EXHIBIT 10.4
FORM OF USE AND OCCUPANCY AGREEMENT
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This Agreement is dated as of __________, 2000, between Xxxxxx X. Xxxxxx,
Inc., a Massachusetts corporation ("Parent"), and c-quential Inc., a Delaware
corporation ("Sub").
WHEREAS, Parent, Sub and certain Affiliates of Parent and Sub have entered
into a Reorganization Agreement dated as of ___________, 2000 (the
"Reorganization Agreement") pursuant to which Parent, together with the other
members of the Parent Group, is assigning and transferring to Sub and the other
members of the Sub Group certain assets associated with the Sub Business in
exchange for the assumption by Sub and the other members of the Sub Group of
certain liabilities and obligations associated with such Sub Business and the
issuance by Sub to Xxxxxx X. Xxxxxx International, Inc., a Delaware corporation
and the parent of Sub of shares of capital stock of Sub on such terms and
conditions as are contained therein;
WHEREAS, Parent and certain members of the Parent Group currently lease the
Leased Premises; and
WHEREAS, the Reorganization Agreement provides that Parent and Sub shall
enter into an agreement relating to the continued use and occupancy of a portion
of the Leased Premises by Sub for a transition period following the Effective
Date, and this Agreement is entered into in order to fulfill that provision.
NOW, THEREFORE, in consideration of the foregoing and the other agreements
and covenants contained herein, and for other good and valuable consideration,
the receipt and sufficiency of which are hereby acknowledged, the parties hereto
agree as follows:
SECTION 1. DEFINITIONS.
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Section 1.1 Defined Terms. For purposes of this Agreement, the following
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terms shall have the following meanings:
"Ancillary Agreements" shall have the meaning given to such term in the
Reorganization Agreement.
"Common Areas" shall have the meaning set forth in Section 2.1 hereof.
"Effective Date" shall have the meaning given to such term in the
Reorganization Agreement.
"Group" shall have the meaning given to such term in the Reorganization
Agreement.
"Leased Premises" shall mean the premises leased by Parent and the other
members of the Parent Group as set forth in Schedule A attached hereto.
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"License Fee" shall have the meaning set forth in Section 3 hereof.
"Master Lease" shall mean, with respect to any Leased Premise, the lease
agreement between Parent or the applicable member of the Parent Group and the
landlord thereunder.
"Parent" shall mean Xxxxxx X. Xxxxxx, Inc., a Massachusetts corporation.
"Parent Group" shall have the meaning given to such term in the
Reorganization Agreement.
"Reorganization Agreement" shall have the meaning set forth in the
recitals.
"Related Services" shall have the meaning set forth in Section 2.3 hereof.
"Space" shall have the meaning set forth in Section 2.1 hereof.
"Space License" shall have the meaning set forth in Section 2.1 hereof.
"Sub" shall mean c-quential, Inc., a Delaware corporation.
"Sub Business" shall have the meaning given to such term in the
Reorganization Agreement.
"Sub Group" shall have the meaning given to such term in the Reorganization
Agreement.
"Term" shall have the meaning set forth in Section 6.1 hereof.
Section 1.2 Capitalized Terms. All other capitalized terms used herein
and not defined shall have the meanings given to them in the Reorganization
Agreement.
SECTION 2. LICENSES.
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Section 2.1 License of Space. Parent hereby grants, and agrees to cause
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the applicable members of the Parent Group to grant, Sub and the applicable
members of the Sub Group a license (the "Space License") to use and occupy the
office space at the Leased Premises as indicated on Schedule B attached hereto
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(collectively, the "Space"), including the right to utilize all rest rooms,
cafeteria and fitness center facilities, outdoor facilities generally available
to employees of Parent and/or the applicable member of the Parent Group,
sidewalks, driveways, parking lots and any other common areas available to
Parent or another member of the Parent Group under the applicable Master Lease
(as the same is available, the "Common Areas"), subject in all cases to the
provisions of this Agreement. In order to effect the Space License granted
hereunder, each of Sub and Parent agrees to cause the applicable member of its
Group to execute and deliver herewith an executed counterpart of Schedule B
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hereto. Sub hereby acknowledges and agrees that the Space is being licensed "as
is," and that neither Parent nor any Parent Group member makes any warranty,
covenant or representation that the Space shall be other than in its present
condition. The parties expressly acknowledge that this Agreement does not
constitute a demise by Parent or a Parent Group member of any real
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property interest in the Leased Premises (including, without limitation, the
Space) and, consequently, neither Sub nor any Sub Group member shall be entitled
to any rights or remedies to which a subtenant may be entitled at law or in
equity, unless such party shall have been expressly afforded such rights and
remedies pursuant to the provisions of this Agreement. This Agreement is subject
and subordinate to the Master Leases and, consequently, if any Master Lease
expires or terminates for any reason whatsoever, the Space License with respect
to the Leased Premises thereunder shall expire.
Section 2.2 Related Services. During the term of this Agreement, Parent
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will provide, or cause to be provided, the following services (the "Related
Services") related to Sub's use and occupancy of the Space:
(a) all utilities consumed on or in connection with the use and
occupancy of the Space, including but not limited to water, sewer, gas,
electricity, heat, ventilation and air conditioning;
(b) maintenance services for the applicable building (e.g.,
janitorial/custodial, repairs, elevators, plants) and for the grounds on
the Leased Premises (e.g., landscaping, snow removal, paving) with respect
to the Space (including all rest rooms located in the building and all
parking lots and walkways, sidewalks, and driveways providing for access to
and from the Space);
(c) receipt and distribution of Sub's incoming and outgoing mail
and other shipments and deliveries; and
(d) reception and security services.
Parent will provide, or cause a member of the Parent Group to provide, each of
the Related Services with respect to the Space and Sub's operations conducted
thereat to the extent required to accommodate Sub's reasonable needs, and in the
same manner of quality, quantity and timeliness as such services are provided to
the rest of the building and the Leased Premises and the operations conducted
therein, but in no event in a materially lesser manner than such services were
provided prior to the date hereof.
Section 2.3 Consents. Parent and Sub shall cooperate and use reasonable
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efforts to obtain, and cause the members of their respective Group to obtain,
any required consents of Landlords or other Persons with respect to the Space
License granted hereunder. All fees and expenses incurred by the parties
(including the reasonable fees and expenses of counsel to the parties) in
connection with obtaining third party consents shall be paid by Sub.
SECTION 3. LICENSE FEE. Sub agrees to pay to Parent a monthly license fee (the
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"License Fee") for the use and occupancy of the Space, including the Common
Areas and the provision of the Related Services, in the aggregate amount as set
forth on any Schedule B attached hereto, in each case payable on the first
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business day of each calendar month during the term of this Agreement. Sub shall
pay the License Fee with respect to a particular Leased Premise until the
termination of the License for such Leased Premise. The parties
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acknowledge and agree that the License Fee with respect to the Space shall be
based on the applicable rent for such Leased Premises and Sub's proportionate
use and occupancy of Space at such Leased Premises, and shall be computed in
accordance with the parties' past practices in respect of similar facilities
fees relating to the Leased Premises prior to the Effective Date. With respect
to any period of use or occupancy of the Space, which is less than a full
calendar month, the License Fee with respect to such period shall be
appropriately pro-rated.
SECTION 4. LIMITATION OF LIABILITY INDEMNIFICATION.
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IN NO EVENT SHALL ANY MEMBER OF THE PARENT GROUP OR SUB GROUP BE LIABLE TO
ANY OTHER MEMBER OF THE PARENT GROUP OR SUB GROUP FOR ANY SPECIAL,
CONSEQUENTIAL, INDIRECT, INCIDENTAL OR PUNITIVE DAMAGES OR LOST PROFITS, HOWEVER
CAUSED AND ON ANY THEORY OF LIABILITY (INCLUDING NEGLIGENCE) ARISING IN ANY WAY
OF THIS AGREEMENT, WHETHER OR NOT SUCH PARTY HAS BEEN ADVISED OF THE POSSIBILITY
OF SUCH DAMAGES. Notwithstanding the foregoing, each of Parent and Sub shall
indemnify and hold harmless the other against any claims, liability, loss,
damage or expense (including reasonable attorneys' fees and disbursements)
incurred or sustained by such other party arising out of any personal injury or
property damage caused by the fault of the invitees, agents, servants or
employees of such party in connection with their activities under or related to
this Agreement.
SECTION 5. TERM OF AGREEMENT.
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Section 5.1 Term. This Agreement shall become effective on the Effective
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Date and shall remain in effect until the latest date of expiration of any Space
License granted hereunder, unless earlier terminated in accordance with Section
5.2 below. The term of any Space License with respect to a particular Leased
Premise shall be identical to the term of the Master Lease for such Leased
Premise, including any extensions or renewal of such Master Lease pursuant to
any specific extension or renewal provision contained in such Master Lease as of
the date of this Agreement, unless earlier terminated in accordance with Section
5.2 below.
Section 5.2 Termination. This Agreement may be terminated, either in
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whole or with respect to specific portions of the Licenses granted hereunder, by
the non-defaulting party, upon the occurrence and continuance of a default by
either party hereunder, including the defaulting party's failure to keep,
observe or perform any covenant, agreement, term or provision of this Agreement,
for a period of thirty (30) days after written notice thereof has been given to
the defaulting party. In the event of any termination of this Agreement or of
any portion of the Licenses granted hereunder, neither party shall have any
further obligation to the other party hereunder or for that portion of the
Licenses (other than for any License Fees or other monies owed in respect of
such License). Notwithstanding any termination of this Agreement, the provisions
of Sections 4 and 7 shall remain in effect indefinitely or until such time as
the obligations of both parties hereunder shall have been fully discharged.
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SECTION 6. ADDITIONAL COVENANTS.
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Section 6.1 No Alterations; Surrender. Sub may not make any physical
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alterations to the Space (including, without limitation, structural alterations,
construction or removal of interior walls, painting or other decoration) without
the prior written consent of Parent, which consent shall not be unreasonably
withheld or delayed and the consent of the landlord under the applicable Master
Lease, if required. Sub shall surrender the Space upon termination of this
Agreement (or the applicable Space License in the same condition as it now
exists, except for normal wear and tear, damage caused by fire or other
casualty, and other alterations made with Parent's approval (or the approval of
the landlord under the applicable Master Lease, if required).
Section 6.2 Access to Space. Parent, its agents and representatives shall
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have the right to enter the Space without prior notice to inspect the same, to
exercise such rights as Parent may have under any Master Lease or this Agreement
with respect to such Space, to permit the landlord, its agents or
representatives to access such space to the extent permitted under the Master
Lease, or for any other purpose which Parent may reasonably determine to be
necessary or desirable; provided, however, that Parent shall not unreasonably
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interfere with Sub's use and enjoyment of the Space. Sub shall not be entitled
to any abatement of any portion of the License Fee by reason of the exercise of
any such right of entry.
Section 6.3 Fire, Casualty and Eminent Domain. In the event of a fire,
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casualty or taking that affects the Space to the extent that Sub is unable to
operate its business therein without unreasonable interference or additional
expense, but that does not result in termination of the Lease, Sub may elect to
terminate this Agreement by giving written notice to Parent within fifteen (15)
days of said event.
Section 6.4 Performance of Master Lease; Property. Sub agrees, and shall
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cause each of the members of the Sub Group, to use its best efforts to observe
and perform the tenant's obligations contained in the applicable Master Lease
during the period of occupancy thereunder.
SECTION 7. MISCELLANEOUS.
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Section 7.1 Access to Information; Confidentiality. The provisions of the
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Reorganization Agreement relating to the access to information and
confidentiality shall apply with respect to any information obtained or learned
by either party from the other party in connection with the parties' performance
of their respective obligations hereunder. This Section shall survive the
termination of this Agreement.
Section 7.2 Dispute Resolution. All disputes, controversies or claims
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between Parent and Sub arising out of or relating to this Agreement, including
without limitation the breach, interpretation or validity of any term or
condition hereof, shall be resolved in accordance with the provisions of the
Reorganization Agreement relating to dispute resolution.
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Section 7.3 Amendment and Waiver. No amendment of any provision of this
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Agreement shall in any event be effective, unless the same shall be in writing
and signed by the parties hereto. Any failure of any party to comply with any
obligation, agreement or condition hereunder may only be waived in writing by
the other party but such waiver shall not operate as a waiver of, or estoppel
with respect to, any subsequent or other failure. No failure by any party to
take any action against any breach of this Agreement or default by the other
party shall constitute a waiver of such party's right to enforce any provisions
hereof or to take any such action.
Section 7.4 Notices. Any notice to any party hereto given pursuant to
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this Agreement shall be in writing and shall be given by the means, and to the
addresses, set forth in the "Notices" section of the Reorganization Agreement.
Section 7.5 Successors and Assigns. This Agreement may not be assigned by
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either party without the prior written consent of the other party, and any
attempt to assign any rights or obligations hereunder without such consent shall
be void provided, however, either party may assign or transfer this Agreement is
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a whole to any Person who succeeds to the business, assets or capital stock such
party. This Agreement shall inure to the benefit of, and be binding upon and
enforceable against the respective successors and assigns of the parties hereto.
Section 7.6 Entire Agreement; Parties in Interest. This Agreement, the
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Schedules hereto, the Reorganization Agreement and any applicable provision of
the Ancillary Agreements comprise the entire agreement between the parties
hereto as to the subject matter hereof and supersedes all prior agreements and
understandings between them relating thereto and is not intended to confer upon
any person other than the parties hereto (including their successors and
permitted assigns) any rights or remedies hereunder.
Section 7.7 Severability. If any term or provision of this Agreement or
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the application thereof to any person or circumstance shall to any extent be
invalid or unenforceable, the remainder of this Agreement or the application of
such terms or provisions to persons or circumstances other than those as to
which it is invalid or unenforceable shall not be affected thereby and each term
and provision of this Agreement shall be valid and enforced to the fullest
extent permitted by law.
Section 7.8 Captions. Captions and headings are supplied herein for
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convenience only and shall not be deemed a part of this Agreement for any
purpose.
Section 7.9 Governing Law. This Agreement shall be governed by and
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construed in accordance with the internal substantive laws of the Commonwealth
of Massachusetts, without giving effect to the principles of conflicts of laws
thereof.
Section 7.10 Counterparts. This Agreement may be executed in several
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counterparts, and all counterparts so executed shall constitute one agreement,
binding upon the parties hereto, notwithstanding that the parties are not
signatory to the same counterpart.
[Signature page follows next]
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IN WITNESS WHEREOF, Parent and Sub have caused this Agreement to be duly
executed by their authorized representatives as an agreement under seal as of
the date first written above.
PARENT:
XXXXXX X. XXXXXX, INC.,
a Massachusetts corporation
By:_________________________________
Name:
Title:
SUB:
C-QUENTIAL, INC., a Delaware
corporation
By:_________________________________
Name:
Title:
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SCHEDULE A
LEASED PREMISES
[By Location]
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SCHEDULE B
[By Location]
MASTER LEASE LOCATION:
SPACE:
LICENSE FEE: $
TERM:
Each of the undersigned hereby acknowledges and agrees to be bound by the terms
and conditions of the Use and Occupancy Agreement to which this Schedule is
attached.
MEMBER OF PARENT GROUP MEMBER OF SUB GROUP
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