Single Tenant Commercial Lease

SINGLE TENANT COMMERCIAL LEASE
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By and Between
WESTBOROUGH LAND REALTY TRUST
LANDLORD
and


APPLIX, INC.


TENANT


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THE SUBMISSION OF A DRAFT OF THIS LEASE DOES NOT
CONSTITUTE AN OFFER AND NEITHER PARTY SHALL BE BOUND UNLESS
AND UNTIL A FINAL LEASE IS EXECUTED AND DELIVERED.


LENARD B. ZIDE, ESQ.
ZIDE, FIERMAN & ASSOCIATES, LLP
352 NEWBURY STREET
BOSTON, MA 02115
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TEL: (617) 266-3333 / FAX: (617) 266-3391


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APPLIX, INC. LEASE AGREEMENT


TABLE OF CONTENTS 1 BASIC DATA.........................................................................................1
1.2 Exhibits................................................................................3
1.3 Additional Definitions..................................................................3 2 PREMISES...........................................................................................5
2.1 Premises................................................................................5
2.2 Condition of Premises...................................................................6
2.3 Security................................................................................6 3 TERM/EXTENSION TERM................................................................................6
3.1 Term....................................................................................6
3.2 Extension Term..........................................................................6 4. BASE RENT.........................................................................................7
4.1 Base Rent - Term........................................................................7
4.2 Base Rent - Extension Term..............................................................7
4.2 Late Payment of Rent....................................................................7 5. ADDITIONAL RENT...................................................................................8
5.1 Taxes and Operating Expenses............................................................8
5.2 Real Estate Taxes.......................................................................8
5.3 Operating Expenses......................................................................8
5.4 Tax and Expense Stop Increases..........................................................9
5.5 Records.................................................................................9 6. UTILITIES AND SERVICES............................................................................10
6.1 Utilities...............................................................................10
6.2 Landlord Services.......................................................................10
6.3 Personal Property.......................................................................11 7. USE OF PREMISES...................................................................................11 8. TENANT IMPROVEMENTS...............................................................................12 9. PROPERTY OF TENANT................................................................................13 10. MAINTENANCE, OPERATIONS AND REPAIRS..............................................................14 11. SIGNS/ADVERTISING................................................................................15 12. ASSIGNMENT.......................................................................................16
12.1 Assignment of Lease....................................................................16
12.2 Intracorporate Transfers...............................................................16
12.3 Landlord's Option......................................................................17 13. SUBORDINATION....................................................................................17 14. LANDLORD'S ACCESS................................................................................18 15. INDEMNIFICATION..................................................................................18
15.1 Indemnification........................................................................18
15.2 Tenant Insurance.......................................................................18
15.3 Tenant Property........................................................................18
15.4 Waiver of Subrogation..................................................................19 16. CASUALTY.........................................................................................19
16.1 Fire or Other Casualty.................................................................19
16.2 Landlord's Obligation to Rebuild.......................................................19
16.4 Tenant's Termination Right.............................................................19
16.4 Rent Abatement.........................................................................20
16.5 Definition of Substantial Damage.......................................................20
16.6 Condemnation/eminent Domain............................................................20 17. DEFAULT..........................................................................................20 18. DAMAGES..........................................................................................21
18.1 Damages................................................................................21 19. NOTICES..........................................................................................22 20. SURRENDER........................................................................................23 21. NO BROKER........................................................................................23


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APPLIX, INC. LEASE AGREEMENT


22. HAZARDOUS WASTE..................................................................................24
22.1 Prohibitions...........................................................................24
22.2 Indemnification........................................................................24 23. ESTOPPEL CERTIFICATE.............................................................................24 24. NOTICE OF LEASE..................................................................................24 25. SECURITY DEPOSIT.................................................................................25
25.1 Security Deposit.......................................................................25
25.2 Reduced Security Deposit...............................................................25 26. ADDITIONAL COVENANTS.............................................................................26
26.1 Unlawful Trade.........................................................................26
26.2 Landlord Liability.....................................................................26
26.3 Landlord/tenant Representation.........................................................26
26.4 Validity and Binding Affect............................................................26
26.5 Construction...........................................................................26
26.6 Period of Ownership....................................................................27
26.7 Right to Self-help.....................................................................27 27. MISCELLANEOUS....................................................................................27
27.1 Massachusetts Law......................................................................27
27.2 Severability...........................................................................27
27.3 Waiver.................................................................................27
27.4 Successors and Assigns.................................................................27
27.5 Integration............................................................................27
27.6 Holdover...............................................................................27
27.7 Usury..................................................................................28
27.8 Landlord's Right to Maintain Pipes.....................................................28
27.9 Peaceful Enjoyment.....................................................................28
27.10 Assignment of Rents...................................................................28
27.11 Landlord's Limited Guarantee..........................................................28 EXHIBIT A - PLAN OF THE PREMISES.....................................................................30 EXHIBIT B -WORK LETTER...............................................................................31 EXHIBIT C - CLERK'S CERTIFICATE......................................................................40 EXHIBIT D - CERTIFICATE OF GOOD STANDING.............................................................41 EXHIBIT E - COMMENCEMENT DATE MEMORANDUM.............................................................42 EXHIBIT F - RULES AND REGULATIONS....................................................................43 EXHIBIT G - TENANT'S ESTOPPEL CERTIFICATE............................................................44 EXHIBIT H - IRREVOCABLE LETTER OF CREDIT.............................................................45 EXHIBIT I - SNDA.....................................................................................47 EXHIBIT J - PARKING AND ACCESS PLAN..................................................................50


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APPLIX, INC. LEASE AGREEMENT


SINGLE TENANT LEASE AGREEMENT


GREAT WAY PLACE
WESTBOROUGH, MASSACHUSETTS


LESLIE CAREY, TRUSTEE, of the WESTBOROUGH LAND REALTY TRUST, u/d/t dated May 29, 1997, and recorded with the Worcester County Registry of Deeds Book 18882, Page 317 (hereinafter called "Landlord"), which expression shall include its successors and assigns where the context so admits, does hereby lease to APPLIX, INC., a Massachusetts Corporation with a principal place of business at 112 Turnpike Road, Westborough, MA 01581 (hereinafter called "Tenant"), which expression shall include its successors and assigns where the context so admits, and Tenant hereby leases from Landlord the following described premises.


WITNESSETH:
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ARTICLE 1


BASIC DATA


1.1 Basic Data. The following sets forth basic data hereinafter referred to in this lease, and, where applicable, constitute definitions of the terms hereinafter listed.


(a) THE TENANT: APPLIX, INC.;


(b) PRESENT MAILING ADDRESS OF THE TENANT: 112 TURNPIKE ROAD, WESTBOROUGH,
MA 01581;


(c) THE TENANT'S TRADE NAME: APPLIX


(d) PREMISES: THE ENTIRETY OF THE BUILDING LOCATED AT 289-291
TURNPIKE ROAD, WESTBOROUGH, MA, CONSISTING OF
APPROXIMATELY 49,920+/- TOTAL RENTABLE SQUARE FEET AND
AS SHOWN ON THE PLAN ATTACHED HERETO AS EXHIBIT "A".
UPON COMPLETION OF THE FINAL PLANS (AS DEFINED IN THE
WORK LETTER) LANDLORD SHALL PROVIDED TENANT WITH A SET
OF "AS-BUILT" DRAWINGS SHOWING THE ACTUAL RENTABLE AREA
OF THE PREMISES;


(e) LEASE TERM: TWELVE (12) YEARS;


(f) EXTENSION TERM: ONE (1) OPTION TO EXTEND TERM FOR FIVE (5) YEARS;


(g) COMMENCEMENT DATE: THE LATER OF (a) NOVEMBER 1, 2001 (THE "TARGET
COMMENCEMENT DATE"), OR (b) THE DATE UPON WHICH
THE PREMISES ARE SUBSTANTIALLY COMPLETE. THE
PREMISES SHALL BE DEEMED TO BE "SUBSTANTIALLY
COMPLETE" ON THE LATER OF: (1) LANDLORD FILES OR
CAUSES TO BE FILED WITH THE TOWN OF WESTBOROUGH
AND DELIVERS TO TENANT AN ARCHITECT'S NOTICE OF
SUBSTANTIAL COMPLETION, OR SIMILAR WRITTEN NOTICE
THAT THE PREMISES ARE SUBSTANTIALLY COMPLETE; OR
(2) A CERTIFICATE OF OCCUPANCY (OR A REASONABLY
SUBSTANTIAL EQUIVALENT SUCH AS A SIGNOFF FROM A
BUILDING INSPECTOR OR A


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APPLIX, INC. LEASE AGREEMENT


TEMPORARY CERTIFICATE OF OCCUPANCY) IS ISSUED FOR THE
PREMISES. TENANT MAY ENTER THE PREMISES PRIOR TO THE
COMMENCEMENT DATE TO PREPARE THE PREMISES FOR OCCUPANCY,
PROVIDED TENANT FIRST DELIVER TO LANDLORD PROOF OF THE
REQUIRED INSURANCE AND PROVIDED FURTHER THAT TENANT SHALL BE
RESPONSIBLE FOR ALL UTILITIES USED OR CONSUMED THEREIN;
PROVIDED, HOWEVER, SHOULD TENANT COMMENCE BUSINESS
OPERATIONS IN THE PREMISES DURING THIS PERIOD, THE
COMMENCEMENT DATE SHALL BE DEEMED TO OCCUR ON SUCH DATE;


(h) RENT COMMENCEMENT DATE: THE COMMENCEMENT DATE;


(i) EXPIRATION DATE: 11:59 P.M. ON THE LAST DAY OF THE TWELFTH (12TH)
FULL YEAR AFTER THE COMMENCEMENT DATE;


(j) (i) BASE RENT: TERM:


----------------------------------------------------
MONTHS SQ. FEET RATE TOTAL ----------------------------------------------------
1-60 49,920 $28.00 $1,397,760.00 ----------------------------------------------------
61-120 49,920 $30.00 $1,497,600.00 ---------------------------------------------------- 121-144 49,920 $32.00 $1,597,440.00 ----------------------------------------------------


(ii) BASE RENT: EXTENSION TERM: FAIR MARKET RENT;


(k) REAL ESTATE TAXES/ OPERATING EXPENSES/INSURANCE: TENANT'S BASE RENT
INCLUDES A MINIMUM $6.00 PER RENTABLE SQUARE FOOT CHARGE FOR REAL
ESTATE TAXES, OPERATING EXPENSES AND INSURANCE (AS DEFINED IN SS.5
HEREINBELOW). COMMENCING ON THE FIRST ANNIVERSARY OF THE COMMENCEMENT
DATE AND FOR EACH AND EVERY LEASE-YEAR THEREAFTER DURING THE TERM OF
THE LEASE, TENANT SHALL BE SOLELY RESPONSIBLE FOR ANY AND ALL
INCREASES OVER THE INITIAL TAX AND EXPENSE STOP (AS DEFINED IN SS.5.1
HEREINBELOW);


(l) USE/RESTRICTION: FOR OFFICE, RESEARCH AND DEVELOPMENT USE AND FOR ALL
USES DIRECTLY RELATED THERETO, AND FOR NO OTHER
PURPOSE;


(m) SECURITY DEPOSIT: IRREVOCABLE LETTER OF CREDIT ("LC") IN THE AMOUNT OF
ONE MILLION FIFTY THOUSAND ($1,050,000.00) DOLLARS
SUBJECT TOSS.25 HEREINBELOW;


(n) GUARANTOR OF THE TENANT'S OBLIGATIONS: N/A;


(o) COMMERCIAL GENERAL LIABILITY INSURANCE: BODILY INJURY: $5,000,000.00
PROPERTY DAMAGE: $5,000,000.00


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APPLIX, INC. LEASE AGREEMENT


(p) NOTICES: LANDLORD: WESTBOROUGH LAND REALTY TRUST
C/O NEW ENGLAND MANAGEMENT AND REALTY
259 TURNPIKE ROAD
SOUTHBOROUGH, MA 01772
ATTENTION: ALLEN HIGHT
TEL: 508-485-3999
FAX: 508-485-7111


TENANT: (a) BEFORE THE COMMENCEMENT DATE:
APPLIX, INC.
112 TURNPIKE ROAD
WESTBOROUGH, MA 01581
ATTENTION: EDWARD TERINO, CFO
TEL: 508-870-0300
FAX: 508-616-0608


(b) AFTER THE COMMENCEMENT DATE:
AT THE PREMISES


1.2. EXHIBITS. The exhibits listed below in this section are incorporated in this Lease by reference and are to be construed as part of this Lease:


EXHIBIT A - PLAN OF THE PREMISES
EXHIBIT B - WORK LETTER
EXHIBIT C - CLERK CERTIFICATE
EXHIBIT D - CERTIFICATE OF GOOD STANDING
EXHIBIT E - COMMENCEMENT DATE MEMORANDUM
EXHIBIT F - RULES AND REGULATIONS
EXHIBIT G - TENANT'S ESTOPPEL LETTER
EXHIBIT H - IRREVOCABLE LETTER OF CREDIT
EXHIBIT I - SUBORDINATION NONDISTURBANCE AND ATTORNMENT AGREEMENT
EXHIBIT J - PARKING AND ACCESS PLAN


1.3 ADDITIONAL DEFINITIONS.


ADDITIONAL RENT. All sums and other charges (other than Base Rent) either due from Tenant to Landlord hereunder or incurred by Landlord as the result of a Default.


ADDITIONAL SERVICES. Services provided to Tenant or in respect of the Premises which are not described in ss.6.2 hereto.


ADJUSTED OPERATING EXPENSE BASE RATE. The amount determined by multiplying the Operating Expense Base Rate by the Adjustment Factor.


ADJUSTMENT FACTOR. With respect to the First Calendar Year and the Last Calendar Year, the percentage computed by dividing (i) the number of days of each respective period falling within the Lease Term by (ii) 365.


AFFILIATE: Any Person who directly or indirectly controls or is controlled by or is under direct or indirect common control with another Person, including, without limitation, any Person with whom a Person is merged or consolidated, or who purchases all or substantially all of the assets of a Person.


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APPLIX, INC. LEASE AGREEMENT


"Control" means the power to direct the management and policies of such Person, directly or indirectly, through the exercise of voting rights, by contract, or otherwise.


ALTERATIONS. Except as set forth below, any and all alterations, additions, improvements and/or renovations to the Building or other improvements located on the Land made or desired to be made by Tenant or required hereunder to be made by Tenant, whether in preparation for the initial occupancy of the Building by Tenant or at any time thereafter during the Lease Term.


APPLICABLE LAW REQUIREMENTS. All statutes, codes, and ordinances (and all rules and regulations thereunder), all executive orders and other administrative orders, judgments, decrees, injunctions and other judicial orders of or by any Governmental Authority which may at any time be applicable to parts or appurtenances of the Premises, or to any condition or use thereof, and the provisions of all Authorizations.


AUTHORIZATIONS. All approvals, licenses, permits, franchises, and other consents issued by Governmental Authorities pursuant to Legal Requirements which are or may be required for either (a) the use and occupancy of the Premises for the conduct or continuation of a Permitted Use therein or (b) the construction or installation of any Alterations.


BUILDING SYSTEMS. The plumbing, heating, ventilating, air conditioning, elevators, mechanical, electrical and fire protection systems, installations and facilities of the Premises.


BUSINESS DAY. A day which is not a Saturday after 1:00 P.M., Sunday or other day on which either the New York Stock Exchange or banks in Westborough, Massachusetts are closed.


DEFAULT. Any event or condition specified in Article 17 hereof so long as any applicable requirement for the giving of notice or lapse of time, or both, have not been fulfilled or expired.


EVENT OF DEFAULT. Any event or condition specified in Article 17 hereof (if all applicable periods for both the giving of notice and lapse of time have been fulfilled).


EXPIRATION DATE. 11:59 P.M. on the last day of the one hundred forty fourth (144th) month after the Commencement Date.


FORCE MAJEURE. The occurrence of any event which is beyond the reasonable control of Landlord or Tenant, PROVIDED, HOWEVER, Tenant's timely payment of Base Rent, Additional Rent or any other monetary obligation under this Lease, shall never be excused hereunder, including, without limitation, the inability to obtain building permits or other approvals from Governmental Authorities on a timely basis, unavailability of building materials, strikes and labor disruptions, unusual weather conditions, Act of God, Acts of War, building moratoriums, sewer moratoriums, earthquake, fire, flood or other natural disaster.


GOVERNMENTAL AUTHORITY. United States of America, the Commonwealth of Massachusetts, the Town of Westborough, County of Worcester, and any political or quasi-public subdivision thereof and any agency, authority, department, commission, board, bureau or instrumentality of any of them.


HAZARDOUS MATERIALS. Any chemical, substance, waste, material, gas or emission which is deemed hazardous, toxic, a pollutant, or a contaminant under any statute, ordinance, by-law, rule, regulation, executive order or other administrative order, judgment, decree, injunction or other judicial order of or by any Governmental Authority, now or hereafter in effect, relating to pollution or protection of human health or the environment. By way of illustration and not limitation, "Hazardous Materials" includes asbestos, radioactive materials, and "oil," "hazardous materials," "hazardous waste," "hazardous substance" and "toxic material" as defined in the Comprehensive Environmental Response, Compensation and Liability Act, 42 U.S.C. Section 9601 ET SEQ., as amended, and the Toxic Substances Control Act, 15 U.S.C. Section


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APPLIX, INC. LEASE AGREEMENT


2601 ET SEQ., as amended, the regulations promulgated thereunder, and Massachusetts General Laws, Chapter 21C and Chapter 21E and the regulations promulgated thereunder.


INSURANCE REQUIREMENTS. All terms of any policy of insurance maintained by Tenant and applicable to (or affecting any condition, operation, use or occupancy of), the Premises or any part or parts thereof, and all requirements of the issuer of any such policy and all orders, rules, regulations and other requirements of the National Board of Fire Underwriters (or any other body exercising similar functions).


LEASE TERMINATION DATE. The earlier to occur of (1) the stated Expiration Date, (2) the termination of this Lease by Landlord as a result of an Event of Default, (3) the termination of this Lease pursuant to Article 16 (Casualty) hereof.


LEASE YEAR. The period of time commencing on the Commencement Date and ending on the day preceding the first (1st) anniversary of the Commencement Date, and each one (1) year period thereafter throughout the Lease Term.


OPERATING COST STATEMENT. A statement in writing signed by Landlord, setting forth the amounts payable by Tenant for a specified computation year pursuant to ss.ss.5.3 and 5.4 below.


PERSON. Any person or entity, including without limitation, an individual, a corporation, a company, a voluntary association, a partnership, a trust, or an unincorporated organization.


PRIME RATE. A rate of interest equal to the so-called "Prime Rate" announced by the Wall Street Journal.


REAL ESTATE TAX STATEMENT. A statement in writing signed by Landlord, setting forth the amounts payable by Tenant for a specified computation period pursuant to ss.5.2 below.


SUBSTANTIAL COMPLETION. The completion of Landlord's work (not including punch-list items) in such fashion as to enable Tenant to take possession of the Premises and use the same for the permitted uses in the normal course and in compliance with all laws.


TAX YEAR. The tax year of the Town of Westborough commencing on July 1st and ending on the following June 30th, subject to modification in the event of a change in the tax year.


TIME IS OF THE ESSENCE. It is agreed that time is of the essence of this lease.


ARTICLE 2


PREMISES


2.1 PREMISES. Landlord hereby leases to Tenant the Building and that portion of the Land (or all thereof if the Building constitutes the material improvement thereon) upon which the Building is situated and as defined in ss.1.1(d) (hereinafter collectively referred to as the "PREMISES") as shown on EXHIBIT A attached hereto.


Landlord reserves the right from time to time, with reasonable prior written or oral notice, without unreasonable interference or disruption of Tenant's use, and for the benefit of Landlord: (a) to install, use, maintain, repair, replace and relocate (in the case of relocation, with Tenant's prior reasonable consent, which consent shall neither be unreasonably withheld, conditioned or delayed) for service to the Premises and other parts of the Building, or either, pipes, ducts, conduits, wires and appurtenant fixtures, wherever located in the Premises or Building; and (b) to alter or relocate any other common facility.


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APPLIX, INC. LEASE AGREEMENT


2.2 CONDITION OF PREMISES. Notwithstanding anything to the contrary contained in this lease, by taking possession of the Premises, Tenant will be deemed to have fully examined the Premises, be aware of the existing condition of the Premises and will have determined that the Premises are acceptable for Tenant's use, and, Tenant acknowledges that, except as set forth in the Work Letter, neither Landlord nor any broker or agent has made any representations or warranties in connection with the physical condition of the Premises or their fitness for Tenant's use upon which Tenant has relied directly or indirectly for any purpose. By taking possession of the Premises, Tenant accepts the Premises "AS-IS" and waives all claims of defect in the Premises, except as set forth in the Work Letter, except for punch list items and defects in materials or workmanship or substantial deviations from the approved plans claimed by Tenant within one (1) year after the Commencement Date, which Landlord shall be responsible to remedy at its expense (not as an operating expense) except in the event such damage or defect is caused by the negligent acts or omissions of Tenant.


2.3 SECURITY. Tenant acknowle ...