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EXHIBIT 10 (a)
THIRD AMENDMENT TO LEASE
This Third Amendment to Lease ("Agreement") is dated for reference
purposes only as of August 11, 1999, by and between Equus 2131, LLC, a
California limited liability company, ("Lessor") successor in interest to
Carlsbad Research Center Number Six, ("Lessor"), and International Lottery &
Totalizator Systems, Inc., a California corporation ("Lessee").
RECITALS
A. Carlsbad Research Center Number Six ("Original Lessor") and
Lessee entered into that certain Lease agreement dated June 26,
1992, (the "Lease"), whereby Lessee leased from Original Lessor
the Premises known as ▇▇▇▇ ▇▇▇▇▇▇▇ ▇▇▇▇▇▇, ▇▇▇▇▇▇▇▇, ▇▇ ▇▇▇▇▇.
The Lease was subsequently amended by the First Amendment to
Lease, dated December 20, 1994, and by the Second Amendment to
Lease dated June 6, 1995.
B. Lessee now desires to reduce the total square footage of the
Premises and extend the term of the Lease, and Lessor, as
successor-in-interest to Original Lessor, agrees to thereto on
the terms and conditions set forth in this Amendment.
NOW, THEREFORE, in consideration of the facts contained in the Recitals above,
the mutual covenants and conditions below, and other good and valuable
consideration, the receipt and sufficiency of which are hereby acknowledged, the
parties agree as follows:
AGREEMENT
1. The expiration date of the Lease shall be June 20, 2005 (the
"Extended Term").
2. The total square footage of the Premises will be reduced to
22,530 rentable square feet (the "New Premises") as further
described in Exhibit 1-A, attached hereto and incorporated
herein by reference. At any time during the Extended Term, upon
written notice to Lessee, Lessor may add up to an additional
2,000 rentable square feet, (the "Additional Space") to the New
Premises at Lessor's sole option. In the event Lessor exercises
its option to add the Additional Space, it will be contiguous to
the New Premises and will be located in the rear half of the
building, in the crosshatched area of Exhibit 1-A.
3. Effective October 1, 1999, the rental rate shall be $1.00 NNN
per rentable square foot per month (which equals $22,530.00 per
month, based on the 22,530 rentable square feet). The rental
rent shall increase annually by three percent (3%) effective
each October 1st, beginning October 1, 2000.
4. Lessee's rent shall be abated for the period from September 16,
1999 through September 30, 1999.
5. The Security Deposit held by Lessor shall be increased by
$55,000.00 for a total Security Deposit of $100,000.00. The
Security Deposit shall not bear interest for benefit of Lessee,
and Lessee agrees to relinquish its right to receive interest
during the original term of the Lease.
6. Lessee shall be entitled to sixty-three (63) parking spaces (2.8
parking spaces per 1000 square feet of New Premises).
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7. Unless otherwise procured and maintained at Lessee's expense by
Lessor, Lessee shall procure and maintain, at Lessee's expense,
a heating, ventilation and air conditioning system maintenance
contract reasonably acceptable to Lessor. Lessee will be
responsible for payment of all utilities metered exclusively to
the New Premises. Any shared utility expenses paid by Lessor
shall be reimbursed to Lessor by Lessee. Lessee shall reimburse
Lessor for Lessee's prorata share of all other expenses
associated with operation, maintenance and repair of the
Premises, including Lessor's management fee of three percent
(3%) of monthly gross receipts and property taxes.
8. Lessor, at Lessor's sole cost and in conformance to all
applicable codes and laws, shall pay all costs to demise the
Building in accordance with Exhibit 1-A. Such costs include, but
are not limited to, demising walls, fire exits,
segregation/addition of electrical service, lighting and
mechanical segregation and all applicable soft costs. In
addition, Lessor will provide Lessee with an Improvement
Allowance ("Allowance") which shall not exceed $67,590.00 ($3.00
per rentable square foot) to improve the New Premises,
substantially in accordance with Exhibit 1-A. The Allowance may
only be used for actual improvements to the New Premises and
will include architectural/space planning, permit fees, and a
construction management fee payable to Equus Realty Advisors,
Inc. in the amount of five percent (5%) of the total cost of the
Improvement Allowance. The improvements shall be completed in
accordance with the attached Work Letter, Exhibit 1-▇. ▇▇▇▇▇▇
shall, at Lessor's sole cost, and in addition to the Allowance,
split the existing HVAC system to separately control Lessee's
CEO's office and the existing board room. Lessee will be
responsible for all costs associated with relocation or
modification of its computer, data/cabling, security and
telephone equipment and all office systems and furniture.
9. Lessee shall have the exclusive use of the Building address and
Lessor will create a separate address for the west half of the
building. Lessee agrees that the address of the west half of the
building may be ▇▇▇▇ ▇▇▇▇▇▇▇ ▇▇▇▇▇▇, ▇▇▇▇▇ ▇▇▇, ▇▇▇▇▇▇▇▇.
10. Lessee shall be allowed to maintain the current location of the
generator and air compressor in the back of the Building and
shall rerun services from such devices as part of the Tenant
Improvement Allowance.
11. Except as specifically modified herein, all other terms and
conditions of the Lease shall remain unchanged and in full force
and effect.
IN WITNESS WHEREOF, the parties have executed this Agreement to be effective as
of October 1, 1999.
LESSOR LESSEE
Equus 2131, LLC International Lottery & Totalizator
a California limited liability company Systems, Inc., a California corporation
By: /s/ ▇▇▇▇▇ ▇. ▇▇▇▇▇▇ By: /s/ ▇▇▇▇▇▇▇▇ ▇. ▇▇▇▇▇
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▇▇▇▇▇ ▇. ▇▇▇▇▇▇
Its: Manager Its: Corporate Secretary and
General Counsel
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