end of the Term
shall be similarly prorated. Tenant shall pay Additional Rent at
the same time
and in the same manner as Basic Rent.
(b) OPERATING COSTS; TAXES.
(1) Tenant shall pay to Landlord Tenant's Proportionate Share
of
the annual Operating Costs (defined below). Landlord may make a
good faith
estimate of Tenant's Proportionate Share of Operating Costs to
be due by
Tenant for any calendar year or part thereof during the Term.
During each
calendar year or partial calendar year of the Term, Tenant shall
pay to
Landlord, in advance concurrently with each monthly installment
of Basic
Rent, an amount equal to the estimated Tenant's
1
<PAGE>
Proportionate Share of Operating Costs for such calendar year or
part
thereof divided by the number of months therein. From time to
time,
Landlord may estimate and re-estimate the amount of Tenant's
Proportionate
Share of Operating Costs to be due by Tenant and deliver a copy
of the
estimate or re-estimate to Tenant. Thereafter, the monthly
installments of
Tenant's Proportionate Share of Operating Costs payable by
Tenant shall be
appropriately adjusted in accordance with the estimations so
that, by the
end of the calendar year in question, Tenant shall have paid all
of
Tenant's Proportionate Share of Operating Costs as estimated by
Landlord.
Any amounts paid based on such an estimate shall be subject to
adjustment
as herein provided when actual Operating Costs are available for
each
calendar year.
(2) The term "OPERATING COSTS" means all expenses and
disbursements (subject to the limitations set forth below) that
Landlord
incurs in connection with the ownership, operation, and
maintenance of the
Project, determined in accordance with sound accounting
principles
consistently applied, including the following costs: (A) wages
and salaries
of all on-site employees at or below the grade of senior
building manager
engaged in the operation, maintenance or security of the Project
(together
with Landlord's reasonable allocation of expenses of off-site
employees at
or below the grade of senior building manager who perform a
portion of
their services in connection with the operation, maintenance or
security of
the Project), including taxes, insurance and benefits relating
thereto; (B)
all supplies and materials used in the operation, maintenance,
repair,
replacement, and security of the Project; (C) repairs and
general
maintenance of the Project including paving and parking areas,
roads, roof
repairs (Landlord is responsible, at its sole cost and expense,
for
replacement of the parking areas and Building Structure items as
provided
in Section 7), alleys and driveways, trash collection, sweeping
and removal
of trash for the common areas, mowing and snow removal,
landscaping and
exterior painting, the cost of maintaining utility lines, fire
sprinklers
and fire protection systems, exterior lighting, and mechanical
and plumbing
systems serving the Project and, to the extent the following
items serve
more than one tenant in the Project, dock doors, drains and sump
pumps; (D)
other costs (exclusive of fair market rental) with respect to
the
management office for the Project; (E) service, maintenance and
management
contracts with independent contractors for the operation,
maintenance,
management, repair, replacement, and security of the Project
(including
alarm service, window cleaning, and elevator maintenance); (F)
costs of
professional services rendered for the general benefit of the
Project; (G)
environmental insurance or environmental management fees; (H)
the cost of
any insurance deductibles for insurance required to be
maintained by
Landlord; and (I) costs for capital improvements made in order
to comply
with any Law hereafter promulgated by any governmental authority
or any new
interpretations of any Law hereafter rendered with respect to
any existing
Law, as amortized using a commercially reasonable interest rate
over the
useful economic life of such improvements as determined by
Landlord in its
reasonable discretion. Attached hereto as Exhibit J is a line
item summary
of estimated Operating Costs for calendar year 2005 ("2005
ESTIMATED
OPERATING COSTS") and said line item summary encompasses all
categories of
Operating Costs for the Project. The 2005 Estimated Operating
Costs reflect
Landlord's good faith estimate of such estimated Operating Costs
for
calendar year 2005. Notwithstanding the 2005 Estimated Operating
Costs,
Tenant acknowledges and agrees that the actual Operating Costs
for calendar
year 2005 and for future calendar years may exceed the 2005
Estimated
Operating Costs and that Landlord is making no representation or
warranty
as to the actual Operating Costs for calendar year 2005 and for
future
calendar years. Notwithstanding any provisions of this Lease to
the
contrary, Operating Costs related to the Project (as opposed to
Operating
Costs related solely to the Premises) shall be determined by the
recorded
easement agreements referenced in Exhibit B attached hereto and
Tenant's
Proportionate Share of Operating Costs related to the Project
shall equal
all those costs Landlord is required to pay under said easement
agreements
as fee owner of the Premises exclusive of any costs relating to
the
replacement of the parking areas.
If any roof repair caused by a roof leak is required (provided
such
leak was not caused by any act or omission by any Tenant Party)
on more
than five (5) different occasions in a given calendar year and
an
experienced roof consultant mutually selected by Landlord and
Tenant
determines in its reasonable judgment that the roof should be
replaced (as
opposed to repaired), Landlord shall replace the roof within a
reasonable
time period at its sole cost and expense.
At Tenant's election, Tenant may extend the existing roof
warranty
beyond July, 2005 at its sole cost and expense by notifying
Landlord on or
before May 1, 2005 that it desires Landlord to extend the
existing roof
warranty beyond July, 2005 for an additional five (5) years.
Upon receipt
of Tenant's notice
2
<PAGE>
to Landlord to extend the existing roof warranty, Landlord shall
arrange
for the roof to be inspected at Tenant's sole cost and expense
(if any) on
or before June 1, 2005 and, at Tenant's option if Tenant desires
Landlord
to so extend the existing roof warranty, for any repairs
recommended by
said inspection to be made by Landlord's roofing contractor at
Tenant's
sole cost and expense; provided, however, irrespective of
whether Tenant
opts to have Landlord perform such repairs in order to extend
the existing
roof warranty, Landlord shall perform any such roof repairs
required to be
performed pursuant to the provisions of this Lease, including,
without
limitation, Section 7 hereof.
Operating Costs shall not include costs for (i) capital
improvements
made to the Project, other than capital improvements described
in Section
4(b)(2)(I) and except for items which are generally considered
maintenance
and repair items, such as painting of common areas, replacement
of carpet
in elevator lobbies (if any), and the like; (ii) repair,
replacements and
general maintenance paid by proceeds of insurance or by Tenant
or other
third parties; (iii) principal, interest, amortization or other
payments on
loans to Landlord; (iv) depreciation; (v) leasing commissions;
(vi) legal
expenses for services, other than those that benefit the Project
tenants
generally (e.g., tax disputes) (vii) Taxes; (viii) Insurance
Costs; (ix)
renovating or otherwise improving space for occupants of the
Project or
vacant space in the Project; (x) federal income taxes imposed on
or
measured by the income of Landlord from the operation of the
Project; (xi)
any ground or underlying lease rental; (xii) rentals for items
which if
purchased, rather than rented, would constitute a capital cost;
(xiii)
costs incurred by Landlord to the extent that Landlord is
reimbursed by
insurance proceeds or is otherwise reimbursed; (xiv) advertising
and
promotional expenditures, and costs of acquisition and
maintenance of signs
in or on the Building identifying the owner of the Building;
(xv) marketing
costs, including attorneys' fees (in connection with the
negotiation and
preparation of letters, deal memos, letters of intent, leases,
subleases
and/or assignments), space planning costs, and other costs and
expenses
incurred in connection with lease, sublease and/or assignment
negotiations
and transactions with prospective tenants or other occupants of
the
Building; (xvi) management fees paid or charged by Landlord in
connection
with the management of the Building to the extent such
management fee is in
excess of the management fee customarily paid or charged by
landlords of
the comparable buildings in the vicinity of the Building; (xvii)
amounts
paid to Landlord or to subsidiaries or affiliates of Landlord
for goods
and/or services in the Building to the extent the same exceeds
the costs of
such goods and/or services rendered by unaffiliated third
parties on a
competitive basis; (xviii) Landlord's general corporate overhead
and
general and administrative expenses; (xix) costs incurred in
connection
with upgrading the Building to comply with laws, rules,
regulations and
codes in effect prior to the Lease Date; (xx) all assessments
and premiums
(exclusive of real estate taxes and insurance premiums) which
are not
specifically charged to Tenant because of what Tenant has done,
which can
be paid by Landlord in installments without any interest or
penalties,
shall be paid by Landlord in the maximum number of installments
permitted
by law and not included as Operating Costs except in the year in
which the
assessment or premium installment is actually paid; (xxi) costs
arising
from Landlord's charitable or political contributions; (xxii)
costs for
sculpture, paintings or other objects of art; and (xxiii) costs
associated
with the operation of the business of the entity which
constitutes Landlord
as the same are distinguished from the costs of operation of the
Building,
including accounting and legal matters, costs of defending any
lawsuits
with any mortgagee (except as the actions of Tenant may be in
issue), costs
of selling, syndicating, financing, mortgaging or hypothecating
any of
Landlord's interest in the Building, costs incurred in
connection with any
disputes between Landlord and its employees, between Landlord
and Building
management, or between Landlord and other tenants or
occupants.
(3) Tenant shall also pay Tenant's Proportionate Share of
the
Taxes for each year and partial year falling within the Term.
Tenant shall
pay Tenant's Proportionate Share of Taxes in the same manner as
provided
above for Tenant's Proportionate Share of Operating Costs.
"TAXES" means
taxes, assessments, and governmental charges or fees whether
federal,
state, county or municipal, and whether they be by taxing
districts or
authorities presently taxing or by others, subsequently created
or
otherwise, and any other taxes and assessments (including
non-governmental
assessments for common charges under a restrictive covenant or
other
private agreement that are not treated as part of Operating
Costs) now or
hereafter attributable to the Project (or its operation),
excluding,
however, penalties and interest thereon and federal and state
taxes on
income, and inheritance, estate, succession, transfer, gift,
franchise, or
capital stock tax, or any income taxes arising out of or related
to
ownership and operation of income producing real estate, or any
excise
taxes imposed upon Landlord based upon gross or net rentals
or
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other income received by it (if the present method of taxation
changes so
that in lieu of or in addition to the whole or any part of any
Taxes, there
is levied on Landlord a capital tax directly on the rents
received
therefrom or a franchise tax, assessment, or charge based, in
whole or in
part, upon such rents for the Project, then all such taxes,
assessments, or
charges, or the part thereof so based, shall be deemed to be
included
within the term "Taxes" for purposes hereof). Taxes shall
include the costs
of consultants retained in an effort to lower taxes and all
costs incurred
in disputing any taxes or in seeking to lower the tax valuation
of the
Project. Upon Tenant's reasonable prior written request of
Landlord, Tenant
may request that Landlord file for an abatement or protest or
appeal the
appraised value of the Premises. Tenant shall use good faith
efforts to
provide notice to Landlord of such request at least forty-five
(45) days
prior to the date by which such abatement, protest or appeal
must be filed
under applicable Law. Within fifteen (15) business days of the
date
Landlord receives such request from Tenant, Landlord shall
notify Tenant as
to whether Landlord elects to pursue such abatement, protest or
appeal,
and, if Landlord so elects to pursue the same, then within a
reasonable
period of time required to preserve Landlord's rights to engage
in any such
abatement, protest or appeal, Landlord shall commence and
diligently pursue
such abatement, protest or appeal with an attorney or tax
consultant
reasonably satisfactory to Tenant. Tenant hereby acknowledges
that Deloitte
Touche (or any other national firm with which Landlord has an
arrangement
from time to time with respect to abatement work) shall be
deemed
acceptable to Tenant. If within such fifteen (15) business day
period
Landlord does not notify Tenant that Landlord elects to pursue
any such
abatement, protest or appeal, Tenant shall then have the right
to pursue
such abatement, protest or appeal using an attorney or tax
consultant
reasonably satisfactory to Landlord.
(4) By April 1 of each calendar year, or as soon thereafter
as
practicable, Landlord shall furnish to Tenant a statement of
Operating
Costs and Taxes for the previous year (the "OPERATING COSTS AND
TAX
STATEMENT"). If Tenant's payments of Operating Costs or Taxes
under this
Section 4(b) for the year covered by the Operating Costs and Tax
Statement
exceed Tenant's Proportionate Share of such items as indicated
in the
Operating Costs and Tax Statement, then Landlord shall promptly
credit or
reimburse Tenant for such excess; likewise, if Tenant's payments
of
Operating Costs or Taxes under this Section 4(b) for such year
are less
than Tenant's Proportionate Share of such items as indicated in
the
Operating Costs and Tax Statement, then Tenant shall promptly
pay Landlord
such deficiency.
(c) TENANT INSPECTION RIGHT. After receiving an annual Operating
Costs
and Tax Statement and giving Landlord 30-days' prior written
notice thereof,
Tenant may inspect or audit Landlord's records relating to
Operating Costs and
Taxes for the period of time covered by such Operating Costs and
Tax Statement
in accordance with the following provisions. If Tenant fails to
object to the
calculation of Operating Costs and Taxes on an annual Operating
Costs and Tax
Statement within 60 days after the statement has been delivered
to Tenant, or if
Tenant fails to conclude its audit or inspection within 120 days
after the
statement has been delivered to Tenant, then Tenant shall have
waived its right
to object to the calculation of Operating Costs and Taxes for
the year in
question and the calculation of Operating Costs and Taxes set
forth on such
statement shall be final. Tenant's audit or inspection shall be
conducted where
Landlord maintains its books and records, shall not unreasonably
interfere with
the conduct of Landlord's business, and shall be conducted only
during business
hours reasonably designated by Landlord. Tenant shall pay the
cost of such audit
or inspection, including $150 per hour of Landlord's or the
building manager's
employee time devoted to such inspection or audit in excess of
eight (8) hours
for any such inspection or audit to reimburse Landlord for its
overhead costs
allocable to the inspection or audit, unless the total Operating
Costs and Taxes
for the period in question is determined to be in error by more
than 5% in the
aggregate, and, as a result thereof, Tenant paid to Landlord at
least 5% more
than the actual Operating Costs and Taxes due for such period,
in which case
Landlord shall pay the audit cost. Tenant may not conduct an
inspection or have
an audit performed more than once during any calendar year.
Tenant or the
accounting firm conducting such audit shall, at no charge to
Landlord, submit
its audit report in draft form to Landlord for Landlord's review
and comment
before the final approved audit report is submitted to Landlord,
and any
reasonable comments by Landlord shall be incorporated into the
final audit
report. If such inspection or audit reveals that an error was
made in the
Operating Costs or Taxes previously charged to Tenant, then
Landlord shall
refund to Tenant any overpayment of any such costs, or Tenant
shall pay to
Landlord any underpayment of any such costs, as the case may be,
within 30 days
after notification thereof. Provided Landlord's accounting for
Operating Costs
and Taxes is consistent with the terms of this Lease, Landlord's
good faith
judgment regarding the proper interpretation of this Lease and
the proper
accounting for Operating Costs and Taxes shall be binding on
Tenant in
connection with any such audit or inspection. Tenant shall
maintain the results
of each such audit or inspection confidential and shall not be
permitted
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to use any third party to perform such audit or inspection,
other than an
independent firm of certified public accountants (1) reasonably
acceptable to
Landlord, (2) which is not compensated on a contingency fee
basis or in any
other manner which is dependent upon the results of such audit
or inspection
(and Tenant shall deliver the fee agreement or other similar
evidence of such
fee arrangement to Landlord upon request), and (3) which agrees
with Landlord in
writing to maintain the results of such audit or inspection
confidential.
Notwithstanding the foregoing, Tenant shall have no right to
conduct an audit if
Landlord furnishes to Tenant an audit report for the period of
time in question
prepared by an independent certified public accounting firm of
recognized
national standing (whether originally prepared for Landlord or
another party).
Nothing in this Section 4(c) shall be construed to limit,
suspend or abate
Tenant's obligation to pay Rent when due, including Additional
Rent.
(d) CASH INDUCEMENT. Landlord shall pay Tenant $350,000.00
in
immediately available funds (the "CASH INDUCEMENT") within ten
(10) days of the
date that Tenant takes possession of the Premises for the
purposes of conducting
its business therein.
5. DELINQUENT PAYMENT; HANDLING CHARGES. All past due payments
required of
Tenant hereunder shall bear interest from the date due until
paid at the lesser
of twelve percent (12%) per annum or the maximum lawful rate of
interest (such
lesser amount is referred to herein as the "DEFAULT RATE");
additionally,
Landlord, in addition to all other rights and remedies available
to it, may
charge Tenant a fee not greater than five percent of the
delinquent payment to
reimburse Landlord for its reasonable and actual costs incurred
as a consequence
of Tenant's delinquency. In no event, however, shall the charges
permitted under
this Section 5 or elsewhere in this Lease, to the extent they
are considered to
be interest under applicable Law, exceed the maximum lawful rate
of interest.
Notwithstanding the foregoing, the late fee referenced above
shall not be
charged with respect to the first occurrence (but not any
subsequent occurrence)
during any 12 month period that Tenant fails to make payment
when due, until
five days after Landlord delivers written notice of such
delinquency to Tenant.
6. INTENTIONALLY OMITTED.
7. LANDLORD'S MAINTENANCE OBLIGATIONS.
(a) BUILDING'S STRUCTURE. This Lease is intended to be a net
lease;
accordingly, Landlord's obligations are limited to the
replacement of the
Building's Structure and the parking areas, at its sole cost and
expense;
Landlord shall not be responsible for (1) any such work until
Tenant notifies
Landlord of the need therefor in writing or (2) for alterations
to the
Building's Structure required by applicable Law because of
Tenant's use of the
Premises (which alterations shall be Tenant's responsibility)
with exception of
any roof replacement required in writing by the Town of
Chelmsford or any other
governmental authority and not due to any act or omission of
Tenant other than
Tenant's mere occupancy, which roof replacement shall be
Landlord's
responsibility and shall be performed at Landlord's sole cost
and expense.
Neither Landlord nor Tenant shall have the roof inspected or
have any
communications with any person or entity regarding any aspect of
the roof
without obtaining the prior written consent of the other party
except to the
extent required by Law. The Building's Structure does not
include skylights,
windows, glass or plate glass, doors or overhead doors, special
fronts, or
office entries, dock bumpers, dock plates or levelers, loading
areas and docks,
and loading dock equipment, all of which shall be maintained by
Tenant;
provided, however, Landlord shall replace at its sole cost and
expense the
windows identified on Exhibit K attached hereto with windows
substantially
similar to the existing Building windows within one hundred
twenty (120) days
after the Lease Date. Landlord's liability for any defects,
repairs, replacement
or maintenance for which Landlord is specifically responsible
for under this
Lease shall be limited to the cost of performing the work.
(b) OTHER LANDLORD OBLIGATIONS. Additionally, Landlord shall
maintain
and repair as necessary the Building's Structure and the parking
areas, and
other common areas of the Project, including driveways, alleys,
landscape and
grounds surrounding the Building and utility lines in a good
condition,
consistent with the operation of a bulk warehouse/industrial or
service center
facility, including maintenance, repair, and replacement of rail
tracks serving
the Premises, the exterior of the Building (including painting),
landscaping
sprinkler systems, and any items normally associated with the
foregoing (which
shall include the services customarily provided to comparable
properties by
reputable professional management companies, including, without
limitation,
maintenance, repairs and replacement of (u) the parking area
associated with the
Building and located on the Premises, (v) all grass, shrubbery
and other
landscape treatments on the Premises, (w) the exterior of the
Building
(including painting), (x) exterior sprinkler systems and sewage
lines, and (y)
any other maintenance, repair
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or replacement items normally associated with the foregoing).
All costs in
performing the work described in the foregoing sentence shall be
included in
Operating Costs. Tenant shall promptly notify Landlord in
writing of any work
required to be performed under this Section 7, and Landlord
shall not be
responsible for performing such work until Tenant delivers to
Landlord such
notice. Additionally, in no event shall Landlord be responsible
for alterations
to the Building's Structure required by applicable Law because
of Tenant's use
of the Premises (which alterations shall be made by Tenant at
its sole cost and
expense). Notwithstanding anything to the contrary contained
herein, Landlord
shall, in its sole and absolute discretion, determine the
appropriate remedial
action required of it to satisfy its maintenance obligations
hereunder (e.g.,
Landlord shall, in its sole discretion, determine whether, and
to the extent,
repairs or replacements are the appropriate remedial action).
While Tenant is
the sole occupant of the Building, Tenant may, with Landlord's
prior written
consent (which consent shall not be unreasonably withheld,
conditioned or
delayed), substitute at Tenant's expense any of the providers of
the services
described in this Section 7(b) with reputable, licensed third
party service
providers located in the area in which the Building is located;
provided,
however, Tenant shall provide Landlord with copies of all
contracts with any
such service provider and said contracts shall be in form and
substance
reasonably satisfactory to Landlord. If in accordance with the
provisions of the
preceding sentence, Tenant engages (at its own cost) providers
for all of the
services to be provided by Landlord under this Section 7(b),
Operating Costs
shall be reduced to $1,000.00 per month (thus eliminating the
need for any other
category for Operating Costs for the Project as enumerated on
Exhibit J attached
hereto other than taxes and insurance). If Tenant engages
providers of the
services set forth in this Section 7(b) as aforesaid and any
such services are
provided, in Landlord's reasonable discretion, at an
unsatisfactory level as
would customarily be provided to comparable buildings, Landlord
may, upon prior
written notice to Tenant, elect to provide such services and the
management fee
shall no longer be reduced. Upon sixty (60) days prior written
notice to
Landlord, Tenant may elect to provide such services.
(c) LANDLORD REPRESENTATIONS. As of the Lease Date, Landlord
represents and warrants to Tenant that (i) Landlord holds fee
simple title to
the Premises, subject to no mortgage; (ii) no other party has
any possessory
right to the Building or has claimed the same; and (iii) the
Building's
Structure and, upon Tenant's seal coating and restriping certain
parking areas
pursuant to Section 29 below, parking areas shall be in good
condition and
repair.
8. IMPROVEMENTS; ALTERATIONS; TENANT'S MAINTENANCE AND REPAIR
OBLIGATIONS.
(a) IMPROVEMENTS; ALTERATIONS. Improvements to the Premises
shall be
installed at Tenant's expense only in accordance with plans and
specifications
which have been previously submitted to and approved in writing
by Landlord,
which approval shall be governed by the provisions set forth in
this Section
8(a). No alterations or physical additions in or to the Premises
may be made
without Landlord's prior written consent, which shall not be
unreasonably
withheld, conditioned or delayed; however, Landlord may withhold
and/or
condition its consent to any alteration or addition that would
adversely affect
(in the reasonable discretion of Landlord) (1) the Building's
Structure or the
Building's Systems (including the Building's restrooms or
mechanical rooms) or
(2) the exterior appearance of the Building or any other portion
of the Premises
exterior to the Building. Tenant shall not paint or install
lighting or
decorations, signs, window or door lettering, or advertising
media of any type
visible from the exterior of the Building without the prior
written consent of
Landlord, which consent may be withheld in Landlord's sole and
absolute
discretion. Notwithstanding the foregoing, Tenant shall not be
required to
obtain Landlord's consent for repainting, recarpeting, or other
alterations,
tenant improvements, alterations or physical additions to the
Building which are
cosmetic in nature totaling less than $25,000 in any single
instance or series
of related alterations performed within a six-month period
(provided that Tenant
shall not perform any improvements, alterations or additions to
the Premises in
stages as a means to subvert this provision), in each case
provided that (A)
Tenant delivers to Landlord written notice thereof, a list of
contractors and
subcontractors to perform the work (and certificates of
insurance for each such
party) and any plans and specifications therefor prior to
commencing any such
alterations, additions, or improvements (for informational
purposes only so long
as no consent is required by Landlord as required by this
Lease), (B) the
installation thereof does not involve any core drilling or the
configuration or
location of any exterior or interior walls of the Building, and
(C) such
alterations, additions and improvements will not affect (i) the
Building's
Structure or the Building's Systems, or (ii) the appearance of
the Project's
common areas or the exterior of the Building. All alterations,
additions, and
improvements shall be constructed, maintained, and used by
Tenant, at its risk
and expense, in accordance with all Laws; Landlord's consent to
or approval of
any alterations, additions or improvements (or the plans
therefor) shall not
constitute a representation or warranty by Landlord, nor
Landlord's acceptance,
that the same comply with
6
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sound architectural and/or engineering practices or with all
applicable Laws,
and Tenant shall be solely responsible for ensuring all such
compliance. Tenant
shall promptly repair any damage caused by any such alterations,
additions
and/or improvements. Landlord hereby consents to the performance
of the
improvements set forth on the Space Plans attached hereto as
Exhibit D-1.
(b) REPAIRS; MAINTENANCE. Tenant shall maintain the
Premises,
including the loading areas and dock, and loading dock equipment
in connection
with the Premises, in a clean, safe, and operable condition, and
shall not
permit or allow to remain any waste or damage to any portion of
the Premises.
Additionally, Tenant, at its sole expense, shall repair, replace
(excluding the
Building's Structure and the parking areas located on the
Premises) and maintain
in good condition and in accordance with all Laws and the
equipment
manufacturer's suggested service programs, all portions of the
Premises,
Tenant's Off-Premises Equipment and all areas, improvements and
systems
exclusively serving the Premises including loading docks, sump
pumps, dock
wells, dock equipment and loading areas, dock doors, dock seals,
overhead doors,
"levellors" and similar leveling equipment, plumbing, water,
fire sprinkler
system, and sewer lines up to points of common connection,
entries, doors,
ceilings, windows, interior walls, and the interior side of
demising walls, and
heating, ventilation and air conditioning systems (including any
evaporative
units), and other building and mechanical systems serving the
Premises. Such
repair and replacements include capital expenditures and repairs
whose benefit
may extend beyond the Term. No later than fourteen (14) days
prior to the end of
the Term, Tenant shall deliver to Landlord a certificate from an
engineer
reasonably acceptable to Landlord certifying that all such items
which Tenant is
required to maintain hereunder are then in good repair and
condition and have
been maintained in accordance with this Section 8. Tenant shall
repair or
replace, subject to Landlord's direction and supervision, any
damage to the
Building caused by a Tenant Party. If Tenant fails to make such
repairs or
replacements within fifteen (15) days after the occurrence of
such damage, then
Landlord may make the same at Tenant's cost. If any such damage
for which Tenant
is responsible for pursuant to this Section 8 occurs outside of
the Building,
then Landlord may elect to repair such damage at Tenant's
expense, rather than
having Tenant repair such damage. The cost of all maintenance,
repair or
replacement work performed by Landlord under this Section 8
shall be paid by
Tenant to Landlord within thirty (30) days after Landlord has
invoiced Tenant
therefor.
(c) PERFORMANCE OF WORK. All work described in this Section 8
shall be
performed only by Landlord or by contractors and subcontractors
approved in
writing by Landlord, such approval not to be unreasonably
withheld, conditioned
or delayed. Tenant shall cause all contractors and
subcontractors to procure and
maintain insurance coverage naming Landlord, Landlord's property
management
company and Landlord's asset management company as additional
insureds against
such risks, in such amounts, and with such companies as Landlord
may reasonably
require. Tenant shall provide Landlord with the identities,
mailing addresses
and telephone numbers of all persons performing work or
supplying materials
prior to beginning such construction and Landlord may post on
and about the
Premises notices of non-responsibility pursuant to applicable
Laws. All such
work shall be performed in accordance with all Laws and in a
good and
workmanlike manner so as not to damage the Building (including
the Premises, the
Building's Structure and the Building's Systems). All such work
which may affect
the Building's Structure or the Building's Systems must be
approved by the
Building's engineer of record at Tenant's expense and, at
Landlord's election,
must be performed by Landlord's usual contractor for such work,
provided that
the cost of such contractor's work shall not exceed the cost of
other
similar-quality contractors for similar services in other
similar buildings
located in the submarket in the city in which the Building is
located. All work
affecting the roof of the Building must be performed by
Landlord's roofing
contractor, and no such work will be permitted if it would void
or reduce the
warranty on the roof. Upon Landlord's request, Tenant shall
provide sworn
statements, including the names, addresses and copies of
contracts for all
contractors, and upon completion of any work shall promptly
furnish Landlord
with sworn owner's and contractor's statements and full and
final waivers of
lien covering all labor and materials included in the work in
question.
(d) MECHANIC'S LIENS. All work performed, materials furnished,
or
obligations incurred by or at the request of a Tenant Party
shall be deemed
authorized and ordered by Tenant only, and Tenant shall not
permit any
mechanic's liens to be filed against the Premises or the Project
in connection
therewith. Upon completion of any such work, Tenant shall
deliver to Landlord
final lien waivers from all contractors, subcontractors and
materialmen who
performed such work. If such a lien is filed, then Tenant shall,
within ten days
after Landlord has delivered notice of the filing thereof to
Tenant (or such
earlier time period as may be necessary to prevent the
forfeiture of the
Premises, the Project or any interest of Landlord therein or the
imposition of a
civil or criminal fine with respect thereto), either (1) pay the
amount of the
lien and cause the lien to be released of record, or (2)
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diligently contest such lien and deliver to Landlord a bond or
other security
reasonably satisfactory to Landlord. If Tenant fails to timely
take either such
action, then Landlord may pay the lien claim, and any amounts so
paid, including
expenses and interest, shall be paid by Tenant to Landlord
within ten days after
Landlord has invoiced Tenant therefor. Landlord and Tenant
acknowledge and agree
that their relationship is and shall be solely that of
"landlord-tenant"
(thereby excluding a relationship of "owner-contractor,"
"owner-agent" or other
similar relationships). Accordingly, all materialmen,
contractors, artisans,
mechanics, laborers and any other persons now or hereafter
contracting with
Tenant, any contractor or subcontractor of Tenant or any other
Tenant Party for
the furnishing of any labor, services, materials, supplies or
equipment with
respect to any portion of the Premises, at any time from the
date hereof until
the end of the Term, are hereby charged with notice that they
look exclusively
to Tenant to obtain payment for same. Nothing herein shall be
deemed a consent
by Landlord to any liens being placed upon the Premises, the
Project or
Landlord's interest therein due to any work performed by or for
Tenant or deemed
to give any contractor or subcontractor or materialman any right
or interest in
any funds held by Landlord to reimburse Tenant for any portion
of the cost of
such work. Tenant shall defend, indemnify and hold harmless
Landlord and its
agents and representatives from and against all claims, demands,
causes of
action, suits, judgments, damages and expenses (including
attorneys' fees) in
any way arising from or relating to the failure by any Tenant
Party to pay for
any work performed, materials furnished, or obligations incurred
by or at the
request of a Tenant Party. This indemnity provision shall
survive termination or
expiration of this Lease.
(e) JANITORIAL SERVICES. Tenant, at its sole expense, shall
provide
its own janitorial services to the Premises and shall maintain
the Premises in a
clean and safe condition. Tenant shall store all trash and
garbage within the
area and in receptacles designated from time to time by Landlord
and shall, at
its sole expense, arrange for the regular pickup of such trash
and garbage at
times, and pursuant to reasonable regulations, established by
Landlord from time
to time. If Tenant fails to provide janitorial services to the
Premises or trash
removal services in compliance with the foregoing, Landlord, in
addition to any
other rights and remedies available to it, may provide such
services, and Tenant
shall pay to Landlord the cost thereof, plus an administrative
fee equal to 15%
of such cost, within ten (10) days after Landlord delivers to
Tenant an invoice
therefor.
9. UTILITIES. Tenant shall pay for all water, gas, electricity,
heat,
telephone, sewer, sprinkler charges and other utilities and
services used at the
Premises, together with any taxes, penalties, surcharges,
connection charges,
maintenance charges, and the like pertaining to Tenant's use of
the Premises.
Tenant, at its expense, shall obtain all utility services for
the Premises,
including making all applications therefor, obtaining meters and
other related
equipment, and paying all deposits and connection charges.
Landlord shall not be
liable for any interruption or failure of utility service to the
Premises, and
such interruption or failure of utility service shall not be a
constructive
eviction of Tenant, constitute a breach of any implied warranty
or entitle
Tenant to any abatement of Tenant's obligations hereunder.
10. USE. Tenant shall use the Premises only for the Permitted
Use and shall
comply with all Laws relating to the use, condition, access to,
and occupancy of
the Premises and will not commit waste, overload the Building's
Structure or the
Building's Systems or subject the Premises to use that would
damage the
Premises. The Premises shall not be used for any use which is
disreputable or
creates extraordinary fire hazards, or for the storage of any
Hazardous
Materials (except as provided in Section 28 hereto). The storage
of trucks and
other vehicles and the portable cell tower (which portable cell
tower shall be
located only behind the rear of the Building) is permitted
within the Premises;
provided, however, to the extent such vehicles and cell tower
are located within
parking spaces on the Premises, such parking spaces shall be
among those parking
spaces which Tenant is granted a right to use pursuant to the
provisions of
Section 29 below. Tenant shall conduct its business and control
each other
Tenant Party so as not to create any nuisance or unreasonably
interfere with
Landlord in its management of the Building.
11. ASSIGNMENT AND SUBLETTING.
(a) TRANSFERS. Except as provided in Section 11(h), Tenant shall
not,
without the prior written consent of Landlord, (1) assign,
transfer, or encumber
this Lease or any estate or interest herein, whether directly or
by operation of
law, (2) permit any other entity to become Tenant hereunder by
merger,
consolidation, or other reorganization, (3) if Tenant is an
entity other than a
corporation whose stock is publicly traded, permit the transfer
of an ownership
interest in Tenant so as to result in a change in the current
control of Tenant,
(4) sublet any portion of the Premises, (5) grant any license,
concession, or
other right of occupancy of any portion of the
8
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Premises, or (6) permit the use of the Premises by any parties
other than Tenant
(any of the events listed in Section 11(a)(1) through 11(a)(6)
being a
"TRANSFER").
(b) CONSENT STANDARDS. Landlord shall not unreasonably
withhold,
condition or delay its consent to any assignment or subletting
of the Premises,
provided that the proposed transferee (1) is creditworthy, (2)
has a good
reputation in the business community, (3) will use the Premises
for the
Permitted Use (thus, excluding, without limitation, uses for
credit processing
and telemarketing), (4) will not use the Premises, Building or
Project in a
manner that would materially increase the pedestrian or
vehicular traffic to the
Premises, Building or Project, (5) is not a governmental entity,
or subdivision
or agency thereof, (6) is not another occupant of the Building,
and (7) is not a
person or entity with whom Landlord is then, or has been within
the six-month
period prior to the time Tenant seeks to enter into such
assignment or
subletting, negotiating to lease space in the Building, or any
Affiliate of any
such person or entity; otherwise, Landlord may withhold its
consent in its sole
discretion. Additionally, Landlord may withhold its consent in
its sole
discretion to any proposed Transfer if any Event of Default by
Tenant then
exists.
(c) REQUEST FOR CONSENT. If Tenant requests Landlord's consent
to a
Transfer, then, at least fifteen (15) business days prior to the
effective date
of the proposed Transfer, Tenant shall provide Landlord with a
written
description of all terms and conditions of the proposed
Transfer, copies of the
proposed documentation, and the following information about the
proposed
transferee: name and address; reasonably satisfactory
information about its
business and business history; its proposed use of the Premises;
banking,
financial, and other credit information; and general references
sufficient to
enable Landlord to determine the proposed transferee's
creditworthiness and
character. Concurrently with Tenant's notice of any request for
consent to a
Transfer, Tenant shall pay to Landlord a fee of $500.00 to
defray Landlord's
expenses in reviewing such request, and Tenant shall also
reimburse Landlord
immediately upon request for its reasonable attorneys' fees
incurred in
connection with considering any request for consent to a
Transfer.
(d) CONDITIONS TO CONSENT. If Landlord consents to a
proposed
Transfer, then the proposed transferee shall deliver to Landlord
a written
agreement whereby it expressly assumes Tenant's obligations
hereunder; however,
any transferee of less than all of the space in the Premises
shall be liable
only for obligations under this Lease that are properly
allocable to the space
subject to the Transfer for the period of the Transfer. No
Transfer shall
release Tenant from its obligations under this Lease, but rather
Tenant and its
transferee shall be jointly and severally liable therefor.
Landlord's consent to
any Transfer shall not waive Landlord's rights as to any
subsequent Transfers.
If an Event of Default occurs while the Premises or any part
thereof are subject
to a Transfer, then Landlord, in addition to its other remedies,
may collect
directly from such transferee all rents becoming due to Tenant
and apply such
rents against Rent. Tenant authorizes its transferees to make
payments of rent
directly to Landlord upon receipt of notice from Landlord to do
so following the
occurrence of an Event of Default hereunder. Tenant shall pay
for the cost of
any demising walls or other improvements necessitated by a
proposed subletting
or assignment.
(e) ATTORNMENT BY SUBTENANTS. Each sublease by Tenant hereunder
shall
be subject and subordinate to this Lease and to the matters to
which this Lease
is or shall be subordinate, and each subtenant by entering into
a sublease is
deemed to have agreed that in the event of termination, re-entry
or
dispossession by Landlord under this Lease, Landlord may, at its
option, take
over all of the right, title and interest of Tenant, as
sublandlord, under such
sublease, and such subtenant shall, at Landlord's option, attorn
to Landlord
pursuant to the then executory provisions of such sublease,
except that Landlord
shall not be (1) liable for any previous act or omission of
Tenant under such
sublease, (2) subject to any counterclaim, offset or defense
that such subtenant
might have against Tenant, (3) bound by any previous
modification of such
sublease not approved by Landlord in writing or by any rent or
additional rent
or advance rent which such subtenant might have paid for more
than the current
month to Tenant, and all such rent shall remain due and owing,
notwithstanding
such advance payment, (4) bound by any security or advance
rental deposit made
by such subtenant which is not delivered or paid over to
Landlord and with
respect to which such subtenant shall look solely to Tenant for
refund or
reimbursement, or (5) obligated to perform any work in the
subleased space or to
prepare it for occupancy, and in connection with such
attornment, the subtenant
shall execute and deliver to Landlord any instruments Landlord
may reasonably
request to evidence and confirm such attornment. Each subtenant
or licensee of
Tenant shall be deemed, automatically upon and as a condition of
its occupying
or using the Premises or any part thereof, to have agreed to be
bound by the
terms and
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conditions set forth in this Section 11(e). The provisions of
this Section 11(e)
shall be self-operative, and no further instrument shall be
required to give
effect to this provision.
(f) CANCELLATION. Landlord may, within thirty (30) days
after
submission of Tenant's written request for Landlord's consent to
an assignment
of this Lease or subletting of greater than 50% of the rentable
square feet in
the Premises for all or substantially all of the remainder of
the Term, cancel
this Lease as to the portion of the Premises proposed to be
sublet or assigned
as of the date the proposed Transfer is to be effective. If
Landlord cancels
this Lease as to any portion of the Premises, then this Lease
shall cease for
such portion of the Premises and Tenant shall pay to Landlord
all Rent accrued
through the cancellation date relating to the portion of the
Premises covered by
the proposed Transfer and any and all costs incurred to demise
separately such
portion of the Premises. Thereafter, Landlord may lease such
portion of the
Premises to the prospective transferee (or to any other person)
without
liability to Tenant. Notwithstanding the foregoing, if Landlord
provides written
notification to Tenant of its election to cancel this Lease as
to any portion of
the Premises as provided above, Tenant may rescind its proposed
assignment or
subletting of all or any portion of the Premises by notifying
Landlord in
writing within three (3) business days following Landlord's
written cancellation
notice.
(g) ADDITIONAL COMPENSATION. While no Event of Default exists,
Tenant
shall pay to Landlord, immediately upon receipt thereof, fifty
percent (50%) of
the excess of (1) all compensation received by Tenant for a
Transfer less the
actual out-of-pocket costs reasonably incurred by Tenant with
unaffiliated third
parties (i.e., brokerage commissions and tenant finish work) in
connection with
such Transfer (such costs shall be amortized on a straight-line
basis over the
term of the Transfer in question) over (2) the Rent allocable to
the portion of
the Premises covered thereby. While any Event of Default exists,
Tenant shall
pay to Landlord, immediately upon receipt thereof, the excess of
(A) all
compensation received by Tenant for a Transfer over (B) the Rent
allocable to
the portion of the Premises covered thereby.
In calculating any excess rent payable by Tenant to Landlord
pursuant to
this provision, Tenant shall first be entitled to deduct (a)
market improvement
allowances or other market economic concessions granted by
Tenant to the
assignee or sublessee and (b) market brokerage commissions
and/or reasonable
legal fees paid by Tenant in connection with the assignment or
sublease.
(h) PERMITTED TRANSFERS. Notwithstanding Section 11(a), Tenant
may
Transfer all or part of its interest in this Lease or all or
part of the
Premises (a "PERMITTED TRANSFER") to the following types of
entities (a
"PERMITTED TRANSFEREE") without the consent of Landlord:
(1) an Affiliate of Tenant;
(2) any corporation, limited partnership, limited liability
partnership, limited liability company or other business entity
in which or
with which Tenant, or its corporate successors or assigns, is
merged or
consolidated, in accordance with applicable statutory provisions
governing
merger and consolidation of business entities, so long as (A)
Tenant's
obligations hereunder are assumed by the entity surviving such
merger or
created by such consolidation; and (B) the Tangible Net Worth of
the
surviving or created entity is not less than the greater of (i)
the
Tangible Net Worth of Tenant as of the date of such Transfer or
(ii)
$8,000,000; or
(3) any corporation, limited partnership, limited liability
partnership, limited liability company or other business entity
acquiring
all or substantially all of Tenant's stock or assets if such
entity's
Tangible Net Worth after such acquisition is not less than (i)
the Tangible
Net Worth of Tenant as of the date of such Transfer or (ii)
$8,000,000.
Tenant shall promptly notify Landlord of any such Permitted
Transfer. Tenant
shall remain liable for the performance of all of the
obligations of Tenant
hereunder, or if Tenant no longer exists because of a merger,
consolidation, or
acquisition, the surviving or acquiring entity shall expressly
assume in writing
the obligations of Tenant hereunder. Additionally, the Permitted
Transferee
shall comply with all of the terms and conditions of this Lease,
including the
Permitted Use. No later than 30 days after the effective date of
any Permitted
Transfer, Tenant agrees to furnish Landlord with (A) copies of
the instrument
effecting any of the foregoing Transfers, (B) documentation
establishing
Tenant's satisfaction of the requirements set forth above
applicable to any such
Transfer,
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and (C) evidence of insurance as required under this Lease with
respect to the
Permitted Transferee. The occurrence of a Permitted Transfer
shall not waive
Landlord's rights as to any subsequent Transfers. "TANGIBLE NET
WORTH" means the
excess of total assets over total liabilities, in each case as
determined in
accordance with generally accepted accounting principles
consistently applied
("GAAP"), excluding, however, from the determination of total
assets all assets
which would be classified as intangible assets under GAAP
including goodwill,
licenses, patents, trademarks, trade names, copyrights, and
franchises. Any
subsequent Transfer by a Permitted Transferee shall be subject
to the terms of
this Section 11.
12. INSURANCE; WAIVERS; SUBROGATION; INDEMNITY.
(a) TENANT'S INSURANCE. Effective as of the earlier of (1) the
date
Tenant enters or occupies the Premises, or (2) the Commencement
Date, and
continuing throughout the Term, Tenant shall maintain the
following insurance
policies: (A) commercial general liability insurance in amounts
of $3,000,000
per occurrence or, following the expiration of the initial Term,
such other
amounts as Landlord may from time to time reasonably require
(and, if the use
and occupancy of the Premises include any activity or matter
that is or may be
excluded from coverage under a commercial general liability
policy [e.g., the
sale, service or consumption of alcoholic beverages], Tenant
shall obtain such
endorsements to the commercial general liability policy or
otherwise obtain
insurance to insure all liability arising from such activity or
matter
[including host liquor liability, if applicable] in such amounts
as Landlord may
reasonably require), insuring Tenant, Landlord, Landlord's
property management
company, Landlord's asset management company and, if requested
in writing by
Landlord, Landlord's Mortgagee, against all liability for injury
to or death of
a person or persons or damage to property arising from the use
and occupancy of
the Premises and (without implying any consent by Landlord to
the installation
thereof) the installation, operation, maintenance, repair or
removal of Tenant's
Off-Premises Equipment, (B) insurance covering the full value of
all alterations
and improvements and betterments in the Premises, naming
Landlord and Landlord's
Mortgagee as additional loss payees as their interests may
appear, (C) insurance
covering the full value of all furniture, trade fixtures and
personal property
(including property of Tenant or others) in the Premises or
otherwise placed in
the Project by or on behalf of a Tenant Party, (D) contractual
liability
insurance sufficient to cover Tenant's indemnity obligations
hereunder (but only
if such contractual liability insurance is not already included
in Tenant's
commercial general liability insurance policy), (E) worker's
compensation
insurance, and (F) business interruption insurance in an amount
equal to
Tenant's Base Rent and Additional Rent obligations under this
Lease for nine (9)
months. Tenant's insurance shall provide primary coverage to
Landlord for the
property that will inure to Landlord during the Term of this
Lease and for third
party liability exposures within the confines of the Premises.
Tenant shall
furnish to Landlord certificates of such insurance and such
other evidence
satisfactory to Landlord of the maintenance of all insurance
coverages required
hereunder at least ten days prior to the earlier of the
Commencement Date or the
date Tenant enters or occupies the Premises, and at least 15
days prior to each
renewal of said insurance, and Tenant shall obtain a written
obligation on the
part of each insurance company to notify Landlord at least 30
days before
cancellation or a material change of any such insurance
policies. All such
insurance policies shall be in form, and issued by companies
with an A.M. Best
rating of A:VII or better, reasonably satisfactory to Landlord.
If Tenant fails
to comply with the foregoing insurance requirements or to
deliver to Landlord
the certificates or evidence of coverage required herein,
Landlord, in addition
to any other remedy available pursuant to this Lease or
otherwise, may, but
shall not be obligated to, obtain such insurance and Tenant
shall pay to
Landlord on demand the premium costs thereof, plus an
administrative fee of 5%
of such cost.
(b) LANDLORD'S INSURANCE. Throughout the Term of this Lease,
Landlord
shall maintain, as a minimum, the following insurance policies:
(1) property
insurance for the Building's replacement value (excluding
property required to
be insured by Tenant), less a commercially-reasonable deductible
if Landlord so
chooses, and (2) commercial general liability insurance in an
amount of not less
than $3,000,000. Landlord may, but is not obligated to, maintain
such other
insurance and additional coverages as it may deem reasonably
necessary. The cost
of all insurance carried by Landlord with respect to the Project
shall be
included in Insurance Costs (defined below). The foregoing
insurance policies
and any other insurance carried by Landlord shall be for the
primary benefit of
Landlord and under Landlord's sole control.
(c) NO SUBROGATION; WAIVER OF PROPERTY CLAIMS. Landlord and
Tenant
each waives any claim it might have against the other for any
damage to or
theft, destruction, loss, or loss of use of any property, to the
extent the same
is insured against under any insurance policy of the types
described in this
Section 12 that covers the Project, the Premises, Landlord's or
Tenant's
fixtures, personal property, leasehold improvements, or
business,
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or is required to be insured against under the terms hereof,
regardless of
whether the negligence of the other party caused such Loss
(defined below).
Additionally, Landlord and Tenant each waives any claim it may
have against the
other for any Loss to the extent such Loss is caused by a
terrorist act. Each
party shall cause its insurance carrier to endorse all
applicable policies
waiving the carrier's rights of recovery under subrogation or
otherwise against
the other party. Notwithstanding any provision in this Lease to
the contrary,
Landlord, its agents, employees and contractors shall not be
liable to Tenant or
to any party claiming by, through or under Tenant for (and
Tenant hereby
releases Landlord and its servants, agents, contractors,
employees and invitees
from any claim or responsibility for) any damage to or
destruction, loss, or
loss of use, or theft of any property of any Tenant Party
located in or about
the Project, caused by casualty, theft, fire, third parties or
any other matter
or cause, regardless of whether the negligence of any party
caused such loss in
whole or in part. Tenant acknowledges that Landlord shall not
carry insurance
on, and shall not be responsible for damage to, any property of
any Tenant Party
located in or about the Project.
(d) INDEMNITY. Subject to Section 12(c), Tenant shall
defend,
indemnify, and hold harmless Landlord and its representatives
and agents from
and against all claims, demands, liabilities, causes of action,
suits,
judgments, damages, and expenses (including reasonable
attorneys' fees) arising
from any injury to or death of any person or the damage to or
theft,
destruction, loss or loss of use of any property or
inconvenience (a "LOSS")
occurring in or on the Premises or arising out of the
installation, operation,
maintenance, repair or removal of any property of any Tenant
Party located in or
about the Project, including Tenant's Off-Premises Equipment,
except to the
extent caused by the negligence or fault of Landlord or its
agents. Subject to
Section 12(c), Landlord shall defend, indemnify, and hold
harmless Tenant and
its agents from and against all claims, demands, liabilities,
causes of action,
suits, judgments, damages, and expenses (including reasonable
attorneys' fees)
for any Loss arising from any occurrence in or on the Premises
to the extent
caused by the gross negligence or willful misconduct of
Landlord. The
indemnities set forth in this Lease shall survive termination or
expiration of
this Lease and shall not terminate or be waived, diminished or
affected in any
manner by any abatement or apportionment of Rent under any
provision of this
Lease. If any proceeding is filed for which indemnity is
required hereunder, the
indemnifying party agrees, upon request therefor, to defend the
indemnified
party in such proceeding at its sole cost utilizing counsel
satisfactory to the
indemnified party.
(e) COST OF LANDLORD'S INSURANCE. Tenant shall pay Tenant's
Proportionate Share of the cost of the property and liability
insurance carried
by Landlord from time to time with respect to the Building
(including other
improvements and Landlord's personal property used in connection
therewith),
which may include fire and extended coverage insurance
(including extended and
broad form coverage risks, mudslide, land subsidence, volcanic
eruption, flood,
earthquake and rent loss insurance) and comprehensive general
public liability
insurance and excess liability insurance, in such amounts and
containing such
terms as Landlord deems necessary or desirable (collectively,
"INSURANCE
COSTS"). During each month of the Term, Tenant shall make a
monthly payment to
Landlord equal to 1/12th of Tenant's Proportionate Share of
Insurance Costs that
will be due and payable for that particular year. Each payment
of Insurance
Costs shall be due and payable at the same time as, and in the
same manner as,
provided above for Tenant's Proportionate Share of Operating
Costs. The initial
monthly payment of Insurance Costs is based upon Landlord's good
faith estimate
of Tenant's Proportionate Share of the estimated Insurance Costs
for the
remainder of the first calendar year. The monthly payment of
Insurance Costs is
subject to increase or decrease as determined by Landlord to
reflect accurately
Tenant's Proportionate Share of estimated Insurance Costs. If,
following
Landlord's receipt of the bill for the insurance premiums for a
calendar year,
Landlord determines that Tenant's total payments of Insurance
Costs are less
than Tenant's Proportionate Share of actual Insurance Costs,
Tenant shall pay to
Landlord the difference upon demand; if Tenant's total payments
of Insurance
Costs are more than Tenant's Proportionate Share of actual
Insurance Costs,
Landlord shall retain such excess and credit it to Tenant's
future payments of
Insurance Costs (unless such adjustment is at the end of the
Term, in which
event Landlord shall refund such excess to Tenant).
13. SUBORDINATION; ATTORNMENT; NOTICE TO LANDLORD'S
MORTGAGEE.
(a) SUBORDINATION. Subject to the obtaining of an SNDA pursuant
to
Section 13(e), this Lease shall be subordinate to any deed of
trust, mortgage,
or other security instrument (each, a "MORTGAGE"), or any ground
lease, master
lease, or primary lease (each, a "PRIMARY LEASE"), that now or
hereafter covers
all or any part of the Premises (the mortgagee under any such
Mortgage,
beneficiary under any such deed of trust, or the lessor under
any such Primary
Lease is referred to herein as a "LANDLORD'S MORTGAGEE"). Any
Landlord's
Mortgagee
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may elect, at any time, unilaterally, to make this Lease
superior to its
Mortgage, Primary Lease, or other interest in the Premises by so
notifying
Tenant in writing. Subject to the obtaining of an SNDA pursuant
to Section
13(e), the provisions of this Section shall be self-operative
and no further
instrument of subordination shall be required; however, in
confirmation of such
subordination, Tenant shall execute and return to Landlord (or
such other party
designated by Landlord) within ten (10) days after written
request therefor such
documentation, in recordable form if required, as a Landlord's
Mortgagee may
reasonably request to evidence the subordination of this Lease
to such
Landlord's Mortgagee's Mortgage or Primary Lease (including a
subordination,
non-disturbance and attornment agreement) or, if the Landlord's
Mortgagee so
elects, the subordination of such Landlord's Mortgagee's
Mortgage or Primary
Lease to this Lease.
(b) ATTORNMENT. Subject to the obtaining of an SNDA pursuant
to
Section 13(e), Tenant shall attorn to any party succeeding to
Landlord's
interest in the Premises, whether by purchase, foreclosure, deed
in lieu of
foreclosure, power of sale, termination of lease, or otherwise,
upon such
party's request, and shall execute such agreements confirming
such attornment as
such party may reasonably request.
(c) NOTICE TO LANDLORD'S MORTGAGEE. Tenant shall not seek to
enforce
any remedy it may have for any default on the part of Landlord
without first
giving written notice by certified mail, return receipt
requested, specifying
the default in reasonable detail, to any Landlord's Mortgagee
whose address has
been given to Tenant, and affording such Landlord's Mortgagee a
reasonable
opportunity to perform Landlord's obligations hereunder.
(d) LANDLORD'S MORTGAGEE'S PROTECTION PROVISIONS. If
Landlord's
Mortgagee shall succeed to the interest of Landlord under this
Lease, Landlord's
Mortgagee shall not be: (1) liable for any act or omission of
any prior lessor
(including Landlord) except to the extent the same continues
following such
succession; (2) bound by any rent or additional rent or advance
rent which
Tenant might have paid for more than the current month to any
prior lessor
(including Landlord), and all such rent shall remain due and
owing,
notwithstanding such advance payment; (3) bound by any security
or advance
rental deposit made by Tenant which is not delivered or paid
over to Landlord's
Mortgagee and with respect to which Tenant shall look solely to
Landlord for
refund or reimbursement; provided that Landlord hereby agrees to
promptly
deliver such security or advance rental deposit to Landlord's
Mortgagee if
Landlord's Mortgagee succeeds to the interest of Landlord under
this Lease; (4)
bound by any termination, amendment or modification of this
Lease made without
Landlord's Mortgagee's consent and written approval, except for
those
terminations, amendments and modifications permitted to be made
by Landlord
without Landlord's Mortgagee's consent pursuant to the terms of
the loan
documents between Landlord and Landlord's Mortgagee or otherwise
permitted to be
made by Tenant pursuant to the provisions of this Lease; (5)
subject to the
defenses which Tenant might have against any prior lessor
(including Landlord);
and (6) subject to the offsets which Tenant might have against
any prior lessor
(including Landlord) except for those offset rights which (A)
are expressly
provided in this Lease, (B) relate to periods of time following
the acquisition
of the Building by Landlord's Mortgagee, and (C) Tenant has
provided written
notice to Landlord's Mortgagee and provided Landlord's Mortgagee
a reasonable
opportunity to cure the event giving rise to such offset event.
Landlord's
Mortgagee shall have no liability or responsibility under or
pursuant to the
terms of this Lease or otherwise after it ceases to own an
interest in the
Project. Nothing in this Lease shall be construed to require
Landlord's
Mortgagee to see to the application of the proceeds of any loan,
and Tenant's
agreements set forth herein shall not be impaired on account of
any modification
of the documents evidencing and securing any loan.
Notwithstanding anything to
the contrary contained herein, any such Landlord's Mortgagee
shall remain liable
to Tenant for the payment of the Construction Allowance (as set
forth in Exhibit
D and in accordance with the provisions thereof) to the extent
the same has not
been previously delivered to Tenant.
(e) SUBORDINATION, NON-DISTURBANCE AND ATTORNMENT AGREEMENT.
The
Premises are not currently encumbered by a Landlord's Mortgagee.
Landlord shall
use reasonable efforts to obtain a subordination,
non-disturbance and attornment
agreement ("SNDA") from any Landlord's Mortgagee, in a form
reasonably
acceptable to Tenant and such Landlord's Mortgagee or other
institutional
lenders; however, Landlord's failure to obtain such agreement
shall not
constitute a default by Landlord hereunder or prohibit the
mortgaging of the
Premises; and further provided that any costs associated with
obtaining such
subordination, non-disturbance and attornment agreement shall be
paid by Tenant
within fifteen (15) days after Landlord's written request
therefor. The
subordination of Tenant's rights hereunder to any Landlord's
Mortgagee under
Section 13(a) shall be conditioned
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upon such Landlord's Mortgagee's execution and delivery of an
SNDA in a form
reasonably acceptable to Tenant and such Landlord's Mortgagee or
other
institutional lenders.
14. RULES AND REGULATIONS. Tenant shall comply with the rules
and
regulations of the Project which are attached hereto as Exhibit
C. Landlord may,
from time to time, reasonably change such rules and regulations
for the safety,
care, or cleanliness of the Project and related facilities,
provided that such
changes are applicable to all tenants of the Project, will not
unreasonably
interfere with Tenant's use of the Premises and are enforced by
Landlord in a
non-discriminatory manner. Tenant shall be responsible for the
compliance with
such rules and regulations by each Tenant Party.
15. CONDEMNATION.
(a) TOTAL TAKING. If the entire Building or Premises are taken
by
right of eminent domain or conveyed in lieu thereof (a
"TAKING"), this Lease
shall terminate as of the date of the Taking.
(b) PARTIAL TAKING - TENANT'S RIGHTS. If any material part of
the
Building and/or all reasonable means of access to the Building
becomes subject
to a Taking and such Taking will prevent Tenant from conducting
its business in
the Building in a manner reasonably comparable to that conducted
immediately
before such Taking for a period of more than three hundred
sixty-five (365)
consecutive days or for more than forty-five (45) days during
the last year of
the Term, then Tenant may terminate this Lease as of the date of
such Taking by
giving written notice to Landlord within thirty (30) days after
the Taking, and
Basic Rent and Additional Rent shall be apportioned as of the
date of such
Taking. If Tenant does not terminate this Lease, then Rent shall
be abated on a
reasonable basis as to that portion of the Premises rendered
untenantable by the
Taking.
(c) PARTIAL TAKING - LANDLORD'S RIGHTS. If any material portion,
but
less than all, of the Building becomes subject to a Taking, or
if Landlord is
required to pay any of the proceeds arising from a Taking to a
Landlord's
Mortgagee, then Landlord may terminate this Lease by delivering
written notice
thereof to Tenant within thirty (30) days after such Taking, and
Basic Rent and
Additional Rent shall be apportioned as of the date of such
Taking. If Landlord
does not so terminate this Lease, then this Lease will continue,
but if any
portion of the Premises has been taken, Rent shall abate as
provided in the last
sentence of Section 15(b).
(d) TEMPORARY TAKING. If all or any portion of the Premises
becomes
subject to a Taking for a limited period of time, this Lease
shall remain in
full force and effect and Tenant shall continue to perform all
of the terms,
conditions and covenants of this Lease, including the payment of
Basic Rent and
all other amounts required hereunder. If any such temporary
Taking terminates
prior to the expiration of the Term, Tenant shall restore the
Premises as nearly
as possible to the condition prior to such temporary Taking to
the extent of the
award received by Tenant. Landlord shall be entitled to receive
the entire award
for any such temporary Taking, except that Tenant shall be
entitled to receive
the portion of such award which (1) compensates Tenant for its
loss of use of
the Premises within the Term and (2) reimburses Tenant for the
reasonable
out-of-pocket costs actually incurred by Tenant to restore the
Premises.
(e) AWARD. If any Taking occurs, then Landlord shall receive
the
entire award or other compensation for the Land, the Building,
and other
improvements taken; however, Tenant may separately pursue a
claim (to the extent
it will not reduce Landlord's award) against the condemnor for
the value of
Tenant's personal property which Tenant is entitled to remove
under this Lease,
moving costs, loss of business, and other claims it may
have.
(f) RESTORATION. In the event of any Taking of less than the
whole of
the Building which does not result in a termination of this
Lease, (1) Landlord,
at its expense but only to the extent of the award actually
received by Landlord
pursuant to such Taking (after deducting any reasonable expenses
incurred in
connection with such Taking), shall proceed with reasonable
diligence to repair,
alter and restore the remaining parts of the affected Building
to the extent
practicable, and (2) if requested by either party, Landlord and
Tenant shall
promptly execute an amendment to this Lease confirming the
deletion from the
Building of the space subject to the Taking.
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16. FIRE OR OTHER CASUALTY.
(a) REPAIR ESTIMATE. If the Premises or the Building are damaged
by
fire or other casualty (a "CASUALTY"), Landlord shall, within
seventy-five (75)
days after such Casualty, deliver to Tenant a good faith
estimate (the "DAMAGE
NOTICE") of the time needed to repair the damage caused by such
Casualty.
(b) TENANT'S RIGHTS. If a material portion of the Premises is
damaged
by Casualty such that Tenant is prevented from conducting its
business in the
Premises in a manner reasonably comparable to that conducted
immediately before
such Casualty and Landlord estimates that the damage caused
thereby cannot be
repaired within two hundred ten (210) days after the
commencement of repairs
(the "REPAIR PERIOD"), then Tenant may terminate this Lease by
delivering
written notice to Landlord of its election to terminate within
thirty (30) days
after the Damage Notice has been delivered to Tenant. If the
Building is
materially damaged by fire or other casualty during the last
twelve (12) months
of the Term and Tenant has not exercised its Term extension
rights under this
Lease, then Tenant shall have the right, exercisable by notice
to Landlord
delivered within thirty (30) days after the date of such fire or
other casualty,
to terminate this Lease, effective as of the later of date of
delivery of such
notice or the date Tenant vacates and surrenders the Premises in
accordance with
the provisions of this Lease.
(c) LANDLORD'S RIGHTS. If a Casualty damages the Premises or
a
material portion of the Building and (1) Landlord estimates that
the damage to
the Premises cannot be repaired within the Repair Period, (2)
the damage to the
Premises exceeds 50% of the replacement cost thereof (excluding
foundations and
footings), as estimated by Landlord, and such damage occurs
during the last two
years of the Term, (3) regardless of the extent of damage to the
Premises, the
damage is not fully covered by Landlord's insurance policies or
Landlord makes a
good faith determination that restoring the Building would be
uneconomical, or
(4) Landlord is required to pay any insurance proceeds arising
out of the
Casualty to a Landlord's Mortgagee, then Landlord may terminate
this Lease by
giving written notice of its election to terminate within 30
days after the
Damage Notice has been delivered to Tenant.
(d) REPAIR OBLIGATION. If neither party elects to terminate this
Lease
following a Casualty, then Landlord shall, within a reasonable
time after such
Casualty, begin to repair the Premises and shall proceed with
reasonable
diligence to restore the Premises to substantially the same
condition as they
existed immediately before such Casualty; however, Landlord
shall not be
required to repair or replace any alterations or betterments
within the Premises
or any furniture, equipment, trade fixtures or personal property
of Tenant or
others in the Premises or the Building, and Landlord's
obligation to repair or
restore the Premises shall be limited to the extent of the
insurance proceeds
actually received by Landlord for the Casualty in question. If
this Lease is
terminated under the provisions of this Section 16, Landlord
shall be entitled
to the full proceeds of the insurance policies providing
coverage for all
alterations, improvements and betterments in the Premises. If
Landlord does not
complete the restoration of the Premises within sixty (60) days
after the time
period estimated by Landlord to repair the damage caused by such
Casualty as
specified in the Damage Notice, as the same may be extended by
force majeure or
delays caused by a Tenant Party, Tenant may terminate this Lease
by delivering
written notice to Landlord and Landlord's Mortgagee within ten
(10) days
following the expiration of such 60-day period (as the same may
be extended as
set forth above) and prior to the date upon which Landlord
substantially
completes such restoration. Such termination shall be effective
as of the date
specified in Tenant's termination notice (but not earlier than
thirty (30) days
nor later than ninety (90) days after the date of such notice)
as if such date
were the date fixed for the expiration of the Term. If Tenant
fails to timely
give such termination notice, Tenant shall be deemed to have
waived its right to
terminate this Lease, time being of the essence with respect
thereto.
Notwithstanding the foregoing, if upon the receipt of Tenant's
written election
to terminate this Lease as provided in this Section 16(d),
Landlord reasonably
believes it can complete the restoration of the Premises within
thirty (30) days
following the receipt of such notice, Landlord may, in its sole
discretion,
elect to proceed with such restoration and, provided Landlord
substantially
completes such restoration within such 30-day period, Tenant's
election to
terminate shall be null and void.
(e) ABATEMENT OF RENT. If the Premises are damaged by Casualty,
Rent
for the portion of the Premises rendered untenantable by the
damage shall be
abated on a reasonable basis from the date of damage until the
completion of
Landlord's repairs (or until the date of termination of this
Lease by Landlord
or Tenant as provided above, as the case may be), unless a
Tenant Party caused
such damage, in which case, Tenant shall continue to pay Rent
without abatement.
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17. PERSONAL PROPERTY TAXES. Tenant shall be liable for all
taxes levied or
assessed against personal property, furniture, or fixtures
placed by Tenant in
the Premises or in or on the Building or Project. If any taxes
for which Tenant
is liable are levied or assessed against Landlord or Landlord's
property and
Landlord elects to pay the same, or if the assessed value of
Landlord's property
is increased by inclusion of such personal property, furniture
or fixtures and
Landlord elects to pay the taxes based on such increase, then
Tenant shall pay
to Landlord, within 30 days following written request therefor,
the part of such
taxes for which Tenant is primarily liable hereunder; however,
Landlord shall
not pay such amount if Tenant notifies Landlord that it will
contest the
validity or amount of such taxes before Landlord makes such
payment, and
thereafter diligently proceeds with such contest in accordance
with Law and if
the non-payment thereof does not pose a threat of loss or
seizure of the Project
or interest of Landlord therein or impose any fee or penalty
against Landlord.
18. EVENTS OF DEFAULT. Each of the following occurrences shall
be an "EVENT
OF DEFAULT":
(a) PAYMENT DEFAULT. Tenant's failure to pay Rent within five
(5) days
after Landlord has delivered written notice to Tenant that the
same is past due;
however, an Event of Default shall occur hereunder without any
obligation of
Landlord to give any notice if Tenant fails to pay Rent when due
and, during the
12 month interval preceding such failure, Landlord has given
Tenant written
notice of failure to pay Rent on two (2) occasions;
(b) Intentionally Omitted
(c) ESTOPPEL. Tenant fails to provide any estoppel certificate
after
Landlord's written request therefor pursuant to Section 26(e)
and such failure
shall continue for five (5) days after Landlord's second written
notice thereof
to Tenant;
(d) INSURANCE. Tenant fails to procure, maintain and deliver
to
Landlord evidence of the insurance policies and coverages as
required under
Section 12(a), and such failure shall continue for five (5) days
after
Landlord's written notice thereof to Tenant;
(e) MECHANIC'S LIENS. Tenant fails to pay and release of record,
or
diligently contest and bond around, any mechanic's lien filed
against the
Premises or the Project for any work performed, materials
furnished, or
obligation incurred by or at the request of Tenant, within the
time and in the
manner required by Section 8(d);
(f) OTHER DEFAULTS. Tenant's failure to perform, comply with,
or
observe any other agreement or obligation of Tenant under this
Lease and the
continuance of such failure for a period of more than thirty
(30) days after
Landlord has delivered to Tenant written notice thereof;
however, if such
failure cannot be cured within such 30-day period (thus
excluding, for example,
Tenant's obligation to provide Landlord evidence of Tenant's
insurance coverage)
and Tenant commences to cure such failure within such 30-day
period and
thereafter diligently pursues such cure to completion, then such
failure shall
not be an Event of Default unless it is not fully cured within
an additional
sixty (60) days after the expiration of the 30-day period;
and
(g) INSOLVENCY. The filing of a petition by or against Tenant
(the
term "TENANT" shall include, for the purpose of this Section
18(g), any
guarantor of Tenant's obligations hereunder) (1) in any
bankruptcy or other
insolvency proceeding; (2) seeking any relief under any state or
federal debtor
relief law; (3) for the appointment of a liquidator or receiver
for all or
substantially all of Tenant's property or for Tenant's interest
in this Lease;
(4) for the reorganization or modification of Tenant's capital
structure; or (5)
in any assignment for the benefit of creditors proceeding;
however, if such a
petition is filed against Tenant, then such filing shall not be
an Event of
Default unless Tenant fails to have the proceedings initiated by
such petition
dismissed within 90 days after the filing thereof.
19. REMEDIES. Upon any Event of Default, Landlord may, in
addition to all
other rights and remedies afforded Landlord hereunder or by law
or equity, take
any one or more of the following actions:
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<PAGE>
(a) TERMINATION OF LEASE. Terminate this Lease by giving
Tenant
written notice thereof, in which event Tenant shall pay to
Landlord the sum of
(1) all Rent accrued hereunder through the date of termination,
(2) all amounts
due under Section 20(a), and (3) an amount equal to (A) the
total Rent that
Tenant would have been required to pay for the remainder of the
Term plus
Landlord's estimate of aggregate expenses of reletting the
Premises, minus (B)
the then present fair rental value of the Premises for such
period, similarly
discounted;
(b) TERMINATION OF POSSESSION. Terminate Tenant's right to
possess the
Premises without terminating this Lease by giving written notice
thereof to
Tenant, in which event Tenant shall pay to Landlord (1) all Rent
and other
amounts accrued hereunder to the date of termination of
possession, (2) all
amounts due from time to time under Section 20(a), and (3) all
Rent and other
net sums required hereunder to be paid by Tenant during the
remainder of the
Term, diminished by any net sums thereafter received by Landlord
through
reletting the Premises during such period, after deducting all
costs incurred by
Landlord in reletting the Premises. If Landlord elects to
proceed under this
Section 19(b), Landlord may remove all of Tenant's property from
the Premises
and store the same in a public warehouse or elsewhere at the
cost of, and for
the account of, Tenant, without becoming liable for any loss or
damage which may
be occasioned thereby. Landlord shall use reasonable efforts to
relet the
Premises on such terms as Landlord in its sole discretion may
determine
(including a term different from the Term, rental concessions,
and alterations
to, and improvement of, the Premises); however, Landlord shall
not be obligated
to relet the Premises before leasing other portions of the
Building and Landlord
shall not be obligated to accept any prospective tenant proposed
by Tenant
unless such proposed tenant meets all of Landlord's leasing
criteria. Landlord
shall not be liable for, nor shall Tenant's obligations
hereunder be diminished
because of, Landlord's failure to relet the Premises or to
collect rent due for
such reletting. Tenant shall not be entitled to the excess of
any consideration
obtained by reletting over the Rent due hereunder. Reentry by
Landlord in the
Premises shall not affect Tenant's obligations hereunder for the
unexpired Term;
rather, Landlord may, from time to time, bring an action against
Tenant to
collect amounts due by Tenant, without the necessity of
Landlord's waiting until
the expiration of the Term. Unless Landlord delivers written
notice to Tenant
expressly stating that it has elected to terminate this Lease,
all actions taken
by Landlord to dispossess or exclude Tenant from the Premises
shall be deemed to
be taken under this Section 19(b). If Landlord elects to proceed
under this
Section 19(b), it may at any time elect to terminate this Lease
under Section
19(a); provided, however, in no event shall Tenant be required
to pay any sums
due under this Lease for any given period more than once; or
(c) PERFORM ACTS ON BEHALF OF TENANT. Perform any act Tenant
is
obligated to perform under the terms of this Lease (and enter
upon the Premises
in connection therewith if necessary) in Tenant's name and on
Tenant's behalf,
without being liable for any claim for damages therefor, and
Tenant shall
reimburse Landlord on demand for any expenses which Landlord may
incur in thus
effecting compliance with Tenant's obligations under this Lease
(including, but
not limited to, collection costs and legal expenses), plus
interest thereon at
the Default Rate.
20. PAYMENT BY TENANT; NON-WAIVER; CUMULATIVE REMEDIES.
(a) PAYMENT BY TENANT. Upon any Event of Default, Tenant shall
pay to
Landlord all costs incurred by Landlord (including court costs
and reasonable
attorneys' fees and expenses) in (1) obtaining possession of the
Premises, (2)
removing and storing Tenant's or any other occupant's property,
(3) repairing,
restoring, altering, remodeling, or otherwise putting the
Premises into
condition acceptable to a new tenant, (4) if Tenant is
dispossessed of the
Premises and this Lease is not terminated, reletting all or any
part of the
Premises (including brokerage commissions, cost of tenant finish
work, and other
costs incidental to such reletting), (5) performing Tenant's
obligations which
Tenant failed to perform, and (6) enforcing, or advising
Landlord of its rights,
remedies, and recourses arising out of the default. To the full
extent permitted
by law, Landlord and Tenant agree the federal and state courts
of the state in
which the Premises are located shall have exclusive jurisdiction
over any matter
relating to or arising from this Lease and the parties' rights
and obligations
under this Lease.
(b) NO WAIVER. Landlord's acceptance of Rent following an Event
of
Default shall not waive Landlord's rights regarding such Event
of Default. No
waiver by Landlord of any violation or breach of any of the
terms contained
herein shall waive Landlord's rights regarding any future
violation of such
term. Landlord's acceptance of any partial payment of Rent shall
not waive
Landlord's rights with regard to the remaining portion of the
Rent that is due,
regardless of any endorsement or other statement on any
instrument delivered in
payment of
17
<PAGE>
Rent or any writing delivered in connection therewith;
accordingly, Landlord's
acceptance of a partial payment of Rent shall not constitute an
accord and
satisfaction of the full amount of the Rent that is due.
(c) CUMULATIVE REMEDIES. Any and all remedies set forth in this
Lease:
(1) shall be in addition to any and all other remedies Landlord
may have at law
or in equity, (2) shall be cumulative, and (3) may be pursued
successively or
concurrently as Landlord may elect. The exercise of any remedy
by Landlord shall
not be deemed an election of remedies or preclude Landlord from
exercising any
other remedies in the future. Additionally, Tenant shall defend,
indemnify and
hold harmless Landlord, Landlord's Mortgagee and their
respective
representatives and agents from and against all claims, demands,
liabilities,
causes of action, suits, judgments, damages and expenses
(including reasonable
attorneys' fees) arising from Tenant's failure to perform its
obligations under
this Lease.
21. INTENTIONALLY OMITTED.
22. SURRENDER OF PREMISES. No act by Landlord shall be deemed an
acceptance
of a surrender of the Premises, and no agreement to accept a
surrender of the
Premises shall be valid unless it is in writing and signed by
Landlord. At the
expiration or termination of this Lease, Tenant shall deliver to
Landlord the
Premises with all improvements located therein in good repair
and condition,
free of Hazardous Materials placed on the Premises during the
Term, broom-clean,
reasonable wear and tear (and condemnation and Casualty damage
not caused by
Tenant, as to which Sections 15 and 16 shall control) excepted,
and shall
deliver to Landlord all keys to the Premises. Provided that
Tenant has performed
all of its obligations hereunder, Tenant may remove all
unattached trade
fixtures, furniture, and personal property placed in the
Premises or elsewhere
in the Building by Tenant (but Tenant may not remove any such
item which was
paid for, in whole or in part, by Landlord or any wiring or
cabling unless
Landlord requires such removal). All alterations, additions or
improvements made
in or upon the Premises shall, at Landlord's option, (to be
exercised pursuant
to following sentence), either be removed by Tenant prior to the
end of the Term
(and Tenant shall repair all damage caused thereby), or shall
remain in the
Premises at the end of the Term without compensation to Tenant.
In connection
with Landlord's review and approval of any of Tenant's proposed
alterations,
additions or improvements to the Premises, Landlord may notify
Tenant in
writing, contemporaneously with Landlord's notice of approval to
Tenant with
respect to the improvements in question, that Landlord will
require Tenant to
remove such alterations prior to the expiration of the Term;
however, if Tenant
submits plans and specifications to Landlord for proposed
alterations, additions
or improvements to the Premises and delivers a Removal Notice
(defined below) to
Landlord contemporaneously with such submission by Tenant, and
Landlord fails to
notify Tenant that Tenant will be required to remove such
alterations, additions
or improvements to the Premises at the expiration of the Term,
Landlord may not
request such removal at the expiration of the Term. A "Removal
Notice" means a
written notice from Tenant to Landlord that conspicuously states
in bold,
uppercase typeface that Tenant will not be required to remove
the alterations,
additions or improvements in question at the end of the Term
unless,
contemporaneously with Landlord's notice of approval to Tenant
with respect to
the improvements in question, Landlord notifies Tenant in
writing that Landlord
will require Tenant to remove such alterations prior to the
expiration of the
Term. Notwithstanding the foregoing, if Tenant does not obtain
Landlord's prior
written consent for any alterations, additions or improvements
to the Premises
(whether such approval is required hereunder or otherwise),
Tenant shall, at
Landlord's written request, remove all such alterations,
additions,
improvements, trade fixtures, personal property, equipment,
wiring, conduits,
cabling, and furniture (including Tenant's Off-Premises
Equipment) as Landlord
may request; however, Tenant shall not be required to remove any
addition or
improvement to the Premises or the Project if Landlord has
specifically agreed
in writing that the improvement or addition in question need not
be removed.
Tenant shall repair all damage caused by such removal.
Notwithstanding the
foregoing, Landlord hereby acknowledges that Landlord will not
require the
removal or restoration of the improvements set forth on the
Space Plans attached
hereto as Exhibit D-1 at the expiration of the Term provided
Tenant has complied
with its maintenance and repair obligations under this Lease.
All items not so
removed shall, at Landlord's option, be deemed to have been
abandoned by Tenant
and may be appropriated, sold, stored, destroyed, or otherwise
disposed of by
Landlord without notice to Tenant and without any obligation to
account for such
items. The provisions of this Section 22 shall survive the end
of the Term.
23. HOLDING OVER. If Tenant fails to vacate the Premises at the
end of the
Term, then Tenant shall be a tenant at sufferance and, in
addition to all other
damages and remedies to which Landlord may be entitled for such
holding over,
(a) Tenant shall pay, in addition to the other Rent, Basic Rent
equal to 150% of
the Rent payable during the last month of the Term, and (b)
Tenant shall
otherwise continue to be subject to all of Tenant's
18
<PAGE>
obligations under this Lease. The provisions of this Section 23
shall not be
deemed to limit or constitute a waiver of any other rights or
remedies of
Landlord provided herein or at law. If Tenant fails to surrender
the Premises
within thirty (30) days after the termination or expiration of
this Lease, in
addition to any other liabilities to Landlord accruing
therefrom, Tenant shall
protect, defend, indemnify and hold Landlord harmless from all
loss, costs
(including reasonable attorneys' fees) and liability resulting
from such
failure, including any claims made by any succeeding tenant
founded upon such
failure to surrender, and any lost profits to Landlord resulting
therefrom.
24. CERTAIN RIGHTS RESERVED BY LANDLORD. Provided that the
exercise of such
rights does not unreasonably interfere with Tenant's occupancy
of the Premises,
Landlord shall have the following rights:
(a) BUILDING OPERATIONS. Upon twenty-four (24) hours prior
written or
verbal notice to Tenant's Office Manager at the Premises, and
with respect to
the performance of Landlord's obligations under this Lease, to
make inspections,
repairs, alterations, additions, changes, or improvements in and
about the
Project, or any part thereof, to enter upon the Premises (after
giving Tenant
reasonable notice thereof, which may be oral notice, except in
cases of real or
apparent emergency, in which case no notice shall be required)
and, during the
continuance of any such work, to temporarily close doors,
entryways, public
space, and corridors in the Building; and to interrupt or
temporarily suspend
Building services and facilities during Landlord's diligent
performance of its
obligations under this Lease provided Tenant shall be able to
access the
Building;
(b) SECURITY. To take such reasonable measures as Landlord
deems
advisable for the security of the Building and its occupants;
evacuating the
Building for cause, suspected cause, or for drill purposes;
temporarily denying
access to the Building; and closing the Building after normal
business hours and
on Sundays and holidays, subject, however, to Tenant's right to
enter when the
Building is closed after normal business hours under such
reasonable regulations
as Landlord may prescribe from time to time;
(c) PROSPECTIVE PURCHASERS AND LENDERS. Upon twenty-four (24)
hours
prior written or verbal notice to Tenant's Office Manager at the
Premises, to
enter the Premises at all reasonable hours to show the Premises
to prospective
purchasers or lenders; and
(d) PROSPECTIVE TENANTS. At any time during the last nine (9)
months
of the Term (or earlier if Tenant has notified Landlord in
writing that it does
not desire to renew the Term) or at any time following the
occurrence of an
Event of Default, and in each case upon twenty-four (24) hours
prior written or
verbal notice to Tenant's Office Manager at the Premises, to
enter the Premises
at all reasonable hours to show the Premises to prospective
tenants.
25. INTENTIONALLY OMITTED.
26. MISCELLANEOUS.
(a) LANDLORD TRANSFER. Landlord may transfer any portion of
the
Project and any of its rights under this Lease. If Landlord
assigns its rights
under this Lease, then Landlord shall thereby be released from
any further
obligations hereunder arising after the date of transfer,
provided that the
assignee assumes in writing Landlord's obligations hereunder
arising from and
after the transfer date.
(b) LANDLORD'S LIABILITY. The liability of Landlord (and its
partners,
shareholders or members) to Tenant (or any person or entity
claiming by, through
or under Tenant) for any default by Landlord under the terms of
this Lease or
any matter relating to or arising out of the occupancy or use of
the Premises
and/or other areas of the Building shall be limited to Tenant's
actual direct,
but not consequential, damages therefor and shall be recoverable
only from the
interest of Landlord in the Premises, net proceeds derived from
the sale
thereof, and, to the extent actually received by Landlord (thus
excluding
amounts paid to Landlord's Mortgagees), insurance proceeds and
condemnation
awards, and Landlord (and its partners, shareholders or members)
shall not be
personally liable for any deficiency.
(c) FORCE MAJEURE. Other than for Landlord's or Tenant's
obligations
under this Lease that can be performed by the payment of money
(e.g., payment of
Rent and maintenance of insurance), whenever a
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<PAGE>
period of time is herein prescribed for action to be taken by
either party
hereto, such party shall not be liable or responsible for, and
there shall be
excluded from the computation of any such period of time, any
delays due to
strikes, riots, acts of God, shortages of labor or materials,
war, terrorist
acts or activities, governmental laws, regulations, or
restrictions, or any
other causes of any kind whatsoever which are beyond the control
of such party.
(d) BROKERAGE. Neither Landlord nor Tenant has dealt with any
broker
or agent in connection with the negotiation or execution of this
Lease, other
than Cushman & Wakefield of Massachusetts, Inc. and Richards
Barry Joyce &
Partners, each of whose commission shall be paid by Landlord
pursuant to a
separate written agreement. Except as set forth in the
immediately preceding
sentence, Tenant and Landlord shall each indemnify the other
against all costs,
expenses, attorneys' fees, liens and other liability for
commissions or other
compensation claimed by any broker or agent claiming the same
by, through, or
under the indemnifying party.
(e) ESTOPPEL CERTIFICATES. From time to time, Tenant shall
furnish to
any party designated by Landlord, within fifteen (15) days after
Landlord has
made a written request therefor, a certificate signed by Tenant
confirming and
containing such factual certifications and representations as to
this Lease as
Landlord may reasonably request. Unless otherwise required by
Landlord's
Mortgagee or a prospective purchaser or mortgagee of the
Project, the initial
form of estoppel certificate to be signed by Tenant is attached
hereto as
Exhibit F. If Tenant does not deliver to Landlord the
certificate signed by
Tenant within such required time period, Landlord, Landlord's
Mortgagee and any
prospective purchaser or mortgagee, may conclusively presume and
rely upon the
following facts: (1) this Lease is in full force and effect: (2)
the terms and
provisions of this Lease have not been changed except as
otherwise represented
by Landlord: (3) not more than one monthly installment of Basic
Rent and other
charges have been paid in advance: (4) there are no claims
against Landlord nor
any defenses or rights of offset against collection of Rent or
other charges:
and (5) Landlord is not in default under this Lease. In such
event, Tenant shall
be estopped from denying the truth of the presumed facts.
(f) NOTICES. All notices and other communications given pursuant
to
this Lease shall be in writing and shall be (1) mailed by first
class, United
States Mail, postage prepaid, certified, with return receipt
requested, and
addressed to the parties hereto at the address specified in the
Basic Lease
Information, (2) hand delivered to the intended addressee, (3)
sent by a
nationally recognized overnight courier service, or (4) sent by
facsimile
transmission during normal business hours followed by a
confirmatory letter sent
in another manner permitted hereunder. All notices shall be
effective upon
delivery to the address of the addressee (even if such addressee
refuses
delivery thereof). The parties hereto may change their addresses
by giving
notice thereof to the other in conformity with this
provision.
(g) SEPARABILITY. If any clause or provision of this Lease is
illegal,
invalid, or unenforceable under present or future laws, then the
remainder of
this Lease shall not be affected thereby and in lieu of such
clause or
provision, there shall be added as a part of this Lease a clause
or provision as
similar in terms to such illegal, invalid, or unenforceable
clause or provision
as may be possible and be legal, val
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