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Exhibit 10.3
Cambridge, Massachusetts
DATE OF LEASE EXECUTION: July 27, 1995 (To be completed by Landlord)
ARTICLE I
REFERENCE DATA
1.1 SUBJECTS REFERRED TO:
Each reference in this Lease to any of the following subjects shall be
construed to incorporate the data stated for that subject in this Section 1.1:
LANDLORD: Xxxxxxx X. Xxxxxxxx, Xxxx X, Xxxx, II, Xxxx
Xxxxxx and X. Xxxxxxx Xxxxxxx XXX, TRUSTEES
OF KSA REALTY TRUST, under Declaration of
Trust dated June 11, 1982 and recorded with
the Middlesex South Registry of Deeds in
Book 14635, Page 542.
MANAGING AGENT: CH & S Limited Partnership
LANDLORD'S & MANAGING c/o Carpenter & Company, Inc.
AGENT'S ADDRESS: 000 Xxxxxxx Xxxxxx, Xxxxx 000
Xxxxxx, XX 00000
LANDLORD' S REPRESENTATIVE: Xxxx X. Xxxxxxx
TENANT: Cambridge Energy Research Associates
Limited Partnership, a Delaware limited
partnership
XXXXXX'S ADDRESS (FOR 00 Xxxxxxxxxx Xxxx
XXXXXX XXX XXXXXXX): Xxxxxxxxx, Xxxxxxxxxxxxx 00000
TENANT'S REPRESENTATIVE: Xxxxx Xxxxxxxxxx
BUILDING ADDRESS: 00 Xxxxxxxxxx Xxxx
Xxxxxxxxx, Xxxxxxxxxxxxx 00000
0
TENANT'S EXISTING 16,445 rentable square feet on the fourth
SPACE: floor of the Office Component of the Xxxxxxx
Square Site and shown on the floor plan
attached hereto as Exhibit A-2.
TENANT'S INITIAL SPACE: 18,755 rentable square feet on the fourth
floor of the Office Component of the Xxxxxxx
Square Site and shown on the floor plan
attached hereto as Exhibit A-2.
TENANT'S SPACE: From the Commencement Date through June 30,
1996, Xxxxxx's Initial Space; from July 1,
1996, through the balance of the Term,
Tenant's Initial Space and the Expansion
Space.
EXPANSION SPACE: 2,760 rentable square feet on the fourth
floor of the Office Component of the Xxxxxxx
Square Site and shown on the floor plan
attached hereto as Exhibit A-2.
TOTAL RENTABLE FLOOR
AREA OF THE OFFICE
COMPONENT: 109,295 rentable square feet
COMMENCEMENT DATE: July 1, 1995
TERM EXPIRATION DATE: June 30, 2000, subject to Tenant's right to
extend the Term under Section 2.3.
TERM: Five (5) Years, subject to Tenant's right
to extend the Term under Section 2.3.
EXTENSION OPTION: One (1) option to extend the Term for a
period of five (5) years, exercisable
pursuant to the provisions of Section 2.3 of
this Lease.
ANNUAL BASE RENT: Lease Year 1: $487,630 per annum,
$40,635.83 per month (i.e.,
$26.00 per rentable square
foot)
Lease Year 2: $580,905 per annum,
$48,408.75 per month (i.e.,
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$27.00 per rentable square
foot)
Lease Year 3: $623,935 per annum,
$51,994.58 per month (i.e.,
$29.00 per rentable square
foot)
Lease Years 4:
and 5: $645,450 per annum,
$53,787.50 per month (i.e.,
$30.00 per rentable square
foot)
(See July 1995 and July 1996 rent abatement
per Section 4.1.)
ANNUAL OPERATING COST Actual Landlord's Operating Costs (as
FOR 1994: defined in Section 4.2) for calendar year
1994
ANNUAL REAL ESTATE Actual real estate taxes for calendar
TAXES FOR 1994: year 1994
PERMITTED USES: General Office use consistent with the
operation of a first class office building
and no other use.
PUBLIC LIABILITY BODILY INJURY: $1,000,000 per
INSURANCE: occurrence/$3,000,000 in the general
aggregate
PROPERTY DAMAGE: $500,000
1.2 EXHIBITS.
The exhibits listed below in this Section 1.2 are incorporated in this
Lease by reference and are to be construed as part of this Lease:
EXHIBIT A Plan of Xxxxxxx Square Site.
EXHIBIT A-1 Legal Description of Xxxxxxx Square Site.
EXHIBIT A-2 Plan Showing Tenant's Space.
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EXHIBIT B Landlord's Services.
EXHIBIT C Rules and Regulations.
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1.3 TABLE OF CONTENTS.
ARTICLE I - REFERENCE DATA...................................................1
1.1 SUBJECTS REFERRED TO:............................................1
1.2 EXHIBITS.........................................................3
1.4 DEFINITIONS......................................................9
ARTICLE II - PREMISES AND TERM..............................................10
2.1 PREMISES........................................................10
2.1.1 Expansion Space...........................................12
2.2 TERM............................................................12
2.3 OPTION TO EXTEND TERM...........................................13
2.3.1 Extension Option..........................................13
2.3.2 Extension Rent............................................13
2.3.3 Procedure for Establishing Extension Rent.................13
2.3.4 Conditions Precedent to Extension Option..................16
2.4 TENANT TERMINATION OPTION.......................................17
ARTICLE III - CONSTRUCTION..................................................18
3.1 GENERAL PROVISIONS APPLICABLE TO CONSTRUCTION...................18
3.2 REPRESENTATIVES.................................................19
ARTICLE IV - RENT...........................................................19
4.1 RENT............................................................19
4.2 OPERATING COSTS; ESCALATION.....................................20
4.3 REAL ESTATE TAXES; ESCALATION...................................23
4.4 ESTIMATED ESCALATION PAYMENTS...................................25
4.5 CHANGE OF FISCAL YEAR...........................................27
4.6 PAYMENTS........................................................27
4.7 TENANT'S RIGHT TO AUDIT LANDLORD'S BOOKS........................28
ARTICLE V - LANDLORD' S COVENANTS...........................................28
5.1 LANDLORD' S COVENANTS DURING THE TERM...........................28
5.1.1 Building Services.........................................28
5.1.2 Additional Building Services..............................29
5.1.3 Repairs...................................................29
5.1.4 Quiet Enjoyment...........................................29
5.1.5 Signage...................................................30
5.1.6 Hotel Conference Rooms....................................30
5.1.7 Security..................................................30
5.1.8 Common Area Improvements..................................30
5.2 INTERRUPTIONS...................................................30
5.3 RECOVERY OF TENANT'S COSTS......................................32
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5.4 LANDLORD'S INSURANCE.............................................32
ARTICLE VI - TENANT'S COVENANTS..............................................32
6.1 TENANT'S COVENANTS DURING THE TERM...............................32
6.1.1 Tenant's Payments.........................................32
6.1.2 Repairs and Yielding Up...................................33
6.1.3 Occupancy and Use.........................................33
6.1.4 Rules and Regulations.....................................34
6.1.5 Safety Appliances.........................................34
6.1.6 Assignment and Subletting.................................34
6.1.7 Indemnity.................................................35
6.1.8 Tenant's Liability Insurance..............................36
6.1.9 Tenant's Worker's Compensation Insurance..................36
6.1.10 Landlord's Right of Entry.................................36
6.1.11 Loading...................................................37
6.1.12 Landlord's Costs..........................................37
6.1.13 Tenant's Property.........................................37
6.1.14 Labor or Materialmen's Liens..............................38
6.1.15 Changes or Additions......................................38
6.1.16 Holdover..................................................39
ARTICLE VII - CASUALTY AND TAKING............................................39
7.1 CASUALTY AND TAKING..............................................39
7.2 RESERVATION OF AWARD.............................................41
ARTICLE VIII - RIGHTS OF MORTGAGEE...........................................42
8.1 PRIORITY OF LEASE................................................42
8.2 RIGHTS OF MORTGAGE HOLDERS; LIMITATION OF MORTGAGEE'S
LIABILITY........................................................43
8.3 MORTGAGEE'S ELECTION.............................................45
8.4 NO PREPAYMENT OR MODIFICATION, ETC...............................45
8.5 NO RELEASE OR TERMINATION........................................46
8.6 CONTINUING OFFER.................................................46
8.7 MORTGAGEE'S APPROVAL.............................................47
ARTICLE IX - DEFAULT.........................................................48
9.1 EVENTS OF DEFAULT................................................48
9.2 TENANT'S OBLIGATIONS AFTER TERMINATION...........................49
ARTICLE X - MISCELLANEOUS....................................................51
10.1 NOTICE OF LEASE..................................................51
10.2 CONSTRUCTION ON ADJACENT PREMISES; EXPANSION.....................51
10.3 NOTICES FROM ONE PARTY TO THE OTHER..............................52
10.4 BIND AND INURE...................................................52
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10.5 NO SURRENDER....................................................53
10.6 NO WAIVER, ETC..................................................53
10.7 NO ACCORD AND SATISFACTION......................................54
10.8 CUMULATIVE REMEDIES.............................................54
10.9 LANDLORD'S RIGHT TO CURE........................................55
10.10 ESTOPPEL CERTIFICATE............................................55
10.11 WAIVER OF SUBROGATION...........................................56
10.12 ACTS OF GOD.....................................................57
10.13 BROKERAGE.......................................................57
10.14 SUBMISSION NOT AN OFFER.........................................58
10.15 LANDLORD REMEDIES...............................................58
10.16 APPLICABLE LAW AND CONSTRUCTION.................................59
10.17 LIMITATION OF LANDLORD'S LIABILITY..............................60
10.18 PARKING.........................................................60
ARTICLE XI - LEASEHOLD IMPROVEMENTS; TENANT ALLOWANCE ......................61
11.1 PLANS FOR LEASEHOLD IMPROVEMENTS ...............................61
11.2 CONSTRUCTION BY TENANT..........................................63
11.3 TENANT ALLOWANCE................................................64
11.4 LANDLORD'S RIGHT TO TERMINATE LEASE PRIOR TO
COMMENCEMENT DATE...............................................64
11.5 EXPANSION SPACE.................................................65
ARTICLE XII - RIGHT OF FIRST OFFER .........................................65
12.1 RIGHT OF FIRST OFFER............................................65
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1.4 DEFINITIONS.
Certain terms used in this Lease are defined hereinafter in those Sections
in which the same are first mentioned. For convenience, certain other terms are
defined in this Section 1.4 as follows:
1.4.1 The term "Building" shall mean the office building comprising the
Office Component and shown on Exhibit A.
1.4.2 The term "Xxxxxxx Square Site" shall mean the entire area shown on
Exhibit A (as the same may be expanded), as more particularly described on
Exhibit A-1, which is leased by Landlord herein pursuant to the Ground Lease.
1.4.3 The term "Ground Lease" shall mean the ground lease from EMI
Cambridge Limited Partnership as ground lessor to Landlord as ground lessee
dated as of December 16, 1985, as amended.
1.4.4 The term "Office Component" shall mean the building, consisting of
approximately 109,295 rentable square feet, located at the Building Address and
devoted to office and related uses.
1.4.5 The term "rentable area" shall mean the area within demising walls,
measured from the glass line to the center line of demising partitions, together
with a pro rata share of the floor area of common facilities, which pro rata
share shall be the ratio of the floor area of Tenant Space to the total floor
area of the Office Component.
1.4.6 The term "Lease Year" shall mean a period of twelve consecutive
calendar months beginning on the first day of July and ending on the following
June 30.
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ARTICLE II
PREMISES AND TERM
2.1 PREMISES.
Subject to and with the benefit of the provisions of this Lease and the
Ground Lease relating to the Xxxxxxx Square Site, Landlord hereby leases to
Tenant, and Tenant leases from Landlord, Tenant's Space in the Building,
together with the telephone system and existing hard cable wiring presently in
Tenant's Space, excluding exterior faces of exterior walls. Tenant's Space, with
such exclusions and together with the Appurtenant Rights (as hereinafter
defined), is hereinafter referred to as the "Premises."
As of the date of this Lease, Tenant occupies Tenant's Existing Space
under a lease dated as of August 25, 1987, as amended by First Amendment to
Lease dated as of December 1, 1987, as further amended by Second Amendment to
Lease dated as of May 1, 1988, as further amended by Third Amendment to Lease
dated as of January 26, 1990, as further amended by Fourth Amendment to Lease
dated as of February 1, 1991, and as further amended by Fifth Amendment to Lease
dated as of August 1, 1993, all of the foregoing instruments being between
Landlord and Tenant (said lease, as so amended, to be referred to hereinafter as
the "Existing Lease"). Landlord shall deliver the balance of Tenant's Initial
Space to Tenant on the Commencement Date, in broom clean condition, free of
tenants and occupants, but otherwise as-is, without representation or warranty.
Landlord shall reimburse Tenant for the cost of
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improvements to Tenant's Initial Space up to a maximum of $50,000 pursuant to
the terms of Section 11.4 of this Lease. Before the Commencement Date, Landlord,
at its sole expense, shall paint and install new carpet in the hallways and
lobbies outside of Tenant's Space and the other common areas on the fourth floor
of the Office Component using colors and materials standard in the Building.
Tenant shall have, as appurtenant to the Premises, the right (the
"Appurtenant Rights") to use in common with others entitled thereto: (a) the
driveways, service roads, ramps, sidewalks and walkways necessary for access to
the Xxxxxxx Square Site and the Building, (b) the stairways, elevators, hallways
and lobbies necessary for access to Tenant's Space, (c) the restrooms located
outside of Tenant's Space on the fourth floor of the Office Component, (d) the
heating, ventilating, air-conditioning and other fixtures, equipment and systems
serving Tenant's Space in common with other portions of the Xxxxxxx Square Site,
and (e) such other common areas and facilities of the Xxxxxxx Square Site as
Landlord may provide or designate from time to time (collectively, the "Common
Areas").
Landlord reserves the right from time to time, with reasonable advance
notice to Tenant except in the case of an emergency in which case no notice
shall be required, without material interference with Tenant's use and enjoyment
of the Premises or access thereto, (a) to install, repair, replace, use,
maintain and relocate for service to the Premises and to other parts of the
Building or either, building service fixtures and equipment wherever located in
the Building and (b) to alter or relocate any other common facilities; provided,
however, Landlord shall not reduce the
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rentable area of the Premises and shall use reasonable efforts to perform such
activities at times other than during Xxxxxx's ordinary business hours.
2.1.1 Expansion Space. Landlord shall deliver the Expansion Space to
Tenant on July 1, 1996 in broom clean condition, free of tenants and occupants,
but otherwise as-is, without representation or warranty. Effective upon the date
of delivery, the Expansion Space shall become part of the Premises and all of
the terms and conditions of this Lease shall become applicable thereto. Within
ten days after substantial completion of Tenant's Leasehold Improvements (as
hereinafter defined) of the Expansion Space, Landlord shall reimburse Tenant for
Tenant's costs and expenses for the Leasehold Improvements in the Expansion
Space (excluding any architectural, design, engineering, construction
management, insurance or other soft costs in excess of $5,000 in the aggregate)
up to a maximum of $25,000 (the "Extension Allowance"). At Tenant's option, all
or any portion of the Expansion Allowance shall be applied toward, and paid by
Landlord to Tenant on account of, any changes, additions, alterations or
improvements made to any portion of the Premises after July 1, 1996, in
accordance with Section 6.1.5 after July 1, 1996 but prior to January 1, 1997.
2.2 TERM.
To have and to hold for a period (the "Term") commencing on the
Commencement Date and continuing until the Term Expiration Date, unless sooner
terminated as provided in Section 7.1 or in ARTICLE IX, or extended as provided
in Section 2.3.
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2.3 OPTION TO EXTEND TERM.
2.3.1 Extension Option. Tenant shall have one (1) right and option to
extend the Term (the "Extension Option") with respect to all (but not just a
portion of) the Premises for one period of five (5) years (such period being
herein referred to as the "Extension Period"), exercisable by notice to Landlord
given not later than eight (8) months prior to the expiration of the initial
Term; provided, however, that if Tenant fails to give timely notice to Landlord
of Tenant's exercise of the Extension Option, Tenant shall be deemed to have
waived its Extension Option rights. The word "Term" as used in this Lease
includes the Term, as extended, where the context so requires.
2.3.2 Extension Rent. All of the terms, provisions, covenants, and
conditions of this Lease shall continue to apply during the Extension Period,
except that the Annual Base Rent shall be the fair market rent being paid in the
vicinity of the Premises in Cambridge, Massachusetts, for leases with five-year
terms commencing as of the beginning of the Extension Period, for space
comparable to the Premises, used for the Permitted Uses and with rights and
obligations comparable to those of Tenant under this Lease (the "Extension
Rent").
2.3.3 Procedure for Establishing Extension Rent. At least 180 days before
the end of the initial Term (the "Rent Notice Deadline"), Landlord shall give to
Tenant written notice (an "Extension Rent Notice") of the Extension Rent, as
calculated by Landlord. If Landlord fails so to notify Tenant at least 150 days
before the expiration of the Initial Term, Tenant shall have the right to give
written notice (also an
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"Extension Rent Notice") to Landlord of the Extension Rent, as calculated by
Xxxxxx. If either Tenant or Landlord wishes to dispute the other party's
calculation of the Extension Rent, either party may give written notice (a
"Dispute Notice") to the other party within 30 days after receiving such other
party's Extension Rent Notice. Any Dispute Notice shall set forth the Extension
Rent, as calculated by the disputing party. If Landlord and Tenant are unable to
resolve any such dispute within seven days after such Dispute Notice is given,
such dispute shall be resolved according to the following procedures.
2.3.3.1 At any time after such seven-day period, Landlord and Tenant
each shall have the right, by written notice (a "Notice of Arbitration") to the
other, to demand arbitration of the calculation of the Extension Rent. The party
demanding arbitration shall appoint an arbitrator in the Notice of Arbitration.
Within seven days after the Notice of Arbitration is given, the other party
shall by notice to the other party appoint a second arbitrator. If the second
arbitrator shall not have been appointed within such seven-day period, the
position taken by the party demanding arbitration shall be deemed to be the
correct calculation of the Extension Rent.
2.3.3.2 Within seven days after the designation of the second
arbitrator, Landlord and Tenant shall submit their respective positions with
respect to the calculation of the Extension Rent to the two arbitrators.
Thereafter, the two arbitrators shall conduct such hearings and investigations
as they deem appropriate and shall, within fourteen days after the designation
of the second arbitrator, determine the correct calculation of the Extension
Rent. The arbitrators, or either of
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them, shall give notice of such resolution (or notice of their inability to
reach agreement, as the case may be) to the parties within said fourteen-day
period, and the agreement, if any, of the two arbitrators shall be binding upon
the parties to this Lease.
2.3.3.3 If the two arbitrators are unable to reach an agreement
within such fourteen-day period, the two arbitrators shall, within fourteen days
after the designation of the second arbitrator, designate a third arbitrator. If
the two arbitrators shall fail to agree upon the designation of a third
arbitrator within said fourteen-day period, then they or either of them shall
give notice of such failure to agree to Landlord and Tenant within such
fourteen-day period and, if Landlord and Tenant fail to agree upon the selection
of such third arbitrator within seven days after the arbitrators give such
notice, then either party on behalf of both may apply to the president of the
Greater Boston Real Estate Board or, on his or her failure, refusal or inability
to act, to a court of competent jurisdiction, for the designation of such third
arbitrator.
2.3.3.4 Within seven business days after the designation of the
third arbitrator, the parties shall submit their respective positions with
respect to the calculation of the Extension Rent to the third arbitrator.
Thereafter, the third arbitrator shall conduct such hearings and investigations
as he or she may deem appropriate and shall, within fourteen days after the date
of the designation of the third arbitrator, determine the correct calculation of
the Extension Rent. Within such fourteen-day period, the third arbitrator shall
give notice of such resolution to
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Landlord and Tenant and the third arbitrator's determination shall be binding
upon Landlord and Tenant.
2.3.3.5 All arbitrators shall be qualified real estate professionals
who shall have had at least ten years of experience appraising first-class
buildings substantially similar to the Office Component in the Greater Boston
area. Landlord and Tenant shall each be entitled to present evidence to the
arbitrators in support of their respective positions. The arbitrators shall not
make any determination inconsistent with the terms of this Lease. The
arbitrators shall not have the power to add to, modify or change any of the
provisions of this Lease. The determination of the arbitrator(s), as provided
above, shall be conclusive and shall have the same force as a judgment in a
court of competent jurisdiction. Judgment on the determination made by the
arbitrator(s) under the foregoing provisions may be entered in any court of
competent jurisdiction.
2.3.3.6 Each party shall pay the fees, costs and expenses of the
arbitrator appointed by such party and of the attorneys and expert witnesses of
such party and one-half of the other fees, costs and expenses of arbitration
properly incurred under this Lease.
2.3.3.7 None of the foregoing shall be construed so as to extend the
date by which Tenant must exercise its extension option or entitle Tenant to
revoke its exercise of such option if exercised.
2.3.4 Conditions Precedent to Extension Option. Notwithstanding any
contrary provision of this Section 2.3 or any other provision of this Lease, the
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Extension Option and any exercise by Tenant of the Extension Option shall be
void and of no force or effect unless on the date Tenant notifies Landlord that
it is exercising the Extension Option and on the date of commencement of the
Extension Period (i) this Lease is in full force and effect; and (ii) Tenant is
not in default of any of its obligations under this Lease after the giving of
any required notice and the expiration of any applicable grace period.
2.4 TENANT TERMINATION OPTION
Tenant shall have the right and option, exercisable by notice delivered to
Landlord at any time during Lease Years 4 or 5, to terminate this Lease, such
termination to be effective on the date that is six (6) months after the date of
delivery of such notice (the "Termination Date"), provided that (a) at the time
of Tenant's exercise there exists no default by Tenant under this Lease which
continues after the giving of any required notice and the expiration of any
applicable grace period, and (b) Tenant delivers to Landlord with its exercise
notice a certified check payable to Landlord in an amount equal to four months'
of Annual Base Rent and additional rent for the Premises in effect at the time
of such exercise. Said termination payment shall not relieve Tenant of its
obligation to pay rent hereunder for the remaining six months of the Term. If
Tenant delivers such notice and makes such payment to Landlord, this Lease and
all of the obligations of Landlord and Tenant shall terminate as of the
Termination Date as if such date were the date of the ordinary expiration of the
Term of this Lease.
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ARTICLE III
CONSTRUCTION
3.1 GENERAL PROVISIONS APPLICABLE TO CONSTRUCTION.
All construction work required or permitted by this Lease shall be done in
a good and workmanlike manner and in compliance with all applicable laws and all
lawful ordinances, regulations and orders of governmental authority and insurers
of the Building. Landlord may inspect the work of the Tenant at reasonable times
and promptly shall give notice of observed defects. Landlord will not approve
any construction, alterations, or additions requiring unusual expense to readapt
the Premises to normal office use on lease termination or increasing the cost of
construction, insurance or taxes on the Building or of Landlord's services
called for by Section 5.1 of this Lease unless Tenant first gives assurances
acceptable to Landlord that such readaptation will be made prior to such
termination without expense to Landlord and makes provisions acceptable to
Landlord for payment of such increased cost. Landlord will also disapprove any
alterations or additions requested by Tenant which in Landlord's reasonable
opinion would be harmful to the Building or its tenants. All changes and
additions shall be part of the Building except Xxxxxx's trade fixtures,
equipment and personal property and such items as by writing at the time of
approval the parties agree either shall be removed by Tenant on termination of
this Lease or shall be removed or left at Tenant's election.
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3.2 REPRESENTATIVES.
Each party authorizes the other to rely in connection with their
respective rights and obligations under this ARTICLE III upon approval and other
actions on the party's behalf by Xxxxxxxx's Representative in the case of
Landlord or Xxxxxx's Representative in the case of Tenant or by any person
designated in substitution or addition by notice to the party relying.
ARTICLE IV
RENT
4.1 RENT.
Commencing on the Commencement Date, Tenant shall pay to Landlord rent at
an annual rate equal to the Annual Base Rent, without any offset or reduction,
which rent shall be paid in equal installments of 1/12th of the Annual Base
Rent, in advance on the first day of each calendar month included in the Term,
but for any portion of a calendar month at the beginning or end of the Term, the
monthly installment shall be prorated based on the number of days in such
calendar month falling within the Term. Notwithstanding any contrary provision
of this Lease, Tenant shall be required to pay with respect to the month of July
1995 and July 1996 installments of Annual Base Rent equal to one-half of the
monthly installment otherwise payable (i.e., $20,317.92 for July 1995 and
$24,204.38 for July 1996, instead of $40,635.83 and $48,408.75, respectively).
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4.2 OPERATING COSTS; ESCALATION.
Tenant shall pay to Landlord, as additional rent, Operating Cost
Escalation (as defined below), if any, on or before the thirtieth day following
receipt by Tenant of Landlord's Statement (as defined below). Within 120 days
after the end of Xxxxxxxx's fiscal year ending during the Term and after Lease
termination, Landlord shall render a statement ("Landlord's Statement") in
reasonable detail and according to generally accepted accounting practices
certified by Landlord and showing for the preceding fiscal year or fraction
thereof, as the case may be, Xxxxxxxx's Operating Costs. As used in this Lease,
"Landlord's Operating Costs" shall mean all of Landlord's costs and expenses
paid in operating, managing, repairing, replacing and maintaining the Office
Component or the Xxxxxxx Square Site generally.
excluding (notwithstanding any provision of this Lease to the contrary)
the interest and amortization of principal and other charges relating to
mortgages for the Building and the Xxxxxxx Square Site or leasehold interests
therein; the cost of special services rendered to tenants (including Tenant) for
which a special charge is made; leasehold improvements which are made in
connection with the preparation of any portion of the Xxxxxxx Square Site for
occupancy by a new tenant or which are not provided generally for the benefit of
tenants of the Xxxxxxx Square Site; costs, expenses or charges properly
chargeable to a particular tenant; efforts to lease portions of the Xxxxxxx
Square Site or to procure tenants for the Xxxxxxx Square Site, including
advertising and leasing commissions and attorneys' fees; depreciation of any
component of the Xxxxxxx Square Site; repairs and replacements arising out of a
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fire or other casualty occurring at the Xxxxxxx Square Site; fees, fines or
penalties arising out of Landlord's breach of any obligations (contractual or at
law), including attorneys' fees; costs associated with vacant space; wages and
benefits of any employee, contractor or agent, except to the extent included
below; services which benefit only the Hotel Component or Retail Component, as
defined in the Ground Lease, of the Xxxxxxx Square Site, without any direct
benefit to the Office Component; fees for licenses, permits or inspections which
are not part of routine maintenance, do not benefit Tenant or tenants of the
Office Component generally or result from the negligence of Landlord or any
other tenant; environmental compliance, testing or remediation; compliance by
Landlord with laws existing as of the date of this Lease, including without
limitation the Americans with Disabilities Act; sculpture, paintings and other
works of art; capital improvements (as defined under generally accepted
accounting principles), except to the extent included below; and repairs
necessary to cure defects in the construction of the Xxxxxxx Square Site.
but including, without limitation: expenses of any proceedings for
abatement of real estate taxes and assessments with respect to any fiscal year
or fraction of a fiscal year; premiums for insurance covering the Office
Component or the Xxxxxxx Square Site generally; compensation and all fringe
benefits, worker's compensation insurance premiums and payroll taxes paid by
Landlord to, for or with respect to Xxxxxxxxx & Company's Vice-President for
Finance and Development and all persons at or below the level of building
manager engaged in the operating, maintaining or cleaning of the Building and
the Xxxxxxx Square Site, but in all cases adjusted so that
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the percentage of such wages and benefits allocated to the Xxxxxxx Square Site
equals the percentage of such person's working time for Landlord devoted to the
Xxxxxxx Square Site; all utility charges not billed directly to tenants by
Landlord or the utility; payments to independent contractors under service
contracts for cleaning, operating, managing, maintaining and repairing the
Building and the Xxxxxxx Square Site; management fees (which payments may be to
affiliates of Landlord) provided such fees do not exceed market rates; rent paid
by the managing agent or imputed cost equal to the loss of rent by Landlord for
making available to the managing agent space for a Building office on the ground
floor or above (provided that the rent, or the imputed cost, is comparable to
the rent charged for similar space in the Building); costs of new capital
improvements (as opposed to replacements of existing capital items) made to (a)
reduce operating expenses, (b) comply with laws enacted after the date hereof or
(c) maintain the Office Component as a first-class office building, provided
such costs shall be amortized over the useful life of the improvement in
question utilizing a commercially reasonable discount rate; and all other
reasonable and necessary expenses paid in connection with the cleaning,
operating, managing, maintaining and repairing of the Building and the Xxxxxxx
Square Site, or either. With respect to Xxxxxxxx's Operating Costs relating to
the Xxxxxxx Square Site (or any part thereof other than solely to the Office
Component), Landlord shall allocate to the Office Component a portion of such
costs and expenses which shall be reasonable and which shall take into
consideration the benefits received by the Office Component with respect to such
expenses. Any operating costs which were incurred
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for the sole benefit or necessity of the Office Component shall be allocated
solely to the Office Component.
"Operating Cost Escalation" for any fiscal year or fraction thereof shall
be equal to the difference, if any, between
(a) the product of Landlord's Operating Costs for such fiscal year or
fraction thereof and a fraction, the numerator of which shall be the rentable
area of Tenant's Space and the denominator of which shall be one-half of the
Total Rentable Floor Area of the Office Component plus one-half of the average
number of such square feet as are occupied during such fiscal year or fraction
thereof, and
(b) the product of the Annual Operating Costs for 1994 and a fraction, the
numerator of which shall be the rentable area of Tenant's Space and the
denominator of which shall be the Total Rentable Floor Area of the Office
Component.
4.3 REAL ESTATE TAXES; ESCALATION
The term "real estate taxes" as used above shall mean for any fiscal year
or portion thereof all taxes of every kind and nature and installments and
interest on assessments for public betterments or public improvements assessed
by any governmental authority on the Xxxxxxx Square Site, the Building and
improvements, or both, which the Landlord shall become obligated to pay in such
fiscal year or portion thereof because of or in connection with the ownership,
leasing and operation of the Xxxxxxx Square Site, the Building and improvements,
or both, subject to the following: There shall be excluded from such taxes all
income taxes, personal property taxes, excess profits taxes, excise taxes,
franchise taxes and estate,
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succession, inheritance and transfer taxes, provided, however, that if at any
time during the Term the present system of ad valorem taxation of real property
shall be changed so that in lieu of the whole or any part of the ad valorem tax
on real property, there shall be assessed on Landlord a capital levy or other
tax on the gross rents received with respect to the Xxxxxxx Square Site, the
Building and improvements, or both, or a federal, state, county, municipal or
other local income, franchise, excise, single business or similar tax,
assessment, levy or charge (distinct from any now in effect) measured by or
based, in whole or in part, upon any such gross rents, then any and all of such
taxes, assessments, levies or charges, to the extent so measured or based, shall
be deemed to be included within the term "real estate taxes."
In the case of real estate taxes becoming due and payable in any tax year
during the Lease Term, a portion of the real estate taxes shall be allocated to
the Office Component in accordance with the allocation for the Office Component
for the real estate taxes set forth in the invoice for real estate taxes or an
advisory letter from the tax assessor for the City of Cambridge which
establishes the allocation of real estate taxes among the various components of
the Xxxxxxx Square Site. In the event the invoice for the real estate taxes does
not specify the portion of the total real estate taxes attributable to the
Office Component and the Landlord, after due diligence, cannot obtain a current
advisory letter from said tax assessor, the allocation for the Office Component
will be determined by Landlord acting in its reasonable discretion,
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and, if appropriate, will be based on the then most recent advisory letter. The
amount so allocated is hereinafter "Office Component Taxes."
Tenant shall pay to Landlord, as additional rent, Real Estate Tax
Escalation (as defined below), if any, on or before the thirtieth day following
receipt by Tenant of a statement from Landlord showing the amount of Real Estate
Tax Escalation ("Landlord's Tax Statement").
"Real Estate Tax Escalation" shall be equal to the difference, if any,
between
(a) the product of Office Component Taxes and a fraction, the numerator of
which shall be the rentable area of Tenant's Space and the denominator of which
shall be one-half of the Total Rentable Floor Area of the Office Component plus
one-half of the average number of such square feet of rentable area as are
occupied in the Office Component during such fiscal year or fraction thereof and
(b) the product of the Annual Real Estate Taxes For 1994 and a fraction,
the numerator of which shall be the rentable area of Tenant's Space and the
denominator of which shall be the Total Rentable Floor Area of the Office
Component.
4.4 ESTIMATED ESCALATION PAYMENTS.
If, with respect to any fiscal year or fraction thereof during the Term,
Landlord reasonably estimates that Tenant shall be obligated to pay Operating
Cost Escalation or Real Estate Tax Escalation, then Tenant shall pay, as
additional rent, on the first day of each month of such fiscal year and each
ensuing fiscal year thereafter, "Estimated Monthly Escalation Payments" equal to
1/12th of the sum of the Operating Cost Escalation and Real Estate Tax
Escalation for the respective fiscal year
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set forth on the most recent reasonable written estimate provided by Landlord to
Tenant (the "Estimate"). In the event of an overpayment or underpayment by
Tenant on account of Operating Cost Escalation or Real Estate Tax Escalation, an
appropriate adjustment shall be made, (i) for Operating Cost Escalation, within
30 days after Landlord's Statement is delivered to Tenant and (ii) for Real
Estate Tax Escalation, within 30 days after Landlord's Tax Statement is
delivered to Tenant. If such adjustment arises out of an overpayment by Tenant,
Tenant shall receive such adjustment as a credit against payments of rent or
additional rent due under this Lease or, upon the expiration or termination of
this Lease, by a payment from Landlord to Tenant. Landlord may adjust such
Estimated Monthly Escalation Payment from time to time and at any time during a
fiscal year by delivering an updated Estimate to Tenant, and Tenant shall pay,
as additional rent, on the first day of each month following receipt of
Landlord's notice thereof, the adjusted Estimated Monthly Escalation Payment.
Notwithstanding any other provision of this Section 4.4, if the Term
expires or is terminated as of a date other than the last day of a fiscal year,
then for such fraction of a fiscal year at the end of the Term, Xxxxxx's last
payment to Landlord under Sections 4.2 and 4.3 shall be made on the basis of
Landlord's best estimate of the items otherwise includable in Landlord's
Statement and Landlord's Tax Statement and shall be made on or before the later
of (a) 10 days after Landlord delivers such estimate to Tenant or (b) the last
day of the Term, with an appropriate payment or
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refund to be made upon submission of Xxxxxxxx's Statement or Landlord's Tax
Statement, as applicable.
4.5 CHANGE OF FISCAL YEAR.
Landlord shall have the right from time to time to change the periods of
accounting under this Lease to any annual period other than the initial fiscal
year and, upon any such change, all items referred to in this Section 4.5 shall
be appropriately apportioned. In all Landlord's Statements and Landlord's Tax
Statements rendered under this Section 4.5, amounts for periods partially within
and partially without the accounting periods shall be appropriately apportioned
and any items which are not determinable at the time of such Statements shall be
included therein on the basis of Landlord's reasonable estimate and, with
respect thereto, Landlord shall render promptly after such determination is
possible a supplemental Landlord's Statement or Xxxxxxxx's Tax Statement, and
appropriate adjustment shall be made according thereto. All Landlord's
Statements and Landlord's Tax Statements shall be prepared on an accrual basis
of accounting.
4.6 PAYMENTS.
All payments of Annual Base Rent and additional rent shall be made to
Managing Agent, or to such other person as Landlord may from time to time
designate in writing to Tenant. If any installment of Annual Base Rent or
additional rent or on account of leasehold improvements is paid more than five
days after the due date thereof, at Landlord's election, it shall bear interest
from the due date to the date paid at a rate equal to the average prime
commercial rate from time to time
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established by the three largest national banks in Boston, Massachusetts from
such due date, but in no event less than an annual rate equal to 14% percent,
which interest shall be immediately due and payable as further additional rent.
4.7 TENANT'S RIGHT TO AUDIT LANDLORD'S BOOKS.
Within 30 days after delivery of Xxxxxxxx's statement of Landlord's
Operating Costs, upon the prior written request of Tenant, Tenant shall be
permitted to examine, in the office of Landlord's Managing Agent, the books and
records ("Books") relating to the calculation of Operating Cost Escalation and
Real Estate Tax Escalation, and have conducted (by an accountant of its
selection reasonably approved by Landlord) an audit of Landlord's Statement and
Landlord's Operating Costs. Landlord shall make all Books readily available for
such examination. Any such audit shall be done at Tenant's expense. To the
extent any such audit discloses a discrepancy in Landlord's Statement, after
Landlord's verification of such discrepancy, Landlord shall adjust Landlord's
Statement and the Estimated Monthly Escalation Payment accordingly.
ARTICLE V
LANDLORD' S COVENANTS
5.1 LANDLORD' S COVENANTS DURING THE TERM.
Landlord covenants during the Term:
5.1.1 Building Services - To furnish, through Landlord's employees or
independent contractors, the services listed in Exhibit B, but the use of
freight
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elevators shall be scheduled through Landlord's Representative with reasonable
advance notice;
5.1.2 Additional Building Services - To furnish, through Landlord's
employees or independent contractors, reasonable additional Building operation
services upon reasonable advance request of Tenant at equitable rates from time
to time established by Landlord to be paid by Xxxxxx, but Landlord shall not
impose an additional charge on Tenant for heat, ventilation and air conditioning
after normal business hours.
5.1.3 Repairs - Except as otherwise provided in ARTICLE VII of this Lease,
to perform such maintenance, to make such repairs to the Common Areas, roof,
exterior walls, floor slabs, other structural components, the heating,
ventilation, air-conditioning and other mechanical systems and the other common
facilities of the Building as may be necessary to keep them in good condition
and working order; to keep all exterior driveways, service roads, ramps,
sidewalks and walkways on the Xxxxxxx Square Site free of ice and snow; and to
comply with all laws, regulations and orders of governmental authorities
applicable to the Building or the Xxxxxxx Square Site generally (as
distinguished from laws, regulations and orders applicable to Tenant's use of
the Premises); and
5.1.4 Quiet Enjoyment - That Tenant, upon paying the rent and performing
its obligations hereunder, shall peacefully and quietly have, hold and enjoy the
Premises throughout the Term, with access 24 hours per day, 7 days per week, 52
weeks per year, without any manner of hindrance or molestation (including
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transmission of noise, other than noise customarily associated with office
premises, from other parts of the Building) from Landlord or anyone claiming
under Landlord, subject however to all the terms and provisions hereof, and to
the terms of the Ground Lease.
5.1.5 Signage. Subject to Landlord's prior written approval, Tenant shall
have the right, at its sole cost and expense, to place appropriate custom
signage on the entry doors to the Premises. Landlord, at its sole cost and
expense, shall include Tenant's name of the lobby directory.
5.1.6 Hotel Conference Rooms. Tenant shall be entitled to contract with
the Xxxxxxx Square Hotel for use of conference rooms and guest rooms at
preferred corporate rates.
5.1.7 Security. Landlord shall provide security for the Building,
including without limitation monitoring by security officers at all times,
patrols by security officers after normal business hours and a card-key access
system for after-hours entry into the Building which records the card number for
later review.
5.1.8 Common Area Improvements. Before the Commencement Date, Landlord
shall have re-carpeted and painted the common areas on the fourth floor of the
Office Component, at Landlord's sole cost and expense, using colors and
materials standard for the Building.
5.2 INTERRUPTIONS.
Landlord shall not be liable to Tenant for any compensation or reduction
of rent by reason of inconvenience or annoyance or for loss of business arising
from
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power losses or shortages or from the necessity of Landlord's entering the
Premises for any of the purposes in this Lease authorized or for repairing the
Premises or any portion of the Building or Lot. In case Landlord is prevented or
delayed from making any repairs, alterations or improvements, or furnishing any
service or performing any other covenant or duty to be performed on Landlord's
part, by reason of any cause reasonably beyond Landlord's control, Landlord
shall not be liable to Tenant therefor, nor, except as expressly otherwise
provided in ARTICLE VII, shall Tenant be entitled to any abatement or reduction
of rent by reason thereof, nor shall the same give rise to a claim in Tenant's
favor that such failure constitutes actual or constructive, total or partial,
eviction from the Premises. Landlord shall use reasonable efforts to avoid
inconvenience to Tenant arising from interruptions in services and to restore
such services and make related repairs as expeditiously as is practicable.
Landlord reserves the right to stop any service or utility system when
necessary by reason of accident or emergency or until necessary repairs have
been completed. Except in case of emergency repairs, Landlord will give Tenant
reasonable advance notice of any contemplated stoppage and will use reasonable
efforts to avoid unnecessary inconvenience to Tenant by reason thereof.
Landlord also reserves the right to institute such policies, programs and
measures as may be necessary, required or expedient for the conservation or
preservation of energy or energy services or as may be necessary or required to
comply with applicable codes, rules, regulations or standards.
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5.3 RECOVERY OF TENANT'S COSTS.
In the event (i) Tenant successfully enforces against Landlord its rights
under this Lease or (ii) Tenant issued by Landlord or joined in a suit against
Landlord and it is found that Tenant is not liable and Landlord is liable,
Landlord shall pay Tenant all of its reasonable costs and expenses, including
without limitation reasonable attorneys' fees, incurred by or imposed upon
Tenant in connection with such enforcement or suit.
5.4 LANDLORD'S INSURANCE.
Landlord shall maintain, with responsible companies qualified to do
business in Massachusetts, fire and other casualty insurance covering all
buildings and improvements on the Xxxxxxx Square Site, in amounts not less than
100 percent of the replacement cost of such buildings and improvements, with
extended coverage endorsements.
ARTICLE VI
TENANT'S COVENANTS
6.1 TENANT'S COVENANTS DURING THE TERM.
Tenant covenants during the Term and such further time as Tenant occupies
any part of the Premises:
6.1.1 Tenant's Payments - To pay when due (a) all Annual Base Rent and
additional rent, (b) all taxes which may be imposed on Tenant's personal
property in the Premises (including, without limitation, Xxxxxx's fixtures and
equipment) regardless to whomever assessed, (c) all charges by public utilities
for telephone and
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other utility services (including service inspections therefor) rendered to the
Premises not otherwise required hereunder to be furnished by Landlord without
charge and not consumed in connection with any services required to be furnished
by Landlord without charge and (d) as additional rent, all charges of Landlord
for services rendered pursuant to Section 5.1.2 hereof;
6.1.2 Repairs and Yielding Up - Except as otherwise provided in ARTICLE
VII and Section 5.1.3 of this Lease, to keep the Premises in good order, repair
and condition, reasonable wear and tear and damage by fire, casualty or eminent
domain only excepted; and at the expiration or termination of this Lease
peaceably to yield up the Premises and all changes and additions therein in such
order, repair and condition, first removing all goods and effects of Tenant and
any items, the removal of which is required by agreement or specified herein to
be removed at Tenant's election and which Tenant elects to remove, and repairing
all damage caused by such removal and restoring the Premises and leaving them
clean and neat;
6.1.3 Occupancy and Use - Continuously from the Commencement Date, to use
and occupy the Premises only for the Permitted Uses; not to injure or deface the
Premises, Building, or the Xxxxxxx Square Site; and not to permit in the
Premises any use thereof which is offensive, contrary to law or ordinances
(including, without limitation, City of Cambridge anti-smoking ordinances), or
which creates a nuisance or invalidates or increases the premiums for any
insurance on the Building or its contents (the Landlord representing and
warranting to Tenant that the use of the Premises for the Permitted Uses shall
not by itself invalidate or increase the
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premiums for any insurance) or liable to render necessary any alteration or
addition to the Building;
6.1.4 Rules and Regulations - To comply with the Rules and Regulations set
forth in Exhibit C and all other reasonable Rules and Regulations hereafter made
by Landlord, of which Tenant has been given notice, which Rules and Regulations
shall be applicable to all office tenants in the Building, for the care and use
of the Building and the Xxxxxxx Square Site, it being understood that Landlord
shall not be liable to Tenant for the failure of other tenants of the Building
to conform to such Rules and Regulations;
6.1.5 Safety Appliances - To keep the Premises equipped with all safety
appliances required by law or ordinance or any other regulation of any public
authority because of any use made by Tenant and to procure all licenses and
permits so required because of such use and, if requested by Landlord, to do any
work so required because of such use, it being understood that the foregoing
provisions shall not be construed to broaden in any way Tenant's Permitted Uses;
6.1.6 Assignment and Subletting - Not without the prior written consent of
Landlord to assign this Lease, to make any sublease, or to permit occupancy of
the Premises or any part thereof by anyone other than Tenant, provided, however,
that so long as (a) the proposed subtenant or assignee is a reputable person or
entity which satisfies Landlord's reasonable financial review for a subtenant or
assignee of the space in question, (b) Tenant remains liable in the Lease, and
(c) Tenant gives Landlord reasonable advance notice of such sublease or
assignment, Landlord's
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consent shall not be unreasonably withheld, delayed or conditioned; as
additional rent to reimburse Landlord promptly for reasonable legal and other
expenses incurred by Landlord in connection with any request by Tenant for
consent to assignment or subletting; no assignment or subletting shall affect
the continuing primary liability of Tenant (which, following assignment, shall
be joint and several with the assignee); no consent to any of the foregoing in a
specific instance shall operate as a waiver in any subsequent instance.
Notwithstanding any provision of this Lease to the contrary, Tenant shall have
the right to assign this Lease or sublet any portion of the Premises to any
business organization controlled by, controlling, or under common control with
Tenant or which is the successor to Tenant by merger or through the sale of all
or substantially all of Tenant's assets (an "Affiliate"), provided Tenant
demonstrates to Landlord's reasonable satisfaction that the creditworthiness of
the Affiliate is at least equal to the greater of Tenant's creditworthiness (a)
on the date hereof or (b) on the date of such assignment or sublease.
Notwithstanding the foregoing provisions of this Section 6.1.6, Tenant
covenants not to enter into any sublease the rental of which is based in whole
or in part on the net revenues, net income or profits derived by any tenant
within the meaning of Section 856(d)(2)(A) of the Internal Revenue Code of 1954,
as amended.
6.1.7 Indemnity - To defend, with counsel reasonably acceptable to
Landlord, save harmless and indemnify Landlord from any liability for injury,
loss, accident or damage to any person or property and from any claims, actions,
proceedings and expenses and costs in connection therewith (including, without
implied limitation,
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counsel's reasonable fees): (i) arising from the omission, fault, willful act,
negligence or other misconduct of Tenant or from any use made or thing done or
occurring on the Premises not due to the negligence or willful misconduct of
Landlord or (ii) resulting from the failure of Tenant to perform and discharge
its covenants and obligations under this Lease;
6.1.8 Tenant's Liability Insurance - To maintain public liability
insurance on the Premises in amounts which shall, at the beginning of the Term,
be at least equal to the limits set forth in Section 1.1 of this Lease, and from
time to time during the Term, shall be for such higher limits, if any, as are to
Tenant's actual knowledge customarily carried in the area in which the Premises
are located on property similar to the Premises and used for similar purposes
and to furnish Landlord with certificates thereof;
6.1.9 Tenant's Worker's Compensation Insurance - To keep all of Tenant's
employees working in the Premises covered by worker's compensation insurance in
statutory amounts and to furnish Landlord with certificates thereof;
6.1.10 Landlord's Right of Entry - To permit Landlord and Landlord's
agents entry upon reasonable advance notice to Tenant, except in the case of
emergency in which case no notice shall be required, to examine the Premises at
reasonable times and, if Landlord shall so elect, to make repairs or
replacements (provided, however, Landlord shall use reasonable efforts to
prevent material adverse effects on Tenant's use and enjoyment of the Premises);
to remove, at Tenant's expense, any changes, additions, signs, curtains, blinds,
shades or the like not consented to in writing; and
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to show the Premises to prospective tenants during the 12 months preceding
expiration of the Term or the Extension Period (as applicable) and to
prospective purchasers and mortgagees at all reasonable times;
6.1.11 Loading - Not to place a load upon the Premises exceeding an
average rate of 50 pounds of live load per square foot of floor area; and not to
move any safe, vault or other heavy equipment in, about or out of the Premises
except in such manner and at such times as Landlord shall in each instance
approve; Tenant's business machines and mechanical equipment which cause
vibration or noise that may be transmitted to the Building structure or to any
other leased space in the Building shall be placed and maintained by Tenant in
settings of cork, rubber, spring or other types of vibration eliminators
sufficient to eliminate such vibration or noise;
6.1.12 Landlord's Costs - In case Landlord shall be made party to any
litigation commenced by or against Tenant or by or against any parties in
possession of the Premises or any part thereof claiming under Tenant, which is
not exempted from Tenant's indemnity by the terms of Section 6.1.7, to pay, as
additional rent, all costs including, without implied limitation, counsel's
reasonable fees incurred by or imposed upon Landlord in connection with such
litigation and, as additional rent, also to pay all such costs and fees incurred
by Landlord in connection with the successful enforcement by Landlord of any
obligations of Tenant under this Lease;
6.1.13 Xxxxxx's Property - All the furnishings, fixtures, equipment,
effects and property of every kind, nature and description of Tenant and of all
persons claiming by, through or under Tenant which, during the continuance of
this Lease or any
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occupancy of the Premises by Tenant or anyone claiming under Tenant, may be on
the Premises or elsewhere in the Building or on the Xxxxxxx Square Site shall be
at the sole risk and hazard of Tenant and, if the whole or any part thereof
shall be destroyed or damaged by fire, water or otherwise, by the leakage or
bursting of water pipes, steam pipes or other pipes, by theft or from any other
cause, no part of said loss or damage is to be charged to or to be borne by
Landlord unless due to the gross negligence or other similar misconduct of
Landlord;
6.1.14 Labor or Materialmen's Liens - To pay promptly when due the entire
cost of any work done on the Premises by Tenant, its agents, employees or
independent contractors; not to cause or permit any liens for labor or materials
performed or furnished in connection therewith to attach to the Premises; and
immediately to discharge (by payment, bond or other method) any such liens which
may so attach;
6.1.15 Changes or Additions - Not to make any non-structural changes or
alterations to the Premises without Landlord's prior written consent, which
consent shall not be unreasonably withheld; not to make any structural changes
or additions to the Premises without Landlord's prior written consent, provided
that Tenant shall reimburse Landlord for all reasonable costs incurred by
Landlord in reviewing Tenant's proposed changes or additions, and provided
further that, in order to protect the functional integrity of the Building, all
such changes and additions shall be performed by contractors selected from a
list of approved contractors prepared by Landlord from time to time; and
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6.1.16 Holdover - To pay to Landlord 150% of the total of the Annual Base
Rent and additional rent then applicable for each month or portion thereof
Tenant shall retain possession of the Premises or any part thereof after the
termination of this Lease, whether by lapse of time or otherwise, and also to
pay all damages sustained by Landlord on account thereof, consequential and
otherwise; the provisions of this subsection shall not operate as a waiver by
Landlord of any right of re-entry provided in this Lease.
ARTICLE VII
CASUALTY AND TAKING
7.1 CASUALTY AND TAKING.
In case during the Term all or any substantial part of the Premises,
Building or the Xxxxxxx Square Site, or any one or more of them, are (i) damaged
materially by fire or any other cause or by action of public or other authority
in consequence thereof or (ii) taken by eminent domain or Landlord receives
compensable damage by reason of anything lawfully done in pursuance of public or
other authority and as a consequence all or any substantial part of the
Premises, Building or Xxxxxxx Square Site are damaged materially, this Lease
shall terminate at Landlord's election, which may be made, notwithstanding
Landlord's entire interest may have been divested, by notice to Tenant within 30
days after the occurrence of the event giving rise to the election to terminate,
which notice shall specify the effective date of termination which shall be not
less than 30 nor more than 60 days after the date of notice of such termination
and a just proportion of the Annual Base Rent and additional rent
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according to the nature and extent of the injury and the effect on Xxxxxx's use
and enjoyment of the Premises shall be abated from and after the occurrence of
the event giving rise to the election to terminate. If in any such case the
Premises, Building or the Xxxxxxx Square Site, are rendered unfit for use and
occupation and the Lease is not so terminated, Landlord shall use due diligence
to put the Premises, Building or the Xxxxxxx Square Site, or, in case of a
taking, what may remain thereof (excluding any items installed or paid for by
Tenant which Tenant may be required or permitted to remove) into substantially
the same condition that existed before such fire, casualty or taking to the
extent permitted by the net award of insurance or damages available to Landlord,
and a just proportion of the Annual Base Rent and additional rent according to
the nature and extent of the injury shall be abated until the Premises, Building
or the Xxxxxxx Square Site, or such remainder shall have been put by Landlord in
such condition; and in case of a taking which permanently reduces the area of
the Premises, Building or Lot, a just proportion of the Annual Base Rent and
additional rent shall be abated according to the nature and extent of the injury
and the effect on Xxxxxx's use and enjoyment of the Premises for the remainder
of the Term and an appropriate adjustment shall be made to the Annual Operating
Expenses. If in any such case the Lease is not so terminated and the Premises,
Building or the Xxxxxxx Square Site (or in the case of a taking, at least 90
percent thereof) have not been put into proper condition for use and occupation
within one year after the damage or taking occurs, or, in the reasonable
judgment of Xxxxxxxx's architect expressed within 60 days of such fire, casualty
or taking, are not capable of
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being put into such condition within one year, this Lease shall terminate at
Tenant's election, which may be made by notice to Landlord within ten (10) days
after expiration of such year or within ten (10) days after notice that the
damage cannot reasonably be repaired within one year, as the case may be, and
shall be effective on the date such notice is given and all of Tenant's
obligations hereunder shall then cease except to pay rent accrued prior to the
termination, as such rent shall have been reduced pursuant to this Section on
account of the damage or taking.
7.2 RESERVATION OF AWARD.
Landlord reserves to itself any and all rights to receive awards made for
damages to the Premises, Building or the Xxxxxxx Square Site and the leasehold
hereby created, or any one or more of them, accruing by reason of exercise of
eminent domain or by reason of anything lawfully done in pursuance of public or
other authority. Tenant hereby releases and assigns to Landlord all Tenant's
rights to such awards and covenants to deliver such further assignments and
assurances thereof as Landlord may from time to time request and hereby
irrevocably designates and appoints Landlord as its attorney in fact to execute
and deliver in Xxxxxx's name and behalf all such further assignments thereof. It
is agreed and understood, however, that Xxxxxxxx does not reserve to itself, and
Xxxxxx does not assign to Landlord, any damages payable for (i) trade fixtures,
equipment and personal property installed by Xxxxxx, or anybody claiming under
Tenant, at the Premises or (ii) relocation or business interruption expenses or
damages of a similar nature recoverable by Tenant from such authority in a
separate action.
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ARTICLE VIII
RIGHTS OF MORTGAGEE
8.1 PRIORITY OF LEASE.
This Lease is and shall continue to be subject and subordinate to any
presently existing mortgage, ground lease or deed of trust of record covering
the Lot or Building or both (the "mortgaged premises"), provided that Landlord
shall use diligent efforts to obtain on Xxxxxx's behalf a nondisturbance
agreement from the holders of any such mortgages, deeds of trust or ground
leases within six (6) months after the date hereof (which nondisturbance
agreement may be in the standard form used by such holders). The holder of any
such presently existing mortgage or deed of trust or lessor under any such
ground lease shall have the election to subordinate the same to the rights and
interests of Tenant under this Lease exercisable by filing with the appropriate
recording office a notice of such election, whereupon the Tenant's rights and
interests hereunder shall have priority over such mortgage, ground lease or deed
of trust.
Unless the option provided for in the next following sentence shall be
exercised, this Lease shall be superior to and shall not be subordinate to, any
mortgage, deed of trust or other voluntary lien hereafter placed on the
mortgaged premises. The holder of any such mortgage, deed of trust or other
voluntary lien shall have the option to subordinate this Lease to the same,
provided that such holder enters into a nondisturbance and attornment agreement
with Tenant, under
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which the holder will agree to recognize the rights of Tenant under this Lease
and to accept Tenant as tenant of the Premises under the terms and conditions of
this Lease in the event of acquisition of title by such holder through
foreclosure proceedings or otherwise and Tenant will agree to recognize the
holder of such mortgage or lessor under such ground lease as Landlord in such
event, which agreement shall be made to expressly bind and inure to the benefit
of the successors and assigns of Tenant and of the holder or ground lessor and
upon anyone purchasing the mortgaged premises at any foreclosure sale. Any such
mortgage or ground lease to which this Lease shall be subordinated may contain
such terms, provisions and conditions as the holder or ground lessor deems usual
or customary.
8.2 RIGHTS OF MORTGAGE HOLDERS; LIMITATION OF MORTGAGEE'S LIABILITY.
The word "mortgage" as used herein includes mortgages, deeds of trust or
other similar instruments evidencing other voluntary liens or encumbrances and
modifications, consolidations, extensions, renewals, replacements and
substitutes thereof. The word "holder" shall mean a mortgagee and any subsequent
holder or holders of a mortgage. Until the holder of a mortgage shall enter and
take possession of the Premises for the purpose of foreclosure, such holder
shall have only such rights of Landlord as are necessary to preserve the
integrity of this Lease as security. Upon entry and taking possession of the
Premises for the purpose of foreclosure, such holder shall have all the rights
of Landlord. Notwithstanding any other provision of this Lease to the contrary,
including without limitation Section 10.4, no such holder of a mortgage or
ground lessor shall be liable either as
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mortgagee or as assignee to perform, or be liable in damages for failure to
perform, any of the obligations of Landlord unless and until such holder or
ground lessor shall enter and take possession of the Premises for the purpose of
foreclosure, and such holder or ground lessor shall not in any event be liable
to perform or for failure to perform the obligations of Landlord under Article
III of this Lease. Upon entry for the purpose of foreclosure, such holder or
ground lessor shall be liable to perform all of the obligations of Landlord
(except for the obligations under Article III of this Lease), subject to and
with the benefit of the provisions of Section 10.4 of this Lease, provided that
a discontinuance of any foreclosure proceeding shall be deemed a conveyance
under said provisions to the owner of the equity of the Premises.
No holder of a mortgage on or ground lessor of Landlord's interest in the
Premises shall (i) be bound by any modification of this Lease not made as
expressly provided for in this Lease or by any previous prepayment of more than
one month's rent, unless such modification or prepayment shall have been
expressly approved in writing by the holder of the superior mortgage or ground
lessor of the ground lease through or by reason of which the holder or ground
lessor shall have succeeded to the rights of Landlord; or (ii) be liable for the
performance of Landlord's covenants and agreements contained in this Lease
except to the extent of the holder's or ground lessor's ownership in the
Premises, and no other property of such holder shall be subject to levy,
attachment, execution or other enforcement procedure for the satisfaction of
Xxxxxx's remedies.
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8.3 MORTGAGEE'S ELECTION.
Notwithstanding any other provision to the contrary contained in this
Lease, if prior to substantial completion of Landlord's obligations under
ARTICLE XI and Section 2.1.1, any holder of a first mortgage on the mortgaged
premises or ground lessor under a ground lease enters and takes possession
thereof for the purpose of foreclosing the mortgage or terminating the ground
lease, such holder or ground lessor may elect, by written notice given to Tenant
and Landlord at any time within 90 days after such entry and taking of
possession, not to perform Landlord's obligations under ARTICLE XI and/or
Section 2.1.1 and, in such event, such holder or ground lessor and all persons
claiming under it shall be relieved of all obligations to perform, and all
liability for failure to perform, said Landlord's obligations under ARTICLE XI
and/or Section 2.1.1, and Tenant may terminate this Lease and all its
obligations hereunder by written notice to Landlord and such holder or ground
lessor given within 30 days after the day on which such holder or ground lessor
shall have given its notice as aforesaid.
8.4 NO PREPAYMENT OR MODIFICATION, ETC.
Tenant shall not pay Annual Base Rent, additional rent or any other charge
more than 10 days prior to the due dates thereof. No prepayment of Annual Base
Rent, additional rent or other charge, no assignment of this Lease and no
agreement to modify so as to reduce the rent, change the Term or otherwise
materially change the rights of Landlord under this Lease, or to relieve Tenant
or any Guarantor of any
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obligations or liability under this Lease, shall be valid unless consented to in
writing by Xxxxxxxx's mortgagees or ground lessors of record, if any.
8.5 NO RELEASE OR TERMINATION.
No act or failure to act on the part of Landlord which would entitle
Tenant under the terms of this Lease, or by law, to be relieved of Tenant's
obligations hereunder or to terminate this Lease, shall result in a release or
termination of such obligations or a termination of this Lease unless (i) Tenant
shall have first given written notice of Landlord's act or failure to act to
Xxxxxxxx's mortgagees or ground lessors of record, if any (provided Xxxxxx has
received written notice of the identity and address of such mortgagees or ground
lessors), specifying the act or failure to act on the part of Landlord which
could or would give basis to Tenant's rights and (ii) such mortgagees or ground
lessors, after receipt of such notice, have failed or refused to correct or cure
the condition complained of within a reasonable time thereafter, but nothing
contained in this Section 8.5 shall be deemed to impose any obligation on any
such mortgagee or ground lessor to correct or cure any such condition.
"Reasonable time" as used above means and includes a reasonable time to obtain
possession of the mortgaged premises, if the mortgagee or ground lessor elects
to do so, and a reasonable time to correct or cure the condition if such
condition is determined to exist.
8.6 CONTINUING OFFER.
The covenants and agreements contained in this Lease with respect to the
rights, powers and benefits of a mortgagee or ground lessor (particularly,
without
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limitation thereby, the covenants and agreements contained in this ARTICLE VIII)
constitute a continuing offer to any person, corporation or other entity, which
by accepting or requiring an assignment of this Lease or by entry or foreclosure
assumes the obligations herein set forth with respect to such mortgagee or
ground lessor; such mortgagee and ground lessor are each hereby constituted a
party to this Lease as an obligee hereunder to the same extent as though its
name was written hereon as such; and such mortgagee or ground lessor shall be
entitled to enforce such provisions in its own name. Xxxxxx agrees on request of
Xxxxxxxx to execute and deliver from time to time any agreement which may
reasonably be deemed necessary to implement the provisions of this ARTICLE VIII.
8.7 MORTGAGEE'S APPROVAL.
Xxxxxxxx's and Xxxxxx's obligations to perform their covenants and
agreements under this Lease are subject to the condition precedent that this
Lease be approved by the current mortgagee of the Xxxxxxx Square Site (Aetna
Life and Casualty Company) and the lessor under the Ground Lease. Landlord shall
use diligent efforts to obtain such approvals. Unless Landlord notifies Tenant
within 45 days after the date hereof that the Lease has been disapproved, the
condition set forth in this Section 8.7 shall be deemed satisfied.
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ARTICLE IX
DEFAULT
9.1 EVENTS OF DEFAULT.
If any default by Tenant continues after notice, in case of the failure to
make payments of Annual Base Rent, additional rent, or any other monetary
obligation to Landlord, for more than 10 days or, in the case of any other
failure by Tenant to perform its obligations under this Lease, for more than 30
days and such additional time, if any, as is reasonably necessary to cure the
default if the default is of such a nature that it cannot reasonably be cured in
30 days and Tenant diligently endeavors to cure such default; or if Tenant
becomes insolvent, files a petition under any chapter of the U.S. Bankruptcy
Code, 11 U.S.C. 101 et seq., as it may be amended (or any similar petition under
any insolvency law of any jurisdiction), or if such petition is filed against
Tenant and is not dismissed within 60 days; or if Tenant proposes any
dissolution, liquidation, composition, financial reorganization or
recapitalization with creditors, makes an assignment or trust mortgage for the
benefit of creditors, or if a receiver, trustee, custodian or similar agent is
appointed or takes possession with respect to any property of Tenant and is not
dismissed within 60 days; or if the leasehold hereby created is taken on
execution or other process of law in any action against Tenant; then, and in any
such case, Landlord and the agents and servants of Landlord may, in addition to
and not in derogation of any remedies for any preceding breach of covenant,
immediately or at any time thereafter while such default continues and without
further notice exercise any and all remedies permitted
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by state or federal law. Tenant hereby waives all statutory rights (including,
without limitation, rights of redemption, if any) to the extent such rights may
be lawfully waived and Landlord, without notice to Tenant but no earlier than
the expiration of the applicable cure period, may store Tenant's effects and
those of any person claiming through or under Tenant at the expense and risk of
Tenant and, if Landlord so elects, may sell such effects at public auction or
private sale and apply the net proceeds to the payment of all sums due to
Landlord from Tenant, if any, and pay over the balance, if any, to Tenant.
9.2 TENANT'S OBLIGATIONS AFTER TERMINATION.
In the event that this Lease is terminated under any of the provisions
contained in Section 9.1 of this Lease or shall be otherwise lawfully terminated
for breach of any obligation of Tenant, Tenant covenants to pay forthwith to
Landlord, as liquidated damages, the present value of the excess of the total
rent reserved for the residue of the Term over the rental value of the Premises
for said residue of the Term, calculated using a commercially reasonable
discount rate. In calculating the rent reserved, there shall be included, in
addition to the Annual Base Rent and all additional rent, the value of all other
consideration agreed to be paid or performed by Xxxxxx for said residue. Until
Landlord demands such liquidated damages, Tenant further covenants after any
such termination to pay punctually to Landlord all the sums and perform all the
obligations which Tenant covenants in this Lease to pay and to perform in the
same manner and to the same extent and at the same time as if this Lease had not
been terminated. In calculating the amounts to be paid by Xxxxxx
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under the next foregoing covenant, Tenant shall be credited with the net
proceeds of any rents obtained by Landlord by reletting the Premises, after
deducting all Landlord's expenses in connection with such reletting, including,
without implied limitation, all repossession costs, brokerage commissions, fees
for legal services and expenses of preparing the Premises for such reletting, it
being agreed by Tenant that Landlord may (i) relet the Premises or any part or
parts thereof for a term or terms which may at Landlord's option be equal to or
less than or exceed the period which would otherwise have constituted the
balance of the Term and may grant such concessions and free rent as Landlord in
its sole judgment considers advisable or necessary to relet the same and (ii)
make such alterations, repairs and decorations in the Premises as Landlord in
its sole judgment considers advisable or necessary to relet the same, and no
action of Landlord in accordance with the foregoing or failure to relet or to
collect rent under reletting shall operate or be construed to release or reduce
Tenant's liability as aforesaid; provided, however, that if Landlord uses or
permits any person or entity in control of, under common control with or
controlled by Landlord to use the Premises during any part of the balance of the
Term or Extended Term, no less than the fair rental value of the Premises during
such period of use shall be credited against all sums due from Tenant.
Nothing contained in this Lease shall, however, limit or prejudice the
right of Landlord to prove and obtain in proceedings for bankruptcy or
insolvency by reason of the termination of this Lease an amount equal to the
maximum allowed by any statute or rule of law in effect at the time when, and
governing the proceedings in
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which, the damages are to be proved, whether or not the amount be greater, equal
to or less than the amount of the loss or damages referred to above.
ARTICLE X
MISCELLANEOUS
10.1 NOTICE OF LEASE.
Upon request of either party, both parties shall execute and deliver,
after the Term begins, a short form of this Lease in form appropriate for
recording or registration and, if this Lease is terminated before the Term
expires, an instrument in such form acknowledging the date of termination.
10.2 CONSTRUCTION ON ADJACENT PREMISES; EXPANSION.
If any excavation, alteration, addition, repair, or other building
operation shall be about to be made or shall be made on the Premises, the
Building or the Lot or on any premises adjoining the Lot, Tenant shall permit
Landlord, its agents, employees, licensees and contractors, with reasonable
advance notice to Tenant, except in the case of emergency, in which case no
notice shall be required, to enter the Premises and to shore the foundations
and/or walls thereof, and to erect scaffolding and/or protective barricades
around and about the Premises (but not so as to preclude entry thereto) and to
do any act or thing necessary for the safety or preservation of the Premises;
provided, however, Landlord shall not materially interfere with Xxxxxx's use and
enjoyment of the Premises. Tenant's obligations under this Lease shall not be
affected by any such construction or excavation work or any such shoring-up so
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long as Landlord does not materially interfere with Xxxxxx's use and enjoyment
of the Premises. Provided Landlord does not interfere with Xxxxxx's use and
enjoyment of the Premises, Landlord shall not be liable for any inconvenience,
disturbance, loss of business or any other annoyance arising from any such
construction, excavation shoring-up, scaffolding or barricades, but Landlord
shall use its best efforts so that such work will cause such little
inconvenience, annoyance and disturbance to Tenant as possible.
10.3 NOTICES FROM ONE PARTY TO THE OTHER.
All notices required or permitted hereunder shall be in writing and
addressed, if to the Tenant, at Tenant's Address or such other address as Tenant
shall have last designated by notice in writing to Landlord, with a copy to
Xxxxx, Xxxxxxx & Xxxxxxxxx, 00 Xxxxx Xxxxxx, Xxxxxx, Xxxxxxxxxxxxx 00000,
Attention: Real Estate Department, and, if to Landlord, at Landlord's Address or
such other address as Landlord shall have last designated by notice in writing
to Tenant, with a copy by like means to Xxxxxx X. Xxxx, Esq., Xxxx and Xxxx, 00
Xxxxx Xxxxxx, Xxxxxx, Xxxxxxxxxxxxx 00000. Any notice shall be deemed duly given
three days after being mailed to such address postage prepaid, registered or
certified mail, return receipt requested, or when delivered to such address by
hand.
10.4 BIND AND INURE.
The obligations of this Lease shall run with the land and this Lease shall
be binding upon and inure to the benefit of the parties hereto and their
respective successors and assigns, except that the Landlord named herein and
each successive
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owner of the Xxxxxxx Square Site shall be liable only for the obligations
accruing during the period of its ownership. The obligations of Landlord shall
be binding upon the assets of Landlord which comprise the Xxxxxxx Square Site
but not upon other assets of Landlord. No individual partner, trustee,
stockholder, officer, director, employee or beneficiary of Landlord shall be
personally liable under this Lease and Tenant shall look solely to Landlord's
interest in the Xxxxxxx Square Site in pursuit of its remedies upon an event of
default hereunder, and the general assets of the individual partners, trustees,
stockholders, officers, employees or beneficiaries of Landlord shall not be
subject to levy, execution or other enforcement procedure for the satisfaction
of the remedies of Tenant, upon an event of default hereunder.
10.5 NO SURRENDER.
The delivery of keys to any employee of Landlord or to Landlord's agent or
any employee thereof shall not operate as a termination of this Lease or a
surrender of the Premises.
10.6 NO WAIVER, ETC.
The failure of Landlord or of Tenant to seek redress for violation of, or
to insist upon the strict performance of, any covenant or condition of this
Lease or any of the Rules and Regulations referred to in Section 6.1.4 of this
Lease, whether heretofore or hereafter adopted by Landlord, shall not be deemed
a waiver of such violation nor prevent a subsequent act, which would have
originally constituted a violation, from having all the force and effect of an
original violation, nor shall the failure of Landlord to enforce any of said
Rules and Regulations against any other
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tenant in the Building be deemed a waiver of any such Rules or Regulations. The
receipt by Landlord of Annual Base Rent or additional rent with knowledge of the
breach of any covenant of this Lease shall not be deemed a waiver of such breach
by Landlord, unless such waiver be in writing and signed by Xxxxxxxx. No consent
or waiver, express or implied, by Landlord or Tenant to or of any breach of any
agreement or duty shall be construed as a waiver or consent to or of any other
breach of the same or any other agreement or duty.
10.7 NO ACCORD AND SATISFACTION.
No acceptance by Landlord of a lesser sum than the Annual Base Rent and
additional rent then due shall be deemed to be other than on account of the
earliest installment of such rent due, nor shall any endorsement or statement on
any check or any letter accompanying any check or payment as rent be deemed as
accord and satisfaction, and Landlord may accept such check or payment without
prejudice to Landlord's right to recover the balance of such installment or
pursue any other remedy in this Lease provided.
10.8 CUMULATIVE REMEDIES.
The specific remedies to which Landlord may resort under the terms of this
Lease are cumulative and are not intended to be exclusive of any other remedies
or means of redress to which it may be lawfully entitled in case of any breach
or threatened breach by Tenant of any provisions of this Lease. In addition to
the other remedies provided in this Lease, Landlord and Tenant each shall be
entitled to the restraint by injunction of the violation or attempted or
threatened violation of any of
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the covenants, conditions or provisions of this Lease or to a decree compelling
specific performance of any such covenants, conditions or provisions.
10.9 LANDLORD'S RIGHT TO CURE.
If Tenant shall at any time default in the performance of any obligation
under this Lease and such default should continue after notice and the
expiration of the applicable grace period, Landlord shall have the right, but
shall not be obligated, to enter upon the Premises and to perform such
obligation, notwithstanding the fact that no specific provision for such
substituted performance by Landlord is made in this Lease with respect to such
default. In performing such obligation, Landlord may make any payment of money
or perform any other act. All sums so paid by Xxxxxxxx (together with interest
at the rate of four percent per annum in excess of the then average prime
commercial rate of interest being charged by the three largest national banks in
Boston, Massachusetts), and all necessary incidental costs and expenses in
connection with the performance of any such act by Landlord, shall be deemed to
be additional rent under this Lease and shall be payable to Landlord immediately
on demand. Landlord may exercise the foregoing rights without waiving any other
of its rights or releasing Tenant from any of its obligations under this Lease.
10.10 ESTOPPEL CERTIFICATE.
Xxxxxx agrees, from time to time upon not less than 15 days' prior written
request by Xxxxxxxx, to execute, acknowledge and deliver to Landlord a statement
in writing certifying, to the extent true, that this Lease is unmodified and in
full force
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and effect; that, to Tenant's knowledge, Tenant has no defenses, offsets or
counterclaims against its obligations to pay the Annual Base Rent and additional
rent and to perform its other covenants under this Lease; that, to Tenant's
knowledge, there are no uncured defaults of Landlord or Tenant under this Lease
(or, if there have been any modifications, that this Lease is in full force and
effect as modified and stating the modifications and, if there are any defenses,
offsets, counterclaims, or defaults of which Tenant has knowledge, setting them
forth in reasonable detail); and the dates to which the Annual Base Rent,
additional rent and other charges have been paid. Any such statement delivered
pursuant to this Section 10.10 shall be in a form reasonably acceptable to and
may be relied upon by any prospective purchaser or mortgagee of premises which
include the Premises or any prospective assignee of any such mortgagee.
10.11 WAIVER OF SUBROGATION.
Any insurance carried by either party with respect to the Premises and
property therein or occurrences thereon shall include a clause or endorsement
denying to the insurer rights of subrogation against the other party to the
extent rights have been waived by the insured prior to occurrences of injury or
loss. Each party, notwithstanding any provisions of this Lease to the contrary,
hereby waives any rights of recovery against the other for injury or loss due to
hazards covered by insurance containing such clause or endorsement to the extent
of the indemnification received thereunder.
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10.12 ACTS OF GOD.
In any case where either party hereto is required to do any act, delays
caused by or resulting from Acts of God, war, civil commotion, fire, flood or
other casualty, labor difficulties, shortages of labor, materials or equipment,
government regulations, unusually severe weather or other causes beyond such
party's reasonable control shall not be counted in determining the time during
which work shall be completed, whether such time be designated by a fixed date,
a fixed time or a "reasonable time", and such time shall be deemed to be
extended by the period of such delay. Notwithstanding anything herein contained,
however, the provisions of this Section 10.12 shall not be applicable to
Tenant's obligation to pay rent under the provisions of Article IV, or its
obligations to pay any other sums, monies, costs, charges or expenses required
to be paid by the Tenant hereunder or to Tenant's right to terminate this Lease
pursuant to Section 7.1.
10.13 BROKERAGE.
Xxxxxxxx and Xxxxxx represent and warrant that they have dealt with no
broker in connection with this transaction other than Xxxxxxxxx and Company and
Landlord agrees to defend, indemnify and save Tenant harmless from and against
any and all cost, expense or liability for any compensation, commissions or
charges claimed by any broker or agent other than Xxxxxxxxx and Company with
respect to Xxxxxx's dealings in connection with this Lease.
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10.14 SUBMISSION NOT AN OFFER.
The submission of a draft of this Lease or a summary of some or all of its
provisions does not constitute an offer to lease or demise the Premises, it
being understood and agreed that neither Landlord nor Tenant shall be legally
bound with respect to the leasing of the Premises unless and until this Lease
has been executed by both Landlord and Tenant and a fully executed copy has been
delivered to each of them.
10.15 LANDLORD REMEDIES.
In addition to Landlord's other remedies, Landlord shall have the right,
during the Term of this Lease, to impose upon Tenant a fine of fifty dollars
($50.00) per day for each and every violation by Tenant of reasonable rules and
regulations of Landlord, as such may be promulgated from time to time or for
breach of the terms of this Lease. Such fine may be imposed no sooner than one
(1) business day following written notice by Landlord to Tenant of the breach of
the rules or regulations or terms of this Lease, unless such breach by Tenant of
the rules and regulations or the terms of this Lease cannot be cured within such
one (1) business day period, in which case such fine may be imposed no sooner
than thirty (30) days following written notice by Landlord to Tenant of the
breach of the rules or regulations or the terms of this Lease, provided however,
that if Xxxxxx does not commence to cure such breach of the rules and
regulations or terms of this Lease upon receipt of notice from Landlord and
diligently pursue the curing of the same
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during such thirty (30) day period, such fine may be imposed during such thirty
(30) day period.
10.16 APPLICABLE LAW AND CONSTRUCTION.
This Lease shall be governed by and construed in accordance with the laws
of the Commonwealth of Massachusetts. If any term, covenant, condition or
provision of this Lease or the application thereof to any person or
circumstances shall be declared invalid or unenforceable by the final ruling of
a court of competent jurisdiction having final review, the remaining terms,
covenants, conditions and provisions of this Lease and their application to
persons or circumstances shall not be affected thereby and shall continue to be
enforced and recognized as valid agreements of the parties, and in the place of
such invalid or unenforceable provision, there shall be substituted a like, but
valid and enforceable provision which comports to the findings of the aforesaid
court and most nearly accomplishes the original intention of the parties.
There are no oral or written agreements between Landlord and Tenant
affecting this Lease. This Lease may be amended, and the provisions hereof may
be waived or modified, only by instruments in writing executed by Landlord and
Xxxxxx.
The titles of the several Articles and Sections contained herein are for
convenience only and shall not be considered in construing this Lease.
Unless repugnant to the context, the words "Landlord" and "Tenant"
appearing in this Lease shall be construed to mean those named above and their
respective
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heirs, executors, administrators, successors and assigns, and those claiming
through or under them respectively. If there be more than one tenant, the
obligations imposed by this Lease upon Tenant shall be joint and several.
10.17 LIMITATION OF LANDLORD'S LIABILITY
Tenant agrees in all events to look solely to Xxxxxxxx's interest in the
Xxxxxxx Square Site for satisfaction of any claim against Landlord hereunder and
Xxxxxx agrees that Tenant shall have no other recourse against Landlord, nor
shall Tenant have any recourse against (i) any other property or assets of
Landlord or (ii) the partners, trustees, beneficiaries, shareholders, employees,
officers, directors, agents or principals of Landlord or any of their property
or assets.
10.18 PARKING.
Tenant and its employees, agents, contractors and invitees shall have the
right to use, on a non-exclusive basis, a number of parking spaces in the
parking garage on the Xxxxxxx Square Site equal to one parking space for every
1,000 square feet of rentable area in Tenant's Space from time to time. Tenant
shall pay a monthly charge to Landlord on account of each parking space so used
in any month, which charge shall be equal to the then current market rates;
provided, however, during Lease Years 1 and 2, the monthly charge of the first
four parking spaces so used shall not exceed $100 per month per parking space;
and provided, further, during Lease Year 1, the monthly charge for any parking
spaces above the first four so used shall not exceed $180 per month per parking
space. Tenant and its employees, agents, contractors and invitees shall have
access to said parking garage from the hours of
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6:00 A.M. to 1:00 A.M. only. Tenant shall not permit its employees who have
parking passes for the parking garage to share passes with others who do not
have passes, nor shall Tenant allow its employees to leave vehicles in the
parking garage over weekends or while they are traveling, it being understood
and agreed by Xxxxxx that the parking garage is to be used for purposes of daily
commuting only.
ARTICLE XI
LEASEHOLD IMPROVEMENTS; TENANT ALLOWANCE
11.1 PLANS FOR LEASEHOLD IMPROVEMENTS
11.1.1 Tenant, at Tenant's sole cost and expense, shall cause to be
prepared and delivered to Landlord for Landlord's approval two sets of
preliminary plans and specifications ("preliminary plans") for the renovations
and improvements to Tenant's Initial Space prepared by a registered architect.
11.1.2 Following Xxxxxxxx's approval of the preliminary plans, Tenant, at
Tenant's sole cost and expense, shall cause to be prepared and delivered for
Landlord's approval four sets of working drawings and specifications ("working
drawings") for the renovations and improvements to Tenant's Initial Space
prepared by a registered architect in conformity with the approved preliminary
plans and with Landlord's reasonable requirements and shall make any revisions
reasonably requested by Landlord and shall obtain Landlord's approval on or
before the date that is thirty (30) days after the date hereof; provided,
however, that Landlord shall review the working drawings and respond to Tenant
within three business days of receipt of said drawings and shall not
unreasonably withhold its approval of the
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working drawings. Landlord shall evidence its approval by causing one set of
such working drawings to be initialed on its behalf and returned to the Tenant.
Before beginning construction of Leasehold Improvements in the Expansion Space,
Tenant shall cause to be prepared and delivered to Landlord four sets of working
drawings for the Expansion Space prepared by a registered architect and shall
make any revisions reasonably requested by Landlord and shall obtain Landlord's
approval; provided, however, Landlord shall review the working drawings and
respond to Tenant within three business days of receiving the working drawings
and shall not unreasonably withhold its approval of the working drawings.
Landlord will not approve any construction, alterations or additions requiring
unusual expense to readapt the Premises for office use on lease termination or
unusually increasing the cost of construction, insurance or taxes on the Office
Component or of Landlord's services unless Tenant first gives assurances
acceptable to Landlord that such readaptation will be made prior to such
termination without expense to Landlord and makes provisions acceptable to
Landlord for the payment of such increased cost. Landlord will also disapprove
any alterations or additions requested by Xxxxxx which will in Landlord's
reasonable opinion be harmful to the Office Component or other tenants. All
changes and additions shall be part of the Premises upon termination of the
Lease unless Landlord and Tenant agree otherwise in writing at the time of
approval of such changes or additions.
11.1.3 After Xxxxxxxx's approval of the working drawings, no change shall
be made thereto except as provided in this Section 11.1.3:
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(i) No change may be made by either party without the prior written
consent of the other (which shall not be unreasonably withheld or
delayed).
(ii) All architectural services necessitated shall be rendered by
Xxxxxx's architect at the expense of the party requesting the
change; and
(iii) All construction work necessitated by any change shall be performed
by Xxxxxx's contractor; if the change was requested by Landlord,
Xxxxxx's Allowance (as hereinafter defined) shall be adjusted to
reflect any increase in the cost of the Leasehold Improvements (as
defined below) resulting therefrom.
11.2 CONSTRUCTION BY TENANT.
All work described in the working drawings (the "Leasehold Improvements")
shall be performed by Xxxxxx's general contractor, the identity of which must be
approved by Landlord, which approval shall not be unreasonably withheld. The
construction of the Leasehold Improvements shall be coordinated with any work
being performed by Landlord in such manner as to maintain harmonious labor
relations and not to damage or, in Landlord's reasonable opinion, unreasonably
interfere with operations of or require the making of any structural changes to
the Office Component.
Before commencing construction of the Leasehold Improvements, Tenant at
its own expense shall provide any necessary appropriate riders for fire and
extended coverage and comprehensive general public liability and property damage
insurance covering the risks during the course of such work and certificates
showing that necessary Workmen's Compensation and Employer's Liability Insurance
has been taken out to protect all employees engaged in the work during the
course of such construction. The provisions of Sections 3.1 and 6.1.7 of this
Lease shall apply to any
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work done by Tenant or any agent, employee, invitee or visitor of Tenant under
this Section.
11.3 TENANT ALLOWANCE.
Within ten days after substantial completion of the Leasehold Improvements
in Tenant's Initial Space, delivery to Landlord of a certificate of occupancy
for the Premises and first occupancy by Tenant of the Initial Space, Landlord
shall reimburse Tenant for Tenant's costs and expenses of the Leasehold
Improvements in Tenant's Initial Space, up to a maximum of $50,000 (the "Initial
Allowance"). At Tenant's option all or any portion of the Initial Allowance
shall be applied toward, and paid by Landlord to Tenant on account of, any
charges, additions, alterations or improvements made to any portion of the
Premises in accordance with Section 6.1.15 prior to January 1, 1997.
11.4 LANDLORD'S RIGHT TO TERMINATE LEASE PRIOR TO COMMENCEMENT DATE.
If during the period between the date of execution of this Lease and the
Commencement Date Tenant shall fail to comply with any requirements of this
Article XI, and if such failure shall continue for more than ten (10) days after
written notice from Landlord specifying the failure and if within said ten (10)
day period Tenant has not commenced diligently to correct the failure, then
Landlord may, at its option, cancel and terminate this Lease on the date stated
in said notice. Upon such cancellation neither party shall have any continuing
liability to the other hereunder except that Tenant shall repay to Landlord
immediately upon demand by Landlord therefor all payments made by Landlord to
Tenant, if any, as part of the tenant
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allowance and each party shall remain responsible according to the terms and
provisions of the Lease for its acts or neglects occurring prior to such
cancellation.
11.5 EXPANSION SPACE.
The provisions of this Article XI shall apply to the Expansion Space also,
except that (a) the thirty-day period described in Section 11.1.2 shall run from
the date of delivery of the Expansion Space to Tenant, rather than from the date
hereof, (b) references herein to the "Premises" or the "Initial Space" shall be
deemed to be references to the "Expansion Space" where appropriate, and (c) the
maximum tenant allowance under Section 11.3 for the Expansion Space shall be
$25,000.
ARTICLE XII
RIGHT OF FIRST OFFER
12.1 RIGHT OF FIRST OFFER
Landlord hereby grants to Tenant a right of first offer to lease (the
"Offer Right") space in the Office Component (the "Offer Space") if such Offer
Space becomes available for occupancy before the fourth (4th) anniversary of the
Commencement Date (or before the end of the initial Term, in the event Tenant
has validly exercised its extension option under Section 2.3). The term of any
lease of Offer Space leased pursuant to this Section shall end on the last day
of the Term of this Lease.
If Landlord desires to lease the Offer Space, Landlord shall first send
Tenant notice of the specific terms and conditions, including, without
limitation, the
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applicable annual base rent and the length of term, upon which Landlord desires
to lease such Offer Space (the "Proposed Terms"). Tenant shall have five (5)
business days subsequent to receipt by Tenant of such notice from Landlord (the
"Offer Date") in which to exercise its option to lease the Offer Space on the
Proposed Terms.
Within five (5) business days after the Offer Date, Tenant shall by notice
to Landlord accept or reject the offer on the Proposed Terms (failure of Tenant
to respond within such five-business-day period shall be deemed a rejection of
the offer). In the event Tenant does not accept the offer on the Proposed Terms,
Landlord shall be free for a period up to six (6) months to lease such Offer
Space to any third party on substantially the same terms and conditions as set
forth in the Proposed Terms; provided, however, that Landlord shall be entitled
to include in any lease to any such third party, in addition to the Proposed
Terms, commercially reasonable provisions relating to allowances for tenant
improvements. In the event Landlord has not within such six-month period signed
a commitment to lease the applicable Offer Space to a third party on
substantially the same terms and conditions as are contained in the Proposed
Terms, Tenant's rights under this Section shall again be effective with respect
to such Offer Space. Notwithstanding the foregoing, Xxxxxx's right to accept any
offer hereunder and to lease any Offer Space is subject to the additional
conditions precedent that at the time Tenant exercises its right to lease any
such Offer Space and at the time the lease for any such Offer Space commences
(i) Tenant shall not be in default under this Lease beyond applicable
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grace or cure periods, and (ii) Tenant shall not have sublet any portion of the
Premises or assigned this Lease pursuant to Section 6.1.6 hereof.
The rights of Tenant under this Section are expressly subordinate to, and
shall not apply to any extension, expansion or first offer rights granted to
other tenants of the Office Component prior to the date hereof. The rights of
Tenant set forth in this Section shall not be binding upon any institution or
mortgagee which acquires title to the Building or any portion thereof through
foreclosure by sale or deed in lieu thereof, or to anyone claiming by, through
or under such institution or mortgagee.
Any person dealing with the Offer Space may, without further inquiry, rely
upon a representation in a certificate of Landlord or its successor in title as
to whether or not the provisions of this Section have been satisfied. Time is of
the essence with respect to this Section.
EXECUTED as a sealed instrument in two or more counterparts on the day and
year first above written.
LANDLORD:
TRUSTEES OF KSA REALTY TRUST
By: /s/ X. Xxxxxxx Xxxxxxx, III
-----------------------------------
, as Trustee of KSA
Realty Trust and for Co-Trustees, but
not individually
By: /s/ Xxxxxxx X. Xxxxxxxx
-----------------------------------
, as Trustee of KSA
Realty Trust and for Co-Trustees, but
not individually
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TENANT:
CAMBRIDGE ENERGY RESEARCH
ASSOCIATES LIMITED PARTNERSHIP
By: /s/ CAMBRIDGE ENERGY RESEARCH ASSOCIATES, INC.
----------------------------------------------
General Partner
By: /s/ Xxxxxx Xxxxxx
-----------------------------------
Name: Xxxxxx Xxxxxx
Title: President/CEO
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EXECUTION
FIRST AMENDMENT TO LEASE
------------------------
THIS FIRST AMENDMENT TO LEASE (the "Amendment") is dated as of September
26, 1996 by and between TRUSTEES OF KSA REALTY TRUST under Declaration of Trust
dated June 11, 1982 and recorded with Middlesex South Registry of Deeds in Book
14635, Page 542, as amended ("Landlord"), and CAMBRIDGE ENERGY RESEARCH
ASSOCIATES LIMITED PARTNERSHIP, a Delaware limited partnership ("Tenant").
R E C I T A L S
---------------
WHEREAS, Landlord and Tenant are parties to (a) that certain Lease dated
July 27, 1995 relating to 21,515 rentable square feet of space (the "Original
Premises") on the fourth floor of the office component of the Xxxxxxx Square
complex in Cambridge, Massachusetts (the "Lease"), and (b) that certain side
letter agreement dated September 26, 1995 relating to the Lease (the "Letter
Agreement"); and
WHEREAS, Landlord and Tenant desire to amend the Lease to include within
the premises leased thereunder 1,070 rentable square feet located on the third
floor of the office component, on the terms and conditions set forth below.
A G R E E M E N T
-----------------
NOW, THEREFORE, in consideration of Ten Dollars ($10.00), and for other
good and valuable consideration, the receipt and sufficiency of which are hereby
acknowledged and agreed, Landlord and Tenant hereby agree as follows:
1. ADDITIONAL PREMISES. Effective as of October 1, 1996, the Premises
shall include the 1,070 rentable square feet of space shown on the floor plan
attached hereto as Exhibit A (the "Additional Premises"). Landlord shall deliver
the Additional Premises to Tenant on October 1, 1996 broom-clean and free of all
occupants but otherwise as-is, where-is and with all faults and expressly
without representation or warranty of any kind.
2. ANNUAL BASE RENT. Annual Base Rent for the Additional Premises shall
be payable commencing on November 1, 1996, in the same manner and at the same
times as Annual Base Rent is payable for the Original Premises, at the following
rates:
69
November 1, 1996 - $14,623.33 ($1,827.92 per
June 30, 1997: month, $20.50 per annum per
rentable square foot)
July 1, 1997 - $25,284.10 ($2,107.01 per
June 30, 1998: month, $23.63 per annum per
rentable square foot)
July 1, 1998 - $26,155.56 ($2,179.63 per
June 30, 2000: month, $24.44 per annum per
rentable square foot)
3. OPERATING COST ESCALATION. Operating Cost Escalation for the
Additional Premises shall be payable, commencing on January 1, 1997, in the same
manner and at the same times as Operating Cost Escalation is payable for the
original Premises, except that the calculation to be performed under Section
4.2(b) of the Lease shall, with respect to the Additional Premises (but not the
Original Premises), be performed using Landlord's Operating Costs for calendar
year 1996 instead of Annual Operating Costs for 1994.
4. REAL ESTATE TAX ESCALATION. Real Estate Tax Escalation for the
Additional Premises shall be payable, commencing on January 1, 1997, in the same
manner and at the same times as Real Estate Tax Escalation is payable for the
original Premises, except that the calculation to be performed under Section
4.3(b) of the Lease shall, with respect to the Additional Premises (but not the
Original Premises), be performed using Landlord's Real Estate Taxes for calendar
year 1996 instead of Annual Operating Costs for 1994.
5. ELECTRICITY. All of the provisions of Section II of the Letter
Agreement relating to the original Premises shall apply as well to the
Additional Premises.
6. MISCELLANEOUS. Capitalized terms used herein but not defined shall
have the meanings ascribed to them in the Lease. Except as amended hereby, the
Lease shall remain unmodified and in full force and effect, and the Lease is
hereby ratified and confirmed. This Amendment may be executed in counterpart
originals which, taken together, shall constitute a single original instrument.
70
EXECUTED as an instrument under seal as of the date first above written.
LANDLORD:
/s/ Xxxxxxx X. Xxxxxxxx
------------------------------------------
Xxxxxxx X. Xxxxxxxx, as Trustee of KSA
Realty Trust but not individually
/s/ X. Xxxxxxx Blaxter, III
------------------------------------------
X. Xxxxxxx Xxxxxxx, III, as Trustee of KSA
Realty Trust but not individually
TENANT:
CAMBRIDGE ENERGY RESEARCH
ASSOCIATES LIMITED PARTNERSHIP, a
Delaware limited partnership
By: Cambridge Energy Research
Associates, Inc.
By: /s/ Xxxxxx X. Xxxxxxx, Xx.
---------------------------------
Name:Xxxxxx X. Xxxxxxx, Xx.
Title:Chief Financial Officer
71
September 26, 1995
Cambridge Energy Research Associates
Limited Partnership
00 Xxxxxxxxxx Xxxx
Xxxxxxxxx, XX 00000
Re: Lease dated July __, 1995
by and between Trustees of KSA Realty
Trust ("Landlord") and Cambridge Energy
Research Associates ("Tenant") for
Premises at Xxxxxxx Square, Cambridge,
Massachusetts (the "Lease")
----------------------------------------
Ladies and Gentlemen:
This side letter agreement is entered into in connection with the Lease to
memorialize (a) certain representations and warranties of Landlord made to
Tenant and (b) the agreement of Landlord and Tenant with respect to electrical
service to the Premises. Capitalized terms used herein but not defined shall
have the meanings ascribed to them in the Lease.
I. LANDLORD REPRESENTATIONS AND WARRANTIES
Landlord hereby represents and warrants to Tenant as follows:
A. GROUND LEASE AND MORTGAGE
(i) Landlord has delivered to Tenant a true, correct and complete
copy of the ground lease affecting the Xxxxxxx Square complex
(the "Ground Lease");
(ii) EMI Cambridge Limited Partnership ("Ground Lessor") is the
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Cambridge Energy Research Associates
Limited Partnership
Page 2
September 26, 1995
current holder of the ground lessor's interest under the Ground
Lease;
(iii) To the best of Xxxxxxxx's knowledge, neither Ground
Lessor nor Landlord is in default under the Ground
Lease, nor has any event occurred which, after any
applicable notice and/or the expiration of any
applicable grace period, shall constitute a default
under the Ground Lease;
(iv) All rent, additional rent and other charges due under
the Ground Lease have been paid through July 31, 1995;
(v) The only mortgage, deed of trust or similar security
instrument present encumbering the Xxxxxxx Square Site
is held by Aetna Life and Casualty Company
("Mortgagee");
(vi) Mortgagee is the current holder of the mortgagee's
interest under the Mortgage;
(vii) To the best of Landlord's knowledge, Landlord is not in
default under the Mortgage or the other documents
creating obligations secured by the Mortgage, nor has an
event occurred which, after any applicable notice and/or
expiration of any applicable grace period, shall
constitute a default under the Mortgage or such
documents; and
(viii) All principal, interest and other charges due under the
Mortgage and such documents has been paid through July
31, 1995.
B. PRIOR EXPANSION/FIRST OFFER AND REFUSAL RIGHTS
Set forth on the schedule attached to this letter is a list of existing
tenants of the Office Component which have expansion, first offer and/or first
refusal rights that precede and are superior to those granted to Tenant in the
Lease.
II. ELECTRICITY
A. Tenant shall pay Landlord for all electrical energy used in or
for the benefit of the Premises, such payments to be considered additional rent.
Tenant
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Cambridge Energy Research Associates
Limited Partnership
Page 3
September 26, 1995
initially shall pay an amount equal to $1.20 per annum per square foot of
rentable area in the Premises (i.e., $22,506 per annum, $1,875.50 per month), in
equal installments in advance on the first day of each calendar month included
in the Term.
B. Landlord shall have the right to meter Tenant's actual
consumption of electrical energy (at Landlord's cost). Landlord may adjust the
monthly payments described above to reflect Xxxxxx's actual consumption of
electrical energy.
X. Xxxxxx's use of electrical energy in the Premises shall not at
any time exceed the capacity of any of the electrical conductors or equipment in
or otherwise serving the Premises. In order to insure that such capacity is not
exceeded and to avert possible adverse effect upon the Office Component electric
service, Tenant shall not, without prior written notice to Landlord in each
instance, connect to the Office Component electric distribution system any
fixtures, appliances or equipment which operate on a voltage in excess of 120
volts nominal or make any alteration or addition to the electric system of the
Premises. Unless Landlord shall reasonably object to the connection of any such
fixtures, appliances or equipment, all additional risers or other equipment
required there for shall be provided by Landlord, and the cost thereof shall be
paid by Tenant upon Xxxxxxxx's demand. In the event of any such connection,
Xxxxxx agrees to an increase in the monthly payments described above by an
amount which will reflect the cost to Landlord of the additional service to be
furnished by Landlord, such increase to be effective as of the date of any such
connection. If Landlord and Tenant cannot agree on such amount, such amount
shall be conclusively determined by a reputable independent electrical engineer
or consulting firm to be selected by Landlord and paid equally by both parties.
D. If at any time after the date of the Lease, the rates at which
Landlord purchases electrical energy from the public utility supplying
electrical service to the Office Component, or any charges incurred or taxes
payable by Landlord in connection therewith, shall be increased or decreased,
the monthly payments described above shall be increased or decreased, as the
case may be, by an amount equal to the estimated increase or decrease, as the
case may be, in Landlord's cost of furnishing the electricity referred to above
as a result of such increase or decrease in rates, charges or taxes. If Landlord
and Tenant cannot agree on such amount, such amount shall be conclusively
determined by a reputable independent electrical engineer or consulting firm to
be selected by Landlord and paid equally by both parties. Any such increase or
decrease shall be effective as of the date of the increase or decrease in such
rate, charges or taxes.
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Cambridge Energy Research Associates
Limited Partnership
Page 4
September 26, 1995
X. Xxxxxxxx may, at any time, elect to discontinue the furnishing
of electrical energy. In the event of any such election by Landlord: (1)
Landlord agrees to give reasonable advance notice of any such discontinuance to
Tenant; (2) Landlord agrees to permit Tenant to receive electrical service
directly from the public utility supplying service to the Office Component and
to permit the existing feeders, risers, wiring and other electrical facilities
serving the Premises to be used by Tenant and/or such public utility for such
purpose to the extent they are suitable and safely capable; (3) Landlord agrees
to pay such charges and costs, if any, as such public utility may impose in
connection with installation of Tenant's meters and to make or, at such public
utility's election, to pay for such other installations as such public utility
may require, as a condition of providing comparable electrical service to
Tenant; (4) Tenant shall no longer be required to pay the monthly payments
described above; and (5) Tenant shall thereafter pay, directly to the utility
furnishing the same, all charges for electrical services to the Premises.
Kindly acknowledge your consent to the foregoing by signing and
returning the enclosed counterpart of this side letter agreement.
TRUSTEES OF KSA REALTY TRUST
By: Xxxxxxxxx & Company, Inc.,
Managing Agent
By: /s/ Xxxx X. Xxxxxxx
--------------------------------------
Name: Xxxx X. Xxxxxxx
--------------------------------
Title: Vice President Finance
-------------------------------
and Adminstration
-------------------------------
ACCEPTED AND AGREED:
CAMBRIDGE ENERGY RESEARCH
ASSOCIATES LIMITED PARTNERSHIP
By: /s/ Xxxxxx X. Xxxxxxx, Xx.
--------------------------------------
Name: Xxxxxx X. Xxxxxxx, Xx.
--------------------------------
Title: Chief Financial Officer
-------------------------------
