Exhibit 10.35
COPLEY PLACE
BOSTON, MASSACHUSETTS
OFFICE LEASE
to
INVESTORS BANK & TRUST
COMPANY
FROM THE OFFICE OF:
Goulston & Storrs,
P.C.
400 Atlantic Avenue
Boston, Massachusetts
02110-3333
OFFICE LEASE
COPLEY PLACE
BOSTON, MASSACHUSETTS
TABLE OF CONTENTS
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PAGE
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1.
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BASIC DATA
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1
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2.
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HABENDUM; TERM
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4
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3.
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POSSESSION
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4
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4.
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BASE RENT
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6
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5.
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ADDITIONAL RENT
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7
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A.
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Definitions
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7
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Base Year
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7
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Base Year Operating
Expenses
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7
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Calendar Year
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7
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Tenant’s Proportionate
Share
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7
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Taxes
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8
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Operating Expenses
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8
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B.
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Expense Adjustment
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13
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C.
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Adjustment for Services Not Rendered
by Landlord
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14
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6.
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USE OF PREMISES
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15
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7.
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CONDITION OF PREMISES
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15
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8
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SERVICES
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16
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A.
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List of Services
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16
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B.
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Billing for Electricity
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18
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C.
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Interruption of Services
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18
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D.
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Charges for Services
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19
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E.
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Energy Conservation
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20
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9.
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REPAIRS; HAZARDOUS
MATERIALS
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20
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10.
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ADDITIONS AND ALTERATIONS
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22
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11.
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COVENANT AGAINST LIENS
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27
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12.
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INSURANCE
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27
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A.
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Waiver of Subrogation
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27
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B.
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Coverage
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28
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C.
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Avoid Action Increasing
Rates
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29
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13.
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FIRE OR CASUALTY
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29
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14.
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WAIVER OF CLAIMS -
INDEMNIFICATION
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35
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15.
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NONWAIVER
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36
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16.
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CONDEMNATION
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36
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17.
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ASSIGNMENT AND SUBLETTING
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37
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18.
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SURRENDER OF POSSESSION
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39
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19.
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HOLDING OVER
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40
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20.
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ESTOPPEL CERTIFICATE
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41
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21.
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SUBORDINATION
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42
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22.
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CERTAIN RIGHTS RESERVED BY
LANDLORD
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44
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23.
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RULES AND
REGULATIONS
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46
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24.
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LANDLORD’S REMEDIES
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47
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25.
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EXPENSES OF ENFORCEMENT
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51
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26.
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COVENANT OF QUIET
ENJOYMENT
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51
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27.
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INTENTIONALLY OMITTED
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51
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28.
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REAL ESTATE BROKER
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51
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29.
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UNDERLYING LEASES
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52
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30.
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NOTICE TO MORTGAGEE AND GROUND
LESSOR
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53
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31.
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ASSIGNMENT OF RENTS
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53
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32.
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PERSONAL PROPERTY TAXES
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55
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33.
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MISCELLANEOUS
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55
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A.
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Rights Cumulative
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55
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B.
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Interest
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55
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C.
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Terms
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55
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D.
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Binding Effect
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55
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E.
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Lease Contains All Terms
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56
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F.
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Delivery for Examination
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56
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G.
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No Air Rights
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56
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H.
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Kitchen Equipment
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56
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I.
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Intentionally Omitted
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56
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J.
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Transfer of Landlord’s
Interest
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56
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K.
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Landlord’s Title
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57
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L.
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Prohibition Against
Recording
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57
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M.
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Captions
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57
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N.
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Covenants and Conditions
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57
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O.
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Only Landlord/Tenant
Relationship
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57
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P.
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Application of Payments
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58
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ii
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Q.
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Definition of Landlord
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58
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R.
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Time of Essence
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58
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S.
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Governing Law
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58
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T.
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Partial Invalidity
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58
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U.
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Size of Premises
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58
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34.
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NOTICES
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58
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35.
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LIMITATION ON LANDLORD’S
LIABILITY
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60
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36.
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LANDLORD’S DESIGNATED
AGENT
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60
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37.
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PARKING
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61
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38.
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SIGNAGE
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61
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39.
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CONSTRUCTION ALLOWANCE
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61
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40.
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EXTENSION OPTION
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62
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41.
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EXPANSION OPTION; RIGHT OF FIRST
OFFER
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64
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42.
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SATELLITE DISH; GENERATOR
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71
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43.
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COMPETITIVE USES
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72
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Exhibit A-1
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Plan of Area A
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Exhibit A-2
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Plan of Area B
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Exhibit B
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Work Letter
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Exhibit C
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Rules and
Regulations
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Exhibit D
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Cleaning Specifications
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Exhibit E
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Expansion Space
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iii
OFFICE LEASE
COPLEY PLACE
BOSTON, MASSACHUSETTS
THIS INSTRUMENT is an Agreement of
Lease in which the Landlord and the Tenant are the parties
hereinafter named, and which relates to space in the Office
Section of Copley Place (hereinafter referred to as the
“Office Section”) located at 100 Huntington Avenue,
Boston, Suffolk County, Massachusetts (the project known as Copley
Place, including without limitation the hotel portions thereof,
plazas, pedestrian bridges, service areas and all other common
areas, together with all present and future easements, additions,
improvements, air rights and other rights appurtenant thereto, is
hereinafter referred to as the “Property”), subject to
the covenants, terms, provisions and conditions of this Lease. The
“Office Section” means that portion of the building
(the “Building”) located at the aforesaid address
consisting of seven (7) levels of office area containing
approximately 845,000 square feet of rentable floor area. The
Building also contains retail shopping, restaurant, parking and
other facilities, which are not included within the Office Section.
The Building does not, however, include the hotel or residential
portions of the Property or the pedestrian bridges.
In consideration thereof, Landlord
and Tenant covenant and agree as follows:
1.
BASIC DATA
.
The following sets forth basic data
and, where appropriate, constitutes definitions of the terms
hereinafter listed.
1
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Date:
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August 2, 1999
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Landlord:
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COPLEY PLACE ASSOCIATES,
LLC,
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a Delaware limited liability
company
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Present Mailing Address of
Landlord:
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c/o Overseas
Management, Inc.
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Two Copley Place,
Suite 100
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Boston, Massachusetts
02116-6502
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Tenant:
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INVESTORS BANK & TRUST
COMPANY,
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a Massachusetts trust
company
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Present Mailing Address of
Tenant:
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John Hancock Tower
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200 Clarendon Street
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Boston, Massachusetts
02116
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Area A Commencement Date:
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Subject to Paragraph 3 hereof,
January 1, 2000.
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Area B Commencement Date:
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Subject to Paragraph 3 hereof,
January 1, 2000.
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Area A Rent
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Ninety (90) days after the
Commencement Date:
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Area A Commencement Date.
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Area B Rent
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Ninety (90) days after the
Commencement Date:
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Area B Commencement Date.
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Termination Date:
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October 30, 2007, unless sooner
terminated as provided in this Lease.
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Base Rent:
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Replaced per 2 nd
Amendment
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2
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Base Year:
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Replaced in 2 nd
Amendment
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Base Year Operating
Expenses:
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Replaced in 2 nd
Amendment
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Tenant’s Proportionate
Share:
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Replaced per 2 nd
Amendment
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Use:
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General office purposes.
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Premises:
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Replaced per 2 nd
Amendment
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3
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Common Areas:
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Those portions of the Property not
leased to any tenant, but for the benefit of the Property and its
tenants, such as landscaped areas, malls, pedestrian walkways,
escalators, elevators, stairwells and bridges, restrooms, service
areas and the like.
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Guarantor of Tenant’s
Obligations:
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None.
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Security Deposit:
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None.
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Broker:
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CB Richard Ellis-N.E. Partners, L.P.
doing business in Massachusetts as CB Richard Ellis-N.E. Partners
Limited Partnership and Insignia/ESG, Incorporated.
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2.
HABENDUM; TERM
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To have and to hold the Premises for
the term commencing on the Area A Commencement Date and ending on
the Termination Date, and the right to use the Common Areas during
such term in common with others entitled thereto. The Term of this
Lease (hereinafter referred to as the “Term”) shall
commence on the Area A Commencement Date specified in Paragraph 1
hereof and end on the Termination Date, specified in Paragraph 1
hereof unless sooner terminated as provided herein.
3.
POSSESSION
.
A.
In the event Landlord is unable to
deliver possession of Area A on the date originally designated as
the Area A Commencement Date or of Area B on the date originally
designated as the Area B Commencement Date on the applicable
commencement date by reason of the holding over or retention of
possession by any tenant or occupant, or for any other reason, this
Lease shall nevertheless continue in force and effect, but the Area
A Commencement Date and/or the Area B Commencement Date, as the
case may be, shall be correspondingly deferred until Landlord can
so deliver
4
Area A and/or Area B. The obligation
of Tenant to begin paying Rent for Area A shall commence on the
Area A Rent Commencement Date and for Area B shall be on the Area B
Rent Commencement Date. In the event Area A or Area B will not be
delivered in the condition required hereunder on the date initially
designated as the Area A Commencement Date or the Area B
Commencement Date, respectively, Landlord shall give Tenant at
least five (5) business days’ advance written notice of
the date on which Landlord expects the deferred Area A Commencement
Date and/or Area B Commencement Date will occur. In the event the
Area A Commencement Date has not occurred by January 15, 2000,
Landlord shall pay to Tenant fifty percent (50%) of any holdover
rent paid by the current tenant with respect to the period
January 16, 2000 through the day immediately preceding the
Area A Commencement Date, in excess of the Base Rent and Additional
Rent payable at the rate paid in the final month of the Term then
expired; and in the event the Area A Commencement Date has not
occurred by February 15, 2000, Tenant may, by notice to the
Landlord given no later than February 20, 2000, terminate this
Lease and in such event all obligations of the Landlord to the
Tenant and the Tenant to the Landlord with respect to this Lease
shall be of no further force or effect. Furthermore, in the event
the Area B Commencement Date has not occurred by January 15,
2000, Landlord shall pay to Tenant fifty percent (50%) of any
holdover rent paid by the current tenant with respect to the period
January 16, 2000 through the day immediately preceding the
Area B Commencement Date, in excess of the Base Rent and Additional
Rent payable at the rate paid in the final month of the Term then
expired; and in the event the Area B Commencement Date has not
occurred by February 15, 2000, Tenant may, by notice to the
Landlord given no later than February 20, 2000, terminate this
Lease as to Area B and in such event, the Base Rent shall not
increase by reason of the addition of Area B and Tenant’s
proportionate share of Operating Expenses shall not increase by
reason of the addition of Area B, and all obligations of the
Landlord to the Tenant and the Tenant to the Landlord with respect
to Area B shall be of no further force or effect.
5
B.
If the current lease of the Tenant
of Area A and/or Area B terminates prior to the Commencement Date
originally designated herein for such Area, Tenant shall have the
right to enter the Premises or any part thereof prior to the
applicable Commencement Date (which Tenant may not do without
prior written notice to Landlord and providing Landlord with
evidence of insurance as required hereunder as if the Commencement
Date had occurred), such entry shall be at Tenant’s sole risk
and without interference to any work then being performed in the
Building by Landlord or other tenants or occupants, and all of the
covenants and conditions of this Lease shall be binding upon the
parties hereto with respect to such whole or part of the
Premises, except the Base Rent and any other charges shall not
commence until the dates provided above.
C.
The occurrence of any of the events
described in this Paragraph 3 shall not accelerate or defer the
Termination Date.
4.
BASE RENT .
Tenant shall pay to Landlord or
Landlord’s agent without notice or demand at the present
mailing address of Landlord, or at such other place as Landlord
may from time to time designate in writing, in coin or
currency which, at the time of payment, is legal tender for private
or public debts in the United States of America, the Base Rent
specified in Paragraph 1 hereof in the equal monthly installments
specified in Paragraph 1 hereof in advance on or before the first
day of each and every month during the Term, without any abatement
(except as specifically provided herein), counterclaim, set-off or
deduction whatsoever. If the Term for Area A and/or Area B
commences other than on the first day of a month or ends other than
on the last day of the month, the Base Rent for such month shall be
prorated. The prorated Base Rent for the portion of the month in
which the Term commences shall be paid on the first day of the
first full month during the Term.
6
5.
ADDITIONAL RENT
.
In addition to paying the Base Rent
specified in Paragraph 4 hereof, Tenant shall pay as
“Additional Rent” the amounts determined pursuant to
Sub-Paragraphs B and C of this Paragraph 5. The Base Rent and the
Additional Rent are sometimes herein collectively referred to as
the “Rent”. All amounts due under this Paragraph as
Additional Rent shall be payable for the same periods and in the
same manner, time and place as the Base Rent, without any abatement
(except as specifically provided herein), counterclaim, set-off or
deduction whatsoever. Without limitation on other obligations of
Tenant which shall survive the expiration of the Term, the
obligations of Tenant to pay the Additional Rent provided for in
this Paragraph 5 shall survive the expiration of the Term for a
period of two years. For any partial Calendar Year, Tenant shall be
obligated to pay only a pro rata share of the Additional Rent,
based on the number of days of the Term falling within such
Calendar Year.
A.
Definitions
. As used in this Paragraph 5, the
terms:
(i)
“Base Year” shall mean
the calendar year specified in Paragraph 1 hereof.
(ii)
“Base Year Operating
Expenses” shall mean the sum specified in Paragraph 1
hereof.
(iii)
“Calendar Year” shall
mean each calendar year in which any part of the Term falls,
through and including the year in which the Term
expires.
(iv)
‘Tenant’s Proportionate
Share” shall mean the percentage specified in Paragraph 1
hereof, being the percentage calculated by dividing the rentable
area contained in the Premises from time to time by 802,750 (being
95% of the
7
rentable square foot area of the
Office Section), rentable area to be determined by Landlord on a
uniform basis for the tenants of the Office
Section.
(v)
“Taxes” shall mean all
real estate taxes and assessments, special or otherwise, levied or
assessed upon or with respect to the Building or any
part thereof and Common Areas which Landlord determines in its
sole judgment to be for the benefit of the Building and ad valorem
taxes for any personal property of Landlord used in connection
therewith. Landlord’s determination of which Common Areas
benefit the Building shall not be revised adversely to Tenant for
purposes of determining Taxes included in Operating Expenses.
Should the Commonwealth of Massachusetts, or any political
subdivision thereof, or any other governmental authority having
jurisdiction over the Building, (a) impose a tax, assessment,
charge or fee, which Landlord shall be required to pay, by way of
substitution for or as a supplement to such real estate taxes and
ad valorem personal property taxes, or (b) impose an income or
franchise tax or a tax on rents in substitution for or as a
supplement to a tax levied against the Building or any
part thereof and/or the personal property used in connection
with the Building or any part thereof, all such taxes,
assessments, fees or charges (hereinafter defined as “in lieu
of taxes”) shall be deemed to constitute Taxes hereunder.
Taxes shall also include, in the year paid, all reasonable fees and
costs incurred by Landlord in seeking to obtain a reduction of, or
a limit on the increase in, any Taxes, regardless of whether any
reduction or limitation is obtained. Except as hereinabove provided
with regard to “in lieu of taxes”. Taxes shall not
include any inheritance, estate, succession, transfer, gift,
franchise, net income or capital stock tax.
(vi)
“Operating Expenses”
shall mean (a) Taxes and (b) all expenses, costs and
disbursements of every kind and nature, paid or incurred by
Landlord in operating, owning, managing, leasing, repairing and
maintaining the Office Section, the Building, the Property and
their appurtenances as such Taxes,
8
expenses, costs and disbursements
are allocated to the Office Section by the Landlord in its
reasonable judgment (which allocation shall remain consistent for
the Base Year and each Calendar Year of the Term) or as the same
are incurred directly in the operation of Office Section, including
but without limitation: premiums for fire, casualty, liability and
such other insurance as Landlord may from time to time
maintain; security expenses; compensation and all fringe benefits,
workmen’s compensation insurance premiums and payroll taxes
paid by Landlord to, for or with respect to all persons engaged in
operating, maintaining, or cleaning; steam, water, sewer, electric,
gas, telephone, and other utility charges not billed directly to
tenants by Landlord or the utility; expenses incurred in connection
with the central plant furnishing heating, ventilating and air
conditioning to the Office Section (and to the Building and
the Property where and to the extent such expenses of the Building
and the Property are otherwise allocable to the Office Section),
which expenses may include a reasonable fee paid to the
operator of such central plant; costs of lighting, ventilating,
(including maintaining and repairing ventilating fans and fan
rooms); making routine repairs to and maintenance of underground
roadways (and the access ramps servicing such roadways) and
railroad platforms and railroad rights of way (including track);
costs of repairing and maintaining fire protection systems relating
to the underground roadways, access ramps, railroad platforms and
railroad rights of way to the extent the same are required of
Landlord by separate agreement running with the Property and
binding the Property whether currently in effect or arising from
obligations and commitments currently in effect; costs of building
and cleaning supplies and equipment (including rental); cost of
maintenance, cleaning and repairs; cost of snow plowing or removal,
or both, and care of interior and exterior landscaping; payments to
independent contractors under contracts for cleaning, operating,
management, maintenance and repair (which payments may be to
affiliates of Landlord provided such are at competitive rates); all
other expenses paid in connection with cleaning, operating,
management, maintenance and repair of, or are otherwise allocable
to, the Office Section; costs
9
of any Qualified Capital
Improvements (as hereinafter defined) as reasonably amortized by
Landlord, with interest on the unamortized amount at the rate of
the greater of (i) 12% per annum or (ii) 2% per annum
above the base rate of interest charged from time to time by The
First National Bank of Boston (but in no event at a rate which is
more than the highest lawful rate allowable in The Commonwealth of
Massachusetts), to the extent the cost of the particular capital
improvement exceeds the amount of insurance proceeds, if any,
received by Landlord on account of damage to the particular
Qualified Capital Improvement. As used in this Lease,
“Qualified Capital Improvement” shall mean a capital
improvement or replacement of such capital improvement which is
intended to reduce or stabilize Operating Expenses in any Calendar
Year below or at the Operating Expense which would have been
incurred in the absence of such capital improvement. The term
“capital improvement” does not include expenses for
equipment of a capital nature incurred in connection with
operation, repair and maintenance of the Building if such equipment
is not a part of the Building structure or systems and,
instead, is used to maintain or repair Building structure or
systems. Operating Expenses shall not, however, include the
following:
a.
Costs of alterations of any
tenant’s premises for a particular tenant;
b.
Principal or interest payments on
loans secured by mortgages or trust deeds on the Building and/or on
the Property;
c.
That portion of any costs incurred
in connection with the making of repairs or replacements which are
the lease obligation of another tenant or occupant of the
Property;
d.
Advertising, marketing, promotional,
public relations or brokerage fees, commissions or
expenditures;
10
e.
Financing and refinancing costs in
respect of any mortgage or security interest placed upon the
Property or any portion thereof, including payments of principal,
interest, finance or other charges, and any points and commissions
in connection therewith;
f.
Interest or penalties for any late
or failed payments by Landlord under any contract or agreement (but
any such interest or penalties resulting from Tenant’s
failure to pay when and as due Tenant’s share of Operating
Expenses shall be the direct responsibility of Tenant and shall be
Additional Rent due within ten (10) days of Landlord’s
billing Tenant therefor);
g.
Rent or other charges payable under
any ground or underlying lease;
h.
Costs of electrical or other
utilities services furnished directly to any premises or other
tenants of the Property where such utility is separately metered to
the premises or such tenant pays a separate charge
therefor;
i.
Costs incurred in connection with
Landlord’s preparation, negotiation, dispute resolution
and/or enforcement of leases, including court costs and
attorneys’ fees and disbursements in connection with any
summary proceeding to dispossess any tenant, or incurred in
connection with disputes with prospective tenants, employees,
consultants, management agents, leasing agents, purchasers or
mortgagees or arising from matters which are excluded from
Operating Expenses;
j.
Costs of any additions to or
expansions of the Property;
k.
The cost of environmental
monitoring, compliance, testing and remediation performed in, on,
about and around the Property;
11
1.
Depreciation;
m.
Costs or expenses for items to the
extent theretofore reimbursed to Landlord by insurance
proceeds;
n.
Costs of repairs, restoration or
replacements occasioned by fire or other casualty or caused by the
exercise of the right of eminent domain, whether or not insurance
proceeds or condemnation award proceeds are recovered or adequate
for such purposes except that the deductible amount under insurance
coverage shall be included in Operating Expenses;
o.
An amount equal to all amounts
received by Landlord (i) through proceeds of insurance to the
extent the proceeds are compensation for expenses which previously
were included in Operating Expenses hereunder, or (ii) as
rebates or credits toward costs and expenses previously included in
Operating Expenses hereunder; and
p.
Costs (including, without
limitation, attorneys’ fees and disbursements) incurred in
connection with any judgment, settlement or arbitration award
resulting from any tort liability; and
r.
Costs of capital improvements or
replacements except to the extent specifically to be included under
this Section 5A(vi).
If less than 95% of the Office
Section’s rentable area shall have been occupied by tenant(s)
at any time during any Calendar Year, components of Operating
Expenses which vary with the level of occupancy shall be determined
for such Calendar Year to be an amount equal to the like expense
which would normally be expected to be incurred (taking into
account periods during which
12
occupancy exceeded 95% during such
Calendar Year) had such occupancy been 95% throughout such Calendar
Year.
B.
Expense Adjustment
. Replaced per 2 nd
amendment. The Expense Adjustment Amount with respect to each
Calendar Year shall be paid in monthly installments, in an amount
estimated from time to time by Landlord in good faith and
communicated by written notice to Tenant, which estimate
may be revised to reflect, without limitation, increases in
Taxes during any period. Landlord shall cause to be kept books and
records showing Operating Expenses in accordance with an
appropriate system of accounts and accounting practices
consistently maintained. Within twelve (12) months after the close
of each Calendar Year, Landlord shall cause the amount of the
Expense Adjustment Amount for such Calendar Year to be computed
based on Operating Expenses for such Calendar Year and Landlord
shall deliver to Tenant a statement of such amount and Tenant shall
pay any deficiency to Landlord as shown by such statement within
thirty (30) days after receipt of such statement. If the total of
the estimated monthly installments paid by Tenant during any
Calendar Year exceed the actual Expense Adjustment Amount due from
Tenant for such Calendar Year, such amount shall be refunded by
Landlord within thirty (30) days of the delivery of the statement
to Tenant, provided Tenant is not then in monetary default
hereunder or in other than monetary default beyond applicable
periods of notice and cure. Tenant shall have the right to audit
Landlord’s books and records relating to Operating Expenses
incurred during the Term provided such audit shall be conducted by
professional auditors; may occur not more often than once in a
year; shall be conducted within twelve months (plus any period for
which Landlord defers the audit as provided in this sentence) of
receipt of a statement of Operating Expense Adjustment for the
Calendar Year being audited; shall be conducted during regular
business hours of Landlord on not less than fifteen (15) business
days’ notice and may be deferred by Landlord by notice
given at least ten (10) business days before the date
13
proposed by Tenant, for up to three
(3) months to a date convenient to Landlord. In the event the
results of such audit disclose an overcharge of Tenant, Landlord
shall promptly refund the amount of such overcharge to Tenant. In
addition, if as a result of such audit, Operating Expenses are
found to be overstated by more than ten percent (10%), Landlord
shall pay to Tenant, Tenant’s reasonable cost of conducting
such audit. Delay in computation of the Expense Adjustment Amount
or failure to deliver a statement of such amount shall not be
deemed a default hereunder or a waiver of Landlord’s right to
collect the Expense Adjustment Amount. In computing the Expense
Adjustment Amount, the following provisions relating to Taxes shall
be applicable: The amount of any refund of Taxes received by
Landlord shall be credited against Taxes for the Calendar Year in
which such refund is received; provided, however, that in the event
Landlord receives a refund of Taxes after the Termination Date (as
the same may be accelerated or extended as provided elsewhere
in this Lease) which refund relates to a Calendar Year during the
Term hereof, the amount of such refund fairly allocable to Tenant
shall be refunded to Tenant by Landlord within ninety (90) days of
Landlord’s receipt of same (net of Tenant’s allocated
share of the cost of obtaining such refund and the cost, if any, of
making such refund); and further provided that if Tenant expands
into space formerly occupied by other tenants, which expansion
space becomes subject to this Lease, Tenant shall not be entitled
to any refund or credit with respect to such expansion space in
connection with a refund or abatement of Taxes for periods prior to
Tenant’s occupancy of such expansion space. All references to
Taxes “for” a particular Calendar Year shall be deemed
to refer to Taxes due and payable during such Calendar Year without
regard to when such Taxes are assessed or levied.
C.
Adjustment For Services Not
Rendered by Landlord .
Tenant acknowledges that if after the Base Year Landlord is not
furnishing any particular work or service the cost of which was
included in Base Year Operating Expenses and if performed by
Landlord would be included in Operating Expenses, to any tenant who
has undertaken to perform such work or service in lieu of the
performance thereof by Landlord, Operating Expenses shall be deemed
for the purpose of determining the
14
Expense Adjustment Amount to be
increased by an amount equal to the additional Operating Expenses
which would reasonably have been incurred during such period by
Landlord if it had at its own expense furnished such work or
service to such tenant.
6.
USE OF PREMISES
.
Tenant shall use and occupy the
Premises in accordance with law; and solely as an office and for no
other purpose or purposes.
7.
CONDITION OF PREMISES
.
The Premises are demised to Tenant
and Tenant accepts the same “as-is” and all work
necessary to prepare the Premises for Tenant’s occupancy
shall be performed at Tenant’s sole cost and expense, in
accordance with the applicable provisions of this Lease.
Notwithstanding the foregoing, (i) Landlord agrees that all
systems serving the Premises shall be in good and operational
condition on the applicable Commencement Date, (ii) the
Premises will be delivered in compliance with all applicable code
requirements, laws, regulations and ordinances applicable to the
delivery of unfinished, undemolished space except as to compliance
with ADA bathroom and fire requirements which are
Tenant’s responsibility in full floor usage and except for
the wallboard adjacent to the atrium area of the Building which is
not in compliance with the fire code; provided, however, that the
reasonable cost of bringing the wallboard to code shall be
reimbursed by Landlord (separate from and outside of the Landlord
Base Allowance) to Tenant promptly after Tenant submits its bill
for such work to Landlord together with reasonable evidence of the
completion thereof, and (iii) the Landlord represents,
warrants and covenants that the Common Areas and portions of the
Property which are not leased or leaseable will at all times on and
after the Area A Commencement Date as to Area A and the Area B
Commencement Date as to Area B be in compliance with all code
requirements, laws, regulations and ordinances including without
limitation ADA, OSHA and the Clean Air Act which must be complied
with for general office uses so as to assure
15
Tenant uninterrupted use of the
Premises without the imposition of fees or penalties or incurrence
of liability by reason of such noncompliance. In no event shall
Landlord be obligated to cause compliance of the Premises with ADA
requirements noted above. No promise of Landlord to alter, remodel
or improve the Premises, the Office Section or the Building
and no representation by Landlord or its agents respecting the
condition of the Premises, the Office Section or the Building
have been made to Tenant or relied upon by Tenant other than as
may be contained in this Lease or in any written amendment
hereto signed by Landlord and Tenant. Tenant shall have the right,
upon reasonable notice and during hours as will minimally interfere
with the business of the current occupant of Area B (and consistent
with reasonable security policies of the current occupant), to
cause the Landlord to arrange with the current occupant of Area B
for access to Area B prior to the Area B Commencement Date to
permit cabling within Area B so as to coordinate cabling work with
the installation of cabling in Area A. All costs of such cabling
shall be the responsibility of Tenant under the Work
Letter.
8.
SERVICES .
A.
List of Services
.
Landlord shall provide the following
services, the costs of which are included within Operating
Expenses, on all days during the Term except Sundays and holidays
(but for purposes hereof, “holidays” shall not include
days on which the New York Stock Exchange is operating), unless
otherwise stated, and subject to all governmental rules,
regulations and guidelines applicable thereto:
(i)
Heating and air conditioning in the
Premises during the normal heating and air-conditioning seasons,
from Monday through Friday, during the period from 8 a.m. to
6 p.m. and on Saturday during the period from 8 a.m. to
1 p.m. in accordance with the following standards: In all
areas of the Premises, an indoor temperature of 70° to
74°F dry bulb and 30% relative humidity on a year
16
round basis regardless of outdoor
temperature with fresh air of not less than 0.25 cubic feet per
minute for each square foot of useable area in the Premises
provided Tenant does not exceed a heat load of six (6) watts
per rentable square foot and an occupancy level of not more than
one person for each 125 rentable square feet in the Premises, but
subject to Tenant’s failure to properly design its heating
and air-conditioning system distribution within the Premises.
Tenant will pay for all heating and air-conditioning requested and
furnished prior to or following such hours at rates to be
established from time to time by Landlord. Currently, after-hours
HVAC is available at a rate of $45.00 per hour per floor. Requests
for any additional services shall be in writing and delivered to
Landlord not later than 2 p.m. of the previous day.
(ii)
Adequate electrical wiring and
facilities for standard building lighting fixtures provided by
Landlord and for Tenant’s incidental uses (it being
understood that Tenant is to bear the cost of replacement of all
lamps, tubes, ballasts and starters for lighting fixtures in the
Premises); provided that (a) the connected electrical load for
lighting and incidental use equipment does not exceed an average of
three watts per square foot of the Premises; (b) the
electricity so furnished for incidental uses will be at a nominal
120 volts and no electrical circuit for the supply of such
incidental use will have a current capacity exceeding 20 amperes;
and (c) such electricity will be used only for equipment and
accessories normal to office usage. If Tenant’s requirements
for electricity for lighting and incidental uses are in excess of
those set forth in the preceding sentence, Landlord reserves the
right to require Tenant to install the conduit, wiring and other
equipment necessary to supply electricity for such excess
incidental use requirements at Tenant’s expense.
(iii)
City water from the regular Building
outlets for drinking, lavatory and toilet purposes.
17
(iv)
Janitorial services as delineated in
Exhibit D attached hereto.
(v)
Window washing of the inside and
outside of windows in the Building’s perimeter walls as
may be situated in the Premises as delineated in
Exhibit D attached hereto.
(vi)
Non-exclusive automatic passenger
elevator service at all times.
(vii)
Non-exclusive freight elevator
service subject to scheduling by Landlord. Landlord will schedule
reasonable use of the freight elevator for Tenant’s move into
and out of the Premises, which use shall provide Tenant with
sufficient periods of uninterrupted use to permit its reasonably
orderly construction and move into the Premises, subject to
reasonable limitations and interruptions for use by other
tenants.
B.
Billing for
Electricity .
Landlord shall submeter
Tenant’s use of all electrical service to the Premises (other
than the electrical service necessary for Landlord to fulfill its
obligation to provide heating and air conditioning as provided in
Paragraph 8A(i) hereof) or shall determine such usage through
an intellimeter or similar device. Tenant shall pay Landlord as
further Additional Rent, in monthly installments at the time
prescribed for monthly installments, the cost of such electrical
usage. Tenant’s obligation for electricity usage by Tenant
during the Term shall survive the termination of this Lease and/or
Tenant’s right to occupancy of all or any part of the
Premises.
C.
Interruption of
Services .
Tenant agrees that except as
provided in this Subparagraph C, Landlord shall not be liable in
damages, by abatement of Rent or otherwise, for failure to furnish
or delay in
18
furnishing any service, or for any
diminution in the quality or quantity thereof, when such failure or
delay or diminution is occasioned, in whole or in part, by repairs,
renewals, or improvements, by any strike, lockout or other labor
trouble, by inability to secure electricity, gas, water, or other
fuel at the Building after reasonable effort so to do, by any
accident or casualty whatsoever, by act or default of Tenant or
other parties, or by any other cause beyond Landlord’s
reasonable control; and such failures or delays or diminution shall
never be deemed to constitute an eviction or disturbance of
Tenant’s use and possession of the Premises or relieve Tenant
from paying Rent or performing any of its obligations under this
Lease. Notwithstanding anything in this Lease to the contrary, if
as a result of a cessation limited to utilities or interruption of
utilities or access which Landlord is required to provide hereunder
for any other reason other than (i) reasons arising as a
result of negligence, willful misconduct on the part of Tenant
or any of Tenant’s contractors, agents or employees or breach
of this Lease by Tenant, (ii) reasons arising out of
Tenant’s use and occupancy of the Premises, (iii) any
other reason within the reasonable control of Tenant, Tenant is
unable to use all or a portion of the Premises for its business
purposes for a period of seven (7) consecutive days, the Base
Rent and Additional Rent relating to periods subsequent to such
seven (7) day period and thereafter due hereunder shall abate
until Tenant is again able to use such portion of the Premises for
its business purposes. In the event such interruption or cessation
continues for more than thirty (30) consecutive days and materially
affects Tenant’s use and occupancy of the Premises, Tenant
shall have the right to terminate this Lease by notice to Landlord
within ten (10) days of the expiration of such thirty (30) day
period.
D.
Charges for Services
.
Charges for any service for which
Tenant is required to pay, from time to time hereunder, including
but not limited to hoisting services or after hours lighting,
heating or air conditioning shall be due and payable at the same
time as the installment of Rent with which they are billed, or if
billed separately, shall be due and payable as further Additional
Rent within thirty (30) days after such billing. If Tenant shall
fail to make
19
payment for any such services within
applicable periods of notice and cure, Landlord may, without notice
to Tenant, in addition to any and all other remedies available
under this Lease or otherwise, discontinue any or all of such
services and such discontinuance shall not be deemed to constitute
an eviction or disturbance of Tenant’s use and possession of
the Premises or relieve Tenant from paying Rent or performing any
of its other obligations under this Lease.
E.
Energy Conservation
.
Notwithstanding anything to the
contrary in this Paragraph 8 or elsewhere in this Lease, Landlord
shall have the right to institute such policies, programs and
measures as may be necessary or desirable, in Landlord’s
reasonable discretion, for the conservation and/or preservation of
energy or energy related services if consistent with similar
programs instituted generally in first-class office buildings
in Boston (to the extent the systems of such office buildings are
not otherwise compliant with conservation and preservation goals
generally accepted), or as may be required to comply with any
applicable codes, rules and regulations, whether mandatory or
(but only if instituted by first-lass Boston office buildings whose
systems are not otherwise compliant) voluntary.
9.
REPAIRS; HAZARDOUS
MATERIALS .
Tenant will, at Tenant’s own
expense, keep the Premises, including all improvements, fixtures
and furnishings therein, in good order, repair and condition at all
times during the Term, reasonable wear and tear excepted (and
Tenant shall not be obligated hereunder for damage to the Premises
arising from Building damage arising from fire or other casualty),
and Tenant shall promptly and adequately repair all damage to the
Premises and replace or repair all damaged or broken glass,
fixtures and appurtenances. If Tenant does not do so after notice
and expiration of applicable cure periods, Landlord may, but shall
not be obligated to, make such repairs and replacements, and Tenant
shall pay Landlord the cost thereof, including a percentage of the
cost thereof
20
(to be uniformly established for the
Office Section) sufficient to reimburse Landlord for all overhead,
general conditions, fees and other costs or expenses arising from
Landlord’s involvement with such repairs and replacements
forthwith upon being billed for same. Landlord may, but shall not
be required to, enter the Premises at all reasonable times upon
reasonable advance notice (and at any time in emergency situations)
to make such repairs, alterations, improvements and additions to
the Premises, to the Office Section or the Building or to any
equipment located in the Office Section or the Building as
Landlord shall desire or deem necessary or as Landlord may be
required to do by governmental authority or court order or decree.
Nothing contained herein shall impose any obligation on Tenant to
maintain, repair or replace any systems serving or passing through
the Premises (including without limitation the HVAC, electrical,
plumbing, life safety and security systems). Landlord shall be
responsible for the same, subject to reimbursement of the cost
thereof as a component of Operating Expenses.
Tenant shall not (either with or
without negligence) cause or permit the escape, disposal or release
of any biologically or chemically active or hazardous substances,
or materials (collectively the “Hazardous Materials”).
Tenant shall not allow the storage or use of Hazardous Materials in
any manner not sanctioned by law or by the highest standards
prevailing in the industry for the storage and use of such
Hazardous Materials, not allow to be brought into the Building any
Hazardous Materials except to use in the ordinary course of
Tenant’s business. Without limitation, Hazardous Materials
shall include those described in the Comprehensive Environmental
Response, Compensation and Liability Act of 1980, as amended, 42
U.S.C. Section 9601 et seq ., the Resource
Conservation and Recovery Act, as amended, 42 U.S.C.
Section 6901 et seq ., any applicable state or local
laws and the regulations adopted under these acts. If any lender or
governmental agency shall ever require testing to ascertain whether
or not there has been any release of Hazardous Materials by Tenant,
then the reasonable costs thereof shall be reimbursed by Tenant to
Landlord upon demand as additional charges if such requirement
applies to the Premises. In addition, Tenant shall execute
affidavits, representations and the like from time to time at
Landlord’s request concerning Tenant’s
21
best knowledge and belief regarding
the presence of Hazardous Materials on the Premises provided such
are in form and substance reasonably acceptable to Tenant. In
all events, Tenant shall indemnify Landlord in the manner elsewhere
provided in this Lease from any release of Hazardous Materials on
the Premises occurring while Tenant is in possession (unless caused
by Landlord, its agents, employees, contractors or other tenants of
the Property) or elsewhere if caused by Tenant or persons acting
under Tenant. The within covenants shall survive the expiration or
earlier termination of the Term.
10.
ADDITIONS AND
ALTERATIONS .
A.
Tenant shall not, without the prior
written consent of Landlord, make any alterations, improvements or
additions to the Premises subsequent to initial construction, the
approval conditions for which are set forth in the Work Letter;
provided, however, Landlord’s consent shall not be required
with respect to nonstructural alterations, improvements or
additions below finished ceilings costing less than $12,000 to
implement and Landlord shall not unreasonably withhold its consent
to other nonstructural alterations which do not materially
adversely affect Building Systems. Tenant shall in all events
provide at least five (5) business days’ notice to
Landlord of any alterations, improvements or additions (with a
summary description of the work to be done and a statement,
pursuant to Paragraph 9, describing any Hazardous Materials to be
brought into the Building in connection with the work) whether or
not consent is required. Landlord shall respond to requests for
consents (a) within two (2) business days, as to requests
for decorative alterations and (b) within five
(5) business days, as to requests for other nonstructural
alterations. If Landlord consents to said alterations, improvements
or additions after initial construction, it may impose such
reasonable conditions with respect thereto as Landlord reasonably
deems appropriate (but in no event shall Landlord be entitled to
ask Tenant to remove at the end of the term any nonstructural
alterations that are Customary Office Improvements, as defined
below). Tenant shall have the right to tie into the Building
security system, at Tenant’s sole cost and expense, its HVAC
alarm provided that plans for such tie-in shall be submitted
to
22
Landlord for approval and that
Landlord, its employees, agents and contractors shall be held
harmless against any and all damages, liabilities, claims and
expenses which may be incurred by Tenant arising from any
failure of the Building security system to provide any notice of
failure of the Tenant’s system or any other level of security
or alarm which might otherwise be anticipated to be provided by the
Landlord’s security system. The work necessary to make any
alterations, improvements or additions to the Premises, whether
prior to or subsequent to an applicable Commencement Date, shall be
done at Tenant’s expense by employees of or contractors hired
by Landlord except to the extent Landlord gives its prior written
consent to Tenant’s hiring its own contractors, which consent
shall not be unreasonably withheld or delayed. Initial construction
of the Premises shall be accomplished by Tenant’s contractor
using plans and specifications prepared by Tenant’s architect
in accordance with the Work Letter. It is understood that
Landlord’s consent to the hiring by Tenant of Tenant’s
own contractors for any work subsequent to initial construction
(the contractor for which has been approved by Landlord as provided
in the Work Letter) may be withheld if Landlord’s
permitting such hiring might reasonably be expected to result in an
interruption of services provided to tenants of the Building by
reason of labor difficulties. Tenant shall promptly pay to
Tenant’s contractors, or to Landlord if Landlord has hired
the contractor, when due, the actual cost of all such work and of
all decorating. In connection with seeking Landlord’s
approval hereunder, Tenant shall provide to Landlord plans and
specifications regarding proposed alterations, additions or
improvements, as Landlord shall reasonably require, and Tenant
shall, in addition to all other expenses which Tenant is obligated
to pay to Landlord hereunder, pay to Landlord the actual reasonable
out-of-pocket expense incurred by Landlord in connection with the
review of such information. Upon completion of such work Tenant
shall deliver to Landlord, if payment is made directly to
contractors, evidence of payment, contractors’ affidavits and
full and final waivers of all liens for labor, services or
materials, all in form reasonably satisfactory to Landlord.
Tenant shall defend and hold Landlord, Landlord’s lessor, any
mortgagee of Landlord, the MTA (hereinafter defined), the Property
and the Building harmless from all costs, damages, liens and
expenses related to such work. All work done by Tenant or
its
23
contractors pursuant to Paragraphs 9
or 10 shall be done in a first-class workmanlike manner using
only good grades of materials and shall comply with all insurance
requirements and all applicable laws and ordinances and
rules and regulations of governmental departments or
agencies.
B.
All alterations, improvements and
additions to the Premises, whether temporary or permanent in
character, made or paid for by Landlord or Tenant, which are not
removed by Tenant (to the extent permitted and as provided in
Paragraph 18) prior to the end of the Term shall without
compensation to Tenant become Landlord’s property at the
termination of this Lease by lapse of time or otherwise and shall,
unless Landlord has requited their removal as a condition of its
consent to installation (in which case Tenant shall remove the same
as provided in Paragraph 18), be relinquished to Landlord in good
condition, ordinary wear and damage or condition resulting from the
effects of casualty and eminent domain excepted. Notwithstanding
the foregoing, Tenant shall not be obligated to remove any
partitions, floor or wall coverings, or other normal office layout
construction (“Customary Office Improvements”), or any
improvements made pursuant to the Work Letter unless otherwise
specified by Landlord in connection with Landlord’s approval
of Tenant’s plans for initial construction of the Premises.
Nothing contained herein shall be deemed to grant Landlord an
ownership interest in Tenant’s trade fixtures, equipment or
personal property (including, without limitation, the work stations
and anti-static floor in the communications room) which shall
remain Tenant’s property and may be removed during or at
the end of the term of the Lease provided that Tenant shall repair
any and all damage to the Premises caused by such
removal.
Tenant may install, maintain,
replace, remove or use any communications or computer wires, cables
and related devices (collectively the “Lines”) at the
Property in or serving the Premises, provided: (a) Tenant
shall obtain Landlord’s prior written consent to any such
action (which consent shall not be unreasonably withheld or
delayed), use an experienced and qualified contractor approved in
writing by Landlord (which approval shall not be unreasonably
withheld or delayed), and comply with all of the other
24
provisions of Paragraph 10A,
(b) any such installation, maintenance, replacement, removal
or use shall not interfere with the use of any then existing Lines
at the Building, (c) as to Lines installed after the initial
buildout, an acceptable number of spare Lines and space for
additional Lines shall be maintained for existing and future
occupants of the Building, as determined in Landlord’s
reasonable opinion, (d) if Tenant at any time uses any
equipment that may create an electromagnetic field exceeding
the normal insulation ratings or ordinary twisted pair riser cable
or cause radiation higher than normal background radiation, the
Lines therefor (including riser cables) shall be appropriately
insulated to prevent such excessive electromagnetic fields or
radiation, (e) as a condition to permitting the installation
of new Lines, Landlord may require that Tenant remove existing
Lines located in or serving the Premises (other than Lines
installed or used by Tenant), (f) Tenant’s rights shall
be subject to the rights of any regulated telephone company, and
(g) Tenant shall pay all costs in connection therewith.
Landlord reserves the right to require that Tenant remove any Lines
installed by Tenant located in or serving the Premises which are
installed in violation of these provisions, or which are at any
time in violation of any laws, ordinances, rules or
regulations or causing a dangerous or potentially dangerous
condition within thirty (30) days after written notice.
Landlord may (but shall not
have the obligation to): (i) install new Lines at the
Building, (ii) create additional space for Lines at the
Property, and (iii) reasonably monitor and/or supervise the
installation, maintenance, replacement and removal of, the
allocation and periodic re-allocation of available space (if any)
for, and (solely as to Lines installed by Landlord) the allocation
of excess capacity (if any) on, any Lines now or hereafter
installed at the Building by Landlord, Tenant or any other party
(but Landlord shall have no right to monitor or control the
information transmitted through such Lines). Such rights shall not
be in limitation of other rights that may be available to
Landlord by law or otherwise. If Landlord exercises any such
rights, Landlord may charge Tenant for the costs attributable
to Tenant, or may include those costs and all other costs in
Operating Expenses under Paragraph 5A(vi) (including without
limitation, costs for acquiring and installing Lines and risers to
accommodate new Lines and spare Lines, any
25
associated computerized system and
software for maintaining records of Line connections, and the fees
of any consulting engineers and other experts); provided, the cost
of any capital improvements shall be included in Operating Expenses
hereunder and shall be amortized (together with reasonable finance
charges) as provided in Paragraph 5A(vi) and shall not be
included in Operating Expenses if attributable to any particular
tenant or tenants of the Property or would otherwise not be
includable in Operating Expenses pursuant to exclusions under
Paragraph 5A(vi).
Tenant shall remove currently
existing Lines in the Premises, including, without limitation,
those above the existing finished ceiling in connection with
Tenant’s construction, but Tenant shall have no obligation to
remove any Lines installed by or for Tenant within or serving the
Premises upon termination of this Lease. Any Lines not removed
prior to the end of the Term shall, at Landlord’s option,
become the property of Landlord (without payment by Landlord).
Tenant shall not, without the prior written consent of Landlord in
each instance, grant to any third party a security interest or lien
in or on the Lines, and any such security interest or lien granted
without Landlord’s written consent shall be null and void.
Subject to Paragraph 8C and except to the extent arising from the
intentional or negligent acts of Landlord or Landlord’s
agents or employees, Landlord shall have no liability for damages
arising from, and Landlord does not warrant that the Tenant’s
use of any Lines will be free from the following (collectively
called “Line Problems”): (x) any eavesdropping or
wire-tapping by unauthorized parties, (y) any failure of any Lines
to satisfy Tenant’s requirements, or (z) any shortages,
failures, variations, interruptions, disconnections, loss or damage
caused by the installation, maintenance, replacement, use or
removal of Lines by or for other tenants or occupants at the
Building, by any failure of the environmental conditions or the
power supply for the Building to conform to any requirements
for the Lines or any associated equipment, or any other problems
associated with any Lines by any other cause; provided, however,
that Landlord shall use its best efforts to enforce the leases of
other tenants in respect of matters relating to Line Problems.
Subject to Paragraph 8C, under no circumstances shall any Line
Problems be deemed an actual or constructive eviction of Tenant or
relieve
26
Tenant from performance of
Tenant’s obligations under this Lease. Landlord in no event
shall be liable for damages by reason of loss of profits, business
interruption or other consequential damage arising from any Line
Problems.
11.
COVENANT AGAINST LIENS
.
Tenant has no authority or power to
cause or permit any lien or encumbrance of any kind whatsoever,
whether created by act of Tenant, operation of law or otherwise, to
attach to or be placed upon the Property, the Building or the
Premises, or to affect any estate or interest of Landlord,
Landlord’s lessor, any mortgagee or the MTA. Tenant covenants
and agrees not to suffer or permit any lien of mechanics,
materialmen or others to the placed against the Property, the
Building or the Premises, or to affect any estate or interest of
Landlord, Landlord’s lessor, any mortgagee or the MTA, with
respect to work or services claimed to have been performed for or
materials claimed to have been furnished to Tenant or the Premises,
and, in case of any such lien attaching or notice of any lien, or
claim therefor being asserted, Tenant covenants and agrees to cause
same to the immediately released and removed of record or bonded
over. In the event that such lien is not released and removed or
bonded over within twenty (20) days of the date Tenant receives
notice of the same, Landlord, at its sole option, may take all
action necessary to release and remove such lien (without any duty
to investigate the validity thereof) and Tenant shall promptly upon
notice reimburse Landlord for all sums, costs and expenses
(including reasonable attorneys’ fees) incurred by Landlord
in connection therewith.
12.
INSURANCE .
A.
Waiver of Subrogation
.
Landlord and Tenant each hereby
waive any and every claim for recovery from the other for any and
all loss of or damage to the Property, the Building or the Premises
or to
27
the contents thereof, which loss or
damage is (i) covered by valid and collectible physical damage
insurance policies, to the extent that such loss or damage is
recoverable under said insurance policies or (ii) required to
be covered under this Lease but the party required to maintain such
insurance failed to maintain the same in which event such party
shall be deemed to have received the total insurance proceeds
required to be carried hereunder. Inasmuch as this mutual waiver
will preclude the assignment of any such claim by subrogation (or
otherwise) to an insurance company (or any other person), Landlord
and Tenant each agree to give to each insurance company which has
issued, or in the future may issue, to it policies of physical
damage insurance, written notice of the terms of this mutual
waiver, and to have said insurance policies properly endorsed, if
necessary, to prevent the invalidation of said insurance coverage
by reason of said waiver. Tenant’s waiver of subrogation as
hereinabove set forth shall also run to the benefit of and extend
to Landlord’s lessor and the MTA.
B.
Coverage .
Tenant shall purchase and maintain
insurance during the entire Term for the benefit of Tenant, with
Landlord, Landlord’s lessor, any mortgagee and the MTA named
as additional insureds (as their respective interests may appear)
in companies reasonably satisfactory to Landlord, and with such
increases in limits as Landlord may from time to time request
(provided such increases are consistent with that required of
similar tenants in the Greater Boston area), but initially Tenant
shall maintain the following coverages in the following
amounts:
(i)
Commercial General Liability
Insurance covering Tenant, with Landlord, Landlord’s lessor,
the MTA and Landlord’s management agent named as additional
insureds for claims of bodily injury, personal injury and property
damage arising out of Tenant’s operations, assumed
liabilities or use of the Premises, for limits of liability not
less than:
28
|
Bodily Injury and
Property
|
|
$3,000,000 each
occurrence
|
|
|
|
|
|
Damage Liability
|
|
$3,000,000 annual
aggregate
|
|
|
|
|
|
Personal Injury Liability
|
|
$3,000,000 annual
aggregate
|
|
|
|
0% Insured’s
participation
|
(ii)
Comprehensive Automobile Insurance
covering all owned, non-owned and hired automobiles of Tenant
including the loading and unloading of any automobile with limits
of liability not less than:
|
Bodily Injury and
Property
|
|
$3,000,000 each person
|
|
|
|
|
|
Damage Liability
|
|
$3,000,000 each accident
|
(iii)
Physical Damage Insurance covering
all additions, improvements and alterations to the Premises which
are beyond the building standard tenant improvements provided by
Landlord and all office furniture, trade fixtures, office
equipment, merchandise and all other items of Tenant’s
property on the Premises. Such insurance shall be written on an
“all risks” of physical loss or damage basis, for the
full replacement cost value of the covered items and in amounts
that meet any coinsurance clauses of the policies of
insurance.
Tenant shall, prior to the
commencement of the Term, furnish to Landlord certificates
evidencing such coverage, on ACORD Form 27, which certificates
shall state that such insurance coverage may not be changed or
canceled without at least thirty (30) days’ prior written
notice to Landlord and Tenant and shall name Landlord and
Landlord’s management agent as additional
insureds.
During the Term of this Lease,
Landlord shall secure and carry (a) a policy of commercial
general liability insurance covering Landlord on an occurrence
basis in an amount not less than $3,000,000 for claims based on
bodily injury (including death), personal injury and property
damage relating to the Property and the Land; and
(b) a
29
policy of property insurance
covering the Property and the other improvements on the Land for
direct risk of physical loss, on an occurrence basis, in an amount
equal to the full replacement cost of the Property and other
improvements on the Land.
C.
Avoid Action Increasing
Rates .
Tenant shall comply with all
applicable laws and ordinances, all orders and decrees of court and
all requirements of other governmental authorities having
jurisdiction over the Building and of the applicable rating bureau,
and shall not, directly or indirectly, make any use of the Premises
which may thereby be prohibited or be dangerous to person or
property or which may jeopardize any insurance coverage or may
increase the cost of insurance or require additional insurance
coverage. If by reason of the failure of Tenant to comply with the
provisions of this Paragraph 12C, (i) any insurance coverage
is jeopardized Landlord may, in addition to all other remedies
which may be available to Landlord, require Tenant to cease such
use and if Tenant does not do so promptly, Landlord may terminate
this Lease or (ii) if insurance premiums are increased,
Landlord may require Tenant to make immediate payment of the
increased insurance premium.
13.
FIRE OR CASUALTY
.
A. Paragraph 9 hereof
notwithstanding, if the Premises or the access thereto (which term
for purposes of this Paragraph 13 shall include Office
Section corridors which provide access to the Premises,
elevator or escalator service to the Premises and the garage, at
least one pedestrian entrance to the Building which provides access
to the elevators and such other access as shall be necessary to
permit Tenant to conduct its business in the Premises) shall be
damaged by fire or other casualty and if such damage is not of such
a character or magnitude as would result in Landlord having a right
to terminate under this Paragraph 13A, or if a right to terminate
is available to either Landlord or Tenant but no termination is
exercised, Landlord shall, subject to building
30
and zoning laws then applicable,
repair and restore the Premises to substantially the condition
(exclusive of tenant improvements thereto to the extent such
tenants, including Tenant, are responsible therefor) thereof prior
to the casualty, and shall restore access to the Premises and
Building systems to the extent necessary to permit Tenant to
operate its business in the Premises, with reasonable promptness
and subject to reasonable delays for insurance adjustments and
delays caused by matters beyond Landlord’s reasonable
control, but shall not be obligated to expend therefor an amount in
excess of the proceeds of insurance recovered with respect thereto
plus the deductible under Landlord’s insurance, provided that
such limitations shall not apply to the extent Landlord has not
maintained all insurance required to be carried hereunder and
unless diligently pursued all claims against its insurer. Landlord
shall have the right to terminate this Lease by giving notice of
Landlord’s election so to do not later than
“Landlord’s Restoration Notice Date” (as
hereinafter defined) in the following circumstances:
(a)
If damage from fire or other
casualty to the Premises or access thereto is such that the same
cannot, in the ordinary course, reasonably be expected to be
repaired within two hundred seventy (270) days from the date of
damage and Landlord terminates the leases of all other similarly
situated tenants in space which is in the Tower in which the
damaged space is located; or
(b)
If damage from fire or other
casualty to a “Tower” (the Office Section being
comprised of four “Towers” known as One Copley Place,
Two Copley Place, Three Copley Place and Four Copley Place) in
which all or a portion of the Premises is located is such that the
same cannot, in the ordinary course, reasonably be expected to be
repaired within two hundred seventy (270) days from the date of
damage and Landlord terminates the leases of all other similarly
situated tenants in space which is in the Tower in which the
damaged space is located (but Landlord’s right to terminate
hereunder shall only apply to that portion of the Premises which is
located within the Tower damaged by such fire or other casualty);
or
31
(c)
If Landlord determines to demolish
all or substantially all of the Building by reason of fire or other
casualty; or
(d)
If damage to the Building from fire
or other casualty is such that the same cannot, in the ordinary
course, reasonably be expected to be repaired within one year from
the date of damage and Landlord terminates the leases of all other
similarly situated tenants in space which is in the Tower in which
the damaged space is located.
Landlord shall notify Tenant no
later than Landlord’s Restoration Notice Date of the date by
which Landlord reasonably estimates such repairs will be
substantially completed (the “Estimated Repair Completion
Date”). Tenant shall have the right to terminate this Lease
by giving notice to Landlord of Tenant’s election so to do in
the following circumstances:
(1)
If only the Premises and/or the
access thereto have been damaged by fire-or-casualty and the
Estimated Repair Construction Date is more than three hundred sixty
(360) days after the date of damage,
(2)
If the Premises and/or access
thereto have not been damaged such that clause (1) is
applicable, but a Tower in which all or a portion of the Premises
is located has been damaged by fire or other casualty, the
Estimated Repair Completion Date is more than three hundred sixty
(360) days from the date of damage and such damage has a materially
adverse effect on the business of Tenant in the Premises (but
Tenant’s right to terminate hereunder shall only apply to
that portion of the Premises which is located within the Tower
damaged by such fire or other casualty),
32
(3)
If the Premises and/or access
thereto or a Tower in which all or a portion of the Premises is
located have not been damaged such that clause (1) or
(2) is applicable, but the Building has been damaged by fire
or other casualty, the Estimated Repair Completion Date is more
than three hundred sixty (360) days from the date of damage and
such damage has a materially adverse effect on the business of
Tenant in the Premises, or
(4)
If substantial completion of repairs
actually takes thirty (30) days longer than the Estimated Repair
Completion Date and Tenant had the right to terminate or would have
had the right if Landlord had correctly stipulated the Estimated
Repair Completion Date (but Tenant’s right to terminate
hereunder shall only apply to that portion of the Premises which
would have been the subject of such a termination had Landlord
correctly stipulated).
(5)
If substantial completion of repairs
to the Premises and access thereto sufficient for Tenant to conduct
its business in the Premises occurs more than three hundred sixty
(360) days after the date of damage and Tenant notifies Landlord of
its intent to terminate within thirty (30) days after the end of
such 360 day period unless not later than the end of such thirty
(30) day period Landlord shall have so substantially completed such
repairs, such termination to be effective as of midnight on the
thirtieth day after such 360 day period (but Tenant’s right
to terminate hereunder shall only apply to that portion of the
Premises which would have been the subject of such a termination
had Landlord correctly stipulated).
In the event a party entitled to do
so gives such termination notice, this Lease shall terminate (with
appropriate proration(s) of Rent being made for Tenant’s use
of any tenantable portion of the Premises after the date of such
damage) as of the date specified in such notice (but in no event
sooner than thirty (30) days after the date of such notice) with
the same force and effect as if the date specified were the
Termination Date. Landlord shall have no liability to Tenant, and
except as specifically set forth above,
33
Tenant shall not be entitled to
terminate this Lease by virtue of any delays in completion of such
repairs and restoration. Further, in the event this Lease is not
terminated, Landlord shall not be obligated to restore any portion
of the Office Section or the Building outside of the Premises
which is not necessary for reasonable access to and egress from the
Premises provided such failure to restore does not interfere with
Tenant’s ability legally to occupy the Premises or to
reconstruct the alterations, additions and improvements for which
it is responsible. Rent shall abate on those portions of the
Premises as are, from time to time, untenantable
(“untenantable” meaning “not suitable for the
normal conduct of Tenant’s business”) as a result of
such damage. For purposes hereof, Landlord’s Restoration
Notice Date shall be the date which is the earlier of
(i) thirty (30) days after Landlord has ascertained all
information required by Landlord to determine whether or not to
terminate this Lease, including without limitation the amount of
insurance proceeds which are available to Landlord for restoration
and (ii) ninety (90) days after the date of such
damage.
B.
Notwithstanding anything to the
contrary herein set forth, Landlord shall have no duty pursuant to
this Paragraph 13 to repair or restore any portion of the
alterations, additions or improvements in the Premises or the
decorations thereto except to the extent that such alterations,
additions, improvements and decorations were provided by Landlord
at the beginning of the Term. If Tenant desires any other or
additional repairs or restoration and if Landlord consents thereto,
the same shall be done at Tenant’s sole cost and expense
subject to all of the provisions of Paragraph 9 hereof. Tenant
acknowledges that Landlord shall be entitled to the full proceeds
of any insurance coverage, whether carried by Landlord or Tenant,
for damage to alterations, additions, improvements or decorations
provided by Landlord either directly or through an allowance to
Tenant.
34
14.
WAIVER OF CLAIMS -
INDEMNIFICATION .
To the extent not prohibited by law,
Landlord, its partners, its managing agent, Landlord’s
lessor, any mortgagee, the MTA and their respective officers,
agents, servants and employees shall not be liable for any damage
either to person or property or resulting from the loss of use
thereof sustained by Tenant or by other persons due to the Building
or any part thereof or any appurtenances thereof becoming out of
repair, or due to the happening of any accident or event in or
about the Office Section, the Premises or the Building, or due to
any act or neglect of any tenant or occupant of the Office Section,
the Building or of any other person or entity. This provision shall
apply particularly, but not exclusively, to damage caused by gas,
electricity, snow, frost, steam, sewage, sewer gas or odors, fire,
water, noise, vibration, fumes or by the bursting or leaking of
pipes, faucets, sprinklers, plumbing fixtures and windows, and
shall apply without distinction as to the person whose act or
neglect was responsible for the damage and whether the damage was
due to any of the causes specifically enumerated above or to some
other cause of an entirely different kind. Tenant further agrees
that all personal property upon the Premises, or upon loading
docks, receiving and holding areas, or freight elevators of the
Building shall be at the risk of Tenant only, and that Landlord
shall not be liable for any loss or damage thereto or theft
thereof. Without limitation of any other provisions hereof, Tenant
agrees to defined, protect, indemnify and save harmless Landlord,
Landlord’s lessor, any mortgagee and the MTA from and against
all liability to third parties which arose (or which were claimed
to have arisen) within the Premises. Nothing contained herein
shall, however, excuse landlord from its obligations regarding
maintenance of the Building, as contrasted with Landlord being
released from liability for personal or property damage arising
from Landlord’s failure to maintain; nor shall this Paragraph
relieve Landlord from liability for its negligence except as
provided in Paragraph 12A or, but only to the extent liability
therefor cannot be released as a matter of law, the negligence of
its agents, employees and contractors; nor shall this Paragraph
modify Landlord’s obligations with respect to failure of
services pursuant to Paragraph 8C of this Lease.
35
Landlord agrees to defend, protect,
indemnify and save harmless Tenant from and against all liability
to third parties which arose (or which is claimed to have arisen)
outside of the Premises.
15.
NONWAIVER .
No waiver of any provision of this
Lease shall be implied by any failure of either party to enforce
any remedy on account of the violation of such provision, even if
such violation be continued or repeated subsequently, and no
express waiver shall affect any provision other than the one
specified in such waiver and that one only for the time and in the
manner specifically stated. No receipt of monies by Landlord from
Tenant after the termination of this Lease shall in any way alter
the length of the Term or of Tenant’s right of possession
hereunder or after the giving of any notice shall reinstate,
continue or extend the Term or affect any notice given Tenant prior
to the receipt of such monies, it being agreed that after the
service of notice or the commencement of a suit or after final
judgment for possession of the Premises, Landlord may receive and
collect any Rent due, and the payment of said Rent shall not waive
or affect said notice, suit or judgment.
16.
CONDEMNATION
.
If the Property, the Building or any
portion thereof shall be taken or condemned by any competent
authority for any public or quasi-public use or purpose (a
“taking”), Landlord shall have the right, exercisable
at its sole discretion within one hundred eighty (180) days of
official notice of taking, to cancel this Lease upon not less than
ninety (90) days’ notice prior to the date of cancellation
designated in the notice provided Landlord terminates all other
leases of the Tower in which the Premises are located which are
similarly affected by such taking. No money or other consideration
shall be payable by Landlord to Tenant for the right of
cancellation and Tenant shall have no right to share in the
condemnation award or in any judgment for damages caused by such
taking or change
36
in configuration except for
Tenant’s relocation expenses and costs of improvements to the
Premises.
17.
ASSIGNMENT AND
SUBLETTING .
A.
Tenant shall not, without the prior
written consent of Landlord (which consent shall not be
unreasonably withheld) (i) assign, convey or mortgage this
Lease or any interest hereunder, (ii) permit to occur or exist
any assignment of this Lease, or any lien upon Tenant’s
interest, voluntarily or by operation of law; (iii) sublet the
Premises or any part thereof; or (iv) permit the use of the
Premises by any parties other than Tenant and its employees. Any
such action on the part of Tenant shall be void and of no effect.
Landlord’s consent to any assignment, subletting or transfer
or Landlord’s election to accept any assignee, subtenant or
transferee as the tenant hereunder and to collect rent from such
assignee, subtenant or transferee shall not release Tenant or any
subsequent tenant from any covenant or obligation under this Lease.
Landlord’s consent to any assignment, subletting or transfer
shall not constitute a waiver of Landlord’s right to withhold
its consent to any future assignment, subletting, or transfer.
Notwithstanding any contrary provision of this Lease, Tenant shall
have the right, without the prior consent of Landlord, to assign
this Lease and to sublet all or any portion of the leased Premises
to any person or entity (a) controlling, controlled by, or
under common control with Tenant, (b) acquiring all or
substantially all of the assets of Tenant, or (c) with or into
which Tenant merges or consolidates and which succeeds in any case
to the business conducted by Tenant originally named herein so long
as (i) the principal purpose of such assignment or sublease is
not the acquisition of Tenant’s interest in this Lease,
(ii) the assignment or sublet is not made to circumvent the
provisions of this Section 17A, and (iii) the assignee or
sublessee succeeds to Tenant’s business conducted within the
Premises immediately prior to such assignment or sublet.
B.
If Tenant requests or was obligated
to request Landlord’s consent to assign this Lease or sublet
all or any portion of the Premises in addition to withholding
its
37
consent, Landlord shall have the
option, exercisable by written notice to Tenant given within thirty
(30) days after receipt of such request, to terminate this Lease
for the entire Premises, in the case of an assignment or subletting
of the whole, and for the portion of the Premises, in the case of a
subletting of a portion. If Landlord exercises its right to
terminate, Tenant shall have the right to rescind its request for
consent and agree not to assign or sublet by written notice of such
rescission and agreement given to Landlord within five
(5) business days of the date on which Landlord notifies
Tenant of Landlord’s intent to terminate this Lease by reason
of such request and in such event Tenant shall be deemed not to
have requested consent, no assignment or sublet which would
otherwise require consent shall occur and Landlord’s
termination notice shall be void and of no further force or effect.
In the event that Landlord exercises such right to terminate and
Tenant does not timely exercise its right to rescind, Landlord
shall be entitled to recover possession of and Tenant shall
surrender the whole or such portion of the Premises on the later of
(i) the proposed date for possession by such assignee or
subtenant, or (ii) ninety (90) days after the date of
Landlord’s notice of termination to Tenant. In the event of
termination in respect of a portion of the Premises, the portion so
eliminated shall be delivered to Landlord in good order and
condition and thereafter, to the extent necessary in
landlord’s judgment, Landlord, at its own cost and expense,
may have access to and may make modification to the Premises so as
to make such portion a self-contained rental unit with access to
common areas, elevators and the like. Base Rent and Tenant’s
Proportionate Share shall be adjusted according to the extent of
the Premises for which the Lease is terminated. Without limitation
of the rights of Landlord hereunder in respect thereto, if there is
any assignment of this Lease by Tenant or a subletting of the whole
of the Premises by Tenant at a rent which, in either case, exceeds
the rent payable hereunder by Tenant, or if there is a subletting
of a portion of the Premises by Tenant at a rent in excess of the
subleased portion’s pro rata share of the rent payable
hereunder by Tenant, then Tenant shall pay to Landlord, as
additional rent, forthwith upon Tenant’s receipt of each
installment of any such excess rent, 50% of the full amount of any
such excess rent after deduction of Tenant’s costs in
connection with such assignment or sublet including, without
limitation, attorneys’ fees, brokerage commissions and
modifications to the
38
Premises. The provisions of this
Paragraph shall apply to each and every assignment of the Lease and
each and every subletting of all or a portion of the Premises with
respect to which the consent of the Landlord is required. Each
request by Tenant for permission to assign this Lease or to sublet
the whole or any part of the Premises shall be accompanied by a
warranty by Tenant as to the amount of rent to be paid to Tenant by
the proposed assignee or sublessee. Landlord or its authorized
representatives shall have the right at all reasonable times to
audit the books, records and papers of Tenant relating to any
consideration received in connection with such an assignment or
subletting, and shall have the right to make copies thereof. If the
excess rent being paid shall be found understated, Tenant shall
within thirty (30) days after demand pay the deficiency, and
Landlord’s cost of such audit if understated by more than
five percent (5%) and if the amount paid is so understated more
than once during the Term by more than five percent (5%), Landlord
shall have the right to terminate this Lease upon thirty (30)
days’ notice. For the purposes of this Paragraph 17B, the
term “rent” shall mean all Base Rent, Additional Rent
or other payments and/or consideration payable by one party to
another related to the use and occupancy of all or a portion of the
Premises.
18.
SURRENDER OF
POSSESSION .
Upon the expiration of the Term or
upon the termination of Tenant’s right of possession to all
or a portion of the Premises, whether by lapse of time or at the
option of Landlord as herein provided, Tenant shall forthwith
quietly and peaceably surrender the Premises or portion thereof to
Landlord in good order, repair and condition, ordinary wear, damage
by fire or other casualty, taking by eminent domain or caused by
Landlord, its agents, employees or contractors excepted. Except as
otherwise provided in this Lease, any interest of Tenant in the
alterations, improvements and additions to the Premises made or
paid for by Landlord or Tenant shall, without compensation to
Tenant, become Landlord’s property at the termination of this
Lease by lapse of time or otherwise and such alterations,
improvements and additions shall be relinquished to Landlord in
good condition, ordinary wear, damage by fire or other casualty,
taking by eminent
39
domain or caused by Landlord, its
agents, employees or contractors excepted. Not later than the
termination of the Term or of Tenant’s right of possession
Tenant shall remove office furniture, trade fixtures, office
equipment and all other items of Tenant’s property on the
Premises. Subject to Paragraph 12A above, Tenant shall pay to
Landlord upon demand the cost of repairing any damage to the
Premises and to the Building caused by any removal required
hereunder. If Tenant shall fail or refuse to remove any such
property from the Premises, Landlord shall, at Tenant’s
expense, (i) remove the same or any part in any manner that
Landlord shall choose, repairing any damage to the Premises caused
by such removal, and (ii) store the same without incurring
liability to Tenant or any other person. If Tenant fails to pay
Landlord’s cost relating to such removal, storage and repair
and claim such property within thirty (30) days of termination,
Tenant shall be conclusively presumed to have abandoned the same,
and title thereto shall thereupon pass to Landlord without any cost
either by set-off, credit, allowance or otherwise and Landlord may
destroy or otherwise dispose of the same, but such abandonment
shall not affect Tenant’s obligations with respect to the
costs of removal, storage, repair, destruction and/or
disposition.
19.
HOLDING OVER
.
In addition to performing all of
Tenant’s other obligations hereunder, Tenant shall pay to
Landlord an amount as Rent equal to the greater of (i) the
monthly market rental rate for a term of not less than one
(1) year for similar premises in the Building without regard
to concessions such as tenant improvement allowance and free rent,
if any, or (ii) the sum of one hundred fifty percent (150%) of
one-twelfth the Base Rent and one hundred fifty percent (150%) of
one-twelfth the Additional Rent paid by Tenant during the previous
Calendar Year herein provided, such amount to be paid monthly
during each month or portion thereof for which Tenant shall retain
possession of the Premises or any part thereof after the
termination of the Term or of Tenant’s right of possession,
whether by lapse of time or otherwise, and also shall pay all
damages sustained by Landlord, whether direct or consequential, on
account thereof. At the option of Landlord, expressed
40
in a written notice to Tenant and
not otherwise, if such holding over continues for more than thirty
(30) days, such holding over shall constitute a renewal of this
Lease for a period of one year at such Base Rent and Additional
Rent as would be applicable for such year, and if Landlord does not
so notify Tenant, such holding over shall constitute the Tenant a
tenant-at-will from month to month. The provisions of this
Paragraph 19 shall not be deemed to limit or constitute a waiver of
any other rights or remedies of Landlord provided herein or at
law.
20.
ESTOPPEL CERTIFICATE
.
Tenant agrees that, from time to
time upon not less than twenty (20) days’ prior request by
Landlord, Landlord’s lessor or any mortgagee, Tenant or
Tenant’s duly authorized representative having knowledge of
the following facts will deliver to Landlord a statement in writing
certifying (i) that to Tenant’s knowledge this Lease is
unmodified and in full force and effect (or if there have been
modifications, a description of such modifications and that the
Lease as modified is in full force and effect); (ii) the dates
to which Rent and other charges have been paid; (iii) that
Landlord is not in default under any provision of this Lease, or,
if in default, the nature thereof in detail; (iv) that the
Premises have been-delivered to Tenant by Landlord and accepted by
Tenant (or if not, the reason therefor); (v) that there are no
proceedings pending against Tenant which have been adversely
decided and which would affect Tenant’s obligations under
this Lease (and if not correct, detail regarding such proceeding);
(vi) that Tenant has not made a claim against Landlord which
has not been resolved or satisfied (and if not, correct details
regarding the same); and (vii) such further matters as may be
reasonably requested by Landlord, it being intended that any such
statement may be relied upon by any prospective assignee of
Landlord, any mortgagee or prospective mortgagee of the Building,
any prospective assignee of any such mortgagee, or any prospective
and/or subsequent purchaser or transferee of all or a part of
Landlord’s interest in the Property, the Office
Section or the Building, or any other person having an
interest therein. Tenant shall execute and deliver whatever
instruments may be reasonably required for such
41
purposes, and in the event Tenant
fails so to do within twenty (20) days after demand in writing,
Tenant shall be considered in default under this Lease.
21.
SUBORDINATION
.
This Lease and all rights of Tenant
hereunder are subject and subordinate to the mortgage which now
encumbers the Property and to any and all renewals, modifications,
consolidations, replacements and extensions thereof, and to any
ground lease or similar instrument now against the Building. It is
the intention of the parties that this provision be self-operative
and that no further instrument shall be required to effect such
subordination of this Lease other than the non-disturbance
agreements described below. Tenant shall, however, upon demand at
any time or times execute, acknowledge and deliver to Landlord, any
and all instruments that may be necessary or proper to subordinate
this Lease and all rights of Tenant hereunder to such mortgage or
ground lease or to any mortgage or ground lease which may hereafter
encumber the Property or the Building or to confirm or evidence
such subordination and to confirm or evidence Tenant’s
agreement to attorn to the holder of any such mortgage or the
ground lessor under such ground lease, on condition with respect to
mortgages other than the mortgage which now encumbers the Property,
that such holder or ground lessor shall agree in such instrument (a
“Non-Disturbance Agreement”) that such holder or ground
lessor for so long as Tenant is not in default of those terms,
covenants and conditions of this Lease, beyond applicable periods
of notice and grace, which are to be performed by Tenant
(i) will not disturb Tenant’s possession of the Premises
or other rights under this Lease and (ii) will not join in any
foreclosure action or action to terminate the ground and
(iii) will recognize the Tenant as its tenant on the terms and
conditions of this Lease in the event of a foreclosure, deed in
lieu of foreclosure or termination of a ground lease, as
applicable. Such Non-Disturbance Agreement shall further provide,
at the option of the mortgagee or ground lessor, that in the event
any proceedings are brought for the foreclosure of any mortgage
with respect to which a Non-Disturbance Agreement in Tenant’s
favor is in effect or for the termination of a ground lease with
respect to which a Non-Disturbance
42
Agreement in Tenant’s favor is
in effect, Tenant will attorn, without any deductions or set-offs
whatsoever, to the purchaser upon any such foreclosure sale or to
such ground lessor if so requested to do by such purchaser or
ground lessor, and to recognize such purchaser or ground lessor as
the Landlord under this Lease. Landlord agrees to use reasonable
efforts to cause the holder of the existing mortgage on the
Property to enter into such a Non-Disturbance Agreement with
Tenant, in such holder’s standard form, as promptly as
reasonably possible. For purposes of the foregoing,
“reasonable efforts” shall mean: (a) Landlord
shall, not later than the date hereof, submit the then most current
draft of this Lease (or the execution copy of this Lease, as the
case may be) to Metropolitan Life Insurance Company
(“Met”) with the request that Met promptly review the
Lease and enter into a Non-Disturbance Agreement in the form of
Non-Disturbance Agreement which Met has previously issued to
tenants of the Office Section with such modifications as
Tenant may request, (b) at regular intervals, Landlord shall
renew its request to Met in the event a Non-Disturbance Agreement
has not then been issued and (c) in the event Met indicates
its unwillingness to issue a Non-Disturbance Agreement or that it
is unwilling to issue Non-Disturbance Agreement in the form
requested by Tenant, Landlord shall request that Met discuss any
issues directly with Tenant and/or its counsel. In all event, in
attempting to obtain a Non-Disturbance Agreement for the benefit of
Tenant, Landlord will proceed with diligence and in good faith.
Tenant agrees to execute and deliver at any time and from time to
time, upon the request and at the expense of Landlord or of any
holder of such mortgage or of such purchaser and ground lessor, any
instrument which, in the sole reasonable judgment of such
requesting party, may be necessary or appropriate in any such
foreclosure proceeding or termination or otherwise to evidence such
attornment by Tenant as described herein, on condition that such
party shall agree in such instrument that for so long as Tenant is
not in default of those terms, covenants and conditions of this
Lease, beyond applicable periods of notice and grace, which are to
be performed by Tenant it (x) will not disturb Tenant’s
possession of the Premises or other rights under this Lease and (y)
will not join in any foreclosure action or action to terminate the
ground lease and (z) will recognize the Tenant as its tenant on the
terms and conditions of this Lease in the event of a foreclosure,
deed in lieu of
43
foreclosure or termination of a
ground lease, as applicable. Tenant further waives the provisions
of any statute or rule of law, now or hereafter in effect,
which may give or purport to give Tenant any right or election to
terminate or otherwise adversely affect this Lease or the
obligations of Tenant hereunder in the event any such foreclosure
proceeding or termination is brought, prosecuted or completed.
Tenant and Landlord further agree that if so requested by any
mortgagee or ground lessor of Landlord, this Lease shall be made
superior to any such mortgage or ground lease and that they will
execute such documents as may be reasonably required by such
mortgagee or ground lessor to effect the superiority of this Lease
to such mortgage or ground lease, provided such is in form and
substance-reasonably acceptable to Tenant.
22.
CERTAIN RIGHTS RESERVED BY
LANDLORD .
Landlord shall have the following
rights (but not obligations), each of which Landlord may exercise
without notice to Tenant and, except as provided in Paragraph 14,
without liability to Tenant for damage or injury to property,
person or business on account of the exercise thereof, and the
exercise of any such rights shall not be deemed to constitute an
eviction or disturbance of Tenant’s use or possession of the
Premises and shall not give rise to any claim for set-off or
abatement of Rent:
(i)
To change the Building’s name
or street address.
(ii)
To install, affix and maintain any
and all signs on the exterior and on the interior of the Building
(including, but only if mandated by law, within the
Premises).
(iii)
To decorate or to make repairs,
alterations, additions, or improvements, whether structural or
otherwise, in and about the Building, or any part thereof, and for
such purposes to enter upon the Premises, and during the
continuance of any of said work, to temporarily close doors,
entryways, public
44
space and corridors in the Building
and, upon not less than forty-eight (48) hours’ advance
notice (except in case of emergency), to interrupt or temporarily
suspend services or use of facilities, all without affecting any of
Tenant’s obligations hereunder, so long as the Premises are
reasonably accessible and usable. Landlord’s exercise of its
rights hereunder shall be conducted at such times and in such
manner as to avoid unreasonable interference with Tenant’s
use and occupancy of the Premises. Any exercise of such rights
within the Premises (except for repairs) shall be subject to
Tenant’s consent, which shall not be unreasonably withheld,
conditioned or delayed.
(iv)
To furnish door keys for the entry
door(s) in the Premises at the commencement of this Lease and to
retain at all times, and to use in appropriate instances, keys to
all doors within and into the Premises. Tenant agrees to purchase
only from Landlord