EXHIBIT 10.49
GROUND LEASE AGREEMENT
FOR THE AVNET BUILDING
ASU RESEARCH PARK
LEASE
FUNDAMENTAL LEASE PROVISIONS
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EFFECTIVE DATE: April 5, 1999
LANDLORD: ▇▇▇▇▇-▇▇▇▇▇▇▇ RESEARCH PARK, INC., an
Arizona nonprofit corporation
TENANT: ▇▇▇▇ COMPANIES US, INC., a Minnesota
corporation
DEMISED PREMISES: Lots 32, 31 and Lot 30, containing 9.63
net acres (14.15 gross acres) and
419,594.7 net square feet (616,206.9)
gross square feet). See Exhibits A and
A-1.
LEASE TERM: From the date hereof through September
30, 2083, subject to Tenant's right to
terminate the Term, as provided in
Section 2.
RENT COMMENCEMENT DATE: See Section 3.
ANNUAL RENT: See Section 3.
MUNICIPAL SERVICE FEE: $0.09157 per square foot of Floor Area
constructed on the Demised Premises per
year, payable in twelve equal monthly
installments, subject to adjustments as
provided in Section 6(d).
COMMON AREA EXPENSES: Allocable Share payable monthly
beginning on the Rent Commencement Date.
INFRASTRUCTURE
ASSESSMENT: $314,696.00 based upon $.75 per net
square foot of land area, payable on the
Effective Date. See Section 9.
SECURITY DEPOSIT: None Required.
PERMITTED USES: The Demised Premises may be used as
corporate, national or regional
headquarters of a division, subsidiary
or affiliate of Avnet, Inc. and any
other use permitted under the
Restrictions attached hereto as Exhibit
G. Unlimited manufacturing is prohibited
(A.R.S. (S) 15-1636).
RESTRICTIONS: Attached hereto as Exhibit G.
ADDRESS OF LANDLORD: ▇▇▇▇ ▇▇▇▇▇ ▇▇▇▇▇▇▇ ▇▇▇▇▇
▇▇▇▇▇, ▇▇▇▇▇▇▇ ▇▇▇▇▇
ADDRESS OF TENANT: ▇▇▇▇ ▇. ▇▇▇▇▇▇▇▇▇ ▇▇▇▇
▇▇▇▇▇ ▇▇▇
▇▇▇▇▇▇▇, ▇▇▇▇▇▇▇ ▇▇▇▇▇
Attn: ▇▇▇▇ ▇. ▇▇▇▇▇▇▇▇▇▇▇▇
The foregoing Fundamental Lease Provisions are an integral part of this Lease,
and each reference in the body of the Lease to any Fundamental Lease Provisions
shall be construed to incorporate all of the terms set forth above with respect
to such Provisions.
TABLE OF CONTENTS
Section Page
1. DEMISED PREMISES....................................................... 1
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2. TERM................................................................... 2
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3. RENT................................................................... 3
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4. ADDITIONAL CHARGES..................................................... 5
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5. NO COUNTERCLAIM OR ABATEMENT OF ADDITIONAL CHARGES..................... 5
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6. RENTAL TAXES, UTILITIES, REAL ESTATE TAXES AND MUNICIPAL SERVICE FEE... 5
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7. USE OF DEMISED PREMISES................................................ 10
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8. CONSTRUCTION BY TENANT................................................. 10
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9. INFRASTRUCTURE ASSESSMENT.............................................. 11
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10. MAINTENANCE AND REPAIRS................................................ 11
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11. REGULATORY REQUIREMENTS................................................ 11
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12. INDEMNIFICATION........................................................ 13
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13. INSURANCE.............................................................. 14
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14. LIENS.................................................................. 15
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15. DAMAGE OR DESTRUCTION.................................................. 15
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16. EMINENT DOMAIN......................................................... 15
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17. DEFAULTS AND REMEDIES.................................................. 16
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18. ASSIGNMENT AND SUBLETTING.............................................. 19
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19. HYPOTHECATION OF LEASEHOLD ESTATE...................................... 19
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20. SUBORDINATION.......................................................... 21
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21. ESTOPPEL CERTIFICATE................................................... 22
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22. GOVERNING LAW.......................................................... 23
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23. STATUS OF TENANT....................................................... 23
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24. SUCCESSORS AND ASSIGNS................................................. 23
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25. ATTORNEYS' FEES........................................................ 23
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26. PERFORMANCE BY TENANT.................................................. 23
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27. MORTGAGE PROTECTION.................................................... 24
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28. WAIVER................................................................. 24
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29. EXAMINATION OF LEASE................................................... 24
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30. TIME................................................................... 24
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31. PRIOR AGREEMENTS, AMENDMENTS........................................... 24
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32. SEVERABILITY........................................................... 25
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33. RECORDING.............................................................. 25
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34. LIMITATION ON LIABILITY................................................ 25
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35. NONSUBORDINATED SUBLEASE............................................... 25
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36. CONSENT OF LANDLORD AND TENANT......................................... 25
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37. RECAPTURE BY LANDLORD.................................................. 25
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38. TITLE OF IMPROVEMENTS.................................................. 26
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39. SURRENDER.............................................................. 26
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40. RESTRICTIONS - AMENDMENTS.............................................. 26
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41. QUIET POSSESSION....................................................... 27
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42. WATER RESOURCES........................................................ 27
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43. NOTICES................................................................ 27
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44. BROKERS......................................................... 28
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45. NET LEASE....................................................... 28
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46. TENANT'S TITLE INSURANCE........................................ 28
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47. HEIGHT RESTRICTIONS............................................. 28
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48. COMMON DRIVEWAY EASEMENT........................................ 28
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EXHIBITS:
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Exhibit A Legal Description of the Demised Premises
Exhibit A-1 Site Plan of the Demised Premises
Exhibit B Site Plan of the Research Park
Exhibit C Preliminary Plan Package
Exhibit D Lease Amendment
Exhibit E Recognition, Non-Disturbance and Attornment Agreement
Exhibit F Memorandum of Lease
Exhibit G Restrictions
Exhibit H Common Driveway Easement
ASU RESEARCH PARK
LEASE
1. DEMISED PREMISES
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(a) Subject to the covenants and conditions herein contained,
Landlord hereby leases to Tenant, and Tenant leases from Landlord (this
"Lease"), the land situated in the City of Tempe, Maricopa County, Arizona,
legally described on Exhibit A attached hereto and graphically depicted on
Exhibit A-1 attached hereto (the "Land"). Said Land is hereinafter referred to
as the "Demised Premises". The Demised Premises is a part of an integrated
research park development located within the City of Tempe, Arizona ("Research
Park") which is graphically depicted on the Site Plan attached hereto as Exhibit
B. It is acknowledged that Landlord has an interest in the Research Park as a
ground lessee under that certain Ground Lease dated October 8, 1984, and all
amendments thereto ("Ground Lease"), wherein the Arizona Board of Regents,
acting for and on behalf of Arizona State University, appears as Lessor ("Ground
Lessor"). This Lease is a sublease under the Ground Lease.
(b) The legal description and the net square footage for the
Demised Premises as set forth in Exhibit A-1 and the Fundamental Lease
Provisions, respectively, are predicted upon the eventual abandonment of a
portion of that certain Research Park roadway known as "Science Drive" by the
City of Tempe and other regulatory bodies having jurisdiction over the proposed
abandonment. The portion of Science Drive for which abandonment will be sought
is delineated on Exhibit A-1.
(c) Upon execution of this Lease, Tenant shall process the
Science Drive abandonment on behalf of Ground Lessor and Landlord at Tenant's
sole expense. Landlord agrees to cooperate with Tenant in processing such
abandonment. In the event the abandonment is not completed prior to the Rent
Commencement Date, Tenant shall so notify Landlord. Landlord shall then have the
right, but not the obligation, to join with Tenant to obtain completion of such
abandonment. If, within sixty (60) days after Tenant's notice to Landlord, the
abandonment has not been completed, Tenant may terminate this Lease upon written
notice to Landlord and shall be entitled to receive a refund of all monies paid
Landlord under this Lease prior to such termination. Notwithstanding the
foregoing, Tenant shall not have the right to terminate this Lease and receive
such a refund if the failure of the abandonment or failing to pay such fees or
submit such plans, drawings and documentation as the City of Tempe may require.
(d) In connection with the Science Drive abandonment, Landlord
and Tenant covenant as follows:
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(i) Tenant shall not demolish or alter any of the
improvements in or about Science Drive until Tenant shall have obtained at
its expense all governmental permits and approvals necessary to process the
proposed abandonment with the City of Tempe and any other regulatory bodies
having jurisdiction over the proposed abandonment.
(ii) Tenant, at its sole expense, shall relocate those
utilities or other improvements now located within or about Science Drive
which the City of Tempe and/or Landlord require to be relocated.
(iii) Prior to completion of Tenant's Improvements,
Tenant shall, at its sole expense, relocate all dedicated public easements
which the City of Tempe may require to be relocated as a condition to such
abandonment.
(iv) In the event Tenant damages or destroys any
landscaping or other improvements located within the Common Area of the
Research Park or within or about any dedicated public right-of-way, then
Tenant shall repair, replace and restore all such landscaping and other
Improvements to their condition existing prior to commencement of Tenant's
construction. Tenant shall take all necessary action to prohibit the use of
such public access ways during the period of Tenant's construction.
(v) Tenant shall cause the construction of any
replacement roadway, cul-de-sac, curb cuts, alternative access, sidewalks,
bicycle paths and any other Improvements which may be required by the City
of Tempe as a condition to the abandonment.
2. TERM
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(a) The term of this Lease ("Term") shall commence as of the date
hereof (the "Effective Date") and shall expire on September 30, 2083 unless the
Term shall be sooner terminated as hereinafter provided.
(b) The term "year" as used in this Lease shall mean each period of
twelve (12) consecutive months commencing on each January 1 and ending at
midnight on the next succeeding December 31, except that any partial year at the
beginning of the Term shall constitute the first year of the Lease, in which
event the first year of the Term will be shorter than twelve months.
(c) Tenant shall have the right to terminate this Lease prior to
expiration of the 30th year. In order to exercise the termination right, Tenant
must provide Landlord with written notice of Tenant's termination election not
more than 360 nor less than 180 days prior to the expiration of the 30th year;
provided, however, if Landlord exercises the appraisal right under Section 3(b)
below, Tenant may give its notice of termination at any time
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within thirty (30) days after determination of Annual Rent for years 31-40. In
the event Tenant exercises such termination right, Landlord may elect to (i)
require that the Land be restored, at Tenant's sole cost and expense, to its
original condition as of the date of termination or (ii) accept surrender of the
Land with all then existing Improvements thereon. The right of termination
referred to herein may not be exercised by Tenant at any time in which the
Tenant is in default under this Lease.
3. RENT
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(a) Upon the Rent Commencement Date (as defined below), Tenant agrees
to pay Annual Rent to Landlord without demand, in twelve (12) equal monthly
installments in advance on the first day of each month, as follows:
Lease Years Per Net Sq. Foot Annual Monthly
----------- ---------------- ------ -------
1-10 $0.55 $230,777 $19,231
11-20 $0.72 $302,108 $25,176
21-30 $0.93 $390,223 $32,519
31-85 See (b) below
(b) During the 30th year and again during the 60th year, Landlord
shall have the option, in each such case, to cause the fair market value of the
Land (as an improved parcel of land but subject to the Restrictions) to be
determined by appraisal as set forth below. In each such case, the Annual Rent
applicable to the Demised Premises for the ensuing ten-year period shall be
equal to 10% of the fair market value of the Land. Annual Rent so determined
shall be in effect for the years 31-40. Annual Rent shall then be adjusted every
ten years so that Annual Rent for the years 41-50 and 51-60 shall reflect
cumulative non-compounded increases of three percent (3%) per year over the
Annual Rent in effect for the previous ten-year period. Likewise, Annual Rent
shall be established by appraisal as set forth herein during the 60th year for
the years 61-70. Annual Rent shall then be adjusted after ten years so that
Annual Rent for the years 71-80 and 81 through the remainder of the Term shall
reflect non-compounded cumulative increases of three percent (3%) per year over
the Annual Rent in effect for the previous ten-year period.
In order to invoke the appraisal procedure, Landlord shall provide to
Tenant at least 270 days but not more than 360 days prior to expiration of the
30th year (or 60th year as the case may be) an appraisal of the Land. Tenant
shall have 30 days after receipt of Landlord's appraisal either to accept
Landlord's appraisal or submit to Landlord an appraisal of the Land establishing
a different fair market value. Failure to provide Landlord with an appraisal
before expiration of the 30-day period shall be deemed Tenant's acceptance of
Landlord's appraisal. If Tenant submits its own appraisal, Landlord shall have
30 days within which to notify Tenant that it accepts or rejects Tenant's
appraisal. Failure to provide such notice within the 30-day period shall
constitute acceptance by Landlord of Tenant's appraisal.
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If Landlord rejects Tenant's appraisal, then the appraisers previously
selected by Landlord and Tenant shall select a third appraiser, except that if
the valuations of the two appraisals are less then 10% apart, the valuations
shall be averaged and the resulting amount shall be the fair market value. If
the appraisers are unable to agree on a third appraiser within ten (10) days,
either party, by giving ten (10) days notice to the other party may apply to the
American Arbitration Association for the purpose of selecting a third appraiser.
Within thirty (30) days after the selection of the third appraiser,
the third appraiser shall submit to Landlord and Tenant an appraisal of the
Land. A valuation agreed upon by two of the three appraisers shall be binding
upon Landlord and Tenant. If none of the appraisers agree, the values
determined by the two appraisers whose valuations are closer (in absolute dollar
terms, not percentage terms) shall be averaged and the resulting amount shall be
the fair market value. If one valuation is equally close (in absolute dollar
terms, not percentage terms) to the other two, the middle valuation shall be the
fair market value.
Landlord and Tenant each shall bear the cost of its own appraiser and
shall bear one-half of the cost of the third appraiser. All appraisers shall be
members of the American Institute of Real Estate Appraisers (M.A.I.) or, if such
Institute shall not then exist, members of its successor or a substantially
equivalent organization, and shall have at least five (5) years experience
appraising commercial real estate.
(c) All sums to be paid by Tenant to Landlord pursuant to this Lease
shall be paid in lawful money of the United States to Landlord at its address,
or at such other place as Landlord may from time to time designate in writing.
(d) The "Rent Commencement Date" shall e the earlier to occur of (i)
one hundred eighty (180) days following the Effective Date of this Lease as set
forth in the Fundamental Lease Provisions or (ii) the date Tenant obtains a
certificate of occupancy from the City of Tempe for the Improvements.
(e) All payments of Annual Rent and "Additional Charges" (as defined
in Section 4) shall be considered delinquent if not received by Landlord on or
before the 10th day after the date any such payment originally became due.
Tenant shall pay to Landlord a late charge equal to five percent (5%) of any
amount of delinquent Annual Rent or Additional Charges. In addition, interest
shall accrue on any amount of delinquent Annual Rent or Additional Charges at an
annual rate equal to two (2) percentage points (2%) in excess of the annual
interest rate published from time to time in the Wall Street Journal under the
masthead "Money Rates" as the Prime Rate in effect as of the payment due date
(or, if such Prime Rate ceases to be published, a reasonably equivalent index
selected by Landlord) such interest to be adjusted quarterly and to accrue from
the date such amount was originally due until the date such amount is actually
paid.
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4. ADDITIONAL CHARGES
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All taxes, assessment, insurance premiums, charges, costs and expenses
which Tenant assumes or agrees to pay hereunder, together with all interest and
penalties that may accrue thereon in the event of Tenant's failure to pay the
same as herein provided, and all other damages, costs and expenses which
Landlord may suffer or incur, and any and all other sums which may become due,
by reason of any default of Tenant or failure on Tenant's part to comply with
the agreements, terms, covenants and conditions of this Lease on Tenant's part
to be performed shall be referred to herein as "Additional Charges," and, in the
event of their nonpayment, Landlord shall have with respect thereto all rights
and remedies herein provided the same as though Tenant failed to pay Annual
Rent.
5. NO COUNTERCLAIM OR ABATEMENT OF ADDITIONAL CHARGES
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Unless expressly provided otherwise in this Lease, the Annual Rent, and all
Additional Charges payable by Tenant hereunder shall be paid without notice
demand, counterclaim, setoff, recoupment, deduction or defense of any kind or
nature and without abatement, suspension, deferment, diminution or reduction,
and, except to the extent expressly provided otherwise in this Lease, the
obligations and liabilities of Tenant hereunder shall in no way be released,
discharged or otherwise affected by reason of (i) any damage to or destruction
of any Improvements on the Demised Premises; (ii) any taking of the Demised
Premises or any part thereof; or (iii) any restriction or prevention of or
interference with any use of the Demised Premises or any part thereof not the
result of a breach of this Lease by Landlord.
6. RENTAL TAXES, UTILITIES, REAL ESTATE TAXES AND MUNICIPAL SERVICE FEE
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(a) Any exercise, transaction privilege or rental occupancy tax now
or hereafter actually imposed by any government or governmental agency upon
Landlord on account of, attributed to, or measured by rent or other charges
payable by Tenant to Landlord shall be paid by Tenant to Landlord in addition to
and along with the Annual Rent and Additional Charges payable hereunder.
(b) Tenant shall not be required to pay, or reimburse Landlord for
(i) any local, state or federal capital levy, franchise tax, revenue tax, income
tax, or profits tax of Landlord unless and to the extent such levy, tax or
impost is in lieu of or a substitute for any other levy, tax or impost now or
later in existence upon or with respect to the Demised Premises which, if such
other levy, tax or impost were in effect, would be payable by Tenant under the
provisions hereof, or (ii) any estate, inheritance, devolution, succession or
transfer tax which may be imposed upon or with respect to any transfer (other
than taxes in connection with a conveyance by Landlord to Tenant) of Landlord's
interest in the Demised Premises.
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(c) During the Term, Tenant shall pay prior to delinquency all taxes
assessed against and levied upon fixtures, furnishing, equipment and all other
personal property of Tenant situated on or within the Demised Premises, and when
possible Tenant shall cause said fixtures, furnishings, equipment and other
personal property to be assessed and billed separately from the real property
demised to Tenant. Tenant shall pay and discharge punctually, as and when the
same shall become due and payable without penalty, all business, occupation and
occupational license taxes.
(d) The City of Tempe requires that Tenant be assessed and pay a
municipal service fee (the "Municipal Service Fee") as hereinafter provided to
reimburse the City for the cost of providing municipal services to the Research
Park. The annual amount of the Municipal Service Fee payable by Tenant shall be
calculated by multiplying the Aggregate number of square feet of Floor Area
constructed, or to be constructed, on the Demised Premises from time to time by
the "Multiplier" (determined as set forth below) in effect from time to time.
With regard to new construction of Floor Area, assessment of the Municipal
Service fee shall commence at the beginning of the calendar quarter following
issuance of Building Permit. For the fiscal year beginning July 1, 1998, the
Multiplier shall be the amount of $0.09157. Thereafter, the Multiplier shall be
adjusted annually as of each July 1 ("Adjustment Date") to reflect the
percentage of change in the Metropolitan Phoenix Consumer Price Index as
published by Arizona State University, College of Business, Center for Business
Research ("Index"), for the calendar year ended December 31 immediately
preceding said Adjustment Date as compared to the Index for the calendar year
ended December 31 on year earlier. Annual percentage changes shall be applied to
the Multiplier in effect for the previous year. The Multiplier thus adjusted
shall be rounded to the nearest tenth of a cent. So long as the City of Tempe
requires the assessment of the Municipal Service Fee, Tenant shall pay to
Landlord on a monthly basis, on or before the first day of each month during the
Term, a sum equal to one-twelfth (1/12th of the then annual Municipal Service
Fee due and payable to the City of Tempe calculated as set forth above for the
Floor Area constructed, or to be constructed, on the Demised Premises. The term
"Floor Area" as used in this Lease shall have the same meaning as provided in
the City of Tempe Building code in effect from time to time. The aggregate
number of square feet of Floor Area constructed, or to be constructed, on the
Demised Premises shall be the aggregate amount of Floor Area as set forth on
building permits issued by the City of Tempe to Tenant.
(e) Landlord represents and warrants to Tenant that, to the extent of
Landlord's actual knowledge, the fee estate of Ground Lessor is presently exempt
from ad valorem taxes, and the leasehold interest of Landlord as lessee under
the Ground Lease is not currently being taxed. In the event of a change in the
law such that said ad valorem tax exempt status of Ground Lessor is no longer
recognized by taxing authorities, or in the event of a change in the law such
that Landlord's possessory interest shall be taxed, then Tenant shall fully pay
and punctually discharge its proportionate share of all Impositions as and when
they become due and payable, as provided in Section 6(g) below. "Impositions"
shall include but are not limited to any and all ad valorem taxes, assessments
(excluding special improvement district assessments) and other governmental
taxes, impositions and charges of every kind and nature measured or
6
calculated based on the value of the property involved, extraordinary or
ordinary, general or special, unforeseen or foreseen, which at any time during
the Term shall become due and payable by either Ground Lessor or Landlord.
(f) In the event any obligation to pay Impositions accrues under
Section 6(e) above and if the Demised Premises constitute a separate tax parcel
for purposes of assessing and levying such Impositions, Tenant shall have the
right to contest the amount or validity of any Impositions by appropriate legal
proceedings, diligently pursued, in the name of Landlord if required by any law,
rule or regulation, provided that (i) Tenant shall first make all contested
payments, under protest if it desires, but if payment under protest is not
permitted by the taxing authority, such contested payment need not be made, (ii)
neither the Demised Premises, any part thereof, nor any interest therein shall
be in any danger of being sold, forfeited, lost or interfered with, (iii) Tenant
shall have furnished such security, if any, as may be required in the
proceedings or reasonably requested by Landlord, and (iv) all expenses incurred
in connection with such proceedings shall be paid by Tenant.
(g) In the event any obligation to pay Impositions accrues under
Section 6(e) above and if the Demised Premises are not separately assessed, but
are part of a larger tract or parcel for assessment purposes, then Tenant shall
pay to Landlord Tenant's proportionate share of such Impositions determined as
follows:
(i) With respect to any ad valorem taxes on the land
area of the larger land parcel including the Demised Premises, but not with
respect to special or extraordinary assessments, Tenant shall pay that
portion of such taxes which the total number of square feet of land area
within the Demised Premises bears to the number of square feet of land area
within such larger land parcel.
(ii) With respect to any special or extraordinary
assessments on the larger land parcel including the Demised Premises,
Tenant shall pay only that portion of such assessments which would have
been levied upon the Demised Premises had the Demised Premises been
separately assessed based upon the methods of assessments utilized for such
assessments.
Tenant shall pay such sums to Landlord within thirty (30) days of the receipt of
a written statement from Landlord indicating the amount of such Impositions as
so determined and showing in reasonable detail the manner in which such
Impositions were determined. Landlord, upon Tenant's request, shall furnish
Tenant, within twenty (20) days thereafter, proof of Landlord's payment of said
Impositions. However, in no event shall Tenant be required to make such
payments more than fifteen (15) days in advance of the date such payments would
be delinquent if they were to be made directly to the taxing authorities. The
right to contest Impositions attributable to the Demised Premises, if not a
separate tax parcel, shall initially
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belong to Landlord but may be exercised by Tenant at its own expense if Landlord
fails to contest any Imposition after written request from Tenant to do so.
(h) Landlord represents and warrants to Tenant that; (i) this Lease
is issued on lands owned by the Arizona Board of Regents; and (ii) the Demised
Premises is part of a "Research Park" as such term is now defined in A.R.S. (S)
35-701. In the event any existing or future property classification or
assessment ratio which treats the Demised Premises and the Improvements to be
constructed thereon more favorably for property tax purposes than they otherwise
might be treated is lost or is no longer applicable due to the occurrence of an
event or condition within the reasonable le control of Landlord or Ground
Lessor, then the Landlord shall be responsible for that portion of the
Impositions (as defined in Section 6(e)) thereafter measured by the value of the
Land, and Tenant shall be responsible for that portion of the Impositions
measured by the value of the Improvements. The parties agree that a change in
the law regarding the taxation of interests in land or improvements located
within the Research Park shall not be deemed to be an event or condition within
the reasonable control of Landlord or Ground Lessor except as otherwise provided
in the preceding paragraph.
(i) All entrance and exit areas, open space, landscaped space,
easements, lighting, street furniture, water bodies, jogging paths, pedestrian
walkways, bicycling paths, equestrian trails, parking areas, and other similar
facilities furnished by Landlord in the Research Park (herein "Common Area") are
dedicated publish easements for said purposes and shall at all times be subject
to the joint control and management of Landlord and the City of Tempe, and
Landlord shall have the right from time to time to establish, modify and enforce
reasonable non-discriminatory rules and regulations with respect to the same as
long as they do not materially interfere with Tenant's normal conduct of its
business on the Demised Premises. Landlord shall have the right to construct,
maintain and operate lighting facilities on all said Common Area; to police the
same, from time to time to change the area, grade, location and agents,
customers and employees; to close temporarily all or any portion thereof; and to
do and perform such other acts in and to said area as in Landlord's judgment is
reasonably advisable as Landlord is contractually bound to the City of Tempe to
operate and maintain the Common Area and will do so in such a manner as the
common areas in similar first-class business and industrial parks located in the
southwestern United States are operated and maintained.
(j) Subject to the standards as provided in Section 6(i) above, the
term "Common Area Expenses" as used herein shall mean all sums expended by
Landlord and Ground Lessor in connection with the operation, maintenance, repair
or replacement of the Common Area, including premiums paid for adequate public
liability and property damage insurance (which insurance Landlord is hereby
required to maintain throughout the Term); provided, however, that Common Area
Expenses shall not include Landlord's overhead, administrative and general
office expenses except as may be incurred relative to persons directly employed
to perform Common Area operation, maintenance, repair or replacement services,
8
expense for any work which Landlord performs for any other tenant of the
Research Park, expenses for repairs or other work to correct original
construction defects or occasioned by condemnation or by fire, windstorm, or
other insurable casualty, expenses incurred in leasing or procuring new tenants
for the Research Park, legal expenses incurred in enforcing the terms of any
lease pertaining to the Research Park, interest or amortization payments on any
mortgage or deed of trust pertaining to the Research Park, gross or net income
taxes imposed on Landlord or on any rental revenue received by Landlord,
expenses directly payable by any tenant of the Research Park, any costs, fines
and the like due to Landlord's violation of any governmental rule or regulation;
or the cost of any items for which Landlord is reimbursed by third parties, but
only to the extent of such reimbursement. Any Common Area Expenses that are
required to be capitalized, in accordance with generally accepted accounting
principles, shall be amortized and charged in accordance with generally accepted
accounting practices. Only the annual amortized amounts of any such expenses
shall be included in Common Area Expenses. The cost of any capital improvements
not in repair or replacement of existing improvements shall not be included in
Common Area Expenses. Landlord may cause any or all of said operation and
management responsibilities to be performed by an independent contractor or
contractors. Tenant shall pay to Landlord Tenant's pro rata share of such Common
Area Expenses in the following manner:
(1) Commencing on the Rent Commencement Date, and
thereafter on the first day of each calendar month of the Term, Tenant
shall pay to Landlord an amount estimated by Landlord to be Tenant's share
of Common Area Expenses. Landlord may adjust the monthly Common Area charge
of Tenant at the end of any calendar quarter on the basis of Landlord's
experience and reasonably anticipated costs.
(2) Prior to the expiration of each year, Landlord shall
deliver to Tenant a statement covering the fiscal year of Landlord just
expired, certified as correct by an authorized but independent
representative of Landlord, showing the Common Area Expenses for such
fiscal year, the amount of Tenant's pro rata share of such expenses for
such fiscal year and the payments made by Tenant with respect to such
fiscal year as set forth in subparagraph (1) immediately above. If Tenant's
pro rata share of such Common Area Expenses exceeds Tenant's payments so
made, Tenant shall pay Landlord the deficiency within thirty (30) days
after receipt of such statement. If said payments exceed Tenant's pro rata
share of such Common Area Expenses, Landlord shall refund the excess to
Tenant within thirty (30) days following delivery of the aforesaid
statement. If Landlord fails to furnish Tenant the required statement as
provided herein, Landlord shall be deemed to have waived any right to
payment from Tenant for any Common Area Expenses for the preceding fiscal
year in excess of that previously paid by Tenant for such fiscal year.
(3) Tenant's pro rata share of the Common Area Expenses
shall be that portion of all such expenses which the number of square fee
of land area within the Demised Premises bears to the total number of
square feet of leaseable land area within the Research Park (presently
9,010,380 square feet) which is from time to
9
time under lease; provided, however, the latter number shall never be less
than 90% (presently 8,109,342 square fee) of the total number of square
feet of leaseable land area within the Research Park. There shall be an
appropriate adjustment of Tenant's share of the Common Area Expenses as of
the expiration of the Term of this Lease.
(k) Landlord shall save, hold harmless and indemnify Tenant from and
against all liabilities, obligations, claims, suits, damages, penalties, causes
of action, costs and expenses (including without limitation, reasonable
attorneys' fees and expenses) imposed or asserted against Tenant by reason of
any accident, injury to or death of persons, or loss or damage to property
occurring on the Common Areas to the extent the same is a result of the
negligence of Landlord or its agents, servants, contractors or employees.
(l) Tenant shall pay and discharge punctually all charges for utility
services used by it.
7. USE OF DEMISED PREMISES
-----------------------
Landlord hereby consents to and Tenant may use the Demised Premises for
those uses described in the Fundamental Lease Provisions ("Permitted Uses").
Tenant represents, warrants and covenants to Landlord that the Demised Premises
shall be used only for Permitted Uses. By executing this Lease, Landlord
acknowledges that Tenant has satisfied all qualifications for tenancy at the
Research Park.
8. CONSTRUCTION BY TENANT
----------------------
(a) All buildings and other improvements constructed by or on behalf
of Tenant upon the Demised Premises are referred to in this Lease as the
"Improvements." Tenant has informed Landlord that it intends to develop the
Demised Premises as the first phase of a two-phase development contemplated by
Tenant which may include additional land within the Research Park. Construction
on the first phase of Tenant's development, which is subject to Tenant's
compliance with the Restrictions, shall commence within one (1) year from final
plan approval as set forth in said Restrictions. Submittals toward plan approval
shall promptly commence. Tenant has informed Landlord that it intends to
construct approximately __________________ (________) square feet of Floor Area
in connection with the first phase of construction on the Demised Premises.
(b) Plan submittals as well as construction in connection with any
Improvements, once commenced, and all required reviews by Landlord, shall be
diligently pursued to substantial completion. Attached hereto as Exhibit C is a
listing of documents constituting Tenant's "Preliminary Plan Package", for its
first phase of construction. All further plan or driveway submittals required by
the Restrictions will be approved by Landlord for the first phase of
construction so long as they are substantially consistent with the Preliminary
Plan Package. Tenant, at its expense and subject to compliance with the
Restrictions and all
10
applicable building regulations, may from time to time remodel or demolish any
Improvements, or construct other Improvements on the Demised Premises and
remodel or demolish such other Improvements. All construction plans for the
second phase of Tenant's construction will require separate plan submittal and
approval as required by the Restrictions. Tenant acknowledges and agrees that
construction plans for the second phase of Tenant's construction will not be
granted unless Tenant has acquired a leasehold interest in that portion of the
Research Park identified as Parcel IA on Exhibit A-1 and has executed an
amendment to this Lease in the form of Exhibit D attached hereto.
(c) Tenant has informed Landlord that development of the Demised
Premises will require partial abandonment of Science Drive and relocation of a
portion of the existing infrastructure. Landlord has approved the partial
abandonment of Science Drive subject to final site plan approval and Tenant's
compliance with the City of Tempe requirements. Tenant shall be solely
responsible for all costs arising out of the partial abandonment of Science
Drive and infrastructure relocation, including without limitation, utility
relocation, City of Tempe fees, utility participation charges, permits and
development fees.
9. INFRASTRUCTURE ASSESSMENT
-------------------------
Tenant shall pay to Landlord upon the Effective Date an infrastructure
assessment equal to $0.75 per net square foot of Land comprising the Demised
Premises as Tenant's share of Landlord's cost of constructing and installing on
and off-site infrastructure facilities which serve or will serve the Demised
Premises in common with other premises.
10. MAINTENANCE AND REPAIRS
-----------------------
Tenant shall at all times during the Term keep and maintain in good order
and repair the Land as well as the exterior of all Improvements, howsoever the
necessity or desirability of maintenance or repairs may occur. Tenant waives any
right created by any law now or hereafter in force to maintain or make repairs
to any portion of the Demised Premises at Landlord's expense, it being
understood that neither Ground Lessor nor Landlord shall in any event be
required to maintain or make any alterations, rebuildings, restorations,
replacements, changes, additions, improvements or repairs to the Demised
Premises. Nothing in the Lease shall be construed to require the Tenant to
maintain the interior of the Improvements beyond the extent necessary to comply
with applicable laws.
11. REGULATORY REQUIREMENTS
-----------------------
(a) Tenant shall promptly observe and comply with all present and
future laws, ordinances, requirements, orders, directions, rules and regulations
of all governmental authorities having or claiming jurisdiction over the Demised
Premises or any part thereof and of all insurance companies writing policies
covering the Demised Premises or any part thereof. Without limiting the
generality of the foregoing, Tenant shall also procure each and
11
every permit, license, certificate or other authorization required in connection
with the lawful and proper use of the Demised Premises or required in connection
with any building or improvement now or hereafter erected thereon.
(b) Tenant covenants and agrees to pay all costs and expenses
associated with enforcement, removal, remedial or other governmental or
regulatory actions, agreements or orders threatened, instituted or completed
pursuant to any Hazardous Materials Laws, and all audits, tests, investigations,
cleanup, reports and other such items incurred in connection with any efforts to
complete, satisfy or resolve any matters, issues or concerns, whether
governmental or otherwise, arising out of or in any way related to the use,
generation, release, management, treatment, manufacture, storage or disposal of,
on, under or about, or transport to or from (any of the foregoing hereinafter a
"Use") the Demised Premises of any Hazardous Materials in any amount by Tenant,
its employees, agents, invitees, subtenants, licensees, assignees or
contractors. For purposes of this Lease (1) the term "Hazardous Materials" shall
include but not limited to asbestos, urea formaldehyde, polychlorinated
biphenyls, oil, petroleum products, pesticides, radioactive materials, hazardous
wastes, toxic substances and any other related or dangerous, toxic or hazardous
chemical, material or substance defined as hazardous or regulated or as a
pollutant or contaminant in, or the Use of or exposure to which is prohibited,
limited, governed or regulated by, any Hazardous Materials Laws; and (2) the
term "Hazardous Materials Laws" shall mean any federal, state, county,
municipal, local or other statute, law, ordinance or regulation now or hereafter
enacted which may relate to or deal with the protection of human health or the
environment, including but not limited to the Comprehensive Environment
Response, Compensation and Liability Act of 1980, 42 U.S. C. Section 9601, et
--
seq.; the Hazardous Materials Transportation Act, 49 U.S.C. Section 1801, et
--
seq.; the Resource Conservation and Recovery Act, 42 U.S.C. Section 6901, et
--
seq.; the Federal Water Pollution Control Act, 33 U.S.C. Section 1251, et seq.;
--
the Toxic Substances Control Act of 1976, 15 U.S.C. Section 2601, et seq.; Ariz.
--
Rev. Stat. ▇▇▇., Title 49 (the "Arizona Environmental Quality Act of 1986"); and
any rules, regulations or guidelines adopted or promulgated pursuant to any of
the foregoing as they may be amended or replaced from time to time.
(c) Upon reasonable advance notice to Tenant, Landlord shall have the
right, from time to time during Tenant's regular business hours, to enter upon
and, as accompanied by a representative of Tenant, inspect the Demised Premises
for purposes of satisfying itself as to whether Tenant is in compliance with the
requirements of Section 11(a) above.
(d) Tenant acknowledges that Landlord has provided to Tenant an
environmental assessment report on the Research Park (excluding ▇▇▇▇ ▇, ▇, ▇, ▇,
▇▇, ▇▇, ▇▇, 19, 32, 39, 42 and 44) prepared by ▇▇▇▇▇ & ▇▇▇▇, Inc., dated October
13, 1993 ("Report"). Except as otherwise disclosed in said Report, Landlord, to
the extent of its current actual knowledge, knows of no Hazardous Materials
contamination of the Research Park or the Demised Premises.
12
(e) Landlord covenants and agrees to pay all costs and expenses
associated with enforcement, removal, remedial or other governmental or
regulatory actions, agreements or orders threatened, instituted or completed
pursuant to any Hazardous Materials Laws, and all audits, tests, investigations,
cleanup, reports and other such items incurred in connection with any efforts to
complete, satisfy or resolve any matters, issues or concerns, whether
governmental or otherwise, arising out of or in any way related to the Use of
Hazardous Materials in any amount by Landlord, its employees, agents, invitees,
predecessors in interest, licensees, assignees or contractors.
(f) Landlord covenants and agrees diligently to enforce against other
tenants of the Research Park those provisions of applicable tenant leases which
pertain to Hazardous Materials and Hazardous Materials Laws.
12. INDEMNIFICATION
---------------
(a) Except to the extent caused by the gross negligence of Ground
Lessor or Landlord, or their agents, contractors, servants or employees, Tenant
shall save, hold harmless and indemnify Ground Lessor, Landlord and their
agents, employees and contractors performing management functions for the
Research Park from and against all liabilities, obligations, claims, causes of
action, suits, damages, penalties, assessments, taxes, fees, costs and expenses
(including without limitation, reasonable attorneys' fees and expenses) imposed
upon or asserted against Ground Lessor or Landlord by reason of (i) any use,
nonuse or condition of the Demised Premises or any part thereof, (ii) any
accident, injury to or death of persons (including workmen) or loss of or damage
to property occurring on the Demised Premises or any part thereof, (iii) any
failure on the part of Tenant to perform or comply with any of the terms of this
Lease, (iv) performance of any labor or services or the furnishing of any
materials or other property in respect of the Demised Premises or any part
thereof by, on behalf of or at the request of Tenant, (v) any accident, injury
to or death of persons (including workmen) or loss of or damage to property
arising from or in any way related to construction of the Improvements, (vi) any
failure on the part of Tenant to comply with any of the matters set forth in
Section 7 and Section 11; or (vii) any violation or breach by Tenant of the
Restrictions or the Declaration of Height Limitations referred to in Section 48
below.
(b) Landlord shall save, hold harmless and indemnify Tenant and its
agents, employees and contractors from and against all liabilities, obligations,
claims, suits, damages, penalties, costs and expenses (including without
limitation, reasonable attorneys' fees and expenses) imposed upon or asserted
against Tenant by reason of (I-i) the gross negligence of Landlord or its
agents, contractors, servants or employees, or (ii) any failure on the part of
Landlord to perform or comply with any of the terms of this Lease including any
failure on the part of the Landlord to comply with any of the matters set forth
in Section 11.
(c) In the event any indemnified party should be made a defendant in
any action, suit or preceding brought by reason of any act or omission of the
indemnifying
13
party, the indemnifying party shall at its own expense resist and defend such
action, suit or proceeding by counsel reasonably approved by the indemnified
party. If any such action, suit or proceeding should result in a final judgment
against the indemnified party, the indemnifying party shall promptly satisfy and
discharge such judgment or shall cause such judgment to be promptly satisfied
and discharged. The obligations of the indemnifying party under this Section
arising by reason of any such occurrence taking place while this Lease is in
effect shall survive any termination of this Lease.
13. INSURANCE
---------
(a) Without limiting Tenant's indemnity obligations set forth in this
Lease (but subject to the waiver of subrogation provided in Section 13(c)
below), Tenant shall, at its sole cost and expense, procure and maintain
throughout the Term commercial general liability insurance in the amount of
$10,000,000 combined single limited (CSL).
(b) All policies of insurance required under Section 13(a) above will
name the Ground Lessor and Landlord and its managing agent(s) as additional
insureds, and certificates thereof will be delivered to Landlord within ten (1)
days after the delivery of possession of the Demised Premises to Tenant and
within 30 days prior to the expiration of the term of each policy. All policies
of insurance required hereunder must contain a provision that the insurance
carrier will notify in writing the insured and Landlord thirty (30) days in
advance of any cancellation or lapse or the effective date of a reduction in the
amount of insurance. All policies of insurance required hereunder shall be
written as primary policies. The Tenant further covenants and agrees to increase
liability insurance in additional amounts as Landlord may reasonably require.
All policies of insurance required hereunder shall be issued by responsible
insurance companies qualified to do business in the State of Arizona with a
Best's Rating Guide rating of at least A-Class VIII or, if Best's Rating Guide
ceases to be published, an equivalent rating reasonably acceptable to Landlord.
(c) In the event any liability indemnified against under Section 12
or elsewhere in this Lease is also insured against under Section 13 or
otherwise, the indemnification obligation shall only extend to the portion of
the liability exceeding the amount of insurance proceeds, if any, received by
the party being indemnified, the parties hereby waiving all rights of
subrogation to the extent permitted by any applicable insurance policies.
(d) Tenant may procure, but shall not be required to procure,
property damage and/or casualty insurance. In the event Tenant does so, Tenant
shall be the sole owner thereof and Landlord shall have no interest or rights
therein.
14
14. LIENS
-----
(a) Tenant shall have no power to do any act or make any contract
which may create or be the basis for any lien, mortgage or other encumbrance
upon the interest of Landlord in the Demised Premises. Under no circumstances
shall the interest of Ground Lessor in and to the Demised Premises be subject to
any such lien, mortgage or other encumbrance.
(b) If, because of any act or omission or alleged act or omission of
Tenant, any mechanics', materialmen's or other lien, charge or order for the
payment of money shall be filed or recorded against ground Lessor, Landlord or
the Demised Premises (whether or not such lien, charge or order is valid or
enforceable as such), Tenant shall, at its own expense, cause the same to be
released and discharged of record within thirty (30) days after Tenant shall
have received notice of the filing or recording thereof, or Tenant may, within
said period, record a surety bond pursuant to Section 33-1004, Arizona Revised
Statutes, in the case of a mechanics' or materialmen's lien, or furnish to
Landlord a bond satisfactory to Landlord against any other lien, charge or
order, in which case Tenant shall have the right in good faith to contest the
validity or amount thereof.
15. DAMAGE OR DESTRUCTION
---------------------
In the event any portion of the Demised Premises is damaged by fire or any
other peril, Tenant, at its election, either (a) shall promptly commence and
proceed diligently with the work of restoring the same, or (b) shall raze all
damaged Improvements and return the Demised Premises to their condition
preceding execution of this Lease.
16. EMINENT DOMAIN
--------------
(a) If the whole of the Demised Premises shall be taken or condemned
under the right of eminent domain or if such a substantial part of the Demised
Premises shall be taken as shall result in the portion remaining being
unsuitable for the use being made thereof at the time of such taking, then this
Lease shall terminate as of the date upon which title shall vest in such
condemning authority. The net awards or payments on account of any taking shall
be apportioned as follows:
(i) Ground Lessor shall receive that portion of the award
attributable to the value of the Land.
(ii) Tenant shall receive that portion of the award
attributable to the value of the Improvements.
(b) If only a part of the Demised Premises shall be so taken or
condemned and the part not so taken can, in Tenant's reasonable judgment, be
adapted for the use then being made thereof, this Lease shall remain in full
force and effect without any
15
abatement or reduction rent except as provided in Section 16(c), and Tenant,
whether or not its portion of the awards or payments, if any, on account of such
taking shall be sufficient for the purpose, at its own expense shall promptly
commence and complete the restoration of the Improvements on the Demised
Premises as nearly as possible to their value, condition and character
immediately prior to such taking or condemnation. Tenant shall have no
entitlement to any rent reduction for any taking or condemnation of Land which
does not result in a reduction in the net square footage of the Demised
Premises.
(c) In the event that a taking or condemnation results in a reduction
of the net square footage of the Land, the Annual Rent and Additional Charges
payable by Tenant hereunder shall be reduced, effective as of the date of
Tenant's loss of use thereof, by a fraction the numerator of which shall be the
total reduction in the net square footage of the Land and the denominator of
which shall be the total net square footage of the Land as originally set forth
in the Fundamental Lease Provisions.
(d) If the award or payments on account of any taking shall not be
divided or apportioned by the court or the condemning authority into the
portions set forth in Section 16(a), and if Landlord and Tenant shall be unable
to agree on such apportionment, then such apportionment shall be determined by
appraisers. Landlord and Tenant shall each appoint an appraiser, and the two
appraisers so appointed shall promptly appoint a third appraiser. Within thirty
(30) days after the appointment of the third appraiser, the two appraisers
appointed by Landlord and Tenant shall each determine and report to the third
appraiser the appropriate apportionment. Within ten (10) days thereafter, the
third appraiser shall determine which of the two apportionments determined by
the appraisers appointed by Landlord and Tenant is the more appropriate
apportionment and the apportionment chosen by the third appraiser shall be
binding upon the parties. All appraisers shall be members of the American
Institute of Real Estate Appraisers (M.A.I.) or, if such Institute shall not
then exist, members of its successor organization or an organization of
substantially equivalent stature. The fees of the appraisers shall be borne
equally by Landlord and Tenant.
17. DEFAULTS AND REMEDIES
---------------------
(a) The occurrence of any one or more of the following events shall
constitute a "Default" hereunder by Tenant:
(1) The failure by Tenant to make any payment of Annual Rent or
any Additional Charges required to be paid by Tenant hereunder on the date such
payment was due (and expiration if any applicable grace period), where such
failure shall continue for a period of thirty (30) days after written notice
thereof from Landlord to Tenant.
(2) The failure by Tenant or any sublessee of Tenant to observe
or perform the covenant set forth in Section 7 where such failure shall continue
for a period of sixty (60) days after written notice thereof from Landlord to
Tenant.
16
(3) The failure by Tenant to observe or perform any express or
implied covenant or provision of this Lease to be observed or performed by
Tenant, other than as specified in (1) and (2) above, where such failure such
continue for a period of sixty (60) days after written notice thereof from
Landlord to Tenant; provided, however, that if the nature of Tenant's default is
such that it is capable of being cured but more than sixty (60) days are
reasonably required for its cure, then Tenant shall not be deemed to be in
Default if Tenant shall commence such cure within said sixty (60) day period and
thereafter diligently prosecute such cure to completion.
(b) In the event of a Default by Tenant, in addition to any other
remedies available to Landlord at law or in equity, Landlord may, without notice
or demand of any kind to Tenant, have any one or more of the following described
remedies:
(1) Landlord shall have the right, at its election, to reenter
the Demised Premises, or any part thereof, either with or without process of
law, and to expel, remove and put out Tenant and persons occupying the Demised
Premises under Tenant, using such force as may be necessary in so doing, to take
full possession of and control over the Demised Premises and to have, hold and
enjoy the same and to receive all rental income of and from the same. No reentry
by Landlord shall be deemed an acceptance of a surrender of this Lease, nor
shall it absolve or discharge Tenant from any liability under this Lease. No
reentry by Landlord shall be deemed to effect a termination of this Lease unless
so stated by Landlord in a written notice delivered to Tenant.
(2) Landlord shall have the right, at its election, with or
without reentry as provided in subparagraph (1) immediately above, to give
written notice to Tenant stating that this Lease and the Term hereby demised
shall terminate on the date specified by such notice, and upon the date
specified in such notice this Lease and the Term hereby demised and all rights
of Tenant hereunder shall terminate. Upon such termination, Tenant shall quit
and peacefully surrender to Landlord the Demised Premises and the Improvements
then situated hereon.
(3) At any time and from time to time after such reentry,
Landlord may relet the Demised Premises, or any part thereof, in the name of
Landlord or otherwise, for such term or terms (which may be greater or less than
the period which would otherwise have constituted the balance of the Term of
this Lease), and on such conditions (which may include concessions or free
rental) as Landlord, in its reasonable discretion, may determine and may collect
and receive the rental therefor. However, in no event shall Landlord be under
any obligation to relet the Demised Premises or any part thereof, and Landlord
shall in no way be responsible or liable for any failure to relet or for any
failure to collect any rental due upon any such reletting. Even though it may
relet the Demised Premises, Landlord shall have the right thereafter to
terminate this Lease and all of the rights of Tenant in or to the Demised
Premises.
17
(4) Unless Landlord shall have notified Tenant in writing that
it has elected to terminate this Lease, no such reentry or action in lawful
detainer or otherwise to obtain possession of the Demised Premises shall relieve
Tenant of its liability and obligations under this Lease; and all such liability
and obligations shall survive any such reentry. In the event of any such
reentry, whether or not the Demised Premises, or any part thereof, shall have
been relet, Tenant shall pay to Landlord the entire rental and all other charges
required to be paid by Tenant up to the time of such reentry of this Lease, and
thereafter Tenant, until the end of what would have been the Term of this Lease
in the absence of such reentry, shall be liable to Landlord, and shall pay to
Landlord, as and for liquidated and agreed damages for Tenant's Default:
(i) The amount of Annual Rental and Additional Charges
which would be payable under this Lease by Tenant if this Lease were
still in effect, less
(ii) The net proceeds of any reletting, after deducting
all of Landlord's reasonable expenses in connection with such
reletting, including without limitation all reasonable repossession
costs, brokerage commissions, legal expenses, attorneys' fees,
alteration and repair costs and expenses of preparation for such
reletting.
Tenant shall pay such damages to Landlord monthly as and when payments of Annual
Rent are due, and Landlord shall be entitled to recover from Tenant monthly as
the same shall arise. Tenant shall be liable for such damages on a monthly
basis, whether or not in any prior year or years the net proceeds described in
subparagraph (ii) above shall have exceeded the Annual Rent and Additional
Charges described in subparagraph (i) above.
(5) In the event of any breach or threatened breach by Tenant of
any of the terms, covenants or agreements contained in this Lease, Landlord
shall have, in addition to any specific remedies provided in this Lease, the
right to invoke any right or remedy allowed by law or in equity or by statute or
otherwise, including the right to enjoin such breach or threatened breach.
(6) Each right and remedy of Landlord provided for in this Lease
shall be cumulative and in addition to every other right or remedy provided for
in this Lease or now or hereafter existing at law or in equity or by statute or
otherwise; and the exercise or beginning of the exercise by Landlord of any one
or more of such rights or remedies shall not preclude the simultaneous or later
exercise by Landlord of any or all other rights or remedies provided for in this
Lease or now or hereafter existing at law or in equity or by statute or
otherwise.
(c) No waiver or breach of any term of this Lease shall be construed
as a waiver of any succeeding breach of the same or any other term.
18
18. ASSIGNMENT AND SUBLETTING
-------------------------
(a) Tenant shall not, either voluntarily or by operation of law,
sell, assign or transfer this Lease, or sublet the Demised Premises or any part
thereof, or permit the Demised Premises or any part thereof to be occupied by
anyone than Tenant or Tenant's employees or invitees (all of the foregoing
collectively referred to in this Section 18 as a "Transfer"), without providing
Landlord at least thirty (30) days advance notice of such Transfer without the
prior written consent of Landlord, such consent not to be unreasonably withheld.
(b) No Transfer, even with the consent of Landlord, shall relieve
Tenant of its obligation to pay the Annual Rent and the Additional Charges and
to perform all the other obligations to be performed by Tenant hereunder. The
acceptance by Landlord of any payment of Annual Rent or Additional Charges from
any other person shall not be deemed to be a waiver by Landlord of any provision
of this Lease or to be a consent to any Assignment.
(c) Each transfer shall be a written instrument executed by the
assignor, sublessor or transferor, and by which the assignee, sublessee or
transferee shall agree in writing for the benefit of Landlord; (i) if a
sublessee, to abide by and in its use and occupancy of the Demised Premises to
comply with the terms and conditions of this Lease, or (ii) if an assignee of
Tenant's interest, to assume, to be bound by, and to perform the terms,
covenants and conditions of this Lease to be done, kept and performed by Tenant.
One executed copy of such written instrument shall be delivered to Landlord.
(d) Tenant has informed Landlord that Tenant intends to sublet the
Demised Premises to Avnet, Inc. ("Subtenant") pursuant to a lease agreement
executed concurrently herewith (the "Sublease"). Tenant represents and warrants
to Landlord that Subtenant agrees in the Sublease to use the Demised Premises
for the following purposes: corporate, national or regional headquarters of a
division, subsidiary or affiliate of Subtenant. Based upon the foregoing
representation, Landlord confirms that the foregoing described use is a
"Permitted Use" under this Lease (as that term is defined in Section 7 above).
19. HYPOTHECATION OF LEASEHOLD ESTATE
---------------------------------
(a) Tenant is hereby given the right, at any time and from time to
time, to mortgage its leasehold estate in the Demised Premises (but in no event
the fee or Landlord's leasehold estate), provided that any such leasehold
mortgage shall be subject and subordinate to the rights of Landlord hereunder.
As used in this Section and throughout this Lease, the noun "mortgage" shall
include a deed of trust, the verb "mortgage" shall include the creation of a
deed of trust, the word "mortgagee" shall include the beneficiary under a deed
of trust, and the terms "foreclose" or "foreclosure" shall include a trustee's
sale under a deed of trust and an assignment of the mortgagor's interest in the
Demised Premises to the mortgagee in lieu of foreclosure as well as a
foreclosure by judicial process.
19
(b) If mortgagee shall have given Landlord, before any Default shall
have occurred hereunder, a written notice specifying the name and mailing
address of the mortgagee, then Landlord shall not terminate this Lease by reason
of the occurrence of any Default hereunder unless Landlord shall have given the
mortgagee a copy of its notice to Tenant of such Default addressed to the
mailing address last furnished by the mortgagee, and such Default shall not have
been cured by said mortgagee as provided in Sections 19(c) or 19(d) below.
(c) Tenant irrevocably directs that Landlord accept, and Landlord
agrees to accept, performance by any such mortgagee of any term, covenant,
agreement, provision, condition or limitation on Tenant's part to be performed
or observed as though performed or observed by Tenant, provided such performance
by said mortgagee shall occur within the time prescribed therefor in this Lease,
plus an additional grace period of thirty (30) days thereafter or, if said
Default is curable but not within said thirty (30) day period, then within such
additional time as may be necessary to cure the same provided the mortgagee
commences the curing thereof within such thirty (30) day period and thereafter
prosecutes the curing of such Default to completion with all due diligence;
provided, however, with respect to any Default hereunder which cannot be cured
by said mortgagee until it obtains possession of the Demised Premises, the
provisions of Section 19(d) shall apply.
(d) In the event of a Default by Tenant under this Lease which cannot
be cured by a mortgagee without first obtaining possession of the Demised
Premises, then, and notwithstanding any other provision contained in this Lease,
Landlord shall not terminate this Lease by reason of such Default if (i) said
mortgagee, within the thirty (30) day grace period set forth in Section 19(c)
shall have commenced, and thereafter diligently proceeds with, an appropriate
proceeding to foreclose such mortgage or otherwise obtains possession of the
Demised Premises, and (ii) said mortgagee shall have cured such Default within
30 days following its obtaining possession of the Demised Premises (or, if said
Default is curable but not within said thirty (30) day period, then within such
additional time as may be necessary to cure the same provided the mortgagee
commences the curing thereof within such thirty (30) day period and thereafter
prosecutes the curing of such Default to completion with all due diligence).
(e) During the pendency of any foreclosure proceedings, mortgagee
shall fully perform all the obligations of Tenant under this Lease that can be
performed by such mortgagee without possession of the Demised Premises
(including, but not limited to, payment of all Rent, all Additional Charges, and
any and all other monies due and payable by Tenant hereunder); provided,
however, that if such mortgagee obtains possession of the Demised Premises
during the time that it is enforcing its foreclosure remedy or as a result
thereof, then such mortgagee shall perform fully all of Tenant's obligations
under this Lease. In the event such mortgagee or any purchaser at a judicial or
non-judicial foreclosure sale ("purchaser") acquires title to the leasehold
estate through such a foreclosure proceedings, or otherwise, it shall thereupon
become subrogated to all the rights of the Tenant under this Lease whereupon:
20
(i) Tenant shall have no further right hereunder; and
(ii) Such mortgagee or purchaser shall forthwith be
obligated to assume and perform such and all of Tenant's obligations and
covenants hereunder.
(f) In the event a mortgagee or purchaser acquires title to the
leasehold estate of Tenant, then, at any time thereafter when said mortgagee or
purchaser is not then in default under this Lease, Landlord shall, upon written
request of mortgagee or purchaser deliver a new lease of the Demised Premises to
the mortgagee or purchaser. The new lease (whether it be granted to the
mortgagee or purchaser) shall have a term equal to the remainder of the Term of
this Lease and shall be upon the terms and conditions herein contained, except
for requirements which are no longer applicable or have already been performed.
The mortgagee or purchaser shall have the right to a new lease as set forth
above provided that mortgagee or purchaser shall reimburse Landlord for all of
Landlord's expenses, including reasonable attorneys' fees, incident to such
efforts.
(g) Upon the written request of any mortgagee or prospective
mortgagee, and for the benefit of said mortgagee or its nominee, Landlord will
promptly deliver to said mortgagee a certificate setting forth the matters set
forth in Section 21.
(h) Notwithstanding anything to the contrary contained in this
Section 19, the mortgagee, on or after acquiring ownership of Tenant's leasehold
estate, may assign this Lease without the necessity of obtaining Landlord's
consent and, upon any such assignment, provided such assignee shall assume and
agree to perform and be bound by all of the terms hereof, be released from all
liability hereunder except for obligations occurring during its ownership of
said leasehold estate.
20. SUBORDINATION
-------------
(a) This Lease shall be subject and subordinate at all times to the
Ground Lease, and to the lien of any mortgages or deeds of trust of the Ground
Lessor or the Landlord in any amount or amounts whatsoever now or hereafter
placed on or against the Demised Premises, the Ground Lease, or Landlord's
leasehold estate in this Lease without the necessity of the execution and
delivery of any further instruments on the part of Tenant to effectuate such
subordination; provided, however, that so long as no Default exists, the terms
of this Lease shall not be affected by termination proceedings in respect to the
Ground Lease or by foreclosure or other proceedings under such mortgages or
deeds of trust, Tenant hereby agreeing, at the written request of the Ground
Lessor, or the purchaser in such foreclosure or other proceedings, to attorn to
the Ground Lessor, or to such purchaser, as applicable (provided the Ground
Lessor or such purchaser agrees to recognize Tenant's leasehold estate and not
disturb Tenant's tenancy so long as Tenant is not in Default under any of the
terms, covenants or conditions of this Lease), or, at Ground Lessor's or such
purchaser's option, as the case may be,
21
to enter into a new lease for the balance of the term hereof upon the same terms
and provisions as are contained in this Lease. Notwithstanding the foregoing,
Tenant shall execute and deliver such further instrument or instruments
evidencing such subordination of this Lease to the Ground Lease, or the lien of
any such mortgage or mortgages or deeds of trust as may be requested by Landlord
within ten (10) days from Tenant's receipt of such request provided such
instrument also evidences Tenant's rights of recognition and non-disturbance.
(b) Any transfer by Landlord of its leasehold estate under this Lease
shall be subject to the rights and obligations of Tenant hereunder; and Tenant
shall attorn to Landlord's transferee. Upon any such transfer and the assumption
of liability therefor by Landlord's transferee, and written notice of such
transfer to Tenant, Landlord shall be and is hereby entirely freed and released
of all liability under any and all of its covenants and obligations contained in
or derived from this Lease arising out of any act or omission related to the
Research Park, the Demised Premises or this Lease occurring after the
consummation of such transfer.
(c) To evidence the agreements set forth in paragraphs (a) and (b)
above, simultaneously with the execution of this Lease, Ground Lessor, Landlord
and Tenant shall execute and record a Recognition, Non-Disturbance and
Attornment Agreement in the form of Exhibit E attached hereto.
21. ESTOPPEL CERTIFICATE
--------------------
(a) Upon receipt of a written request from the other, Landlord and
Tenant shall each, from time to time, and within ten (10) days from receipt of
such request, execute, acknowledge and deliver
(b) Failure to deliver such statement within such time shall be
conclusive (i) that this Lease is in full force and effect, without modification
except as may be represented by the party requesting the certificate, (ii) that
there are no uncured defaults in performance by the party requesting the
certificate, and (iii) that all Annual Rent and Additional Charges have been
paid as of the date set forth in such certificate. Any prospective purchaser or
encumbrancer of all or any portion of an estate in the Demised Premises may rely
upon the matters set forth in (i), (ii) and (iii) the same as if they were set
forth in a certificate from the party from whom such a certificate was requested
under (a) above.
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22. GOVERNING LAW
-------------
The Lease shall be governed by and construed pursuant to the laws of the
State of Arizona and it is agreed that the venue of any legal suit or action for
enforcement of any obligation contained herein shall be Maricopa County,
Arizona. This lease shall not be construed either for or against Landlord or
Tenant, but rather shall be interpreted in accordance with the general terms of
the language in an effort to reach an equitable result.
23. STATUS OF TENANT
----------------
Tenant covenants that it is a valid and existing corporation under the laws
of the State of Minnesota that it is duly authorized to transact business in the
State of Arizona, and that it has full right and authority to enter into this
Lease.
24. SUCCESSORS AND ASSIGNS
----------------------
Except as otherwise provided in this Lease, all of the covenants,
conditions and provision of this Lease shall be binding upon and shall inure to
the benefit of the parties hereto and their respective heirs, personal
representatives, successors and assigns.
25. ATTORNEYS' FEES
---------------
In the event that either Landlord or Tenant bring suit against the other
because of the breach of any provision of this Lease, then all costs and
expenses, including reasonable attorneys' fees, incurred by the prevailing party
therein shall be paid by the other party, which obligation on the part of the
other party shall be deemed to have accrued on the date of the commencement of
such action and shall be enforceable whether or not the action is prosecuted to
judgment.
26. PERFORMANCE BY TENANT
---------------------
All covenants to be performed by Tenant shall be performed at Tenant's sole
cost and expense and without any abatement of Annual Rent or Additional Charges.
If Tenant shall fail to pay any sum of money, other than Annual Rent, required
to be paid by it hereunder or shall fail to perform any other act on its part to
be performed hereunder, and such failure shall continue for ten (10) days after
notice thereof by Landlord, Landlord may, without releasing Tenant from any
obligations, but shall not be obligated to, make any such payment or perform any
such other act on Tenant's part to be made or performed. All sums so paid by
Landlord, and all necessary incidental costs shall bear interest thereon at an
annual rate of two (2) percentage points above the annual interest rate
published from time to time by The Wall Street Journal under the masthead "Money
Rates" as the Prime Rate in effect at the due date (and thereafter adjusted
quarterly, but not more than the maximum contractual rate permissible by law),
from the date of such payment by Landlord and shall be payable to Landlord on
demand. In the event that
▇▇
▇▇▇ ▇▇▇▇ ▇▇▇▇▇▇ Journal ceases to publish a Prime Rate, then interest shall be
calculated with reference to an equivalent index selected by Landlord.
27. MORTGAGE PROTECTION
-------------------
In the event of any default on the part of Landlord, Tenant will give
notice by registered or certified mail to any beneficiary of a deed of trust or
mortgagee of a mortgage covering Landlord's leasehold estate under this Lease
whose address shall have been furnished it, and shall offer such beneficiary or
mortgagee a reasonable opportunity to cure the default, including time to obtain
possession of the Demised Premises by power of sale or a judicial foreclosure,
it such should prove necessary to effect a cure.
28. WAIVER
------
The waiver by either Landlord or Tenant of any breach of any term herein
contained shall not be deemed to be a waiver of any subsequent breach of the
same or any other term herein contained, nor shall any custom or practice which
may grow up between the parties in the administration of the terms hereof be
deemed a waiver of, or in any way affect, the rights of either Landlord or
Tenant to insist upon the performance by the other in strict accordance with
said terms. The subsequent acceptance of Annual Rent or any Additional Charges
by Landlord shall not be deemed to be a waiver of any preceding breach by Tenant
of any term of this Lease, other than the failure of Tenant to pay the Annual
Rent or Additional Charges so accepted, regardless of Landlord's knowledge of
such preceding breach at the time of acceptance of such Annual Rent or
Additional Charges.
29. EXAMINATION OF LEASE
--------------------
Submission of this instrument for examination or signature by Tenant does
not constitute a reservation of or option for Lease, and it is not effective as
a Lease or otherwise until execution by and delivery to both Landlord and
Tenant.
30. TIME
----
Time is of the essence with respect to the performance of every provision
of this Lease in which time or performance is a factor.
31. PRIOR AGREEMENTS, AMENDMENTS
----------------------------
This Lease contains all of the agreements of the parties hereto with
respect to any matter covered or mentioned in this Lease, and no prior
agreement, understanding or representation, pertaining to any such matter shall
be effective for any purpose. No provision of this Lease may be amended or added
to except by an agreement in writing signed by the parties hereto or their
respective successors in interest.
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32. SEVERABILITY
------------
Any provision of this Lease which shall prove to be invalid, void or
illegal in no way affects, impairs or invalidates any other provision hereof,
and such other provision shall remain in full force and effect.
33. RECORDING
---------
A memorandum of Lease in the form attached hereto as Exhibit F shall be
executed and recorded promptly after the full execution of this Lease.
34. LIMITATION ON LIABILITY
-----------------------
In consideration of the benefits accruing hereunder, Tenant and all
successors and assigns covenant and agree that, in the event of any actual or
alleged failure, breach or default hereunder by Landlord, Tenant shall not have
recourse against any of the assets of Landlord except Landlord's leasehold
estate under this Lease and Landlord's leasehold estate under the Ground
Sublease.
35. NONSUBORDINATED SUBLEASE
------------------------
This is a nonsubordinated sublease. Neither Ground Lessor nor Landlord is
obligated to subordinate its rights in the Demised Premises to any loan or money
encumbrance that Tenant shall place against Tenant's subleasehold interest.
36. CONSENT OF LANDLORD AND TENANT
------------------------------
In the event of the failure of Landlord or Tenant to give any consent or
approval required herein, if it is either provided herein or held to be that any
such consent or approval shall not be unreasonably withheld or delayed, the
requesting party shall be entitled to seek specific performance at law and shall
have such other remedies as are reserved to it under this Lease, but in no event
shall Landlord or Tenant be responsible for damages to anyone for such failure
to give consent or approval.
37. RECAPTURE BY LANDLORD
---------------------
In the event the Demised Premises are not occupied with at least 25% of the
Floor Area of the Demised Premises being actively used for a period of 365
consecutive days ("Dark Period"), then Landlord after notice to Tenant as
provided below and to any trust deed beneficiary or mortgagee as provided in
Section 27 above (a "Lender"), shall have the right, but not the obligation, to
terminate this Lease and retake possession of the Demised Premises unless within
(sixty) 60 days after the giving of Landlord's notice of intent to terminate:
25
a. The Demised Premises are occupied with at least 25% of the
Floor Area of the Demised Premises being actively used, or
b. Tenant provides to Landlord reasonable evidence that Tenant
is actively and diligently exercising such rights or remedies available to
Tenant to cause a sublessee or sublessees approved by Landlord pursuant to
Section 18 above (an "Approved Sublessee") to end the Park Period, or
c. Tenant or any Approved Sublessee provides to Landlord
reasonable evidence that the Approved Sublessee is actively and diligently
exercising commercially reasonable efforts to assign or sublease its interest in
the Demised Premises and such efforts thereafter are diligently continued to end
the Dark Period, or
d. Tenant or any Lender provides Landlord with reasonable
evidence that the Lender is actively and diligently exercising its rights and
remedies under its deed of trust or mortgage to cause Tenant pursuant to Section
18 above to end the Dark Period (the foregoing notice and cure rights provided
to a Lender are not in limitation of the rights provided to a Lender under
Section 27 above); and
e. At all times Tenant shall continue to maintain or cause the
Demised Premises to be maintained in accordance with the standards prescribed in
this Lease and in the Restrictions.
Upon such termination, Tenant shall have no further rights or obligations under
this Lease.
38. TITLE OF IMPROVEMENTS
---------------------
During the Term of this Lease, ownership of the Improvements shall be
vested in Tenant. Upon expiration or termination of this Lease, title to the
Improvements shall automatically vest in Landlord.
39. SURRENDER
---------
Upon the expiration or other termination of the Term, Tenant shall quit and
surrender to Landlord the Demised Premises, including all Improvements,
buildings, replacements, changes, additions and other improvements thereon, with
all non-trade fixtures and equipment in or appurtenant thereto in their then
existing condition (but excluding any personal property of Tenant) or, if
requested by Landlord, shall clear the land, putting the same into the same
condition as existed prior to the execution of this Lease.
40. RESTRICTIONS - AMENDMENTS
-------------------------
Tenant agrees that its construction, use, maintenance, ownership and
operation of the Demised Premises are subject to the Restrictions, as attached
hereto as Exhibit G. Subject to
26
the limitations set forth in Section 6(i), Tenant specifically acknowledges and
agrees that Landlord may effect amendments to the Restrictions without the prior
written consent of Tenant so long as any such amendments (i) shall apply equally
and without discrimination to all persons entitled to the use and occupancy of
land within the Research Park, (ii) shall not prohibit Subtenant's intended use
of the Demised Premises (as described in the Fundamental Lease Provisions) or
any other Permitted Use, (iii) shall not permit uses within the Research Park
which are not then common to first class research parks located within the
southwestern United States, and (iv) do not, in Tenant's reasonable judgment,
impose an excessive financial burden on Tenant. Tenant further agrees upon
reasonable advance written notice to allow Landlord to enter upon and inspect
the Demised Premises during Tenant's normal working hours for purposes of
monitoring Tenant's compliance with said Restrictions. Landlord agrees that it
will not grant to any other Research Park tenant or to any other third party the
right to enforce any provision of the Restrictions against Tenant or Subtenant.
The preceding sentence shall not apply to enforcement of the Restrictions on
behalf of Landlord by any person or entity retained by Landlord to manage the
Research Park.
41. QUIET POSSESSION
----------------
Landlord agrees that Tenant, upon paying the Annual Rent and Additional
Charges when due and performing all other covenants and conditions of this
Lease, may quietly have, hold and enjoy the Demised Premises during the Term
hereof. It is further the intention of the parties hereto that the covenants of
this Lease be independent of each other.
42. WATER RESOURCES
---------------
It is the announced policy of the State of Arizona, that groundwater
resources be conserved and therefore, with respect to any landscaped area of the
Demised Premises are required by the Restrictions, Tenant will use only those
plants and planting materials that have been approved for use in the Research
Park by the Arizona Department of Water Resources. Upon request, Landlord will
furnish Tenant with a listing of such approved plants and planting materials.
Furthermore, Tenant will not allocate more than 15% of its landscaped area to
turf. Furthermore, no more than 20% of the turfed area developed by Tenant will
be overseeded with any seed variety during the winter dormancy period for
Bermuda grass. Furthermore, no outdoor water bodies such as fountains and
reflecting ponds will be installed by Tenant. For purposes of this Section 42,
"landscaped area" shall mean all areas of the Demised Premises not improved with
Improvements, parking areas and driveways.
43. NOTICES
-------
Any notice required or permitted to be given hereunder must be in writing
and may be given by personal delivery or by mail, and if given by mail shall be
deemed given if sent by registered or certified mail addressed to Tenant, or to
Landlord at the addresses set forth in the
27
Fundamental Lease Provisions. Either may, by written notice to the other,
specify a different address for notice purposes.
44. BROKERS
-------
(a) Except for ▇▇▇▇ ▇▇▇▇▇▇▇▇▇ of Colliers, Inc. ("Broker") and except
as set forth in (b) below, each party warrants to the other party that the
warranting party had not dealings with any other real estate broker or agent in
connection with the negotiation of this Lease, and that it knows of no other
real estate broker or agent who is or might be entitled to a commission in
connection with this Lease and agrees to hold the other party harmless from any
claims of any brokers claiming a commission on account of any actions of the
warranting party. Landlord shall be solely responsible for any commission
payable to Broker as a result of the closing of this lease transaction.
(b) Landlord has informed Tenant that Landlord is represented by
P.C.I. Associates, Ltd., and by Sunbelt Holdings Management, Inc., pursuant to
an asset management agreement with Landlord. Landlord shall be solely
responsible for all fees payable to said entities as a result of the closing of
this lease transaction.
45. NET LEASE
---------
It is the intention of the parties hereto that, except as otherwise
provided in this Lease, this Lease shall be a net lease and that Landlord shall
receive the rents herein reserved and all sums which shall or may become payable
hereunder by Tenant free from all taxes, charges and expenses of every kind or
sort whatsoever (exclusive of rentals due under the Ground Lease) and that
Tenant shall and will and hereby expressly agrees to pay all such sums which,
except for the execution and delivery of this Lease, would have been chargeable
against the Demised Premises and payable by Landlord.
46. TENANT'S TITLE INSURANCE
------------------------
At Tenant's option and at Tenant's sole expense, Tenant may obtain a policy
of title insurance insuring Tenant's subleasehold interest in the Demised
Premises. Tenant's obligations under this Lease shall not be contingent upon the
form or content of any such policy of title insurance.
47. HEIGHT RESTRICTIONS
-------------------
Tenant acknowledges that it has received a copy of that certain Declaration
of Height Limitations ("Declaration") recorded at Document No. 96-0774295,
Official Records of Maricopa County, Arizona. Tenant agrees to comply with said
Declaration.
48. COMMON DRIVEWAY EASEMENT
------------------------
As a condition to approving Tenant's Plans for constructing the
Improvements, Landlord has required Tenant to construct and
28
maintain, and Tenant hereby agrees to construct and maintain, a common driveway
over a portion of the Demised Premises and Research Park land adjacent to the
Demised Premises. Landlord and Tenant have agreed to grant to one another
reciprocal rights to use said common driveway. Upon execution of this Lease,
Landlord and Tenant shall execute and record the Agreement for Use of Common
Driveway in the form of Exhibit H attached hereto.
[SIGNATURES ON FOLLOWING PAGE]
29
IN WITNESS WHEREOF, the parties have executed this Lease as of the day
and year first above written.
▇▇▇▇▇-▇▇▇▇▇▇▇ RESEARCH PARK, INC., an Arizona
nonprofit corporation
By: /s/ ▇. ▇. ▇▇▇▇▇▇▇
--------------------------------------
▇. ▇. ▇▇▇▇▇▇▇
Its: President
LANDLORD
▇▇▇▇ COMPANIES US, INC., a
Minnesota corporation
By: /s/ ▇▇▇▇ ▇▇▇▇▇▇▇▇▇▇▇▇
--------------------------------------
Name: ▇▇▇▇ ▇▇▇▇▇▇▇▇▇▇▇▇
--------------------------------------
Title: VP
--------------------------------------
TENANT
30