EXHIBIT 10.27
LEASE AGREEMENT
by and between
DELAWARE CHIP LLC,
a Delaware limited liability company
as LANDLORD
and
ADVANCED MICRO DEVICES, INC.,
a Delaware corporation,
as TENANT
Premises: One AMD Place
Sunnyvale, California
Dated as of: December 22, 1998
TABLE OF CONTENTS
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Page
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Parties...................................................................... 2
1. Demise of Premises....................................................... 2
2. Certain Definitions...................................................... 2
3. Title and Condition...................................................... 7
4. Use of Leased Premises; Quiet Enjoyment.................................. 8
5. Term..................................................................... 9
6. Basic Rent............................................................... 10
7. Additional Rent.......................................................... 10
8. Net Lease; Non-Terminability............................................. 11
9. Payment of Impositions................................................... 12
10. Compliance with Laws and Easement Agreements; Environmental Matters..... 13
11. Liens; Recording........................................................ 15
12. Maintenance and Repair.................................................. 16
13. Alterations and Improvements............................................ 17
14. Permitted Contests...................................................... 17
15. Indemnification......................................................... 18
16. Insurance............................................................... 19
17. Casualty and Condemnation............................................... 22
18. Termination Events...................................................... 23
19. Restoration............................................................. 24
20. INTENTIONALLY DELETED................................................... 25
21. Assignment and Subletting; Prohibition against Leasehold Financing...... 25
22. Events of Default....................................................... 27
23. Remedies and Damages Upon Default....................................... 28
24. Notices................................................................. 31
25. Estoppel Certificate.................................................... 32
26. Surrender............................................................... 32
27. No Merger of Title...................................................... 32
28. Books and Records....................................................... 32
29. INTENTIONALLY DELETED................................................... 34
30. Non-Recourse as to Landlord............................................. 34
31. Financing............................................................... 35
32. Subordination, Non-Disturbance and Attornment........................... 35
33. INTENTIONALLY DELETED................................................... 35
34. Tax Treatment; Reporting................................................ 35
35. Excess Land............................................................. 35
36. Financing Major Alterations............................................. 36
37. Security Deposit........................................................ 37
38. Right of First Refusal.................................................. 39
39. Miscellaneous........................................................... 41
EXHIBITS
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Exhibit "A-1" - Premises
Exhibit "A-2" - Excess Land
Exhibit "B" - Machinery and Equipment
Exhibit "C" - Schedule of Permitted Encumbrances
Exhibit "D" - Rent Schedule
Exhibit "E" - Intentionally Deleted
-i-
Exhibit "F" - Form of Subordination, Non-Disturbance and Attornment
Agreement
Exhibit "G" -- Schedule of Termination Amounts
-ii-
LEASE AGREEMENT, made as of the 22nd day of December, 1998, between
DELAWARE CHIP LLC, a Delaware limited liability company ("Landlord"), with an
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address c/o W. P. ▇▇▇▇▇ & Co., Inc., ▇▇ ▇▇▇▇▇▇▇▇▇▇▇ ▇▇▇▇▇, ▇▇▇ ▇▇▇▇▇, ▇▇▇ ▇▇▇▇,
▇▇▇ ▇▇▇▇ ▇▇▇▇▇, and ADVANCED MICRO DEVICES, INC., a Delaware corporation
("Tenant"), with an address at ▇▇▇ ▇▇▇ ▇▇▇▇▇, ▇▇▇▇▇▇▇▇▇, ▇▇▇▇▇▇▇▇▇▇ ▇▇▇▇▇.
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In consideration of the rents and provisions herein stipulated to be
paid and performed, Landlord and Tenant hereby covenant and agree as follows:
1. Demise of Premises. Landlord hereby demises and lets to
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Tenant, and Tenant hereby takes and leases from Landlord, for the term and upon
the provisions hereinafter specified, the following described property
(collectively, the "Leased Premises"): (a) the premises described in Exhibit
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"A" hereto, together with the Appurtenances (collectively, the "Land"); (b) the
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buildings, structures and other improvements now or hereafter constructed on the
Land (collectively, the "Improvements"); and (c) the fixtures, machinery,
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equipment and other property described in Exhibit "B" hereto (collectively, the
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"Equipment").
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2. Certain Definitions.
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"Additional Rent" shall mean Additional Rent as defined in
Paragraph 7.
"Adjoining Property" shall mean all sidewalks, driveways, curbs,
gores and vault spaces adjoining any of the Leased Premises.
"Alterations" shall mean all changes, additions, improvements or
repairs to, all alterations, reconstructions, renewals, replacements or removals
of and all substitutions or replacements for any of the Improvements or
Equipment, both interior and exterior, structural and non-structural, and
ordinary and extraordinary.
"Appurtenances" shall mean all tenements, hereditaments,
easements, rights-of-way, rights, privileges in and to the Land, including (a)
easements over other lands granted by any Easement Agreement and (b) any
streets, ways, alleys, vaults, gores or strips of land adjoining the Land.
"Assignment" shall mean any assignment of rents and leases from
Landlord to a Lender which (a) encumbers any of the Leased Premises and (b)
secures Landlord's obligation to repay a Loan, as the same may be amended,
supplemented or modified from time to time.
"Basic Rent" shall mean Basic Rent as defined in Paragraph 6.
"Basic Rent Payment Dates" shall mean the Basic Rent Payment
Dates as defined in Paragraph 6.
"Casualty" shall mean any loss of or damage to any property
(including the Leased Premises) included within or related to the Leased
Premises or arising from the Adjoining Property.
"Commencement Date" shall mean Commencement Date as defined in
Paragraph 5.
"Condemnation" shall mean a Taking and/or a Requisition.
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"Condemnation Notice" shall mean notice or knowledge of the
institution of or intention to institute any proceeding for Condemnation.
"Costs" of a Person or associated with a specified transaction
shall mean all reasonable costs and expenses incurred by such Person or
associated with such transaction, including, without limitation, reasonable
attorneys' fees and expenses, court costs, brokerage fees, escrow fees, title
insurance premiums, mortgage commitment fees, mortgage points, recording fees
and transfer taxes, as the circumstances require.
"CPI" shall mean CPI as defined in Exhibit "D" hereto.
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"Default Rate" shall mean the Default Rate as defined in
Paragraph 7(a)(iv).
"Easement Agreement" shall mean any conditions, covenants,
restrictions, easements, declarations, licenses and other agreements, including
any site access agreements, listed as Permitted Encumbrances or as may hereafter
affect the Leased Premises.
"Environmental Law" shall mean (i) whenever enacted or
promulgated, any applicable federal, state, and local law, statute, ordinance,
rule, regulation, license, permit, authorization, approval, consent, court
order, judgment, decree, injunction, code, requirement or agreement with any
governmental entity, (x) relating to pollution (or the cleanup thereof), or the
protection of air, water vapor, surface water, groundwater, drinking water
supply, land (including land surface or subsurface), plant, aquatic and animal
life from injury caused by a Hazardous Substance or (y) concerning exposure to,
or the use, containment, storage, recycling, reclamation, reuse, treatment,
generation, discharge, transportation, processing, handling, labeling,
production, disposal or remediation of Hazardous Substances, Hazardous
Conditions or Hazardous Activities, in each case as amended and as now or
hereafter in effect, and (ii) any common law or equitable doctrine (including,
without limitation, injunctive relief and tort doctrines such as negligence,
nuisance, trespass and strict liability) that may impose liability or
obligations or injuries or damages due to or threatened as a result of the
presence of, exposure to, or ingestion of, any Hazardous Substance. The term
Environmental Law includes, without limitation, the federal Comprehensive
Environmental Response Compensation and Liability Act of 1980, the Superfund
Amendments and Reauthorization Act, the federal Water Pollution Control Act, the
federal Clean Air Act, the federal Clean Water Act, the federal Resources
Conservation and Recovery Act of 1976 (including the Hazardous and Solid Waste
Amendments to RCRA), the federal Solid Waste Disposal Act, the federal Toxic
Substance Control Act, the federal Insecticide, Fungicide and Rodenticide Act,
the federal Occupational Safety and Health Act of 1970, the federal National
Environmental Policy Act and the federal Hazardous Materials Transportation Act,
each as amended and as now or hereafter in effect and any similar state or local
Law.
"Environmental Violation" shall mean (a) any direct or indirect
discharge, disposal, spillage, emission, escape, pumping, pouring, injection,
leaching, release, seepage, filtration or transporting of any Hazardous
Substance at, upon, under, onto or within the Leased Premises, or from the
Leased Premises to the environment, in violation of any Environmental Law which
results, directly or indirectly, in any liability to Landlord, Tenant or Lender,
any Federal, state or local government or any other Person for the costs of any
removal or remedial action or natural resources damage or for bodily injury or
property damage, (b) any transport to or from or deposit, storage, dumping,
placement or use of any Hazardous Substance at, upon, under or within the Leased
Premises or which extends to any Adjoining Property in violation of any
Environmental Law which results in any liability to any Federal, state or local
government or to any other Person for the costs of any removal or remedial
action or natural resources damage or for bodily injury or property damage, (c)
the abandonment or discarding of any barrels,
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containers or other receptacles containing any Hazardous Substances in violation
of any Environmental Laws, (d) any environmental activity, occurrence or
condition at, on, under or from the Leased Premises which results in any
liability, cost or expense to Landlord or Lender or any other owner or occupier
of the Leased Premises, or which results in a creation of a lien on the Leased
Premises under any Environmental Law, or (e) any violation of or noncompliance
with any Environmental Law.
"Equipment" shall mean the Equipment as defined in Paragraph 1.
"Event of Default" shall mean an Event of Default as defined in
Paragraph 22(a).
"Excess Land" shall mean that portion of the Land described in
Exhibit "A-2".
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"Federal Funds" shall mean federal or other immediately available
funds which at the time of payment are legal tender for the payment of public
and private debts in the United States of America.
"Hazardous Activity" means any activity, process, procedure or
undertaking which directly or indirectly (i) procures, generates or creates any
Hazardous Substance; (ii) causes or results in (or threatens to cause or result
in) the release, seepage, spill, leak, flow, discharge or emission of any
Hazardous Substance into the environment (including the air, ground water,
watercourses or water systems), (iii) involves the containment or storage of any
Hazardous Substance; or (iv) would cause the Leased Premises or any portion
thereof to become a hazardous waste treatment, recycling, reclamation,
processing, storage or disposal facility within the meaning of any Environmental
Law.
"Hazardous Condition" means any condition which would support any
claim or liability under any Environmental Law, including the presence of
underground storage tanks.
"Hazardous Substance" means (i) any substance, material, product,
petroleum, petroleum product, derivative, compound or mixture, mineral
(including asbestos), chemical, gas, medical waste, or other pollutant, in each
case whether naturally occurring, man-made or the by-product of any process,
that is toxic, harmful or hazardous or acutely hazardous to the environment or
public health or safety or (ii) any substance supporting a claim under any
Environmental Law, whether or not defined as hazardous as such under any
Environmental Law. Hazardous Substances include, without limitation, any toxic
or hazardous waste, pollutant, contaminant, industrial waste, petroleum or
petroleum-derived substances or waste, radon, radioactive materials, asbestos,
asbestos containing materials, urea formaldehyde foam insulation, lead and
polychlorinated biphenyls.
"Impositions" shall mean the Impositions as defined in Paragraph
9(a).
"Improvements" shall mean the Improvements as defined in
Paragraph 1.
"Indemnitee" shall mean an Indemnitee as defined in Paragraph 15.
"Initial Lender" shall mean GMAC Commercial Mortgage Corporation,
its successors and assigns.
"Initial Loan" shall mean the $68,250,000 loan from Initial
Lender to Landlord.
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"Insurance Requirements" shall mean the requirements of all
insurance policies required to be maintained in accordance with this Lease.
"Land" shall mean the Land as defined in Paragraph 1.
"Law(s)" shall mean any constitution, statute, rule of law, code,
ordinance, order, judgment, decree, injunction, rule, regulation, policy,
requirement or administrative or judicial determination, even if unforeseen or
extraordinary, of every duly constituted governmental authority, court or
agency, now or hereafter enacted or in effect.
"Lease" shall mean this Lease Agreement.
"Lease Year" shall mean, with respect to the first Lease Year,
the period commencing on the Commencement Date and ending at midnight on the
last day of the twelfth (12th) consecutive calendar month following the month in
which the Commencement Date occurred, and each succeeding twelve (12) month
period during the Term.
"Leased Premises" shall mean the Leased Premises as defined in
Paragraph 1.
"Legal Requirements" shall mean the requirements of all present
and future Laws (including but not limited to Environmental Laws and Laws
relating to accessibility to, usability by, and discrimination against, disabled
individuals) and all covenants, restrictions and conditions now or hereafter of
record which may be applicable to Tenant or to any of the Leased Premises, or to
the use, manner of use, occupancy, possession, operation, maintenance,
alteration, repair or restoration of any of the Leased Premises, even if
compliance therewith necessitates structural changes or improvements or results
in interference with the use or enjoyment of any of the Leased Premises.
"Lender" shall mean (a) Initial Lender, its successors and
assigns, and (b) any person or entity (and their respective successors and
assigns) which may, after the date hereof, make a Loan to Landlord or is the
holder of any Note.
"Loan" shall mean the Initial Loan and any other loan made by one
or more Lenders to Landlord, which loan is secured by a Mortgage and an
Assignment and evidenced by a Note.
"Monetary Obligations" shall mean Rent and all other sums payable
or reimbursable by Tenant under this Lease to Landlord, to any third party on
behalf of Landlord or to any Indemnitee.
"▇▇▇▇▇'▇" shall mean ▇▇▇▇▇'▇ Investors Services, Inc.
"Mortgage" shall mean any mortgage or deed of trust from Landlord
to a Lender which (a) encumbers any of the Leased Premises and (b) secures
Landlord's obligation to repay a Loan, as the same may be amended, supplemented
or modified.
"Net Award" shall mean (a) the entire award payable to Landlord
or Lender by reason of a Condemnation whether pursuant to a judgment or by
agreement or otherwise, or (b) the entire proceeds of any insurance required
under clauses (i), (ii) (to the extent payable to Landlord or Lender), (iv), (v)
(to the extent of the Rent) or (vi) of Paragraph 16(a), as the case may be, less
any expenses incurred by Landlord and Lender in collecting such award or
proceeds.
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"Note" shall mean any promissory note evidencing Landlord's
obligation to repay a Loan, as the same may be amended, supplemented or
modified.
"Partial Condemnation" shall mean any Condemnation which does not
constitute a Termination Event.
"Permitted Encumbrances" shall mean those covenants,
restrictions, reservations, liens, conditions and easements and other
encumbrances, other than any Mortgage or Assignment, listed on Exhibit "C"
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hereto (but such listing shall not be deemed to revive any such encumbrances
that have expired or terminated or are otherwise invalid or unenforceable).
"Person" shall mean an individual, partnership, association,
corporation or other entity.
"Prepayment Premium" shall mean any payment (other than a payment
of principal and/or interest which Landlord is required to make under a Note or
a Mortgage) by reason of any prepayment by Landlord of any principal due under a
Note or Mortgage, and which may be (in lieu of such prepayment premium or
prepayment penalty) a "make whole" or yield maintenance clause requiring a
prepayment premium or a defeasance premium (such defeasance premium to be an
amount equal to the positive difference between (a) the total amount required to
defease a Loan and (b) the outstanding principal balance of the Loan as of the
date of such defeasance, in either case in an amount sufficient to compensate
the Lender for the loss of the benefit of the Loan due to a prepayment.
"Prime Rate" shall mean the annual interest rate as published,
from time to time, in The Wall Street Journal as the "Prime Rate" in its column
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entitled "Money Rate". The Prime Rate may not be the lowest rate of interest
charged by any "large U.S. money center commercial banks" and Landlord makes no
representations or warranties to that effect. In the event The Wall Street
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Journal ceases publication or ceases to publish the "Prime Rate" as described
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above, the Prime Rate shall be the average per annum discount rate (the
"Discount Rate") on ninety-one (91) day bills ("Treasury Bills") issued from
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time to time by the United States Treasury at its most recent auction, plus
three hundred (300) basis points. If no such 91-day Treasury Bills are then
being issued, the Discount Rate shall be the discount rate on Treasury Bills
then being issued for the period of time closest to ninety-one (91) days.
"Renewal Period" shall mean Renewal Period as defined in
Paragraph 5.
"Rent" shall mean, collectively, Basic Rent and Additional Rent.
"Requisition" shall mean any temporary requisition or
confiscation of the use or occupancy of any of the Leased Premises by any
governmental authority, civil or military, whether pursuant to an agreement with
such governmental authority in settlement of or under threat of any such
requisition or confiscation, or otherwise.
"S&P" shall mean Standard & Poors Corporation.
"Site Assessment" shall mean a Site Assessment as defined in
Paragraph 10(c).
"State" shall mean the State of California.
"Surviving Obligations" shall mean any obligations of Tenant
under this Lease, actual or contingent, which arise on or prior to the
expiration or prior termination of this Lease or which survive such expiration
or termination by their own terms.
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"Taking" shall mean (a) any taking or damaging of all or a
portion of any of the Leased Premises (i) in or by condemnation or other eminent
domain proceedings pursuant to any Law, general or special, or (ii) by reason of
any agreement with any condemnor in settlement of or under threat of any such
condemnation or other eminent domain proceeding, or (iii) by any other means, or
(b) any de facto condemnation. The Taking shall be considered to have taken
place as of the later of the date actual physical possession is taken by the
condemnor, or the date on which the right to compensation and damages accrues
under the law applicable to the Leased Premises.
"Term" shall mean the Term as defined in Paragraph 5.
"Termination Amount" shall mean the amount specified in Exhibit
"G" for the applicable Lease Year.
"Termination Date" shall mean Termination Date as defined in
Paragraph 18.
"Termination Event" shall mean a Termination Event as defined in
Paragraph 18.
"Termination Notice" shall mean Termination Notice as defined in
Paragraph 18(a).
"Third Party Purchaser" shall mean Third Party Purchaser as
defined in Paragraph 21(g).
3. Title and Condition.
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(a) The Leased Premises are demised and let subject to (i) the
Mortgage and Assignment presently in effect, (ii) the rights of any Persons in
possession of the Leased Premises, (iii) the existing state of title of any of
the Leased Premises, including any Permitted Encumbrances, (iv) any state of
facts which an accurate survey or physical inspection of the Leased Premises
might show, (v) all Legal Requirements, including any existing violation of any
thereof, and (vi) the condition of the Leased Premises as of the commencement of
the Term, without representation or warranty by Landlord.
(b) Tenant acknowledges that the Leased Premises is in good
condition and repair at the inception of this Lease. LANDLORD LEASES AND WILL
LEASE AND TENANT TAKES AND WILL TAKE THE LEASED PREMISES AS IS. TENANT
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ACKNOWLEDGES THAT LANDLORD (WHETHER ACTING AS LANDLORD HEREUNDER OR IN ANY OTHER
CAPACITY) HAS NOT MADE AND WILL NOT MAKE, NOR SHALL LANDLORD BE DEEMED TO HAVE
MADE, ANY WARRANTY OR REPRESENTATION, EXPRESS OR IMPLIED, WITH RESPECT TO ANY OF
THE LEASED PREMISES, INCLUDING ANY WARRANTY OR REPRESENTATION AS TO (i) ITS
FITNESS, DESIGN OR CONDITION FOR ANY PARTICULAR USE OR PURPOSE, (ii) THE QUALITY
OF THE MATERIAL OR WORKMANSHIP THEREIN, (iii) THE EXISTENCE OF ANY DEFECT,
LATENT OR PATENT, (iv) LANDLORD'S TITLE THERETO, (v) VALUE, (vi) COMPLIANCE WITH
SPECIFICATIONS, (vii) LOCATION, (viii) USE, (ix) CONDITION, (x) MERCHANTABILITY,
(xi) QUALITY, (xii) DESCRIPTION, (xiii) DURABILITY, (xiv) OPERATION, (xv) THE
EXISTENCE OF ANY HAZARDOUS SUBSTANCE, HAZARDOUS CONDITION OR HAZARDOUS ACTIVITY
OR (xvi) COMPLIANCE OF THE LEASED PREMISES WITH ANY LAW OR LEGAL REQUIREMENT;
AND ALL RISKS INCIDENT THERETO ARE TO BE BORNE BY TENANT. TENANT ACKNOWLEDGES
THAT THE LEASED PREMISES IS OF ITS
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SELECTION AND TO ITS SPECIFICATIONS AND THAT THE LEASED PREMISES HAS BEEN
INSPECTED BY TENANT AND IS SATISFACTORY TO IT. IN THE EVENT OF ANY DEFECT OR
DEFICIENCY IN ANY OF THE LEASED PREMISES OF ANY NATURE, WHETHER LATENT OR
PATENT, LANDLORD SHALL NOT HAVE ANY RESPONSIBILITY OR LIABILITY WITH RESPECT
THERETO OR FOR ANY INCIDENTAL OR CONSEQUENTIAL DAMAGES (INCLUDING STRICT
LIABILITY IN TORT). THE PROVISIONS OF THIS PARAGRAPH 3(b) HAVE BEEN NEGOTIATED,
AND ARE INTENDED TO BE A COMPLETE EXCLUSION AND NEGATION OF ANY WARRANTIES BY
LANDLORD, EXPRESS OR IMPLIED, WITH RESPECT TO ANY OF THE LEASED PREMISES,
ARISING PURSUANT TO THE UNIFORM COMMERCIAL CODE OR ANY OTHER LAW NOW OR
HEREAFTER IN EFFECT OR ARISING OTHERWISE.
(c) Tenant represents to Landlord that Tenant has examined the
title to the Leased Premises prior to the execution and delivery of this Lease
and has found the same to be satisfactory for the purposes contemplated hereby.
Tenant acknowledges that (i) fee simple insurable title (both legal and
equitable) is in Landlord and that Tenant has only the leasehold right of
possession and use of the Leased Premises as provided herein, (ii) to the
knowledge of Tenant, the Improvements conform to all material Legal Requirements
and all Insurance Requirements, (iii) to the knowledge of Tenant, all easements
necessary or appropriate for the use or operation of the Leased Premises have
been obtained, (iv) all contractors and subcontractors who have performed work
on or supplied materials to the Leased Premises have been or will have been
fully paid, and all materials and supplies have been or will have been fully
paid for, and no dispute currently exists with respect to any such contractor,
subcontractor or materials and supplies, (v) the Improvements have been fully
completed in all material respects in a workmanlike manner of first class
quality, and (vi) all Equipment necessary or appropriate for the use or
operation of the Leased Premises has been installed and is presently fully
operative in all material respects.
(d) Landlord hereby assigns to Tenant, without recourse or
warranty whatsoever, all assignable warranties, guaranties, indemnities and
similar rights (collectively, "Warranties") which Landlord may have against any
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manufacturer, seller, engineer, contractor or builder in respect of any of the
Leased Premises. Such assignment shall remain in effect until an Event of
Default occurs or until the expiration or earlier termination of this Lease,
whereupon such assignment shall cease and all such Warranties shall
automatically revert to Landlord. Tenant shall enforce the Warranties in
accordance with their respective terms. Landlord agrees, at Tenant's expense, to
cooperate with Tenant and take all other action necessary as specifically
requested by Tenant to enable Tenant to enforce all of Tenant's rights under any
of the Warranties, such rights of enforcement to be exclusive to Tenant, and
Landlord will not, during the Term, amend, modify or waive, or take any action
under, any of the Warranties without Tenant's prior written consent.
4. Use of Leased Premises; Quiet Enjoyment.
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(a) Tenant may occupy and use the Leased Premises for office
and administrative functions, including those functions typically occurring in
Tenant's headquarters complex, and uses incidental thereto, including, without
limitation, auditoriums, conference facilities, classrooms, computer and data
centers, engineering labs, product showrooms and sales centers, technical
support centers, employee cafeterias and dining facilities, fitness facilities
and similar amenities, and for no other purpose. Tenant shall not use or occupy
or permit any of the Leased Premises to be used or occupied, nor do or permit
anything to be done in or on any of the Leased Premises, in a manner which would
or might (i) violate any Law or Legal Requirement applicable to the Leased
Premises or occupancy thereof, (ii) make void or voidable or cause any insurer
to cancel any insurance required by this Lease, or make it impossible to obtain
any such
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insurance at commercially reasonable rates, (iii) cause structural injury to any
of the Improvements or (iv) constitute a public or private nuisance or waste.
(b) Subject to the provisions hereof, so long as no Event of
Default has occurred and is continuing, Tenant shall quietly hold, occupy and
enjoy the Leased Premises throughout the Term, without any hindrance, ejection
or molestation by Landlord with respect to matters that arise after the date
hereof; provided that Landlord, Lender or their respective agents may enter upon
and examine any of the Leased Premises at such reasonable times as Landlord or
Lender may select and upon reasonable notice to Tenant (except in the case of an
emergency, in which no notice shall be required) for the purpose of inspecting
the Leased Premises, verifying compliance or non-compliance by Tenant with its
obligations hereunder and the existence or non-existence of an Event of Default
or event which with the passage of time and/or notice would constitute an Event
of Default, showing the Leased Premises to prospective Lenders and purchasers
and taking such other action with respect to the Leased Premises as is permitted
by any provision hereof, and any such entry by Landlord or Lender or their
agents onto the Leased Premises shall be subject to Tenant's security
requirements and restrictions, and, if required by Tenant, a representative of
Tenant shall accompany Landlord during any such entry onto the Leased Premises.
(c) Tenant may from time to time own or hold under lease or
license from Persons other than Landlord furniture, equipment, trade fixtures
and personal property located on or about the Leased Premises, which shall not
be subject to this Lease. Landlord shall from time to time, promptly upon
Tenant's request, execute such instruments or agreements as Tenant or any
equipment lessor, supplier, vendor, lender or creditor may reasonably require
acknowledging that Landlord does not own or have any other right or interest in
or to such furniture, equipment, trade fixtures or personal property, and
Landlord hereby waives any right, title, lien or interest therein.
5. Term.
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(a) Subject to the provisions hereof, Tenant shall have and
hold the Leased Premises for an initial term (as extended or renewed in
accordance with the provisions hereof, being called the "Term") commencing on
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the date hereof (the "Commencement Date") and ending on the last day of the two
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hundred fortieth (240th) calendar month next following the date hereof (the
"Expiration Date").
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(b) Provided that if, on or prior to the Expiration Date or any
other Renewal Date (as hereinafter defined) this Lease shall not have been
terminated pursuant to any provision hereof, then on the Expiration Date and on
the tenth (10th) anniversary of the Expiration Date (the Expiration Date and
such anniversary being a "Renewal Date"), the Term shall be deemed to have
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been automatically extended for an additional period of ten (10) years (each
such period a "Renewal Period"), unless Tenant shall notify Landlord
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in writing in recordable form at least eighteen (18) months prior to such
upcoming Renewal Date that Tenant is terminating this Lease as of such upcoming
Renewal Date. Any such extension of the Term shall be subject to all of the
provisions of this Lease, as the same may be amended, supplemented or modified.
If a Casualty occurs within the period that is between eighteen (18) and twelve
(12) months prior to the expiration of the then current Term, the Leased
Premises cannot be restored by the expiration of the then current Term and
Tenant has elected not to extend the Term pursuant to Paragraph 5(b) for a
Renewal Period then, within the thirty (30) day period following the Casualty,
Tenant shall have the option by written notice to Landlord to further extend the
Term for such Renewal Period. Any such additional extension shall be subject to
the terms of this Lease, as the same may be amended.
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(c) If Tenant exercises its option not to extend or further
extend the Term, or if an Event of Default occurs, then Landlord shall have the
right during the remainder of the Term then in effect and, in any event,
Landlord shall have the right during the last year of the Term, to (i) advertise
the availability of the Leased Premises for sale or reletting and to erect upon
the Leased Premises signs indicating such availability and (ii) show the Leased
Premises to prospective purchasers or tenants or their agents at such reasonable
times as Landlord may select (and subject to the security provisions of Tenant
as provided for in Paragraph 4(b)).
6. Basic Rent. Tenant shall pay to Landlord, as basic rent for the
----------
Leased Premises during the Term, the amounts determined in accordance with
Exhibit "D" hereto ("Basic Rent"), commencing on the first day of the first
----------- ----------
month following the date hereof and continuing on the same day of each month
thereafter during the Term (each such day being a "Basic Rent Payment Date").
-----------------------
Each such rental payment shall be made during the term of the Initial Loan by
wire transfer of Federal Funds to the following account: First Union National
Bank, Philadelphia, PA; ABA: ▇▇▇-▇▇▇▇-▇▇; Account Name: GMAC Commercial Mortgage
Clearing House; Account No. ▇▇▇▇▇▇▇▇-3771-5; Reference: GMACCM Loan # 18931 -
One AMD Place; Attn: Customer Service or such other address as Initial Lender,
in its sole discretion shall direct (with notice of each such payment to
Landlord concurrent with the making thereof). After payment of the Initial Loan
in full, each such rental payment shall be made at Landlord's sole discretion,
(a) to Landlord at its address set forth above and/or to not more than one
Person in addition to Landlord, at such address and in such proportions as
Landlord may direct by thirty (30) days' prior written notice to Tenant (in
which event Tenant shall give Landlord notice of each such payment concurrent
with the making thereof), or (b) by wire transfer of Federal Funds to such
account(s) as Landlord may direct by thirty (30) days' prior notice to Tenant.
Pro rata Basic Rent for the period from the date hereof through the last day of
the month hereof shall be paid on the date hereof.
7. Additional Rent.
---------------
(a) Tenant shall pay and discharge, as additional rent
(collectively, "Additional Rent"):
----------------
(i) except as otherwise specifically provided herein,
all costs and expenses of Tenant, Landlord and any other Persons specifically
referenced herein which are incurred in connection or associated with (A) the
ownership, use, non-use, occupancy, possession, operation, condition, design,
construction, maintenance, alteration, repair or restoration of any of the
Leased Premises, (B) the performance of any of Tenant's obligations under this
Lease, (C) any sale or other transfer of any of the Leased Premises to Tenant
under this Lease, (D) any Condemnation proceedings, (E) the adjustment,
settlement or compromise of any insurance claims involving or arising from any
of the Leased Premises, (F) the prosecution, defense or settlement of any
litigation involving or arising from any of the Leased Premises, this Lease, or
the sale of the Leased Premises to Landlord, (G) the exercise or enforcement by
Landlord, its successors and assigns, of any of its rights under this Lease, (H)
any amendment to or modification or termination of this Lease made at the
request of Tenant, (I) Costs of Landlord's counsel and reasonable internal Costs
of Landlord incurred in connection with any act undertaken by Landlord (or its
counsel) at the request of Tenant, or incurred in connection with any act of
Landlord performed on behalf of Tenant, (J) the reasonable internal Costs of
Landlord incurred in connection with Tenant's failure to act promptly in an
emergency situation, and (K) any other items specifically required to be paid by
Tenant under this Lease;
(ii) after the date all or any portion of any
installment of Basic Rent is due and not paid, an amount equal to two percent
(2%) of the amount of such unpaid installment or portion thereof ("Late
----
Charge"), provided, however, that with respect to the first two late payments of
------
all or any portion of any installment of Basic Rent in any consecutive
9
twelve (12) month period, the Late Charge shall not be due and payable unless
the Basic Rent has not been paid within five (5) days following the due date
thereof;
(iii) a sum equal to any additional sums that are payable
by Landlord to a Lender under a Note by reason of Tenant's late payment or non-
payment of Basic Rent or by reason of an Event of Default (including any late
charge, default penalties, interest and fees of Lender's counsel), (A) which are
payable under the documents evidencing and securing the Initial Loan and (B)
which are payable under the documents evidencing and securing any subsequent
Loan (after payment in full of the Initial Loan), to the extent typically
charged by a lender;
(iv) interest at the rate (the "Default Rate") of two
------------
percent (2%) over the Prime Rate per annum on the following sums until paid in
full: (A) all overdue installments of Basic Rent from the respective due dates
thereof, (B) all overdue amounts of Additional Rent relating to obligations
which Landlord shall have paid on behalf of Tenant, from the date of payment
thereof by Landlord, and (C) all other overdue amounts of Additional Rent that
are payable to Landlord, from the date when any such amount becomes overdue;
(v) typical and customary charges of a lender in the
administration and servicing of a Loan and oversight of Lender's collateral
(e.g., escrow costs, property inspections, lockbox fees, trustee fees, tax
service costs, fees and expenses related to the resale of the Initial Loan by
Initial Lender, appraisal costs); and
(vi) costs required to maintain an independent director
for the managing member of Landlord.
(b) Tenant shall pay and discharge (i) any Additional Rent
referred to in Paragraph 7(a)(i) when the same shall become due, provided that
amounts which are billed to Landlord or any third party, but not to Tenant,
shall be paid within thirty (30) days after Landlord's demand for payment
thereof or, if later, when the same are due, and (ii) any other Additional Rent,
within thirty (30) days after Landlord's demand for payment thereof.
(c) In no event shall amounts payable under Paragraph 7(a)(ii),
(iii) and (iv) exceed the maximum amount permitted by applicable Law. Further,
in no event shall Tenant be required to pay to Landlord any item of Additional
Rent that Tenant is obligated to pay to any third party pursuant to any
provision of this Lease.
(d) Tenant shall have no obligation to pay for costs arising as
a result of Landlord's actions or decisions as long as such actions or decisions
do not arise as a result of Tenant's failure to perform its obligations under
this Lease (e.g., defeasance or assumption charges or costs in connection with
loan modifications requested by Landlord), costs associated with Landlord's
required reporting to Lender (e.g., financial statements), costs of refinancing
any Loan (e.g., commitment fees, loan fees, due diligence and transaction costs)
or costs arising as a consequence of a dispute between Landlord and Lender or a
default by Landlord under any Loan not, in either event, caused by a
corresponding default by Tenant under this Lease.
8. Net Lease; Non-Terminability.
----------------------------
(a) This is a net lease and all Monetary Obligations shall be
paid without notice or demand (except as otherwise provided herein) and without
set-off, counterclaim, recoupment, abatement, suspension, deferment, diminution,
deduction, reduction or defense (collectively, a "Set-Off").
-------
10
(b) Except as otherwise expressly provided herein, this Lease
and the rights of Landlord and the obligations of Tenant hereunder shall not be
affected by any event or for any reason, including the following: (i) any damage
to or theft, loss or destruction of any of the Leased Premises, (ii) any
Condemnation, (iii) any default on the part of Landlord hereunder or under any
Note, Mortgage, Assignment or any other agreement, (iv) any latent or other
defect in any of the Leased Premises, (v) the breach of any warranty of any
seller or manufacturer of any of the Equipment, (vi) any violation of any
provision of this Lease by Landlord, (vii) the bankruptcy, insolvency,
reorganization, composition, readjustment, liquidation, dissolution or winding-
up of, or other proceeding affecting, Landlord, (viii) the exercise of any
remedy, including foreclosure, under any Mortgage or Assignment, (ix) any action
with respect to this Lease (including the disaffirmance hereof) which may be
taken by Landlord, any trustee, receiver or liquidator of Landlord or any court
under the Federal Bankruptcy Code or otherwise, (x) any interference with
Tenant's use of the Leased Premises, (xi) market or economic changes or (xii)
any other cause, whether similar or dissimilar to the foregoing, any present or
future Law to the contrary notwithstanding; provided, however that the foregoing
is not intended to release Landlord of liability in the event of any breach or
default by Landlord under this Lease.
(c) The obligations of Tenant hereunder shall be separate and
independent covenants and agreements, all Monetary Obligations shall continue to
be payable in all events (or, in lieu thereof, Tenant shall pay amounts equal
thereto), and the obligations of Tenant hereunder shall continue unaffected
unless the requirement to pay or perform the same shall have been terminated
pursuant to an express provision of this Lease. All Rent payable by Tenant
hereunder shall constitute "rent" for all purposes (including Section 502(b)(6)
of the Federal Bankruptcy Code).
(d) Except as otherwise expressly provided herein, Tenant shall
have no right and hereby waives all rights which it may have under any Law (i)
to quit, terminate or surrender this Lease or any of the Leased Premises, or
(ii) to any Set-Off of any Monetary Obligations.
9. Payment of Impositions.
----------------------
(a) Tenant shall, before interest or penalties are due thereon,
pay and discharge all taxes (including real and personal property, franchise,
sales and rent taxes), all charges for any easement or agreement maintained for
the benefit of any of the Leased Premises, all assessments and levies, all
permit, inspection and license fees, all rents and charges for water, sewer,
utility and communication services relating to any of the Leased Premises, and
all other public charges whether of a like or different nature, even if
unforeseen or extraordinary, which arise during the Term and are imposed upon or
assessed against (i) Tenant, (ii) Tenant's leasehold interest in the Leased
Premises, (iii) any of the Leased Premises, (iv) Landlord as a result of or
arising in respect of the acquisition, ownership, occupancy, leasing, use or
possession of any of the Leased Premises, any activity conducted on any of the
Leased Premises, or the Rent, or (v) any Lender by reason of any Note, Mortgage,
Assignment or other document evidencing or securing a Loan and which (as to this
clause (v)) a borrower would customarily agree to pay (collectively, the
"Impositions"); provided, that nothing herein shall obligate Tenant to pay
------------
(A) income, excess profits or other taxes of Landlord (or Lender) which are
determined on the basis of Landlord's (or Lender's) net income or net worth
(unless such taxes are in lieu of or a substitute for any other tax, assessment
or other charge upon or with respect to the Leased Premises which, if it were in
effect, would be payable by Tenant under the provisions hereof or by the terms
of such tax, assessment or other charge), (B) any estate, inheritance,
succession, gift or similar tax imposed on Landlord or (C) any capital gains,
transfer or deed tax imposed on Landlord in connection with the sale, exchange
or other disposition of the Leased Premises to any Person, except that Tenant
shall be responsible to pay any increase in real estate taxes and assessments
that are imposed as a result of a change of ownership of the Leased Premises
11
occurring after the tenth (10th) Lease Year, but not with respect to any change
of ownership occurring prior thereto. If any Imposition may be paid in
installments without interest or penalty, Tenant shall have the option to pay
such Imposition in installments; in such event, Tenant shall be liable only for
those installments which accrue or become due and payable during the Term.
Tenant shall prepare and file all tax reports required by governmental
authorities which relate to the Impositions. Tenant shall deliver to Landlord
(1) copies of all settlements and notices pertaining to the Impositions which
may be issued by any governmental authority within twenty (20) days after
Tenant's receipt thereof, (2) satisfactory evidence (which may be written notice
from a tax service acceptable to Landlord and Lender) of payment of all taxes
required to be paid by Tenant hereunder no later than thirty (30) days following
the date the same would become delinquent, showing the same to have been paid
prior to delinquency and (3) receipts for payment of all other Impositions
promptly following Landlord's request therefor.
(b) Landlord shall have the right, (i) following the occurrence
of an Event of Default with respect to Escrow Charges described in clause (A) of
the following sentence and (ii) if Landlord or Lender determines that the Leased
Premises are not being maintained in accordance with current standards for
similarly situated office buildings prudently managed so that the condition of
the Leased Premises is not as required by Paragraph 12 (a) hereof, to require
Tenant to pay to Landlord, or to Lender if directed by Landlord, an additional
monthly sum (each an "Escrow Payment") sufficient to pay the Escrow Charges (as
--------------
hereinafter defined) as they become due. As used herein, "Escrow Charges" shall
--------------
mean (A) real estate taxes on the Leased Premises or payments in lieu thereof
and premiums on any insurance required by this Lease, and (B) amounts required
by a Lender on the basis of an inspection of the Leased Premises or as otherwise
reasonably determined by Lender which shall be deposited in a reserve or
reserves such as a capital improvement reserve, a replacement reserve and/or a
repair reserve (such amounts in this clause (B) collectively referred to as
"Reserve Funds"). Landlord shall determine the amount of the Escrow Charges and
of each Escrow Payment. As long as the Escrow Payments are being held by
Landlord the Escrow Payments shall not be commingled with other funds of
Landlord or other Persons and interest thereon shall accrue for the benefit of
Tenant from the date such monies are received and invested until the date such
monies are disbursed to pay Escrow Charges. If the Escrow Payments are held by
the Lender, they shall be held and administered in accordance with Lender's
customary procedures for similar accounts. Landlord shall apply the Escrow
Payments to the payment of the Escrow Charges in such order or priority as
Landlord shall determine or as required by law; provided, however, that any
Reserve Funds shall only be used for improvements or repairs for which such
Reserve Funds have been deposited, and any remaining balance of any such Reserve
Funds shall be disbursed to Tenant at such time as such improvements or repairs
have been completed so long as no Event of Default then exists. If at any time
the Escrow Payments theretofore paid to Landlord shall be insufficient for the
payment of the Escrow Charges, Tenant, within fifteen (15) days after Landlord's
demand therefor, shall pay the amount of the deficiency to Landlord.
10. Compliance with Laws and Easement Agreements; Environmental
-----------------------------------------------------------
Matters.
--------
(a) Tenant shall, at its expense, comply with and conform to,
and cause the Leased Premises and any other Person occupying any part of the
Leased Premises to comply with and conform to, all Insurance Requirements and
Legal Requirements (including all applicable Environmental Laws). Tenant shall
not at any time (i) cause, permit or suffer to occur any Environmental
Violation. or (ii) permit any sublessee, assignee or other Person occupying the
Leased Premises under or through Tenant to cause, permit or suffer to occur any
Environmental Violation and, at the request of Landlord or Lender, Tenant shall
promptly remediate or undertake any other appropriate response action to correct
any existing Environmental Violation. Tenant shall permit Persons who are
potentially responsible (any such Person, a "PRP") for existing Environmental
---
Violations on upgradient properties and their agents
12
access to the Leased Premises for the purpose of conducting Site Assessments
upon and remediation to the Leased Premises . Tenant shall upon Landlord's or
Lender's request provide Landlord and Lender with copies of all filings which
Tenant is required to submit to governmental agencies and all permits, licenses
and certificates which Tenant is required to obtain from governmental agencies,
in both cases with respect to the Leased Premises. Tenant shall give prompt
notice to Landlord and Lender of receipt by Tenant of any notice related to any
Legal Requirements and of the commencement of any proceedings or investigations
which relate to compliance with Legal Requirements. Any and all reports prepared
for or by Landlord with respect to the Leased Premises shall be for the sole
benefit of Landlord and Lender and no other Person shall have the right to rely
on any such reports.
(b) Tenant, at its sole cost and expense, will at all times
promptly and faithfully abide by, discharge and perform all of the covenants,
conditions and agreements contained in any Easement Agreement on the part of
Landlord or the occupier to be kept and performed thereunder and shall enter
into access agreements for the purposes described in the foregoing Paragraph
10(a), such agreements to be subject to the reasonable approval of Landlord.
Tenant will not alter, modify, amend or terminate any Easement Agreement, give
any consent or approval thereunder, or enter into any new Easement Agreement
without, in each case, the prior written consent of Landlord, which consent
shall not be unreasonably withheld (provided, however, that Landlord hereby
consents to the Site Access Agreement dated March 21, 1997 between AMD
International Sales & Service, Ltd., and Advanced Micro Devices, Inc. and 999
Arques Corporation and consents to the Site Access Agreement dated March 17,
1997 between AMD International Sales & Service, Ltd. and Advanced Micro Devices,
Inc. and CAE Electronics Inc.). Landlord shall cooperate with Tenant with
respect to the creation of easements and/or rights of way for ingress and egress
to and from the Leased Premises or in favor of municipal or other governmental
authorities or public service or utility companies for the installation of water
lines, sewers, electricity, telephone, gas, steam or easements for other
facilities and utilities reasonably required for the use and occupancy of the
Leased Premises.
(c) Upon prior written notice from Landlord, Tenant shall
permit such persons as Landlord may designate (who shall be a regional or
national environmental audit firm designated by Lender and who shall be ▇▇▇▇▇▇▇
Consulting or another firm reasonably acceptable to Tenant) ("Site Reviewers")
--------------
to visit the Leased Premises and perform environmental site investigations,
audits and assessments ("Site Assessments") on the Leased Premises for the
----------------
purpose of determining whether there exists on the Leased Premises any
Environmental Violation or any condition which could result in any Environmental
Violation. Such Site Assessments may include both above and below the ground
testing for Environmental Violations and such other tests as may be necessary,
in the reasonable opinion of the Site Reviewers, to conduct the Site
Assessments; provided, however, that any such testing to be undertaken in
connection with any Site Assessment shall be conducted in such a manner as to
minimize any interference with Tenant's business operations at the Leased
Premises; and provided, further, that such Site Assessments shall not be
conducted more frequently than once every 24 months unless Landlord is required
to undertake a Site Assessment as a condition of obtaining financing or
refinancing, or in connection with a sale of the Leased Premises or if required
by a Lender. In such cases, the Site Assessment may be conducted by Landlord at
any time. The Site Assessment shall be limited to a visual inspection and review
of records unless (i) Landlord or Lender has reasonable cause to believe that an
Environmental Violation exists at the Leased Premises; (ii) intrusive testing is
required to be undertaken as a condition of Landlord obtaining financing or
refinancing or of a proposed sale of the Leased Premises or if required by a
Lender; or (iii) such testing is conducted within nine (9) months of the
expiration of the Lease Term, in which case such Site Assessment may include the
testing described above. Tenant shall supply to the Site Reviewers such
historical and operational information regarding the Leased Premises as may be
reasonably requested by the Site Reviewers to facilitate the Site Assessments,
and shall make available for meetings with the Site Reviewers appropriate
personnel having
13
knowledge of such matters. The reasonable cost of performing and reporting Site
Assessments shall be paid by Tenant, except that Tenant shall not be responsible
to pay the cost of performing and reporting Site Assessments required in
connection with any sale of the Leased Premises.
(d) If an Environmental Violation (other than ground water
contamination which has migrated to the Leased Premises from off-site sources
unless Tenant is or has been required by a governmental authority to remediate
such contamination) occurs or is found to exist and, in Landlord's reasonable
judgment, the cost of remediation of, or other response action with respect to,
the same is likely to exceed $1,000,000 and at the time of such remediation
Tenant does not have a publicly traded, unsecured senior debt rating of "Baa2"
or better from ▇▇▇▇▇'▇ or a rating of "BBB" or better from S&P, Tenant shall
provide to Landlord, within thirty (30) days after Landlord's request therefor,
adequate financial assurances that Tenant will effect such remediation in
accordance with applicable Environmental Laws. Such financial assurances shall
be a bond or letter of credit reasonably satisfactory to Landlord in form and
substance and in an amount equal to or greater than Landlord's reasonable
estimate, based upon a Site Assessment performed pursuant to Paragraph 10(c), of
the anticipated cost of such remedial action.
(e) Notwithstanding any other provision of this Lease, if an
Environmental Violation occurs (other than ground water contamination which has
migrated to the Leased Premises from off-site sources unless Tenant is or has
been required by a governmental authority to remediate such contamination) or is
found to exist and the Term would otherwise terminate or expire, then, at the
option of Landlord, the Term shall be automatically extended beyond the date of
termination or expiration and this Lease shall remain in full force and effect
beyond such date until the earlier to occur of (i) the completion of all
remedial action in accordance with applicable Environmental Laws or (ii) one (1)
year from the date on which this Lease would otherwise terminate or expire so
long as on or before such date Tenant deposits with Landlord an amount
determined by the Site Reviewer to be reasonably required to complete such
remediation.
(f) If Tenant fails to correct any Environmental Violation
which occurs or is found to exist, Landlord shall have the right (but no
obligation) to take any and all actions as Landlord shall deem reasonably
necessary or advisable in order to cure such Environmental Violation.
(g) Tenant shall notify Landlord promptly after becoming aware
of any Environmental Violation (or alleged Environmental Violation) or
noncompliance with any of the covenants contained in this Paragraph 10 and shall
forward to Landlord immediately upon receipt thereof copies of all orders,
reports, notices, permits, applications or other communications relating to any
such violation or noncompliance.
(h) All future leases, subleases or concession agreements
relating to the Leased Premises entered into by Tenant shall contain covenants
of the other party not to at any time (i) cause any Environmental Violation to
occur or (ii) permit any Person occupying the Leased Premises through said
subtenant or concessionaire to cause any Environmental Violation to occur.
11. Liens; Recording.
----------------
(a) Tenant shall not, directly or indirectly whether by any act
or omission, create or permit to be created or to remain and shall promptly
discharge or remove any lien, levy or encumbrance on any of the Leased Premises
or on any Rent or any other sums payable by Tenant under this Lease, other than
any Mortgage or Assignment, the Permitted Encumbrances and any mortgage, lien,
encumbrance or other charge created by or resulting from
14
any act or omission of Landlord. NOTICE IS HEREBY GIVEN THAT LANDLORD SHALL NOT
BE LIABLE FOR ANY LABOR, SERVICES OR MATERIALS FURNISHED OR TO BE FURNISHED TO
TENANT OR TO ANYONE HOLDING OR OCCUPYING ANY OF THE LEASED PREMISES THROUGH OR
UNDER TENANT, AND THAT NO MECHANICS' OR OTHER LIENS FOR ANY SUCH LABOR, SERVICES
OR MATERIALS SHALL ATTACH TO OR AFFECT THE INTEREST OF LANDLORD IN AND TO ANY OF
THE LEASED PREMISES. LANDLORD MAY AT ANY TIME, AND AT LANDLORD'S REQUEST TENANT
SHALL PROMPTLY, POST ANY NOTICES ON THE LEASED PREMISES REGARDING SUCH NON-
LIABILITY OF LANDLORD.
(b) Landlord and Tenant shall execute, acknowledge, deliver and
record, file or register (collectively, "record") all such instruments as may be
------
required or permitted by any present or future Law in order to evidence the
respective interests of Landlord and Tenant in the Leased Premises, and shall
cause a memorandum of this Lease (or, if such a memorandum cannot be recorded,
this Lease), and any supplement hereto or thereto, to be recorded in such manner
and in such places as may be required or permitted by any present or future Law
in order to protect the validity and priority of this Lease.
12. Maintenance and Repair.
----------------------
(a) Tenant shall at all times maintain the Leased Premises and
the Adjoining Property in as good repair and appearance as they are in on the
date hereof and after completion of any deferred maintenance items required by
Initial Lender and fit to be used for their intended use in accordance with the
better of the practices generally recognized as then acceptable by other
companies in its industry or the then current standards for similarly situated
office buildings prudently managed, and, in the case of the Equipment, in as
good mechanical condition as it was on the later of the date hereof or the date
of its installation, except for ordinary wear and tear. Tenant shall take every
other action necessary or appropriate for the preservation and safety of the
Leased Premises. Tenant shall make all Alterations of every kind and nature,
whether foreseen or unforeseen, which may be required to comply with the
foregoing requirements of this Paragraph 12(a) whether disclosed by Landlord or
Tenant or as a consequence of any inspection by Lender promptly after the need
for such Alterations becomes known to Landlord or Tenant. Any Alterations
required to be made as a result of any inspection by Lender shall be commenced
within thirty (30) days from receipt of notice from Landlord or Lender and
thereafter diligently pursued to completion. Landlord shall not be required to
make any Alteration, whether foreseen or unforeseen, or to maintain any of the
Leased Premises or Adjoining Property in any way, and Tenant hereby expressly
waives any right which may be provided for in any Law now or hereafter in effect
to make Alterations at the expense of Landlord or to require Landlord to make
Alterations. Any Alteration made by Tenant pursuant to this Paragraph 12 shall
be made in conformity with the provisions of Paragraph 13 and the requirements
of any Lender.
(b) If any Improvement, now or hereafter constructed, shall (i)
encroach upon any setback or any property, street or right-of-way adjoining the
Leased Premises, (ii) violate the provisions of any restrictive covenant
affecting the Leased Premises, (iii) hinder or obstruct any easement or
right-of-way to which any of the Leased Premises is subject or (iv) impair the
rights of others in, to or under any of the foregoing, Tenant shall, promptly
after receiving notice or otherwise acquiring knowledge thereof, either (A)
obtain from all necessary parties waivers or settlements of all claims,
liabilities and damages resulting from each such encroachment, violation,
hindrance, obstruction or impairment, whether the same shall affect Landlord,
Tenant or both, or (B) take such action as shall be necessary to remove all such
encroachments, hindrances or obstructions and to end all such violations or
impairments, including, if necessary, making Alterations.
15
(c) No later than June 30, 1999, Tenant shall repair the roof
membrane in the Improvements, and no later than June 30, 2000 shall remove the
tree roots in the parking lot or otherwise repair the damage to the parking lot
caused by tree roots, both as specified in that certain report prepared by
▇▇▇▇▇▇▇ Consulting, Inc. and dated October 28, 1998.
13. Alterations and Improvements.
----------------------------
(a) Tenant shall have the right, without having obtained the
prior written consent of Landlord and Lender and provided that no Event of
Default then exists, to make (i) non-structural Alterations that do not affect
the structural integrity of the Improvements, or adversely affect any of the
mechanical or electrical systems of the Improvements, (ii) Alterations that are
required in order to comply with Law, (iii) structural Alterations or a series
of related structural Alterations that, as to any such structural Alterations or
series of related structural Alterations, do not cost in excess of $500,000 and
that do not affect the structural integrity of the Improvements or adversely
affect any of the mechanical or electrical systems in the Improvements and (iv)
to install Equipment in the Improvements or accessions to the Equipment that, as
to such Equipment or accessions, do not cost in excess of $500,000, so long as
at the time of construction or installation of any such Equipment or Alterations
no Event of Default exists and the value and utility of the Leased Premises is
not diminished thereby. If the cost of any structural Alterations, series of
related structural Alterations, Equipment or accessions thereto is in excess of
$500,000, the prior written approval of Landlord and Lender shall be required,
such approval not to be unreasonably withheld or delayed. Tenant shall not
construct upon the Land any additional buildings without having first obtained
the prior written consent of Landlord and Lender.
(b) If Tenant makes any Alterations pursuant to this Paragraph
13 or Paragraph 36 or as required by Paragraph 12 or 17 (such Alterations and
actions being hereinafter collectively referred to as "Work"), whether or not
----
Landlord's consent is required, then (i) the market value of the Leased Premises
shall not be lessened by any such Work or its usefulness impaired, (ii) all such
Work shall be performed by Tenant in a good and workmanlike manner, (iii) all
such Work shall be expeditiously completed in compliance with all Legal
Requirements, (iv) all such Work shall comply with the Insurance Requirements,
(v) if any such Work involves the replacement of Equipment or parts thereto, all
replacement Equipment or parts shall have a value and useful life equal to the
greater of (A) the value and useful life on the date hereof of the Equipment
being replaced or (B) the value and useful life of the Equipment being replaced
immediately prior to the occurrence of the event which required its replacement,
(vi) Tenant shall promptly discharge or remove all liens filed against any of
the Leased Premises arising out of such Work, (vii) Tenant shall procure and pay
for all permits and licenses required in connection with any such Work, (viii)
all such Work shall be the property of Landlord and shall be subject to this
Lease, and Tenant shall execute and deliver to Landlord any document requested
by Landlord evidencing the assignment to Landlord of all estate, right, title
and interest (other than the leasehold estate created hereby) of Tenant or any
other Person thereto or therein, and (ix) with respect to Alterations or a
series of related Alterations that cost in excess of $500,000, Tenant shall
comply, to the extent reasonably requested by Landlord or required by this
Lease, with the provisions of Paragraph 19(a), whether or not such Work involves
restoration of the Leased Premises.
14. Permitted Contests. Notwithstanding any other provision of this
------------------
Lease, Tenant shall not be required to (a) pay any Imposition, (b) discharge or
remove any lien referred to in Paragraph 11 or 13 or (c) take any action with
respect to any encroachment, violation, hindrance, obstruction or impairment
referred to in Paragraph 12(b) (such non-compliance with the terms hereof being
hereinafter referred to collectively as "Permitted Violations"), so long as at
--------------------
the time of such contest no Event of Default exists and so long as Tenant shall
contest, in good faith, the existence, amount or validity thereof, the amount of
the damages caused thereby, or the
16
extent of its or Landlord's liability therefor by appropriate proceedings which
shall operate during the pendency thereof to prevent or stay (i) the collection
of, or other realization upon, the Permitted Violation so contested, (ii) the
sale, forfeiture or loss of any of the Leased Premises or any Rent to satisfy or
to pay any damages caused by any Permitted Violation, (iii) any interference
with the use or occupancy of any of the Leased Premises, (iv) any interference
with the payment of any Rent, or (v) the cancellation or increase in the rate of
any insurance policy or a statement by the carrier that coverage will be denied.
Tenant shall provide Landlord security which is satisfactory, in Landlord's
reasonable judgment, to assure that such Permitted Violation is corrected,
including all Costs, interest and penalties that may be incurred or become due
in connection therewith. While any proceedings which comply with the
requirements of this Paragraph 14 are pending and the required security is held
by Landlord, Landlord shall not have the right to correct any Permitted
Violation thereby being contested unless Landlord is required by law to correct
such Permitted Violation and Tenant's contest does not prevent or stay such
requirement as to Landlord. Each such contest shall be promptly and diligently
prosecuted by Tenant to a final conclusion, except that Tenant, so long as the
conditions of this Paragraph 14 are at all times complied with, has the right to
attempt to settle or compromise such contest through negotiations. Tenant shall
pay any and all losses, judgments, decrees and Costs in connection with any such
contest and shall, promptly after the final determination of such contest, fully
pay and discharge the amounts which shall be levied, assessed, charged or
imposed or be determined to be payable therein or in connection therewith,
together with all penalties, fines, interest and Costs thereof or in connection
therewith, and perform all acts the performance of which shall be ordered or
decreed as a result thereof. No such contest shall subject Landlord to the risk
of any civil or criminal liability.
15. Indemnification.
---------------
(a) With respect to any action or event which arises or occurs
prior to the expiration of the Term or any earlier termination of this Lease
and/or any consequences thereof, whether ascertainable prior to or at any time
after such expiration of the Term or earlier termination of the Lease, Tenant
shall pay, protect, indemnify, defend, save and hold harmless Landlord, Lender
and all other Persons described in Paragraph 30 (each an "Indemnitee") from and
----------
against any and all liabilities, losses, damages (including punitive damages),
penalties, Costs (including reasonable attorneys' fees and costs), causes of
action, suits, claims, demands or judgments of any nature whatsoever, howsoever
caused, unless caused by the gross negligence or willful misconduct of the
Landlord or any other Indemnitee, without regard to the form of action and
whether based on strict liability, negligence or any other theory of recovery at
law or in equity, arising from (i) any matter pertaining to the acquisition (or
the negotiations leading thereto), ownership, use, non-use, occupancy,
operation, condition, design, construction, maintenance, repair or restoration
of the Leased Premises or Adjoining Property, (ii) any casualty in any manner
arising from the Leased Premises or Adjoining Property, whether or not
Indemnitee has or should have knowledge or notice of any defect or condition
causing or contributing to said casualty, (iii) any violation by Tenant of any
provision of this Lease, any contract or agreement relating to the Leased
Premises to which Tenant is a party, any Legal Requirement or any Permitted
Encumbrance or any encumbrance Tenant consented to or any provision of the
Mortgage or Assignment that is binding upon Tenant or (iv) any alleged,
threatened or actual Environmental Violation, including (A) liability for
response costs and for costs of removal and remedial action incurred by the
United States Government, any state or local governmental unit or any other
Person, or damages from injury to or destruction or loss of natural resources,
including the reasonable costs of assessing such injury, destruction or loss,
incurred pursuant to Section 107 of CERCLA, or any successor section or act or
provision of any similar state or local Law, (B) liability for costs and
expenses of abatement, correction or clean-up, fines, damages, response costs or
penalties which arise from the provisions of any of the other Environmental Laws
and (C) liability for personal injury or property damage arising under
17
any statutory or common-law tort theory, including damages assessed for the
maintenance of a public or private nuisance or for carrying on of a dangerous
activity.
(b) In case any action or proceeding is brought against any
Indemnitee by reason of any such claim, (i) Tenant may, except in the event of a
conflict of interest or a dispute between Tenant and any such Indemnitee or
during the continuance of an Event of Default, retain its own counsel and defend
such action (it being understood that Landlord may, at its own cost, employ
counsel of its choice to monitor the defense of any such action) and (ii) such
Indemnitee shall notify Tenant to resist or defend such action or proceeding by
retaining counsel reasonably satisfactory to such Indemnitee, and such
Indemnitee will cooperate and assist in the defense of such action or proceeding
if reasonably requested so to do by Tenant. In the event of a conflict of
interest or dispute or during the continuance of an Event of Default, Landlord
shall have the right to select counsel, and the reasonable cost of such counsel
shall by paid by Tenant.
(c) The obligations of Tenant under this Paragraph 15 with
respect to any action or event which arises or occurs prior to the expiration of
the Term or any earlier termination of this Lease and/or the consequences
thereof, shall survive any termination, expiration or rejection in bankruptcy of
this Lease.
16. Insurance.
---------
(a) Tenant shall maintain the following insurance on or in
connection with the Leased Premises:
(i) Insurance against physical loss or damage to the
Improvements and Equipment as provided under a standard "All Risk" property
policy including but not limited to flood (if the Leased Premises is in a flood
zone) in amounts not less than the actual replacement cost of the Improvements
and Equipment. Such policies shall contain Replacement Cost and Agreed Amount
Endorsements and shall contain deductibles as may be recommended by Tenant's
insurance broker and approved by Landlord and Lender, such approval not to be
unreasonably withheld and in any event not less than $100,000. In addition,
Tenant shall maintain earthquake coverage (which may include California real
estate in addition to the Leased Premises) of not less than $25,000,000 with a
deductible equal to the lesser of $10,000,000 or 5% of the casualty loss,
provided that proceeds received from any earthquake casualty in an amount equal
to the product of the probable maximum loss factor for the Improvements
multiplied by the replacement cost of the Improvements (but in no event more
than the cost of the restoration of the Improvements) shall be allocated by
Tenant for restoration of the Leased Premises prior to allocation of such
proceeds to restoration of any other improvements insured under such policy.
(ii) Commercial General Liability Insurance (including
but not limited to Incidental Medical Malpractice and Host Liquor Liability) and
Business Automobile Liability Insurance (including Non-Owned and Hired
Automobile Liability) against claims for personal and bodily injury, death or
property damage occurring on, in or as a result of the use of the Leased
Premises, in an amount not less than $15,000,000 per occurrence/annual aggregate
and all other coverage extensions that are usual and customary for properties of
this size and type provided, however, that the Landlord shall have the right to
require such higher limits as may be reasonable and customary for properties of
this size and type.
(iii) Workers' compensation insurance covering employees
of Tenant in connection with their employment on or about any of the Leased
Premises for which claims for death, disease or bodily injury may be asserted
against Landlord, Tenant or any of the Leased Premises or, in lieu of such
Workers' Compensation Insurance, a program of
18
self-insurance complying with the rules, regulations and requirements of the
appropriate agency of the State.
(iv) Comprehensive Boiler and Machinery Insurance on any
of the Equipment or any other equipment on or in the Leased Premises, in an
amount not less than $5,000,000 per accident for damage to property. Such
policies shall include at least $5,000,000 per accident for Off-Premises Service
Interruption, "System Breakdowns" and Expediting Expenses.
(v) Business Income/Extra Expense Insurance at limits
sufficient to cover 100% of the period of indemnity not less than eighteen (18)
months from time of loss. Such insurance shall name Landlord as loss payee
solely with respect to Rent payable to or for the benefit of Landlord as its
interest appears under this Lease.
(vi) During any period in which substantial Alterations
at the Leased Premises are being undertaken, builder's risk insurance covering
the total completed value including any "soft costs" with respect to the
Improvements being altered or repaired (on a completed value, non-reporting
basis), replacement cost of work performed and equipment, supplies and materials
furnished in connection with such construction or repair of Improvements or
Equipment, together with such "soft cost" endorsements and such other
endorsements as Landlord may reasonably require and general liability, worker's
compensation and automobile liability insurance with respect to the Improvements
being constructed, altered or repaired.
(vii) Such other insurance (or other terms with respect
to any insurance required pursuant to this Paragraph 16, including without
limitation amounts of coverage, deductibles, form of mortgagee clause) on or in
connection with any of the Leased Premises as Landlord or Lender may reasonably
require, which at the time is usual and commonly obtained in connection with
properties similar in type of building size, use and location to the Leased
Premises.
(b) The insurance required by Paragraph 16(a) shall be written
by one or more (i) domestic primary insurer(s) having an investment grade rating
of "AA" or a comparable claims paying ability assigned by S&P or equivalent
credit rating agency approved by Landlord and Lender, and approved to write
insurance policies by the State Insurance Department for the State or (ii) such
other insurer(s) as may be otherwise approved by Landlord and Lender, such
approval not to be unreasonably withheld. The insurance policies (i) shall be
for such terms as Landlord may reasonably approve and (ii) shall be in amounts
sufficient at all times to satisfy any coinsurance requirements thereof. The
insurance referred to in Paragraphs 16(a)(i), 16(a)(iv) and 16(a)(vi) shall name
Landlord as Owner and Lender as loss payee and Tenant as its interest may
appear. The insurance referred to in Paragraph 16(a)(ii) shall name Landlord and
Lender as additional insureds, and the insurance referred to in Paragraph
16(a)(v) shall name Landlord (or Lender, if requested by Landlord) as loss payee
to the extent provided in Paragraph 16(a)(v). If said insurance or any part
thereof shall expire, be withdrawn, become void, voidable, unreliable or unsafe
for any reason, including a breach of any condition thereof by Tenant or the
failure or impairment of the capital of any insurer, or if for any other reason
whatsoever said insurance shall become reasonably unsatisfactory to Landlord,
Tenant shall immediately obtain new or additional insurance reasonably
satisfactory to Landlord.
(c) Each insurance policy referred to in clauses (i), (iv), (v)
and (vi) of Paragraph 16(a) shall contain standard non-contributory mortgagee
clauses in favor of and acceptable to Lender. Each policy required by any
provision of Paragraph 16(a), except clause (iii) thereof, shall provide that it
may not be cancelled or terminated, substantially modified or allowed to lapse
on any renewal date except after thirty (30) days' prior notice to Landlord and
Lender. Each such policy shall also provide that any loss otherwise payable
thereunder shall be
19
payable notwithstanding (i) any act or omission of Landlord or Tenant which
might, absent such provision, result in a forfeiture of all or a part of such
insurance payment, (ii) the occupation or use of any of the Leased Premises for
purposes more hazardous than those permitted by the provisions of such policy,
(iii) any foreclosure or other action or proceeding taken by Lender pursuant to
any provision of the Mortgage, Note, Assignment or other document evidencing or
securing the Loan upon the happening of an event of default therein or (iv) any
change in title to or ownership of any of the Leased Premises.
(d) Tenant shall pay as they become due all premiums for the
insurance required by Paragraph 16(a) (and in any event not less than 30 days
prior to cancellation for non-payment), shall renew or replace each policy and
deliver to Landlord evidence of the renewal or replacement of each such policy
prior to the stated expiration thereof (which evidence may consist of a binder,
certificate or replacement policy) and, upon receipt shall promptly deliver to
Landlord all original certificates of insurance.
(e) Anything in this Paragraph 16 to the contrary
notwithstanding, any insurance which Tenant is required to obtain pursuant to
Paragraph 16(a) may be carried under a "blanket" or umbrella policy or policies
covering other properties or liabilities of Tenant, provided that such "blanket"
or umbrella policy or policies otherwise comply with the provisions of this
Paragraph 16 and provided further that Tenant shall provide to Landlord a
Statement of Values which shall be reviewed annually and amended as necessary
based on Replacement Cost Valuations. A certified copy of each such "blanket" or
umbrella policy shall promptly be delivered to Landlord, or if requested by
Landlord, to Lender.
(f) Tenant shall promptly comply with and conform to (i) all
provisions of each insurance policy required by this Paragraph 16 and (ii) all
requirements of the insurers thereunder applicable to Landlord, Tenant or any of
the Leased Premises or to the use, manner of use, occupancy, possession,
operation, maintenance, alteration or repair of any of the Leased Premises, even
if such compliance necessitates Alterations or results in interference with the
use or enjoyment of any of the Leased Premises.
(g) Tenant shall not carry separate insurance concurrent in
form or contributing in the event of a Casualty with that required in this
Paragraph 16 unless (i) Landlord and Lender are included therein as named
insureds, with loss payable as provided herein, and (ii) such separate insurance
complies with the other provisions of this Paragraph 16. Tenant shall promptly
notify Landlord of such separate insurance and shall deliver to Landlord a
certified copy of policies thereof.
(h) All policies shall contain effective waivers by the carrier
against all claims for insurance premiums against Landlord and Lender and shall
contain full waivers of subrogation against the Landlord and Lender.
(i) All proceeds of insurance payable under clause (v) with
respect to the Rent shall be payable to Landlord or, if required by the
Mortgage, to Lender. Proceeds of insurance required under clauses (i) and (iv)
of Paragraph 16(a) and proceeds attributable to Builder's Risk insurance (other
than its general liability coverage provisions) under clause (vi) of Paragraph
16(a) shall be payable to Landlord (or Lender) and applied as set forth in
Paragraph 17. Tenant shall apply the Net Award to restoration of the Leased
Premises in accordance with the applicable provisions of this Lease.
17. Casualty and Condemnation.
-------------------------
(a) If any Casualty to the Leased Premises occurs, Tenant shall
give Landlord and Lender immediate notice thereof. So long as no Event of
Default exists Tenant is
20
hereby authorized to adjust, collect and compromise all claims under any of the
insurance policies required by Paragraph 16(a) and to execute and deliver on
behalf of Landlord all necessary proofs of loss, receipts, vouchers and releases
required by the insurers and Landlord shall have the right to join with Tenant
therein. Any final adjustment, settlement or compromise of any such claim shall
be subject to the prior written approval of Landlord, which approval shall not
be unreasonably withheld. If an Event of Default exists, Tenant shall not be
entitled to adjust, collect or compromise any such claim or to participate with
Landlord in any adjustment, collection and compromise of the Net Award payable
in connection with a Casualty. Tenant agrees to sign, upon the request of
Landlord, all such proofs of loss, receipts, vouchers and releases. Each insurer
is hereby authorized and directed to make payment under said policies directly
to Landlord or, if required by the Mortgage, to Lender instead of to Landlord
and Tenant jointly, and Tenant hereby appoints each of Landlord and Lender as
Tenant's attorneys-in-fact to endorse any draft therefor. The rights of Landlord
under this Paragraph 17(a) shall be extended to Lender if and to the extent that
any Mortgage so provides.
(b) Tenant, immediately upon receiving a Condemnation Notice,
shall notify Landlord and Lender thereof and will promptly deliver to Landlord
and Lender copies of any and all served papers it receives in connection
therewith. So long as no Event of Default exists, Tenant is authorized to
collect, settle and compromise the amount of any Net Award and Landlord shall
have the right to join with Tenant therein. If an Event of Default exists,
Landlord shall be authorized to collect, settle and compromise the amount of any
Net Award and Tenant shall not be entitled to participate with Landlord in any
Condemnation proceeding or negotiations under threat thereof or to contest the
Condemnation or the amount of the Net Award therefor. No agreement with any
condemnor in settlement or under threat of any Condemnation shall be made by
Tenant without the written consent of Landlord, which consent shall not be
unreasonably withheld. Subject to the provisions of this Paragraph 17(b), Tenant
hereby irrevocably assigns to Landlord any award or payment to which Tenant is
or may be entitled by reason of any Condemnation, whether the same shall be paid
or payable for Tenant's leasehold interest hereunder or otherwise; but nothing
in this Lease shall impair Tenant's right to any award or payment on account of
Tenant's trade fixtures, equipment or other tangible property which is not part
of the Equipment, moving expenses or loss of business, if available, to the
extent that and so long as (i) Tenant shall have the right to make, and does
make, a separate claim therefor against the condemnor and (ii) such claim does
not in any way reduce either the amount of the award otherwise payable to
Landlord for the Condemnation of Landlord's fee interest in the Leased Premises
or the amount of the award (if any) otherwise payable for the Condemnation of
Tenant's leasehold interest hereunder. The rights of Landlord under this
Paragraph 17(b) shall also be extended to Lender if and to the extent that any
Mortgage so provides.
(c) If any Casualty (whether or not insured against) or Partial
Condemnation shall occur, this Lease shall continue, notwithstanding such event,
and there shall be no abatement or reduction of any Monetary Obligations, except
as provided in Paragraph 17(d). Promptly after such Casualty or Partial
Condemnation, Tenant, as required in Paragraphs 12(a) and 13(b), shall commence
and diligently continue to restore the Leased Premises as nearly as possible to
their value, condition and character immediately prior to such event and will
promptly deliver to Landlord and Lender copies of any and all served papers it
receives in connection therewith (assuming the Leased Premises to have been in
the condition required by this Lease). So long as no Event of Default exists,
upon completion the Leased Premises will be in compliance with all Legal
Requirements and Environmental Laws and access to the Leased Premises will not
be materially impaired on a permanent basis, any Net Award up to and including
$1,000,000 shall be paid by Landlord to Tenant and shall be held in a segregated
account, and Tenant shall restore the Leased Premises in accordance with the
requirements of Paragraphs 12(a) and 13(b) of this Lease. Any Net Award in
excess of $1,000,000 shall be made available by Landlord (or Lender, if required
by the terms of any Mortgage) to Tenant for the restoration of any of the Leased
Premises pursuant to and in accordance with the provisions of
21
Paragraph 19 hereof. If any Condemnation which is not a Partial Condemnation
shall occur, Tenant shall comply with the terms and conditions of Paragraph 18.
Landlord and Tenant waive the provisions of California Civil Code Sections 1932
and 1933 and California Code of Civil Procedure Section 1265.130.
(d) In the event of a Requisition of any of the Leased
Premises, if any Net Award payable by reason of such Requisition or Partial
Condemnation is (i) retained by Landlord (and not applied to restoration in the
case of a Partial Condemnation), each installment of Basic Rent payable on or
after the date on which the Net Award is paid to Landlord shall be reduced by a
fraction, the denominator of which shall be the total amount of all Basic Rent
due from such date to and including the last Basic Rent Payment Date for the
then existing Term and the numerator of which shall be the amount of such Net
Award retained by Landlord, or (ii) paid to Lender, then each installment of
Basic Rent thereafter payable shall be reduced in the same amount and for the
same period as payments are reduced under the Note until such Net Award has been
applied in full or until the Term has expired, whichever first occurs.
18. Termination Events.
------------------
(a) If (i) the entire Leased Premises shall be taken by a
Taking or (ii) any substantial portion of the Leased Premises shall be taken by
a Taking and in the prudent business judgment of Tenant cannot be restored to an
integrated unit sufficient for Tenant's business (each of the events described
in the above clauses (i) and (ii) shall hereinafter be referred to as a
"Termination Event"), then (x) in the case of (i) above, Tenant shall be
-----------------
obligated, within thirty (30) days after Tenant receives a Condemnation Notice
and (y) in the case of (ii) above, Tenant shall have the option, within thirty
(30) days after Tenant receives a Condemnation Notice, to give to Landlord
written notice of the Tenant's election to terminate this Lease (a "Termination
-----------
Notice") in the form described in Paragraph 18(b).
------
(b) A Termination Notice shall contain (i) notice of Tenant's
intention to terminate this Lease on the first Basic Rent Payment Date which
occurs at least sixty (60) days after receipt of the Termination Notice (the
"Termination Date") and (ii) a binding and irrevocable offer of Tenant to
----------------
pay to Landlord the Termination Amount.
(c) If Landlord shall reject such offer to pay the Termination
Amount pursuant to Paragraph 18(b) above by written notice to Tenant (a
"Rejection"), which Rejection shall contain the written consent of Lender, not
---------
later than thirty (30) days following the receipt of the Termination Notice,
then this Lease shall terminate on the Termination Date; provided that, if
Tenant has not satisfied all Monetary Obligations on the Termination Date, then
Landlord may, at its option, extend the date on which this Lease may terminate
to a date which is no later than the first Basic Rent Payment Date after the
Termination Date on which Tenant has satisfied all Monetary Obligations. Upon
such termination (i) all obligations of Tenant hereunder shall terminate except
for any Surviving Obligations, (ii) Tenant shall immediately vacate and shall
have no further right, title or interest in or to any of the Leased Premises and
(iii) the Net Award shall be retained by Landlord. Notwithstanding anything to
the contrary hereinabove contained, if Tenant shall have received a Rejection
and, on the date when this Lease would otherwise terminate as provided above,
Landlord shall not have received the full amount of the Net Award payable by
reason of the applicable Termination Event, then the date on which this Lease is
to terminate automatically shall be extended to the first Basic Rent Payment
Date after the receipt by Landlord of the full amount of the Net Award (but in
no event shall any such extension exceed a maximum of three months) provided
that, if Tenant has not satisfied all Monetary Obligations on such date, then
Landlord may, at its option, extend the date on which this Lease may terminate
to a date which is no later than the first Basic Rent Payment Date after such
date on which Tenant has satisfied all such Monetary Obligations.
22
(d) Unless Tenant shall have received a Rejection not later
than the thirtieth (30th) day following receipt of the Termination Notice,
Landlord shall be conclusively presumed to have accepted such offer. If such
offer is accepted by Landlord then, on the Termination Date, Tenant shall pay to
Landlord the Termination Amount and all remaining obligations (including
Monetary Obligations) and, if requested by Tenant, Landlord shall pay to or
assign to Tenant Landlord's entire interest in and to the Net Award.
19. Restoration.
-----------
(a) Landlord (or Lender if required by any Mortgage) shall hold
Net Award in excess of $1,000,000 in a fund (the "Restoration Fund") and
----------------
disburse amounts from the Restoration Fund only in accordance with the following
conditions and, if the Restoration Fund is held by a Lender, it shall be held
and administered in accordance with Lender's customary procedures for similar
accounts:
(i) prior to commencement of restoration, (A) the
architects, contracts, contractors, budget (which shall include Lender's
administration costs if Lender holds the Restoration Fund), plans and
specifications for the restoration shall have been approved by Landlord and
Lender which approval shall not be unreasonably withheld and (B) Landlord and
Lender shall be provided with performance and payment bonds which insure
satisfactory completion of and payment for the restoration, are in an amount and
form and have a surety reasonably acceptable to Landlord, and name Landlord and
Lender as additional dual obligees;
(ii) at the time of any disbursement, no Event of
Default shall exist, Tenant shall otherwise comply with the requirements imposed
by Lender for disbursement of the Net Award and no mechanics' or materialmen's
liens shall have been filed against any of the Leased Premises and remain
uncontested or undischarged;
(iii) disbursements shall be made from time to time in an
amount not exceeding the cost of the work completed since the last disbursement,
upon receipt of (A) satisfactory evidence, including architects' certificates,
of the stage of completion, the estimated total cost of completion and
performance of the work to date in a good and workmanlike manner in accordance
with the contracts, plans and specifications, (B) waivers of liens, (C)
contractors' and subcontractors' sworn statements as to completed work and the
cost thereof for which payment is requested, (D) a satisfactory bringdown of
title insurance and (E) other evidence of cost and payment so that Landlord can
verify that the amounts disbursed from time to time are represented by work that
is completed, in place and free and clear of mechanics' and materialmen's lien
claims, notices of pendency, stop orders or notices of intention to file same
which have not either been fully bonded and discharged of record or in the
alternative fully insured to the satisfaction of Landlord and Lender by the
title company insuring the Mortgage;
(iv) each request for disbursement shall be accompanied
by a certificate of Tenant, signed by an officer of Tenant, describing the work
for which payment is requested, stating the cost incurred in connection
therewith, stating that Tenant has not previously received payment for such work
and, upon completion of the work, also stating that the work has been fully
completed and complies with the applicable requirements of this Lease;
(v) Landlord may retain ten percent (10%) of the
restoration fund until the restoration is fully completed;
(vi) if the Restoration Fund is held by Landlord, the
Restoration Fund shall not be commingled with Landlord's other funds and shall
bear interest at a rate agreed to by Landlord and Tenant; and
23
(vii) such other reasonable conditions as Landlord or
Lender may impose.
(b) Prior to commencement of restoration and at any time during
restoration, if the estimated cost of completing the restoration work free and
clear of all liens, as reasonably determined by Landlord, exceeds the amount of
the Net Award available for such restoration, the amount of such excess shall,
upon demand by Landlord, be paid by Tenant to Landlord to be added to the
Restoration Fund. Any sum so added by Tenant which remains in the Restoration
Fund upon completion of restoration shall be refunded to Tenant. For purposes of
determining the source of funds with respect to the disposition of funds
remaining after the completion of restoration, the Net Award shall be deemed to
be disbursed prior to any amount added by Tenant.
(c) If any sum remains in the Restoration Fund after completion
of the restoration and any refund to Tenant pursuant to Paragraph 19(b), such
sum shall be retained by Landlord or, if required by a Note or Mortgage, paid by
Landlord to a Lender.
20. INTENTIONALLY DELETED.
---------------------
21. Assignment and Subletting; Prohibition against Leasehold
--------------------------------------------------------
Financing.
---------
(a) (i) Tenant shall have the right, upon thirty (30) days
prior written notice to Landlord and Lender, with no consent of Landlord or
Lender being required or necessary ("Preapproved Assignment") to assign this
----------------------
Lease, by operation of law or otherwise, to any Person ("Preapproved Assignee")
--------------------
(A) that is a wholly-owned United States subsidiary of Tenant on the date of the
assignment (except that an assignment to Vantis Corp. shall not be permitted) or
(B) that immediately following such assignment will have a publicly traded
unsecured senior debt rating of "Baa3" or better from ▇▇▇▇▇'▇ or a rating of
"BBB-" or better from S&P, provided that the rating from the other agency (i.e.
▇▇▇▇▇'▇ or S&P, as the case may be) shall not be less than Ba1 or BB+ and in the
event all of such rating agencies cease to furnish such ratings, then a
comparable rating by any rating agency reasonably acceptable to Landlord and
Lender or (C) that is the surviving entity after a merger or consolidation in
which Tenant is a party, so long as the net worth of such surviving entity is
not less than the net worth of Tenant immediately prior thereto.
(ii) If Tenant desires to assign this Lease, whether by
operation of law or otherwise, to a Person ("Non-Preapproved Assignee") who
------------------------
would not be a Preapproved Assignee ("Non-Preapproved Assignment") then Tenant
--------------------------
shall, not less than forty-five (45) days prior to the date on which it desires
to make a Non-Preapproved Assignment submit to Landlord and Lender information
regarding the following with respect to the Non-Preapproved Assignee
(collectively, the "Review Criteria"): (A) credit, (B) capital structure, (C)
---------------
management, (D) operating history, (E) proposed use of the Leased Premises and
(F) risk factors associated with the proposed use of the Leased Premises by the
Non-Preapproved Assignee, taking into account factors such as environmental
concerns, product liability and the like. Landlord and Lender shall review such
information and shall approve or disapprove the Non-Preapproved Assignee no
later than the thirtieth (30th) day following receipt of all such information,
and Landlord and Lender shall be deemed to have acted reasonably in granting or
withholding consent if such grant or disapproval is based on their review of the
Review Criteria applying prudent business judgment.
(b) Tenant shall have the right, upon thirty (30) days prior
written notice to Landlord and Lender, to enter into one or more subleases that
demise, in the aggregate, up to but not in excess of thirty percent (30%) of the
leaseable space in the Improvements with no consent or approval of Landlord
being required or necessary ("Preapproved Sublet"). Other than pursuant to
------------------
Preapproved Sublets, at no time during the Term shall subleases for more than
24
thirty percent (30%) of the gross space in the Leased Premises without the prior
written consent of Landlord, which consent shall be granted or withheld based on
a review of the Review Criteria as they relate to the proposed sublessee and the
terms of the proposed sublease. Landlord and Lender shall be deemed to have
acted reasonably in granting or withholding consent if such grant or disapproval
is based on their review of the Review Criteria applying prudent business
judgment.
(c) If Tenant assigns all its rights and interest under this
Lease, the assignee under such assignment shall expressly assume all the
obligations of Tenant hereunder, actual or contingent, including obligations of
Tenant which may have arisen on or prior to the date of such assignment, by a
written instrument delivered to Landlord at the time of such assignment. Each
sublease of any of the Leased Premises shall be subject and subordinate to the
provisions of this Lease. No assignment or sublease made as permitted by this
Paragraph 21 shall affect or reduce any of the obligations of Tenant hereunder,
and all such obligations shall continue in full force and effect as obligations
of a principal and not as obligations of a guarantor, as if no assignment or
sublease had been made. No assignment or sublease shall impose any additional
obligations on Landlord under this Lease.
(d) Tenant shall, within ten (10) days after the execution and
delivery of any assignment or sublease deliver a duplicate original copy thereof
to Landlord which, in the event of an assignment, shall be in recordable form.
(e) As security for performance of its obligations under this
Lease, Tenant hereby grants, conveys and assigns to Landlord all right, title
and interest of Tenant in and to all subleases now in existence or hereafter
entered into for any or all of the Leased Premises, any and all extensions,
modifications and renewals thereof and all rents, issues and profits therefrom.
Landlord hereby grants to Tenant a license to collect and enjoy all rents and
other sums of money payable under any sublease of any of the Leased Premises,
provided, however, that Landlord shall have the absolute right to revoke said
license and to collect such rents and sums of money, to retain the same and to
the extent received the same shall be credited against Basic Rent as the same
shall be due and owing.
(f) Tenant shall not have the power to mortgage, pledge or
otherwise encumber its interest under this Lease or any sublease of the Leased
Premises, and any such mortgage, pledge or encumbrance made in violation of this
Paragraph 21 shall be void and of no force and effect.
(g) Tenant shall transfer its interest in this Lease to any
Person who purchases all or substantially all of the assets of Tenant.
(h) Landlord may sell or transfer the Leased Premises at any
time without Tenant's consent to any third party (each a "Third Party
-----------
Purchaser"); provided, however, so long as no monetary Event of Default exists,
---------
in no event may Landlord sell or transfer to Intel Corporation, National
Semiconductor, Inc. or to any Person directly engaged in the design, engineering
or manufacturing of integrated circuits, including, without limitation, micro-
processors, memory, networking, logic and communications devices (any of the
foregoing a "Prohibited Purchaser"). The foregoing conditions shall not apply to
--------------------
any sale of the Leased Premises that occurs during the last eighteen months of
the Term, or to any sale to a pension fund or finance affiliate of a Prohibited
Purchaser (excluding, however, a pension fund or finance affiliate of Intel
Corporation or National Semiconductor, Inc.), and, in any event, the aforesaid
conditions shall be null and void and of no force and effect upon any
foreclosure of a Loan or acceptance by a Lender of a deed in lieu thereof. In
the event of any such transfer, Tenant shall attorn to any Third Party Purchaser
as Landlord so long as such Third Party Purchaser and Landlord notify Tenant in
writing of such transfer and such Third Party Purchaser expressly
25
assumes in writing the obligations of the Landlord hereunder. At the request of
Landlord and at Landlord's cost, Tenant will execute such documents confirming
the agreement referred to above and such other agreements as Landlord may
reasonably request, provided that such agreements do not increase the
liabilities and obligations of Tenant hereunder. Tenant shall not bear any costs
or expenses in connection with any sale or transfer of the Leased Premises to a
Third Party Purchaser. In no event shall the terms of this Paragraph 21(g) be or
be deemed to be in effect following the termination or expiration of this Lease.
22. Events of Default.
-----------------
(a) The occurrence of any one or more of the following (after
expiration of any applicable cure period as provided in Paragraph 22(b)) shall,
at the sole option of Landlord, constitute an "Event of Default" under this
----------------
Lease:
(i) a failure by Tenant to make any payment of any
Monetary Obligation, regardless of the reason for such failure;
(ii) a failure by Tenant duly to perform and observe, or
a violation or breach of, any other provision of this Lease not otherwise
specifically mentioned in this Paragraph 22(a);
(iii) any representation or warranty made by Tenant
herein or in any certificate, demand or request made pursuant hereto proves to
be incorrect, when made, in any material respect;
(iv) a default beyond any applicable cure period or at
maturity by Tenant in any payment of principal or interest on any obligations
for borrowed money having an original principal balance of $10,000,000 or more
in the aggregate, or in the performance of any other provision contained in any
instrument under which any such obligation is created or secured (including the
breach of any covenant thereunder), (x) if such payment is a payment at maturity
or a final payment, or (y) if an effect of such default is to cause, or permit
any Person to cause, such obligation to become due prior to its stated maturity
and Tenant is not diligently and in good faith contesting such default or has
paid such obligation in full;
(v) a default by Tenant beyond any applicable cure
period in the payment of rent under, or in the performance of any other material
provision of, any other lease or leases that have, in the aggregate, rental
obligations over the terms thereof of $10,000,000 or more if the Landlord under
any such lease or leases actually terminates such lease;
(vi) a final, non-appealable judgment or judgments for
the payment of money in excess of $10,000,000 in the aggregate shall be rendered
against Tenant and the same shall remain undischarged for a period of sixty (60)
consecutive days;
(vii) Tenant shall (A) voluntarily be adjudicated a
bankrupt or insolvent, (B) seek or consent to the appointment of a receiver or
trustee for itself or for the Leased Premises, (C) file a petition seeking
relief under the bankruptcy or other similar laws of the United States, any
state or any jurisdiction, (D) make a general assignment for the benefit of
creditors, or (E) be unable to pay its debts as they mature;
(viii) a court shall enter an order, judgment or decree
appointing, without the consent of Tenant, a receiver or trustee for it or for
any of the Leased Premises or approving a petition filed against Tenant which
seeks relief under the bankruptcy or
26
other similar laws of the United States, any state or any jurisdiction, and such
order, judgment or decree shall remain undischarged or unstayed ninety (90) days
after it is entered;
(ix) the Leased Premises shall have been vacated or
abandoned;
(x) Tenant shall be liquidated or dissolved or shall
begin proceedings towards its liquidation or dissolution;
(xi) the estate or interest of Tenant in any of the
Leased Premises shall be levied upon or attached in any proceeding and such
estate or interest is about to be sold or transferred or such process shall not
be vacated or discharged within ninety (90) days after it is made;
(xii) a failure by Tenant to perform or observe, or a
violation or breach of, or a misrepresentation by Tenant under any or any
document between Tenant and Lender or from Tenant to Lender, if such failure,
violation, breach or misrepresentation gives rise to a default beyond any
applicable cure period with respect to any Loan; or
(xiii) a failure by Tenant to maintain in effect any
license or permit necessary for the use, occupancy or operation of the Leased
Premises.
(b) No notice or cure period shall be required in any one or
more of the following events: (A) the occurrence of an Event of Default under
clause (i) (except as otherwise set forth below), (iii), (iv), (v), (vi), (vii),
(viii), (ix), (x), (xi) or (xii) of Paragraph 22(a); (B) if Tenant shall fail to
comply with the provisions of Paragraph 16(d) of this Lease or an assignment or
sublease entered into in violation of Paragraph 21; or (C) the default is such
that any delay in the exercise of a remedy by Landlord could reasonably be
expected to cause irreparable harm to Landlord. If the default consists of the
failure to pay any Monetary Obligation under clause (i) of Paragraph 22(a), the
applicable cure period shall be five (5) days from the date on which notice is
given, but, if the default consists of a failure to pay Basic Rent, Landlord
shall not be obligated to give notice of, or allow any cure period for, any such
default more than twice within any Lease Year. If the default consists of a
default under clauses (ii) or (xiv) of Paragraph 22(a), other than the events
specified in clauses (B) and (C) of the first sentence of this Paragraph 22(b),
the applicable cure period shall be twenty (20) days from the date on which
notice is given or, if the default cannot be cured within such twenty (20) day
period and delay in the exercise of a remedy would not (in Landlord's reasonable
judgment) cause any material adverse harm to Landlord or any of the Leased
Premises, the cure period shall be extended for the period required to cure the
default (but such cure period, including any extension, shall not in the
aggregate exceed ninety (90) days), provided that Tenant shall commence to cure
the default within the said twenty-day period and shall actively, diligently and
in good faith proceed with and continue the curing of the default until it shall
be fully cured. The notices described in this Paragraph 22(b) are in lieu and
not in addition to the notice under California Civil Code 1161.
23. Remedies and Damages Upon Default.
----------------------------------
(a) If an Event of Default shall have occurred and is
continuing, Landlord shall have the right, at its sole option, then or at any
time thereafter, to exercise its remedies and to collect damages from Tenant in
accordance with this Paragraph 23, subject in all events to applicable Law,
without demand upon or notice to Tenant except as otherwise provided in
Paragraph 22(b) and this Paragraph 23.
(i) Landlord may give Tenant notice of Landlord's
intention to terminate this Lease on a date specified in such notice. Upon such
date, this Lease, the estate
27
hereby granted and all rights of Tenant hereunder shall expire and terminate.
Upon such termination, Tenant shall immediately surrender and deliver possession
of the Leased Premises to Landlord in accordance with Paragraph 26. If Tenant
does not so surrender and deliver possession of the Leased Premises, Landlord
may re-enter and repossess the Leased Premises or by summary proceedings,
ejectment or any other lawful means or procedure. Upon or at any time after
taking possession of the Leased Premises, Landlord may, by peaceable means or
legal process, remove any Persons or property therefrom. Landlord shall be under
no liability for or by reason of any such entry, repossession or removal.
Notwithstanding such entry or repossession, Landlord may (A) exercise the remedy
set forth in and collect the damages permitted by Paragraph 23(a)(iii) or (B)
collect the damages set forth in Paragraph 23(b) or (c).
(ii) After repossession of the Leased Premises pursuant
to clause (i) above, Landlord shall have the right to relet any of the Leased
Premises to such tenant or tenants, for such term or terms, for such rent, on
such conditions and for such uses as Landlord in its sole discretion may
determine, and collect and receive any rents payable by reason of such
reletting. Landlord may pay such leasing commissions, retain such management and
make such Alterations in connection with such reletting as it may deem advisable
in its sole discretion. Notwithstanding any such reletting, Landlord may collect
the damages set forth in Paragraph 23(c).
(iii) Landlord may declare by notice to Tenant the entire
Basic Rent (in the amount of Basic Rent then in effect) for the remainder of the
then current Term to be immediately due and payable. Tenant shall immediately
pay to Landlord all such Basic Rent discounted to its present value, using a
discount factor of eight percent (8%) per annum, all accrued Rent then due and
unpaid, all other Monetary Obligations which are then due and unpaid and all
Monetary Obligations which arise or become due by reason of such Event of
Default (including any Costs of Landlord). Upon receipt by Landlord of all such
accelerated Basic Rent and Monetary Obligations, this Lease shall remain in full
force and effect and Tenant shall have the right to possession of the Leased
Premises from the date of such receipt by Landlord to the end of the Term, and
subject to all the provisions of this Lease, including the obligation to pay all
increases in Basic Rent and all Monetary Obligations that subsequently become
due, except that (A) no Basic Rent which has been prepaid hereunder shall be due
thereafter during the said Term, (B) Tenant shall have no option to extend or
renew the Term.
(b) In addition to its other rights under this Lease, Landlord
has the remedy described in California Civil Code Section 1951.4 which provides
substantially as follows: Landlord may continue the Lease in effect after
Tenant's breach and abandonment and recover the Rent as it becomes due, if
Tenant has the right to sublet or assign, subject only to reasonable
limitations. In accordance with California Civil Code Section 1951.4 (or any
successor statute), Tenant acknowledges that in the event Tenant breaches this
Lease and abandons the Leased Premises, this Lease shall continue in effect for
so long as Landlord does not terminate Tenant's right to possession, and
Landlord may enforce all of its rights and remedies under this Lease, including
the right to recover the Rent as it becomes due under this Lease. Tenant
acknowledges that the limitations on subletting and assignment set forth in
Paragraph 21 are reasonable. Acts of maintenance or preservation or efforts to
relet the Leased Premises or the appointment of a receiver upon initiative of
Landlord to protect Landlord's interest under this Lease shall not constitute a
termination of Tenant's right to possession.
(c) If Landlord elects to terminate this Lease upon the
occurrence of an Event of Default, Landlord may collect from Tenant damages
computed in accordance with the following provisions in addition to Landlord's
other remedies under this Lease:
(i) the worth at the time of award of any unpaid Rent
which has been earned at the time of such termination; plus
28
(ii) the worth at the time of award of the amount by
which any 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 reasonably avoided; plus
(iii) 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
(iv) any other reasonable Cost necessary to compensate
Landlord for all the detriment proximately caused by Tenant's failure to perform
its obligations under this Lease or which in the ordinary course of things would
be likely to result therefrom including, without limitation, brokerage
commissions, the cost of repairing and reletting the Leased Premises and
reasonable attorneys' fees; plus
(v) at Landlord's election, such other amounts in
addition to or in lieu of the foregoing as may be permitted from time to time by
applicable state law. Damages shall be due and payable from the date of
termination.
For purposes of clauses (i) and (ii) of this Paragraph, the "worth at
the time of award" shall be computed by adding interest at the Default Rate to
the past due Rent. For the purposes of clause (iii) of this Paragraph 23(d),
the "worth at the time of award" shall be computed by discounting such amount at
the discount rate of the Federal Reserve Bank of San Francisco at the time of
the award, plus one percent (1%).
(d) Landlord shall be entitled to apply the Security Deposit to
any amounts due under Paragraph 23(c) if this Lease shall be terminated, or, if
this Lease shall remain in full force and effect, to any amounts due under
Paragraph 23(b) or in the following order: (i) to past due Basic Rent, (ii) to
other past due Monetary Obligations and (iii) to Basic Rent and Monetary
Obligations thereafter due and owing.
(e) Notwithstanding anything to the contrary herein contained,
in lieu of or in addition to any of the foregoing remedies and damages, Landlord
may exercise any remedies and collect any damages available to it at law or in
equity. If Landlord is unable to obtain full satisfaction pursuant to the
exercise of any remedy, it may pursue any other remedy which it has hereunder or
at law or in equity.
(f) Landlord shall not be required to mitigate any of its
damages hereunder unless required to by applicable Law. If any Law shall validly
limit the amount of any damages provided for herein to an amount which is less
than the amount agreed to herein, Landlord shall be entitled to the maximum
amount available under such Law.
(g) No termination of this Lease, repossession or reletting of
the Leased Premises, exercise of any remedy or collection of any damages
pursuant to this Paragraph 23 shall relieve Tenant of any Surviving Obligations.
(h) WITH RESPECT TO ANY REMEDY OR PROCEEDING OF LANDLORD
HEREUNDER, LANDLORD AND TENANT WAIVES ANY RIGHT TO A TRIAL BY JURY. Landlord and
Tenant agree that this Lease constitutes a written consent to waiver of trial by
jury pursuant to the provisions of California Code and Civil Procedure Section
631, and each of Landlord and Tenant does appoint the other Person as its true
and lawful attorney-in-fact, which appointment is coupled with an interest, and
does hereby authorize and empower the other Person, in its name, place and
stead, to file this Lease with the clerk of any court of competent jurisdiction
as statutory written consent to waiver of trial by jury. Landlord and Tenant
agree that this Lease constitutes a written consent to waiver of trial by jury
pursuant
29
to the provisions of California Code of Civil Procedure Section 631, and each of
Landlord and Tenant does appoint the other Person as its true and lawful
attorney-in-fact, which appointment is coupled with an interest, and does hereby
authorize and empower the other Person, in its name, place and stead, to file
this Lease with the clerk of any court of competent jurisdiction as statutory
written consent to waiver of trial by jury.
(i) Upon the occurrence of any Event of Default, Landlord shall
have the right (but no obligation) to perform any act required of Tenant
hereunder, including the right to retain a third party manager to manage the
Leased Premises and, if performance of such act requires that Landlord enter the
Leased Premises, Landlord may enter the Leased Premises for such purpose.
(j) No failure of Landlord (i) to insist at any time upon the
strict performance of any provision of this Lease or (ii) to exercise any
option, right, power or remedy contained in this Lease shall be construed as a
waiver, modification or relinquishment thereof. A receipt by Landlord of any sum
in satisfaction of any Monetary Obligation with knowledge of the breach of any
provision hereof shall not be deemed a waiver of such breach, and no waiver by
Landlord of any provision hereof shall be deemed to have been made unless
expressed in a writing signed by Landlord.
(k) Tenant hereby waives and surrenders, for itself and all
those claiming under it, including creditors of all kinds, (i) any right and
privilege which it or any of them may have under any present or future Law to
redeem any of the Leased Premises or to have a continuance of this Lease after
termination of this Lease or of Tenant's right of occupancy or possession
pursuant to any court order or any provision hereof, and (ii) the benefits of
any present or future Law which exempts property from liability for debt or for
distress for rent; provided that the foregoing shall not preclude or prevent
Tenant from seeking relief under California Code of Civil Procedure Section 1179
in any action brought by Landlord for termination of this Lease.
(l) Except as otherwise provided herein, all remedies are
cumulative and concurrent and no remedy is exclusive of any other remedy. Each
remedy may be exercised at any time an Event of Default has occurred and is
continuing and may be exercised from time to time. No remedy shall be exhausted
by any exercise thereof.
24. Notices. All notices, demands, requests, consents, approvals,
-------
offers, statements and other instruments or communications required or permitted
to be given pursuant to the provisions of this Lease shall be in writing and
shall be deemed to have been given and received for all purposes when delivered
in person or by Federal Express or other reliable 24-hour delivery service or
five (5) business days after being deposited in the United States mail, by
registered or certified mail, return receipt requested, postage prepaid,
addressed to the other party at its address stated above or when delivery is
refused. A copy of any notice given by Tenant to Landlord shall simultaneously
be given by Tenant to ▇▇▇▇ ▇▇▇▇▇ ▇▇▇▇ & ▇▇▇▇▇▇, ▇▇▇▇ ▇▇▇ ▇▇▇▇▇▇▇ ▇▇▇▇▇,
▇▇▇▇▇▇▇▇▇▇▇▇, ▇▇ ▇▇▇▇▇, Attention: Chairman, Real Estate Department. A copy of
any notice given by Landlord to Tenant shall be sent to the attention of the
Tenant's Real Estate Manager, and a copy of any such notice shall simultaneously
be given by Landlord to Advanced Micro Devices, Inc., ▇▇▇ ▇▇▇ ▇▇▇▇▇, ▇▇▇▇▇▇▇▇▇,
▇▇▇▇▇▇▇▇▇▇ ▇▇▇▇▇, Attention: General Counsel. Copies of all notices sent by
Landlord or Tenant shall be sent to Lender at GMAC Commercial Mortgage
Corporation, ▇▇▇ ▇▇▇▇▇▇▇ ▇▇▇▇, ▇▇▇▇▇▇▇, ▇▇ ▇▇▇▇▇-▇▇▇▇, Attention: Executive Vice
President, Commercial Loan Servicing, with copies to Commercial Capital
Initiatives, Inc., Wall Street Plaza, ▇▇ ▇▇▇▇ ▇▇▇▇▇▇, ▇▇▇ ▇▇▇▇, ▇▇ ▇▇▇▇▇,
Attention: Manager - Loan administration and Pepe & Hazard LLP, ▇▇▇▇▇▇▇ Square,
▇▇▇ ▇▇▇▇▇▇ ▇▇▇▇▇▇, ▇▇▇▇▇▇▇▇, ▇▇ ▇▇▇▇▇, Attention: ▇▇▇▇ ▇. ▇▇▇▇▇▇▇▇, Esq. For the
purposes of this Paragraph, any party may substitute another address stated
above (or substituted by a
30
previous notice) for its address by giving fifteen (15) days' notice of the new
address to the other party, in the manner provided above.
25. Estoppel Certificate. At any time upon not less than ten (10)
--------------------
days' prior written request by either Landlord or Tenant (the "Requesting
----------
Party") to the other party (the "Responding Party"), the Responding Party shall
------ ----------------
deliver to the Requesting Party a statement in writing, executed by an
authorized officer of the Responding Party, certifying (a) that, except as
otherwise specified, this Lease is unmodified and in full force and effect, (b)
the dates to which Basic Rent, Additional Rent and all other Monetary
Obligations have been paid, (c) that, to the knowledge of the signer of such
certificate and except as otherwise specified, no default by either Landlord or
Tenant exists hereunder, (d) such other matters as the Requesting Party may
reasonably request, and (e) if Tenant is the Responding Party that, except as
otherwise specified, there are no proceedings pending or, to the knowledge of
the signer, threatened, against Tenant before or by any court or administrative
agency which, if adversely decided, would materially and adversely affect the
financial condition and operations of Tenant. Any such statements by the
Responding Party may be relied upon by the Requesting Party, any Person whom the
Requesting Party notifies the Responding Party in its request for the
Certificate is an intended recipient or beneficiary of the Certificate, any
Lender or their assignees and by any prospective purchaser or mortgagee of any
of the Leased Premises.
26. Surrender. Upon the expiration or earlier termination of this
---------
Lease, Tenant shall peaceably leave and surrender the Leased Premises to
Landlord in the same condition in which the Leased Premises was at the
commencement of this Lease, except as repaired, rebuilt, restored, altered,
replaced or added to as permitted or required by any provision of this Lease,
and except for ordinary wear and tear. Upon such surrender, Tenant shall (a)
remove from the Leased Premises all property which is owned by Tenant or third
parties other than Landlord and (b) repair any damage caused by such removal.
Property not so removed shall become the property of Landlord, and Landlord may
thereafter cause such property to be removed from the Leased Premises. The cost
of removing and disposing of such property and repairing any damage to any of
the Leased Premises caused by such removal shall be paid by Tenant to Landlord
upon demand. Landlord shall not in any manner or to any extent be obligated to
reimburse Tenant for any such property which becomes the property of Landlord
pursuant to this Paragraph 26.
27. No Merger of Title. There shall be no merger of the leasehold
------------------
estate created by this Lease with the fee estate in any of the Leased Premises
by reason of the fact that the same Person may acquire or hold or own, directly
or indirectly, (a) the leasehold estate created hereby or any part thereof or
interest therein and (b) the fee estate in any of the Leased Premises or any
part thereof or interest therein, unless and until all Persons having any
interest in the interests described in (a) and (b) above which are sought to be
merged shall join in a written instrument effecting such merger and shall duly
record the same.
28. Books and Records.
-----------------
(a) Tenant shall keep adequate records and books of account
with respect to the finances and business of Tenant generally and with respect
to the Leased Premises, in accordance with generally accepted accounting
principles ("GAAP") consistently applied, and shall permit Landlord and Lender
----
by their respective agents, accountants and attorneys, upon reasonable notice to
Tenant, to visit and inspect the Leased Premises and to discuss the finances and
business with the officers of Tenant, at such reasonable times as may be
requested by Landlord. Upon the request of Lender or Landlord (either
telephonically or in writing), Tenant shall provide the requesting party with
copies of any information to which such party would be entitled in the course of
a personal visit.
31
(b) Tenant shall deliver to Landlord and to Lender within one
hundred twenty (120) days of the close of each fiscal year, annual audited
financial statements of Tenant prepared by a nationally recognized firm of
independent certified public accountants. Tenant shall also furnish to Landlord
within forty-five (45) days after the end of each of the three remaining
quarters unaudited financial statements and all other quarterly reports of
Tenant, certified by Tenant's chief financial officer, and all filings, if any,
of Form 10-K, Form 10-Q and other required filings with the Securities and
Exchange Commission pursuant to the provisions of the Securities Exchange Act of
1934, as amended, or any other Law. All annual financial statements shall be
accompanied (i) by an opinion of said accountants stating that (A) there are no
qualifications as to the scope of the audit and (B) the audit was performed in
accordance with GAAP and (ii) by the affidavit of a duly authorized officer of
Tenant, dated within five (5) days of the delivery of such statement, stating
that (C) the affiant knows of no Event of Default, or event which, upon notice
or the passage of time or both, would become an Event of Default which has
occurred and is continuing hereunder or, if any such event has occurred and is
continuing, specifying the nature and period of existence thereof and what
action Tenant has taken or proposes to take with respect thereto and (D) except
as otherwise specified in such affidavit, that Tenant has fulfilled all of its
obligations under this Lease which are required to be fulfilled on or prior to
the date of such affidavit.
(c) Landlord, Lender and their respective management, agents,
accountants, attorneys, and advisors, shall consider and treat on a strictly
confidential basis Tenant's "Confidential Information." "Confidential
Information" as used in this Lease, shall mean all information disclosed by
Tenant that is not generally known in the Tenant's trade or industry and shall
include, without limitation, (a) information relating to the development and
distribution of the current, future and proposed products or services of Tenant
or its subsidiaries or affiliates; (b) trade secrets, drawings, inventions, mask
works, know-how, software programs, and software source documents; (c)
information regarding plans for research, development, new service offerings or
products, marketing and selling, business plans, business forecasts, budgets and
unpublished financial statements, licenses and distribution arrangements, prices
and costs, suppliers and customers; (d) existence of any business discussions,
negotiations or agreements between the parties; (e) any information contained in
the books and records of Tenant relating to the foregoing items; (f) any copies
of any books and records of Tenant relating to the foregoing items; (g) any
financial statements of Tenant; and (h) any other information of the Tenant
which is designated by Tenant as CONFIDENTIAL. All Confidential Information
shall be conspicuously stamped "CONFIDENTIAL"; in the case where such
information cannot reasonably be marked CONFIDENTIAL, for example verbal
disclosures, Tenant shall advise Landlord or Lender at the time of disclosure
that such information is Confidential Information and shall confirm such
designation in writing within five (5) days of disclosure. Neither Landlord,
Lender, nor their respective management, agents, accountants, attorneys and
advisors, shall disclose any information contained in Tenant's books and records
nor distribute copies of any such books and records nor Tenant's financial
statements to any other Persons without the prior consent of the chief operating
officer of Tenant.
The restrictions contained in this Paragraph 28(c) shall not prevent disclosure
by Landlord or Lender of any information in any of the following circumstances:
(i) Upon the order of any court or administrative
agency to the extent required by such order and not effectively stayed or by
appeal or otherwise in which case Landlord shall promptly notify Tenant of the
request for disclosure received by Landlord;
(ii) Upon the request, demand or requirement of any
regulatory agency or authority having jurisdiction over such party, including
the Securities and Exchange Commission (whether or not such request or demand
has the force of law) in which case Landlord shall promptly notify Tenant of the
request for disclosure received by Landlord;
32
(iii) That has been publicly disclosed other than by
breach of this Paragraph 28(c) by Lender or Landlord or by any other Person
referenced in the first sentence of this Paragraph 28(c);
(iv) To counsel or accountants for Lender or Landlord;
(v) While an Event of Default exists, in connection
with the exercise of any right or remedy under this Lease or any other related
document;
(vi) The information is developed by Landlord or Lender,
independently and without reference to any Confidential Information communicated
to Landlord by Tenant, as shown by demonstrable proof;
(vii) To any Person to whom Initial Lender may disclose
information under Section 18.1 of the Mortgage who shall be subject to the
confidentiality requirements of this Paragraph 28(c); or
(viii) As otherwise required by Law.
All Confidential Information furnished to Landlord by Tenant is the sole and
exclusive property of Tenant. Upon request by Tenant, Landlord agrees to
promptly deliver to Tenant the original and any copies of such Confidential
Information to Tenant.
The rights and obligations set forth in this Paragraph 28(c) shall survive
according to the terms hereof and continue after any expiration or termination
of this Agreement or the service specified herein. In the event of a breach or
threatened breach by Landlord or Lender of the provisions of this Paragraph
28(c), Tenant shall be entitled to an injunction restraining Landlord or Lender
from disclosing, in whole or in part, any of such Confidential Information.
29. INTENTIONALLY DELETED.
30. Non-Recourse as to Landlord and Lender. Anything contained
--------------------------------------
herein to the contrary notwithstanding, any claim based on or in respect of any
liability of Landlord or Lender under this Lease shall be enforced only against
the Leased Premises and not against any other assets, properties or funds of (i)
Landlord or Lender, (ii) any director, officer, member, general partner,
shareholder, limited partner, beneficiary, employee or agent of Landlord or
Lender or any general partner of Landlord or any of its members or general
partners (or any legal representative, heir, estate, successor or assign of any
thereof), (iii) any predecessor or successor partnership or corporation (or
other entity) of Landlord or Lender or any of its general partners,
shareholders, officers, directors, members, employees or agents, either directly
or through Landlord or Lender or their general partners, shareholders, officers,
directors, employees or agents or any predecessor or successor partnership or
corporation (or other entity), or (iv) any Person affiliated with any of the
foregoing, or any director, officer, employee or agent of any thereof.
31. Financing.
---------
(a) Tenant agrees to pay all Costs incurred by Landlord in
connection with the purchase, leasing and initial financing of the Leased
Premises including, without limitation, the cost of appraisals, environmental
reports, title insurance, surveys, legal fees and expenses and Lender's
commitment fees.
(b) If Landlord desires to obtain or refinance any Loan, Tenant
shall negotiate in good faith with Landlord concerning any request made by any
Lender or proposed
33
Lender for changes or modifications in this Lease. In particular, Tenant shall
agree, upon request of Landlord, to supply any such Lender with such notices and
information as Tenant is required to give to Landlord hereunder and to extend
the rights of Landlord hereunder to any such Lender and to acknowledge such
financing and the assignment of this Lease to Lender if such acknowledgment is
requested by such Lender.
32. Subordination, Non-Disturbance and Attornment. This Lease
---------------------------------------------
shall be subject and subordinate to any Mortgage which is hereafter executed or
recorded securing a Loan, provided, however, such subordination shall only be
effective if the Lender agrees in a written subordination of substantially the
same substance as the document attached hereto as Exhibit "F", with such non-
-----------
material changes as the Landlord may reasonably request, that so long as there
exists no outstanding Event of Default at the time the Mortgage terminates by
foreclosure or otherwise: (i) this Lease shall survive such termination; (ii)
the Lender or any purchaser acquires Landlord's interest under this Lease
pursuant to or in lieu of proceedings for enforcement of any Mortgage, the
Lender or any purchaser shall assume all of Landlord's obligations hereunder
arising during the period commencing on the date of such acquisition and ending
on the date such interest is conveyed or transferred to a subsequent party that
assumes the obligations of Landlord hereunder arising during the period such
party so holds Landlord's interest, subject in all events to the terms of
Paragraph 30 of this Lease. Provided the conditions of the preceding sentence
are satisfied, Tenant covenants and agrees to execute and deliver, upon request
by Landlord, the subordination described above, and any additional documents
evidencing the subordination of this Lease with respect to any such Mortgage
reasonably required by the Lender and the agreement of Tenant to attorn to the
Lender or any such purchaser.
33. INTENTIONALLY DELETED.
---------------------
34. Tax Treatment; Reporting. Landlord and Tenant each acknowledge
------------------------
that each shall treat this transaction as a true lease for state law purposes
and shall report this transaction as a Lease for Federal income tax purposes.
For Federal income tax purposes each shall report this Lease as a true lease
with Landlord as the owner of the Leased Premises and Equipment and Tenant as
the lessee of such Leased Premises and Equipment including: (1) treating
Landlord as the owner of the property eligible to claim depreciation deductions
under Section 167 or 168 of the Internal Revenue Code of 1986 (the "Code") with
----
respect to the Leased Premises and Equipment, (2) Tenant reporting its Rent
payments as rent expense under Section 162 of the Code, and (3) Landlord
reporting the Rent payments as rental income.
35. Excess Land.
-----------
(a) Landlord acknowledges that the Excess Land is not necessary
for Tenant's current and contemplated use of the Leased Premises. Landlord
shall, upon not less than thirty (30) days prior written notice to Landlord and
Lender, convey the Excess Land to or as directed by Tenant for no consideration
(other than having entered into this Lease with Tenant); provided, that no
--------
Event of Default under this Lease or under the documents evidencing and securing
the Loan exists and the following conditions are satisfied: (i) the Leased
Premises shall have been subdivided in compliance with all applicable
subdivision laws, Legal Requirements and Easement Agreements so that the Excess
Land and the remainder of the Leased Premises (the "Retained Premises") are
-----------------
separate tracts, (ii) after such sale both the Excess Land and the Retained
Premises shall comply with all applicable Laws, Legal Requirements and Easement
Agreements, (iii) the release of the Excess Land does not materially impact the
functional use, legal use or viability of the Retained Premises, (iv) Tenant
shall have complied with all requirements of Lender set forth in the Mortgage
with respect to the release of the Excess Land, and (v) all Costs of Landlord,
Lender and Tenant in connection with the conveyance of the Excess Land and in
complying with the above conditions, including reasonable attorneys' fees,
34
shall be borne solely by Tenant. Landlord, as record title holder to the Excess
Land, shall cooperate with Tenant in obtaining a lawful subdivision of the
Leased Premises with separate parcels consisting of the Excess Land and the
Retained Premises, at no cost to Landlord. If Landlord conveys the Excess Land,
then, except for Surviving Obligations this Lease shall terminate with respect
to the Excess Land, but shall remain in full force and effect with respect to
the Retained Premises, provided, however, that in no event will the release of
the Excess Land from this Lease amend, reduce or modify any of the obligations
and liabilities of Tenant hereunder, including the obligations to pay Basic Rent
in the amount set forth in Exhibit "D" hereto.
----------
(b) In the event at any time during the term Tenant determines
to construct or cause to be constructed improvements on the Excess Land, Tenant
shall so notify Landlord, and Landlord and Tenant shall negotiate in good faith
for Landlord to purchase the Excess Land from Tenant, construct such
improvements and lease the same to Tenant.
36. Financing Major Alterations.
---------------------------
(a) Should Tenant, during the Term of this Lease, desire to
make Alterations to any of the Leased Premises which are not readily removable
without causing material damage to the Leased Premises or to expand the
Improvements and which will cost in excess of $500,000 ("Major Alterations"),
-----------------
Tenant may, prior to the commencement of construction of such Major Alterations,
request Landlord to reimburse the costs thereof (the "Alteration Cost") to
---------------
Tenant, to wit: cost of labor and materials, financing fees, legal fees,
------
survey, title insurance and other normal and customary loan or construction
costs.
(b) Should Landlord agree to reimburse such costs, Landlord and
Tenant shall enter into good faith negotiations regarding the execution and
delivery of a written agreement of modification of this Lease, which agreement
shall provide for the following:
(i) payment by Landlord to Tenant of the Alteration
Cost within one hundred twenty (120) days of the date of Landlord's agreement to
pay the Alteration Cost, or in installment payments as agreed, or on the date of
completion of the Major Alterations, whichever shall be the later;
(ii) an increase in the annual Basic Rent payable during
the Amortization Period (as hereinafter defined) to an amount sufficient to
amortize the Alteration Cost ("Total Financing") over a period (the
---------------
"Amortization Period") which shall be the remainder of the then current Term
-------------------
and, if Tenant so elects, any additional extension periods provided for herein
(so long as Tenant shall confirm any such extension periods included in the
Amortization Period by a written waiver of its right to give notice of its
intention not to renew this Lease prior to the expiration of such extension
periods), at such rate of interest and upon such other terms as shall be agreed
upon between Landlord and Tenant, but which shall be no less favorable than the
prevailing interest rate and terms for first unsecured loans in a principal
amount equal to the Total Financing for borrowers with credit ratings equivalent
to that of Tenant's at that time;
(iii) provide a rate of return to Landlord on Landlord's
equity investment in the Leased Premises equal to that enjoyed by Landlord
hereunder immediately prior to such proposed increase in Basic Rent; and
(iv) such other changes and amendments to this Lease as
may be necessary and appropriate in view of such payment of the Alteration Cost
by Landlord to Tenant.
35
(c) Tenant shall pay all Costs incurred by Landlord in
connection with any such modification to this Lease and such financing,
including closing costs, brokerage fees, taxes, recording charges and reasonable
legal fees and expenses.
(d) To the extent that the terms of the Mortgage or any other
document encumbering any of the Leased Premises shall require the consent of
Lender and/or the holder or holders of any encumbrance on any of the Leased
Premises (the "Encumbrancers") to the addition or construction of any Major
-------------
Alterations or to the financing thereof by Landlord, the rights and obligations
of Landlord and Tenant under Paragraph 13 and this Paragraph 36 are expressly
conditioned upon Tenant's obtaining, prior to the commencement of any
construction, the Encumbrancers' written consent to such construction and to
Landlord's obtaining, in the event Landlord has agreed to pay for the Major
Alterations, the Encumbrancers' written consent to such financing.
(e) If Landlord and Tenant do not reach agreement on Tenant's
request to have Landlord finance the Alteration Costs, Tenant shall, subject to
the provisions of Paragraph 13 of this Lease, have the right to construct the
Major Alterations at Tenant's sole cost and expense. In any event, the
construction of the Major Alterations shall be performed in accordance with the
provisions of Paragraph 13 hereof and the Major Alterations shall be the
property of Landlord and part of the Leased Premises subject to this Lease.
(f) Nothing contained in this Paragraph 36 shall be construed
to modify Paragraph 13 hereof, and the provisions of Paragraph 12 and
subparagraphs (i) and (ii) of Paragraph 13(a) shall apply to all Major
Alterations made or constructed hereunder, including the requirement for
Landlord's consent to Alterations.
37. Security Deposit.
----------------
(a) Concurrently with the execution of this Lease, Tenant has
delivered to Landlord cash in the amount of Ten Million Dollars ($10,000,000)
(the "Security Deposit") which shall be deposited in a segregated interest-
----------------
bearing account (the "Account") with a financial institution or institutions
-------
selected by Lender or Landlord. The Security Deposit shall secure the payment by
Tenant of the Rent and all other charges or payments to be paid hereunder and
the performance of the covenants and obligations contained herein.
(b) If at any time an Event of Default shall have occurred and
be continuing beyond the applicable grace period, if any, Landlord shall be
entitled, at its sole discretion, at any time and from time to time, to withdraw
the Security Deposit or any portion thereof from the Account and to apply the
proceeds in payment of (i) any Rent or other charges for the payment of which
Tenant shall be in default, (ii) any expense incurred by Landlord in curing any
default of Tenant, (iii) any other sums due to Landlord in connection with any
default or the curing thereof, including, without limitation, any damages
incurred by Landlord by reason of such default, including maintenance expenses
and management fees and/or (iv) the payment of leasing commissions and tenant
improvements for any substitute tenant. If any portion of the Security Deposit
is used, retained or applied by Landlord for any purpose set forth above, Tenant
shall, within fifteen (15) days after demand therefor is made by Landlord,
provide to Landlord cash which complies with the requirements of this Paragraph
37 so that the Security Deposit is in the original principal amount thereof.
Landlord shall deliver to Tenant copies of all statements regarding the
account(s) in which the Security Deposit is held promptly after receipt thereof
by Landlord.
(c) So long as no Event of Default exists, at any time
following the later to occur of payment in full of the Initial Loan or the
expiration of the tenth (10th) Lease Year, the balance of the Security Deposit
shall be returned to Tenant upon the earlier to occur of:
36
(i) the expiration of the Term or
(ii) no later than fifteen (15) days after the date on
which Tenant receives a rating ("Required Rating")on its publicly-traded
unsecured senior debt of Baa3 or better from ▇▇▇▇▇'▇, provided that at the time
of such rating Tenant has a rating from S&P of not less than BB+.
(d) Notwithstanding the foregoing, if at any time or from time
to time following the release of the Security Deposit pursuant to Subsection
(ii) of this Paragraph 37(c) (A) Tenant's publicly-traded unsecured debt rating
shall be downgraded to Ba1 or Ba2 from ▇▇▇▇▇'▇, and is BB or BB+ from S&P,
Tenant shall redeposit with Landlord a security deposit in the amount of Five
Million Dollars ($5,000,000) or (B) if such debt rating from ▇▇▇▇▇'▇ shall be
less than Ba2 and from S&P shall be less than BB, Tenant shall redeposit with
Landlord Ten Million Dollars ($10,000,000) (or if the deposit described in
clause (A) has been made, Five Million Dollars $5,000,000). Any such amounts
shall be deposited within fifteen (15) days following the downgrade of Tenant's
rating and any amounts so deposited shall be considered the "Security Deposit"
for the purposes of this Lease and shall thereafter be subject to the applicable
provisions of this Lease, including this subparagraph (c).
(e) At the request of Tenant (so long as no Event of Default
exists) the Security Deposit shall be invested in:
(i) securities issued or fully guaranteed or insured by
the United States Government or any agency thereof having maturities of not more
than 12 months from the date of acquisition;
(ii) certificates of deposit, time deposits, Eurodollar
time deposits, repurchase agreements, reverse repurchase agreements, or bankers'
acceptances, having in each case a tenor of not more than 12 months, issued by
any Bank, or by any U.S. commercial bank or any branch or agency of a non-U.S.
bank licensed to conduct business in the U.S. having combined capital and
surplus of not less than $100,000,000 and whose short-term securities are rated
at least A-1 by S&P or at least P-1 by ▇▇▇▇▇'▇;
(iii) taxable and tax-exempt commercial paper of an
issuer rated at least A-1 by S&P or at least P-1 by ▇▇▇▇▇'▇ and in either case
having a tenor of not more than 270 days;
(iv) medium term notes of an issuer rated at least AA by
S&P or at lease Aa2 by ▇▇▇▇▇'▇ and having a remaining term of not more than 12
months after the date of acquisition by the Company or its Subsidiaries;
(v) municipal notes and bonds which are rated at least
SP-1 or AA by S&P or at least MIG-2 or Aa by ▇▇▇▇▇'▇ with tenors of not more
than 12 months;
(vi) investments in taxable or tax-exempt money market
funds with assets greater than $500,000,000 and whose assets have average
maturities less than or equal to 180 days and are rated at least A-1 by S&P or
at least P-1 by ▇▇▇▇▇'▇;
(vii) money market preferred instruments of an issuer
rated at least A-1 by S&P or at least P-1 by ▇▇▇▇▇'▇ with tenors of not more
than 12 months; or
(viii) such other comparable investments as may be
requested by Tenant and approved by Landlord and Lender, such approval not to be
unreasonably withheld.
37
(f) As long as no Event of Default exists, all interest accrued
on the Security Deposit shall be paid to Tenant as and when such interest is
received from the investment of the Security Deposit, but in no event more than
once per calendar quarter.
(g) Landlord shall have the right to designate Lender as the
holder of the Security Deposit during the term of the applicable Loan in which
event Lender shall have all of the rights of Landlord under this Paragraph 37.
Tenant covenants and agrees to execute such agreements, consents and
acknowledgments as may reasonably be requested by Landlord from time to time to
change the holder of the Security Deposit as hereinabove provided.
38. Right of First Refusal.
----------------------
(a) Except as otherwise provided in clause (h) of this
Paragraph 38, and provided an Event of Default does not then exist, if Landlord
shall enter into a bona fide, arms-length contract for the sale (the "Sale
----
Contract") of the Leased Premises with a Third Party Purchaser (which Sale
---------
Contract may include other property owned by Landlord so long as a specific
purchase price is allocated to the Leased Premises), such Sale Contract must be
conditioned upon Tenant's failure to exercise its right under this ▇▇▇▇▇▇▇▇▇ ▇▇,
▇▇▇▇▇▇▇▇ shall give written notice to Tenant of the Sale Contract, together with
a copy of the executed Sale Contract and the name and business address of the
Third Party Purchaser.
(b) For a period of thirty (30) days following receipt of such
notice, Tenant shall have the right, exercisable by written notice to Landlord
given within said thirty (30) day period, to elect to purchase the Leased
Premises at the purchase price (calculated on a comparable after-tax basis with
respect to capital gains, including depreciation and in cash) and upon all the
terms and conditions set forth in such Sale Contract except that no
contingencies contained in such Sale Contract as to environmental assessments,
engineering studies, inspection of the Leased Premises, availability of
financing, sale of other property, state of the title to or encumbrances on the
Leased Premises, or any other condition or contingency to the Third Party
Purchaser's obligation to purchase the Leased Premises which pertains to the
condition of the Leased Premises, the Third Party Purchaser's ability to take
certain action or any other factor beyond the control of Landlord, shall apply
to Tenant's obligation to purchase the Leased Premises under this Paragraph 38,
and Tenant shall be obligated to purchase the Leased Premises without any such
condition or contingency.
(c) If at the expiration of the aforesaid thirty (30) day
period Tenant shall have failed to exercise the aforesaid right of first
refusal, Landlord may sell the Leased Premises to such Third Party Purchaser
upon the terms set forth in such contract.
(d) Except as otherwise specifically provided herein, the
closing date for any purchase of the Leased Premises by Tenant pursuant to this
Paragraph 38 shall be the earlier to occur of (i) ninety (90) days after the
date of Tenant's notice to Landlord of its intention to purchase the Leased
Premises upon the terms of a Sale Contract with a Third Party Purchaser and (ii)
the closing date provided in such Sale Contract. At such closing Landlord shall
convey the Leased Premises to Tenant in accordance with, and Tenant shall pay to
Landlord the purchase price and other consideration set forth in, the applicable
contract.
(e) Tenant shall have the right during the Term to exercise the
foregoing right of first refusal upon (i) each proposed sale of the Leased
Premises prior to the tenth (10th) anniversary of the date of this Lease and
(ii) one (1) time during the period commencing with the tenth (10th) anniversary
of the date of this Lease and ending with the last day of the Term; provided,
that if, following compliance with the procedure described in Paragraph 38(b), a
Third Party Purchaser does not purchase the Leased Premises, such event shall
not count as an exercise of Tenant's right of first refusal.
38
(f) NOTWITHSTANDING ANYTHING TO THE CONTRARY, SUCH RIGHT SHALL
TERMINATE AND BE NULL AND VOID AND OF NO FURTHER FORCE AND EFFECT IF (1) TENANT
FAILS TO EXERCISE THE RIGHT OF FIRST REFUSAL GRANTED PURSUANT TO THIS PARAGRAPH
38(e)(ii), AND THE SALE TO THE THIRD PARTY PURCHASER IS CONSUMMATED OR IF (2)
THIS LEASE TERMINATES OR THE TERM EXPIRES OR (3) IF THE LEASED PREMISES ARE SOLD
OR TRANSFERRED PURSUANT TO THE EXERCISE OF A PRIVATE POWER OF SALE OR JUDICIAL
FORECLOSURE OR ACCEPTANCE OF A DEED IN LIEU THEREOF. IN SUCH EVENT TENANT SHALL
EXECUTE A QUITCLAIM DEED AND SUCH OTHER DOCUMENTS AS LANDLORD SHALL REASONABLY
REQUEST EVIDENCING THE TERMINATION OF ITS RIGHT OF FIRST REFUSAL.
(g) If Tenant does not exercise its right of first refusal to
purchase the Leased Premises and the Leased Premises are transferred to a Third
Party Purchaser, Tenant will attorn to any Third Party Purchaser as Landlord so
long as such Third Party Purchaser and Landlord notify Tenant in writing of such
transfer. At the request of Landlord, Tenant will execute such documents
confirming the agreement referred to above and such other agreements as Landlord
may reasonably request, provided that such agreements do not increase the
liabilities and obligations of Tenant hereunder.
(h) The provisions of this Paragraph 38 shall not apply to or
prohibit (i) any mortgaging, subjection to deed of trust or other hypothecation
of Landlord's interest in the Leased Premises, (ii) any sale of the Leased
Premises pursuant to a private power of sale under or judicial foreclosure of
any Mortgage or other security instrument or device to which Landlord's interest
in the Leased Premises is now or heareafter subject, (iii) any transfer of
Landlord's interest in the Leased Premises to a Lender, beneficiary under deed
of trust or other holder of a security interest therein or their designees by
deed in lieu of foreclosure; (iv) any transfer of the Leased Premises to any
governmental or quasi-governmental agency with power of condemnation, (v) any
transfer of the Leased Premises to any affiliate of Landlord, ▇▇▇▇▇
Institutional Properties Incorporated ("CIP") , Corporate Property Associates 12
Incorporated ("CPA12"), Corporate Property Associates 14 Incorporated ("CPA14")
or to any entity for whom W.P. ▇▇▇▇▇ & Co., Inc., ▇▇▇▇▇ Diversified LLC or any
of their affiliates provides management or advisory services or investment
advice, (vi) any transfers of interests in Landlord by any member to any other
member, (vii) any Person to whom any one or more of CIP, CPA12 and/or CPA14
sells all or substantially all of its assets, or (viii) any transfer of the
Leased Premises to any of the successors or assigns of any of the Persons
referred to in the foregoing clauses (i) through (iv).
39. Miscellaneous.
-------------
(a) The paragraph headings in this Lease are used only for
convenience in finding the subject matters and are not part of this Lease or to
be used in determining the intent of the parties or otherwise interpreting this
Lease.
(b) As used in this Lease, the singular shall include the
plural and any gender shall include all genders as the context requires and the
following words and phrases shall have the following meanings: (i) "including"
shall mean "including without limitation"; (ii) "provisions" shall mean
"provisions, terms, agreements, covenants and/or conditions"; (iii) "lien" shall
mean "lien, charge, encumbrance, title retention agreement, pledge, security
interest, mortgage and/or deed of trust"; (iv) "obligation" shall mean
"obligation, duty, agreement, liability, covenant and/or condition"; (v) "any of
the Leased Premises" shall mean "the Leased Premises or any part thereof or
interest therein"; (vi) "any of the Land" shall mean "the Land or any part
thereof or interest therein"; (vii) "any of the Improvements" shall mean "the
Improvements or any part thereof or interest therein"; (viii) "any of the
Equipment" shall mean
39
"the Equipment or any part thereof or interest therein"; and (ix) "any of the
Adjoining Property" shall mean "the Adjoining Property or any part thereof or
interest therein".
(c) Any act which Landlord is permitted to perform under this
Lease may be performed at any reasonable time and from time to time upon prior
written notice to Tenant (except in the event of an emergency in which case no
notice shall be required) by Landlord or any person or entity designated by
Landlord. Each appointment of Landlord as attorney-in-fact for Tenant hereunder
is irrevocable and coupled with an interest. Time is of the essence with respect
to the performance by each party of their respective obligations under this
Lease.
(d) Landlord shall in no event be construed for any purpose to
be a partner, joint venturer or associate of Tenant or of any subtenant,
operator, concessionaire or licensee of Tenant with respect to any of the Leased
Premises or otherwise in the conduct of their respective businesses.
(e) This Lease and any documents which may be executed by
Tenant on or about the effective date hereof at Landlord's request constitute
the entire agreement between the parties and supersede all prior understandings
and agreements, whether written or oral, between the parties hereto relating to
the Leased Premises and the transactions provided for herein. Landlord and
Tenant are business entities having substantial experience with the subject
matter of this Lease and have each fully participated in the negotiation and
drafting of this Lease. Accordingly, this Lease shall be construed without
regard to the rule that ambiguities in a document are to be construed against
the drafter.
(f) This Lease may be modified, amended, discharged or waived
only by an agreement in writing signed by the party against whom enforcement of
any such modification, amendment, discharge or waiver is sought.
(g) The covenants of this Lease shall run with the land and
bind Tenant, its successors and assigns and all present and subsequent
encumbrancers and subtenants of any of the Leased Premises, and shall inure to
the benefit of Landlord, its successors and assigns. If there is more than one
Tenant, the obligations of each shall be joint and several.
(h) If any one or more of the provisions contained in this
Lease shall for any reason be held to be invalid, illegal or unenforceable in
any respect, such invalidity, illegality or unenforceability shall not affect
any other provision of this Lease, but this Lease shall be construed as if such
invalid, illegal or unenforceable provision had never been contained herein.
(i) This Lease shall be governed by and construed and enforced
in accordance with the Laws of the State.
(j) In the event that either Landlord or Tenant is delayed,
interrupted or prevented, despite it best efforts, from performing any of its
obligations under this Lease (excluding any obligation to make any payment
required hereunder), and such delay, interruption or prevention is due to fire
or other casualty, acts of God, governmental act, embargo, strike or labor
dispute, unavailability of materials, or any other cause outside the reasonable
control of such party (financial inability, unavailability of sources of
financing, or changes in market conditions excepted), then the time for
performance of the affected obligations of Landlord or Tenant, as the case may
be, shall be extended for a period equivalent to the period of such delay,
interruption or prevention.
40
IN WITNESS WHEREOF, Landlord and Tenant have caused this Lease to be
duly executed as of the day and year first above written.
LANDLORD:
DELAWARE CHIP LLC, a Delaware limited
liability company
By: /s/ W. ▇▇▇▇ ▇▇▇▇▇
---------------------------------------
Title: First Vice President
------------------------------------
TENANT:
ADVANCED MICRO DEVICES, INC.,
a Delaware corporation
By: /s/ ▇. ▇▇▇▇▇▇▇
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Title: President & Chief Operating Officer
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EXHIBIT A
PREMISES
EXHIBIT "A"
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LEGAL DESCRIPTION
REAL PROPERTY in the City of Sunnyvale, County of Santa ▇▇▇▇▇, State of
California, described as follows:
Parcel A, as shown upon that Parcel Map recorded February 26, 1975 in Book 352
of Maps, pages 54 and 55, Santa ▇▇▇▇▇ County Records.
APN: ▇▇▇-▇▇-▇▇▇ & 021
ARB: ▇▇▇-▇▇-▇▇, 13, 14, 15, 18, 35, 42, 52, 53 and 57
Exhibit A-2
[This exhibit consists of a map of Parcel 1 and Parcel 2.]
EXHIBIT B
MACHINERY AND EQUIPMENT
All fixtures, machinery, apparatus, equipment, fittings and appliances of every
kind and nature whatsoever now or hereafter affixed or attached to or installed
in any of the Leased Premises (except as hereafter provided), including all
electrical, anti-pollution, heating, lighting (including hanging fluorescent
lighting), incinerating, power, air cooling, air conditioning, humidification,
sprinkling, plumbing, lifting, cleaning, fire prevention, fire extinguishing and
ventilating systems, devices and machinery and all engines, pipes, pumps, tanks
(including exchange tanks and fuel storage tanks), motors, conduits, ducts,
steam circulation coils, blowers, steam lines, compressors, oil burners,
boilers, doors, windows, loading platforms, lavatory facilities, stairwells,
fencing (including cyclone fencing), passenger and freight elevators, overhead
cranes and garage units, together with all additions thereto, substitutions
therefor and replacements thereof required or permitted by this Lease; but
excluding all personal property and all trade fixtures, machinery, office,
manufacturing and warehouse equipment which are not necessary to the operation,
as buildings, of the buildings which constitute part of the Leased Premises,
including, without limitation, the following items of personal property of
Tenant:
1. audio/visual equipment;
2. artwork; and
3. furniture and furniture systems.
EXHIBIT C
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Site Access Agreement.
An easement as follows as shown on the Map of Tract 2421, filed July 15, 1959 in
Book 108 of Maps, page 53, Santa ▇▇▇▇▇ County Records, being the same as shown
on the survey
For: Public Utilities, Storm Drainage and Sanitary Sewer Easement
Affects: The Southeasterly 10 feet of Lots 32 and 33 as shown on the Map
above referred to and as said 10 foot strip is shown on the Parcel
Map herein referred to and being the same as shown on the survey.
An easement as follows as shown on the Map of Tract 2421, filed July 15, 1959 in
Book 108 of Maps, page 53, Santa ▇▇▇▇▇ County Records, being the same as shown
on the survey.
For: Public Utilities
Affects: Southerly 1 foot of Westerly 25 feet of Lot 29 and Northerly 1 foot
of Easterly 25 feet of Westerly 215 feet of Lot 27 as shown on the
Map above referred to and as said easement is shown on the Parcel
Map herein referred to and being the same as shown on the survey.
A portion of public utilities easement dedicated on the Map of Tract 2421 has
been vacated by Resolution No. 4734 of the City of Sunnyvale, recorded
September 21, 1961 in Book 5304, page 288 of Official Records. The above
described portion of the easement was reserved in said resolution.
An easement as follows as shown on the Map of Tract 2726, filed June 13, 1960
in Book 121 of Maps, page 45, Santa ▇▇▇▇▇ County Records, being the same as
shown on the survey.
For: Public Utilities
Affects: Westerly 5 feet of Lot 5 as shown on the Map above referred to and
as said easement is shown on the Parcel Map referred to herein and
being the same as shown on the survey.
An easement as follows as shown on the Map of Tract 2726, filed June 13, 1960
in Book 121 of Maps, page 45, Santa ▇▇▇▇▇ County Records, being the same as
shown on the survey.
For: Wire Clearance
Affects: Easterly 5 feet of Westerly 5 feet of Lot 5 as shown on the Map
above referred to and as said easement is shown on the Parcel Map
referred to herein and being the same as shown on the survey.
EASEMENT for the purposes stated herein and incidents thereto, being the same
as shown on the survey.
Purpose: Single line of poles with such wires and cables as second parties
may suspend therefrom and all necessary and proper guys, anchors,
crossarms and braces and other features for transmitting and
distributing by Pacific Gas or electric energy and for rendering by
Pacific Telephone of communication services respectively, together
with a right-of-way therefor
Granted to: Pacific Gas and Electric Company and The Pacific Telephone and
Telegraph Company, a California corporation.
Recorded: July 24, 1962 in Book 5657, page 336, Official Records
Affects: As follows:
The certain parcel of land described in that certain deed executed by ▇▇▇▇▇▇
▇▇▇▇, et ux to ▇▇▇ ▇▇▇▇▇▇, et ux, recorded February 15, 1962 in Volume 5468 of
Official Records, at page 497, records of said County of Santa ▇▇▇▇▇.
The route of said line of poles across said premises shall be as follows, viz:
1. Within a strip of land of the uniform width of 5.0 feet, extending entirely
across said premises and lying contiguous to and Southeasterly of the
Northwesterly boundary line of said premises.
EASEMENT as shown on that Parcel Map recorded February 26, 1975 in Book 351 of
Maps, page 54 and 55, Santa ▇▇▇▇▇ County Records.
For : Public utilities, wire clearance, storm drainage, sanitary
sewer, building height and anchor purposes
Affects : A portion of sale land as shown on the survey
EASEMENT for the purposes stated herein and incidents thereto being the same as
shown on the survey
Purpose : The right from time to time to construct, install, inspect,
maintain, replace, remove, and use facilities, together with a
right-of-way thereof, and also ingress thereto and egress
therefrom
Granted to : Pacific Gas and Electric Company, a California corporation
Recorded : September 26, 1977 in Book D 164, page 465, Official Records
Affects : All of said Land as to ingress and egress; and a strip or
parcel of land or along a route as hereinafter set forth as to
the facilities:
1. Beginning at the found 3/4 inch iron pipe accepted as marking the Southeast
corner of said lands and running thence, Westerly along the Southerly boundary
line of said lands.
(1) South 88" 13' West 731.51 feet to the found 3/4 inch iron pipe accepted as
marking the Southwest corner of said lands: thence leaving said Southerly
boundary line of said lands and running Northerly along the Westerly boundary
line of said lands.
(2) North 1" 47' West 351.15 feet to the found 3/4 inch iron pipe accepted as
marking the point of intersection of said Westerly boundary line of said lands
with the Southerly boundary line of the City Street known as De Guigne Drive;
thence leaving said Westerly boundary line of said lands and running Easterly
and along said Southerly boundary line of said De Guigne Drive.
(3) On a curve to the left with a radius of 33.00 feet through a central angle
of 17" 38' 23" and tangent at the Westerly terminus thereof to a line which has
a bearing of North 88" 13' East, an arc distance of 10.16 feet; thence leaving
said Southerly boundary line of said De Guigne Drive and running.
(4) South 1" 47' East 342.70 feet; thence
(5) North 88" 13' East 724.49 feet to a point in the Easterly boundary line of
said lands; thence Southerly along said Easterly boundary line of said lands.
(6) South 14" 48' West 10 feet, more or less, to the point of beginning.
And being the same as shown on the survey
EASEMENT for the purposes stated herein and incidents thereto
Purpose : Public Utilities
Granted to : City of Sunnyvale, a municipal corporation
Recorded : June 13, 1978 in Book D738, page 165, Official Records
Affects : As follows:
Commencing at the point of intersection of the centerline of ▇▇▇▇▇▇▇▇
Expressway, a 67.01 foot half street, with the centerline of East ▇▇▇▇▇ Avenue,
86 feet wide, as shown on that certain Parcel Map for the lands of Western
Electric Company records in Book 351 of Maps, page 54 and 55, Santa ▇▇▇▇▇ County
Records: thence South 88" 44' 39" West along said centerline of East ▇▇▇▇▇
Avenue and its Westerly prolongation, 561.01 feet; thence South 0" 03' 31" East
53.84 feet; thence South 89" 56' 29" West, 33.00 feet to a point in the Westerly
line of San Xavier Avenue; thence along the arc of a tangent curve to the left
having a radius of 150.00 feet, through a central angle of 0" 17' 00", a
distance of 0.74 feet to the true point of beginning; thence from a tangent
bearing of North 0" 20' 31" West, along the arc of a compound curve to the left
having a radius of 19.00 feet through a central angle of 91" 11' 50" a distance
of 30.24 feet; thence North 1" 15' 21" West, 7.00 feet; thence South 88" 44' 39"
West 63.96 feet; thence North 1" 15' 21" West 26.00 feet to a point in said
Westerly prolongation of East ▇▇▇▇▇ Avenue, thence North 88" 44' 39" East along
said prolongation 25.33 feet; thence North 1" 15' 21" West 33.00 feet; thence
from a tangent bearing of North 88" 44' 39" East, along the arc of a curve to
the left having a radius of 19.00 feet, through a central angle of 120" 01' 00",
a distance of 39.80 feet to a point of tangency on the Southwesterly line of
said East ▇▇▇▇▇ Avenue; thence South 31" 16' 21" East along said Southeasterly
line 42.12 feet; thence along the arc of a tangent curve to the right having a
radius of 150.00 feet, through a central angle of 30" 55' 50", a distance of
80.98 feet to the true point of beginning.
And being the same as shown on the survey.
UNRECORDED LEASE for the term and upon the terms and conditions contained
therein
Dated : As of December 22, 1998
Lessor : Delaware Chip LLC, a Delaware limited liability company
Lessee : Advanced Micro Devices, Inc., a Delaware corporation
Disclosed by : Memorandum of Lease, recorded December ____, 1998 as
Instrument No. ______________ Official Records.
A DEED OF TRUST to secure an indebtedness in the original principal sum shown
below and any other amounts and/or obligations secured thereby
Amount : $68,250,000.00
Dated : December ____, 1998
Trustor : Delaware Chip LLC, a Delaware limited liability company
Trustee : First American Title Insurance Company
Beneficiary : GMAC Commercial Mortgage Corporation, a California
corporation
Address :
Recorded : December ____, 1998, as Instrument No. _________ Official
Records.
EXHIBIT D
BASIC RENT PAYMENTS
1. Basic Rent. Subject to the adjustments provided for in
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Paragraphs 2, 3 and 4 below, Basic Rent payable in respect of the Term shall be
$9,145,500 per annum, payable monthly in advance on each Basic Rent Payment
Date, in equal installments of $762,125 each.
2. CPI Adjustments to Basic Rent. The Basic Rent shall be subject
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to adjustment, in the manner hereinafter set forth, for increases in the index
known as United States Department of Labor, Bureau of Labor Statistics, Consumer
Price Index, All Urban Consumers, United States City Average, All Items, (1982-
84=100) ("CPI") or the successor index that most closely approximates the CPI.
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If the CPI shall be discontinued with no successor or comparable successor
index, Landlord and Tenant shall attempt to agree upon a substitute index or
formula, but if they are unable to so agree, then the matter shall be determined
by arbitration in accordance with the rules of the American Arbitration
Association then prevailing in San Francisco, California. Any decision or award
resulting from such arbitration shall be final and binding upon Landlord and
Tenant and judgment thereon may be entered in any court of competent
jurisdiction. In no event will the Basic Rent as adjusted by the CPI adjustment
be less than the Basic Rent in effect for the three (3) year period immediately
preceding such adjustment.
3. Arbitration of Disputes. NOTICE: BY INITIALING IN THE SPACE
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BELOW YOU ARE AGREEING TO HAVE ANY DISPUTE ARISING OUT OF THE MATTERS INCLUDED
IN PARAGRAPH 2 ABOVE DECIDED BY NEUTRAL ARBITRATION AS PROVIDED BY CALIFORNIA
LAW AND YOU ARE GIVING UP ANY RIGHTS YOU MIGHT POSSESS TO HAVE THE DISPUTE
LITIGATED IN A COURT OR JURY TRIAL. BY INITIALING IN THE SPACE BELOW YOU ARE
GIVING UP YOUR JUDICIAL RIGHTS TO DISCOVERY AND APPEAL UNLESS THOSE RIGHTS ARE
SPECIFICALLY INCLUDED IN PARAGRAPH 2 ABOVE. IF YOU REFUSE TO SUBMIT THE
ARBITRATION AFTER AGREEMENT TO THIS PROVISION, YOU MAY BE COMPELLED TO ARBITRATE
UNDER THE AUTHORITY OF THE CALIFORNIA CODE OF CIVIL PROCEDURE. YOUR AGREEMENT
TO THIS ARBITRATION PROVISION IS VOLUNTARY. WE HAVE READ AND UNDERSTAND THE
FOREGOING AND AGREE TO SUBMIT DISPUTES ARISING OUT OF THE MATTERS INCLUDED IN
PARAGRAPH 2 ABOVE TO NEUTRAL ARBITRATION.
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Landlord Tenant
4. Effective Dates of CPI Adjustments. Basic Rent shall not be
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adjusted to reflect changes in the CPI until the third (3rd) anniversary of the
Basic Rent Payment Date on which the first full monthly installment of Basic
Rent shall be due and payable (the "First Full Basic Rent Payment Date"). As of
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the third (3rd) anniversary of the First Full Basic Rent Payment Date and
thereafter on the sixth (6th), ninth (9th), twelfth (12th), fifteenth (15th) and
eighteenth (18th) and, if the initial Term is extended, on the twenty-first
(21st), twenty-fourth (24th), and twenty-seventh (27th), and, if the Term is
further extended, on the thirtieth (30th), thirty-third (33rd), thirty-sixth
(36th) and thirty-ninth (39th) anniversaries of the First Full Basic Rent
Payment Date and, if the Term is further extended pursuant to Paragraph 5(c), on
each third (3rd ) anniversary of the First Full Rent Payment Date thereafter,
Basic Rent shall be adjusted to reflect increases in the CPI during the most
recent three (3) year period immediately preceding each of the foregoing dates
(each such date being hereinafter referred to as the "Basic Rent Adjustment
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Date").
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5. Method of Adjustment for CPI Adjustment.
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(a) As of each Basic Rent Adjustment Date when the average CPI
determined in clause (i) below exceeds the Beginning CPI (as defined in this
Paragraph 5(a)), the Basic Rent in effect immediately prior to the applicable
Basic Rent Adjustment Date shall be multiplied by a fraction, the numerator of
which shall be two (2) times the difference between (i) the average CPI for the
three (3) most recent calendar months (the "Prior Months") ending prior to such
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Basic Rent Adjustment Date for which the CPI has been published on or before the
forty-fifth (45th) day preceding such Basic Rent Adjustment Date and (ii) the
Beginning CPI, and the denominator of which shall be the Beginning CPI. An
amount equal to the lesser of (x) the product of such multiplication or 6.903%
of the Basic Rent in effect immediately prior to such Basic Rent Adjustment Date
shall be added to the Basic Rent in effect immediately prior to such Basic Rent
Adjustment Date. As used herein, "Beginning CPI" shall mean the average CPI for
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the three (3) calendar months corresponding to the Prior Months, but occurring
three (3) years earlier. If the average CPI determined in clause (i) is the
same or less than the Beginning CPI, the Basic Rent will remain the same for the
ensuing three (3) year period.
(b) Effective as of a given Basic Rent Adjustment Date, Basic
Rent payable under this Lease until the next succeeding Basic Rent Adjustment
Date shall be the Basic Rent in effect after the adjustment provided for as of
such Basic Rent Adjustment Date.
(c) Notice of the new annual Basic Rent shall be delivered to
Tenant on or before the tenth (10th) day preceding each Basic Rent Adjustment
Date, but any failure to do so by Landlord shall not be or be deemed to be a
waiver by Landlord of Landlord's rights to collect such sums. Tenant shall pay
to Landlord, within ten (10) days after a notice of the new annual Basic Rent is
delivered to Tenant, all amounts due from Tenant, but unpaid, because the stated
amount as set forth above was not delivered to Tenant at least ten (10) days
preceding the Basic Rent Adjustment Date in question.
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EXHIBIT E
INTENTIONALLY DELETED
EXHIBIT F
RECORDING REQUESTED BY, AND
WHEN RECORDED RETURN TO:
___________________________
SUBORDINATION, NON-DISTURBANCE AND ATTORNMENT AGREEMENT
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RECITALS
This SUBORDINATION, NON-DISTURBANCE AND ATTORNMENT AGREEMENT ("AGREEMENT")
is entered into as of this ____ day of __________, ____, by and among ADVANCED
MICRO DEVICES, INC., a Delaware corporation ("TENANT"). __________________, a
________________ corporation ("LENDER") and DELAWARE CHIP LLC, a Delaware
limited liability company ("LANDLORD").
A. Pursuant to a Lease Agreement dated as of December 22, 1998 (the
"LEASE") between Landlord and Tenant, Tenant is leasing from Landlord all of
that certain real property located in the County of Santa ▇▇▇▇▇, State of
California, more particularly described in Exhibit A attached hereto, together
with the buildings improvements located thereon (hereinafter referred to as the
"PROPERTY").
B. Lender intends to make a loan to Landlord in the amount of $ _____.00
with interest thereon (the "LOAN"), evidenced by a certain Promissory Note
secured by a Deed of Trust, Security Agreement and Fixture Filing of even date
herewith (together with any consolidations, replacements, extensions,
modifications and renewals thereof and any other mortgage on the Property which
may hereafter be held by Lender, the "SECURITY INSTRUMENT"), constituting a
valid lien upon the Property and secured by an assignment of Landlord's interest
in the Lease as more particularly set forth in a certain Assignment of Leases
and Rents (the "ASSIGNMENT").
C. As a condition precedent to funding the Loan, Lender has required that
Landlord and Tenant make certain agreements with Lender with respect to the
Lease.
NOW, THEREFORE, in consideration of the foregoing facts and mutual
covenants contained herein, the parties hereto do hereby agree as follows:
1. ASSIGNMENT; PAYMENT. Tenant hereby acknowledges and agrees that it has
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notice that the Lease and the rent and all other sums due thereunder have been
assigned or are to be assigned to Lender as security for the obligations secured
by the Security Instrument and agrees to such assignment. Tenant agrees to pay
such sums due under the Lease directly to Lender. In complying with these
provisions. Tenant shall be entitled to rely solely upon the notices given by
Lender and Landlord hereby permits said direct payments to be made. Tenant shall
be entitled to full credit under the Lease for any rents paid to Lender in
accordance with the provisions of this Paragraph to the same extent as if such
rents were paid directly to Landlord.
2. SUBORDINATION. Subject to the terms hereof and by its execution
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hereof, Tenant acknowledges that the Security Instrument in favor of Lender,
shall remain a lien on the Property until such time when fully paid or otherwise
disposed of pursuant to the terms thereof, prior and superior to the Lease
(including specifically, without limitation, any option to purchase or rights of
first refusal affecting the Property, or any portion thereof, contained
therein), the leasehold estate created thereby and Tenant's right, title and
interest in the Property as if the Security Instrument had been executed,
delivered and duly recorded in the appropriate land records prior to the
execution and delivery of the Lease.
3. ATTORNMENT. If the interest of Landlord in the Property and under the
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Lease shall be acquired by Lender by reason of foreclosure of the Security
Instrument or any other act or proceeding(s) made or brought to enforce the
rights of the Lender, including, but not limited to, by deed in lieu of
foreclosure or as a result of any other means, then the Lease and all terms
therein, and the rights of Tenant thereunder, shall continue in full force and
effect and shall not be altered, terminated, or disturbed, except in accordance
with the terms of the Lease, and Tenant shall be bound to Lender and Lender
shall be bound to Tenant, subject to the terms hereof, under all of the terms,
covenants and conditions of the Lease for the balance of the term and any
renewals thereof with the same force and effect as if the Lender were the
Landlord under the Lease. In the event Lender acquires the interest of Landlord,
Tenant hereby agrees to attorn to Lender as its landlord, said attornment to be
effective and self-operative without the execution of any other instruments on
the part of either party hereto, immediately upon Lender succeeding to the
interest of Landlord under the Lease with written notice of same being delivered
to Tenant. Upon receipt by Tenant of said written notice from Lender that Lender
has succeeded to the interest of Landlord under the Lease, Tenant will make all
payments of monetary obligations due by Tenant under the Lease at the address
provided by Lender in the notice. Tenant agrees, however, upon the election of
and written demand by Lender within sixty (60) days after Lender receives title
to Property, to execute an instrument in confirmation of the foregoing
provisions, mutually satisfactory to Lender and Tenant, in which Lender and
Tenant shall acknowledge these agreements.
4. NONDISTURBANCE. If it becomes necessary to foreclose the Security
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Instrument, Lender will not terminate the Lease nor join Tenant in summary or
foreclosure proceedings so long as an Event of Default as defined in the Lease
has not occurred with respect to Tenant. If Lender shall succeed to the
interests of Landlord under the Lease, Lender shall be bound to the Tenant under
all of the terms, covenants and conditions of the Lease from and after the date
of such succession to Landlord's interest in the Lease, and Lender agrees to
recognize Tenant and further agrees that, provided an Event of Default under the
Lease has not occurred with respect to Tenant, Tenant shall not be disturbed in
its possession or use of the Property, said nondisturbance to be effective and
self-operative without the execution of any other instrument(s) on the part of
either party hereto, immediately upon Lender succeeding to the interest of
Landlord under the Lease. Tenant shall, from and after Lender's succession to
the interests of Landlord under the Lease, have the same remedies against Lender
for the breach of any provision contained in the Lease that Tenant might have
had under the Lease against Landlord if Lender had not succeeded to the
interests of Landlord under the Lease; provided further, however, that Lender
and any purchaser at foreclosure or owner by virtue of a deed in lieu of
foreclosure shall not be:
(a) liable for any acts or omissions of any prior landlord
(including, but not limited to, Landlord): or
(b) subject to any offsets or defenses which Tenant may have against
any prior landlord (including, but not limited to, Landlord); or
(c) liable for any consequential damages attributable to any acts or
omissions of any prior landlord (including, but not limited to, Landlord); or
(d) obligated to give Tenant a credit for or acknowledge any rent or
any other sums not delivered to Lender which Tenant has paid to Landlord in
excess of the rent due under the Lease at the time Lender gave Tenant notice of
its succession to the Landlord's interest; or
(e) liable for the repayment of any monies paid by Tenant under the
Lease, including, without limitation, security deposits, unless Lender actually
received possession of such monies and except to the extent provided in that
certain Assignment of Leases, Rents and Security Deposit dated the date hereof
between Lender and Landlord, as Borrower, and acknowledged and agreed to by
Tenant; or
(f) obligated to commence or complete any construction or contribute
toward the construction or installation of any improvements required under the
Lease, or expand or rehabilitate existing improvements thereon, or restore
improvements following any casualty not required to be insured under the Lease
or pay the costs of any restoration in excess of the proceeds recovered under
any insurance required to be carried under the Lease; or
(g) liable for any damages or other relief attributable to any latent
or patent defects in construction; or
(h) liable for any costs or expenses related to any indemnification
provided by any prior landlord (including, but not limited to, Landlord) with
respect to the presence or clean-up of any hazardous substances or materials in,
on, under or about the leased premises; or
(i) bound by any amendment or modification of the Lease made without
its consent and knowledge.
Additionally, in such event, Tenant shall be bound to Lender, and Lender
shall be bound to Tenant, subject to the terms hereof, under all of the terms,
covenants and conditions of the Lease, and Lender and Tenant shall, from and
after Lender's succession to the interest of Landlord under the Lease, have the
same remedies against each other for the breach of any provision
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contained in the Lease that they might have had under the Lease against each
other if Lender were the original Landlord under the Lease.
5. LIMITATIONS ON LIABILITY. Neither this Agreement, the Assignment, nor
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anything to the contrary in the Lease shall, prior to Lender's acquisition of
Landlord's interest in and possession of the Property, operate to give rise to
or create any responsibility or liability for the control, care, management or
repair of the Property upon Lender, or impose responsibility for the carrying
out by Lender of any of the covenants, terms and conditions of the Lease, or
constitute Lender a "mortgagee in possession," nor shall said instrument operate
to make Lender responsible or liable for any waste committed on the Property by
any person whatsoever, or for any dangerous or defective condition of the
Property, or for any negligence in the management, upkeep, repair or control of
the Property resulting in loss, injury or death to any tenant, licensee,
invitee, guest, employee, agent or stranger, provided however that Tenant will
accept performance by Lender of any obligation required to be performed by
Landlord under the terms of the Lease with the same force and effect as though
performed by Landlord. Notwithstanding anything to the contrary in the Lease,
Lender shall be responsible (subject to the limitations under paragraph 4 above)
for performance of only those covenants and obligations of the Lease accruing
after Lender's acquisition of Landlord's interest in and possession of the
Property. In the event Lender becomes substitute landlord, Lender may assign its
interest as substitute landlord without notice to or the consent of Tenant
provided that such substitute landlord expressly assumes Lender's obligations as
substitute Landlord under that Agreement.
Anything herein or in the Lease to the contrary notwithstanding, in the
event that Lender shall acquire title to the Property, Lender shall have no
obligation, nor incur any liability beyond the then-existing ownership interest,
if any, of Lender in the Property and Tenant shall look exclusively to such
interest of Lender in the Property for the payment and discharge of any
obligations imposed upon Lender hereunder or under the Lease, and Lender is
hereby released and relieved of any other liability hereunder and under the
Lease. As regards Lender, Tenant shall look solely to the estate or interest
owned by Lender in the Property and Tenant will not collect or attempt to
collect any judgment out of any other assets of Lender.
6. WARRANTIES AND REPRESENTATIONS. Tenant hereby warrants, represents,
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covenants and agrees to and with Lender:
(a) not to alter, modify, cancel, terminate or surrender the Lease,
except as provided therein;
(b) after the date hereof (except as otherwise expressly provided in
the Lease), not to enter into any agreement with Landlord, its successors
or assigns, which grants any concession with respect to the Lease or which
reduces the rent or other Tenant obligations called for thereunder without
the express written consent of Lender and Tenant acknowledges that any such
agreement entered into without Lender's consent shall not be binding on
Lender;
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(c) after the date hereof (except as otherwise expressly provided in
the Lease), not to create any offset or claims against rents, or prepay
rent more than thirty (30) days in advance;
(d) that Tenant is now lessee of the leasehold estate created by the
Lease and shall not hereafter assign the Lease except as permitted by the
terms thereof;
(e) to promptly certify in writing to Lender, in connection with any
proposed assignment of the Security Instrument, whether or not any default
on the part of Landlord is claimed to exist under the Lease, and what any
such claimed default factually involves; and
(f) that Tenant shall not voluntarily subordinate the Lease to any
other lien or encumbrance (except as otherwise expressly provided in the
Lease).
7. NO WAIVER. Notwithstanding any other provision of this Agreement,
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where Lender acquires Landlord's interest in and possession of the Property and
a Landlord default has occurred and is continuing, Tenant shall not be
considered as having waived its rights to require that Lender remedy such
default if the Landlord default continues after the date Lender acquires
Landlord's interest in and possession of the Property. In that case, Lender
shall have no liability for Landlord's default as it applies to the period
before Lender's acquisition of Landlord's interest in and possession of the
Property, but shall be liable for any failure to cure such continuing default
thereafter, provided only that Lender receives the benefit of any notice and
cure period required by the Lease or hereunder.
8. GOVERNING LAW. This Agreement shall be governed by and construed in
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accordance with the internal laws of the State of California.
9. NOTICE AND CURE. In the event that Landlord shall default in the
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performance or observance of any of the terms, conditions or agreements in the
Lease, Tenant shall give written notice thereof to Lender and Lender shall have
the right (but not the obligation) to cure such default. Tenant further agrees
that if Landlord shall have failed to cure such default within the time provided
for in the Lease, then the Lender shall have an additional forty-five (45) days
within which to cure such default or if such default cannot be cured within that
time, then such additional time as may be necessary to cure such default shall
be granted if within such forty-five (45) days Lender has commenced and is
diligently pursuing the remedies necessary to cure such default (including, but
not limited to, commencement of foreclosure proceedings, if necessary to effect
such cure), in which event the Lease shall not be terminated while such remedies
are being so diligently pursued and provided that if and to the extent any such
defaults are monetary in nature, Lender has cured the monetary aspects of such
defaults within such forty-five (45) day period.
10. BINDING EFFECT; DEFINITIONS. The provisions of this Agreement shall be
---------------------------
covenants running with the Property, and shall be binding upon and inure to
the benefit of the respective parties hereto and their respective heirs,
legatees, executors, administrators, beneficiaries,
-5-
successors and assigns, including without limitation (a) any person who shall
obtain, directly or by assignment or conveyance, any interest in the Security
Instrument and any person who shall obtain any interest in the Property, whether
through foreclosure or otherwise. As used herein the term "TENANT" shall include
Tenant, its successors and assigns; the words "FORECLOSURE" and 'FORECLOSURE
SALE" as used herein shall be deemed to include the acquisition of Landlord's
estate in the Property by voluntary deed (or assignment) in lieu of foreclosure;
and the word "LENDER" shall include Lender herein specifically named and any of
its successors and assigns, including anyone who shall have succeeded to
Landlord's interest in the Property by, through or under foreclosure of the
Security Instrument.
11. ENTIRE AGREEMENT. This Agreement shall be the whole and only agreement
----------------
between the parties hereto with regard to the subordination of the Lease and
leasehold interest of Tenant to the Security Instrument in favor of Lender, and,
with respect to Lender and Tenant only, shall supersede and cancel any prior
agreements as to such, or any, subordination, including, but not limited to,
those provisions, if any, contained in the Lease, which provide for the
subordination of the Lease and leasehold interest of Tenant to a deed or deeds
of trust or to a Security Instrument of Security Instruments to be thereafter
executed, and shall not be modified or amended except in writing signed by all
parties hereto.
12. CONSIDERATION. Tenant declares, agrees and acknowledges that it
-------------
intentionally and unconditionally waives, relinquishes and subordinates the
Lease and leasehold interest in favor of the Security Instrument above mentioned
to the extent set forth in this Agreement, and, in consideration of this waiver,
relinquishment and subordination, specific loans and advances are being and will
be made and, as part and parcel thereof, specific monetary and other obligations
are being and will be entered into which would not be made or entered into but
for said reliance upon this waiver, relinquishment and subordination. Lender
acknowledges and agrees that Tenant is relying on the agreements and obligations
of Lender hereunder in executing this Agreement.
13. INVALIDITY OR UNENFORCEABILITY. If any term, covenant or condition of
------------------------------
this Agreement is held to be invalid, illegal or unenforceable in any respect,
this Agreement shall be construed without such provision.
14. NUMBER AND GENDER. The use of the neuter gender in this Agreement
-----------------
shall be deemed to include any other gender, and words in the singular number
shall be held to include the plural, when the sense requires.
15. COUNTERPARTS. This Agreement may be executed in one or more
------------
counterparts each of which shall be deemed to be an original and all of which,
when taken together, shall be deemed one and the same document.
16. NOTICE. Any notice required or allowed by this Agreement shall be in
------
writing and shall be (i) hand-delivered, effective upon receipt, or (ii) sent by
United States Express Mail or by private overnight courier, effective upon
receipt, or (iii) served by certified mail, postage prepaid, return receipt
requested, deemed effective on the day of actual delivery as shown by the
-6-
addressee's return receipt or the expiration of three (3) business days after
the date of mailing, whichever is the earlier in time; addressed to the party
intended to receive the same at the address set forth below;
If to Tenant Advanced Micro Devices, Inc.
▇▇▇ ▇▇▇ ▇▇▇▇▇
▇▇▇▇▇▇▇▇▇, ▇▇▇▇▇▇▇▇▇▇ ▇▇▇▇▇
Attention: General Counsel
With Copy to: Shartsis, ▇▇▇▇▇▇ & ▇▇▇▇▇▇▇▇ LLP
▇▇▇ ▇▇▇▇▇▇▇▇ ▇▇▇▇▇
▇▇▇ ▇▇▇▇▇▇▇▇▇, ▇▇▇▇▇▇▇▇▇▇ ▇▇▇▇▇
Attention: ▇▇▇▇▇ ▇▇▇▇▇▇
If to Landlord: Delaware CHIP LLC
c/o W.P. ▇▇▇▇▇ & Co., Inc.
▇▇ ▇▇▇▇▇▇▇▇▇▇▇ ▇▇▇▇▇ - ▇▇▇ ▇▇▇▇▇
▇▇▇ ▇▇▇▇, ▇▇▇ ▇▇▇▇, ▇▇▇▇▇
Attention: ▇▇. ▇▇▇▇ ▇▇▇▇▇
With Copy to: ▇▇▇▇ ▇▇▇▇▇ ▇▇▇▇ & ▇▇▇▇▇▇ LLP
▇▇▇▇ ▇▇▇ ▇▇▇▇▇▇▇ ▇▇▇▇▇
▇▇▇▇▇▇▇▇▇▇▇▇, ▇▇▇▇▇▇▇▇▇▇▇▇ ▇▇▇▇▇
Facsimile No. (▇▇▇) ▇▇▇-▇▇▇▇
Attn: Chairman, Real Estate Department
If to Lender:
With a copy to:
And
-7-
The parties may, by written notice to the others, designate a different
mailing address for notices.
18. Confidentiality. Lender hereby agrees, with respect to information
---------------
requested by Lender or required to be delivered to Lender pursuant to the terms
of the Security Instrument or the other loan documents, to be bound to the
confidentiality provisions contained in Section 28(c) of the Lease as of the
date hereof.
-8-
IN WITNESS WHEREOF, the parties have executed this Agreement as of the date
first above written.
LANDLORD:
DELAWARE CHIP LLC,
a Delaware limited liability company
By: MICRO (CA) QRS 11-43, INC.,
a Delaware corporation,
Its Manager
By:_________________________
W. ▇▇▇▇ ▇▇▇▇▇
First Vice President
TENANT;
ADVANCED MICRO DEVICES, INC.,
a Delaware corporation
By: ____________________________
Name: ______________________
Title: ______________________
LENDER:
GMAC COMMERCIAL MORTGAGE
CORPORATION, a California
corporation
By: ____________________________
Name: ______________________
Title: ______________________
-▇-
▇▇▇▇▇ ▇▇ ▇▇▇ ▇▇▇▇ )
) ss: _______________________
COUNTY OF NEW YORK )
On December ______, 1998, before me, _____________, a Notary Public in and
for the State of California, personally appeared W. ▇▇▇▇ ▇▇▇▇▇, personally known
to me (or proved to me on the basis of satisfactory evidence) to be the person
whose name is subscribed to the within instrument, and acknowledged to me that
he executed the within instrument in his authorized capacity and that, by his
signature on the within instrument, the person or entity upon behalf of which he
acted executed the within instrument.
WITNESS my hand and official seal.
Signature:_____________________________ (SEAL)
STATE OF NEW YORK )
) ss: _______________________
COUNTY OF NEW YORK )
On December ______, 1998, before me, _____________, a Notary Public in and
for the State of California, personally appeared _______________, personally
known to me (or proved to me on the basis of satisfactory evidence) to be the
person whose name is subscribed to the within instrument, and acknowledged to me
that he executed the within instrument in his authorized capacity and that, by
his signature on the within instrument, the person or entity upon behalf of
which he acted executed the within instrument.
WITNESS my hand and official seal.
Signature: ____________________________ (SEAL)
-▇▇-
▇▇▇▇▇ ▇▇ ▇▇▇▇▇▇▇▇▇▇ )
) ss: _______________
COUNTY OF )
On December ____, 1998, before me, _______________, a Notary Public in and
for the State of California, personally appeared ____________, personally known
to me (or proved to me on the basis of satisfactory evidence) to be the person
whose name is subscribed to the within instrument, and acknowledged to me that
he executed the within instrument in his authorized capacity and that, by his
signature on the within instrument, the person or entity upon behalf of which he
acted executed the within instrument.
WITNESS my hand and official seal.
Signature: ___________________________ (SEAL)
-11-
EXHIBIT G
SCHEDULE OF TERMINATION AMOUNTS
The Termination Amount shall equal the following amounts for the specified lease
year plus the Prepayment Premium.
Lease Year Amount
-----------------------------------------
1 $ 99,546,291.00
-----------------------------------------
2 $ 99,546,291.00
-----------------------------------------
3 $ 99,546,291.00
-----------------------------------------
4 $ 99,546,291.00
-----------------------------------------
5 $101,405,445.00
-----------------------------------------
6 $101,405,445.00
-----------------------------------------
7 $101,405,445.00
-----------------------------------------
8 $101,405,445.00
-----------------------------------------
9 $ 98,194,241.00
-----------------------------------------
10 $ 98,194,241.00
-----------------------------------------
11 $ 98,194,241.00
-----------------------------------------
12 $ 98,194,241.00
-----------------------------------------
13 $ 96,429,228.00
-----------------------------------------
14 $ 96,429,228.00
-----------------------------------------
15 $ 94,295,854.00
-----------------------------------------
16 $ 94,295,854.00
-----------------------------------------
17 $ 93,815,960.00
-----------------------------------------
18 $ 93,815,960.00
-----------------------------------------
19 $ 93,815,960.00
-----------------------------------------
20 $ 93,815,960.00
-----------------------------------------