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NEW ENGLAND EXECUTIVE PARK
BUILDING EIGHT
BURLINGTON, MASSACHUSETTS
OFFICE LEASE AGREEMENT
BETWEEN
MA-NEW ENGLAND EXECUTIVE PARK, L.L.C., A DELAWARE LIMITED
LIABILITY COMPANY
("LANDLORD")
AND
UTIX GROUP, INC., A DELAWARE CORPORATION
("TENANT")
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OFFICE LEASE AGREEMENT
THIS QFFICE LEASE AGREEMENT (The "LEASE") is made and entered
into as of
the 14 day of September, 2004, by and between MA-NEW ENGLAND
EXECUTIVE PARK,
L.L.C., A DELAWARE LIMITED LIABILITY COMPANY ("LANDLORD") and
UTIX GROUP, INC.,
A DELAWARE CORPORATION ("TENANT"). The following exhibits and
attachments are
incorporated into and made a part of the Lease: EXHIBIT A
(Outline and Location
of Premises), EXHIBIT B (Expenses and Taxes), EXHIBIT C (Work
Letter), EXHIBIT D
(Commencement Letter), EXHIBIT E (Building Rules and
Regulations), EXHIBIT F
(Additional Provisions) and EXHIBIT G (Commencement Date
Agreement [for
recording]).
1. BASIC LEASE INFORMATION.
1.01 "BUILDING" shall mean the building located at Eight New
England
Executive Park, Burlington, Massachusetts 01803, and
commonly
known as Eight New England Executive Park. "RENTABLE SQUARE
FOOTAGE OF THE BUILDING" is deemed to be 218,512 square
feet.
1.02 "PREMISES" shall mean the area shown on EXHIBIT A to this
Lease.
The Premises is located on the 1st floor and known as suite
140.
If the Premises include one or more floors in their
entirety,
all corridors and restroom facilities located on such full
floor(s) shall be considered part of the Premises. The
"RENTABLE
SQUARE FOOTAGE OF THE PREMISES" is deemed to be 3,911 square
feet. Landlord and Tenant stipulate and agree that the
Rentable
Square Footage of the Building and the Rentable Square
Footage
of the Premises are correct.
1.03 "BASE RENT":
MONTHS OF TERM ANNUAL RATE MONTHLY
PER SQUARE FOOT BASE RENT
-------------- --------------- ---------
Months 1 - 62 $18.00 $5,866.50
Notwithstanding anything in this Section of this Lease to
the
contrary, so long as Tenant is not in default under this
Lease,
Tenant shall be entitled to an abatement of Base Rent in the
amount of $5,866.50 per month for 2 consecutive full
calendar
months of the Term, beginning with the 1st full calendar
month
of the Term (the "BASE RENT ABATEMENT PERIOD"). The total
amount
of Base Rent abated during the Base Rent Abatement Period
shall
equal $11,733.00 (the "ABATED BASE RENT"). If Tenant defaults
at
any time during the Term and fails to cure such default
within
any applicable cure period under this Lease, all Abated Base
Rent shall immediately become due and payable. The payment
by
Tenant of the Abated Base Rent in the event of a default
shall
not limit or affect any of Landlord's other rights, pursuant
to
this Lease or at law or in equity. During the Base Rent
Abatement Period, only Base Rent shall be abated, and all
Additional Rent and other costs and charges specified in
this
Lease shall remain as due and payable pursuant to the
provisions
of this Lease.
1.04 "TENANT'S PRO RATA SHARE": 1.7898%.
1.05 "BASE YEAR" for Taxes (defined in EXHIBIT B): Fiscal
Year
(defined below) 2005 (e.g., July 1, 2004 to June 30, 2005);
"BASE YEAR" for Expenses (defined in EXHIBIT B): calendar
year
2004.
For purposes hereof, "FISCAL YEAR" shall mean the Base Year
for
Taxes and each period of July 1 to June 30 thereafter.
1.06 "TERM": A period of 62 months. Subject to Section 3, the
Term
shall commence on September 1, 2004 (the "COMMENCEMENT
DATE")
and, unless terminated early in accordance with this Lease,
end
on October 31, 2009 (the "TERMINATION DATE"). In addition,
if
Tenant is entitled to register or record a notice or
memorandum
of this Lease pursuant to the terms of Section 1.18,
Landlord
and Tenant shall also execute and Tenant may register or
record,
as appropriate, at Tenant's cost and expense, a Commencement
Date Agreement in the form attached as EXHIBIT G.
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1.07 Allowance(s): None.
1.08 "SECURITY DEPOSIT": $25,000.00, as more fully described
in
Section 6.
1.09 "LETTER OF CREDIT": None.
1.10 "GUARANTOR(S)": As of the date of this Lease, there are
no
Guarantors.
1.11 "BROKER(S)": Nagog Associates.
1.12 "PERMITTED USE": General office use.
1.13 "NOTICE ADDRESS(ES)":
Landlord: Tenant:
MA-New England Executive Park, L.L.C. UTIX Group, Inc.
c/o Equity Office 8 New England Executive Park
100 Summer Street Suite 140
Boston, Massachusetts 02110 Burlington, Massachusetts 01803
Attention: Property Manager
A copy of any notices to Landlord shall be sent to Equity
Office, Two North Riverside Plaza, Suite 2100, Chicago, IL
60606, Attn: Boston Regional Counsel.
A copy of any notices whereby Landlord is notifying Tenant of
a
Tenant default under the Lease, or notifying Tenant of, or
responding to Tenant with respect to, any option rights of
Tenant under the Lease (as opposed to routine notices
concerning
the operation of the Building) shall be sent to:
H. Scott Flegal, Esq.
Flegal Law Office
159 Main Street
Nashua, New Hampshire 03060
1.14 "BUSINESS DAY(S)" are Monday through Friday of each
week,
exclusive of New Year's Day, Presidents Day, Memorial Day,
Independence Day, Labor Day, Thanksgiving Day and Christmas
Day
("HOLIDAYS"). Landlord may designate additional Holidays
that
are commonly recognized by other office buildings in the
area
where the Building is located. "BUILDING SERVICE HOURS" are
8:00
A.M. to 6:00 P.M. on Business Days and 8:00 A.M. to 1:00 P.M.
on
Saturdays.
1.15 "LANDLORD WORK" means the work that Landlord is obligated
to
perform in the Premises pursuant to a separate agreement
(the
"WORK LETTER"), attached to this Lease as EXHIBIT C.
1.16 "PROPERTY" means the Building and the parcel(s) of land on
which
it is located and, at Landlord's discretion, the parking
facilities and other improvements, if any, serving the
Building
and the parcel(s) of land on which they are located.
1.17 Notwithstanding anything to the contrary contained in
Section 12
of the Lease, Landlord shall have the right to require Tenant
to
post a performance or payment bond in connection with any
work
or service done or purportedly done by or for the benefit of
Tenant. Tenant acknowledges and agrees that all such work or
service is being performed for the sole benefit of Tenant
and
not for the benefit of Landlord.
1.18 Tenant shall not record this Lease or any memorandum or
notice
without Landlord's prior written consent; provided, however,
Landlord agrees to consent to the recordation or registration
of
a memorandum or notice of this Lease, at Tenant's cost and
expense (and in a form reasonably satisfactory to Landlord),
if
the initial term of this Lease or the initial term plus
renewal
terms granted exceed, in the aggregate, 7 years. If this
Lease
is terminated before the Term expires, upon Landlord's
request
the parties shall execute, deliver and record an instrument
acknowledging the above and the date of the termination of
this
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Lease, and Tenant appoints Landlord its attorney-in-fact in
its
name and behalf to execute the instrument if Tenant shall
fail
to execute and deliver the instrument after Landlord's
request
therefor within 10 days.
2. LEASE GRANT.
The Premises are hereby leased to Tenant from Landlord, together
with
the right to use any portions of the Property that are
designated by Landlord
for the common use of tenants and others (the "COMMON
AREAS").
3. ADJUSTMENT OF COMMENCEMENT DATE; POSSESSION.
3.01 If Landlord is required to perform Landlord Work prior to
the
Commencement Date: (a) the date set forth in Section 1.06 as the
Commencement
Date shall instead be defined as the "TARGET COMMENCEMENT DATE";
(b) the actual
Commencement Date shall be the date on which the Landlord Work
is Substantially
Complete (defined below); and (c) the Termination Date will be
the last day of
the Term as determined based upon the actual Commencement Date.
Landlord's
failure to Substantially Complete the Landlord Work by the
Target Commencement
Date shall not be a default by Landlord or otherwise render
Landlord liable for
damages. Promptly after the determination of the Commencement
Date, Landlord and
Tenant shall enter into a commencement letter agreement in the
form attached as
EXHIBIT D. If the Termination Date does not fall on the last day
of a calendar
month, Landlord and Tenant may elect to adjust the Termination
Date to the last
day of the calendar month in which Termination Date occurs by
the mutual
execution of a commencement letter agreement setting forth such
adjusted date.
The Landlord Work shall be deemed to be "SUBSTANTIALLY COMPLETE"
on the date
that all Landlord Work has been performed, other than any
details of
construction, mechanical adjustment or any other similar matter,
the
non-completion of which does not materially interfere with
Tenant's use of the
Premises. If Landlord is delayed in the performance of the
Landlord Work as a
result of the acts or omissions of Tenant, the Tenant Related
Parties (defined
in Section 13) or their respective contractors or vendors,
including, without
limitation, changes requested by Tenant to approved plans,
Tenant's failure to
comply with any of its obligations under this Lease, or the
specification of any
materials or equipment with long lead times (a "TENANT DELAY"),
the Landlord
Work shall be deemed to be Substantially Complete on the date
that Landlord
could reasonably have been expected to Substantially Complete
the Landlord Work
absent any Tenant Delay.
3.02 Subject to Landlord's obligation, if any, to perform
Landlord Work,
the Premises are accepted by Tenant in "as is" condition and
configuration
without any representations or warranties by Landlord. By taking
possession of
the Premises, Tenant agrees that the Premises are in good order
and satisfactory
condition. Landlord shall not be liable for a failure to deliver
possession of
the Premises or any other space due to the holdover or unlawful
possession of
such space by another party, however Landlord shall use
reasonable efforts to
obtain possession of the space. The commencement date for the
space, in such
event, shall be postponed until the date Landlord delivers
possession of the
Premises to Tenant free from occupancy by any party. If Tenant
takes possession
of the Premises before the Commencement Date, such possession
shall be subject
to the terms and conditions of this Lease and Tenant shall pay
Rent (defined in
Section 4.01) to Landlord for each day of possession before the
Commencement
Date. However, except for the cost of services requested by
Tenant (e.g. freight
elevator usage), Tenant shall not be required to pay Rent for
any days of
possession before the Commencement Date during which Tenant,
with the approval
of Landlord, is in possession of the Premises for the sole
purpose of performing
improvements or installing furniture, equipment or other
personal property.
3.03 Notwithstanding anything to the contrary contained herein,
Landlord
and Tenant acknowledge and agree that the Premises shall be
tendered to Tenant
with certain furniture and equipment (the "FURNITURE") of the
prior tenant
remaining in the Premises. Although Landlord shall permit Tenant
to utilize or
remove the Furniture, Landlord makes no representation or
warranty as to the
ownership of the Furniture and Tenant shall utilize and/or
dispose of the
Furniture at Tenant's sole risk. Tenant agrees to remove the
Furniture from the
Premises on the earlier to occur of the Termination Date or the
termination of
this Lease or Tenant's right to possession thereunder, at
Tenant's sole cost and
expense, and to bear the costs of any repairs or restoration to
the Premises
necessitated by such removal, provided that if Tenant leaves any
Furniture in
the Premises, Landlord shall have the right to remove and
dispose of the
Furniture and Tenant shall reimburse Landlord for the cost of
such removal and
disposal and any repairs or restoration to the Premises
necessitated by such
removal and disposal. Tenant shall indemnify, defend and hold
Landlord harmless
from and against any
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and all claims, liabilities, damages or actions brought against
or incurred by
Landlord by any parties claiming to have any interest in the
Furniture.
4. RENT.
4.01 Tenant shall pay Landlord, without any setoff or deduction,
unless
expressly set forth in this Lease, all Base Rent and Additional
Rent due for the
Term (collectively referred to as "RENT"). "ADDITIONAL RENT"
means all sums
(exclusive of Base Rent) that Tenant is required to pay Landlord
under this
Lease. Tenant shall pay and be liable for all rental, sales and
use taxes (but
excluding income taxes), if any, imposed upon or measured by
Rent. Base Rent and
recurring monthly charges of Additional Rent shall be due and
payable in advance
on the first day of each calendar month without notice or
demand, provided that
the installment of Base Rent for the 3rd full calendar month of
the Term, and
the first monthly installment of Additional Rent for Expenses
and Taxes, shall
be payable upon the execution of this Lease by Tenant. All other
items of Rent
shall be due and payable by Tenant on or before 30 days after
billing by
Landlord. Rent shall be made payable to the entity, and sent to
the address,
Landlord designates and shall be made by good and sufficient
check or by other
means acceptable to Landlord. Tenant shall pay Landlord an
administration fee
equal to 5% of all past due Rent, provided that Tenant shall be
entitled to a
grace period of 5 days for the first 2 late payments of Rent in
a calendar year.
In addition, past due Rent shall accrue interest at 12% per
annum. Landlord's
acceptance of less than the correct amount of Rent shall be
considered a payment
on account of the earliest Rent due. Rent for any partial month
during the Term
shall be prorated. No endorsement or statement on a check or
letter accompanying
payment shall be considered an accord and satisfaction. Tenant's
covenant to pay
Rent is independent of every other covenant in this Lease.
4.02 Tenant shall pay Tenant's Pro Rata Share of Taxes and
Expenses in
accordance with EXHIBIT B of this Lease.
5. COMPLIANCE WITH LAWS; USE.
The Premises shall be used for the Permitted Use and for no
other use
whatsoever. Tenant shall comply with all statutes, codes,
ordinances, orders,
rules and regulations of any municipal or governmental entity
whether in effect
now or later, including the Americans with Disabilities Act
("LAW(S)"),
regarding the operation of Tenant's business and the use,
condition,
configuration and occupancy of the Premises. In addition, Tenant
shall, at its
sole cost and expense, promptly comply with any Laws that relate
to the "Base
Building" (defined below), but only to the extent such
obligations are triggered
by Tenant's use of the Premises, other than for general office
use, or
Alterations or improvements in the Premises performed or
requested by Tenant.
"BASE BUILDING" shall include the structural portions of the
Building, the
public restrooms and the Building mechanical, electrical and
plumbing systems
and equipment located in the internal core of the Building on
the floor or
floors on which the Premises are located. Tenant shall promptly
provide Landlord
with copies of any notices it receives regarding an alleged
violation of Law.
Tenant shall comply with the rules and regulations of the
Building attached as
EXHIBIT E and such other reasonable rules and regulations
adopted by Landlord
from time to time, including rules and regulations for the
performance of
Alterations (defined in Section 9).
6. SECURITY DEPOSIT.
The Security Deposit, if any, shall be delivered to Landlord
upon the
execution of this Lease by Tenant and held by Landlord without
liability for
interest (unless required by Law) as security for the
performance of Tenant's
obligations. The Security Deposit is not an advance payment of
Rent or a measure
of damages. Landlord may use all or a portion of the Security
Deposit to satisfy
past due Rent or to cure any Default (defined in Section 18) by
Tenant. If
Landlord uses any portion of the Security Deposit, Tenant shall,
within 5 days
after demand, restore the Security Deposit to its original
amount. Landlord
shall return any unapplied portion of the Security Deposit to
Tenant within 45
days after the later to occur of: (a) determination of the final
Rent due from
Tenant; or (b) the later to occur of the Termination Date or the
date Tenant
surrenders the Premises to Landlord in compliance with Section
25. Landlord may
assign the Security Deposit to a successor or transferee and,
following the
assignment, Landlord shall have no further liability for the
return of the
Security Deposit. Landlord shall not be required to keep the
Security Deposit
separate from its other accounts.
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7. BUILDING SERVICES.
7.01 Landlord shall furnish Tenant with the following services:
(a)
water for use in the Base Building lavatories; (b) customary
heat and air
conditioning in season during Building Service Hours. Tenant
shall have the
right to receive HVAC service during hours other than Building
Service Hours by
paying Landlord's then standard charge for additional HVAC
service and providing
such prior notice as is reasonably specified by Landlord; (c)
standard
janitorial service on Business Days; (d) Elevator service; (e)
Electricity in
accordance with the terms and conditions in Section 7.02; and
(f) such other
services as Landlord reasonably determines are necessary or
appropriate for the
Property.
7.02 Electricity used by Tenant in the Premises shall, at
Landlord's
option, be paid for by Tenant either: (a) through inclusion in
Expenses (except
as provided for excess usage); (b) by a separate charge payable
by Tenant to
Landlord; or (c) by separate charge billed by the applicable
utility company and
payable directly by Tenant. Without the consent of Landlord,
Tenant's use of
electrical service shall not exceed, either in voltage, rated
capacity, use
beyond Building Service Hours or overall load, that which
Landlord reasonably
deems to be standard for the Building. Landlord shall have the
right to measure
electrical usage by commonly accepted methods. If it is
determined that Tenant
is using excess electricity, Tenant shall pay Landlord for the
cost of such
excess electrical usage as Additional Rent.
7.03 Landlord's failure to furnish, or any interruption,
diminishment or
termination of services due to the application of Laws, the
failure of any
equipment, the performance of repairs, improvements or
alterations, utility
interruptions or the occurrence of an event of Force Majeure
(defined in Section
26.03) (collectively a "SERVICE FAILURE") shall not render
Landlord liable to
Tenant, constitute a constructive eviction of Tenant, give rise
to an abatement
of Rent, nor relieve Tenant from the obligation to fulfill any
covenant or
agreement. However, if the Premises, or a material portion of
the Premises, are
made untenantable for a period in excess of 3 consecutive
Business Days as a
result of a Service Failure that is reasonably within the
control of Landlord to
correct, then Tenant, as its sole remedy, shall be entitled to
receive an
abatement of Rent payable hereunder during the period beginning
on the 4th
consecutive Business Day of the Service Failure and ending on
the day the
service has been restored. If the entire Premises have not been
rendered
untenantable by the Service Failure, the amount of abatement
shall be equitably
prorated.
8. LEASEHOLD IMPROVEMENTS.
All improvements in and to the Premises, including any
Alterations
(collectively, "LEASEHOLD IMPROVEMENTS") shall remain upon the
Premises at the
end of the Term without compensation to Tenant. Landlord,
however, by written
notice to Tenant at least 30 days prior to the Termination Date,
may require
Tenant, at its expense, to remove (a) any Cable (defined in
Section 9.01)
installed by or for the benefit of Tenant, and (b) any Landlord
Work or
Alterations that, in Landlord's reasonable judgment, are of a
nature that would
require removal and repair costs that are materially in excess
of the removal
and repair costs associated with standard office improvements
(collectively
referred to as "REQUIRED REMOVABLES"). Required Removables shall
include,
without limitation, internal stairways, raised floors, personal
baths and
showers, vaults, rolling file systems and structural alterations
and
modifications. The designated Required Removables shall be
removed by Tenant
before the Termination Date. Tenant shall repair damage caused
by the
installation or removal of Required Removables. If Tenant fails
to perform its
obligations in a timely manner, Landlord may perform such work
at Tenant's
expense. Tenant, at the time it requests approval for a proposed
Alteration, may
request in writing that Landlord advise Tenant whether the
Alteration or any
portion of the Alteration is a Required Removable. Within 10
days after receipt
of Tenant's request, Landlord shall advise Tenant in writing as
to which
portions of the Alteration are Required Removables.
9. REPAIRS AND ALTERATIONS.
9.01 Tenant shall periodically inspect the Premises to identify
any
conditions that are dangerous or in need of maintenance or
repair. Tenant shall
promptly provide Landlord with notice of any such conditions.
Tenant shall, at
its sole cost and expense, perform all maintenance and repairs
to the Premises
that are not Landlord's express responsibility under this Lease,
and keep the
Premises in good condition and repair, reasonable wear and tear
excepted.
Tenant's repair and maintenance obligations include, without
limitation, repairs
to: (a) floor covering; (b) interior partitions; (c) doors; (d)
the interior
side of demising walls; (e) electronic, phone and data cabling
and related
equipment that is installed by or for the exclusive benefit of
Tenant
(collectively, "CABLE"); (f) supplemental air conditioning
units, kitchens,
including hot water heaters, plumbing, and similar facilities
exclusively
serving Tenant;
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and (g) Alterations. To the extent Landlord is not reimbursed by
insurance
proceeds, Tenant shall reimburse Landlord for the cost of
repairing damage to
the Building caused by the acts of Tenant, Tenant Related
Parties and their
respective contractors and vendors. If Tenant fails to make any
repairs to the
Premises for more than 15 days after notice from Landlord
(although notice shall
not be required in an emergency), Landlord may make the repairs,
and Tenant
shall pay the reasonable cost of the repairs, together with an
administrative
charge in an amount equal to 10% of the cost of the repairs.
9.02 Landlord shall keep and maintain in good repair and working
order
and perform maintenance upon the: (a) structural elements of the
Building; (b)
mechanical (including HVAC), electrical, plumbing and fire/life
safety systems
serving the Building in general; (c) Common Areas; (d) roof of
the Building; (e)
exterior windows of the Building; and (f) elevators serving the
Building.
Landlord shall promptly make repairs for which Landlord is
responsible.
9.03 Tenant shall not make alterations, repairs, additions
or
improvements or install any Cable (collectively referred to as
"ALTERATIONS")
without first obtaining the written consent of Landlord in each
instance, which
consent shall not be unreasonably withheld or delayed. However,
Landlord's
consent shall not be required for any Alteration that satisfies
all of the
following criteria (a "COSMETIC ALTERATION"): (a) is of a
cosmetic nature such
as painting, wallpapering, hanging pictures and installing
carpeting; (b) is not
visible from the exterior of the Premises or Building; (c) will
not affect the
Base Building; and (d) does not require work to be performed
inside the walls or
above the ceiling of the Premises. Cosmetic Alterations shall be
subject to all
the other provisions of this Section 9.03. Prior to starting
work, Tenant shall
furnish Landlord with plans and specifications; names of
contractors reasonably
acceptable to Landlord (provided that Landlord may designate
specific
contractors with respect to Base Building); required permits and
approvals;
evidence of contractor's and subcontractor's insurance in
amounts reasonably
required by Landlord and naming Landlord as an additional
insured; and any
security for performance in amounts reasonably required by
Landlord. Changes to
the plans and specifications must also be submitted to Landlord
for its
approval. Alterations shall be constructed in a good and
workmanlike manner
using materials of a quality reasonably approved by Landlord.
Tenant shall
reimburse Landlord for any sums paid by Landlord for third party
examination of
Tenant's plans for non-Cosmetic Alterations. In addition, Tenant
shall pay
Landlord a fee for Landlord's oversight and coordination of any
non-Cosmetic
Alterations equal to 10% of the cost of the Alterations. Upon
completion, Tenant
shall furnish "as-built" plans for non-Cosmetic Alterations,
completion
affidavits and full and final waivers of lien. Landlord's
approval of an
Alteration shall not be deemed a representation by Landlord that
the Alteration
complies with Law.
10. ENTRY BY LANDLORD.
Landlord may enter the Premises to inspect, show or clean the
Premises
or to perform or facilitate the performance of repairs,
alterations or additions
to the Premises or any portion of the Building. Except in
emergencies or to
provide Building services, Landlord shall provide Tenant with
reasonable prior
verbal notice of entry and shall use reasonable efforts to
minimize any
interference with Tenant's use of the Premises. If reasonably
necessary,
Landlord may temporarily close all or a portion of the Premises
to perform
repairs, alterations and additions. However, except in
emergencies, Landlord
will not close the Premises if the work can reasonably be
completed on weekends
and after Building Service Hours. Entry by Landlord shall not
constitute a
constructive eviction or entitle Tenant to an abatement or
reduction of Rent.
11. ASSIGNMENT AND SUBLETTING.
11.01 Except in connection with a Permitted Transfer (defined in
Section
11.04), Tenant shall not assign, sublease, transfer or encumber
any interest in
this Lease or allow any third party to use any portion of the
Premises
(collectively or individually, a "TRANSFER") without the prior
written consent
of Landlord, which consent shall not be unreasonably withheld,
conditioned or
delayed if Landlord does not exercise its recapture rights under
Section 11.02.
If the entity which controls the voting shares/rights of Tenant
changes at any
time, such change of ownership or control shall constitute a
Transfer unless
Tenant is an entity whose outstanding stock is listed on a
recognized securities
exchange or if at least 80% of its voting stock is owned by
another entity, the
voting stock of which is so listed. Any attempted Transfer in
violation of this
Section is voidable by Landlord. In no event shall any Transfer,
including a
Permitted Transfer, release or relieve Tenant from any
obligation under this
Lease.
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11.02 Tenant shall provide Landlord with financial statements
for the
proposed transferee, a fully executed copy of the proposed
assignment, sublease
or other Transfer documentation and such other information as
Landlord may
reasonably request. Within 15 Business Days after receipt of the
required
information and documentation, Landlord shall either: (a)
consent to the
Transfer by execution of a consent agreement in a form
reasonably designated by
Landlord; (b) reasonably refuse to consent to the Transfer in
writing; or (c) in
the event of an assignment of this Lease or subletting of more
than 20% of the
Rentable Area of the Premises for more than 50% of the remaining
Term (excluding
unexercised options), recapture the portion of the Premises that
Tenant is
proposing to Transfer. If Landlord exercises its right to
recapture, this Lease
shall automatically be amended (or terminated if the entire
Premises is being
assigned or sublet) to delete the applicable portion of the
Premises effective
on the proposed effective date of the Transfer. Tenant shall pay
Landlord a
review fee of $1,500.00 for Landlord's review of any Permitted
Transfer or
requested Transfer.
11.03 Tenant shall pay Landlord 50% of all rent and other
consideration
which Tenant receives as a result of a Transfer that is in
excess of the Rent
payable to Landlord for the portion of the Premises and Term
covered by the
Transfer. Tenant shall pay Landlord for Landlord's share of the
excess within 30
days after Tenant's receipt of the excess. Tenant may deduct
from the excess, on
a straight-line basis, all reasonable and customary expenses
directly incurred
by Tenant attributable to the Transfer. If Tenant is in Default,
Landlord may
require that all sublease payments be made directly to Landlord,
in which case
Tenant shall receive a credit against Rent in the amount of
Tenant's share of
payments received by Landlord.
11.04 Tenant may assign this Lease to a successor to Tenant by
purchase,
merger, consolidation or reorganization (an "OWNERSHIP CHANGE")
or assign this
Lease or sublet all or a portion of the Premises to an Affiliate
without the
consent of Landlord, provided that all of the following
conditions are satisfied
(a "PERMITTED TRANSFER"): (a) Tenant is not in Default; (b) in
the event of an
Ownership Change, Tenant's successor shall own substantially all
of the assets
of Tenant and have a net worth which is at least equal to
Tenant's net worth as
of the day prior to the proposed Ownership Change; (c) the
Permitted Use does
not allow the Premises to be used for retail purposes; and (d)
Tenant shall give
Landlord written notice at least 15 Business Days prior to the
effective date of
the Permitted Transfer. Tenant's notice to Landlord shall
include information
and documentation evidencing the Permitted Transfer and showing
that each of the
above conditions has been satisfied. If requested by Landlord,
Tenant's
successor shall sign a commercially reasonable form of
assumption agreement.
"AFFILIATE" shall mean an entity controlled by, controlling or
under common
control with Tenant.
12. LIENS.
Tenant shall not permit mechanics' or other liens to be placed
upon the
Property, Premises or Tenant's leasehold interest in connection
with any work or
service done or purportedly done by or for the benefit of Tenant
or its
transferees. Tenant shall give Landlord notice at least 15 days
prior to the
commencement of any work in the Premises to afford Landlord the
opportunity,
where applicable, to post and record notices of
non-responsibility. Tenant,
within 10 days of notice from Landlord, shall fully discharge
any lien by
settlement, by bonding or by insuring over the lien in the
manner prescribed by
the applicable lien Law. If Tenant fails to do so, Landlord may
bond, insure
over or otherwise discharge the lien. Tenant shall reimburse
Landlord for any
amount paid by Landlord, including, without limitation,
reasonable attorneys'
fees.
13. INDEMNITY AND WAIVER OF CLAIMS.
Tenant hereby waives all claims against and releases Landlord
and its
trustees, members, principals, beneficiaries, partners,
officers, directors,
employees, Mortgagees (defined in Section 23) and agents (the
"LANDLORD RELATED
PARTIES") from all claims for any injury to or death of persons,
damage to
property or business loss in any manner related to (a) Force
Majeure, (b) acts
of third parties, (c) the bursting or leaking of any tank, water
closet, drain
or other pipe, (d) the inadequacy or failure of any security
services, personnel
or equipment, or (e) any matter not within the reasonable
control of Landlord.
Except to the extent caused by the negligence or willful
misconduct of Landlord
or any Landlord Related Parties, Tenant shall indemnify, defend
and hold
Landlord and Landlord Related Parties harmless against and from
all liabilities,
obligations, damages, penalties, claims, actions, costs, charges
and expenses,
including, without limitation, reasonable attorneys' fees and
other professional
fees (if and to the extent permitted by Law) (collectively
referred to as
"LOSSES"), which may be imposed upon, incurred by or asserted
against Landlord
or any of the Landlord Related Parties by any third party and
arising out of or
in connection with any damage or injury occurring in the
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Premises or any acts or omissions (including violations of Law)
of Tenant, the
Tenant Related Parties or any of Tenant's transferees,
contractors or licensees.
Except to the extent caused by the negligence or willful
misconduct of Tenant or
any Tenant Related Parties, Landlord shall indemnify, defend and
hold Tenant,
its trustees, members, principals, beneficiaries, partners,
officers, directors,
employees and agents ("TENANT RELATED PARTIES") harmless against
and from all
Losses which may be imposed upon, incurred by or asserted
against Tenant or any
of the Tenant Related Parties by any third party and arising out
of or in
connection with the acts or omissions (including violations of
Law) of Landlord
or the Landlord Related Parties.
14. INSURANCE.
Tenant shall maintain the following insurance ("TENANT'S
INSURANCE"):
(a) Commercial General Liability Insurance applicable to the
Premises and its
appurtenances providing, on an occurrence basis, a minimum
combined single limit
of $2,000,000.00; (b) Property/Business Interruption Insurance
written on an All
Risk or Special Perils form, with coverage for broad form water
damage including
earthquake sprinkler leakage, at replacement cost value and with
a replacement
cost endorsement covering all of Tenant's business and trade
fixtures,
equipment, movable partitions, furniture, merchandise and other
personal
property within the Premises ("TENANT'S PROPERTY") and any
Leasehold
Improvements performed by or for the benefit of Tenant; (c)
Workers'
Compensation Insurance in amounts required by Law; and (d)
Employers Liability
Coverage of at least $1,000,000.00 per occurrence. Any company
writing Tenant's
Insurance shall have an A.M. Best rating of not less than
A-VIII. All Commercial
General Liability Insurance policies shall name as additional
insureds Landlord
(or its successors and assignees), the managing agent for the
Building (or any
successor), EOP Operating Limited Partnership, Equity Office
Properties Trust
and their respective members, principals, beneficiaries,
partners, officers,
directors, employees, and agents, and other designees of
Landlord and its
successors as the interest of such designees shall appear. All
policies of
Tenant's Insurance shall contain endorsements that the
insurer(s) shall give
Landlord and its designees at least 30 days' advance written
notice of any
cancellation, termination, material change or lapse of
insurance. Tenant shall
provide Landlord with a certificate of insurance evidencing
Tenant's Insurance
prior to the earlier to occur of the Commencement Date or the
date Tenant is
provided with possession of the Premises, and thereafter as
necessary to assure
that Landlord always has current certificates evidencing
Tenant's Insurance. So
long as the same is available at commercially reasonable rates,
Landlord shall
maintain so called All Risk property insurance on the Building
at replacement
cost value as reasonably estimated by Landlord.
15. SUBROGATION.
Landlord and Tenant hereby waive and shall cause their
respective
insurance carriers to waive any and all rights of recovery,
claims, actions or
causes of action against the other for any loss or damage with
respect to
Tenant's Property, Leasehold Improvements, the Building, the
Premises, or any
contents thereof, including rights, claims, actions and causes
of action based
on negligence, which loss or damage is (or would have been, had
the insurance
required by this Lease been carried) covered by insurance.
16. CASUALTY DAMAGE.
16.01 If all or any portion of the Premises becomes untenantable
by fire
or other casualty to the Premises (collectively a "CASUALTY"),
Landlord, with
reasonable promptness, shall cause a general contractor selected
by Landlord to
provide Landlord and Tenant with a written estimate of the
amount of time
required using standard working methods to Substantially
Complete the repair and
restoration of the premises and any common areas necessary TO
provide access to
the Premises ("COMPLETION ESTIMATE"). If the Completion Estimate
indicates that
the Premises or any Common Areas necessary to provide access to
the Premises
cannot be made tenantable within 210 days from the date the
repair is started,
then either party shall have the right to terminate this Lease
upon written
notice to the other within 10 days after receipt of the
Completion Estimate.
Tenant, however, shall not have the right to terminate this
Lease if the
Casualty was caused by the negligence or intentional misconduct
of Tenant or any
Tenant Related Parties. In addition, Landlord, by notice to
Tenant within 90
days after the date of the Casualty, shall have the right to
terminate this
Lease if: (1) the Premises have been materially damaged and
there is less than 2
years of the Term remaining on the date of the Casualty; (2) any
Mortgagee
requires that the insurance proceeds be applied to the payment
of the mortgage
debt; or (3) a material uninsured loss to the Building
occurs.
16.02 If this Lease is not terminated, Landlord shall promptly
and
diligently, subject to reasonable delays for insurance
adjustment or other
matters beyond Landlord's reasonable
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control, restore the Premises and Common Areas. Such restoration
shall be to
substantially the same condition that existed prior to the
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