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EXHIBIT 10.15
OFFICE BUILDING LEASE
TABLE OF CONTENTS
SECTION PAGE
1. Basic Lease Terms ...................................... 1
2. Premises and Common Areas Leased ....................... 2
3. Term ................................................... 2
4. Possession ............................................. 2
5. Rent ................................................... 3
6. Rental Adjustment ...................................... 3
7. Security Deposit ....................................... 4
8. Use .................................................... 4
9. Notices ................................................ 5
10. Brokers ................................................ 5
11. Holding Over ........................................... 5
12. Taxes on Tenant's Property ............................. 5
13. Condition of Premises .................................. 5
14. Alterations ............................................ 5
15. Repairs ................................................ 6
16. Liens .................................................. 6
17. Entry By Landlord ...................................... 6
18. Utilities and Services ................................. 6
19. Bankruptcy ............................................. 7
20. Indemnification and Exculpation of Landlord ............ 7
21. Damage to Tenant's Property ............................ 7
22. Tenant's Insurance ..................................... 7
23. Damage or Destruction .................................. 8
24. Eminent Domain ......................................... 9
25. Defaults and Remedies .................................. 9
26. Assignment and Subletting .............................. 10
27. Subordination .......................................... 10
28. Estoppel Certificate ................................... 11
29. Building Planning ...................................... 11
30. Rules and Regulations .................................. 11
31. Conflict of Laws ....................................... 11
32. Successors and Assigns ................................. 11
33. Surrender of Premises .................................. 11
34. Professional Fees ...................................... 11
35. Performance by Tenant .................................. 11
36. Mortgagee Protection ................................... 12
37. Definition of Landlord ................................. 12
38. Waiver ................................................. 12
39. Identification of Tenant ............................... 12
40. Parking ................................................ 12
41. Force Majeure .......................................... 12
42. Terms and Headings ..................................... 12
43. Examination of Lease ................................... 12
44. Time ................................................... 12
45. Prior Agreement or Amendments .......................... 12
46. Separability ........................................... 13
47. Recording .............................................. 13
48. Limitation on Liability ................................ 13
49. Modification For Lender ................................ 13
50. Financial Statements ................................... 13
51. Quiet Enjoyment ........................................ 13
52. Tenant as Corporation .................................. 13
53. Work Letter Agreement .................................. 14
Exhibits
A Outline of Floor Plan or Premises
B The Project
C Notice of Lease Term Dates and Tenant's Percentage
D Standards for Utilities and services
E Tenant Estoppel Certificate
F Rules and Regulations
G Parking Rules and Regulations
H Hazardous Materials
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OFFICE LEASE
1. BASIC LEASE TERMS.
a. DATE OF LEASE EXECUTION: March 22, 1994
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b. TENANT STAC Electronics, a California corporation
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Trade Name:
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Address (leased Premises): ▇▇▇▇▇ ▇▇▇▇ ▇▇▇▇▇ ▇▇▇▇▇
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San Diego, CA 92130
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Floor(s) upon which the Premises are Located: Second (2nd) Suite Number(s): 200
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Address (For Notices): ▇▇▇▇▇ ▇▇▇▇ ▇▇▇▇▇ ▇▇▇▇▇, ▇▇▇▇▇ ▇▇▇
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San Diego, CA 92130
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c. LANDLORD: Weyerhaeuser Mortgage Company, a California corporation and Fort ▇▇▇▇▇▇, Inc.
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Address (For Notices): c/o Weyerhaeuser Mortgage Company, ▇▇▇▇ ▇▇▇▇▇▇ ▇▇▇▇▇▇, ▇▇▇▇▇▇▇▇ ▇▇▇▇▇, ▇▇ ▇▇▇▇▇
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with a copy to ▇▇▇▇ Management, ▇▇▇▇▇ ▇▇▇▇ ▇▇▇▇▇ ▇▇▇▇▇, ▇▇▇▇▇ ▇▇▇, ▇▇▇ ▇▇▇▇▇, ▇▇ ▇▇▇▇▇ or to such other
place as Landlord may from time to time designate by notice to Tenant.
d. PREMISES AREA: Approximately Thirteen Thousand Six Hundred Eight-Six (13,686) Rentable Square Feet
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e. PROJECT AREA: Fifty-Eight Thousand Ninety-Six (58,096) Rentable Square Feet
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f. TENANT PERCENTAGE: 23.56 %
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g. TERM OF LEASE: The term of this Lease shall be for the approximately sixty-six (66) months
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commencing upon the earlier of:
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(2) The date that Tenant opened for business in the Premises, or
(3) September 6, 1994, *
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Reference in this lease to a "Lease Year" shall mean each successive twelve month period commencing
with the first day of the month in which the term of this Lease commences.
h. BASE MONTHLY RENT: $ Seventeen Thousand One Hundred Seven and 50/100 Dollars ($17,107.50)
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j. ANNUAL OPERATING EXPENSE ALLOWANCE: See Addendum "2."
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k. PREPAID RENT: $ 17,107.50 **
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l. TOTAL SECURITY DEPOSIT: $17,107.50, including a $ -0- non-refundable cleaning fee. **
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m. TENANT IMPROVEMENT ALLOWANCE: -- See Addendum "5."--defined in the Work Letter Agreement).
n. TENANT'S USE OF PREMISES: General office use
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o. PARKING: Fifty-seven (57) spaces, including six (6) covered and reserved, free of charge.
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p. BROKER(S): CB Commercial Real Estate Group, Inc. and Business Real Estate Brokerage Company, Inc.
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q. BROKERAGE COMMISSION PAYABLE BY: Landlord
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r. GUARANTOR(S) None
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s. ADDITIONAL SECTIONS
Additional Sections of this lease numbered Addenda "1" through "5" --- are attached hereto and made a part
hereof.
t. ADDITIONAL EXHIBITS
Additional exhibits letters H --- are attached hereto and made a part hereof.
KOL 3/88
* except as such September 6, 1994 date shall be extended for Landlord caused delays and delays due to
the Premises being physically inaccessible through no fault of Tenant, and expiring March 5, 2000.
** See Addendum "5"
*** a Michigan corporation, tenants in common.
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Section 1 represents a summary of the basic terms of this Lease. In the event
of any inconsistency between the terms contained in Section 1 and any specific
clause of this Lease, the terms of the more specific clause shall prevail.
The parties hereto agree that said letting and hiring is upon and subject to
the terms, convenants and conditions herein set forth. Tenant covenants, as a
material part of the consideration for this Lease to keep and perform each and
all of said terms, convenants and conditions for which tenant is liable and that
this Lease is made upon the condition of such performance.
2. PREMISES AND COMMON AREAS LEASED.
a. Landlord hereby leases to Tenant and Tenant hereby leases from Landlord those
certain premises described in Section 1 and in Exhibit A attached hereto (the
"Premises"). ----------------------------------------------------------------
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--------------------------- Landlord and Tenant stipulate that for purposes of
this Lease the Premises contain 13,686 rentable square feet and the Project
contains 58,096 rentable square feet.
b. The Premises are contained within the building at the address designated in
Section 1 located in the Project described on Exhibit B attached hereto (the
"Project").
c. Tenant's Percentage of the Project is stipulated to be 23.56%.------------
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d. Tenant shall have the nonexclusive right to use in common with other tenants
in the Building and the Project and subject to the Rules and Regulations
referred to in Paragraph 30 below the following areas ("Common Areas")
appurtenant to the Premises:
(1) The Building's common entrances, lobbies, restrooms, elevators,
stairways and accessways, loading docks, ramps, drives and platforms and any
passageways and serviceways thereto, and the common pipes, conduits, wires and
appurtenant equipment serving the Premises;
(2) Loading and unloading areas, trash areas, parking areas, roadways,
sidewalks, walkways, parkways, driveways and landscaped areas and similar areas
and facilities appurtenant to the Building.
e. Landlord reserves the right from time to time without unreasonable
interference with ▇▇▇▇▇▇'s use:
(1) To install, use, maintain, repair and replace pipes, ducts,
conduits, wires and appurtenant meters and equipment for service to other parts
of the Building above the ceiling surfaces, below the floor surfaces, within the
walls and in the central core areas, and to relocate any pipes, ducts, conduits,
wires and appurtenant meters and equipment included in the Premises which are
located in the Premises or located elsewhere outside the Premises, and to expand
the Building or Project;
(2) To make changes to the Common Areas, including, without limitation,
changes in the location, size, shape and number of driveways, entrances, parking
spaces, parking areas, loading and unloading areas, ingress, egress, direction
of traffic, landscaped areas and walkways;
(3) To close temporarily any of the Common Areas for maintenance
purposes so long as reasonable access to the Premises remains available:
(4) To designate other land outside the boundaries of the Building or
Project to be a part of the Common Areas;
(5) To add additional buildings and improvements to the Common Areas;
(6) To use the Common Areas while engaged in making additional
improvements, repairs or alterations to the Building or the Project, or any
portion thereof;
(7) To do and perform such other acts and make such other changes in,
to or with respect to the Common Areas, the Building or the Project as Landlord
may, in the exercise of sound business judgment, deem to be appropriate.
3. TERM.
The term of this Lease shall be for the period designated in Section 1,
commencing on the Commencement Date, and ending on the expiration of such
period, unless the term hereby demised shall be sooner terminated as
hereinafter provided. If not specifically designated in Section 1, the
Commencement Date, the date upon which the term of this Lease shall end, the
rentable square feet within the Premises and Tenant's Percentage shall be
determined in accordance with the provisions of Paragraph 2 and will be
specified in Landlord's Notice of Lease Term Dates and Tenant's Percentage
("Notice"), in the form of Exhibit "C" which is attached hereto and is
incorporated herein by this reference, and shall be served upon Tenant as
provided in Paragraph 9. The Notice shall be binding upon Tenant unless Tenant
objects to the Notice in writing, served upon Landlord as provided for in
Paragraph 9 hereof, within five (5) days of Tenant's receipt of the Notice.
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5. RENT.
a. Tenant shall pay Landlord monthly base rent in the initial amount set forth
in Section 1 which shall be payable monthly in advance on the first day of each
and every calendar month ("Base Monthly Rent") provided, however, the first
month's rent shall be due and payable upon execution of this lease.
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d. All rent shall be paid by Tenant to Landlord monthly in advance on the first
day of every calendar month, at the address shown in Section 1, or such other
place as Landlord may designate in writing from time to time. All rent shall be
paid without prior demand or notice and without any deduction or offset
whatsoever. All rent shall be paid in lawful currency of the United States of
America. All rent due for any partial month shall be prorated at the rate of
1/30th of the total monthly rent per day. Tenant acknowledges that late payment
by Tenant to Landlord of any rent or other sums due under this Lease will cause
Landlord to incur costs not contemplated by this Lease, the exact amount of such
costs being extremely difficult and impracticable to ascertain. Such costs
include, without limitation, processing and accounting charges and late charges
that may be imposed on Landlord by the terms of any encumbrance or note secured
by the Premises. Therefore, if any rent or other sum due from Tenant is not
received when due, Tenant shall pay to landlord an additional sum equal to 10%
of such overdue payment. Landlord and Tenant hereby agree that such late charge
represents a fair and reasonable estimate of the costs that Landlord will incur
by reason of any such late payment. Additionally, all such delinquent rent or
other sums, plus this late charge, shall bear interest at the then maximum
lawful rate permitted to be charged by Landlord. Any payments of any kind
returned for insufficient funds will be subject to an additional handling charge
of $25.00, and thereafter, Landlord may require Tenant to pay all future
payments of rent or other sums due by money order or cashier's check.
e. Upon the execution of the Lease, Tenant shall pay to Landlord the prepaid
rent set forth in Section 1, and if Tenant is not in default of any provisions
of the Lease, such prepaid rent shall be applied toward the rent due for the
first month of the term. Landlord's obligations with respect to the prepaid rent
are those of a debtor and not of a trustee, and Landlord can commingle the
prepaid rent with Landlord's general funds. Landlord shall not be required to
pay Tenant interest on the prepaid rent. Landlord shall be entitled to
immediately endorse and cash ▇▇▇▇▇▇'s prepaid rent; however, such endorsement
and cashing shall not constitute Landlord's acceptance of this Lease. In the
event Landlord does not accept this Lease, Landlord shall return said prepaid
rent.
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g. "For purposes of Section 467 of the Internal Revenue Code, the parties to
this lease agreement hereby agree to allocate the stated rents, provided herein,
to the periods which correspond to the actual rent payments as provided under
the terms and conditions of this agreement."
6. RENTAL ADJUSTMENT.
a. For the purposes of this Paragraph 6, the following terms are defined as
follows:
(1) Tenant's Percentage shall mean that portion of the total rentable
area of the Project occupied by Tenant as set forth as a percentage in Section
1.
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(3) Operating Expenses shall consist of all direct costs of operation
and maintenance of the Project and the Common Areas, including any expansions
to the Common Areas by Landlord ("Operating Expenses"), as determined by
standard accounting practices, calculated assuming the Project is fully
occupied, including the following costs by way of illustration, but not
limitation: any and all assessments Landlord must pay for the Project pursuant
to any covenants, conditions or restrictions, reciprocal easement agreements,
tenancy-in-common agreements or similar restrictions and agreements affecting
the Building or the Project; real property taxes and assessments and any taxes
or assessments hereafter imposed in lieu thereof; rent taxes, gross receipt
taxes (whether assessed against Landlord or assessed against Tenant and paid by
▇▇▇▇▇▇▇▇, or both); water and sewer charges; accounting; legal and other
consulting fees; the net cost and expense of insurance for which Landlord is
responsible hereunder or which Landlord or any first mortgagee with a lien
affecting the Premises reasonably deems necessary in connection with the
operation of the Project; utilities; janitorial services; security; labor;
parking charges, utilities surcharges, or any other costs levied, assessed or
imposed by, or at the direction of, or resulting from statutes or regulations
or interpretations thereof, promulgated by any federal, state, regional,
municipal or local government authority in connection with the use or occupancy
of the Project or the Premises or the parking facilities serving the
Project or the Premises; the cost (amortized over such reasonable period as
Landlord shall determine together with interest at the maximum rate allowed by
law on the unamortized balance) of any capital improvements made to the Project
or the Common Areas by the Landlord in order to comply with any governmental
requirements not in existence as of the date of this Lease or designed to
reduce Operating Expenses, or replacement of any building equipment needed to
operate the Building or the Common Areas at the same quality levels as prior to
the replacement; costs incurred in the management of the Project, if any
(including supplies, wages and salaries of employees used in the management,
operation and maintenance of the Project, and payroll taxes and similar
governmental charges with respect thereto, Project management office rental, a
management fee and, in the event Landlord is directly participating in the
administration of the Project, an administrative fee in the amount of
Landlord's actual expenses, such administrative fee not to exceed fifteen
percent (15%) of the annual Operating Expenses excluding therefrom such fee);
air conditioning; waste disposal; heating; ventilating; elevator maintenance;
supplies; materials; equipment; tools; repair and maintenance of the structural
portions of the Project, including the plumbing, heating, ventilating, air
conditioning and electrical systems installed or furnished by Landlord;
maintenance costs, including utilities and payroll expenses, rental of personal
property used in maintenance, and all other upkeep of all parking and Common
Areas; costs and expenses of
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gardening and landscaping; maintenance of signs (other than Tenant's signs);
personal property taxes levied on or attributable to personal property used in
connection with the entire Project, including the Common Areas; reasonable audit
or verification fees; and costs and expenses of repairs, resurfacing, repairing,
maintenance, painting, lighting, cleaning, refuse removal, security and similar
items, including appropriate reserves. Operating Expenses shall not include
depreciation on buildings or equipment therein, Landlord's executive salaries or
real estate brokers' commissions.
(4) As used herein, the term "real property taxes" shall include any
form of assessment, license fee, license tax, business license fee, commercial
rental tax, levy, charge, penalty, tax or similar imposition, imposed by any
authority having the direct power to tax, including any city, county, state or
federal government, or any school, agricultural, lighting, drainage or other
improvement or special assessment district thereof, as against any legal or
equitable interest of Landlord in the Premises, including, but not limited to,
the following:
(a) any tax on Landlord's "right" to other income from the
Premises or as against Landlord's business of leasing the Premises;
(b) any assessment, tax, fee, levy or charge in substitution,
partially or totally, of any assessment, tax, fee, levy or charge previously
included within the definition of real estate tax, including but not limited to,
any assessments, taxes, fees, levies and charges that may be imposed by
governmental agencies for such services as fire protection, street, sidewalk and
road maintenance, refuse removal and for other governmental services formerly
provided without charge to property owners or occupants. It is the intention of
Tenant and Landlord that all such new and increased assessments, taxes, fees,
levies and charges be included within the definition of "real property taxes"
for the purposes of this Lease;
(c) any assessment, tax, fee, levy or charge allocable to or
measured by the area of the Premises or the rent payable hereunder, including,
without limitation, any gross income tax or excise tax levied by the State, city
or federal government, or any political subdivision thereof, with respect to the
receipt of such rent, or upon or with respect to the possession, leasing,
operating, management, maintenance, alteration, repair, use or occupancy by
Tenant of the Premises, or any portion thereof;
(d) any assessment, tax, fee, levy or charge upon this
transaction or any document to which Tenant is a party creating or transferring
an interest or an estate in the Premises.
Notwithstanding any provision of this paragraph 6 expressed or implied
to the contrary, "real property taxes" shall not include Landlord's federal or
state income, franchise, inheritance or estate taxes.
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c. Even though the term has expired and ▇▇▇▇▇▇ has vacated the Premises, when
final determination is made of Tenant's Percentage of Operating Expenses for the
year in which this Lease terminates, Tenant shall immediately pay any increase
due over the estimated expenses paid and, conversely, any overpayment made in
the event said expenses decrease shall be rebated by Landlord to Tenant.
7. SECURITY DEPOSIT.
Upon execution of this Lease, Tenant shall deposit with Landlord the
amount of the security deposit set forth in Section 1 in part as security for
the performance by Tenant of the provisions of this Lease.-----If tenant is in
default, Landlord can use the security deposit or any portion of it to cure the
default or to compensate Landlord for all damage sustained by landlord resulting
from ▇▇▇▇▇▇'s default. Upon demand, ▇▇▇▇▇▇ shall immediately pay to Landlord a
sum equal to the portion of the security deposit expended or applied by Landlord
to maintain the security deposit in the amount initially deposited with
Landlord. In no event will Tenant have the right to apply any part of the
security deposit to any rent or other sums due under this Lease. If Tenant is
not in default at the expiration or termination of this Lease, Landlord shall
return the entire security deposit to Tenant.--------------- Landlord's
obligations with respect to the deposit are those of a debtor and not of a
trustee, and Landlord can commingle the security deposit with Landlord's general
funds. Landlord shall not be required to pay Tenant interest on the deposit.
Landlord shall be entitled to immediately endorse and cash ▇▇▇▇▇▇'s prepaid
deposit; however, such endorsement and cashing shall not constitute Landlord's
acceptance of this Lease. In the event Landlord does not accept this Lease,
Landlord shall return said prepaid deposit. Should Landlord sell its interest in
the Premises during the term hereof and if Landlord deposits with the purchaser
thereof the then unappropriated funds deposited by Tenant as aforesaid,
thereupon Landlord shall be discharged from any further liability with respect
to the Security Deposit.
8. USE.
Tenant shall use the Premises for the uses set forth in Section 1
above, and shall not use or permit the Premises to be used for any other purpose
without the prior written consent of Landlord. Nothing contained herein shall be
deemed to give Tenant any exclusive right to such use in the Building. Tenant
shall not use or occupy the Premises in violation of law or of the Certificate
of Occupancy issued for the Building, and shall, upon written notice from
Landlord, discontinue any use of the Premises which is declared by any
governmental authority having jurisdiction to be a violation of law or of said
Certificate of Occupancy. Tenant shall comply with any direction of any
governmental authority having jurisdiction which shall, by reason of the nature
of Tenant's use or occupancy of the Premises, impose any duty upon Tenant or
Landlord with respect to the Premises or with respect to the use or occupation
thereof. Tenant shall comply with all rules, orders, regulations and
requirements of the Insurance Service Office or any other organization
performing a similar function. Tenant shall promptly, upon demand, reimburse
Landlord for any additional premium charged for such policy by reason of
Tenant's failure to comply with the provisions of this Paragraph. Tenant shall
not do or permit anything to be done in or about the Premises which will in any
way obstruct or interfere with the rights of other tenants or occupants of the
Project, or injure or annoy them, or use or allow the Premises to be used for
any improper, immoral, unlawful or objectionable purpose, nor shall Tenant
cause, maintain or permit any nuisance in, on or about
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the Premises. Tenant shall comply with all restrictive covenants and obligations
created by private contracts which affect the use and operation of the Premises,
the Building, the Common Area or the Project. Subject to Paragraph 23 hereof,
tenant shall not commit or suffer to be committed any waste in or upon the
Premises and shall keep the Premises in first class repair and appearance normal
wear and tear excepted. Landlord reserves the right to prescribe the weight and
position of all files, safes and heavy equipment which Tenant desires to place
in the Premises so as to properly distribute the weight thereof. Further,
Tenant's business machines and mechanical equipment which cause vibration or
noise that may be transmitted to the building structure or to any other space in
the building shall be so installed, maintained and used by Tenant as to
eliminate such vibration or noise. Tenant shall be responsible for all
engineering required to determine structural load.
9. 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 sufficiently given if sent by registered or certified mail
addressed to Tenant at the address(es) designated in Section 1 or to Landlord at
both of the addresses designated in Section 1. Either party may specify a
different address for notice purposes by written notice to the other.
10. BROKERS.
Tenant warrants that it has had no dealings with any real estate broker
or agent in connection with the negotiation of this Lease, except for those
certain brokers whose names are set forth in Section 1 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. If Tenant has dealt with any other person or real
estate broker with respect to leasing or renting space in the Project, Tenant
shall be solely responsible for the payment of any fee due said person or firm
and Tenant shall hold Landlord free and harmless against any liability in
respect thereto, including attorneys' fees and costs.
11. HOLDING OVER.
If Tenant holds over after the expiration or earlier termination of the
term hereof without the express written consent of Landlord, Tenant shall become
a Tenant at sufferance only, at a rental rate equal to the greater of Landlord's
scheduled rent for the space or one hundred twenty-five percent (125%) of the
rent in effect upon the date of such expiration (subject to adjustment as
provided in Paragraph 6 hereof and prorated on a daily basis), and otherwise
subject to the terms, covenants and conditions herein specified, so far as
applicable. Acceptance by Landlord of rent after such expiration or earlier
termination shall not result in a renewal of this Lease. The foregoing
provisions of this Paragraph 11 are in addition to and do not affect Landlord's
right of re-entry or any rights of Landlord hereunder or as otherwise provided
by law. If ▇▇▇▇▇▇ fails to surrender the Premises upon the expiration of this
Lease despite demand to do so by Landlord, Tenant shall indemnify and hold
Landlord harmless from all loss or liability, including without limitation, any
claim made by any succeeding tenant founded on or resulting from such failure to
surrender and any attorneys fees and costs.
12. TAXES ON TENANT'S PROPERTY.
a. Tenant shall be liable for and shall pay at least ten (10) days before
delinquency all taxes levied against any personal property or trade fixtures
placed by Tenant in or about the Premises. If any such taxes on Tenant's
personal property or trade fixtures are levied against Landlord or Landlord's
property or if the assessed value of the Premises is increased by the inclusion
therein of a value placed upon such personal property or trade fixtures of
Tenant and if Landlord, after written notice to Tenant, pays the taxes based
upon such increased assessment, which Landlord shall have the right to do
regardless of the validity thereof, but only under proper protest if requested
by Tenant, Tenant shall, upon demand, repay to Landlord the taxes so levied
against Landlord, or the portion of such taxes resulting from such increase in
the assessment.
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13. CONDITION OF PREMISES.
Tenant acknowledges that neither ▇▇▇▇▇▇▇▇ nor any agent of Landlord has
made any representation or warranty with respect to the Premises, the building
or the Project or with respect to the suitability of either for the conduct of
▇▇▇▇▇▇'s business. The taking of possession of the Premises by Tenant shall
conclusively establish that the Premises and the building were in satisfactory
condition at such time. Without limiting the foregoing, ▇▇▇▇▇▇'s execution of
the Notice attached hereto as EXHIBIT "C" shall constitute a specific
acknowledgement and acceptance of the various start-up inconveniences that may
be associated with the use of the Common Areas such as certain construction
obstacles including scaffolding, delays in use of freight elevator service,
certain elevators not being available to Tenant, the passage of work crews using
elevators, uneven air conditioning services and other typical conditions
incident to recently constructed office buildings.
14. ALTERATIONS
a. Tenant shall make no alterations, additions or improvements in or to the
Premises without Landlord's prior written consent,* and then only by contractors
or mechanics approved by Landlord; such consents and approvals by Landlord shall
not be unreasonably withheld or delayed Tenant shall submit to Landlord plans
and specifications for any proposed alterations, additions or improvements to
the Premises, and may not make such alterations, additions or improvements until
Landlord has approved of such plans and specifications. Tenant shall construct
such alterations, additions or improvements in accordance with the plans and
specifications approved by Landlord, and shall not amend or modify such plans
and specifications without Landlord's prior written consent. If the proposed
change requires the consent or approval of any lessor of a superior lease, or
the holder of a mortgage encumbering the Premises, such consent or approval must
be secured prior to the construction of such alteration, addition or improvement
and Landlord agrees to cooperate in obtaining any such consent or approval.
Tenant agrees that there shall be no construction of partitions or other
obstructions which might interfere with Landlord's free access to mechanical
installations or service facilities of the building or interfere with the moving
of Landlord's equipment to or from the enclosures containing said installations
or facilities. All such work shall be done at such times and in such manner as
Landlord may from time to time designate. Tenant covenants and agrees that all
work done by Tenant shall be performed in full compliance with all laws, rules,
orders, ordinances, regulations and requirements of all governmental agencies,
offices and boards having jurisdiction, and in full compliance with the rules,
regulations and requirements of the Insurance Service Office, and of any similar
body. Before commencing any work, Tenant shall give Landlord at least ten (10)
days written notice of the proposed commencement of such work and shall, if
required by Landlord, ** secure at Tenant's own
*unless such alterations, additions, or improvements are less than a cost of
Five Thousand and No/100 Dollars ($5,000.00),
**and other than for the work described in the Work Letter Agreement of even
date herewith
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cost and expense, a completion and lien indemnity bond satisfactory to Landlord
for said work if said work costs more than $100,000. Tenant further covenants
and agrees that any mechanic's lien filed against the Premises or against the
Building for work claimed to have been done for, or materials claimed to have
been furnished to Tenant, will be discharged by ▇▇▇▇▇▇, by bond or otherwise,
within (10) ten days after the filing thereof, at the cost and expense of
▇▇▇▇▇▇. All alterations, additions or improvements upon the Premises made by
either party, including (without limiting the generality of the foregoing) all
wall covering, built-in cabinet work, paneling and the like, shall, become the
property of Landlord, and shall remain upon, and be surrendered with the
Premises, as a part thereof, at the end of the term hereof.)
b. All articles of personal property and all business and trade fixtures,
machinery and equipment, furniture and movable partitions owned by Tenant or
installed by Tenant at its expense in the Premises shall be and remain the
property of Tenant and may be removed by Tenant at any time during the lease
term. If Tenant shall fail to remove all of its effects from the Premises upon
termination of this Lease for any cause whatsoever, Landlord may, at its option,
remove the same in any manner that Landlord shall choose, and store said effects
without liability to Tenant for loss thereof. In such event, ▇▇▇▇▇▇ agrees to
pay Landlord upon demand any and all expenses incurred in such removal,
including court costs and attorneys' fees and storage charges on such effects,
for any length of time that the same shall be in Landlord's possession. Landlord
may, at its option, without notice, sell said effects, or any of the same, at
private sale and without legal process, for such price as Landlord may obtain
and apply the proceeds of such sale upon any amounts due under this Lease from
Tenant to Landlord and upon the expense incident to the removal and sale of said
effects.
15. REPAIRS.
a. By entry hereunder, ▇▇▇▇▇▇ accepts the Premises as being in good and sanitary
order, condition and repair. Subject to Paragraph 23 hereof Tenant shall keep,
maintain and preserve the Premises in first class condition and repair, normal
wear and tear excepted and shall, when and if needed, at Tenant's sole cost and
expense, make all repairs to the Premises and every part thereof. Tenant shall,
upon the expiration or sooner termination of the term hereof, surrender the
Premises to Landlord in the same condition as when received, usual and ordinary
wear and tear excepted. Landlord shall have no obligation to alter, remodel,
improve, repair, decorate or paint the Premises or any part thereof. The parties
hereto affirm that Landlord has made no representations to Tenant respecting the
condition of the Premises, the building, the Project or the Common Area except
as specifically herein set forth.
b. Anything contained in Paragraph 15a above to the contrary notwithstanding,
Landlord shall repair and maintain the structural portions of the building and
the plumbing, heating, ventilating, air conditioning, elevator and electrical
systems installed or furnished by Landlord, unless such maintenance and repairs
are caused in part or in whole by the act, neglect or omission of any duty by
Tenant, its agents, servants, employees or invitees, in which case Tenant shall
pay to Landlord, as additional rent, the reasonable cost of such maintenance and
repairs. Landlord shall not be liable for any failure to make any such repairs
or to perform any maintenance unless such failure shall persist for an
unreasonable time after written notice of the need of such repairs or
maintenance is given to Landlord by Tenant. Except as provided in Paragraph 23
hereof, there shall be no abatement of rent and no liability of Landlord by
reason of any injury to or interference with ▇▇▇▇▇▇'s business arising from the
making of any repairs, alterations or improvements in or to any portion of the
building or the Premises or in or to fixtures, appurtenances and equipment
therein. Tenant waives the right to make repairs at Landlord's expense under any
law, statute or ordinance now or hereafter in effect.
16. LIENS.
Tenant shall not permit any mechanics', materialmens' or other liens to
be filed against the building or the Project nor against ▇▇▇▇▇▇'s leasehold
interest in the Premises. Landlord shall have the right at all reasonable times
to post and keep posted on the Premises any notices which it deems necessary for
protection from such liens. If any such liens are filed, Landlord may, without
waiving its rights and remedies based on such breach of Tenant and without
releasing Tenant from any of its obligations, cause such liens to be released by
any means it shall deem proper, including payments in satisfaction of the claim
giving rise to such lien. Tenant shall pay to Landlord at once, upon notice by
Landlord, any sum paid by Landlord to remove such liens, together with interest
at the maximum rate per annum permitted by law from the date of such payment by
Landlord.
17. ENTRY BY LANDLORD.
Landlord reserves and shall at any and all times (except as provided
below) have the right to enter the Premises to inspect the same upon reasonable
prior notice to Tenant, to supply janitor service and any other service to be
provided by Landlord to Tenant hereunder, to show the Premises to prospective
purchasers or tenants upon reasonable prior notice to Tenant, to post notices of
nonresponsibility, to alter improve or repair the Premises or any other portion
of the Building* all without being deemed guilty of any eviction of Tenant and
without abatement of rent. Landlord may, in order to carry out such purposes,
erect scaffolding and other necessary structures where reasonably required by
the character of the work to be performed, provided that the business of Tenant
shall be interfered with as little as reasonably practicable. Tenant hereby
waives any claim for damages for any injury or inconvenience to or interference
with ▇▇▇▇▇▇'s business, any loss of occupancy or quiet enjoyment of the
Premises, and any other loss in, upon and about the Premises. Landlord shall at
all times have and retain a key with which to unlock all doors in the Premises,
excluding ▇▇▇▇▇▇'s vaults and safes. Landlord shall have the right to use any
and all means which Landlord may deem proper to open said doors in an emergency
in order to obtain entry to the Premises. Any entry to the Premises obtained by
Landlord by any of said means, or otherwise, shall not be construed or deemed to
be a forcible or unlawful entry into the Premises, or an eviction of Tenant from
the Premises or any portion thereof, and any damages caused on account thereof
shall be paid by ▇▇▇▇▇▇. It is understood and agreed that no provision of this
Lease shall be construed as obligating Landlord to perform any repairs,
alterations or decorations except as otherwise expressly agreed herein by
Landlord.
18. UTILITIES AND SERVICES.
Provided that Tenant is not in default under this Lease, ▇▇▇▇▇▇▇▇ agrees
to furnish or cause to be furnished to the Premises the utilities and services
described in the Standards for Utilities and Services, attached hereto as
EXHIBIT "D", subject to the conditions and in accordance with the standards set
forth therein. Landlord's failure to furnish any of the foregoing items when
such failure is caused by (i) accident, breakage or repairs; (ii) strikes,
lockouts or other labor disturbance or labor dispute of any character; (iii)
governmental regulation, moratorium or other governmental action; (iv) inability
despite the exercise of reasonable diligence to obtain electricity, water or
fuel; or by (v) any other cause beyond Landlord's reasonable control, shall not
result in any liability to Landlord. In addition, Tenant shall not be entitled
to any abatement or reduction of rent by reason of such failure, no eviction of
Tenant shall result from such failure and Tenant shall not be relieved from the
performance of any covenant or agreement in this Lease because of such failure.
In the event of any failure, stoppage or interruption thereof, Landlord shall
diligently attempt to resume service promptly. If Tenant requires or utilizes
more water or electrical power than is considered reasonable or normal by
Landlord, Landlord may at its option require Tenant to pay, as additional rent,
the cost, as fairly determined by Landlord, incurred by such extraordinary
usage. In addition, Landlord may install separate meter(s) for the Premises, at
Landlord's sole expense, and Tenant thereafter shall pay all charges of the
utility providing service and Landlord shall make an appropriate adjustment to
account for the fact Tenant is directly paying such metered charges.
* (with reasonable prior notice to Tenant for non-routine repairs and
maintenance)
6
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19. BANKRUPTCY.
If Tenant shall file a petition in bankruptcy under any provision of
the Bankruptcy Code as then in effect, or if Tenant shall be adjudicated a
bankrupt in involuntary bankruptcy proceedings and such adjudication shall not
have been vacated within thirty (30) days from the date thereof, or if a
receiver or trustee shall be appointed of Tenant's property and the order
appointing such receiver of trustee shall not be set aside or vacated within
thirty (30) days after the entry thereof, or if Tenant shall assign Tenant's
estate or effects for the benefit of creditors, then in any such event Landlord
may terminate this Lease, if Landlord so elects, with or without notice of such
election and with or without entry or action by Landlord. In such case,
notwithstanding any other provisions of this Lease, Landlord, in addition to any
and all rights and remedies allowed by law or equity, shall, upon such
termination, be entitled to recover damages in the amount provided in Paragraph
25b hereof. Neither Tenant nor any person claiming through or under Tenant or by
virtue of any statute or order of any court shall be entitled to possession of
the Premises but shall surrender the Premises to Landlord. Nothing contained
herein shall limit or prejudice the right of Landlord to recover damages by
reason of any such termination equal to the maximum allowed by any statute or
rule of law in effect at the time when, and governing the proceedings in which,
such damages are to be proved; whether or not such amount is greater, equal to
or less than the amount of damages recoverable under the provisions of this
Paragraph 19.
20. INDEMNIFICATION AND EXCULPATION OF LANDLORD.
a. Tenant shall indemnify, defend and hold Landlord harmless from all claims
arising from Tenant's use of the Premises or the conduct of its business or from
any activity, work or thing done, permitted or suffered by Tenant in or about
the Premises, the Building, the Project or the Common Area.** Tenant shall
further indemnify, defend and hold Landlord harmless from all claims arising
from any breach or default in the performance of any obligation to be performed
by Tenant under the terms of this Lease, or arising from any act, neglect, fault
or omission of Tenant or of its agents or employees, and from and against all
costs, attorneys' fees, expenses and liabilities incurred in or about such claim
or any action or proceeding brought thereon. In case any action or proceeding
shall be brought against Landlord by reason of any such claim, Tenant, upon
notice from Landlord, shall defend the same at Tenant's expense by counsel
approved in writing by Landlord. Tenant, as a material part of the consideration
to Landlord, hereby assumes all risk of damage to property or injury to person
in, upon or about the Premises from any cause whatsoever except that which is
caused by the failure of Landlord to observe any of the terms and conditions of
this Lease where such failure has persisted for an unreasonable period of time
after written notice of such failures. Tenant hereby waives all its claims in
respect thereof against Landlord.
b. Neither Landlord nor any partner, director, officer, agent or employee of
Landlord shall be liable to Tenant or its partners, directors, officers,
contractors, agents, employees, invitees, sublessees or licensees, for any
loss, injury or damage to Tenant or to any other person, or to its or their
property, irrespective of the cause of such injury, damage or loss, unless
solely caused by or solely resulting from the gross negligence or willful
misconduct of Landlord or its employees or agents in the operation or
maintenance of the Premises, the building, or the Project without contributory
negligence on the part of Tenant or any of its sublessees or licensees or its
or their employees, agents or contractors, or any other lessees or occupants of
the building or Project. Further, neither Landlord nor any partner, director,
officer, agent or employee of Landlord shall be liable (i) for any such damage
caused by other lessees or persons in or about the building or Project, or
caused by quasi-public work; or (ii) for consequential damages arising out of
any loss of the use of the Premises of any equipment or facilities therein by
Tenant or any person claiming through or under Tenant.
21. DAMAGE TO TENANT'S PROPERTY.
* Notwithstanding the provisions of Paragraph 20 to the contrary, Landlord or
its agents shall not be liable for (i) any damage to any property entrusted to
employees of the building or Project, (ii) loss or damage to any property by
theft or otherwise, (iii) any injury or damage to persons or property resulting
from fire, explosion, falling plaster, steam, gas, electricity, water or rain
which may leak from any part of the building or from the pipes, appliances or
plumbing work therein or from the roof, street or sub-surface or from any other
place or resulting from dampness or any other cause whatsoever. Landlord or its
agents shall not be liable for interference with light or other incorporeal
hereditaments, nor shall Landlord be liable for any latent defect in the
Premises or in the building. Tenant shall give prompt notice to Landlord in case
of fire or accidents in the Premises or in the building or of defects therein or
in the fixtures or equipment.
22. TENANT'S INSURANCE.
a. Tenant shall, during the term hereof and any other period of occupancy, at
its sole cost and expense, keep in full force and effect the following
insurance:
(1) Standard form property insurance insuring against the perils of
fire, extended coverage, vandalism, malicious mischief, special extended
coverage ("All-Risk") and sprinkler leakage. This insurance policy shall be upon
all property owned by Tenant, for which Tenant is legally liable or that was
installed at Tenant's expense, and which is located in the Project including,
without limitation, furniture, fittings, installations, fixtures (other than
Tenant improvements installed by Landlord), and any other personal property, in
an amount not less than ninety percent (90%) of the full replacement cost
thereof. In the event that there shall be a dispute as to the amount which
comprises full replacement cost, the decision of Landlord or any mortgagees of
Landlord shall be conclusive. This insurance policy shall also be upon direct or
indirect loss of ▇▇▇▇▇▇'s earnings attributable to Tenant's inability to use
fully or obtain access to the Premises, Building or Project in an amount as will
properly reimburse Tenant. Such policy shall name ▇▇▇▇▇▇▇▇ and any mortgagees of
Landlord as insured parties, as their respective interests may appear.
(2) Comprehensive General Liability Insurance insuring Tenant against
any liability arising out of the lease, use, occupancy or maintenance of the
Premises and all areas appurtenant thereto. Such insurance shall be in the
amount of $1,000,000 Combined Single Limit for injury to, or death of one or
more persons in an occurrence, and for damage to tangible property (including
loss of use) in an occurrence, with such liability amount to be adjusted from
year to year to reflect increases in the Consumer Price Index. The policy shall
insure the hazards of the Premises and ▇▇▇▇▇▇'s Operations thereon, independent
contractors, contractual liability (covering the indemnity contained in
Paragraph 20 hereof) and shall (a) name Landlord as an additional insured, (b)
contain a cross liability provision and (c) contain a provision that the
insurance provided the Landlord hereunder shall be primary and non-contributing
with any other insurance available to the Landlord.
(3) Workers' Compensation and Employer's Liability insurance (as
required by state law).
(4) Any other form or forms of insurance as Tenant or Landlord or any
mortgagees of Landlord may reasonably require from time to time in form, in
amounts and for insurance risks against which a prudent tenant would protect
itself.
b. All policies shall be written in a form satisfactory to Landlord and
shall be taken out with insurance companies holding a General Policyholders
Rating of "A" and a Financial Rating of "X" or better, as set forth in the most
current issue of Best's Insurance Reports. Within ten (10) days after the
execution of this Lease, Tenant shall deliver to Landlord copies of policies or
certificates evidencing the existence of the amounts and forms of coverage
satisfactory to Landlord. No such policy shall be cancellable or reducible in
coverage except after thirty (30) days prior written notice to Landlord. Tenant
shall, within ten (10) days prior to the expiration of such policies, furnish
Landlord with renewals or "binders" thereof, or Landlord may order such
insurance and charge the cost thereof to Tenant as additional rent. If Landlord
obtains any insurance that is the responsibility of Tenant under this Paragraph,
Landlord shall deliver to Tenant a written statement setting forth the cost of
any such insurance and showing in reasonable detail the manner in which it has
been computed.
* Except to the extent of Landlord's or its employees' or agents' gross
negligence or willful misconduct,
7
** Except to the extent of Landlord's or its employees' or agents'
negligence or willful misconduct,
9
c. During the term of this Lease, Landlord shall insure the Building (excluding
any property which Tenant is obligated to insure under Subparagraphs 22a and b
hereof) against damage with All-Risk insurance and public liability insurance,
all in such amounts and with such deductions as Landlord considers appropriate.
Upon written request of Tenant with reference to this Subparagraph 22c,
Landlord shall provide Tenant with a copy of a certificate of Landlord's
insurance. Landlord may, but shall not be obligated to, obtain and carry any
other form or forms of insurance as it or Landlord's mortgagees may determine
advisable. Notwithstanding any contribution by Tenant to the cost of insurance
premiums, as provided herein, Tenant acknowledges that it has no right to
receive any proceeds from any insurance policies carried by Landlord.
d. Tenant will not keep, use, sell or offer for sale in or upon the Premises any
article which may be prohibited by any insurance policy periodically in force
covering the Building. If ▇▇▇▇▇▇'s occupancy or business in, or on, the
Premises, whether or not Landlord has consented to the same, results in any
increase in premiums for the insurance periodically carried by Landlord with
respect to the Building, Tenant shall pay any such increase in premiums as
additional rent within ten (10) days after being billed therefore by Landlord.
In determining whether increased premiums are a result of Tenant's use of the
Premises, a schedule issued by the organization computing the insurance rate on
the Building or the Tenant Improvements showing the various components of such
rate, shall be conclusive evidence of the several items and charges which make
up such rate. Tenant shall promptly comply with all reasonable requirements of
the insurance authority or any present or future insurer relating to the
Premises.
e. If any of Landlord's insurance policies shall be cancelled or cancellation
shall be threatened or the coverage thereunder reduced or threatened to be
reduced in any way because of the use of the Premises or any part thereof by
Tenant or any assignee or subtenant of Tenant or by anyone Tenant permits on the
Premises and, if Tenant fails to remedy the condition giving rise to such
cancellation, threatened cancellation, reduction of coverage, threatened
reduction of coverage, increase in premiums, or threatened increase in premiums,
within forty-eight (48) hours after notice thereof, Landlord may, at its option,
either terminate this Lease or enter upon the Premises and attempt to remedy
such condition, and Tenant shall promptly pay the cost thereof to Landlord as
additional rent. Landlord shall not be liable for any damage or injury caused to
any property of Tenant or of others located on the Premises resulting from such
entry. If Landlord is unable, or elects not to remedy such condition, then
Landlord shall have all of the remedies provided for in this Lease in the event
of a default by Tenant. Notwithstanding the foregoing provisions of this
Subparagraph 22e, if Tenant fails to remedy as aforesaid, Tenant shall be in
default of its obligation hereunder and Landlord shall have no obligation to
remedy such default.
f. All policies of insurance required hereunder shall include a clause or
endorsement denying the insurer any rights of subrogation against the other
party to the extent rights have been waived by the insured before the
occurrence of injury or loss. Landlord and Tenant waive any rights of recovery
against the other for injury or loss due to hazards covered by policies of
insurance containing such a waiver of subrogation of clause or endorsement to
the extent of the injury or loss covered thereby.
See Addendum "1" Item 8.
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8
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24. EMINENT DOMAIN.
a. In case all of the Premises, or such part thereof as shall substantially
interfere with ▇▇▇▇▇▇'s use and occupancy thereof, shall be taken for any public
or quasi-public purpose by any lawful power or authority by exercise of the
right of appropriation, condemnation or eminent domain, or sold to prevent such
taking, either party shall have the right to terminate this Lease effective as
of the date possession is required to be surrendered to said authority. Tenant
shall not assert any claim against Landlord or the taking authority for any
compensation because of such taking, and Landlord shall be entitled to receive
the entire amount of any award without deduction for any estate or interest of
Tenant. In the event the amount of property or the type of estate taken shall
not substantially interfere with the conduct of Tenant's business, Landlord
shall be entitled to the entire amount of the award without deduction for any
estate or interest of Tenant, Landlord shall restore the Premises to
substantially their same condition prior to such partial taking, and a
proportionate allowance shall be made to Tenant for the rent corresponding to
the time during which, and to the part of the Premises of which, Tenant shall be
so deprived on account of such taking and restoration. Nothing contained in this
paragraph shall be deemed to give Landlord any interest in any award made to
Tenant for the taking of personal property and fixtures belonging to Tenant or
for moving expenses or for the unamortized portion of tenant improvements paid
for by ▇▇▇▇▇▇.
b. In the event of taking of the Premises or any part thereof for temporary use,
(1) this Lease shall be and remain unaffected thereby and rent shall not ▇▇▇▇▇,
and (2) Tenant shall be entitled to receive for itself such portion or portions
of any award made for such use with respect to the period of the taking which is
within the term, provided that if such taking shall remain in force at the
expiration or earlier termination of this Lease, Tenant shall then pay to
Landlord a sum equal to the reasonable cost of performing Tenant's obligations
under Paragraph 15 with respect to surrender of the Premises and upon such
payment shall be excused from such obligations. For purpose of this Subparagraph
24b, a temporary taking shall be defined as a taking for a period of 270 days or
less.
25. DEFAULTS AND REMEDIES.
a. The occurrence of any one or more of the following events shall constitute a
default hereunder by ▇▇▇▇▇▇:
(1) The ------------------------ abandonment of the Premises by ▇▇▇▇▇▇.
Abandonment is herein defined to include, but is not limited to, any absence by
Tenant from the Premises for ten (10) business days or longer while in default
of any provision of this Lease.
(2) The failure by Tenant to make any payment of rent or additional rent
or any other payment required to be made by Tenant hereunder, ----------------
within five days after notice to Tenant that such payment is due.
(3) The failure by Tenant to observe or perform any of the express or
implied covenants or provisions of this Lease to be observed or performed by
Tenant, other than as specified in Subparagraph 25a.(1) or (2) above, where such
failure shall continue for a period of ten (10) days after written notice
thereof from Landlord to Tenant. If the nature of Tenant's default is such that
more than ten (10) 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
ten (10) day period and thereafter diligently prosecute such cure to completion.
(4) The making by Tenant of any general assignment for the benefit of
creditors; the filing by or against Tenant of a petition to have Tenant adjudged
a bankrupt or a petition for reorganization or arrangement under any law
relating to bankruptcy (unless, in the case of a petition filed against Tenant,
the same is dismissed within thirty (30) days); the appointment of a trustee or
receiver to take possession of substantially all of Tenant's assets located at
the Premises or of Tenant's interest in this Lease, where possession is not
restored to Tenant within thirty (30) days; or the attachment, execution or
other judicial seizure of substantially all of Tenant's assets located at the
Premises or of Tenant's interest in this Lease where such seizure is not
discharged within thirty (30) days.
*
b. In the event of any such default by ▇▇▇▇▇▇, in addition to any other remedies
available to Landlord at law or in equity, Landlord shall have the immediate
option to terminate this Lease and all rights of Tenant hereunder. In the event
that Landlord shall elect to so terminate this Lease then Landlord may recover
from Tenant:
(1) The worth at the time of award of any unpaid rent which had been
earned at the time of such termination; plus
(2) the worth at the time of award of the amount by which the unpaid
rent which would have been earned after termination until the time of award
exceeds the amount of such rental loss that Tenant proves could have been
reasonable avoided, plus
(3) the worth at the time of award of the amount by which the unpaid
rent for the balance of the term after the time of award exceeds the amount of
such rental loss that Tenant proves could be reasonably avoided; plus
(4) any other amount necessary to compensate Landlord for all the
detriment proximately caused by ▇▇▇▇▇▇'s failure to perform Tenant's obligations
under this Lease or which in the ordinary course of things would be likely to
result therefrom.
As used in Subparagraphs 25b (1) and (2) above, the "worth at the time of
award" is computed by allowing interest at the maximum rate permitted by law. As
used in Subparagraph 25b (3) above, the "worth at the time of award" is computed
by discounting such amount at the discount rate of the Federal Reserve Bank of
San Francisco at the time of award plus one percent (1%).
c. In the event of any such default by Tenant, Landlord shall also have the
right, with or without terminating this Lease to re-enter the Premises and
remove all persons and property from the Premises; such property may be removed
and stored in a public warehouse or elsewhere at the cost of and for the account
of Tenant. No re-entry or taking possession of the Premises by Landlord pursuant
to this paragraph 25c shall be construed as an election to terminate this Lease
unless a written notice of such intention is given to Tenant or unless the
termination thereof is decreed by a court of competent jurisdiction.
d. In the event of the ------------- abandonment of the Premises by Tenant or
in the event that Landlord shall elect to re-enter as provided above or shall
take possession of the Premises pursuant to legal proceeding or pursuant to any
notice provided by law, then if Landlord does not elect to terminate this Lease
as provided above, Landlord may from time to time, without terminating this
Lease, either recover all rent as it becomes due or relet the Premises or any
part thereof for the term for this Lease on terms and conditions as Landlord in
its sole discretion may deem advisable with the right to make alterations and
repairs to the Premises.
In the event that Landlord shall elect to so relet, then rentals received by
Landlord from such relenting shall be applied: first, to the payment of any
indebtedness other than rent due hereunder from Tenant to Landlord; second, to
the payment of any cost of such reletting; third, to the payment of the cost of
any alterations and repairs to the Premises, fourth, to the payment of rent due
and unpaid hereunder and the residue, if any, shall be held by Landlord and
applied to payment of future rent as the same may become due and payable
hereunder. Should that portion of such rentals received from such reletting
during any month, which is applied to the payment of rent hereunder, be less
than the rent payable during that month by Tenant hereunder then Tenant
* (5) A default by Tenant under the lease of even date herewith with
Landlord for Suite 400.
9
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shall pay such deficiency to Landlord immediately upon demand therefore by
Landlord. Such deficiency shall be calculated and paid monthly. Tenant shall
also pay to Landlord, as soon as ascertained, any costs and expenses incurred,
including but not limited to brokers' commissions, by Landlord in such reletting
or in making such alterations and repairs not covered by the rentals received
from such reletting.
e. All rights, options and remedies of Landlord contained in this Lease shall be
construed and held to be cumulative, and no one of them shall be exclusive of
the other, and Landlord shall have the right to pursue any one or all of such
remedies or any other remedy or relief which may be provided by law, whether or
not stated in this Lease. No waiver of any default of Tenant hereunder shall be
implied from any acceptance by Landlord of any rent or other payments due
hereunder or any omission by Landlord to take any action on account of such
default if such default persists or is repeated, and no express waiver shall
affect defaults other than as specified in said waiver. The consent or approval
of Landlord to or of any act by Tenant requiring Landlord's consent or approval
shall not be deemed to waive or render unnecessary Landlord's consent to or
approval of any subsequent similar acts by ▇▇▇▇▇▇.
26. ASSIGNMENT AND SUBLETTING.
a. Tenant shall not voluntarily assign or encumber its interest in this Lease or
in the Premises or sublease all or any part of the Premises, or allow any other
person or entity to occupy or use all or any part of the Premises, without first
obtaining Landlord's prior written consent which shall not be unreasonably
withheld or delayed. Any assignment, encumbrance or sublease without Landlord's
prior written consent shall be voidable at Landlord's election and shall
constitute a default. ----------------- No consent to an assignment, encumbrance
or sublease shall constitute a further waiver of the provisions of this
Paragraph. Tenant shall notify Landlord in writing of ▇▇▇▇▇▇'s intent to assign,
encumber or sublease this Lease, the name of the proposed assignee or sublessee,
information concerning the financial responsibility of the proposed assignee or
sublessee and the terms of the proposed assignment or subletting, and Landlord
shall, within thirty (30) days of receipt of such written notice, and additional
information requested by ▇▇▇▇▇▇▇▇ concerning the proposed assignee's or
sublessee's financial responsibility, elect one of the following: (1) consent to
such proposed assignment, encumbrance or sublease; or (2) refuse such consent,
which refusal shall be on reasonable grounds; ---------------- In addition, a
condition to Landlord's consent to any assignment, transfer or hypothecation of
this Lease shall be the delivery to Landlord of a true copy of the fully
executed instrument of assignment, transfer or hypothecation, and the delivery
to Landlord of an agreement executed by the assignee in form and substance
satisfactory to Landlord and expressly enforceable by Landlord, whereby the
assignee assumes and agrees to be bound by all of the terms and provisions of
this Lease and to perform all of the obligations of Tenant hereunder.
b. As a condition to Landlord's consent to any sublease, such sublease shall
provide that it is subject and subordinate to this Lease and to all mortgages;
that Landlord may enforce the provisions of the sublease, including collection
of rent; that in the event of termination of this Lease for any reason,
including without limitation a voluntary surrender by ▇▇▇▇▇▇, or in the event of
any reentry or repossession of the Premises by Landlord, Landlord may, at its
option, either (1) terminate the sublease or (2) take over all of the right,
title and interest of Tenant, as sublessor, under such sublease, in which case
such sublessee shall attorn to Landlord, but that nevertheless Landlord shall
not (1) be liable for any previous act or omission of Tenant under such
sublease, (2) be subject to any defense or offset previously accrued in favor of
the sublessee against Tenant, or (3) be bound by any previous modification of
any sublease made without ▇▇▇▇▇▇▇▇'s written consent, or by any previous
prepayment by sublessee of more than one month's rent.
c. In the event that Landlord shall consent to an assignment or sublease under
the provisions of this Paragraph 26, Tenant shall pay Landlord's processing
costs and attorneys' fees incurred in giving such consent. If Landlord shall
consent to any assignment of this Lease, Tenant shall pay to Landlord, as
additional rent, * ------------- of all sums and other considerations payable to
and for the benefit of Tenant by the assignee on account of the assignment, as
and when such sums and other consideration ** are due and payable by the
assignee to or for the benefit of Tenant (or, if Landlord so requires, and
without any release of Tenant's liability for the same, Tenant shall instruct
the assignee to pay such sums and other consideration directly to Landlord). If
for any proposed sublease Tenant receives rent or other consideration, either
initially or over the term of the sublease, in excess of the rent called for
hereunder or, in case of the sublease of a portion of the Premises, in excess of
such rent fairly allocable to such portion, after appropriate adjustments to
assure that all other payments called for hereunder are taken into account.
Tenant shall pay to Landlord as additional rent hereunder * -------------- of
the excess of each such payment of rent or other consideration received by
Tenant** promptly after its receipt, ▇▇▇▇▇▇▇▇'s waiver or consent to any
assignment or subletting shall not relieve Tenant or any assignee or sublessee
from any obligation under this Lease whether or not accrued. Occupancy of all or
part of the Premises by parent or subsidiary companies of Tenant not be deemed
an assignment or subletting.
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*one-half (112)
27. SUBORDINATION.
***
a. Without the necessity of any additional document being executed by Tenant for
the purpose of effecting a subordination, and at the election of Landlord or any
mortgagee with a lien on the building or any ground lessor with respect to the
building, this Lease shall be subject and subordinate at all times to:
(1) all ground leases or underlying leases which may now exist or hereafter
be executed affecting the building or the land upon which the building is
situated or both; and
(2) the lien of any mortgage or deed of trust which may now exist or
hereafter be executed in any amount for which the building, land, ground leases
or underlying leases, or Landlord's interest or estate in any of said items is
specified as security.
***
b. Notwithstanding the foregoing, Landlord shall have the right to subordinate
or cause to be subordinated any such ground leases or underlying leases or any
such liens to this Lease. In the event that any ground lease or underlying lease
terminates
** after ▇▇▇▇▇▇'s recovery of reasonable, actual, out-of-pocket expenses in
connection with such assignment or sublease (including, without limitation, a
subtenant improvement allowance) and other monetary concessions
*** Subject to Addendum 1, Item 2,
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for any reason or any mortgage or deed of trust is foreclosed or a conveyance in
lieu of foreclosure is made for any reason, Tenant shall, notwithstanding any
subordination, attorn to and become the Tenant of the successor in interest to
▇▇▇▇▇▇▇▇, at the option of such successor in interest. Tenant covenants and
agrees to execute and deliver, upon demand by ▇▇▇▇▇▇▇▇ and in the form requested
by Landlord, any additional documents evidencing the priority of subordination
of this Lease with respect to any such ground leases or underlying leases or the
lien of any such mortgage or deed of trust. Should Tenant fail to sign and
return any such documents within ten (10) business days of request Tenant shall
be in default, and Landlord may, at Landlord's option, terminate the Lease
provided written notice of such termination is received by Tenant prior to
Landlord's receipt of such documents. Tenant hereby irrevocably appoints
Landlord as attorney-in-fact of Tenant to execute, deliver and record any such
document in the name and on behalf of ▇▇▇▇▇▇.
28. ESTOPPEL CERTIFICATE.
a. Within ten (10) days following any written request which Landlord may make
from time to time, Tenant shall execute and deliver to Landlord a statement, in
a form substantially similar to the form of Exhibit "E", certifying: (1) the
date of commencement of this Lease; (2) the fact that this Lease is unmodified
and in full force and effect (or, if there have been modifications hereto, that
this Lease is in full force and effect, and stating the date and nature of such
modifications); (3) the date to which the rental and other sums payable under
this Lease have been paid; (4) that there are no current defaults under this
Lease by either Landlord or Tenant except as specified in Tenant's statement;
and (5) such other matters requested by Landlord. Landlord and ▇▇▇▇▇▇ intend
that any statement delivered pursuant to this Paragraph 28 may be relied upon by
any mortgagee, beneficiary, purchaser or prospective purchaser of the Building
or any interest therein.
b. Tenant's failure to deliver such statement within such time shall be
conclusive upon Tenant (1) that this Lease is in full force and effect, without
modification except as may be represented by Landlord, (2) that there are no
uncured defaults in Landlord's performance, and (3) that not more than one (1)
month's rental has been paid in advance. ▇▇▇▇▇▇'s failure to deliver said
statement to Landlord within ten (10) working days of receipt shall constitute a
default under this Lease and Landlord may, at Landlord's option, terminate the
Lease, provided written notice of such termination is received by Tenant prior
to ▇▇▇▇▇▇▇▇'s receipt of said statement.
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30. RULES AND REGULATIONS.
Tenant shall faithfully observe and comply with the "Rules and
Regulations", a copy of which is attached hereto and marked Exhibit "F", and all
reasonable and nondiscriminatory modifications thereof and additions thereto
from time to time put into effect by Landlord. Landlord shall not be responsible
to Tenant for the violation or non-performance by any other tenant or occupant
of the building or Project of any of said Rules and Regulations.
31. CONFLICT OF LAWS.
This Lease shall be governed by and construed pursuant to the laws of the
state in which the premises are located.
32. SUCCESSORS AND ASSIGNS.
Except as otherwise provided in this Lease, all of the covenants,
conditions and provisions 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.
33. SURRENDER OF PREMISES.
The voluntary or other surrender of this Lease by ▇▇▇▇▇▇, or a mutual
cancellation thereof, shall not work a merger, and shall, at the option of
Landlord, operate as an assignment to it of any or all subleases or
subtenancies. Upon the expiration or termination of this Lease, Tenant shall
peaceably surrender the Premises and all alterations and additions thereto,
broom clean the Premises, leave the Premises in good order, repair and
condition, reasonable wear and tear excepted, and comply with the provisions of
Paragraph 15. The delivery of keys to any employee of Landlord or to Landlord's
agent or any employee thereof shall not be sufficient to constitute a
termination of this Lease or a surrender of the Premises.
34. PROFESSIONAL FEES.
a. If Landlord should bring suit for possession of the Premises, for the
recovery of any sum due under this Lease, or because of the breach of any
provisions of this Lease, or for any other relief against Tenant hereunder, or
in the event of any other litigation or appeal between the parties with respect
to this lease, then all costs and expenses, including without limitation, its
actual professional fees such as appraisers', accountants' and 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. If Landlord employs a collection agency to
recover delinquent charges, ▇▇▇▇▇▇ agrees to pay all collection agency fees
charged to Landlord in addition to rent, late charges, interest and other sums
payable under this Lease. Tenant shall pay a charge of $75 to Landlord for
preparation of a demand for delinquent rent.
b. If Landlord is named as a defendant in any suit or appeal brought against
Tenant in connection with or arising out of ▇▇▇▇▇▇'s occupancy hereunder, Tenant
shall pay to Landlord its costs and expenses incurred in such suit, including
without limitation, its actual professional fees such as appraisers',
accountants' and attorneys' fees.
35. PERFORMANCE BY TENANT.
All covenants and agreements to be performed by Tenant under any of the
terms of this Lease shall be performed by Tenant at Tenant's sole cost and
expense and without any abatement of rent. If Tenant shall fail to pay any sum
of money owed to any party other than Landlord, for which it is liable
hereunder, or if Tenant 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 waiving or releasing Tenant
from obligations of Tenant, but shall not be obligated to, making any such
payment or perform any such other act to be made or performed by Tenant. All
sums so paid by ▇▇▇▇▇▇▇▇ and all necessary incidental costs together with
interest thereon at the maximum rate permissible by law, from the date of such
payment by Landlord, shall be payable to Landlord on demand. Tenant covenants to
pay any such sums, and Landlord shall have (in addition to any other right or
remedy of Landlord) all rights and remedies in the event of the non-payment
thereof by ▇▇▇▇▇▇ as are set forth in Paragraph 25.
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36. MORTGAGEE 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
mortgage covering the Premises whose address shall have been furnished to
Tenant, and shall offer such beneficiary or mortgagee a reasonable opportunity
to cure the default, including time to obtain possession of the Premises by
power of sale or a judicial foreclosure, if such should prove necessary to
effect a cure.
37. DEFINITION OF LANDLORD.
The term "Landlord," as used in this Lease, so far as covenants or
obligations on the part of Landlord are concerned, shall be limited to mean and
include only the owner or owners, at the time in question, of the fee title of
the Premises or the lessees under any ground lease, if any. In the event of any
transfer, assignment or other conveyance or transfers of any such title,
Landlord herein named (and in case of any subsequent transfers or conveyances,
the then grantor) shall be automatically freed and relieved from and after the
date of such transfer, assignment or conveyance of all liability as respects the
performance of any covenants or obligations on the part of Landlord contained in
this Lease thereafter to be performed. Without further agreement, the transferee
of such title shall be deemed to have assumed and agreed to observe and perform
any and all obligations of Landlord hereunder, during its ownership of the
Premises. Landlord may transfer its interest in the Premises without the consent
of Tenant and such transfer or subsequent transfer shall not be deemed a
violation on Landlord's part of any of the terms and conditions of this Lease.
38. WAIVER.
The waiver by Landlord of any breach of any term, covenant or condition
herein contained shall not be deemed to be a waiver of any subsequent breach of
the same or any other term, covenant or condition 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 right of Landlord to insist upon the performance by Tenant in strict
accordance with said terms. The subsequent acceptance of rent hereunder by
Landlord shall not be deemed to be a waiver of any preceding breach by Tenant of
any term, covenant or condition of this Lease, other than the failure of Tenant
to pay the particular rent so accepted, regardless of Landlord's knowledge of
such preceding breach at the time of acceptance of such rent. No acceptance by
Landlord of a lesser sum than the basic rental and additional rent or other sum
then due shall be deemed to be other than on account of the earliest installment
of such rent or other amount due, nor shall any endorsement or statement on any
check or any letter accompanying any check be deemed an accord and satisfaction,
and Landlord may accept such check or payment without prejudice to Landlord's
right to recover the balance of such installment or other amount or pursue any
other remedy in this Lease provided.
39. IDENTIFICATION OF TENANT.
If more than one person executes this lease as Tenant, (1) each of them is
jointly and severally liable for the keeping, observing and performing of all of
the terms, covenants, conditions, provisions and agreements of this Lease to be
kept, observed and performed by ▇▇▇▇▇▇, and (2) the term "Tenant" as used in
this Lease shall mean and include each of them jointly and severally. The act of
or notice from, or notice or refund to, or the signature of any one or more of
them, with respect to the tenancy of this Lease, including, but not limited to,
any renewal, extension, expiration, termination or modification of this Lease,
shall be binding upon each and all of the persons executing this Lease as Tenant
with the same force and effect as if each and all of them had so acted or so
given or received such notice or refund or so signed.
40. PARKING.
a. Tenant shall have the right to use the type and number of spaces indicated
in Section 1. All such spaces shall be provided to the tenant at no cost.
b. The use by Tenant, its employees and invitees, of the parking facilities of
the Project shall be on the terms and conditions set forth in Exhibit G attached
hereto and by this reference incorporated herein, and shall be subject to such
other agreement between Landlord and Tenant as may hereinafter be established.
Tenant shall not permit or allow any vehicles that belong to or are controlled
by Tenant or Tenant's employees suppliers, shippers, customers or invitees to be
loaded, unloaded or parked in areas other than those designated by Landlord for
such activities. If Tenant permits or allows any of the prohibited activities
described in Exhibit G, then Landlord shall have the right, without notice, in
addition to such other rights and remedies that it may have, to remove or tow
away the vehicle involved and charge the cost to Tenant, which cost shall be
immediately payable upon demand by Landlord.
41. FORCE MAJEURE.
Except as applied to Paragraph 23, Landlord shall have no liability whatsoever
to Tenant on account of (1) the inability of Landlord to fulfill, or delay in
fulfilling, any of Landlord's obligations under this Lease by reason of strike,
other labor trouble, governmental preemption of priorities or other controls in
connection with a national or other public emergency, or shortages of fuel,
supplies or labor resulting therefrom or any other cause, whether similar or
dissimilar to the above, beyond Landlord's reasonable control; or (2) any
failure or defect in the supply, quantity or character of electricity or water
furnished to the Premises, by reason of any requirement, act or omission of the
public utility or others furnishing the Project with electricity or water, or
for any other reason, whether similar or dissimilar to the above, beyond
Landlord's reasonable control. If this Lease specifies a time period for
performance of an obligation of Landlord, that time period shall be extended by
the period of any delay in Landlord's performance caused by any of the events of
force majeure described above.
42. TERMS AND HEADINGS.
The words "Landlord" and "Tenant" as used herein shall include the plural
as well as the singular. Words used in any gender include other genders. The
paragraph headings of this Lease are not a part of this Lease and shall have no
effect upon the construction or interpretation of any part hereof.
43. EXAMINATION OF LEASE.
Submission of this instrument for examination or signature by ▇▇▇▇▇▇ 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.
44. TIME.
Time is of the essence with respect to the performance of every provision
of this Lease in which time of performance is a factor.
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45. PRIOR AGREEMENT OR AMENDMENTS.
This Lease contains all of the agreements of the parties hereto with
respect to any matter covered or mentioned in the Lease, and no prior agreement
or understanding pertaining to any such matter shall be effective for any
purpose. No provisions 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.
46. SEPARABILITY.
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 provisions shall remain in full force and effect.
47. RECORDING.
Neither Landlord nor Tenant shall record this Lease nor a short form
memorandum thereof without the consent of the other.
48. LIMITATION ON LIABILITY.
In consideration of the benefits accruing hereunder, ▇▇▇▇▇▇ and all
successors and assigns covenant and agree that, in the event of any actual or
alleged failure, breach or default hereunder by ▇▇▇▇▇▇▇▇:
(1) The sole and exclusive remedy shall be against the Landlord's interest
in the Project;
(2) No partner of Landlord shall be sued or named as a party in any suit or
action (except as may be necessary to secure jurisdiction of the partnership);
(3) No service of process shall be made against any partner of Landlord
(except as may be necessary to secure jurisdiction of the partnership);
(4) No partner of Landlord shall be required to answer or otherwise plead
to any service of process;
(5) No judgment will be taken against any partner of Landlord;
(6) Any judgment taken against any partner of Landlord may be vacated and
set aside at any time nunc pro tunc;
(7) No writ of execution will ever be levied against the assets of any
partner of Landlord;
(8) The obligations of Landlord under this Lease do not constitute personal
obligations of the individual partners, directors, officers or shareholders of
Landlord, and Tenant shall not seek recourse against the individual partners,
directors, officers or shareholders of Landlord or any of their personal assets
for satisfaction of any liability in respect to this Lease;
(9) These covenants and agreements are enforceable both by Landlord and
also by any partner of Landlord.
49. MODIFICATION FOR LENDER.
If, in connection with obtaining construction, interim or permanent
financing for the Project the lender shall request reasonable modifications in
this Lease as a condition to such financing, Tenant will not unreasonably
withhold, delay or defer its consent thereto, provided that such modifications
do not increase the obligations of Tenant hereunder or materially adversely
affect the leasehold interest hereby created or ▇▇▇▇▇▇'s rights hereunder.
50. FINANCIAL STATEMENTS.
At any time during the term of this Lease, Tenant shall upon ten (10) days
prior written notice from Landlord, provide Landlord with a current financial
statement and financial statements of the two (2) years prior to the current
financial statement year. Such statement shall be prepared in accordance with
generally accepted accounting principles and, if such is the normal practice of
Tenant, shall be audited by an independent certified public accountant.
51. QUIET ENJOYMENT.
Landlord covenants and agrees with Tenant that upon Tenant paying the rent
required under this lease and paying all other charges and performing all of the
covenants and provisions aforesaid on Tenant's part to be observed and performed
under this Lease, Tenant shall and may peaceably and quietly have, hold and
enjoy the Premises in accordance with this Lease.
52. TENANT AS CORPORATION.
If Tenant executes this Lease as a corporation, then Tenant and the persons
executing this Lease on behalf of Tenant represent and warrant that the
individuals executing this Lease on Tenant's behalf are duly authorized to
execute and deliver this Lease on its behalf in accordance with a duly adopted
resolution of the board of directors of Tenant, a copy of which is to be
delivered to landlord on execution hereof, and in accordance with the bylaws of
Tenant and that this Lease is binding upon Tenant in accordance with its terms.
IN WITNESS WHEREOF, the parties have executed this Lease as of the date
first above written.
LANDLORD: WEYERHAEUSER MORTGAGE COMPANY, ADDRESS: Weyerhaeuser Mortgage
a California corporation and Company
FORT ▇▇▇▇▇, INC., a Michigan corporation, ▇▇▇▇ ▇▇▇▇▇▇ ▇▇▇▇▇▇
▇▇▇▇▇▇▇ ▇▇ ▇▇▇▇▇▇ ▇▇▇▇▇▇▇▇ ▇▇▇▇▇, ▇▇ ▇▇▇▇▇
By: WEYERHAEUSER MORTGAGE COMPANY, ADDRESS: ▇▇▇▇▇ ▇▇▇▇ ▇▇▇▇▇ ▇▇▇▇▇,
▇▇▇▇▇▇▇▇ ▇▇▇▇▇▇ ▇▇ ▇▇▇▇▇▇ ▇▇▇▇▇ ▇▇▇
▇▇▇ ▇▇▇▇▇, ▇▇ ▇▇▇▇▇
By: /s/ ▇▇▇▇▇▇▇ ▇▇▇▇▇▇
------------------------------
▇▇▇▇▇▇▇ ▇▇▇▇▇▇, Vice President
TENANT: STAC ELECTRONICS,
a California corporation
By: [UNSCANNABLE]
15
WORK LETTER AGREEMENT
This Work Letter Agreement, is entered into as of the 28th day of January,
1994, by and between Weyerhaeuser Mortgage Company, * ("Landlord") and STAC
Electronics, a California corporation ("Tenant").
* a California corporation, and Fort ▇▇▇▇▇, Inc., a Michigan corporation,
tenants in common
RECITALS:
A. Concurrently with the execution of this Work Letter Agreement, Landlord
and Tenant have entered into a lease (the "Lease") covering certain premises
(the "Premises") more particularly described in Exhibit "A" attached to the
Lease.
B. In order to induce Tenant to enter into the Lease (which is hereby
incorporated by reference to the extent that the provisions of this Work Letter
Agreement may apply thereto) and in consideration of the mutual covenants
hereinafter contained, Landlord and Tenant hereby agree as follows:
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2. TENANT IMPROVEMENTS
Reference herein to "Tenant Improvements" shall include all work to be done
in the Premises pursuant to the Tenant Improvement Plans described in Paragraph
3 below, including, but not limited to, partitioning, doors, ceilings, floor
coverings, wall finishes (including paint and wallcovering), electrical
(including lighting, switching, telephones, outlets, etc.), plumbing, heating,
ventilating and air conditioning, fire protection, cabinets and other millwork.
Whenever Landlord's consent is required in this Work Letter Agreement it shall
not be unreasonably withheld or delayed.
3. TENANT IMPROVEMENT PLANS.
Immediately after the execution of the Lease, ▇▇▇▇▇▇ agrees to meet with
its architect and/or space planner for the purpose of preparing a space plan for
the layout of the Premises. Based upon such space plan, ▇▇▇▇▇▇'s architect shall
prepare final working drawings and specifications for the Tenant Improvements.
Such final working drawings and specifications may be referred to herein as the
"Tenant Improvement Plans." The Tenant Improvement Plans must be consistent with
Landlord's standard specifications (the "Standards") for tenant improvements for
the Building, as the same may be changed from time to time by Landlord.
4. NON-STANDARD TENANT IMPROVEMENTS.
Landlord shall permit Tenant to deviate from the Standards for the Tenant
Improvements; provided that (a) the deviations shall not be of a lesser quality
than the Standards; (b) the total lighting for the Premises shall not exceed
1.65 ▇▇▇▇▇ per rentable square foot; (c) the deviations conform to applicable
governmental regulations and necessary governmental permits and approvals have
been secured; (d) the deviations do not require building service beyond the
level normally provided to other tenants in the Building and do not overload the
floors; and (e) Landlord has determined in its sole discretion that the
deviations are of a nature and quality that are consistent with the overall
objectives of the Landlord for the Building.
5. FINAL PRICING AND DRAWING SCHEDULE.
After the preparation of the space plan and after ▇▇▇▇▇▇▇▇'s written
approval thereof, Tenant shall cause its architect to prepare and submit to
Landlord the final working drawings and specifications referred to in Paragraph
3 hereof. Such working drawings shall be approved by ▇▇▇▇▇▇▇▇ and Tenant and
------------- shall thereafter be submitted to the appropriate governmental body
by ▇▇▇▇▇▇'s architect for plan checking and the issuance of a building permit.
Tenant ------------ shall cause to be made any changes in the plans and
specifications necessary to obtain the building permit. Concurrent with the plan
checking, Tenant shall have prepared a final pricing for Tenant's approval,
----------- taking into account any modifications which may be required to
reflect changes in the plans and specifications required by the City or County
in which the Premises are located. After final approval of the working drawings,
no further changes to the Tenant Improvement Plans may be made without the prior
written approval from both Landlord and Tenant, such approval by Landlord not to
be unreasonably withheld, and then only after agreement by Tenant to pay any
excess costs resulting from the design and/or construction of such changes.
Tenant hereby acknowledges that any such changes shall be subject to the terms
of Paragraph 8 hereof.
6. CONSTRUCTION OF TENANT IMPROVEMENTS.
After the Tenant Improvement Plans have been prepared and approved, the
final pricing has been approved and a building permit for the Tenant
Improvements has been issued, Tenant shall enter into a construction contract
with its contractor for the installation of the Tenant Improvements in
accordance with the Tenant Improvement Plans. Landlord shall supervise the
completion of such work at no cost to Tenant. The cost of such work shall be
paid as provided in Paragraph 7 hereof. Landlord shall not be liable for any
direct or indirect damages as a result of delays in construction beyond
Landlord's reasonable control, including, but not limited to, acts of God,
inability to secure governmental approvals or permits, governmental
restrictions, strikes, availability of materials or labor or delays by Tenant
(or its architect or anyone performing services on behalf of Tenant).
7. PAYMENT OF COST OF THE TENANT IMPROVEMENTS.
a. Landlord hereby grants to Tenant a "Tenant Allowance" of Zero and
No/100------ Dollars ($-0-) per square foot of Usable Area (as defined below) of
the Premises for a total of Zero and No/100------ Dollars ($-0-). Such Tenant
Allowance shall be used only for:
(1) Payment of the cost of preparing the space plan and the final working
drawings and specifications, including mechanical, electrical, plumbing and
structural drawings and of all other aspects of the Tenant Improvement Plans.
The Tenant Allowance will not be used for the payment of extraordinary design
work not included within the scope of Landlord's building standard improvements
or for payments to any other consultants, designers or architects other than
▇▇▇▇▇▇▇▇'s architect and/or space planner.
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(2) The payment of plan check, permit and license fees relating to
construction of the Tenant Improvements.
(3) Construction of the Tenant Improvements, including, without
limitation, the following:
(a) Installation within the Premises of all partitioning, doors,
floor coverings, ceilings, wall coverings and painting, millwork and similar
items.
(b) All electrical wiring, lighting fixtures, outlets and
switches, and other electrical work to be installed within the Premises.
(c) The furnishing and installation of all duct work, terminal
boxes, diffusers and accessories required for the completion of the heating,
ventilation and air conditioning systems within the Premises, including the cost
of meter and key control for after-hour air conditioning.
(d) Any additional Tenant requirements including, but not limited
to, odor control, special heating, ventilation and air conditioning, noise or
vibration control or other special systems.
(e) All fire and life safety control systems such as fire walls,
sprinklers, halon, fire alarms, including piping, wiring and accessories
installed within the Premises.
(f) All plumbing, fixtures, pipes and accessories to be installed
within the Premises.
(g) Testing and inspection costs.
(h) Contractor's fees, including but not limited to any fees
based on general conditions.
(4) All other costs to be expended by Landlord in the construction of
the Tenant Improvements, including those costs incurred by Landlord for
construction of elements of the Tenant Improvements in the Premises, which
construction was performed by Landlord prior to the execution of this Lease by
Landlord and Tenant (i.e., during or after the construction of the base
Building) and which construction is for the benefit of tenants and is
customarily performed by Landlord prior to the execution of leases for such
space in the Building for reasons of economics (examples of such construction
would include the extension of mechanical [including heating, ventilating and
air conditioning systems] and electrical distribution systems outside of the
core of the Building, wall construction, column enclosures and painting outside
of the core of the Building, ceiling hanger wires and window treatment).
b. The cost of each item shall be charged against the Tenant Allowance. In the
event that the cost of installing the Tenant Improvements, as established by
▇▇▇▇▇▇▇▇'s final pricing schedule, shall exceed the Tenant Allowance, or if any
of the Tenant Improvements are not to be paid out of the Tenant Allowance as
provided in Paragraph 7a above, the excess shall be paid by Tenant to Landlord
prior to the commencement of construction of the Tenant Improvements.
c. In the event that, after the Tenant Improvement Plans have been prepared and
a price therefore established by Landlord, Tenant shall require any changes or
substitutions to the Tenant Improvement Plans, any additional costs thereof
shall be paid by Tenant to Landlord prior to the commencement of such work.
Landlord shall have the right to decline ▇▇▇▇▇▇'s request for a change to the
Tenant Improvement Plans if such changes are inconsistent with Paragraphs 3 and
4 above, or if the change would, in Landlord's opinion, unreasonably delay
construction of the Tenant Improvements.
d. In the event that the cost of the Tenant Improvements increases as set forth
in Landlord's final pricing due to the requirements of any governmental agency,
Tenant shall pay Landlord the amount of such increase within five (5) days of
Landlord's written notice; provided, however, that Landlord shall first apply
toward such increase any remaining balance in the Tenant Allowance.
e. Any unused portion of the Tenant Allowance upon completion of the Tenant
Improvements shall not be refunded to Tenant or available to Tenant as a credit
against any obligations of Tenant under the Lease.
f. As used in this Work Letter Agreement, the term "Usable Area" means the area
of the Premises, as determined by measuring the area within the bounds of the
inside surface of the glass in the outer wall of the Building and the surface
facing the Premises of all partitions separating the Premises from the Building
core, adjoining tenant space and public corridors or other common areas. No
deductions shall be made for space occupied by structural or functional
columns or other projections. The Usable Area of the Premises is 11,911 usable
square feet.
8. COMPLETION AND RENTAL COMMENCEMENT DATE.
The commencement of the term of the Lease and ▇▇▇▇▇▇'s obligation for the
payment of rental under the Lease shall commence at the time provided in
Section 1.g. of the Lease.
IN WITNESS WHEREOF, this Work Letter Agreement is executed as of the date
first above written.
LANDLORD: WEYERHAEUSER MORTGAGE COMPANY,
a California corporation and
FORT ▇▇▇▇▇, INC., a Michigan corporation,
tenants in common
By: WEYERHAEUSER MORTGAGE COMPANY,
managing tenant in common
By: /s/ ▇▇▇▇▇▇▇ ▇▇▇▇▇▇
----------------------------------
▇▇▇▇▇▇▇ ▇▇▇▇▇▇, Vice President
TENANT: STAC ELECTRONICS,
a California corporation
By: /s/ ▇▇▇▇ ▇▇▇▇▇▇
----------------------------------
▇▇▇▇ ▇▇▇▇▇▇, CFO
17
ADDENDUM "1"
1. Rent Abatement. Notwithstanding the provisions of Section 5 of this
Lease, no Base Monthly Rent shall be due or payable for the second (2nd) through
seventh (7th) full calendar months, inclusive, following the Commencement Date.
2. Non-Disturbance. Notwithstanding the provisions of Section 27, in the
event of a foreclosure of any mortgage or deed of trust or termination of any
ground lease, so long as Tenant attorns to the successor fee owner or ground
tenant, ▇▇▇▇▇▇'s quiet possession of the Premises will not be disturbed and its
rights and obligations under this Lease will not be altered.
3. Early Termination. Tenant shall have the right to terminate the Lease,
effective on March 31, 1998, by providing Landlord at least six (6) months'
prior written notice.
4. Building Signage. Tenant, at Tenant's expense, shall have the right to
place its name and/or logo on one (1) side of the exterior of the Building in a
location to be selected by Tenant, subject to approval by Landlord (not to be
unreasonably withheld or delayed provided such signage complies with the signage
criteria contained in the CC&R's affecting the Project) and all governmental
agencies. This sign is in addition to the signage provided in the lease for
▇▇▇▇▇ ▇▇▇▇ ▇▇▇▇▇ ▇▇▇▇▇, ▇▇▇▇▇ ▇▇▇.
5. Hazardous Materials. The following provisions are added to Exhibit H
(Hazardous Materials): (i) Landlord's consent under clause (b) of Exhibit H
shall not be required for (1) Hazardous Materials, in reasonable quantities,
customarily used in business offices, and (2) Hazardous Materials used in
reasonable quantities in connection with the construction of repair of
Improvements in the Premises, provided such Hazardous Materials are used and
handled in accordance with all applicable laws. In addition, Landlord will not
unreasonably withhold or delay its consent required under said clause (b) of
Exhibit H for any other Hazardous Materials reasonably needed by Tenant in the
ordinary course of Tenant's business, provided such Hazardous Materials are used
and handled in accordance with all applicable laws.
(ii) Landlord warrants to its actual knowledge Tenant that neither the
Premises nor any other part of the Building in which the Premises are located
contain any asbestos. ▇▇▇▇▇▇▇▇ also agrees that Tenant shall have no
responsibility for any Hazardous Materials on or under the Premises, the
Building, or the Project existing at the time of commencement of the Lease, or
any such Hazardous Materials thereafter released on or under the Project by
anyone other than Tenant, its employees or agents.
18
6. Building Codes: ADA. Any work that is required by applicable law now or
hereafter in effect to be done within the Premises (excluding structural
components (except to the extent caused by Tenant) and restrooms, elevators, and
other common areas) shall be the sole responsibility of Tenant. Except as
provided in the preceding sentence, and notwithstanding any other provision of
this Lease, Tenant shall have no responsibility to make or pay for improvements
or other alterations to the Building to correct deficiencies under existing
building codes or other applicable laws, restrictions or requirements, or to
comply with future changes in building codes or other applicable laws,
restrictions or requirements. Without limiting the foregoing, in the event that
any improvements or alterations to the Building are required during the term of
the Lease to comply with requirements of the Americans With Disabilities Act or
applicable building codes relating to access to or within the Building (except
for the Premises) by disabled persons, Landlord will be solely responsible for
any such improvements or alterations.
7. Security. With Landlord's prior written approval, not to be unreasonably
withheld or delayed, Tenant at its cost and expense and not as part of the costs
described in Addendum "5" may install additional reasonable security devices for
the Premises.
8. Damage or Destruction. The following is inserted into the Lease as
Paragraph 23:
23. DAMAGE OR DESTRUCTION
If the Premises or any Common Areas providing access thereto shall be
damaged by fire or other casualty, Landlord shall restore the same subject to
the terms and conditions set forth in this Paragraph 23 . Such restoration shall
be to substantially the condition prior to the casualty, except for
modifications required by zoning and building codes and other laws or by any
mortgagee, any other modifications to the Common Areas deemed desirable by
Landlord (provided access to the Premises is not materially impaired), and
except that Landlord shall not be required to repair or replace any of Tenant's
furniture, furnishings, fixtures or equipment, or any alterations or
improvements in excess of Tenant's improvements installed at a cost of up to $30
per usable square foot. Landlord shall not be liable for any inconvenience or
annoyance to Tenant or its visitors, or injury to Tenant's business resulting in
any way from such damage or the repair thereof. However, as ▇▇▇▇▇▇'s sole
compensation for such damage or destruction Landlord shall allow Tenant a
proportionate abatement of rent, during the time and to the extent the Premises
are unfit for occupancy for the purposes permitted under this Lease and not
occupied by Tenant as a result thereof (unless Tenant or its employees or agents
caused the damage). Notwithstanding the foregoing to the contrary, Landlord may
elect to terminate this Lease by notifying Tenant in writing of such termination
within
19
sixty (60) days after the date of damage (such termination notice to include a
termination date providing at least ninety (90) days for Tenant to vacate the
Premises) , if the Property shall be damaged by fire or other casualty or cause
such that: (a) repairs to the Premises and Building and access thereto cannot
reasonably be substantially completed within three hundred (300) days after the
date of casualty without the payment of overtime or other premiums; (b) more
than twenty-five percent (25%) of the Premises is substantially destroyed by the
damage and fewer than twenty-four (24) months remain in the Term, subject to
Tenant's right to avoid or limit such termination as set forth below; (c) the
cost of the repairs, alterations, restoration or improvement work would exceed
twenty-five percent (25%) of the replacement value of the Building and Landlord
determines in good faith not to repair or rebuild the Building in substantially
the same configuration as before the casualty; (d) the aggregate proceeds
available from insurance fall short of the reasonable cost of the restoration
required under this Paragraph 23 by an amount greater than $100,000 and Landlord
determines in good faith not to repair or rebuild the Building in substantially
the same configuration as before the casualty; or (e) as a result of the lawful
application of insurance proceeds by any mortgagee to retire the mortgage debt,
the insurance proceeds available for restoration fall short of the reasonable
cost of the restoration required under this Paragraph 23 by an amount greater
than $100,000 and Landlord determines in good faith not to repair or rebuild the
Building in substantially the same configuration as before the casualty. If
Landlord elects to terminate this Lease under the circumstances described in
Clause (b) of the preceding sentence, provided that the damage to the Property
was not caused by the willful misconduct or reckless disregard for life or
property of ▇▇▇▇▇▇, Tenant may, by written notice to Landlord, given within
thirty (30) days after receipt of Landlord's termination notice, avoid such
termination by exercising a then available option to extend the term of this
Lease upon the terms and conditions set forth in Addendum "3".
Further, notwithstanding the foregoing, Tenant may terminate this Lease if
Tenant is unable to use all or any portion of the Premises as a result of fire
or other casualty not caused by the willful misconduct or reckless disregard for
life or property of Tenant, and: (a) Landlord fails to commence restoration work
to the Building and access thereto within sixty (60) days after the damage
occurs (Landlord's negotiation with insurance companies and consultation with
architects, engineers and contractors shall be deemed to be restoration work);
or (b) Landlord fails to substantially complete such work within three hundred
sixty five (365) days after the date of the casualty, or such additional time as
may be necessary due to strikes, lockouts or other labor troubles, shortages of
equipment or materials, governmental requirements, power shortages or outages or
other causes beyond Landlord's reasonable control; or (c) such work is
reasonably estimated (which estimate Landlord shall provide within sixty (60)
20
days following the casualty), to take more than three hundred sixty five (365)
days to substantially complete after the date of the casualty. In addition,
Tenant may terminate this Lease if Tenant is unable to use more than twenty-five
percent (25%) of the Premises as a result of fire or other casualty not caused
by the willful misconduct or gross negligence of Tenant or its employees or
agents, and fewer than twenty-four (24) months remain in the Term. In order to
exercise any of the foregoing termination rights, Tenant must send Landlord at
least sixty (60) but not more than one hundred twenty (120) days advance notice
specifying the basis for termination, and such notice must be given no later
than thirty (30) days following the occurrence of the condition serving as the
basis for the termination right invoked by ▇▇▇▇▇▇. Such termination right shall
not be available to Tenant if Landlord substantially completes the repairs to
the Premises and access thereto within sixty (60) days after ▇▇▇▇▇▇'s notice.
Notwithstanding anything to the contrary contained herein, if Tenant, or its
officers, employees, contractors, invitees, partners, or agents delay Landlord
in performing the repairs, Landlord shall have additional time to complete the
work equal to such delay, and Tenant shall pay Landlord all Rent for the period
of such delay. If this Lease is terminated pursuant to this Paragraph 23, Tenant
shall have the right, to be exercised within 10 days of such termination, to
terminate any other lease it has for space within the Project.
Tenant agrees that ▇▇▇▇▇▇▇▇'s obligation to restore, and the abatement of
rent and the termination right provided herein, shall be Tenant's sole recourse
in the event of such damage, and waives any other rights Tenant may have under
any applicable Law to terminate the Lease by reason of damage to the Premises,
Project or Building, including all rights under California Civil Code, Sections
1932 (2) , 1933 (4) , and 1942, as the same may be modified or replaced
hereafter. Tenant acknowledges that this Paragraph 23 represents the entire
agreement between the parties respecting damage to the Premises, Project or
Building.
21
ADDENDUM "2"
OPERATING EXPENSES. For the purposes of this Section, the following
terms are defined as follows:
Base Year-The calendar year in which this Lease Term commences. For the
purposes of this Lease, the Base Year is defined as 1994.
Comparison Year-Each calendar year of the term after the Base Year.
Tenant's *------ Share of Operating Expenses shall be payable by Tenant to
Landlord as follows:
(a) Beginning with the calendar year following the Base Year and for
each calendar year thereafter ("Comparison Year"), Tenant shall pay Landlord an
amount equal to Tenant's *------ Share of the Operating Expenses incurred by
Landlord in the Comparison Year which exceeds the total amount of Operating
Expenses payable by Landlord for the Base Year. This excess is referred to as
the "Excess Expenses."
(b) To provide for current payments of Excess Expenses, Tenant shall,
at Landlord's, request, pay as additional rent during each Comparison Year, an
amount equal to Tenant's *------ Share of the Excess Expenses payable during
such Comparison Year, as estimated by Landlord from time to time. Such payments
shall be made in monthly installments, commencing on the first day of the month
following the month in which Landlord notifies Tenant of the amount it is to pay
hereunder and continuing until the first day of the month following the month in
which Landlord gives Tenant a new notice of estimated Excess Expenses. It is the
intention hereunder to estimate from time to time the amount of the Excess
Expenses for each Comparison Year and ▇▇▇▇▇▇'s *------ Share thereof, and then
to make an adjustment in the following year based on the actual Excess Expenses
incurred for that Comparison Year.
(c) On or before April 1 of each Comparison Year after the first
Comparison Year (or as soon thereafter as is practical), Landlord shall deliver
to Tenant a statement setting forth Tenant's *------ Share of the Excess
Expenses for the preceding Comparison Year. If ▇▇▇▇▇▇'s* Share of the actual
Excess Expenses for the previous Comparison Year exceeds the total of the
estimated monthly payments made by Tenant for such year, Tenant shall pay
Landlord the amount of the deficiency within thirty (30) days of the receipt of
the statement. If such total exceeds Tenant's *------ Share of the actual Excess
Expenses for such Comparison Year, then Landlord shall credit against ▇▇▇▇▇▇'s
next ensuing monthly installment(s) of additional rent an amount equal to the
difference until the credit is exhausted. If a credit is due from Landlord on
the Expiration Date, Landlord shall pay Tenant the amount of the credit. The
obligations of Tenant and Landlord to make payments required under this Section
shall survive the Expiration Date.
(d) Tenant's *------ Share of Excess Expenses in any Comparison Year
having less than 365 days shall be appropriately prorated.
(e) If any dispute arises as to the amount of any additional rent due
hereunder, Tenant shall have the right after reasonable notice and at reasonable
times to inspect Landlord's accounting records at Landlord's accounting office
and, if after such inspection Tenant still disputes the amount of additional
rent owed, a certification as to the proper amount shall be made by Landlord's
certified public accountant, which certification shall be final and conclusive.
▇▇▇▇▇▇ agrees to pay the cost of such certification unless it is determined that
▇▇▇▇▇▇▇▇'s original statement overstated Operating Expenses by more than five
percent (5%).
(f) Operating Expenses including any additional real estate taxes
will be based on a ninety-five percent (95%) leased project for the entire base
year and other year regardless of the current occupancy.
(g) In no event shall Tenant be responsible for increases in Operating
Expenses in excess of six percent (6%) per year on a cumulative basis.
* Percentage
22
ADDENDUM "3"
OPTION TO RENEW. Tenant shall have the right to extend the term of this
Lease for one (1) consecutive five (5) year period (the "Option Term"), on the
following terms and conditions:
(a) Each Option Term shall commence when the prior term expires. Tenant
must give written notice of its exercise of the option, and Landlord must
actually receive such notice, no earlier than twelve (12) months and no later
than six (6) months prior to the time that the Option Term would commence.
(b) The option(s) to extend this Lease for any Option Term must be
exercised consecutively.
(c) All terms and conditions of this Lease shall apply during the
Option Terms except as expressly provided in this Addendum.
(d) Tenant shall have no right to exercise an option, notwithstanding
any other provision of this Lease to the contrary, during the time commencing
from the date of any default * and continuing until the default is cured.
-------
(e) The period of time within which Tenant may exercise an option to
extend the term of this Lease shall not be extended or enlarged by reason of
Tenant's inability to exercise an option because of the provisions of Section
(d) above.
--------------------------------------------------------------------------------
(g) The options granted to Tenant may not be voluntarily or
involuntarily exercised by or assigned to any person or entity other than
Tenant, without the prior written consent of Landlord.
(h) The Base Monthly Rent during each option term shall be adjusted as
of the commencement of each option term to ninety-five percent (95%) of the fair
rental value of the Premises on the terms and conditions contained in this Lease
as mutually agreed by Landlord and Tenant or, if they cannot agree on or before
such commencement date, then as determined by an appraiser mutually selected by
Landlord and Tenant. If Landlord and Tenant cannot agree on a single appraiser
within five (5) days, then each shall select an appraiser. If the two appraisers
cannot agree on said fair rental value within thirty (30) days, then the two
appraisers shall appoint a third appraiser, and said fair rental value of the
Premises shall be deemed to be the average of the two closest appraisals. Each
appraiser shall be a disinterested member of the American Institute of Real
Estate Appraisers, or a body of comparable standing, with at least five years'
experience in commercial real estate appraisal. Landlord and Tenant shall each
bear the cost of the appraiser appointed by them, and shall share equally the
cost of the appraiser mutually selected by them or of the third appraiser
appointed, if any.
(i) Landlord will provide Tenant with a Ten Dollars ($10.00) per usable
square foot refurbishment allowance.
* in the payment of Base Monthly Rent or operating Expenses
23
ADDENDUM "4"
RIGHT OF REFUSALS.
(a) At any time that Landlord determines to lease any space at ▇▇▇▇▇
▇▇▇▇ ▇▇▇▇▇ ▇▇▇▇▇ or ▇▇▇▇▇ ▇▇▇▇ ▇▇▇▇▇ ▇▇▇▇▇, subject to any other existing
tenants' rights of refusal or extension options, Landlord shall notify Tenant in
writing. Within five (5) business days after receipt of Landlord's notice,
Tenant shall have the option, to be exercised by delivery of written notice to
Landlord, to lease the respective space. In the event Landlord notifies Tenant
for multiple contiguous suites, then Tenant shall either lease none of the
suites or all of the suites being offered. In the event Tenant timely exercises
such option, the suites shall be added to the Premises, effective as of the date
specified in Landlord's notice. In the event Tenant does not timely exercise
such option, ▇▇▇▇▇▇'s rights shall terminate and shall not apply to any
subsequent leasing of the space unless Landlord does not execute a lease for the
space by a third party, in which case ▇▇▇▇▇▇'s rights shall be reinstated.
(b) In the event Tenant timely exercises such option, such space shall
be tendered to Tenant in "as is" condition.
(c) In the event Tenant timely exercises such option, such space shall
be subject to all of the terms and conditions of this Lease, provided that the
Base Monthly Rent shall be One and 25/100 Dollar ($1.25) per square foot per
month, plus electricity, and the Tenant's Share shall be proportionately
increased to reflect the inclusion of such space in the Premises, and provided
further that no free rent, abatement, discount, or other concession shall apply
with respect to the space except if Tenant is currently in the free rent period,
at which time the remaining free rent will apply.
(d) Tenant shall have no right to exercise its right of refusal,
notwithstanding any other provision of this Lease to the contrary, during the
time commencing from the date of any default*under Section 25 of this Lease and
continuing until the default is cured.
(e) The period of time within which Tenant may exercise its right of
refusal shall not be extended or enlarged by reason of Tenant's inability to
exercise such right of refusal because of the provisions in Section (d) above.
-------------------------------------------------
(g) The right of refusal granted to Tenant may not be voluntarily or
involuntarily exercised by or assigned to any person or entity other than Tenant
without the prior written consent of Landlord.
*in the payment of Base Monthly Rent or Operating Expenses
24
ADDENDUM "5"
TENANT IMPROVEMENTS/BASE MONTHLY RENTAL REDUCTION. Tenant, at ▇▇▇▇▇▇'s
expense, will pay for all the costs associated with the following:
(a) Space planning.
(b) Construction documents.
(c) Building permits.
(d) Construction of tenant improvements.
(e) Moving expenses.
(f) Tenant signage costs.
(g) All other costs relating to the build-out of the Premises.
As a concession for Tenant paying for these above mentioned costs,
Landlord will reduce Tenant's Base Monthly Rent in Section 1(h) of the Lease in
accordance with an amortization formula as follows:
Present Value: Total costs as outlined above, up to a maximum of Three
Hundred Fifty-Seven Thousand Three Hundred Thirty and No/100
Dollars ($357,330.00; $30.00 per usable square foot).
Amortization Term: Sixty (60) months. (Lease term is 66 months - 6 months' rent
abatement = 60 months.)
Interest Rate
of Amortization: Six percent (6%).
As an example, should Tenant expend the maximum amount of $357,330.00,
this amount shall be amortized at six percent (60%), which would reduce Tenant's
Base Monthly Rent by Six Thousand Nine Hundred Eight and 19/100 Dollars
($6,908.19) per month.
BID PROCESS. Tenant will cause at least two and not more than five contractors
to bid for the construction of tenant improvements including the following
contractors:
(a) ▇▇▇▇ Construction
(b) Consolidated Contracting
(c)
(d)
(e)
The contractor selected shall be one of the two lowest bidders,
provided that all bids are adjusted for inconsistent assumptions to reflect an
"apples-to-apples" comparison. Tenant, at its sole discretion, shall select the
contractor in accordance with these terms.
Landlord will not impose any charge for profit overhead, or supervision
in connection with the construction of tenant improvements. Landlord, at
▇▇▇▇▇▇▇▇'s expense, shall have the right to supervise the construction of tenant
improvements from a landlord's perspective. In no event shall ▇▇▇▇▇▇▇▇'s
election to supervise the tenant improvements relieve Tenant from its obligation
to perform the tenant improvements in accordance with this Lease.
Reduction in Prepaid Rent and Security Deposit. If the Base Monthly
Rent is reduced pursuant to the above provision entitled Tenant
Improvements/Base Monthly Rental Reduction, the required Prepaid Rent as set
forth in Section 1(k) and the required Total Security Deposit as set forth in
Section 1(1) shall be reduced by the same amount and Landlord shall refund to
Tenant any excess Prepaid Rent and Total Security Deposit paid to Landlord
within 10 days after the reduction is determined.
25
EXHIBIT A
OUTLINE OF FLOOR
PLAN OR PREMISES
CORPORATE PLAZA II
▇▇▇▇▇ ▇▇▇▇ ▇▇▇▇▇ ▇▇
▇▇▇ ▇▇▇▇▇, ▇▇ ▇▇▇▇▇
SECOND FLOOR
Suite 200
13,686 Rentable Square Feet
[GRAPHIC]
A-1
26
EXHIBIT B
THE PROJECT
[GRAPHIC]
27
EXHIBIT C
NOTICE OF LEASE TERM DATES AND
TENANT'S PERCENTAGE
To:_____________________________________ Date:_______________________
_____________________________________
_____________________________________
Re: Lease dated__________________________, 19__, between____________________
____________________, Landlord, and ____________________________________ Tenant,
concerning Suite __________ located at _________________________________________
Gentlemen:
In accordance with the subject Lease, we wish to advise and/or confirm
as follows:
1. That the Premises have been accepted herewith by the Tenant as being
substantially complete in accordance with the subject Lease and that there is no
deficiency in construction.
2. That the Tenant has possession of the subject Premises and
acknowledges that under the provisions of the subject Lease the term of said
Lease shall commence as of ________________________________ for a term of
__________________ ending on ________________________________
3. That in accordance with the subject Lease, rental commenced to
accrue on __________________________
4. If the commencement date of the subject Lease is other than the
first day of the month, the first billing will contain a pro rata adjustment.
Each billing thereafter shall be for the full amount of the monthly installment
as provided for in said Lease.
5. Rent is due and payable in advance on the first day of each and
every month during the term of said Lease. Your rent checks should be made
payable to ________________________________ at ________________________________
6. The exact number of rentable square feet within the Premises is
__________ square feet.
7. Tenant's Percentage, as adjusted based upon the exact number of
rentable square feet within the Premises, is __________%
AGREED AND ACCEPTED
LANDLORD: TENANT
___________________________ ____________________________
By:________________________ By:_________________________
By:_________________________
C-1
28
EXHIBIT D
STANDARDS FOR UTILITIES AND SERVICES
The following Standards for Utilities and Services are in effect.
Landlord reserves the right to adapt nondiscriminatory modifications and
additions hereto.
As long as Tenant is not in default under any of the terms, conditions,
provisions or agreements of this Lease, Landlord shall:
1. Provide non-attended automatic elevator facilities Monday through
Friday, except holidays from 8 A.M. to 6 P.M., and have one elevator
available at all other times.
2. On Monday through Friday, except holidays from 7 A.M. to 6 P.M., and on
Saturday mornings from 7 A.M. to 4 P.M. (and other times for an agreed
upon rate of $15.00 per hour, ventilate the Premises and furnish air
conditioning or heating on such days and hours, when in the reasonable
judgment of Landlord it may be required for the comfortable occupancy
of the Premises. The air conditioning system achieves maximum cooling
when the window coverings are closed. Landlord shall not be responsible
for room temperatures if Tenant does not keep all window coverings in
the Premises closed whenever the system is in operation. ▇▇▇▇▇▇ agrees
to cooperate fully at all times with Landlord, and to abide by all
reasonable regulations and requirements which Landlord may prescribe
for the proper function and protection of said air conditioning system.
Tenant agrees not to connect any apparatus, device, conduit or pipe to
the building chilled and hot water air conditioning supply lines.
Tenant further agrees that neither Tenant nor its servants, employees,
agents, visitors, licensees or contractors shall at any time enter
mechanical installations or facilities of the building or adjust,
tamper with, touch or otherwise in any manner affect said installations
or facilities. The cost of maintenance and service calls to adjust and
regulate the air conditioning system shall be charged to Tenant if the
need for maintenance work results from either Tenant's adjustment of
room thermostats or Tenant's failure to comply with its obligations
under this section, including keeping window coverings closed as
needed. Such work shall be charged at hourly rates equal to
then-current journeymen's wages for air conditioning mechanics.
3. Landlord shall furnish to the Premises, during the usual business hours
on business days, electric current as required by the building standard
office lighting and fractional horsepower office business machines in
an amount not to exceed .025 KWH per square foot per normal business
day. Tenant agrees, should its electrical installation or electrical
consumption be in excess of the aforesaid quantity or extend beyond
normal business hours, to reimburse Landlord monthly for the measured
consumption at the average cost per kilowatt hour charged to the
building during the period. If a separate meter is not installed at
Tenant's cost, such excess cost will be established by an estimate
agreed upon by Landlord and Tenant, and if the parties fail to agree,
as established by an independent licensed engineer. Tenant agrees not
to use any apparatus or device in, or upon, or about the Premises which
may in any way increase the amount of such services usually furnished
or supplied to said Premises, and ▇▇▇▇▇▇ further agrees not to connect
any apparatus or device with wires, conduits or pipes, or other means
by which such services are supplied, for the purpose of using
additional or unusual amounts of such services without written consent
of Landlord. Should Tenant use the same to excess, the refusal on the
part of Tenant to pay upon demand of Landlord the amount established by
Landlord for such excess charge shall constitute a breach of the
obligation to pay rent under this Lease and shall entitle Landlord to
the rights therein granted for such breach. At all times Tenant's use
of electric current shall never exceed the capacity of the feeders to
the building or the risers or wiring installation and Tenants shall not
install or use or permit the installation or use of any computer or
electronic data processing equipment in the Premises without the prior
written consent of Landlord.
4. Water will be available in public areas for drinking and lavatory
purposes only, but if Tenant requires, uses or consumes water for any
purposes in addition to ordinary drinking and lavatory purposes, of
which fact Tenant constitutes Landlord to be the sole judge, Landlord
may install a water meter and thereby measure Tenant's water
consumption for all purposes. Tenant shall pay Landlord for the cost of
the meter and the cost of the installation thereof and throughout the
duration of ▇▇▇▇▇▇'s occupancy Tenant shall keep said meter and
installation equipment in good working order and repair at Tenant's own
cost and expense, in default of which Landlord may cause such meter and
equipment to be replaced or repaired and collect the cost thereof from
Tenant. Tenant agrees to pay for water consumed, as shown on said
meter, as and when bills are rendered, and on default in making such
payment, Landlord may pay such charges and collect the same from
Tenant. Any such costs or expenses incurred, or payments made by
Landlord for any of the reasons or purposes hereinabove stated shall be
deemed to be additional rent payable by Tenant and collectible by
Landlord as such.
5. Provide janitor service to the Premises, provided the same are used
exclusively as offices, and are kept reasonably in order by Tenant, and
if to be kept clean by Tenant, no one other than persons approved by
Landlord shall be permitted to enter the Premises for such purposes. If
the Premises are not used exclusively as offices, they shall be kept
clean and in order by Tenant, at Tenant's expense, and to the
satisfaction of Landlord, and by persons approved by Landlord. Tenant
shall pay to Landlord the cost of removal of any of Tenant's refuse and
rubbish to the extent that the same exceeds the refuse and rubbish
usually attendant upon the use of the Premises as offices.
Landlord reserves the right to stop service of the elevator, plumbing,
ventilation, air conditioning and electric systems, when necessary, by reason of
accident or emergency or for repairs, alterations or improvements, in the
judgment of Landlord desirable or necessary to be made, until said repairs,
alterations or improvements, shall have been completed, and shall further have
no responsibility or liability for failure to supply elevator facilities,
plumbing, ventilating, air conditioning or electric service, when prevented
from so doing by strike or accident or by any cause beyond Landlord's reasonable
control, or by laws, rules, orders, ordinances, directions, regulations or
requirements of any federal, state, county or municipal authority or failure of
gas, oil or other suitable fuel supply or inability by exercise of reasonable
diligence to obtain gas, oil or other suitable fuel. It is expressly understood
and agreed that any convenants on Landlord's part to furnish any service
pursuant to any of the terms, covenants, conditions, provisions or agreements of
this Lease, or to perform any act or thing for the benefit of Tenant, shall not
be deemed breached if ▇▇▇▇▇▇▇▇ is unable to furnish or perform the same by
virtue of a strike or labor trouble or any other cause whatsoever beyond
Landlord's control.
6. This Lease is a "plus electricity" lease in which Tenant shall pay for
their use of electricity throughout the term of the Lease. Each floor
of the project is separately metered, and Tenant shall pay directly to
the utility company each month for their electrical consumption.
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EXHIBIT E
TENANT ESTOPPEL CERTIFICATE
The undersigned, ___________________________________ ("Landlord"), with
a mailing address c/o __________________________ and___________________________
___________________ ("Tenant"), hereby certify to__________________________,
a ____________________________________________________________, as follows:
1. Attached hereto is a true, correct and complete copy of that certain
lease dated____________________, 19__, between Landlord and Tenant (the
"Lease"), which demises premises located at________________________.
The Lease is now in full force and effect and has not been amended,
modified or supplemented, except as set forth in Paragraph 4 below.
2. The term of the Lease commenced on______________________________ 19___.
3. The term of the Lease shall expire on___________________________ 19___.
4. The Lease has (Initial one):
(___) not been amended, modified, supplemented, extended, renewed or
assigned.
(___) been amended, modified, supplemented, extended, renewed or
assigned by the following described agreements copies of which
are attached hereto:
______________________________________________________________
______________________________________________________________
______________________________________________________________
5. ▇▇▇▇▇▇ has accepted and is now in possession of said premises.
6. Tenant and Landlord acknowledge that the Lease will be assigned
to____________________________ and that no modification, adjustment,
revision or cancellation of the Lease or amendments thereto shall be
effective unless written consent of____________________is obtained, and
that until further notice, payments under the Lease may continue as
heretofore.
7. The amount of fixed monthly rent is $______________________.
8. The amount of security deposits (it any) is $________________________.
No other security deposits have been made.
9. Tenant is paying the full lease rental which has been paid in full as
of the date hereof. No rent under the Lease has been paid for more than
thirty (30) days in advance of its due date.
10. All work required to be performed by Landlord under the Lease has been
completed.
11. There are no defaults on the part of the Landlord or Tenant under the
Lease.
12. Tenant has no defense as to its obligations under the Lease and claims
no set-off or counterclaim against Landlord.
13. Tenant has no right to any concession (rental or otherwise) or similar
compensation in connection with renting the space it occupies except as
provided in the lease.
All provisions of the Lease and the amendments thereto (if any)
referred to above are hereby ratified.
The foregoing certification is made with the knowledge
that_______________________ is about to fund a loan to Landlord and
that___________________________ is relying upon the representations herein made
in funding such loan.
IN WITNESS WHEREOF, this certificate has been duly executed and
delivered by the authorized officers of the undersigned as of_________________,
19____.
LANDLORD:
By:___________________________
TENANT
By:___________________________
By:___________________________
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EXHIBIT F
RULES AND REGULATIONS
1. Except as specifically provided in the Lease to which these Rules and
Regulations are attached, no sign, placard, picture, advertisement,
name or notice shall be installed or displayed on any part of the
outside or inside of the building or Project without the prior written
consent of Landlord. Landlord shall have the right to remove, at
Tenant's expense and without notice, any sign installed or displayed in
violation of this rule. All approved signs or lettering on doors and
walls shall be printed, painted, affixed or inscribed at the expense of
Tenant by a person approved by Landlord.
2. If Landlord objects in writing to any curtains, blinds, shades, screens
or hanging plants or other similar objects attached to or used in
connection with any window or door of the Premises, or placed on any
windowsill, which is visible from the exterior of the Premises, Tenant
shall immediately discontinue such use. Tenant shall not place anything
against or near glass partitions or doors or windows which may appear
unsightly from outside the Premises.
3. Tenant shall not obstruct any sidewalks, halls, passages, exits,
entrances, elevators, escalators or stairways of the Project. The
halls, passages, exits, entrances, shopping malls, elevators,
escalators and stairways are not open to the general public, but are
open, subject to reasonable regulations, to Tenant's business invitees.
Landlord shall in all cases retain the right to control and prevent
access thereto of all persons whose presence in the judgment of
Landlord would be prejudicial to the safety, character, reputation and
interest of the Project and its tenants; provided that nothing herein
contained shall be construed to prevent such access to persons with
whom any tenant normally deals in the ordinary course of its business,
unless such persons are engaged in illegal or unlawful activities. No
tenant and no employee or invitee of any tenant shall go upon the
roof(s) of the Project.
4. The directory of the building or Project will be provided exclusively
for the display of the name and location of tenants only and Landlord
reserves the right to exclude any other names therefrom.
5. All cleaning and janitorial services for the Project and the Premises
shall be provided exclusively through Landlord, and except with the
written consent of Landlord, no person or persons other than those
approved by Landlord shall be employed by Tenant or permitted to enter
the Project for the purpose of cleaning the same. Tenant shall not
cause any unnecessary labor by carelessness or indifference to the good
order and cleanliness of the Premises.
6. Landlord will furnish Tenant, free of charge, with two keys to each
door lock in the Premises. Landlord may make a reasonable charge for
any additional keys. Tenant shall not make or have made additional
keys, and Tenant shall not alter any lock or install a new additional
lock or bolt on any door of its Premises. Tenant, upon the termination
of its tenancy, shall deliver to Landlord the keys of all doors which
have been furnished to Tenant, and in the event of loss of any keys so
furnished, shall pay Landlord therefor.
7. If Tenant requires telegraphic, telephonic, burglar alarm or similar
services, it shall first obtain, and comply with, Landlord's
instructions in their installation.
8. Freight elevator(s) shall be available for use by all tenants in the
building, subject to such reasonable scheduling as Landlord, in its
discretion, shall deem appropriate. No equipment, materials, furniture,
packages, supplies, merchandise or other property will be received in
the building or carried in the elevators except between such hours and
in such elevators as may be designated by Landlord. Tenant's initial
move in and subsequent deliveries of bulky items, such as furniture,
safes and similar items shall, unless otherwise agreed in writing by
Landlord, be made during the hours of 6:00 p.m. to 6:00 a.m. or on
Saturday or Sunday. Deliveries during normal office hours shall be
limited to normal office supplies and other small items. No deliveries
shall be made which impede or interfere with other tenants or the
operation of the building.
9. Tenant shall not place a load upon any floor of the Premises which
exceeds the load per square foot which such floor was designed to carry
and which is allowed by law. Landlord shall have the right to prescribe
the weight, size and position of all equipment, materials, furniture or
other property brought into the building. Heavy objects shall, if
considered necessary by Landlord, stand on such platforms as determined
by Landlord to be necessary to properly distribute the weight, which
platforms shall be provided at Tenant's expense. Business machines and
mechanical equipment belonging to Tenant, which cause noise or
vibration that may be transmitted to the structure of the building or
to any space therein to such a degree as to be objectionable to
Landlord or to any tenants in the building, shall be placed and
maintained by Tenant, at Tenant's expense, on vibration eliminators or
other devices sufficient to eliminate noise or vibration. The persons
employed to move such equipment in or out of the building must be
acceptable to Landlord. Landlord will not be responsible for loss of,
or damage to, any such equipment or other property from any cause, and
all damage done to the building by maintaining or moving such equipment
or other property shall be repaired at the expense of Tenant.
10. Tenant shall not use or keep in the Premises any kerosene, gasoline or
inflammable or combustible fluid or material other than those limited
quantities necessary for the operation or maintenance of office
equipment. Tenant shall not use or permit to be used in the Premises
any foul or noxious gas or substance, or permit or allow the Premises
to be occupied or used in a manner offensive or objectionable to
Landlord or other occupants of the building by reason of noise, odors
or vibrations, nor shall Tenant bring into or keep in or about the
Premises any birds or animals.
11. Tenant shall not use any method of heating or air conditioning other
than that supplied by Landlord.
12. Tenant shall not waste electricity, water or air conditioning and
agrees to cooperate fully with Landlord to assure the most effective
operation of the building's heating and air conditioning and to comply
with any governmental energy-saving rules, laws or regulations of which
▇▇▇▇▇▇ has actual notice, and shall refrain from attempting to adjust
controls. Tenant shall keep corridor doors closed, and shall close
window coverings at the end of each business day.
13. Landlord reserves the right, exercisable without notice and without
liability to Tenant, to change the name and street address of the
building.
14. Landlord reserves the right to exclude from the building between the
hours of 6 p.m. and 7 a.m. the following day, or such other hours as
may be established from time to time by Landlord, and on Sundays and
legal holidays, any person unless that person is known to the person or
employee in charge of the building and has a pass or is properly
identified. Tenant shall be responsible for all persons for whom it
requests passes and shall be liable to Landlord for all acts of such
persons. Landlord shall not be liable for damages for any error with
regard to the admission to or exclusion from the building of any
person. Landlord reserves the right to prevent access to the building
in case of invasion, mob, riot, public excitement or other commotion by
closing the doors or by other appropriate action.
15. Tenant shall close and lock the doors of its Premises and entirely shut
off all water faucets or other water apparatus, and electricity, gas or
air outlets before tenant and its employees leave the Premises. Tenant
shall be responsible for any damage or injuries sustained by other
tenants or occupants of the building or by Landlord for noncompliance
with this rule.
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16. Tenant shall not obtain for use on the Premises ice, drinking water,
food, beverage, towel or other similar services or accept barbering or
bootblacking service upon the Premises, except at such hours and under
such regulations as may be fixed by Landlord.
17. The toilet rooms, toilets, urinals, wash bowls and other apparatus
shall not be used for any purpose other than that for which they were
constructed and no foreign substance of any kind whatsoever shall be
thrown therein. The expense of any breakage, stoppage or damage
resulting from the violation of this rule shall be borne by the tenant
who, or whose employees or invitees, shall have caused it.
18. Tenant shall not sell, or permit the sale at retail of newspapers,
magazines, periodicals, theater tickets or any other goods or
merchandise to the general public in or on the Premises. Tenant shall
not make any room-to-room solicitation of business from other tenants
in the Project. Tenant shall not use the Premises for any business or
activity other than that specifically provided for in Tenant's Lease.
19. Tenant shall not install any radio or television antenna, loudspeaker
or other devices on the roof(s) or exterior walls of the building or
Project. Tenant shall not interfere with radio or television
broadcasting or reception from or in the Project or elsewhere.
20. Tenant shall not mark, drive nails, screw or drill into the partitions,
woodwork or plaster or in any way deface the Premises or any part
thereof, except in accordance with the provisions of the Lease
pertaining to alterations. Landlord reserves the right to direct
electricians as to where and how telephone and telegraph wires are to
be introduced to the Premises. Tenant shall not cut or bore holes for
wires. Tenant shall not affix any floor covering to the floor of the
Premises in any manner except as approved by Landlord. Tenant shall
repair any damage resulting from noncompliance with this rule.
21. Tenant shall not install, maintain or operate upon the premises any
vending machines without the written consent of Landlord.
22. Canvassing, soliciting and distribution of handbills or any other
written material, and peddling in the Project are prohibited, and
Tenant shall cooperate to prevent such activities.
23. Landlord reserves the right to exclude or expel from the Project any
person who, in Landlord's judgement, is intoxicated or under the
influence of liquor or drugs or who is in violation of any of the Rules
and Regulations of the Building.
24. Tenant shall store all its trash and garbage within its premises or in
other facilities provided by Landlord. Tenant shall not place in any
trash box or receptacle any material which cannot be disposed of in the
ordinary and customary manner of trash and garbage disposal. All
garbage and refuse disposal shall be made in accordance with directions
issued from time to time by Landlord.
25. The Premises shall not be used for the storage of merchandise held for
sale to the general public, or for lodging or for manufacturing of any
kind, nor shall the Premises be used for any improper, immoral or
objectional purpose. No cooking shall be done or permitted on the
Premises without Landlord's consent, except that use by Tenant of
Underwriters' Laboratory approved equipment for brewing coffee, tea,
hot chocolate and similar beverages or use of microwave ovens for
employee use shall be permitted, provided that such equipment and use
is in accordance with all applicable, federal, state, county and city
laws, codes, ordinances, rules and regulations.
26. Tenant shall not use in any space or in the public halls of the Project
any hand truck except those equipped with rubber tires and side guards
or such other material-handling equipment as Landlord may approve.
Tenant shall not bring any other vehicles of any kind into the building
or Project.
27. Without the written consent of Landlord, Tenant shall not use the name
of the building or Project in connection with or in promoting or
advertising the business of Tenant except as ▇▇▇▇▇▇'s address.
28. Tenant shall comply with all safety, fire protection and evacuation
procedures and regulations established by Landlord or any governmental
agency.
29. Tenant assumes any and all responsibility for protecting its Premises
from theft, robbery and pilferage, which includes keeping doors locked
and other means of entry to the Premises closed.
30. Tenant's requirements will be attended to only upon appropriate
application to the Project management office by an authorized
individual. Employees of Landlord shall not perform any work or do
anything outside of their regular duties unless under special
instructions from Landlord, and no employee of Landlord will admit any
person (Tenant or otherwise) to any office without specific
instructions from Landlord.
31. Landlord may waive any one or more of these Rules and Regulations for
the benefit of Tenant or any other tenant, but no such waiver by
Landlord shall be construed as a waiver of such Rules and Regulations
in favor of Tenant or any other tenant, nor prevent Landlord from
thereafter enforcing any such Rules and Regulations against any or all
of the tenants of the Project.
32. These Rules and Regulations are in addition to, and shall not be
construed to in any way modify or amend, in whole or in part, the
terms, covenants, agreements and conditions of the Lease.
33. Landlord reserves the right to make such other and reasonable Rules and
Regulations as, in its judgment, may from time to time be needed for
safety and security, for care and cleanliness of the Project and for
the preservation of good order therein. ▇▇▇▇▇▇ agrees to abide by all
such Rules and Regulations hereinabove stated and any additional rules
and regulations which are adopted.
34. Tenant shall be responsible for the observance of all of the foregoing
rules by Tenant's employees, agents, clients, customers, invitees and
guests.
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EXHIBIT G
PARKING RULES AND REGULATIONS
The following rules and regulations shall govern use of the parking
facilities which are appurtenant to the Project.
1. All claimed damage or loss must be reported and itemized in writing
delivered to the Management Office within ten (10) business days after
any claimed damage or loss occurs. Any claim not so made is waived.
Landlord has the option to make repairs at its expense of any claimed
damage within two business days after filing of any claim. In all court
actions the burden of proof to establish a claim remains with ▇▇▇▇▇▇.
Court actions by ▇▇▇▇▇▇ for any claim must be filed within ninety days
from date of parking in court of jursidiction where a claimed loss
occurred. Landlord is not responsible for damage by water, fire, or
defective brakes, or parts, or for the act or omissions of others, or
for articles left in the car. The total liability of Landlord is
limited to $250.00 for all damages or loss to any car. ▇▇▇▇▇▇▇▇ is not
responsible for loss of use.
2. Tenant shall not park or permit the parking of any vehicle under its
company in any parking areas designated by Landlord as areas for
parking by visitors to the Project. Tenant shall not leave vehicles in
the parking areas overnight nor park any vehicles in the parking areas
other than automobiles, motorcycles, motor driven or non-motor driven
bicycles or fourwheeled trucks.
3. Parking stickers or any other device or form of identification supplied
by landlord as a condition of use of the Parking Facilities shall
remain the property of Landlord. Such parking identification device
must be displayed as requested and may not be mutilated in any manner.
The serial number of the parking identification device may not be
obliterated. Devices are not transferable and any device in the
possession of an unauthorized holder will be void.
4. No overnight or extended term storage of vehicles shall be permitted.
5. Vehicles must be parked entirely within painted stall lines of a
single parking stall.
6. All directional signs and arrows must be observed.
7. The speed limit within all parking areas shall be 5 miles per hour.
8. Parking is prohibited:
(a) in areas not striped for parking;
(b) in aisles;
(c) where "no parking" signs are posted;
(d) on ramps;
(e) in cross-hatched areas; and
(f) in such other areas as may be designated by Landlord or
Landlord's Parking Operator.
9. Every ▇▇▇▇▇▇ is required to park and lock his own vehicle. All
responsibility for damage to vehicles is assumed by the ▇▇▇▇▇▇.
10. Loss or theft of parking identification devices from automobiles must
be reported to the Management Office immediately, and a lost or stolen
report must be filed by the customer at that time. Landlord has the
right to exclude any car from the parking facilities that does not have
an identification device.
11. Any parking identification devices reported lost or stolen found on any
unauthorized car will be confiscated and the illegal holder will be
subject to prosecution.
12. Lost or stolen devices found by the purchaser must be reported to the
Management Office immediately to avoid confusion.
13. Washing, waxing, cleaning or servicing of any vehicle in any area not
specifically reserved for such purpose is prohibited.
14. Parking Facility managers or attendants are not authorized to make or
allow any exceptions to these Rules and Regulations.
15. ▇▇▇▇▇▇▇▇ reserves the right to refuse the sale of monthly stickers or
other parking identification devices to any tenant or person and/or his
agents or representatives who willfully refuse to comply with these
Rules and Regulations and all unposted City, State or Federal
ordinances, laws or agreements.
16. Landlord reserves the right to establish and change parking fees and to
modify and/or adopt such other reasonable and non-discriminatory rules
and regulations for the parking facilities as it deems necessary for
the operation of the parking facilities. Landlord may refuse to permit
any person who violates these rules to park in the parking facilities,
and any violation of the rules shall subject the car to removal.
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EXHIBIT H
HAZARDOUS MATERIALS
THE FOLLOWING PROVISIONS DEALING WITH HAZARDOUS MATERIALS ARE MEANT TO BE
IN ADDITION TO, AND NOT SUPERSEDE OR LIMIT, ANY OTHER PROVISIONS OF THIS
LEASE WHICH MAY DEAL WITH THE SAME SUBJECT MATTER.
(a) DEFINITION. "Hazardous Materials" shall mean any hazardous or
toxic substance, material, or waste which is or becomes regulated by any
local governmental authority, the State of California, or the United
States Government, including, but not limited to, substances defined as
"hazardous substances," "hazardous materials," "toxic substances," or
"hazardous wastes" in the Comprehensive Environmental Responses,
Compensation and Liability Act of 1980, as amended, 42 U.S.C. Section
9601, et seq; the Hazardous Materials Transportation Act, 49 U.S.C.
Section 1801, et seq; the Resource Conversation and Recovery Act, 42
U.S.C. Section 6901, et seq; the California Health & Safety Code; and any
law, ordinance, or regulation dealing with underground storage tanks; and
in the regulations adopted, published, and/or promulgated pursuant to said
laws, and in any other environmental law, regulation, or ordinance now
existing or hereinafter enacted (hereinafter "Hazardous Materials Laws").
(b) USE AND REMOVAL.
(1) Tenant hereby agrees that Tenant shall not use,
generate, manufacture, refine, process, store, or dispose of on, under, or
about the Premises or transport to or from the Premises any Hazardous
Materials, except with the written consent of Landlord in Landlord's sole
discretion and in full compliance with applicable Hazardous Materials
Laws. Tenant further acknowledges that ▇▇▇▇▇▇ does not intend to use the
Premises in the future for the purpose of generating, manufacturing,
refining, producing, storing. handling, transferring, processing, or
transporting of Hazardous Materials.
(2) If at any time during the term of this Lease, Hazardous
Materials are used, or placed by Tenant on the Premises or Hazardous
Materials are discovered by Tenant on the Premises where no prior consent
of Landlord was obtained or otherwise in violation of any Hazardous
Materials Laws, or if any contamination of the Premises shall occur,
Tenant, at Tenant's sole cost and expense, shall immediately remove such
Hazardous Materials from the Premises or from the ground or ground-water
underlying the Premises in accordance with requirements of the appropriate
governmental entity. Furthermore, Tenant shall, at its own expense,
procure, maintain in effect, and comply with all conditions of any and all
permits, licenses, and other governmental and regulatory approvals
required for Tenant's use of the Premises, including, without limitation,
discharge of (appropriately treated) materials or wastes into and through
any sanitary sewer serving the Premises.
(3) Except for discharges into the sanitary sewer in strict
accordance and conformity with all applicable Hazardous Materials Laws,
Tenant shall cause any and all permitted Hazardous Materials removed from
the Premises to be removed and transported solely by duly licensed haulers
to duly licensed facilities for final disposal of such materials and
wastes. Tenant shall in all respects handle, treat, deal with, and manage
any and all Hazardous Materials in, on, under, or about the Premises in
total conformity with all applicable Hazardous Materials Laws and prudent
industry practices regarding management of such Hazardous Materials.
Tenant shall not take any remedial action in response to the presence of
any Hazardous Materials in or about the Premises nor enter into any
settlement agreement, consent, decree, or other compromise in respect to
any claims relating to any Hazardous Materials in any way connected with
the Premises without first notifying Landlord of Tenants intention to do
so and affording Landlord ample opportunity to appear, intervene, or
otherwise appropriately assert and protect Landlord's interest with
respect thereto. In addition to all other rights and remedies of Landlord
hereunder, if such Hazardous Materials are not removed from the Premises
or the ground or groundwater underlying the Premises by Tenant within
fifteen (15) days after Landlord or Tenant discovers such Hazardous
Materials, Landlord, at its sole discretion, may, but shall not be
obligated to, pay to have the same removed, and Tenant shall reimburse
Landlord within five (5) days of Landlord's demand for payment.
(c) NOTICE.
(1) Tenant shall immediately notify Landlord in writing of
(i) any enforcement, cleanup, removal, or other governmental or regulatory
action instituted, completed, or threatened pursuant to any Hazardous
Materials Laws; (ii) any claim made or threatened by any person against
Tenant, or the Premises relating to damage contribution, cost recovery,
compensation, loss, or injury resulting from or claimed to result from any
Hazardous Materials; and (iii) any reports made to any environmental
agency arising out of or in connection with any Hazardous Materials in or
removed from the Premises, including any complaints, notices, warnings, or
asserted violations in connection therewith, upon ▇▇▇▇▇▇'s receipt of
actual knowledge of the above. Tenant shall also supply to Landlord as
promptly as possible, and in any event within five (5) business days after
Tenant first
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receives or sends the same, with copies of all claims, reports,
complaints, notices, Warnings, or asserted violations relating in any way
to the Premises, or Tenant's use thereof. Tenant shall promptly deliver
to Landlord copies of hazardous waste manifests reflecting the legal and
proper disposal of all Hazardous Materials removed from the Premises.
(2) Tenant acknowledges that Tenant has been informed that
Section 25359.7 of the California Health and Safety Code provides that
any tenant of real property who knows, or has reasonable cause to
believe, that any release of hazardous substances has come to be located
on or beneath the real property shall, upon discovery by the tenant of
the presence or suspected presence of a hazardous substance release,
give notice of that condition to the owner of the real property. Failure
of the tenant to provide written notice as required to the owner shall
make the lease voidable at the discretion of the owner. The Health and
Safety Code provides that if the tenant has actual knowledge of the
presence of any hazardous substance release and knowingly or willingly
fails to provide written notice as required by the owner, the tenant is
liable for a civil penalty not to exceed $5,000.00 for each violation.
(d) INDEMNIFICATION. Tenant shall indemnify, defend (by counsel
reasonably acceptable to Landlord), protect, and hold Landlord, and each
and any of Landlord's shareholders, partners, officers, directors,
employees, agents, attorneys, successors, and assigns, free and harmless
from and against any and all claims, liabilities, penalties, forfeitures,
losses, or expenses (including actual attorneys' fees and costs) or death
of or injury to any person or damage to any property whatsoever, arising
from or caused in whole or in part, directly or indirectly, by (i) the
presence in, on, under, or about the Premises or discharge in or from the
Premises of any Hazardous Materials placed or discharged in, on, or under
the Premises by Tenant or Tenant's use, analysis, storage,
transportation, disposal, release, threatened release, discharge, or
generation of Hazardous Materials to, in, on, under, about, or from the
Premises; or (ii) Tenant's failure to comply with any Hazardous Materials
Laws. Tenant's obligation hereunder shall include, without limitation,
and whether foreseeable or unforeseeable, all costs of any required or,
necessary repair, cleanup, or detoxification or decontamination of the
Premises and the preparation and implementation of any closure, remedial
action, or other required plans in connection therewith. For purpose of
the indemnity provisions hereof, any acts or omissions of Tenant, or by
employees, agents, assignees, subtenant, concessionaire, contractors, or
subcontractors of Tenant or others acting for on behalf of Tenant
(whether or not they are negligent, intentional, willful, or unlawful)
shall be strictly attributable to Tenant.
(e) SURVIVAL. All representations, warranties, obligations, and
indemnities with respect to Hazardous Materials shall survive the
termination of this Lease.
Section 10.2. WASTE MANAGEMENT REQUIREMENTS. Without limiting any
other obligations of Tenant under this Lease, Tenant covenants and agrees
to comply with all laws, rules, regulations, and guidelines now or
hereafter made applicable to the Premises respecting the disposal of
waste, trash, garbage, and other matter (liquid or solid), generated by
Tenant, the disposal of which is not otherwise the express obligation of
Landlord under this Lease, including, but not limited to, laws, rules,
regulations, and guidelines respecting recycling and other forms of
reclamation (all of which are herein collectively referred to as "Waste
Management Requirements"). Tenant hereby covenants and agrees to comply
with all rules and regulations established by Landlord to enable Landlord
from time to time to comply with Waste Management Requirements applicable
to Landlord (i) as owner of the Premises, and (ii) in performing
Landlord's obligations under this Lease, if any. Tenant covenants and
agrees to indemnify, defend, protect, and hold Landlord harmless from and
against all liability (including costs, expenses, and attorneys' fees)
that Landlord may sustain by reason of Tenant's breach of its obligations
under this Section 10.2. Tenant obligations under this Section 10.2 shall
survive the termination of this Lease.
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