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Home: Sample Business Contracts:

LEASE BY AND BETWEEN

BILLTECH EQUITY PARTNERS, LLC, AS LANDLORD

and

DANGER, INC., AS TENANT


TABLE OF CONTENTS


ARTICLE 1 - REFERENCE, DEFINITIONS AND EXHIBITS    1
     1.1    Definitions    1
     1.2    Effect of Reference to Definitions    3
     1.3    Exhibits    3
ARTICLE 2 - PREMISES, TERM AND COMMENCEMENT OF TERM    4
     2.1    Premises    4
     2.2    Term    4
     2.2    Late Delivery of Premises    4
ARTICLE 3 - RENT, ITS DETERMINATION, COMMENCEMENT AND METHOD OF PAYMENT    5
     3.1    Base Rent    5
     3.2    Additional Rent – Real Estate Taxes    5
     3.3    Additional Rent – Operating Expenses    7
     2.4    Audit Rights    9
     3.5    Rent    10
     3.6    Independent Covenants    10
     3.7    Gross-Up    10
ARTICLE 4 - SECURITY DEPOSIT    10
ARTICLE 5 - UTILITIES AND SERVICES    11
     5.1    Electricity    11
     5.2    Landlord’s Services    12
     5.3    Access and Security    13
ARTICLE 6 - INSURANCE    13
     6.1    Required Coverage    13
     6.2    Writing and Disposition of Insurance Policies    13
     6.3    Mutual Waiver of Subrogation    13
     6.4    Blanket Policies    14
     6.5    Landlord’s Insurance Covenants    14
ARTICLE 7 - TENANT’S ADDITIONAL COVENANTS    14
     7.1    Performing Obligations    14
     7.2    Use    15
     7.3    Maintenance and Repair    15
     7.4    Compliance with Laws    15
     7.5    Payment for Tenant’s Work    16
     7.6    Indemnity    16
     7.7    Personal Property at Tenant’s Risk    17
     7.8    Payment of Landlord’s Cost of Enforcement    17
     7.9    Yield Up    17


   7.10    Subordination    18
   7.11    Estoppel Certificates    18
   7.12    Nuisance    18
   7.13    Changes and Alterations    18
   7.14    Financial Statements    20
   7.15    Holdover    20
ARTICLE 8 - QUIET ENJOYMENT    21
ARTICLE 9 - DAMAGE AND EMINENT DOMAIN    21
     9.1    Fire and Other Casualty    21
     9.2    Eminent Domain    22
ARTICLE 10 - DEFAULTS BY TENANT AND REMEDIES    23
   10.1    Tenant’s Default    23
   10.2    Landlord’s Election    23
   10.3    Reimbursement of Landlord’s Expenses    24
   10.4    Termination of Right of Possession    24
   10.5    Mitigation    25
   10.6    Claims in Bankruptcy    25
   10.7    Landlord’s Right to Cure Defaults    25
   10.8    No Waiver    25
   10.8    Late Charge; Default Interest    26
ARTICLE 11 - ASSIGNMENT AND SUBLETTING    26
   11.1    Prohibition    26
   11.2    Conditions to Consent    26
   11.3    Excess Rents    27
   11.4    Landlord’s Recapture Right    27
   11.5    Assignment or Sublease to an Affiliate    27
   11.6    No Waiver    28
ARTICLE 12 - NOTICES    28
ARTICLE 13 - NOTICE OF LEASE    28
ARTICLE 14 - APPLICABLE LAW, SEVERABILITY, CONSTRUCTION    29
ARTICLE 15 - SUCCESSORS AND ASSIGNS, ETC.    29
ARTICLE 16 - LANDLORD’S ACCESS    30
ARTICLE 17 - CONDITION OF PREMISES    30
   17.1    As Is    30
   17.2    Landlord’s Work    30


ARTICLE 18 - WARRANTY REGARDING BROKER    30
ARTICLE 19 - FORCE MAJEURE    31
ARTICLE 20 - HAZARDOUS MATERIALS    31
ARTICLE 21 - EXTENSION PERIOD    32
   20.1    Option to Extend Lease Term    32
   20.2    Determination of Option Rent    33
   20.3    Annual Increases in Option Rent    33


LEASE

THIS LEASE (the “Lease”) is dated as of the 23rd day of January, 2007 and is entered into by and between Landlord and Tenant named below.

NOW THEREFORE, in consideration of the mutual covenants and agreements set forth herein, and for other good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, the parties hereto hereby agree as follows:

ARTICLE 1

REFERENCE, DEFINITIONS AND EXHIBITS

1.1 Definitions. Whenever used herein, the following terms shall have the following meanings:


Landlord:    Billtech Equity Partners, LLC, a Delaware limited liability company
Landlord’s   
Address:    c/o Everest Partners, LLC
   150 East 58th Street
   Suite 2000
   New York, New York 10155
Landlord’s   
Managing Agent:    Everest Partners, LLC
   150 East 58th Street
   Suite 2000
   New York, New York 10155
Landlord’s   
Local Massachusetts   
Managing Agent:    Everest Partners, LLC
   700 Technology Park Drive
   Suite 102
   Billerica, MA 01821
   Tel: 978-564-8002
   Fax: 978-564-8003
   www.everestllc.com
Tenant:    Danger, Inc., a Delaware corporation
Original Address   
of Tenant:    3101 Park Boulevard
   Palo Alto, CA 94306

 

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Address of Tenant

after Term

Commencement Date:

  

3101 Park Boulevard

Palo Alto, CA 94306

Broker:    The Codman Company, Inc. and The Staubach Company

Term Commencement

Date:

   The later of: (a) March 1, 2007, and (b) the date Landlord delivers possession of the Premises to Tenant, with all Landlord Work substantially completed, subject to Force Majeure and delays caused by Tenant. The Estimated Term Commencement Date is forty-five (45) days after full execution of this Lease.

Rent Commencement

Date:

   Two (2) months following the Term Commencement Date
Original Lease Term:    Three (3) years and two (2) months from the Term Commencement Date (unless the same is earlier terminated or extended in accordance with the terms and conditions of this Lease).

Option to Extend

Original Lease Term:

   One (1) option to extend for three (3) years, in accordance with Article 20 hereof.
Lease Term:    The Original Lease Term, as the same may have been extended or earlier terminated, in accordance with the terms and condition of this Lease.
Premises:    The approximately 5,730 square feet of rentable space on the second floor of the Building, as shown on the plan attached hereto as Exhibit A.
Building:    The building containing approximately 43,422 square feet of rentable space located on the Site. The Building is shown on the plan attached hereto as Exhibit B.
Site:    The site located in Billerica, Massachusetts, having an address of 700 Technology Park Drive, Billerica, Massachusetts 01821 and the Building and all improvements and other buildings now or hereafter located thereon (including, without limitation, all driveways, pavement, parking areas, landscaping, and utilities). A

 

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   legal description of the boundaries of the Site is attached hereto as Exhibit C.
Parking and Loading Docks:    See Section 2.1.
Permitted Uses:    General business office use, and for no other purpose, subject in all cases to applicable Legal Requirements.
Lease Year:    Each of the successive periods of twelve (12) calendar months, beginning with the first day of the first month following the Term Commencement Date (or beginning with the Term Commencement Date, if that is the first day of a month), but if this Lease ends on a day other than the last day of a Lease Year (as defined above), the last Lease Year shall end on the termination date. If the Term Commencement Date is not the first day of a month, the first Lease Year shall include the number of days from the Term Commencement Date through the end of said month.
Tenant’s Proportionate Share:    13.2% (which is calculated by dividing the Premises rentable area by the Building rentable area.)
Landlord’s Mortgagee:    Any party holding a mortgage on the Site including, without limitation, the Premises, given as security for indebtedness owed by Landlord to the holder of the mortgage.

1.2 Effect of Reference to Definitions. Any reference in this Lease to any term defined above shall be deemed, to the extent possible, to mean and include all aspects of the definition set forth above for such term.

1.3 Exhibits. The exhibits listed in this Section and attached to this Lease are incorporated by reference and are a part of this Lease.


Exhibit A:    Plan of Premises
Exhibit B:    Site Plan Showing Building
Exhibit C:    Legal Description of the Boundaries of the Site
Exhibit D:    Landlord’s Work
Exhibit E:    Rules and Regulations

 

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ARTICLE 2

PREMISES, TERM AND COMMENCEMENT OF TERM

2.1 Premises. Landlord hereby leases to Tenant the Premises subject to and with the benefit of the terms, covenants, conditions and provisions of this Lease and all easements, covenants and restrictions appurtenant thereto, if any. Tenant shall have the use, in common with others entitled thereto, of the roadways, driveways, parking areas, sidewalks and all other common areas serving the Building, all subject to reasonable rules and regulations promulgated by Landlord from time to time. In addition, Tenant shall have the right to use, on a first come, first served basis and in common with others entitled thereto, free of charge throughout the Lease Term, the following: (i) parking spaces in the parking area serving the Building, not to exceed a ratio of three (3) parking spaces per 1,000 rentable square feet of Premises; and (ii) one (1) existing loading dock.

2.2 Term. TO HAVE AND TO HOLD the Premises for the Original Lease Term, commencing on the Term Commencement Date, subject to the terms, covenants, agreements and conditions contained in this Lease. Notwithstanding the foregoing, Tenant shall be allowed to access the Premises no earlier than two (2) weeks prior to the Term Commencement Date for the sole purpose of installing furniture, fixtures and equipment in the Premises (the “Installation”); provided, however, that Tenant provides written notice to Landlord of such early occupancy no less than twenty-four (24) hours before such early occupancy. Tenant agrees to access the Premises and perform the Installation subject to the terms and conditions of this Lease, including but not limited to Article 7 of this Lease and the Rules and Regulations set forth in Exhibit E.

2.3 Late Delivery of Premises. Landlord shall use commercially reasonable efforts to deliver possession of the Premises to Tenant in the condition required by this Lease, including without limitation, substantial completion of the Landlord’s Work, on or before the date which is forty-five (45) days after full execution of this Lease. If, despite such efforts, Landlord is unable to deliver such possession by such date, Landlord shall not be subject to any liability therefor, nor shall such failure affect the validity of this Lease. Tenant shall not, however, be obligated to pay Rent or perform any other obligation of Tenant under the terms of this Lease until Landlord delivers possession of the Premises to Tenant, and any period of rent abatement that Tenant would otherwise have enjoyed shall run from the date of delivery of possession and continue for a period equal to what Tenant would otherwise have enjoyed under the terms hereof, but minus any days of delay caused by the acts or omissions of Tenant. If possession of the Premises in the condition required by this Lease is not delivered to Tenant on or before June 1, 2007 (subject to Force Majeure, any delays caused by Tenant and Landlord’s inability, despite its due diligence, to obtain the permits needed to commence and complete Landlord’s Work), Tenant shall have the right and option, upon thirty (30) days’ prior written notice to Landlord and Landlord’s Mortgagee, to cancel this Lease, in which event the parties shall be discharged from all obligations hereunder as of the expiration of such thirty (30) day period unless, on or before the such date, Landlord substantially completes Landlord’s Work. “Substantial completion,” as used herein, shall mean that Landlord’s Work has been completed except for items of work (and, if applicable, adjustment of equipment and fixtures) which can be completed after occupancy has been taken without causing undue interference with Tenant’s use of the Premises (i.e. so called “punch list” items).

 

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ARTICLE 3

RENT, ITS DETERMINATION, COMMENCEMENT AND METHOD OF PAYMENT

3.1 Base Rent. Tenant covenants and agrees to pay, during the Lease Term, to Landlord, or to such other person as Landlord by written notice instructs Tenant to make such payments for Landlord’s benefit and account, without demand (except as otherwise herein specifically provided), at the Address of Landlord set forth in Section 1.1 or at such other place as Landlord may by written notice to Tenant direct, commencing with the Rent Commencement Date, Base Rent, as follows:


Period

   Annual Base Rent    Monthly Installment
of Base Rent

Months 1-2*

   $ 0    $ 0

Months 3-12

   $ 91,680.00    $ 7,640.00

Months 13-24

   $ 94,545.00    $ 7,878.75

Months 25-38

   $ 97,410.00    $ 8,117.50

* Base Rent shall be abated for the first two (2) months of the Lease Term.

The rent shall be paid on the first day of each full calendar month of the Lease Term, and pro rata based on the actual number of days in such month, for any portion of a calendar month included at the beginning or end of the Lease Term, payable on the first day of such month or partial month.

3.2 Additional Rent – Real Estate Taxes. In addition to the Base Rent, Tenant shall also pay to Landlord, as Additional Rent, Tenant’s Proportionate Share of all Real Estate Taxes in excess of Base Year Taxes (the “Tax Obligation”).

(i) For the purposes of this Section 3.2, the following words and terms shall have the following meaning:

(a) “Tax Year” shall mean the twelve-month period commencing July 1st, and each twelve-month period commencing on an anniversary of said date during the term of this lease.

(b) “Base Year Taxes” shall mean the Taxes assessed for the tax fiscal year July 1, 2006 through June 30, 2007 without giving effect to any tax abatement, credit, treaty, refund or other concession. No Real Estate Taxes shall be payable by Tenant for the period beginning on the Commencement Date and ending June 30, 2007.

(c) “Real Estate Taxes” shall mean all taxes including real estate taxes (which term shall include payments in lieu of real estate taxes), assessments, levies, license and permit fees and other governmental charges, general and special, ordinary and extraordinary, foreseen and unforeseen, of any kind and nature whatsoever, which at any time during the Lease Term may be assessed, levied, confirmed, imposed upon, or may become due and payable out of or in

 

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respect of, or become a lien upon, all or any portion of the Site (including, without limitation, all improvements thereto) other than: (i) municipal, state and federal income taxes (if any) assessed against Landlord; or (ii) municipal, state or federal capital levy, gift, estate, succession, inheritance or transfer taxes of Landlord; or (iii) corporation excess profits or franchise taxes imposed upon any corporate owner of the Site, provided, however, that if at any time during the Lease Term the methods of taxation prevailing at the commencement of the Lease Term shall be altered so that in lieu of, as a substitute for, or in addition to, the whole or any part of the taxes, assessments, levies or charges now levied, assessed or imposed on real estate and the improvements thereon, there shall be levied, assessed and imposed a tax, assessment, levy, imposition or charge, wholly or partially as a capital levy or otherwise, on the rents received therefrom, or measured by or based in whole or in part upon the Site and imposed upon Landlord, then all such taxes, assessments, levies, impositions or charges or the part thereof so measured or based, shall be deemed to be included within the term “Real Estate Taxes” for the purposes hereof. In addition to the foregoing, the term “Real Estate Taxes” shall include any new tax of a nature not presently in effect, but which may be hereafter levied, assessed, or imposed upon Landlord or all or any portion of the Site, if such tax shall be based on or arise out of the ownership, use or occupation of all or any portion of the Site.

(ii) Landlord may, at its sole discretion, bill Tenant monthly, quarterly, semi-annually or annually for Tenant’s Tax Obligation. Any bill for a month, quarter or half-year may be rendered on an estimated basis. If Landlord shall render a monthly, quarterly or semi-annual bill on account of any Tax Year, then within one hundred eighty (180) days after the close of such Tax Year, Landlord shall render an annual bill for such Tax Year, which annual bill shall make appropriate adjustment as may be necessary to reflect actual Tenant’s actual Tax Obligation during such Tax Year, including, without limitation, any refund that may be due to Tenant, to be taken as a credit against future payments of Additional Rent due hereunder.

(iii) Any bills for Tenant’s Tax Obligation shall be due at the same time and in the same manner as the next monthly installment of Base Rent is due pursuant to Section 3.1, if Landlord has elected to bill Tenant for Tenant’s Tax Obligation on a monthly basis. If, however, Landlord bills Tenant for its Tenant’s Tax Obligation on a quarterly or half-year basis, or if the Lease Term has terminated or expired, then Tenant’s Tax Obligation shall be due within thirty (30) days after receipt by Tenant of a bill therefor.

(iv) Appropriate credit against any Tenant’s Tax Obligation shall be given for any refund obtained by reason of a reduction in any Real Estate Taxes by the courts or other governmental agency responsible therefor. The original computation of Tenant’s Tax Obligation, as well as reimbursement or payments of additional charges, if any, or allowances, if any, under the provisions of this Section 3.2 shall be based on the original assessed valuations, with adjustments to be made at a later date when the tax refund, if any, shall be paid to Landlord by the taxing authority. Expenditures for legal fees and for other similar or dissimilar expenses incurred in obtaining the tax refund shall be charged against the tax refund before the adjustments are made for any Tax Year, but such charges shall in no event exceed the amount of the tax refund.

 

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(v) If the Term Commencement Date or the expiration or earlier termination of the Lease Term occurs in the middle of a Tax Year, subject to 3.2(i)(b), Tenant shall be liable for only that portion of Tenant’s Tax Obligation in respect of said Tax Year represented by a fraction, the numerator of which is the number of days of the herein Lease Term which falls within said Tax Year, and the denominator of which is three hundred sixty-five (365).

(vi) In the event the first day of the Tax Year in the Town of Billerica should be changed after the Term Commencement Date to a day other than July 1 so as to change the twelve (12) month period comprising a Tax Year, in determining Tenant’s Tax Obligation with respect to Real Estate Taxes payable for the period between July 1 and such changed first day of the Tax Year, Tenant’s Tax Obligation shall be multiplied by a fraction, the numerator of which shall be the number of days elapsing during such period, and the denominator of which shall be three hundred sixty-five (365).

(vii) Any obligation of Tenant or Landlord under this Section 3.2 which shall not have been paid at the expiration of the Lease Term shall survive such expiration and shall be paid when and as the amount of same shall be determined to be due.

3.3. Additional Rent – Operating Expenses. In addition to the Base Rent, Tenant shall also pay to Landlord, as Additional Rent, Tenant’s Proportionate Share of all Operating Expenses over Base Year Operating Expenses (the “Operating Expense Obligation”).

(i) For the purposes of this Section 3.3, the following words and terms shall have the following meaning:

(a) “Computation Year” shall mean each calendar year beginning with calendar year 2008.

(b) “Base Year Operating Expenses” shall mean Operating Expenses for the period January 1, 2007 through December 31, 2007. No Operating Expenses shall be payable by Tenant for the period beginning on the Commencement Date and ending December 31, 2007.

(c) “Operating Expenses” shall mean the aggregate expenses incurred by Landlord in the operation, maintenance and management of the Site during the Lease Term including, without limitation, the following: (i) utilities supplied to the Site (to the extent the same are not being paid directly by Tenant or other tenants of the Building); (ii) “fringe” benefits for employees or contractors engaged on a full-time basis in connection with servicing the Site and payroll taxes, workmen’s compensation insurance premiums and similar costs with respect thereto, and an appropriate portion of same with respect to employees or contractors on a part-time basis; (iii) all insurance obtained by Landlord relating to or otherwise in connection with its ownership or the operation, rental, or management of the Site, the foregoing to include without limitation any liability insurance, rent loss insurance, and any other insurance required by Landlord’s Mortgagee; (iv) services obtained for the benefit of the Site (including, without limitation, snow removal and grounds maintenance); (v) repairs, replacement, repainting, maintenance, supplies and the like for the Site, subject to the exceptions set forth in Section 5.2; (vi) management fees equal to five percent (5%) of gross rentals from the Building per annum;

 

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(vii) legal fees and expenses, excluding any legal fees incurred by Landlord in connection with Landlord’s dealings with any specific tenant of the Building, and any consulting fees and expenses in connection with any reduction of any Operating Expenses or Real Estate Taxes; (viii) auditing fees and expenses; and (ix) depreciation (on a straight line basis) for capital replacements and improvements made by Landlord which are required in the ordinary course of maintaining the Site or Building or which are projected by Landlord to reduce the Operating Expenses thereof, the cost of which shall be amortized over the useful life of the capital replacement or improvement in accordance with generally accepted accounting principles. Notwithstanding the foregoing, the following items shall be excluded from “Operating Expenses”: (i) loan fees, principal or interest payments on any mortgages or other financing arrangements, (ii) leasing commissions, (iii) depreciation for the Site; (iv) capital expenditures, as defined under generally accepted accounting principles, other than as set forth in clause (ix) above; (v) ground rent under ground leases; (vi) utility charges payable by Tenant directly to the applicable provider, (vii) any costs, fines or penalties incurred due to violations by Landlord of any Legal Requirements, this Lease or any other lease in the Building, or due to Landlord’s negligence or willful misconduct, or for the late payment of any obligation of Landlord; (viii) costs covered by any guarantee or warranty; (ix) marketing costs; (x) services or work provided to other tenants but not to Tenant without an additional charge; (xi) the cost of preparing space for occupancy by tenants, (xii) costs reimbursed by insurance proceeds (excluding deductible amounts), (xiii) attorneys’ fees, costs, disbursements, and other expenses incurred in connection with negotiations or disputes with tenants, or in connection with leasing, renovating, or improving space for tenants or other occupants or prospective tenants or other occupants of the Building, (xiv) costs with respect to the creation of a mortgage or a superior lease or in connection with a sale of the Building or the Site, (xv) Landlord’s or Landlord’s property manager’s corporate general overhead or corporate general administrative expenses (specifically excluding any property management fees), (xvi) costs of any service sold to any tenant (including Tenant) or other occupant for which Landlord is entitled to be reimbursed as an additional charge or rental over and above the basic rent and escalations payable under the lease with that tenant, (xvii) overhead profit increments paid to Landlord’s subsidiaries or affiliates for management or other services on or to the Building or for supplies or other materials to the extent that the cost of the services, supplies, or materials exceeds the cost that would have been paid had the services, supplies, or materials been provided by unaffiliated parties on a competitive basis, (xviii) the cost of correcting any building code or other violations which were violations prior to the Commencement Date of this Lease, or costs of alterations required by a change in any Legal Requirements, (xix) the cost of containing, removing, or otherwise remediating any contamination of the Site (including the underlying land and ground water) by any toxic or hazardous materials (including, without limitation, asbestos and “PCB’s”) where such contamination was not caused by Tenant, (xx) costs for sculpture, paintings, or other objects of art (and insurance thereon or extraordinary security in connection therewith), (xxi) wages, salaries, or other compensation paid to any executive employees above the grade of property manager, (xxii) the cost of replacing (as opposed to maintaining and repairing) the roof and the structural components of the Premises and the Building or any of the parking areas at the Site.

(ii) Landlord may, at its sole discretion, bill Tenant monthly, quarterly, semi-annually or annually for Tenant’s Operating Expense Obligation. Any bill for a month, quarter or half-year may be rendered on an estimated basis. Any estimated bill need not include all of the items

 

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mentioned in Section 3.3(i)(a). Any annual bill shall be rendered on the basis of actual costs only. If Landlord shall render a monthly, quarterly or semi-annual bill on account of any Computation Year, then, within one hundred eighty (180) days after the close of such Computation Year, Landlord shall render an annual bill for such year which annual bill shall make all adjustments as may be necessary to reflect actual changes during that year including, without limitation, any refund that may be due to Tenant, to be taken as a credit against future payments of Additional Rent due hereunder. All bills for Tenant’s Operating Expense Obligation shall be due at the same time and in the same manner as the next monthly installment of Base Rent is due pursuant to Section 3.1, if Landlord has elected to bill Tenant for Tenant’s Tax Obligation on a monthly basis. If, however, Landlord bills Tenant for its Tenant’s Operating Expense Obligation on a quarterly or half-year basis, or if the Lease Term has terminated or expired, then Tenant’s Operating Expense Obligation shall be due within thirty (30) days after receipt by Tenant of a bill therefor.

(iii) If the Term Commencement Date or the expiration or earlier termination of the Lease Term occurs in the middle of a Computation Year, Tenant shall be liable for only that portion of Tenant’s Operating Expense Obligation in respect of such Computation Year represented by a fraction, the numerator of which is the number of days of the herein term which falls within the Computation Year, and the denominator of which is three hundred sixty-five (365).

(iv) Any obligation of Tenant or Landlord under this Section 3.3 which shall not have been paid at the expiration of the Lease Term shall survive such expiration and shall be paid when and as the amount of same shall be determined to be due.

3.4 Audit Right. Provided that Tenant shall have first paid all amounts due and payable by Tenant pursuant to this Article 3, Tenant shall have the right, at its own cost and expense, to audit or inspect Landlord’s records with respect to Operating Expenses and Real Estate Taxes, as well as all other Additional Rent payable by Tenant hereunder for any Computation Year. Tenant shall give Landlord not less than thirty (30) days prior written notice of its intention to conduct any such audit. Any such audit shall be conducted on behalf of Tenant by an independent certified public accountant whose compensation with respect to such audit is not on a contingency basis. Landlord shall cooperate with Tenant during the course of such audit, which shall be conducted during normal business hours in Landlord’s headquarters’ office. Landlord agrees to make such personnel available to Tenant as is reasonably necessary for Tenant, or for Tenant’s employees and or agents to conduct such audit. Tenant and its employees, agents, contractors, representatives, consultants, accountants and attorneys shall use their best efforts to keep the results of any such inspection strictly confidential. If such audit reveals that an error was made in the Operating Expenses and Real Estate Taxes previously charged to Tenant for the Computation Year in question, then Landlord shall provide Tenant with a credit against future payments of Additional Rent in the amount of such overpayment, or Tenant shall pay to Landlord any underpayment of any such costs within thirty (30) days after notification thereof. Tenant may not conduct an inspection or have an audit performed more than once during any Computation Year. Failure of Tenant to provide Landlord with a written request to review such books and records within six (6) months after receipt of expense reconciliation with respect to each respective Computation Year shall be deemed a waiver of Tenant’s rights hereunder with respect to such Computation Year. Failure of Tenant to provide

 

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Landlord with the results of Tenant’s audit within sixty (60) days of Tenant’s review of Landlord’s books and records shall be deemed a waiver of Tenant’s rights hereunder with respect to such Computation Year.

3.5 Rent. References in this Lease to “Rent” or “rent” shall be deemed to include both Base Rent and Additional Rent when the context so allows. All monetary obligations of Tenant under this Lease, except for the obligation to pay Base Rent, shall be deemed obligations to pay Additional Rent, unless such presumption is repugnant to the context.

3.6 Independent Covenants. Each covenant, agreement, obligation and/or other provision in this Lease to be performed on Tenant’s part shall be deemed and construed to be a separate and independent covenant of Tenant and not dependent on any other provision of this Lease.

3.7 Gross-Up. If the Building is not fully occupied during any calendar year period (including any calendar year(s) falling within the Base Year), then the variable portion of Operating Expenses for such period shall be deemed to be equal to the total of the variable portion of Operating Expenses which would have been incurred by Landlord if ninety-five percent (95%) percent of the rentable area of the Building had been occupied for the entirety of such calendar year with all tenants paying full rent, as contrasted with free rent, half rent or the like.

ARTICLE 4

SECURITY DEPOSIT

Upon the execution and delivery of this Lease, Tenant shall deliver to Landlord a security deposit in the amount of Sixteen Thousand Two Hundred Thirty-Five and 00/100 Dollars ($16,235.00) (the “Security Deposit”). Landlord shall hold the same throughout the Lease Term as security for the performance by Tenant of all obligations on the part of Tenant hereunder. Landlord shall have the right from time to time, without prejudice to any other remedy Landlord may have on account thereof, to apply such Security Deposit, or any part thereof, to Landlord’s damages arising from, or to cure, any default by Tenant of its obligations hereunder beyond the expiration of any applicable grace periods. If Landlord shall so apply any or all of such Security Deposit, Tenant shall immediately upon demand deposit with Landlord the amount so applied to be held as security hereunder. Landlord shall return the Security Deposit, or so much thereof as shall have theretofore not been applied in accordance with the terms of this Section 4.1, to Tenant on the expiration or earlier termination of the Lease Term and the surrender of possession of the Premises by Tenant to Landlord at such time, provided that there is then existing no default of Tenant (nor any circumstance which, with the passage of time or the giving of notice, or both, would constitute a default of Tenant). While Landlord holds such Security Deposit, Landlord shall have no obligation to pay interest on the same and shall have the right to commingle the same with Landlord’s other funds. If Landlord conveys Landlord’s interest under this Lease, the Security Deposit, or any part thereof not previously applied, shall be turned over by Landlord to Landlord’s grantee, and, if so turned over, Tenant agrees to look solely to such grantee for proper application of the Security Deposit in accordance with the terms of this Article 4, and the return thereof in accordance herewith.

 

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ARTICLE 5

UTILITIES AND SERVICES

5.1 Electricity. It is hereby acknowledged that the Premises are not currently separately metered, and Tenant hereby agrees to pay to Landlord $2.05 per annum per rentable square foot of the Premises for electricity for lights, outlets consumed at the Premises and the heating, ventilating, and air-conditioning (“HVAC”) distribution to the Premises during normal business hours, which amount may be increased from time to time to an amount not to exceed the actual increase in the cost of electricity charged by the utility company, such payment to be made in the same manner and simultaneously with the payment of Rent hereunder. At Landlord’s cost, Landlord reserves the right to separately meter electricity service to the Premises in the future during the Term in which case Tenant would pay the utility company directly for such electricity in lieu of paying the electricity charge described above. Except as specifically provided in this Lease, Landlord shall be under no obligation to furnish any utilities or services to the Premises and shall not be liable for any interruption or failure in the supply of any such utilities or services to the Premises. Tenant acknowledges that such HVAC distribution referenced above shall be provided during normal business hours. At Tenant’s written request, Landlord shall provide additional HVAC distribution to the Premises for an additional cost of $50.00 per hour.

Notwithstanding anything contained in this Lease to the contrary, if (i) an interruption or curtailment, suspension or stoppage of an Essential Service (as said term is hereinafter defined) shall occur, except any of the same due to any act or neglect of Tenant or Tenant’s agents employees, contractors or invitees or any person claiming by, through or under Tenant (any such interruption of an Essential Service being hereinafter referred to as a “Service Interruption”), and (ii) such Service Interruption occurs or continues as a result of the gross negligence or a wrongful conduct of the Landlord or Landlord’s agents, servants, employees or contractors, and (iii) such Service Interruption continues for more than seven (7) consecutive business days after Landlord shall have received notice thereof from Tenant, and (iv) as a result of such Service Interruption, the conduct of Tenant’s normal operations in the Premises is materially and adversely affected, then there shall be an abatement of one day’s Base Rent and Additional Rent for each day during which such Service Interruption continues after such seven (7) business day period; provided, however, that if any part of the Premises is reasonably useable for Tenant’s normal business operations or if Tenant conducts all or any part of its operations in any portion of the Premises notwithstanding such Service Interruption, then the amount of each daily abatement of Base Rent and Additional Rent shall only be proportionate to the nature and extent of the interruption of Tenant’s normal operations or ability to use the Premises. The rights granted to Tenant under this paragraph shall be Tenant’s sole and exclusive remedy resulting from a failure of Landlord to provide services, and Landlord shall not otherwise be liable for any loss or damage suffered or sustained by Tenant resulting from any failure or cessation of services. For purposes hereof, the term “Essential Services” shall mean access to the Premises and electricity, but only to the extent that Landlord has an obligation to provide same to Tenant under this Lease. Any abatement of Base Rent under this paragraph shall apply only with respect to Base Rent allocable to the period after each of the conditions set forth in subsections (i) through (iv) hereof shall have been satisfied and only during such times as each of such conditions shall exist.

 

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5.2 Landlord’s Services. Landlord, during the Lease Term, shall provide the following services, the cost of which shall be included in the Operating Expenses (except to the extent specifically excluded herein or under Section 3.3(i)(c):


  (i) the repair, maintenance and replacement (when necessary or appropriate) of the structural and mechanical components of the Premises and Building, including the roof structure and membrane, the foundation, the exterior walls and all other structural elements of the Building, all mechanical, electrical, plumbing and life-safety systems and all exterior glass (but specifically excluding all interior glass); provided, however, that notwithstanding anything to the contrary contained herein, the cost of replacing (as opposed to maintaining and repairing) the structural components of the Premises and Building shall not be included in Operating Expenses or otherwise charged to Tenant;

  (ii) the maintenance of the landscaping on the Site;

  (iii) the maintenance, repair and replacement (when necessary or appropriate) of the parking areas located on the Site; provided, however, that notwithstanding anything to the contrary contained herein, the cost of replacing (as opposed to maintaining and repairing) such parking areas shall not be included in Operating Expenses or otherwise charged to Tenant;

  (iv) the removal of snow and ice from the parking areas, driveways and walkways located on the Site;

  (v) the insurance which Landlord is required to maintain on the site pursuant to Article 6 below;

  (vi) the management of the Site; and

  (vii) exterior lighting and repair and replacement thereof;

  (viii) janitorial services Monday through Friday, excluding holidays;

  (ix) the replacement of all light bulbs and ballasts in the Premises, as necessary; provided, however, that the cost thereof shall not be included in Operating Expenses but shall be charged to Tenant directly; and

  (x) subject to Section 5.1, HVAC, electricity and water to the Premises and Building.

Landlord shall never be liable for damages caused by its failure to make any repairs required hereunder, provided that Landlord has used reasonable efforts to attempt to have such repair made, after having been notified by Tenant that such repair must be made promptly and that Tenant will be damaged by the failure to make such repairs promptly.

 

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5.3 Access and Security. Tenant shall have access to the Premises twenty-four (24) hours a day, seven (7) days a week, fifty-two (52) weeks per year. Tenant shall be solely responsible, at Tenant’s sole cost and expense, for security for the Premises.

ARTICLE 6

INSURANCE

6.1 Required Coverage. Tenant covenants and agrees with Landlord that during the Lease Term the following insurance shall be obtained by Tenant and carried at Tenant’s sole expense:


  (a) Tenant’s commercial general liability insurance insuring Tenant against liability for injury to persons and damage to property which may be claimed to have arisen out of Tenant’s business operations or its use or occupancy of the Premises or Building, including contractual liability coverage, and with limits at least equal to $2,000,000.00 per occurrence and $2,000,000.00 in the aggregate, or such higher limits in any case as may be customarily carried in Massachusetts by prudent occupants of similar property.

  (b) Worker’s Compensation covering all Tenant’s employees working on the Premises, as required by law.

  (c) Such additional insurance (including, without limitation, business interruption insurance) as Landlord or Landlord’s Mortgagee shall reasonably require, provided that such insurance is in an amount and of the type customarily carried in Massachusetts by prudent occupants of similar property.

At Tenant’s election, any of the above coverages may be provided by any combination of primary or excess insurance policies.

6.2 Writing and Disposition of Insurance Policies. All insurance required under Section 6.1 above shall be written with companies with ratings by A.M. Best Company of A-VIII or higher and in forms customarily in use from time to time in the Greater Boston area. Tenant shall furnish Landlord certificates of insurance evidencing such coverage on or before the Term Commencement Date. Such certificates shall provide that the coverage thereunder may not be canceled without thirty (30) days prior written notice to Landlord, Landlord’s property manager, Landlord’s Mortgagee (the name and address of which Landlord has provided to Tenant) and Tenant. Tenant agrees that any commercial general liability insurance which Tenant may carry with respect to the Premises shall list Landlord and Landlord’s Mortgagee (the name and address of which Landlord has provided to Tenant) as additional insureds.

6.3 Mutual Waiver of Subrogation. Landlord agrees to insure the Building and Premises (excluding the Tenant’s Property, as defined below) in accordance with Section 6.5 and Landlord’s personal property including its business papers, furniture, fixtures, and equipment (collectively, “Landlord’s Property”). Accordingly, Landlord agrees that Tenant will have no

 

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liability to Landlord in the event that Tenant damages or destroys, negligently or otherwise, all or any part of Landlord’s Property. Landlord will cause to be placed in its insurance policies covering Landlord’s Property a waiver of subrogation so that its insurance company will not become subrogated to Landlord’s rights and will not be able to proceed against Tenant in connection with any such damage or destruction. Tenant agrees to insure its personal property, including its business papers, furniture, fixtures, and equipment (collectively, “Tenant’s Property”). Accordingly, Tenant agrees that Landlord will have no liability to Tenant in the event Landlord damages or destroys, negligently or otherwise, all or any part of Tenant’s Property. Tenant will cause to be placed in its insurance policies covering Tenant’s Property a waiver of subrogation so that the insurance company will not become subrogated to Tenant’s rights and will not be able to proceed against Landlord in connection with any such damage or destruction. Landlord and Tenant, therefore, each hereby release the other, its officers, directors, employees and agents, from any and all liability or responsibility (to the other or anyone claiming through or under them by way of subrogation or otherwise) for any loss or damage to property covered by valid and collectible insurance (or which would have been covered by such insurance had the releasing party obtained the insurance required under this Lease), even if such loss or damage shall have been caused by the fault or negligence of the other party, or anyone for whom such party may be responsible. Landlord and Tenant each agree that any fire and extended coverage insurance policies will include a clause or endorsement to the effect that any such release shall not adversely affect or impair said policies or prejudice the right of the releaser to recover thereunder, as long as the same shall be obtainable without extra costs, or, if extra cost shall be charged therefor, so long as the other party pays such extra cost. If extra cost shall be chargeable therefor, each party shall advise the other party and of the amount of the extra cost, and the other party, at its election, may pay the same, but shall not be obligated to do so.

6.4 Blanket Policies. Nothing contained herein shall prevent Tenant from taking out insurance of the kind and in the amounts provided for herein under a blanket insurance policy or policies covering properties other than the Premises, provided however, that any such policy or policies of blanket insurance shall, as to the Premises, comply as to endorsements and coverage with the provisions herein.

6.5 Landlord’s Insurance Covenant. Landlord covenants and agrees that, during the Lease Term, it shall obtain all risk insurance against damage by fire or other casualty in an amount equal to the replacement cost of the Building and Premises as reasonably determined from time to time by Landlord. Tenant’s Proportionate Share of the cost of such insurance shall be paid by Tenant as an Operating Expense.

ARTICLE 7

ADDITIONAL COVENANTS

Tenant covenants and agrees during the Lease Term and such further time as Tenant occupies the Premises or any part thereof:

7.1 Performing Obligations. To perform fully, faithfully and punctually all of the obligations of Tenant set forth in this Lease; and to pay when due Rent and all charges, rates and other sums which by the terms of this Lease are to be paid by Tenant.

 

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7.2 Use. To use the Premises only for the Permitted Uses, and for no other purposes, without the written consent of Landlord, which consent shall not be unreasonably withheld.

7.3 Maintenance and Repair. At Tenant’s expense, and except for reasonable wear and tear and damage from fire or other casualty, to keep the Premises, including, without limitation, all interior glass, all utilities, pipes, conduits, drains, and other installations located within the Premises, clean, neat and in good order, repair and condition. Tenant shall keep the Premises and such installations in as good condition, order and repair as the Premises and such installations are at the Term Commencement Date or such better condition as the Premises or such installations thereafter may be put, reasonable wear and use and damage by fire or other casualty only excepted, it being understood that the foregoing exception for reasonable wear and use shall not relieve Tenant from the obligation to keep the Premises and such installations in good order, repair and condition including, without limitation, all necessary and ordinary non-structural repairs, replacements and the like. Landlord agrees to maintain and repair the HVAC exclusively servicing the Premises. If any HVAC unit exclusively servicing the Premises or any major component thereof such as the compressor or the fan motor needs to be replaced during the Lease Term, Landlord shall be responsible for such replacement, and the entire cost thereof shall be amortized on a straight line basis over a period equal to the useful life thereof for federal income tax purposes and charged to Tenant to the extent of the amortized amount falling within the then remaining Lease Term. Tenant also agrees to abide by reasonable and non-discriminatory rules and regulations which may be adopted by Landlord from time to time, including the Rules and Regulations attached hereto as Exhibit E.

7.4 Compliance with Laws. At Tenant’s sole cost and expense, to comply promptly with all present and future laws, ordinances, orders, rules, regulations and requirements of all federal, state and municipal governments, departments, commissions, boards and officials, foreseen and unforeseen, ordinary as well as extraordinary, which may be applicable to the Premises or to Tenant’s use, occupancy or presence in or at the Premises or the Site, including, as to Tenant’s use of the Premises or as a result of any alterations or additions made by or on behalf of Tenant, except for Landlord’s Work, the Americans with Disabilities Act (“ADA”) and all laws with respect to the handling, storage and disposal of hazardous materials (“Legal Requirements”), except that Tenant may defer compliance so long as the validity of any such Legal Requirement shall be contested by Tenant in good faith and by appropriate legal proceedings, and:


  (a) If by the terms of such Legal Requirement, compliance therewith pending the prosecution of any such proceeding may legally be delayed without the incurrence of any lien, charge or liability of any kind against the Premises or Site and without subjecting Tenant or Landlord to any liability, civil or criminal, for failure so to comply therewith, Tenant may delay compliance therewith until the final determination of such proceeding, or

  (b)

If any lien, charge or civil liability would be incurred by reason of any such delay, Tenant nevertheless may contest as aforesaid and delay as aforesaid, provided that such delay would not subject Landlord to criminal liability or fine, and Tenant (i) furnishes to Landlord security, reasonably

 

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satisfactory to Landlord, against any loss or injury by reason of such contest or delay, and (ii) prosecutes the contest with due diligence; and


  (c) Such delay in compliance will not constitute a default by Landlord under any lease, mortgage or other agreement, will not affect the use of all or any portion of the Site by Landlord or any tenant of the Site, and will not adversely affect the sale, leasing, or refinancing of all or any portion of the Site.

Notwithstanding the foregoing, Landlord shall be responsible for compliance of the Building as initially constructed and the Premises as of the Commencement Date, with all applicable Legal Requirements, including, without limitation, the ADA, and Landlord hereby covenants and agrees to indemnify, defend, and hold Tenant harmless from, any and all costs, damages, claims, liability, judgments, expenses, reasonable attorneys’ fees, and penalties which may arise out of any actual or alleged violations of such legal Requirements or the ADA with respect to the initial construction of the Premises (sometimes herein referred to as the “Landlord’s Work”). During the Term of the Lease, Landlord shall bear the responsibility and cost of complying with the ADA with respect to the common areas and with respect to the Building’s structure and the Building’s utility and life-safety systems, other than compliance that is necessitated by Tenant’s use of the Premises or as a result of any alterations or additions made by or on behalf of Tenant, except for Landlord’s Work.

Notwithstanding anything in this Lease to the contrary, in no event shall Tenant be responsible for any alterations to the Premises required due to a change in Legal Requirements at any time during the Lease Term, either directly or as part of Operating Expenses, other than compliance that is necessitated by Tenant’s use of the Premises or as a result of any alterations or additions made by or on behalf of Tenant, except for Landlord’s Work.

7.5 Payment for Tenant’s Work. To pay promptly when due the entire cost of any work at or on the Premises undertaken by Tenant so that the Premises shall at all times be free of liens for labor and materials; promptly to clear the record of any notice of any such lien; to procure all necessary permits and before undertaking such work; to do all of such work in a good and workmanlike manner, employing materials of good quality and complying with all governmental requirements; and to save Landlord harmless and indemnified from all injury, loss, claims or damage to any person or property occasioned by or growing out of such work, except to the extent such loss, claim or damage is caused by the gross negligence of Landlord, its agents or employees.

7.6 Indemnity. Subject to Section 6.3, to save Landlord harmless and indemnified from, and to defend Landlord against, all injury, loss, claims or damage (including reasonable attorneys’ fees) to any person or property while on the Premises unless arising from any omission, fault, negligence or other misconduct of Landlord, or its agents, servants, employees, or contractors; and to save Landlord harmless and indemnified from, and to defend Landlord against, all injury, loss, claims or damage (including reasonable attorneys’ fees) to any person or property anywhere occasioned by any omission, neglect or default of Tenant or Tenant’s agents, servants, employees, contractors, guests, invitees or licensees.

 

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Landlord covenants and agrees during the Lease Term and such further time as Tenant occupies the Premises or any part thereof, subject to Section 6.3, to save Tenant harmless and indemnified from, and to defend Tenant against, all injury, loss, claims or damage (including reasonable attorneys’ fees) arising from (i) any willful, negligent or tortious act or omission on the part of Landlord, its agents, contractors, or employees; or (ii) any failure on the part of Landlord to perform or comply with any of the covenants, agreements, terms, provisions, conditions or limitations contained in this Lease on its part to be performed or complied with.

7.7 Personal Property at Tenant’s Risk. That all of Tenant’s personal property, equipment, inventory and the like from time to time upon the Premises shall be at the sole risk of Tenant; and that Landlord shall not be liable for any damage which may be caused to such property or the Premises or to any person for any reason including, without limitation, the bursting or leaking of or condensation from any plumbing, cooling or heating pipe or fixture, except to the extent caused by the gross negligence or willful misconduct of Landlord, its agents and employees and not covered by insurance carried or required to be carried by Tenant under the Lease.

7.8 Payment of Landlord’s Cost of Enforcement. To pay on demand Landlord’s expenses, including reasonable attorneys’ fees, incurred in enforcing any obligation of Tenant under this Lease or in curing any default by Tenant under this Lease, provided that Landlord is successful in enforcing such obligation or has a right under this Lease to cure such default.

7.9 Yield Up. At the termination of this Lease, peaceably to yield up the Premises clean and in good order, repair and condition and in compliance with all applicable Legal Requirements (except to the extent Landlord was required hereunder to comply with such Legal Requirements), reasonable wear and tear and damage by fire or casualty excepted, and to deliver to Landlord all keys to the Premises or any part thereof. Any alteration, addition or improvement in, on, or to the Premises made or installed by Tenant shall become a part of the realty and belong to Landlord without compensation to Tenant upon the expiration or sooner termination of the Term, at which time title shall pass to Landlord under this Lease as if by a bill of sale, unless Landlord elects otherwise and notifies Tenant at the time of installation to remove any such tenant improvements prior to the expiration of the Lease Term. Notwithstanding the foregoing, any and all trade equipment (including but not limited to manufacturing and processing equipment), trade fixtures, furniture, data lines, inventory and business equipment shall remain Tenant’s property and shall be removed by Tenant at the expiration or earlier termination of this Lease. Upon demand by Landlord, Tenant shall remove, at Tenant’s sole cost and expense, forthwith and with all due diligence (but in any event prior to the expiration or earlier termination of the Lease Term), any such alterations, additions or improvements which are designated by Landlord to be removed at the time of installation, and Tenant shall forthwith and with all due diligence, at its sole cost and expense, repair any damage to the Premises or the Building or Site caused by such removal. In the event Tenant fails so to remove any such alterations, additions and improvements or fails to repair any such damage to the Premises, the Building or the Site, Landlord may do so and collect from Tenant the cost of such removal and repair in accordance with Section 7.8 hereof.

 

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7.10 Subordination. Upon the request of Landlord, to execute and deliver all such instruments as may reasonably be requested to subordinate this Lease to any mortgages or deeds of trust securing notes or bonds executed by Landlord and to all advances made thereunder and to the interest thereon and all renewals, replacements and extensions thereof, provided that Landlord first obtains from Landlord’s Mortgagee and delivers to Tenant a written agreement that provides substantially that so long as no Event of Default has occurred and is then continuing and so long as Tenant performs its obligations under this Lease, no foreclosure of, deed given in lieu of foreclosure of, or sale under the encumbrance, and no steps or procedures taken under the encumbrance, shall affect Tenant’s rights hereunder. Landlord’s Mortgagee may at any time subordinate its mortgage or deed of trust to this Lease, without Tenant’s consent, by notice in writing to Tenant and thereupon this Lease shall be deemed prior to such mortgage or deed of trust without regard to their respective dates of execution, delivery and recording; and in that event such mortgagee or trustee shall have the same rights with respect to the Lease as though it had been executed and delivered (and notice thereof recorded) prior to the execution and delivery and recording of the mortgage or deed of trust. Landlord agrees to use commercially reasonable efforts to obtain a subordination and non-disturbance agreement from the present mortgagee of record in a form reasonably satisfactory to Tenant, provided, however, that Landlord shall not be required to expend any funds in connection therewith.

7.11 Estoppel Certificates. From time to time, upon not less than fifteen (15) days prior written request by Landlord, to execute, acknowledge and deliver to Landlord, for delivery to a prospective purchaser or mortgagee of the Premises or the Site or to any assignee of any mortgage of the Premises or the Site, a statement in writing certifying: (a) that this Lease is unamended (or, if there have been any amendments, stating the amendments); (b) that it is then in full force and effect, if that be the fact; (c) the dates to which Rent and any other payments to Landlord have been paid; (d) any defenses, offsets and counterclaims which Tenant, at the time of the execution of said statement, believes that Tenant has with respect to Tenant’s obligation to pay Rent and to perform any other obligations under this Lease or that there are none, if that be the fact; and (e) such other data as may reasonably be requested. Any such statement may be relied upon by such prospective purchaser or mortgagee of the Premises, or portion thereof, or any assignee of any mortgagee of the Premises, or portion thereof.

7.12 Nuisance. At all times during the Lease Term and such further time as Tenant occupies the Premises, not to injure, overload, deface or otherwise harm the Premises; nor commit any nuisance; nor to do or suffer any waste to the Premises; nor permit the emission of any objectionable noise or odor; nor make any use of the Premises which is improper, or contrary to any Legal Requirement or which will invalidate any insurance policy covering the Premises or any portion thereof, including, without limitation, the handling, storage and disposal of any hazardous material.

7.13 Changes and Alterations. Except as otherwise explicitly set forth herein, Tenant shall have no authority, without the express written consent of Landlord, which consent shall not be unreasonably withheld, conditioned or delayed, to alter, remodel, reconstruct, demolish, add to, improve or otherwise change the Premises, except that Tenant shall have such authority, without the consent of Landlord, to make repairs to the Premises and do such things as are appropriate to

 

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comply with the obligations imposed on Tenant under other provisions of this Lease and to make “minor alterations” as set forth below.

Tenant shall not construct or permit any alterations, installations, additions or improvements including any interior or exterior signs (“Alterations”) to the Premises or the Building without having first submitted to Landlord plans and specifications therefor for Landlord’s approval, which approval shall not be unreasonably withheld or delayed provided that:


  (a) if the improvement involves a sign or will otherwise be visible from the exterior, then the improvement must be reasonably compatible with the architectural and aesthetic qualities of the Premises and the Site. Landlord shall, at its cost, install building standard signage in the lobby of the Building and at the entrance to the Premises; and

  (b) the improvement must be non-structural and have no effect on the plumbing, heating and cooling, mechanical, electrical or other systems or services in the Premises, and the improvement (except for signs) must be entirely within the Premises; and

  (c) the change, when completed, will not adversely affect the value of the Premises or the Site; and

  (d) Tenant demonstrates to Landlord’s satisfaction that the improvement will be made in accordance with all applicable Legal Requirements, using good quality materials and good quality construction practices, and will not result in any liens on the Premises; and

  (e) as soon as such work is completed, Tenant will have prepared and provide Landlord with “as-built” plans (in form acceptable to Landlord) showing all such work; and

  (f) Tenant will comply with any rules or requirements reasonably promulgated by Landlord in connection with the doing of any work, and if requested by Landlord, Tenant will obtain and maintain Builder’s Risk insurance in connection with such work.

Tenant shall have the right to make “minor alterations” from time to time in the Premises without obtaining Landlord’s prior written consent therefor, provided that all of such work is non-structural, conforms to all of the above requirements in all respects except for (e), and further provided that Tenant provides Landlord with a written description of such work (and such other data as Landlord may request) prior to commencing any such alteration, and further provided that the aggregate cost of such minor alterations may not exceed $10,000 in any twelve (12) month period.

 

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Notwithstanding anything to the contrary herein, but subject to the requirements of this Section 7.13 (including, without limitation, the requirement that Tenant obtain the prior written consent of Landlord to any such installation, which consent shall not be unreasonably withheld or delayed), Tenant may install, maintain, and replace, in a location to be mutually agreed upon by Landlord and Tenant on the roof of the Building or on the Site, a satellite communications dish and antenna and related equipment. Tenant shall do so at its sole cost and expense and in accordance with all applicable Legal Requirements, and shall defend, indemnify and hold Landlord harmless from and against any claims, costs or expenses incurred by Landlord as a result of such installation, maintenance or replacement by Tenant. At Landlord’s request, Tenant shall coordinate any such roof installation hereunder with Landlord’s roofing contractor. Tenant shall give prior written notice to Landlord of any work by Tenant which shall involve any penetration of the roof, and Landlord, or Landlord’s contractor, shall be present during any such work. Tenant shall deliver to Landlord evidence reasonably satisfactory to Landlord that any roof-mounted equipment is properly secured so as to withstand snow and wind. Any such satellite dish and related equipment and cabling shall remain the property of Tenant during the Lease Term and after the expiration thereof and shall be removed by Tenant at the expiration of the Lease Term in accordance with Section 7.9.

7.14 Financial Statements. So long as Tenant is a corporation whose stock is traded on a public exchange, Tenant shall not be required to furnish Landlord with financial statements. Tenant’s statement of net worth, as reported in its annual report to its shareholders or in any forms required to be submitted to the Securities and Exchange Commission, shall be acceptable in lieu of any financial statements otherwise required hereunder and shall be conclusive with respect to the items reported therein. In the event that Tenant’s stock is not traded on a public exchange, at Landlord’s request, Tenant shall deliver to Landlord a copy, certified by an officer of Tenant as being a true and correct copy, of Tenant’s most recent audited financial statement, or, if unaudited, certified by Tenant’s chief financial officer, as being true, complete and correct in all material respects. Notwithstanding the foregoing, Landl