GMCR » Topics » Premises and Term

This excerpt taken from the GMCR 10-K filed Dec 13, 2007.

Premises and Term

 

2.1 Premises. Landlord hereby leases to Tenant and Tenant hereby leases from Landlord, subject to and with the benefit of the terms, covenants, conditions and provisions of this Lease, the Premises, excluding the roof, exterior faces of exterior walls, the common stairways, stairwells, elevators and elevator shafts, and pipes, ducts, conduits, wires, and appurtenant fixtures serving exclusively or in common other parts of the Building (and any areas, such as the space above the ceiling or in the walls, that may contain such pipes, ducts, conduits, wires or appurtenant fixtures), and if Tenant’s space includes less than entire rentable area of any floor, excluding the central core area of such floor.

Tenant shall have, as appurtenant to the Premises, rights to use in common, subject to reasonable rules of general applicability to tenants of the Building from time to time made by Landlord of which Tenant is given notice: (a) the common lobbies, hallways, stairways, and elevators of the Building, (b) common walkways and driveways necessary for access to the Building, (c) the common parking areas serving the Building, and (d) if the Premises include less than the entire rentable area of any floor, the common toilets and other common facilities in the central core area of such floor.

Landlord shall ensure that a cafeteria/food service presently planned for the Building (the “Cafeteria”) will be operational on or before the Rent Commencement Date. Landlord shall use diligent efforts to require the Cafeteria to use, on an exclusive basis, Keurig/Green Mountain Coffee Roasters products and equipment for brewing coffee. Tenant shall have the right, upon reasonable prior notice to Landlord, and subject to availability (it being understood that such Cafeteria is subject to a “first come, first served” availability for use), to use, at no charge (other than as specified herein), the seating areas of the Cafeteria for meetings provided such meetings take place outside of the Cafeteria’s normal business hours. Tenant’s use of the Cafeteria shall be in compliance with all applicable laws and codes, and otherwise subject to the terms and conditions of this Lease, and Tenant shall, as Additional Rent, be responsible to reimburse Landlord for any out-of-pocket “set up” and clean up costs for such use, as well as any other costs reasonably incurred by Landlord in connection with such use, including but not limited to the costs of any heating, ventilating and air-conditioning (“HVAC”) provided to the Cafeteria during the hours of such use (it being understood Tenant shall not be obligated to reimburse Landlord for costs that would have been ordinarily incurred by Landlord irrespective of Tenant’s use of the Cafeteria—e.g. if Landlord was to have ordinarily supplied HVAC to the Cafeteria during certain hours, and then Tenant uses the Cafeteria during such time, then Landlord shall not charge Tenant for such HVAC). To the extent that the Cafeteria shall cease operations at any time during the term of this Lease, then, for as long as Landlord elects to retain the Cafeteria as a common space, Tenant shall be permitted to continue its use of the same, subject to the terms and conditions hereof.

 

3


Tenant shall be permitted, on an unreserved, first-come-first-served basis, to use up to 3.4 parking spaces per 1,000 rentable square feet of the Premises in the parking area serving the Building (it being agreed that as of the date of this Lease Tenant has a right to 125 parking spaces pursuant to the preceding ratio). Tenant shall be permitted to use such spaces for the parking of passenger vehicles.

Landlord reserves the right from time to time, using commercially reasonable efforts to minimize the nature and duration of any interference with use of the Premises: (a) to install, use, maintain, repair, replace and relocate 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, (b) to alter or relocate any other common facility, (c) to make any repairs and replacements to the Premises which Landlord may deem necessary, and (d) in connection with any excavation made upon adjacent land of Landlord or others, to enter, and to license others to enter, upon the Premises to do such work as the person causing such excavation deems necessary to preserve the wall of the Building from injury or damage and to support the same.

 

2.2 Term. TO HAVE AND TO HOLD for a term beginning on the Commencement Date, which shall be the earlier of (a) the date that is forty five (45) days following the date of this Lease and (b) the date Tenant commences Tenant’s Work (as defined in Section 3.2 ), and ending on the Expiration Date, unless sooner terminated or extended as hereinafter provided. When the Commencement Date has been determined, such date shall be evidenced by a document, in the form attached hereto as Exhibit B, which Landlord shall complete and deliver to Tenant, and which shall be deemed conclusive unless Tenant shall notify Landlord of any disagreement therewith within ten (10) days of receipt.

Upon full execution of the Lease, Tenant may, following notice to Landlord, and prior to the Commencement Date, enter the Premises and without payment of rent, but otherwise subject to all the terms and conditions of this Lease, for the purpose of commencing Tenant’s Work (as hereinafter defined), provided that Tenant shall not interfere with any work then being performed by or for Landlord in the Premises or Building, and provided Tenant shall reimburse Landlord for Landlord’s actual costs in connection with the Tenant’s pre-commencement work performed after normal building hours, including the cost of Tenant’s electrical and HVAC usage for after normal building hours construction, as well as any additional janitorial services and trash removal. All such work shall be done in accordance with, and Tenant shall comply with, the provisions of Section 6.2.5 hereof.

 

2.3 Extension Option. Provided that as of the date of the notice specified below, Tenant is not in default and has not previously been in default of its obligations under this Lease beyond any applicable notice and cure period, Tenant shall have the right to extend the term of this Lease for one (1) additional period of five (5) years, commencing on January 1, 2016 and expiring December 31, 2020 (the “extended term”). All of the terms, covenants and provisions of this Lease shall apply to such extended term except that the Annual Fixed Rent Rate for such extension period shall be the Market Rate (as hereinafter defined) at the commencement of such extended term, as designated by Landlord (subject to the terms of this Section 2.3), the Base Operating Expenses for the extension period shall be the Operating Expenses for the calendar year in which the extension period begins (i.e. calendar year 2016), and the Base Taxes for the extension period shall be the Taxes for the fiscal year in which the extension period begins (i.e. fiscal year 2016). “Market Rate” as used herein shall mean the annual fair market rate during the extended term for leases of space located in the vicinity of the Building that are of comparable size, condition and quality as the Premises. If Tenant shall elect to exercise the aforesaid option, it shall do so by giving Landlord notice in writing of its intention to do so not later than one (1) year prior to the expiration of the original term of this Lease (i.e. no later than December 31, 2014). If Tenant gives such notice, the extension of this Lease shall be automatically effected without the execution of any additional documents. The original term and the extended term are hereinafter collectively called the “term”.

If Tenant exercises the aforesaid option, then not later than eleven (11) months prior to the expiration of the original term of this Lease Landlord shall give written notice to Tenant of Landlord’s designation of the Market Rate. Within fifteen (15) days following Landlord’s notice, Tenant shall either propose its designation of the Market Rate by giving notice thereof to Landlord, or accept Landlord’s designation of the Market Rate. Failure on the part of Tenant to give such notice of its designation of Market Rate shall bind Tenant to Landlord’s designation of the Market Rate. If Tenant proposes its designation of the Market Rate, then Landlord and Tenant may attempt to negotiate regarding the Market Rate. If the parties have been unable to reach agreement within thirty (30) days following Tenant’s designation, then the Market Rate may be submitted to arbitration by either party as follows: The Market Rate shall be determined by impartial arbitrators, one to be chosen by the Landlord, one to be chosen by Tenant, and a third to be selected, if necessary, as below provided. The arbitrators shall be charged to determine the Market Rate by selecting one or the other of Landlord’s or Tenant’s determinations thereof. The arbitrators shall have no authority or jurisdiction to make any other determination of such amount. The unanimous written decision of the two first chosen, without selection and participation of a third arbitrator, or otherwise, the written decision of a majority of three arbitrators chosen and selected as aforesaid, shall be conclusive and binding upon Landlord and Tenant. Landlord and Tenant shall each notify the other of its chosen arbitrator within ten (10) days following the call for arbitration and, unless such two arbitrators shall have reached a unanimous decision within thirty (30) days after their designation, they shall so notify the office of then President of the Boston Bar Association and request him to select an impartial third arbitrator who has not represented either Landlord or Tenant previously, and who shall be a real estate counsellor or a broker dealing with like types of properties to determine the Market Rate as herein defined. Such third arbitrator and the first two chosen shall hear the parties and their evidence and render their decision within thirty (30) days following the conclusion of such hearing and notify Landlord and Tenant thereof. The expense of the third arbitrator (if any) shall be borne by the “loser” of such arbitration (i.e. the party whose designation of Market Rate is not chosen following such arbitration). If the dispute between the parties as to a Market Rate has not been resolved before the commencement of Tenant’s obligation to pay Fixed Rent based upon such Market Rate, then Tenant shall pay Fixed Rent under the Lease based upon the Market Rate designated by Landlord until either the agreement of the parties as to the Market Rate, or the decision of the arbitrators, as the case may be, at which time Tenant shall pay any underpayment of Fixed Rent to Landlord, or Landlord shall refund any overpayment of Fixed Rent to Tenant.

In any event, the Annual Fixed Rent Rate for the extended term shall not be less than $26.00 per rentable square foot.

"Premises and Term" elsewhere:

CUISINE SOLUTIONS (FZN)
Wikinvest © 2006, 2007, 2008, 2009, 2010, 2011, 2012. Use of this site is subject to express Terms of Service, Privacy Policy, and Disclaimer. By continuing past this page, you agree to abide by these terms. Any information provided by Wikinvest, including but not limited to company data, competitors, business analysis, market share, sales revenues and other operating metrics, earnings call analysis, conference call transcripts, industry information, or price targets should not be construed as research, trading tips or recommendations, or investment advice and is provided with no warrants as to its accuracy. Stock market data, including US and International equity symbols, stock quotes, share prices, earnings ratios, and other fundamental data is provided by data partners. Stock market quotes delayed at least 15 minutes for NASDAQ, 20 mins for NYSE and AMEX. Market data by Xignite. See data providers for more details. Company names, products, services and branding cited herein may be trademarks or registered trademarks of their respective owners. The use of trademarks or service marks of another is not a representation that the other is affiliated with, sponsors, is sponsored by, endorses, or is endorsed by Wikinvest.
Powered by MediaWiki