EXHIBIT 10.42
LEASE AGREEMENT
BY AND BETWEEN
AETNA LIFE INSURANCE COMPANY,
A CONNECTICUT CORPORATION
AS LANDLORD
AND
AFFYMETRIX, INC.,
a Delaware corporation
AS TENANT
DATED July 30, 1999
LEASE SUMMARY
PRESENTED TO
AFFYMETRIC, INC.
PRESENTED BY
▇▇▇▇▇▇▇ ▇. ▇▇▇▇▇▇
▇▇▇▇ ▇▇▇▇▇▇▇
▇▇▇▇▇ ▇▇▇▇▇▇▇
CPS, The Commercial Property Service Company
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(▇▇▇) ▇▇▇-▇▇▇▇
August 6, 1999
PREMISES: ▇▇▇▇ ▇▇▇▇▇ ▇▇▇▇, ▇▇▇▇▇▇▇▇▇
SQUARE FEET: 57,649 square feet
LEASE COMMENCEMENT: October 1, 1999
LEASE EXPIRATION: September 30, 2004
LANDLORD: Aetna Life Insurance Company
LANDLORD CONTACT NAME: Insignia/ESG, Inc. (Property Manager)
LANDLORD CONTRACT NUMBER: ▇▇▇-▇▇▇-▇▇▇▇
TERM OF LEASE: 5 years
TENANT IMPROVEMENT ALLOWANCE: $576,490.00
INITIAL RENT: $1.85 per square foot, NNN ($106,650.65/mo.)
RENT ADJUSTMENTS: Four percent (4%) annual
SECURITY DEPOSIT: $498,087.36
OPTIONS: Option to Renew (Par. 49) & Right of First
Offer (Par. 50)
TABLE OF CONTENTS
Page
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Basic Lease Information. . . . . . . . . . . . . . . . . . . . . . . . . iv
1. Demise . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1
2. Premises . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1
3. Term . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2
4. Rent . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3
5. Utility Expenses. . . . . . . . . . . . . . . . . . . . . . . . . . 10
6. Late Charge . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11
7. Security Deposit. . . . . . . . . . . . . . . . . . . . . . . . . . 11
8. Possession. . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12
9. Use Of Premises . . . . . . . . . . . . . . . . . . . . . . . . . . 13
10. Acceptance Of Premises . . . . . . . . . . . . . . . . . . . . . . 15
11. Surrender . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15
12. Alterations And Additions . . . . . . . . . . . . . . . . . . . . . 16
13. Maintenance and Repairs Of Premises . . . . . . . . . . . . . . . . 18
14. Landlord's Insurance. . . . . . . . . . . . . . . . . . . . . . . . 20
15. Tenant's Insurance. . . . . . . . . . . . . . . . . . . . . . . . . 20
16. Indemnification . . . . . . . . . . . . . . . . . . . . . . . . . . 21
17. Subrogation . . . . . . . . . . . . . . . . . . . . . . . . . . . . 22
18. Signs . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 23
19. Free From Liens . . . . . . . . . . . . . . . . . . . . . . . . . . 23
20. Entry By Landlord . . . . . . . . . . . . . . . . . . . . . . . . . 24
21. Destruction And Damage. . . . . . . . . . . . . . . . . . . . . . . 24
22. Condemnation. . . . . . . . . . . . . . . . . . . . . . . . . . . . 26
23. Assignment And Subletting . . . . . . . . . . . . . . . . . . . . . 27
24. Tenant's Default. . . . . . . . . . . . . . . . . . . . . . . . . . 31
i
25. Landlord's Remedies . . . . . . . . . . . . . . . . . . . . . . . . 33
26. Landlord's Right to Perform Tenant's Obligations. . . . . . . . . . 36
27. Attorney's Fees . . . . . . . . . . . . . . . . . . . . . . . . . . 37
28. Taxes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 37
29. Effect Of Conveyance. . . . . . . . . . . . . . . . . . . . . . . . 37
30. Tenant's Estoppel Certificate . . . . . . . . . . . . . . . . . . . 37
31. Subordination . . . . . . . . . . . . . . . . . . . . . . . . . . . 38
32. Environmental Covenants . . . . . . . . . . . . . . . . . . . . . . 39
33. Notices . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 42
34. Waiver. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 43
35. Holding Over. . . . . . . . . . . . . . . . . . . . . . . . . . . . 43
36. Successors And Assigns. . . . . . . . . . . . . . . . . . . . . . . 44
37. Time. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 44
38. Brokers . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 44
39. Limitation Of Liability . . . . . . . . . . . . . . . . . . . . . . 44
40. Financial Statements. . . . . . . . . . . . . . . . . . . . . . . . 45
41. Rules And Regulations . . . . . . . . . . . . . . . . . . . . . . . 45
42. Mortgagee Protection. . . . . . . . . . . . . . . . . . . . . . . . 45
43. Entire Agreement. . . . . . . . . . . . . . . . . . . . . . . . . . 46
44. Interest. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 46
45. Construction. . . . . . . . . . . . . . . . . . . . . . . . . . . . 46
46. Representations And Warranties Of Tenant. . . . . . . . . . . . . . 46
47. Security. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 47
48. Jury Trial Waiver . . . . . . . . . . . . . . . . . . . . . . . . . 47
49. Option to Renew . . . . . . . . . . . . . . . . . . . . . . . . . . 48
50. Right of First Offer. . . . . . . . . . . . . . . . . . . . . . . . 48
ii
EXHIBIT
A Diagram of the Premises
B Tenant Improvements
B-1 Preliminary Space Plans
B-2 Final Plans and Specifications for Tenant Improvements
C Commencement and Expiration Date Memorandum
D Rules and Regulations
E Sign Criteria
F Hazardous Materials Disclosure Certificate
iii
LEASE AGREEMENT
BASIC LEASE INFORMATION
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LEASE DATE: July 30, 1999
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LANDLORD: AETNA LIFE INSURANCE COMPANY,
a Connecticut corporation
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LANDLORD'S ADDRESS: c/o Allegis Realty Investors LLC
▇▇▇ ▇▇▇▇▇▇ ▇▇▇▇▇▇, ▇▇▇▇▇ ▇▇▇▇
▇▇▇ ▇▇▇▇▇▇▇▇▇, ▇▇▇▇▇▇▇▇▇▇ ▇▇▇▇▇
Attention: Asset Manager
▇▇▇▇▇ Technology Center
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ALL NOTICES SENT TO LANDLORD UNDER THIS LEASE SHALL
BE SENT TO THE ABOVE ADDRESS, WITH COPIES TO:
Insignia/ESG, Inc.
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▇▇▇ ▇▇▇▇, ▇▇▇▇▇▇▇▇▇▇ ▇▇▇▇▇
Attention: Property Manager
Kifer Technology Center
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TENANT: AFFYMETRIX, INC.,
a Delaware corporation
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TENANT'S CONTACT PERSON: ▇▇. ▇▇▇▇ ▇▇▇▇▇▇
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TENANT'S ADDRESS AND 3380 Central Expressway
TELEPHONE NUMBER: ▇▇▇▇▇ ▇▇▇▇▇, ▇▇▇▇▇▇▇▇▇▇ ▇▇▇▇▇
(▇▇▇) ▇▇▇-▇▇▇▇
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PREMISES SQUARE Approximately Fifty Seven Thousand Six Hundred Forty-
FOOTAGE: Nine (57,649) rentable square feet
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PREMISES ADDRESS: ▇▇▇▇ ▇▇▇▇▇ ▇▇▇▇
▇▇▇▇▇▇▇▇▇, ▇▇▇▇▇▇▇▇▇▇
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PROJECT: ▇▇▇▇▇ Technology Center, 1150-1170 ▇▇▇▇▇ Road,
Sunnyvale, California, together with the land on
which the Project is situated and all Common Areas
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BUILDING (IF NOT THE ▇▇▇▇ ▇▇▇▇▇ ▇▇▇▇
SAME AS THE PROJECT): Sunnyvale, California
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iv
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TENANT'S PROPORTIONATE
SHARE OF PROJECT: 56.4%
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TENANT'S PROPORTIONATE
SHARE OF BUILDING: 100%
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LENGTH OF TERM: Sixty (60) months
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ESTIMATED COMMENCEMENT
DATE: October 1, 1999
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ESTIMATED EXPIRATION
DATE: Secptember 30, 2004
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MONTHLY BASE RENT: MONTHLY BASE MONTHLY BASE
MONTHS SQ. FT. RATE RENT
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1-12 57,649 x $1.85 = $106,650.65
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13-24 57,649 x $1.92 = $110,686.08
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25-36 57,649 x $2.00 = $115,298.00
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37-48 57,649 x $2.08 = $119,909.92
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49-60 57,649 x $2.16 = $124,521.84
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PREPAID BASE RENT: One Hundred Six Thousand Six Hundred Fifty and 65/100
Dollars ($106,650.65)
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PREPAID ADDITIONAL Sixteen Thousand Seven Hundred Seventeen Dollars
RENT: ($16,717.00)
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MONTH TO WHICH PREPAID
BASE RENT AND
ADDITIONAL RENT WILL
BE APPLIED: First (1st) month of the Term
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SECURITY DEPOSIT: Four Hundred Ninety Eight Thousand Eighty-Seven and
36/100 Dollars ($498,087.36)
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PERMITTED USE: General office, engineering and research and
development for probe array systems.
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UNRESERVED PARKING Two Hundred Thirty-One (231) nonexclusive and
SPACES: undesignated parking spaces
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BROKER: CPS
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TENANT IMPROVEMENTS Five Hundred Seventy Six Thousand Four Hundred Ninety
ALLOWANCE: Dollars ($576,490.00)
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vi
LEASE AGREEMENT
THIS LEASE AGREEMENT is made and entered into by and between Landlord and
Tenant on the Lease Date. The defined terms used in this Lease which are
defined in the Basic Lease Information attached to this Lease Agreement ("BASIC
LEASE INFORMATION") shall have the meaning and definition given them in the
Basic Lease Information. The Basic Lease Information, the exhibits, the
addendum or addenda described in the Basic Lease Information, and this Lease
Agreement are and shall be construed as a single instrument and are referred to
herein as the "LEASE".
1. DEMISE
In consideration for the rents and all other charges and payments payable
by Tenant, and for the agreements, terms and conditions to be performed by
Tenant in this Lease, LANDLORD DOES HEREBY LEASE TO TENANT, AND TENANT DOES
HEREBY HIRE AND TAKE FROM LANDLORD, the Premises described below (the
"PREMISES"), upon the agreements, terms and conditions of this Lease for the
Term hereinafter stated.
2. PREMISES
The Premises demised by this Lease is located in that certain building
(the "BUILDING") specified in the Basic Lease Information, which Building is
located in that certain real estate development (the "PROJECT") specified in
the Basic Lease Information. The Premises has the address and contains the
square footage specified in the Basic Lease Information. The location and
dimensions of the Premises are depicted on EXHIBIT A, which is attached
hereto and incorporated herein by this reference; provided, however, that any
statement of square footage set forth in this Lease, or that may have been
used in calculating any of the economic terms hereof, is an approximation
which Landlord and Tenant agree is reasonable and, except as expressly set
forth in Paragraph 4(c)(3) below, no economic terms based thereon shall be
subject to revision whether or not the actual square footage is more or less.
Tenant shall have the non-exclusive right (in common with the other tenants,
Landlord and any other person granted use by Landlord) to use the Common
Areas (as hereinafter defined), except that, with respect to parking, Tenant
shall have only a license to use the number of non-exclusive and undesignated
parking spaces set forth in the Basic Lease Information in the Project's
parking areas (the "PARKING AREAS"); provided, however, that Landlord shall
not be required to enforce Tenant's right to use such parking spaces; and,
provided further, that the number of parking spaces allocated to Tenant
hereunder shall be reduced on a proportionate basis in the event any of the
parking spaces in the Parking Areas are taken or otherwise eliminated as a
result of any Condemnation (as hereinafter defined) or casualty event
affecting such Parking Areas. Subject to the terms of this Lease, during the
Term and the Renewal Term (as hereinafter defined), Landlord shall not
terminate Tenant's license to use the Parking Areas or Tenant's right to use
1
the Common Areas unless this Lease is terminated in accordance with its
terms. No easement for light or air is incorporated in the Premises. For
purposes of this Lease, the term "COMMON AREAS" shall mean all areas and
facilities outside the Premises and within the exterior boundary line of the
Project that are provided and designated by Landlord for the non-exclusive
use of Landlord, Tenant and other tenants of the Project and their respective
employees, guests and invitees.
The Premises demised by this Lease shall include the Tenant Improvements
(as that term is defined in the tenant improvement work agreement attached
hereto as EXHIBIT B) to be constructed by Landlord within the interior of the
Premises. Landlord shall construct the Tenant Improvements on the terms and
conditions set forth in EXHIBIT B. Landlord and Tenant agree to and shall be
bound by the terms and conditions of EXHIBIT B.
Landlord has the right, in its sole discretion, from time to time, to:
(a) make changes to the Common Areas, including, without limitation, changes in
the location, size, shape and number of driveways, entrances, parking spaces
(but changes in the number of parking spaces shall not reduce the number of
spaces allocated to Tenant except as a result of any Condemnation or casualty
event), Parking Areas, ingress, egress, direction of driveways, entrances,
corridors and walkways; (b) close temporarily any of the Common Areas for
maintenance purposes so long as reasonable access to the Premises remains
available; (c) add additional buildings and improvements to the Common Areas or
remove existing buildings or improvements therefrom; (d) use the Common Areas
while engaged in making additional improvements, repairs or alterations to the
Project or any portion thereof; and (e) do and perform any other acts or make
any other changes in, to or with respect to the Common Areas and the Project as
Landlord may, in its sole discretion, deem to be appropriate.
3. TERM
The term of this Lease (the "TERM") shall be for the period of months
specified in the Basic Lease Information, commencing on the earliest to occur of
the following dates (the "COMMENCEMENT DATE"):
(a) The date the Tenant Improvements are approved by the appropriate
governmental agency as being in accordance with its building code and the
building permit issued for such improvements, as evidenced by the issuance of a
final building inspection approval; or
(b) The date the Architect and Contractor (as such terms are defined in
EXHIBIT B hereto) have both certified in writing to Tenant that the Tenant
Improvements have been substantially completed in accordance with the plans and
specifications therefor; or
2
(c) The date Tenant commences occupancy of the Premises; provided,
however, that Tenant shall not be deemed to have commenced occupancy of the
Premises for purposes of this Paragraph 3(c) if Tenant enters upon the Premises
prior to the Commencement Date solely for the purpose of installing Tenant's
Property in accordance with Paragraph 8(b) below.
In the event the actual Commencement Date, as determined pursuant to the
foregoing, is a date other than the Estimated Commencement Date specified in the
Basic Lease Information, then Landlord and Tenant shall promptly execute a
Commencement and Expiration Date Memorandum in the form attached hereto as
EXHIBIT C, wherein the parties shall specify the Commencement Date, the date on
which the Term expires (the "EXPIRATION DATE") and the date on which Tenant is
to commence paying Rent. If Tenant exercises the Renewal Option (as hereinafter
defined) and extends the Term for the Renewal Term, then the word "Term" as used
herein shall include the Renewal Term.
As soon as reasonably possible after the date on which the Tenant
Improvements are substantially complete, Landlord, Tenant and the Contractor
shall meet at the Premises at a mutually convenient time and jointly prepare a
list of minor, corrective work (so-called "PUNCH LIST ITEMS") to be completed.
As soon as possible, but in no event later than forty-five (45) days after the
list of Punch List Items is prepared, Landlord shall cause the Contractor to
complete the same.
4. RENT
(a) BASE RENT. Commencing on the Rent Commencement Date (as hereinafter
defined), Tenant shall pay to Landlord, in advance on the first day of each
month, without further notice or demand and without offset, rebate, credit or
deduction for any reason whatsoever (except as otherwise set forth herein), the
monthly installments of rent specified in the Basic Lease Information (the "BASE
RENT"). As used herein, "RENT COMMENCEMENT DATE" means the earlier of (i) the
Commencement Date, or (ii) October 1, 1999. Tenant acknowledges and agrees that
Rent shall be payable hereunder commencing on the Rent Commencement Date,
irrespective of whether or not the Tenant Improvements have been completed and
the Term has commenced by such date.
Upon execution of this Lease, Tenant shall pay to Landlord the Prepaid Rent
and first monthly installment of estimated Additional Rent (as hereinafter
defined) specified in the Basic Lease Information to be applied toward Base Rent
and Additional Rent for the month of the Term specified in the Basic Lease
Information.
(b) ADDITIONAL RENT. This Lease is intended to be a triple-net Lease with
respect to Landlord; and subject to Paragraph 13(b) below, the Base Rent owing
hereunder is (1) to be paid by Tenant absolutely net of all costs and expenses
relating to Landlord's ownership and operation of the Project and the Building,
and (2) not to be reduced, offset or diminished (except as otherwise set forth
herein),
3
directly or indirectly, by any cost, charge or expense payable hereunder by
Tenant or by others in connection with the Premises, the Building and/or the
Project or any part thereof. The provisions of this Paragraph 4(b) for the
payment of Tenant's Proportionate Share(s) of Expenses (as hereinafter
defined) are intended to pass on to Tenant its share of all such Expenses.
In addition to the Base Rent, commencing on the Rent Commencement Date,
Tenant shall pay to Landlord, in accordance with this Paragraph 4, Tenant's
Proportionate Share(s) of all costs and expenses paid or incurred by Landlord
in connection with the ownership, operation, maintenance, management and
repair of the Premises, the Building and/or the Project or any part thereof
(collectively, the "EXPENSES"), including, without limitation, all the
following items (the "ADDITIONAL RENT"):
(1) TAXES AND ASSESSMENTS. All real estate taxes and assessments,
which shall include any form of tax, assessment, fee, license fee, business
license fee, levy, penalty (if a result of Tenant's delinquency), or tax (other
than net income, estate, succession, inheritance, transfer or franchise taxes),
imposed by any authority having the direct or indirect power to tax, or by any
city, county, state or federal government or any improvement or other district
or division thereof, whether such tax is (i) determined by the area of the
Premises, the Building and/or the Project or any part thereof, or the Rent and
other sums payable hereunder by Tenant or by other tenants, including, but not
limited to, any gross income or excise tax levied by any of the foregoing
authorities with respect to receipt of Rent and/or other sums due under this
Lease; (ii) upon any legal or equitable interest of Landlord in the Premises,
the Building and/or the Project or any part thereof; (iii) upon this transaction
or any document to which Tenant is a party creating or transferring any interest
in the Premises, the Building and/or the Project; (iv) levied or assessed in
lieu of, in substitution for, or in addition to, existing or additional taxes
against the Premises, the Building and/or the Project, whether or not now
customary or within the contemplation of the parties; or (v) surcharged against
the parking area. Tenant and Landlord acknowledge that Proposition 13 was
adopted by the voters of the State of California in the June, 1978 election and
that assessments, taxes, fees, levies and charges may be imposed by governmental
agencies for such purposes as fire protection, street, sidewalk, road, utility
construction and maintenance, refuse removal and for other governmental services
which may formerly have been provided without charge to property owners or
occupants. It is the intention of the parties that all new and increased
assessments, taxes, fees, levies and charges due to any cause whatsoever are to
be included within the definition of real property taxes for purposes of this
Lease. "TAXES AND ASSESSMENTS" shall also include legal and consultants' fees,
costs and disbursements incurred in connection with proceedings to contest,
determine or reduce taxes, Landlord specifically reserving the right, but not
the obligation, to contest by appropriate legal proceedings the amount or
validity of any taxes. In the event Landlord shall hereafter sell or otherwise
convey the Building to a transferee who is not a Landlord Affiliate (as
hereinafter defined), and if such transferee shall at any time elect in writing
not to contest the real estate taxes assessed against the Building for any
fiscal year, then Tenant shall have the right at its sole cost and expense to
contest such taxes by appropriate proceedings
4
properly conducted, provided that Landlord shall have the right to approve,
in its reasonable discretion, the consultants selected by Tenant to prosecute
such contest and, provided further, that as a condition precedent to such
contest by Tenant, Tenant shall first reasonably demonstrate to Landlord that
it is likely that such contest will result in a reduction of the real estate
taxes payable with respect to such year. As used herein, "LANDLORD
AFFILIATE" means (i) any party which controls, is controlled by or is under
common control with, Aetna Life Insurance Company or Allegis Realty Investors
LLC ("ALLEGIS"), (ii) any party for whom Allegis acts as investment advisor
or subadvisor (a "Separate Account"), or (iii) any legal entity formed by or
on behalf of Allegis or a Separate Account for the purpose of holding title
to real property or owned or controlled, directly or indirectly, by Allegis
or a Separate Account.
(2) INSURANCE. All insurance premiums for the Building and/or the
Project or any part thereof, including premiums for "all risk" fire and extended
coverage insurance, commercial general liability insurance, rent loss or
abatement insurance, earthquake insurance, flood or surface water coverage, and
other insurance as Landlord deems necessary in its sole discretion, and any
deductibles paid under policies of any such insurance; provided, however, that
if Landlord shall hereafter sell or otherwise convey the Building to a
transferee who is not a Landlord Affiliate, then the premiums for earthquake
insurance shall not exceed the premiums generally paid from time to time by
similarly-situated owners ("COMPARABLE LANDLORDS") of properties similar to and
in the vicinity of the Building ("COMPARABLE PROPERTIES"), and the deductibles
under the policies of earthquake insurance shall not exceed the deductibles
generally accepted from time to time by Comparable Landlords of Comparable
Properties.
(3) UTILITIES. The cost of all Utilities (as hereinafter defined)
serving the Premises, the Building and the Project that are not separately
metered to Tenant, any assessments or charges for Utilities or similar purposes
included within any tax ▇▇▇▇ for the Building or the Project, including without
limitation, entitlement fees, allocation unit fees, and/or any similar fees or
charges and any penalties (if a result of Tenant's delinquency) related thereto,
and any amounts, taxes, charges, surcharges, assessments or impositions levied,
assessed or imposed upon the Premises, the Building or the Project or any part
thereof, or upon Tenant's use and occupancy thereof, as a result of any
rationing of Utility services or restriction on Utility use affecting the
Premises, the Building and/or the Project, as contemplated in Paragraph 5 below
(collectively, "UTILITY EXPENSES").
(4) COMMON AREA EXPENSES. All costs to operate, maintain, repair,
replace, supervise, insure and administer the Common Areas, including supplies,
materials, labor and equipment used in or related to the operation and
maintenance of the Common Areas, including parking areas (including, without
limitation, all costs of resurfacing and restriping parking areas), signs and
directories on the Building and/or the Project, landscaping (including
maintenance contracts and fees payable to landscaping consultants), amenities,
sprinkler systems, sidewalks,
5
walkways, driveways, curbs, lighting systems and security services, if any,
provided by Landlord for the Common Areas, and any charges, assessments,
costs or fees levied by any association or entity of which the Project or any
part thereof is a member or to which the Project or any part thereof is
subject.
(5) PARKING CHARGES. Any parking charges or other costs levied,
assessed or imposed by, or at the direction of, or resulting from statutes or
regulations, or interpretations thereof, promulgated by any governmental
authority or insurer in connection with the use or occupancy of the Building or
the Project.
(6) MAINTENANCE AND REPAIR COSTS. Except for costs which are the
responsibility of Landlord pursuant to Paragraph 13(b) below, all costs to
maintain, repair, and replace the Premises, the Building and/or the Project or
any part thereof, including without limitation, (i) all costs paid under
maintenance, management and service agreements such as contracts for janitorial,
security and refuse removal, (ii) all costs to maintain, repair and replace the
roof coverings of the Building or the Project or any part thereof, (iii) all
costs to maintain, repair and replace the heating, ventilating, air
conditioning, plumbing, sewer, drainage, electrical, fire protection, life
safety and security systems and other mechanical and electrical systems and
equipment serving the Premises, the Building and/or the Project or any part
thereof (collectively, the "SYSTEMS").
(7) LIFE SAFETY COSTS. All costs to install, maintain, repair and
replace all life safety systems, including, without limitation, all fire alarm
systems, serving the Premises, the Building and/or the Project or any part
thereof (including all maintenance contracts and fees payable to life safety
consultants) whether such systems are or shall be required by Landlord's
insurance carriers, Laws (as hereinafter defined) or otherwise.
(8) MANAGEMENT AND ADMINISTRATION. All costs for management and
administration of the Premises, the Building and/or the Project or any part
thereof, including, without limitation, a property management fee, accounting,
auditing, billing, postage, salaries and benefits for clerical and supervisory
employees, whether located on the Project or off-site, payroll taxes and legal
and accounting costs and fees for licenses and permits related to the ownership
and operation of the Project.
Notwithstanding anything in this Paragraph 4(b) to the contrary, with
respect to all sums payable by Tenant as Additional Rent under this
Paragraph 4(b) for the replacement of any item or the construction of any new
item in connection with the physical operation of the Premises, the Building or
the Project (i.e., HVAC, roof membrane or coverings and parking area) which is a
capital item the replacement of which would be capitalized under generally
accepted accounting principles, consistently applied ("GAAP"), Tenant shall be
required to pay only the prorata share of the cost of the item falling due
within the Term (including any Renewal Term) based upon the amortization of the
same (including only such
6
interest as is actually paid by Landlord) over the useful life of such item
as determined in accordance with GAAP.
(c) EXCLUSIONS FROM EXPENSES. Notwithstanding anything to the contrary
contained in Paragraph 4(b) above, "EXPENSES" shall specifically exclude the
following items:
(1) DEPRECIATION. Depreciation, amortization or other non-cash
items.
(2) DEBT SERVICE. Interest on debt or amortization payments on any
mortgage or mortgages secured by the Building or the Project.
(3) GROUND LEASE. Rental under any ground lease affecting the
Project.
(4) LEASE NEGOTIATIONS; DISPUTES WITH TENANTS. Attorneys' fees and
expenses incurred in connection with lease negotiations or disputes with other
tenants of the Project.
(5) LEASING COSTS. The cost of decorating, improving for tenant
occupancy, painting or redecorating portions of the Project for other tenants.
(6) COMMISSIONS. Real estate brokers' fees and leasing commissions.
(7) TENANT SPECIFIC COSTS. The cost of any work or services
performed for any other tenant of the Project, but solely to the extent that
Landlord recovers the costs thereof from such tenant and that Tenant receives no
benefits from the services provided to such tenant.
(8) EMPLOYEE LIMITATION. The salaries and wages of any employees
above the rank of property manager.
(9) INTEREST AND PENALTIES. All interest or penalties incurred as a
result of Landlord's failure to pay any costs or taxes as the same shall become
due, except to the extent such late payment results from Tenant's default or
breach hereunder.
(10) EXPENSES RELATED TO OTHER PROJECTS. Any expenses which are not
paid or incurred in respect of the Project but rather in respect of other real
property owned by Landlord, it being agreed that with respect to any expenses
attributable in part to the Project and in part to other real property owned by
Landlord, Expenses shall include only such portion thereof as are apportioned by
Landlord to the Project on a fair and equitable basis.
(11) ACCOUNTING FEES. Accounting fees incurred in connection with the
preparation of income tax returns for Landlord.
7
(12) OPERATION OF LANDLORD'S BUSINESS. All costs associated with the
operation of the business of the entity which constitutes Landlord (as opposed
to costs incurred in connection with the operations of the Project).
(d) PAYMENT OF ADDITIONAL RENT.
(1) Upon commencement of this Lease, Landlord shall submit to Tenant
an estimate of monthly Additional Rent for the period between the Commencement
Date and the following December 31 and Tenant shall pay such estimated
Additional Rent on a monthly basis, in advance, on the first day of each month.
Tenant shall continue to make said monthly payments until notified by Landlord
of a change therein. If at any time or times Landlord reasonably determines
that the amounts payable under Paragraph 4(b) for the current year will vary
from Landlord's estimate given to Tenant, Landlord, by notice to Tenant, may
revise the estimate for such year, and subsequent payments by Tenant for such
year shall be based upon such revised estimate. By April 1 of each calendar
year, Landlord shall endeavor to provide to Tenant a statement ("EXPENSE
STATEMENT") showing the actual Additional Rent due to Landlord for the prior
calendar year, to be prorated during the first year from the Commencement Date
and during the last year to the Expiration Date. If the total of the monthly
payments of Additional Rent that Tenant has made for the prior calendar year is
less than the actual Additional Rent chargeable to Tenant for such prior
calendar year, then Tenant shall pay the difference in a lump sum within thirty
(30) days after receipt of such Expense Statement from Landlord. Any
overpayment by Tenant of Additional Rent for the prior calendar year shall be
credited towards the Additional Rent next due or, with respect to the last year
of the Term, paid to Tenant concurrently with the delivery of Landlord's Expense
Statement.
(2) Landlord's then-current annual operating and capital budgets for
the Building and the Project or the pertinent part thereof shall be used for
purposes of calculating Tenant's monthly payment of estimated Additional Rent
for the current year, subject to adjustment as provided above. Landlord shall
make the final determination of Additional Rent for the year in which this Lease
terminates as soon as possible after termination of such year. Even though the
Term has expired and Tenant has vacated the Premises, Tenant shall remain liable
for payment of any amount due to Landlord in excess of the estimated Additional
Rent previously paid by Tenant, and, conversely, Landlord shall return to Tenant
any overpayment as provided above. Failure of Landlord to submit Expense
Statements as called for herein shall not be deemed a waiver of Tenant's
obligation to pay Additional Rent as herein provided.
(3) With respect to Expenses which Landlord in good faith allocates
to the Building, Tenant's "PROPORTIONATE SHARE" shall be the percentage set
forth in the Basic Lease Information as Tenant's Proportionate Share of the
Building, as adjusted by Landlord from time to time for a remeasurement of or
changes in the physical size of the Premises or the Building, whether such
changes in size are due
8
to an addition to or a sale or conveyance of a portion of the Building or
otherwise. With respect to Expenses which Landlord allocates to the Project
as a whole or to only a portion of the Project, Tenant's "PROPORTIONATE
SHARE" shall be, with respect to Expenses which Landlord in good faith
allocates to the Project as a whole, the percentage set forth in the Basic
Lease Information as Tenant's Proportionate Share of the Project and, with
respect to Expenses which Landlord allocates to only a portion of the
Project, a percentage calculated by Landlord from time to time in its good
faith discretion and furnished to Tenant in writing, in either case as
adjusted by Landlord from time to time for a remeasurement of or changes in
the physical size of the Premises or the Project, whether such changes in
size are due to an addition to or a sale or conveyance of a portion of the
Project or otherwise. Notwithstanding the foregoing, Landlord may equitably
adjust Tenant's Proportionate Share(s) for all or part of any item of expense
or cost reimbursable by Tenant that relates to a repair, replacement, or
service that benefits only the Premises or only a portion of the Building
and/or the Project or that varies with the occupancy of the Building and/or
the Project. Without limiting the generality of the foregoing, Tenant
understands and agrees that Landlord shall have the right to adjust Tenant's
Proportionate Share(s) of any Utility Expenses (excluding all Utilities that
are separately metered) based upon Tenant's use of the Utilities as
reasonably estimated and determined by Landlord based upon factors such as
size of the Premises and intensity of use of such Utilities by Tenant such
that Tenant shall pay the portion of such charges reasonably consistent with
Tenant's use of such Utilities. If Tenant disputes any such estimate or
determination of Utility Expenses, then Tenant shall either pay the estimated
amount or cause the Premises to be separately metered at Tenant's sole
expense.
(e) GENERAL PAYMENT TERMS. The Base Rent, Additional Rent and all other
sums payable by Tenant to Landlord hereunder, including, without limitation, any
late charges assessed pursuant to Paragraph 6 below and any interest assessed
pursuant to Paragraph 44 below, are referred to as the "RENT". All Rent shall
be paid without deduction, offset or abatement (except as otherwise provided
herein) in lawful money of the United States of America. Checks are to be made
payable to Aetna Life Insurance Company and shall be mailed to: Aetna Life
Insurance Company, ▇▇▇▇▇ Technology Center, 7945B-100-Z, ▇.▇. ▇▇▇ ▇▇▇▇▇,
▇▇▇ ▇▇▇▇▇▇▇▇▇, ▇▇▇▇▇▇▇▇▇▇ ▇▇▇▇▇-▇▇▇▇, or to such other person or place as
Landlord may, from time to time, designate to Tenant in writing. The Rent for
any fractional part of a calendar month at the commencement or termination of
the Lease term shall be a prorated amount of the Rent for a full calendar month
based upon a thirty (30) day month. The Additional Rent for any fractional part
of a calendar year at the commencement or termination of the Term shall be a
prorated amount of the Additional Rent for the applicable full calendar year
based upon the actual number of days falling within the Term and a year of three
hundred sixty-five (365) days.
(f) AUDIT RIGHTS. Provided that Tenant is not in Default under the terms
of this Lease (nor is any event then occurring and continuing which with the
giving of notice or the passage of time, or both, would constitute a Default
hereunder), Tenant
9
shall have the right at its sole expense within ninety (90) days after the
delivery of the applicable Expense Statement to review and audit Landlord's
books and records regarding such Expense Statement for the sole purpose of
determining the accuracy of such Expense Statement. Such review or audit
shall be performed by a nationally recognized accounting firm that calculates
its fees with respect to hours actually worked and that does not discount its
time or rate (as opposed to a calculation based upon percentage of recoveries
or other incentive arrangement), shall take place during normal business
hours in the office of Landlord or Landlord's property manager and shall be
completed within ten (10) business days after the commencement thereof. If
Tenant does not so review or audit Landlord's books and records, Landlord's
Expense Statement shall be final and binding upon Tenant. In the event that
Tenant determines on the basis of its review of Landlord's books and records
that the amount of Expenses paid by Tenant pursuant to this Paragraph 4 for
the period covered by such Expense Statement is less than or greater than the
actual amount properly payable by Tenant under the terms of this Lease,
Tenant shall promptly pay any deficiency to Landlord or, if Landlord concurs
with the results of such audit, Landlord shall promptly refund any excess
payment to Tenant, as the case may be.
5. UTILITY EXPENSES
(a) Tenant shall pay the cost of all water, sewer use, sewer discharge
fees and permit costs and sewer connection fees, gas, heat, electricity, refuse
pick-up, janitorial service, telephone and all other utilities (collectively,
"UTILITIES") billed or metered separately to the Premises and/or Tenant,
together with all taxes, assessments, charges and penalties added to or included
within such cost. Tenant acknowledges that the Premises, the Building and/or
the Project may become subject to the rationing of Utility services or
restrictions on Utility use as required by a public utility company,
governmental agency or other similar entity having jurisdiction thereof. Tenant
acknowledges and agrees that its tenancy and occupancy hereunder shall be
subject to such rationing or restrictions as may be imposed upon Landlord,
Tenant, the Premises, the Building and/or the Project by any such utility
company or governmental agency, and Tenant shall in no event be excused or
relieved from any covenant or obligation to be kept or performed by Tenant by
reason of any such rationing or restrictions. Tenant agrees to comply with
energy conservation programs implemented by Landlord by reason of such
rationing, restrictions or Laws.
(b) Landlord shall not be liable for any loss, injury or damage to
property caused by or resulting from any variation, interruption, or failure of
Utilities due to any cause whatsoever, or from failure to make any repairs or
perform any maintenance other than as required under Paragraph 13(b) below. No
temporary interruption or failure of such services incident to the making of
repairs, alterations, improvements, or due to accident, strike, or conditions or
other events shall be deemed an eviction of Tenant or relieve Tenant from any of
its obligations hereunder. In no event shall Landlord be liable to Tenant for
any damage to the
10
Premises or for any loss, damage or injury to any property therein or thereon
occasioned by bursting, rupture, leakage or overflow of any plumbing or other
pipes (including, without limitation, water, steam, and/or refrigerant
lines), sprinklers, tanks, drains, drinking fountains or washstands, or other
similar cause in, above, upon or about the Premises, the Building, or the
Project.
6. LATE CHARGE
Notwithstanding any other provision of this Lease, Tenant hereby
acknowledges that late payment to Landlord of Rent, or other amounts due
hereunder will cause Landlord to incur costs not contemplated by this Lease, the
exact amount of which will be extremely difficult to ascertain. If any Rent or
other sums due from Tenant are not received by Landlord or by Landlord's
designated agent within three (3) days after their due date, then Tenant shall
pay to Landlord a late charge equal to seven percent (7%) of such overdue
amount, plus any costs and attorneys' fees incurred by Landlord by reason of
Tenant's failure to pay Rent and/or other charges when due hereunder. Landlord
and Tenant hereby agree that such late charges represent a fair and reasonable
estimate of the cost that Landlord will incur by reason of Tenant's late payment
and shall not be construed as a penalty. Landlord's acceptance of such late
charges shall not constitute a waiver of Tenant's default with respect to such
overdue amount or estop Landlord from exercising any of the other rights and
remedies granted under this Lease.
INITIALS: LANDLORD CPS TENANT [Illegible]
--------- --------------
Approved for signature
by AFFX Legal Dept. rev
7/30/99
7. SECURITY DEPOSIT
(a) Concurrently with Tenant's execution of the Lease, Tenant shall
deposit with Landlord the Security Deposit specified in the Basic Lease
Information as security for the full and faithful performance of each and every
term, covenant and condition of this Lease. Landlord may use, apply or retain
the whole or any part of the Security Deposit as may be reasonably necessary
(a) to remedy Tenant's default in the payment of any Rent, (b) to repair damage
to the Premises caused by Tenant, (c) to clean the Premises upon termination of
this Lease if Tenant fails to surrender the Premises in the condition required
by Paragraphs 11 and 32(h) below, (d) to reimburse Landlord for the payment of
any amount which Landlord may reasonably spend or be required to spend by reason
of Tenant's default, or (e) to compensate Landlord for any other loss or damage
which Landlord suffers by reason of Tenant's default. Subject to Paragraph 7(b)
below, should Tenant faithfully and fully comply with all of the terms,
covenants and conditions of this Lease, within thirty (30) days following the
expiration of the Term, the Security Deposit or any balance thereof shall be
returned to Tenant or, at the option of Landlord, to the last assignee of
Tenant's interest in this Lease. Except as provided in Paragraph 7(b) below,
Landlord shall not be required to keep the Security Deposit separate from its
general funds and Tenant shall not be entitled to any interest on such deposit.
If Landlord so uses or applies all or any portion of said deposit, within ten
(10) days after
11
written demand therefor Tenant shall deposit cash with Landlord in an amount
sufficient to restore the Security Deposit to the full extent of the above
amount, and Tenant's failure to do so shall be a default under this Lease.
In the event Landlord transfers its interest in this Lease, Landlord shall
transfer the then remaining amount of the Security Deposit to Landlord's
successor in interest, and thereafter Landlord shall have no further
liability to Tenant with respect to such Security Deposit.
(b) Notwithstanding the terms of Paragraph 7(a) above, Landlord shall
retain Three Hundred Seventy Three Thousand Five Hundred Sixty-Five and 52/100
Dollars ($373,565.52) of the Security Deposit (together with interest accrued
thereon as hereafter provided, the "LIMITED DEPOSIT") in an interest-bearing
account at a bank or financial institution selected by Landlord (or, in lieu of
retaining the Limited Deposit in such an account, shall pay interest to Tenant
on the Limited Deposit at a per annum rate equal to the rate paid by Bank of
America (the "BANK") from time to time in San Francisco, California, on its
"interest maximizer accounts" with a balance equal to the Limited Deposit (or,
if the Bank shall hereafter discontinue its "interest maximizer accounts," then
such replacement money-market account as shall be established by the Bank)).
Provided that Tenant is not then and has not previously been in default in the
performance of its obligations under this Lease, Landlord shall return the
Limited Deposit to Tenant at such time as Tenant demonstrates to Landlord's
satisfaction that Tenant has exhibited net profits (determined in accordance
with generally accepted accounting principles consistently applied) for the
prior calendar quarter.
8. POSSESSION
(a) TENANT'S RIGHT OF POSSESSION. Subject to Paragraph 8(b), Tenant shall
be entitled to possession of the Premises upon commencement of the Term.
(b) EARLY OCCUPANCY. Notwithstanding anything to the contrary contained
herein, Tenant shall have the right to enter upon the Premises at times
acceptable to Landlord during the thirty (30) day period prior to the
Commencement Date for the sole purpose of installing Tenant's Property, provided
that Tenant shall not interfere with the construction and installation of the
Tenant Improvements nor conduct its business in the Premises during such period,
and provided further, that such entry shall be subject to all of the terms and
conditions of this Lease, excluding only the obligation to pay Rent.
(c) DELAY IN DELIVERING POSSESSION. If for any reason whatsoever,
Landlord cannot deliver possession of the Premises to Tenant on or before the
Estimated Commencement Date, then this Lease shall not be void or voidable, nor
shall Landlord, or Landlord's agents, advisors, employees, partners,
shareholders, directors, invitees or independent contractors (collectively,
"LANDLORD'S AGENTS"), be liable to Tenant for any loss or damage resulting
therefrom.
12
9. USE OF PREMISES
(a) PERMITTED USE. The use of the Premises by Tenant and Tenant's
agents, advisors, employees, partners, shareholders, directors, invitees and
independent contractors (collectively, "TENANT'S AGENTS") shall be solely for
the Permitted Use specified in the Basic Lease Information and for no other
use. Tenant shall not permit any objectionable or unpleasant odor, smoke,
dust, gas, noise or vibration to emanate from or near the Premises. The
Premises shall not be used to create any nuisance or trespass, for any
illegal purpose, for any purpose not permitted by Laws, for any purpose that
would invalidate the insurance or increase the premiums for insurance on the
Premises, the Building or the Project (unless Landlord specifically consents
to such use in writing and then only to the extent that Tenant reimburses
Landlord upon demand of the full amount of such increased premiums) or for
any purpose or in any manner that would unreasonably interfere with other
tenants' use or occupancy of the Project. If any of Tenant's office machines
or equipment unreasonably disturb any other tenant in the Building, then
Tenant shall provide adequate insulation or take such other action as may be
necessary to eliminate the noise or disturbance. Tenant agrees to pay to
Landlord, as Additional Rent, any increases in premiums on policies resulting
from Tenant's Permitted Use or any other use or action by Tenant or Tenant's
Agents which increases Landlord's premiums or requires additional coverage by
Landlord to insure the Premises. Tenant agrees not to overload the floor(s)
of the Building.
(b) COMPLIANCE WITH GOVERNMENTAL REGULATIONS AND PRIVATE RESTRICTIONS.
Tenant and Tenant's Agents shall, at Tenant's expense, faithfully observe and
comply with (1) all municipal, state and federal laws, statutes, codes,
rules, regulations, ordinances, requirements, and orders (collectively,
"LAWS"), now in force or which may hereafter be in force pertaining to the
Premises or Tenant's use of the Premises, the Building or the Project,
including without limitation, any Laws requiring installation of fire
sprinkler systems, seismic reinforcement and related alterations, whether
substantial in cost or otherwise, provided, however, that except as provided
in Paragraph 9(c) below, Tenant shall not be required to make or, except as
provided in Paragraph 4 above, pay for, structural changes to the Premises or
the Building not related to Tenant's specific use of the Premises unless the
requirement for such changes is imposed as a result of any improvements or
additions made or proposed to be made at Tenant's request; (2) all recorded
covenants, conditions and restrictions affecting the Project ("PRIVATE
RESTRICTIONS") now in force or which may hereafter be in force; and (3) any
and all rules and regulations set forth in EXHIBIT D and any other rules and
regulations now or hereafter promulgated by Landlord for the proper
management or operation of the Premises, the Building and/or the Project
(collectively, the "RULES AND REGULATIONS"). The judgment of any court of
competent jurisdiction, or the admission of Tenant in any action or
proceeding against Tenant, whether Landlord be a party thereto or not, that
Tenant has violated any such Laws or Private Restrictions, shall be
conclusive of that fact as between Landlord and Tenant.
13
(c) COMPLIANCE WITH AMERICANS WITH DISABILITIES ACT. Landlord and
Tenant hereby agree and acknowledge that the Premises, the Building and/or
the Project may be subject to, among other Laws, the requirements of the
Americans with Disabilities Act, a federal law codified at 42 U.S.C. 12101 ET
SEQ., including, but not limited to Title III thereof, and all regulations
and guidelines related thereto, together with any and all laws, rules,
regulations, ordinances, codes and statutes now or hereafter enacted by local
or state agencies having jurisdiction thereof, including all requirements of
Title 24 of the State of California, as the same may be in effect on the date
of this Lease and may be hereafter modified, amended or supplemented
(collectively, the "ADA"). Any Alterations (as hereinafter defined) to be
constructed hereunder shall be in compliance with the requirements of the
ADA, and all costs incurred for purposes of compliance therewith shall be a
part of and included in the costs of the Alternations. Tenant shall be
solely responsible for conducting its own independent investigation of this
matter and for ensuring that the design of all Alterations strictly complies
with all requirements of the ADA. Subject to reimbursement pursuant to
Paragraph 4 above, if any barrier removal work or other work is required to
the Building, the Common Areas or the Project under the ADA, then such work
shall be the responsibility of Landlord; provided, if such work is required
under the ADA as a result of Tenant's use of the Premises or any work or
Alteration made to the Premises by or on behalf of Tenant, then such work
shall be performed by Landlord at the sole cost and expense of Tenant. Except
as otherwise expressly provided in this provision, Tenant shall be
responsible at its sole cost and expense for fully and faithfully complying
with all applicable requirements of the ADA, including without limitation,
not discriminating against any disabled persons in the operation of Tenant's
business in or about the Premises, and offering or otherwise providing
auxiliary aids and services as, and when, required by the ADA. Within
fifteen (15) days after receipt, Tenant shall advise Landlord in writing, and
provide Landlord with copies of (as applicable), any notices alleging
violation of the ADA relating to any portion of the Premises, the Building or
the Project; any claims made or threatened orally or in writing regarding
noncompliance with the ADA and relating to any portion of the Premises, the
Building, or the Project; or any governmental or regulatory actions or
investigations instituted or threatened regarding noncompliance with the ADA
and relating to any portion of the Premises, the Building or the Project.
Tenant shall and hereby agrees to protect, defend (with counsel acceptable to
Landlord) and hold Landlord and Landlord's Agents harmless and indemnify
Landlord and Landlord's Agents from and against all liabilities, damages,
claims, losses, penalties, judgments, charges and expenses (including
attorneys' fees, costs of court and expenses necessary in the prosecution or
defense of any litigation including the enforcement of this provision)
arising from Tenant's or Tenant's Agents' violation or alleged violation of
the ADA. Tenant agrees that the obligations of Tenant herein shall survive
the expiration or earlier termination of this Lease
14
10. ACCEPTANCE OF PREMISES
(a) By entry hereunder, Tenant accepts the Premises as suitable for
Tenant's intended use and as being in good and sanitary operating order,
condition and repair, AS IS, and without representation or warranty by
Landlord as to the condition, use or occupancy which may be made thereof.
Any exceptions to the foregoing must be by written agreement executed by
Landlord and Tenant.
(b) Notwithstanding the terms of Paragraph 10(a) above, Landlord shall
cause the Systems serving the Premises to be in good working order on the
Commencement Date. Any claims by Tenant under the preceding sentence shall
be made in writing not later than the fifteenth (15th) day after the
Commencement Date. In the event Tenant fails to deliver a written claim to
Landlord on or before such fifteenth (15th) day, then Landlord shall be
conclusively deemed to have satisfied its obligations under this Paragraph
10(b).
11. SURRENDER
Tenant agrees that on the last day of the Term, or on the sooner
termination of this Lease, Tenant shall surrender the Premises to Landlord
(a) in good condition and repair (damage by acts of God, fire or other casualty,
Condemnation, and normal wear and tear excepted), but with all interior walls
cleaned, any carpets cleaned, all floors cleaned, all non-working light bulbs
and ballasts replaced and all roll-up doors and plumbing fixtures in good
condition and working order, and (b) otherwise in accordance with
Paragraph 32(h). Normal wear and tear shall not include any damage or
deterioration to the floors of the Premises arising from the use of forklifts
in, on or about the Premises (including, without limitation, any marks or stains
on any portion of the floors), and any damage or deterioration that would have
been prevented by proper maintenance by Tenant, or Tenant otherwise performing
all of its obligations under this Lease. On or before the expiration or sooner
termination of this Lease, Tenant shall remove from the Premises, the Building
and the Project and repair any damage caused by such removal, (i) all of
Tenant's Property (as hereinafter defined) and Tenant's signage, and (ii) any
Non-Permanent Tenant Improvements and Non-Permanent Alterations (as such terms
are hereinafter defined). Any of Tenant's Property not so removed by Tenant as
required herein shall be deemed abandoned and may be stored, removed, and
disposed of by Landlord at Tenant's expense, and Tenant waives all claims
against Landlord for any damages resulting from Landlord's retention and
disposition of such property; provided, however, that Tenant shall remain liable
to Landlord for all costs incurred in storing and disposing of such abandoned
property of Tenant. All Tenant Improvements and Alterations except those which
constitute Non-Permanent Tenant Improvements and Non-Permanent Alterations shall
remain in the Premises as the property of Landlord. If the Premises are not
surrendered at the end of the Term or sooner termination of this Lease, and in
accordance with the provisions of this Paragraph 11 and Paragraph 32(h) below,
Tenant shall continue to be responsible for the payment of Rent (as the same may
be increased pursuant to
15
Paragraph 35 below) until the Premises are so surrendered in accordance with
said Paragraphs, and Tenant shall indemnify, defend and hold Landlord
harmless from and against any and all loss or liability resulting from delay
by Tenant in so surrendering the Premises including, without limitation, any
loss or liability resulting from any claim against Landlord made by any
succeeding tenant or prospective tenant founded on or resulting from such
delay and losses to Landlord due to lost opportunities to lease any portion
of the Premises to any such succeeding tenant or prospective tenant, together
with, in each case, actual attorneys' fees and costs.
12. ALTERATIONS AND ADDITIONS
(a) Tenant shall not make, or permit to be made, any alteration,
addition or improvement (hereinafter referred to individually as an
"ALTERATION" and collectively as the "ALTERATIONS") to the Premises or any
part thereof without the prior written consent of Landlord, which consent
shall not be unreasonably withheld; provided, however, that Landlord shall
have the right in its sole and absolute discretion to consent or to withhold
its consent to any Alteration which affects the structural portions of the
Premises, the Building or the Project or the Systems serving the Premises,
the Building and/or the Project or any portion thereof (collectively,
"STRUCTURAL ALTERATIONS"). Landlord shall respond to Tenant's request for
consent to any Alterations within five (5) business days after Tenant
furnishes Landlord with plans and specifications for such Alterations and
other information requested by Landlord with respect thereto. Failure of
Landlord to respond within said five (5) business day period shall constitute
Landlord's consent to such Alterations, except that, in the case of
Structural Alterations desired to be made by Tenant, failure of Landlord to
respond within said five (5) business day period shall constitute disapproval
of the same. Notwithstanding the foregoing, Tenant shall have the right to
make Alterations (specifically excluding, however, Structural Alterations) to
the Premises with prior notice to but without the consent of Landlord,
provided that such Alterations are constructed and performed in full
compliance with the terms of Paragraphs 12(b) through (g) below and do not
exceed five thousand dollars ($5,000.00) in cost on an individual basis or
fifteen thousand dollars ($15,000.00) in the aggregate over the Term of this
Lease (collectively, "PERMITTED ALTERATIONS").
(b) Any Alteration to the Premises shall be at Tenant's sole cost and
expense, in compliance with all applicable Laws and all requirements
reasonably requested by Landlord, including, without limitation, the
requirements of any insurer providing coverage for the Premises or the
Project or any part thereof, and in accordance with plans and specifications
approved in writing by Landlord, and shall be constructed and installed by a
contractor approved in writing by Landlord. As a further condition to giving
consent, Landlord may require Tenant to provide Landlord, at Tenant's sole
cost and expense, a payment and performance bond in form acceptable to
Landlord, in a principal amount not less than one and one-half times the
estimated costs of such Alterations, to ensure Landlord against any liability
for mechanic's and materialmen's liens and to ensure completion of work.
16
Before Alterations may begin, valid building permits or other permits or
licenses required must be furnished to Landlord, and, once the Alterations
begin, Tenant will diligently pursue their completion. Landlord may monitor
construction of the Alterations and Tenant shall reimburse Landlord for its
out-of-pocket costs (including, without limitation, the costs of any
third-party construction manager retained by Landlord) in reviewing plans and
documents and in monitoring construction. Tenant shall maintain during the
course of construction, at its sole cost and expense, builders' risk
insurance for the amount of the completed value of the Alterations on an
all-risk non-reporting form covering all improvements under construction,
including building materials, and other insurance in amounts and against such
risks as Landlord shall reasonably require in connection with the
Alterations. In addition to and without limitation on the generality of the
foregoing, Tenant shall ensure that its contractor(s) procure and maintain in
full force and effect during the course of construction a "broad form"
commercial general liability and property damage policy of insurance naming
Landlord, Landlord's investment advisor and agent, Allegis, Tenant and
Landlord's lenders as additional insureds. The minimum limit of coverage of
the aforesaid policy shall be in the amount of not less than Three Million
Dollars ($3,000,000.00) for injury or death of one person in any one accident
or occurrence and in the amount of not less than Three Million Dollars
($3,000,000.00) for injury or death of more than one person in any one
accident or occurrence, and shall contain a severability of interest clause
or a cross liability endorsement. Such insurance shall further insure
Landlord and Tenant against liability for property damage of at least One
Million Dollars ($1,000,000.00).
(c) All Alterations, including, but not limited to, heating, lighting,
electrical, air conditioning, fixed partitioning, drapery, wall covering and
paneling, built-in cabinet work and carpeting installations made by Tenant (but
specifically excluding Non-Permanent Alterations), together with all property
that has become an integral part of the Premises or the Building, shall at once
be and become the property of Landlord, and shall not be deemed trade fixtures
or Tenant's Property. If requested by Landlord, Tenant will pay, prior to the
commencement of construction of any Non-Permanent Alterations, an amount
determined by Landlord necessary to cover the costs of demolishing such
Alterations and/or the cost of returning the Premises and the Building to its
condition prior to such Alterations.
(d) No private telephone systems and/or other related computer or
telecommunications equipment or lines (collectively, "COMMUNICATIONS EQUIPMENT")
may be installed without Landlord's prior written consent, which consent shall
not be unreasonably withheld; provided, however, that Landlord shall have the
right in its sole and absolute discretion to consent or to withhold its consent
to the installation of any such Communications Equipment which affects the
structural portions of the Premises, the Building or the Project. If Landlord
gives such consent, all Communications Equipment must be installed within the
Premises and, at the request of Landlord made at any time prior to the
expiration of the Term, removed upon the expiration or sooner termination of
this Lease and the Premises
17
restored to the same condition as before such installation. The terms of
this Paragraph 12(d) shall be inapplicable to, and the provisions of EXHIBIT
B hereto shall govern, any Communications Equipment which is installed in the
Premises as part of the Tenant Improvements.
(e) Notwithstanding anything herein to the contrary, before installing
any equipment or lights which generate an undue amount of heat in the
Premises, or if Tenant plans to use any high-power usage equipment in the
Premises, Tenant shall obtain the written permission of Landlord. Landlord
may refuse to grant such permission unless Tenant agrees to pay the costs to
Landlord for installation of supplementary air conditioning capacity or
electrical systems necessitated by such equipment.
(f) Tenant agrees not to proceed to make any Alterations,
notwithstanding consent from Landlord to do so, until Tenant has delivered to
Landlord at least ten (10) days prior written notice of the date Tenant
desires to commence construction or installation of such Alterations in order
that Landlord may post appropriate notices to avoid any liability to
contractors or material suppliers for payment for Tenant's improvements.
Tenant will at all times permit such notices to be posted and to remain
posted until the completion of work.
(g) At the time of requesting Landlord's consent to any Alterations
(or, with respect to any Permitted Alterations, at the time of giving notice
to Landlord of such Permitted Alterations in accordance with Paragraph 12(a)
above), Tenant shall have the right to request that Landlord inform Tenant
whether such Alterations may remain in the Premises, the Building or the
Project following, or must be removed from the Premises, the Building or the
Project prior to, the expiration or sooner termination of this Lease. Any
Alterations that Landlord requires to be so removed shall be referred to
herein as the "NON-PERMANENT ALTERATIONS." In the event Tenant constructs or
installs any Alterations without making the request on Landlord contemplated
under this Paragraph 12(g), or if for any reason whatsoever Landlord does not
specifically advise Tenant in writing that any Alterations may remain in the
Premises, the Building or the Project following the expiration or sooner
termination of the Lease, then such Alterations shall be deemed to be
Non-Permanent Alterations for all purposes of this Lease.
13. MAINTENANCE AND REPAIRS OF PREMISES
(a) MAINTENANCE BY TENANT. Except as otherwise provided in Paragraph
13(b), and subject to the provisions of Paragraphs 21 and 22, throughout the
Term, Tenant shall, at its sole expense, (1) keep and maintain in good order
and condition the Premises, and repair and replace every part thereof,
including glass, windows, window frames, window casements, skylights,
interior and exterior doors, door frames and door closers; interior lighting
(including, without limitation, light bulbs and ballasts), the interior
plumbing and electrical systems exclusively serving the Premises, all
communications systems serving the Premises, Tenant's signage,
18
interior demising walls and partitions, equipment, interior painting and
interior walls and floors, and the roll-up doors, ramps and dock equipment,
including, without limitation, dock bumpers, dock plates, dock seals, dock
levelers and dock lights located in or on the Premises (excepting only those
portions of the Building or the Project to be maintained by Landlord, as
provided in Paragraph 14(b) below), (2) furnish all expendables, including
light bulbs, paper goods and soaps, used in the Premises, and (3) keep and
maintain in good order and condition, repair and replace all of Tenant's
security systems in or about or serving the Premises and, except to the
extent that Landlord notifies Tenant in writing of its intention to arrange
for such monitoring, cause the fire alarm systems serving the Premises to be
monitored by a monitoring or protective services firm approved by Landlord in
writing. Tenant shall not do nor shall Tenant allow Tenant's Agents to do
anything to cause any damage, deterioration or unsightliness to the Premises,
the Building or the Project.
(b) MAINTENANCE BY LANDLORD. Subject to the provisions of
Paragraphs 14(a), 21 and 22, and further subject to Tenant's obligation under
Paragraph 4 to reimburse Landlord, in the form of Additional Rent, for Tenant's
Proportionate Share(s) of the cost and expense of the following items, Landlord
agrees to repair and maintain the following items: the roof coverings (provided
that Tenant installs no additional air conditioning or other equipment on the
roof that damages the roof coverings, in which event Tenant shall pay all costs
resulting from the presence of such additional equipment); the Systems serving
the Premises, the Building and the Project, excluding the interior plumbing and
electrical systems exclusively serving the Premises; and the Common Areas and
the Parking Areas, including, without limitation, the pavement, landscaping,
sprinkler systems, sidewalks, driveways, curbs, and lighting systems in the
Common Areas. Subject to the provisions of Paragraphs 13(a), 21 and 22,
Landlord, at its own cost and expense, agrees to repair and maintain the
following items: the structural portions of the roof (specifically excluding
the roof coverings), the foundation, the footings, the floor slab, and the load
bearing walls and exterior walls of the Building (excluding any glass and any
routine maintenance, including, without limitation, any painting, sealing,
patching and waterproofing of such walls). Notwithstanding anything in this
Paragraph 13 to the contrary, Landlord shall have the right to either repair or
to require Tenant to repair any damage to any portion of the Premises, the
Building and/or the Project caused by or created due to any act, omission,
negligence or willful misconduct of Tenant or Tenant's Agents and to restore the
Premises, the Building and/or the Project, as applicable, to the condition
existing prior to the occurrence of such damage; provided, however, that in the
event Landlord elects to perform such repair and restoration work, Tenant shall
reimburse Landlord upon demand for all costs and expenses incurred by Landlord
in connection therewith. Landlord's obligation hereunder to repair and maintain
is subject to the condition precedent that Landlord shall have received written
notice of the need for such repairs and maintenance and a reasonable time to
perform such repair and maintenance. Tenant shall promptly report in writing to
Landlord any defective or other condition actually known to it which Landlord is
required to repair, and failure to so report such defects shall make
19
Tenant responsible to Landlord for the costs and expenses of repairing any
additional damage or deterioration occurring after the date Tenant obtains
knowledge of such defective condition and any liability incurred by Landlord
by reason of Tenant's failure to notify Landlord of such defective condition
in a timely manner as provided herein.
(c) TENANT'S WAIVER OF RIGHTS. Tenant hereby expressly waives all rights
to make repairs at the expense of Landlord or to terminate this Lease, as
provided for in California Civil Code Sections 1941 and 1942, and 1932(1),
respectively, and any similar or successor statute or law in effect or any
amendment thereof during the Term.
14. LANDLORD'S INSURANCE
Landlord shall purchase and keep in force fire, extended coverage and "all
risk" insurance covering the Building and the Project in an amount equal to the
full replacement cost thereof. Tenant shall, at its sole cost and expense,
comply with any and all reasonable requirements pertaining to the Premises, the
Building and the Project of any insurer necessary for the maintenance of
reasonable fire and commercial general liability insurance, covering the
Building and the Project. Landlord, at Tenant's cost, may maintain "Loss of
Rents" insurance, insuring that the Rent will be paid in a timely manner to
Landlord for a period of at least twelve (12) months if the Premises, the
Building or the Project or any portion thereof are destroyed or rendered
unusable or inaccessible by any cause insured against under this Lease.
15. TENANT'S INSURANCE
(a) COMMERCIAL GENERAL LIABILITY INSURANCE. Tenant shall, at Tenant's
expense, secure and keep in force a "broad form" commercial general liability
insurance and property damage policy covering the Premises, insuring Tenant, and
naming Landlord, Landlord's investment advisors and agents from time to time,
including, without limitation, Allegis, and Landlord's lenders as additional
insureds, against any liability arising out of the ownership, use, occupancy or
maintenance of the Premises. The minimum limit of coverage of such policy shall
be in the amount of not less than Three Million Dollars ($3,000,000.00) for
injury or death of one person in any one accident or occurrence and in the
amount of not less than Three Million Dollars ($3,000,000.00) for injury or
death of more than one person in any one accident or occurrence, shall include
an extended liability endorsement providing contractual liability coverage
(which shall include coverage for Tenant's indemnification obligations in this
Lease), and shall contain a severability of interest clause or a cross liability
endorsement. Such insurance shall further insure Landlord and Tenant against
liability for property damage of at least Three Million Dollars ($3,000,000.00).
Landlord may from time to time require reasonable increases in any such limits
if Landlord believes that additional coverage is necessary or desirable. The
limit of any insurance shall not limit the liability of
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Tenant hereunder. No policy maintained by Tenant under this Paragraph 15(a)
shall contain a deductible greater than ten thousand dollars ($10,000.00).
No policy shall be cancelable or subject to reduction of coverage without
thirty (30) days prior written notice to Landlord, and loss payable clauses
shall be subject to Landlord's approval. Such policies of insurance shall be
issued as primary policies and not contributing with or in excess of coverage
that Landlord may carry, by an insurance company authorized to do business in
the State of California for the issuance of such type of insurance coverage
and rated A:VII or better in Best's Key Rating Guide.
(b) PERSONAL PROPERTY INSURANCE. Tenant shall maintain in full force and
effect on all of its personal property, furniture, furnishings, trade or
business fixtures and equipment (collectively, "TENANT'S PROPERTY") on the
Premises, a policy or policies of fire and extended coverage insurance with
standard coverage endorsement to the extent of the full replacement cost
thereof. No such policy shall contain a deductible greater than ten thousand
dollars ($10,000.00). During the term of this Lease the proceeds from any such
policy or policies of insurance shall be used for the repair or replacement of
the fixtures and equipment so insured. Landlord shall have no interest in the
insurance upon Tenant's equipment and fixtures and will sign all documents
reasonably necessary in connection with the settlement of any claim or loss by
Tenant. Landlord will not carry insurance on Tenant's possessions.
(c) WORKER'S COMPENSATION INSURANCE; EMPLOYER'S LIABILITY INSURANCE.
Tenant shall, at Tenant's expense, maintain in full force and effect worker's
compensation insurance with not less than the minimum limits required by law,
and employer's liability insurance with a minimum limit of coverage of One
Million Dollars ($1,000,000).
(d) EVIDENCE OF COVERAGE. Tenant shall deliver to Landlord certificates
of insurance and true and complete copies of any and all endorsements required
herein for all insurance required to be maintained by Tenant hereunder at the
time of execution of this Lease by Tenant. Tenant shall, at least thirty (30)
days prior to expiration of each policy, furnish Landlord with certificates of
renewal or "binders" thereof. Each certificate shall expressly provide that
such policies shall not be cancellable or otherwise subject to modification
except after thirty (30) days prior written notice to Landlord and the other
parties named as additional insureds as required in this Lease (except for
cancellation for nonpayment of premium, in which event cancellation shall not
take effect until at least ten (10) days notice has been given to Landlord).
16. INDEMNIFICATION
(a) OF LANDLORD. Tenant shall indemnify and hold harmless Landlord and
Landlord's Agents against and from any and all claims, liabilities, judgments,
costs, demands, causes of action and expenses (including, without limitation,
reasonable
21
attorneys' fees) arising from (1) the use of the Premises, the Building or
the Project by Tenant or Tenant's Agents, or from any activity done,
permitted or suffered by Tenant or Tenant's Agents in or about the Premises,
the Building or the Project, and (2) any act, neglect, fault, willful
misconduct or omission of Tenant or Tenant's Agents, or from any breach or
default in the terms of this Lease by Tenant or Tenant's Agents, and (3) any
action or proceeding brought on account of any matter in items (1) or (2).
If any action or proceeding is brought against Landlord by reason of any such
claim, upon notice from Landlord, Tenant shall defend the same at Tenant's
expense by counsel reasonably satisfactory to Landlord. As a material part
of the consideration to Landlord, Tenant hereby releases Landlord and
Landlord's Agents from responsibility for, waives its entire claim of
recovery for and assumes all risk of (i) damage to property or injury to
persons in or about the Premises, the Building or the Project from any cause
whatsoever (except that which is caused by the gross negligence or willful
misconduct of Landlord or Landlord's Agents or by the failure of Landlord to
observe any of the terms and conditions of this Lease, if such failure has
persisted for an unreasonable period of time after written notice of such
failure), or (ii) loss resulting from business interruption or loss of income
at the Premises. The obligations of Tenant under this Paragraph 16(a) shall
survive any termination of this Lease.
(b) OF TENANT. Landlord shall indemnify and hold harmless Tenant against
and from any and all claims, liabilities, judgments, costs, demands, causes of
action and expenses (including, without limitation, reasonable attorneys' fees)
arising from (1) the gross negligence of Landlord or from any breach or default
in the terms of this Lease by Landlord (if such breach or default has persisted
for an unreasonable period of time after written notice of such failure), and
(2) any action or proceeding brought on account of any matter in item (1). If
any action or proceeding is brought against Tenant by reason of any such claim,
upon notice from Tenant, Landlord shall defend the same at Landlord's expense by
counsel reasonably satisfactory to Tenant. The obligations of Landlord under
this Paragraph 16(b) shall survive any termination of this Lease.
(c) NO IMPAIRMENT OF INSURANCE. The foregoing indemnities shall not
relieve any insurance carrier of its obligations under any policies required to
be carried by either party pursuant to this Lease, to the extent that such
policies cover the peril or occurrence that results in the claim that is subject
to the foregoing indemnity.
17. SUBROGATION
Landlord and Tenant hereby mutually waive any claim against the other and
its Agents for any loss or damage to any of their property located on or about
the Premises, the Building or the Project that is caused by or results from
perils covered by property insurance carried by the respective parties, to the
extent of the proceeds of such insurance actually received with respect to such
loss or damage, whether or not due to the negligence of the other party or its
Agents. Because the foregoing waivers will preclude the assignment of any claim
by way of subrogation to an
22
insurance company or any other person, each party now agrees to give to its
insurer written notice of the terms of these mutual waivers and shall have
their insurance policies endorsed to prevent the invalidation of the
insurance coverage because of these waivers. Nothing in this Paragraph 17
shall relieve a party of liability to the other for failure to carry
insurance required by this Lease.
18. SIGNS
Tenant shall not place or permit to be placed in, upon, or about the
Premises, the Building or the Project any exterior lights, decorations,
balloons, flags, pennants, banners, advertisements or notices, or erect or
install any signs, windows or door lettering, placards, decorations, or
advertising media of any type which can be viewed from the exterior the
Premises without obtaining Landlord's prior written consent or without
complying with Landlord's signage criteria specified on EXHIBIT E hereto, as
the same may be modified by Landlord from time to time (the "SIGNAGE
CRITERIA"), and with all applicable Laws, and will not conduct, or permit to
be conducted, any sale by auction on the Premises or otherwise on the
Project. Notwithstanding the foregoing, Tenant shall have the right during
the Term to maintain identification signage on the exterior of the Building,
subject to compliance with the Signage Criteria and all applicable Laws. In
addition, Tenant shall have the right during the Term to maintain
identification signage on the monument sign installed by Landlord at the
Project closest to the date of this Lease, subject to compliance with the
Signage Criteria and all Applicable Laws. Tenant shall remove any sign,
advertisement or notice placed on the Premises, the Building or the Project
by Tenant upon the expiration of the Term or sooner termination of this
Lease, and Tenant shall repair any damage or injury to the Premises, the
Building or the Project caused thereby, all at Tenant's expense. If any signs
are not removed, or necessary repairs not made, Landlord shall have the right
to remove the signs and repair any damage or injury to the Premises, the
Building or the Project at Tenant's sole cost and expense.
19. FREE FROM LIENS
Tenant shall keep the Premises, the Building and the Project free from
any liens arising out of any work performed, material furnished or
obligations incurred by or for Tenant. In the event that Tenant shall not,
within the Relevant Period (as hereinafter defined), cause the lien to be
released of record by payment or posting of a proper bond, Landlord shall
have in addition to all other remedies provided herein and by law the right
but not the obligation to cause same to be released by such means as it shall
deem proper, including payment of the claim giving rise to such lien. All
such sums paid by Landlord and all expenses incurred by it in connection
therewith (including, without limitation, attorneys' fees) shall be payable
to Landlord by Tenant upon demand. Landlord shall have the right at all
times to post and keep posted on the Premises any notices permitted or
required by law or that Landlord shall deem proper for the protection of
Landlord, the Premises, the Building and the Project, from mechanics' and
materialmen's liens. Tenant shall
23
give to Landlord at least five (5) business days' prior written notice of
commencement of any repair or construction on the Premises. As used herein,
"RELEVANT PERIOD" means, with respect to any lien, the period of thirty (30)
days following the imposition of such lien, provided, however, that if
Landlord is then attempting to sell or otherwise convey or obtain financing
for the Project, the Relevant Period shall be reduced to fifteen (15) days
following the imposition of such lien.
20. ENTRY BY LANDLORD
Tenant shall permit Landlord and Landlord's Agents to enter into and
upon the Premises at all reasonable times, upon reasonable notice (except in
the case of an emergency, for which no notice shall be required), and subject
to Tenant's reasonable security arrangements, for the purpose of inspecting
the same or showing the Premises to prospective purchasers, lenders or
tenants (but with respect to tenants, only during the last nine (9) months of
the Term) or to alter, improve, maintain and repair the Premises or the
Building as required or permitted of Landlord under the terms hereof, or for
any other business purpose, without any rebate of Rent and without any
liability to Tenant for any loss of occupation or quiet enjoyment of the
Premises thereby occasioned (except for actual damages resulting from the
gross negligence or willful misconduct of Landlord or Landlord's Agents); and
Tenant shall permit Landlord to post notices of non-responsibility and
ordinary "for sale" or "for lease" signs (but with respect to "for lease"
signs, only during the last nine (9) months of the Term). No such entry shall
be construed to be a forcible or unlawful entry into, or a detainer of, the
Premises, or an eviction of Tenant from the Premises. Landlord may
temporarily close entrances, doors, corridors, elevators or other facilities
without liability to Tenant by reason of such closure in the case of an
emergency and when Landlord otherwise reasonably deems such closure
necessary. Except in the case of an emergency, Landlord shall not
unreasonably interfere with Tenant's business or its use or enjoyment of the
Premises or the Common Areas in exercising Landlord's rights under this
Paragraph 20.
21. DESTRUCTION AND DAMAGE
(a) If the Premises are damaged by fire or other perils covered by
extended coverage insurance, Landlord shall, at Landlord's option:
(1) In the event of total destruction (which shall mean
destruction or damage in excess of twenty-five percent (25%) of the full
insurable value thereof) of the Premises, elect either to commence promptly
to repair and restore the Premises and prosecute the same diligently to
completion, in which event this Lease shall remain in full force and effect;
or not to repair or restore the Premises, in which event this Lease shall
terminate. Landlord shall give Tenant written notice of its intention within
sixty (60) days after the date (the "CASUALTY DISCOVERY DATE") Landlord
obtains actual knowledge of such destruction. If Landlord elects not to
24
restore the Premises, this Lease shall be deemed to have terminated as of the
date of such total destruction.
(2) In the event of a partial destruction (which shall mean
destruction or damage to an extent not exceeding twenty-five percent (25%) of
the full insurable value thereof) of the Premises for which Landlord will
receive insurance proceeds (or amounts from Tenant as described below)
sufficient to cover the cost to repair and restore such partial destruction
and, if the damage thereto is such that the Premises may be substantially
repaired or restored to its condition existing immediately prior to such
damage or destruction within one hundred eighty (180) days from the Casualty
Discovery Date, Landlord shall commence and proceed diligently with the work
of repair and restoration, in which event the Lease shall continue in full
force and effect. If such repair and restoration requires longer than one
hundred eighty (180) days or if the insurance proceeds therefor (plus any
amounts Tenant may elect or is obligated to contribute) are not sufficient to
cover the cost of such repair and restoration, Landlord may elect either to
so repair and restore, in which event the Lease shall continue in full force
and effect, or not to repair or restore, in which event the Lease shall
terminate. In either case, Landlord shall give written notice to Tenant of
its intention within sixty (60) days after the Casualty Discovery Date. If
Landlord elects not to restore the Premises, this Lease shall be deemed to
have terminated as of the date of such partial destruction.
(3) Notwithstanding anything to the contrary contained in this
Paragraph, in the event of damage to the Premises occurring during the last
twelve (12) months of the Term, Landlord and Tenant shall each have the right
to terminate this Lease by written notice of such election given to the other
party within thirty (30) days after the Casualty Discovery Date; provided,
however, that Tenant shall have the right to terminate this Lease pursuant to
this Paragraph 21(a)(3) only if Tenant's use and occupancy of the Premises
are materially interfered with as a result of such damage.
(b) If the Premises are damaged by any peril not covered by extended
coverage insurance, and the cost to repair such damage exceeds any amount
Tenant may agree to contribute, Landlord may elect either to commence
promptly to repair and restore the Premises and prosecute the same diligently
to completion, in which event this Lease shall remain in full force and
effect; or not to repair or restore the Premises, in which event this Lease
shall terminate. Landlord shall give Tenant written notice of its intention
within sixty (60) days after the Casualty Discovery Date. If Landlord elects
not to restore the Premises, this Lease shall be deemed to have terminated as
of the date on which Tenant surrenders possession of the Premises to
Landlord, except that if the damage to the Premises materially impairs
Tenant's ability to continue its business operations in the Premises, then
this Lease shall be deemed to have terminated as of the date such damage
occurred.
(c) If the Premises is damaged or destroyed to the extent that the
Premises cannot be substantially repaired or restored by Landlord within two
hundred seventy
25
(270) days after the Casualty Discovery Date, Tenant may terminate this Lease
immediately upon notice thereof to Landlord, which notice shall be given, if
at all, not later than fifteen (15) days after Landlord notifies Tenant of
Landlord's estimate of the period of time required to repair such damage or
destruction.
(d) In the event of repair and restoration as herein provided, the Rent
shall be abated proportionately in the ratio which Tenant's use of the
Premises is impaired during the period of such repair or restoration;
provided, however, that Tenant shall not be entitled to such abatement to the
extent that such damage or destruction resulted from the negligence or
willful misconduct of Tenant or Tenant's Agents. Except as expressly
provided in the immediately preceding sentence with respect to abatement of
Base Rent, Tenant shall have no claim against Landlord for, and hereby
releases Landlord and Landlord's Agents from responsibility for and waives
its entire claim of recovery for any cost, loss or expense suffered or
incurred by Tenant as a result of any damage to or destruction of the
Premises, the Building or the Project or the repair or restoration thereof,
including, without limitation, any cost, loss or expense resulting from any
loss of use of the whole or any part of the Premises, the Building or the
Project and/or any inconvenience or annoyance occasioned by such damage,
repair or restoration.
(e) If Landlord is obligated to or elects to repair or restore as
herein provided, Landlord shall repair or restore only the initial tenant
improvements, if any, constructed by Landlord in the Premises pursuant to the
terms of this Lease, substantially to their condition existing immediately
prior to the occurrence of the damage or destruction; and Tenant shall
promptly repair and restore, at Tenant's expense, Tenant's Alterations which
were not constructed by Landlord.
(f) Tenant hereby waives the provisions of California Civil Code
Section 1932(2) and Section 1933(4) which permit termination of a lease upon
destruction of the leased premises, and the provisions of any similar law now
or hereinafter in effect, and the provisions of this Paragraph 21 shall
govern exclusively in case of such destruction.
22. CONDEMNATION
(a) If twenty-five percent (25%) or more of either the Premises, the
Building or the Project or the parking areas for the Building or the Project
is taken for any public or quasi-public purpose by any lawful governmental
power or authority, by exercise of the right of appropriation, inverse
condemnation, condemnation or eminent domain, or sold to prevent such taking
(each such event being referred to as a "CONDEMNATION"), Landlord may, at its
option, terminate this Lease as of the date title vests in the condemning
party. If twenty-five percent (25%) or more of the Premises is taken and if
the Premises remaining after such Condemnation and any repairs by Landlord
would be untenantable for the conduct of Tenant's business operations (as
determined by Tenant in good faith), Tenant shall have the right to terminate
this Lease as of the date title vests in the condemning party. If either
26
party elects to terminate this Lease as provided herein, such election shall
be made by written notice to the other party given within thirty (30) days
after the nature and extent of such Condemnation have been finally
determined. If neither Landlord nor Tenant elects to terminate this Lease to
the extent permitted above, Landlord shall promptly proceed to restore the
Premises, to the extent of any Condemnation award received by Landlord, to
substantially the same condition as existed prior to such Condemnation,
allowing for the reasonable effects of such Condemnation, and a proportionate
abatement shall be made to the Rent corresponding to the time during which,
and to the portion of the floor area of the Premises (adjusted for any
increase thereto resulting from any reconstruction) of which, Tenant is
deprived on account of such Condemnation and restoration, as reasonably
determined by Landlord. Except as expressly provided in the immediately
preceding sentence with respect to abatement of Base Rent, Tenant shall have
no claim against Landlord for, and hereby releases Landlord and Landlord's
Agents from responsibility for and waives its entire claim of recovery for
any cost, loss or expense suffered or incurred by Tenant as a result of any
Condemnation or the repair or restoration of the Premises, the Building or
the Project or the parking areas for the Building or the Project following
such Condemnation, including, without limitation, any cost, loss or expense
resulting from any loss of use of the whole or any part of the Premises, the
Building, the Project or the parking areas and/or any inconvenience or
annoyance occasioned by such Condemnation, repair or restoration. The
provisions of California Code of Civil Procedure Section 1265.130, which
allows either party to petition the Superior Court to terminate the Lease in
the event of a partial taking of the Premises, the Building or the Project or
the parking areas for the Building or the Project, and any other applicable
law now or hereafter enacted, are hereby waived by Tenant.
(b) Landlord shall be entitled to any and all compensation, damages,
income, rent, awards, or any interest therein whatsoever which may be paid or
made in connection with any Condemnation, and Tenant shall have no claim
against Landlord for the value of any unexpired term of this Lease or
otherwise; provided, however, that Tenant shall be entitled to receive any
award separately allocated by the condemning authority to Tenant for Tenant's
relocation expenses, loss of good will or the value of Tenant's Property
(specifically excluding fixtures, Alterations and other components of the
Premises which under this Lease or by law are or at the expiration of the
Term will become the property of Landlord), provided that such award does not
reduce any award otherwise allocable or payable to Landlord.
23. ASSIGNMENT AND SUBLETTING
(a) Tenant shall not voluntarily or by operation of law, (1) mortgage,
pledge, hypothecate or encumber this Lease or any interest herein, (2) assign
or transfer this Lease or any interest herein, sublease the Premises or any
part thereof, or any right or privilege appurtenant thereto, or allow any
other person (the employees and invitees of Tenant excepted) to occupy or use
the Premises, or any portion thereof, without first obtaining the written
consent of Landlord, which consent shall not be
27
unreasonably withheld, conditioned or delayed provided that (i) Tenant is not
then in Default under this Lease nor is any event then occurring and
continuing which with the giving of notice or the passage of time, or both,
would constitute a Default hereunder, and (ii) the proposed transfer is not
an assignment or a sublease under a previous assignment or an existing
sublease. When Tenant requests Landlord's consent to such assignment or
subletting, it shall notify Landlord in writing of the name and address of
the proposed assignee or subtenant and the nature and character of the
business of the proposed assignee or subtenant and shall provide (A) a fully
completed Hazardous Materials Disclosure Certificate for such assignee or
subtenant in the form of EXHIBIT F hereto, and (B) current and prior
financial statements for the proposed assignee or subtenant, which financial
statements shall be audited to the extent available and shall in any event be
prepared in accordance with generally accepted accounting principles. Tenant
shall also provide Landlord with a copy of the proposed sublease or
assignment agreement, including all material terms and conditions thereof.
Landlord shall have the option, to be exercised within thirty (30) days of
receipt of the foregoing, to (1) terminate this Lease as of the commencement
date stated in the proposed sublease or assignment, (2) sublease or take an
assignment, as the case may be, from Tenant of the interest, or any portion
thereof, in this Lease and/or the Premises that Tenant proposes to assign or
sublease, on the same terms and conditions as stated in the proposed sublet
or assignment agreement, and Tenant shall be relieved of its obligations
hereunder, but solely to the extent of the portion of the Premises covered by
such sublease or assignment and then only during the term thereof, (3)
consent to the proposed assignment or sublease, or (4) refuse its consent to
the proposed assignment or sublease, providing that such consent shall not be
unreasonably withheld, conditioned or delayed so long as Tenant is not then
in Default under this Lease nor is any event then occurring and continuing
which with the giving of notice or the passage of time, or both, would
constitute a Default hereunder. In the event Landlord elects to terminate
this Lease or sublease or take an assignment from Tenant of the interest, or
portion thereof, in the Lease and/or the Premises that Tenant proposes to
assign or sublease as provided in the foregoing clauses (1) and (2),
respectively, then Landlord shall have the additional right to negotiate
directly with Tenant's proposed assignee or subtenant and to enter into a
direct lease or occupancy agreement with such party on such terms as shall be
acceptable to Landlord in its sole and absolute discretion, and Tenant hereby
waives any claims against Landlord related thereto, including, without
limitation, any claims for any compensation or profit related to such lease
or occupancy agreement.
(b) Notwithstanding anything to the contrary contained in Paragraph
23(a) above, Tenant shall have the right with prior written notice to, but
without the consent of, Landlord, to assign this Lease or to sublease the
Premises or any part thereof to (i) a Tenant Subsidiary (as hereinafter
defined), (ii) a Tenant Sister-Entity with Acceptable Sales and an Acceptable
Net Worth (as such terms are hereinafter defined), and (iii) a Corporate
Successor with Acceptable Sales and an Acceptable Net Worth (as such terms
are hereinafter defined). For purposes of this Paragraph 23(b), the
following terms shall have the meanings set forth below:
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(i) "ACCEPTABLE NET WORTH" means a net worth (determined in
accordance with GAAP) equal to or greater than the net worth of Tenant on the
date of this Lease or the date of the applicable sublease or assignment,
whichever is greater.
(ii) "ACCEPTABLE SALES" means sales revenues equal to or greater
than the sales revenues of Tenant on the date of this Lease or the date of
the applicable sublease or assignment, whichever are greater.
(iii)"CORPORATE SUCCESSOR" means an entity that acquires all
or substantially all of the business and assets of Tenant or results from
merger with Tenant; provided, however, that an entity shall be deemed to be a
"Corporate Successor" of Tenant only if there is continuity of management
between Tenant and such entity.
(iv) "TENANT SISTER-ENTITY" means an entity that is controlled by
the shareholders or parent of Tenant; and a party shall be deemed to
"control" another party for purposes of the aforesaid definition and the
definition set forth in subparagraph (v) below only if the first party (A)
owns fifty percent (50%) or more of the stock or other beneficial interests
of the second party, and (B) possesses the power and ability to direct the
day-to-day business and long-term operations of the second party.
(v) "TENANT SUBSIDIARY" means an entity that is controlled by
Tenant.
(c) Without otherwise limiting the criteria upon which Landlord may
withhold its consent under Paragraph 23(a) above, Landlord shall be entitled
to consider all reasonable criteria including, but not limited to, the
following: (1) whether or not the proposed subtenant or assignee is engaged
in a business which, and the use of the Premises will be in an manner which,
is in keeping with the then character and nature of all other tenancies in
the Project, (2) whether the use to be made of the Premises by the proposed
subtenant or assignee will conflict with any so-called "exclusive" use then
in favor of any other tenant of the Building or the Project, and whether such
use would be prohibited by any other portion of this Lease, including, but
not limited to, any rules and regulations then in effect, or under applicable
Laws, and whether such use imposes an unreasonably greater load upon the
Premises and the Building and Project services then imposed by Tenant, (3)
the business reputation of the proposed individuals who will be managing and
operating the business operations of the assignee or subtenant, and the
long-term financial and competitive business prospects of the proposed
assignee or subtenant, and (4) the creditworthiness and financial stability
of the proposed assignee or subtenant in light of the responsibilities
involved. In any event, Landlord may withhold its consent to any assignment
or sublease, if (i) the actual use proposed to be conducted in the Premises
or portion thereof conflicts with the provisions of Paragraph 9(a) or (b)
above or with any other lease which restricts the use to which any space in
the Building or the Project may be put, or (ii) the proposed assignment or
sublease requires alterations, improvements or additions to the Premises or
portions thereof.
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(d) If Landlord approves an assignment or subletting as herein
provided, Tenant shall pay to Landlord, as Additional Rent, the difference,
if any, between (1) the Base Rent plus Additional Rent allocable to that part
of the Premises affected by such assignment or sublease pursuant to the
provisions of this Lease, and (2) the rent and any additional rent payable by
the assignee or sublessee to Tenant, less reasonable and customary
market-based leasing commissions and actual legal fees, if any, incurred by
Tenant in connection with such assignment or sublease, which commissions and
fees shall, for purposes of the aforesaid calculation, be amortized on a
straight-line basis over the term of such assignment or sublease. The
assignment or sublease agreement, as the case may be, after approval by
Landlord, shall not be amended without Landlord's prior written consent, and
shall contain a provision directing the assignee or subtenant to pay the
applicable rent and other sums due thereunder directly to Landlord upon
receiving written notice from Landlord that Tenant is in default under this
Lease with respect to the payment of Rent. In the event that,
notwithstanding the giving of such notice, Tenant collects any rent or other
sums from the assignee or subtenant owing to Landlord, then Tenant shall hold
such sums in trust for the benefit of Landlord and shall immediately forward
the same to Landlord. Landlord's collection of such rent and other sums
shall not constitute an acceptance by Landlord of attornment by such assignee
or subtenant. A consent to one assignment, subletting, occupation or use
shall not be deemed to be a consent to any other or subsequent assignment,
subletting, occupation or use, and consent to any assignment or subletting
shall in no way relieve Tenant of any liability under this Lease (except as
provided in the second clause (2) of Paragraph 23(a)). Any assignment or
subletting without Landlord's consent shall be void, and shall, at the option
of Landlord, constitute a Default under this Lease.
(e) Notwithstanding any assignment or subletting, and except as
expressly provided in the second clause (2) of Paragraph 23(a), Tenant shall
at all times remain fully responsible and liable for the payment of the Rent
and for compliance with all of Tenant's other obligations under this Lease
(regardless of whether Landlord's approval has been obtained for any such
assignment or subletting).
(f) Tenant shall pay Landlord's reasonable fees (including, without
limitation, the fees of Landlord's counsel, not to exceed $1,500.00 per
transaction), incurred in connection with Landlord's review and processing of
documents regarding any proposed assignment or sublease.
(g) Notwithstanding anything in this Lease to the contrary, in the
event Landlord consents to an assignment or subletting by Tenant in
accordance with the terms of this Paragraph 23, Tenant's assignee or
subtenant shall have no right to further assign this Lease or any interest
therein or thereunder or to further sublease all or any portion of the
Premises. In furtherance of the foregoing, Tenant acknowledges and agrees on
behalf of itself and any assignee or subtenant claiming under it (and any
such assignee or subtenant by accepting such assignment or
30
sublease shall be deemed to acknowledge and agree) that no sub-subleases or
further assignments of this Lease shall be permitted at any time.
(h) Tenant acknowledges and agrees that the restrictions, conditions
and limitations imposed by this Paragraph 23 on Tenant's ability to assign or
transfer this Lease or any interest herein, to sublet the Premises or any
part thereof, to transfer or assign any right or privilege appurtenant to the
Premises, or to allow any other person to occupy or use the Premises or any
portion thereof, are, for the purposes of California Civil Code Section
1951.4, as amended from time to time, and for all other purposes, reasonable
at the time that the Lease was entered into, and shall be deemed to be
reasonable at the time that Tenant seeks to assign or transfer this Lease or
any interest herein, to sublet the Premises or any part thereof, to transfer
or assign any right or privilege appurtenant to the Premises, or to allow any
other person to occupy or use the Premises or any portion thereof.
24. TENANT'S DEFAULT
The occurrence of any one of the following events shall constitute an
event of default on the part of Tenant ("DEFAULT"):
(a) The vacation or abandonment of the Premises by Tenant for a period
of ten (10) consecutive days or any vacation or abandonment of the Premises
by Tenant which would cause any insurance policy to be invalidated or
otherwise lapse, in each of the foregoing cases irrespective of whether or
not Tenant is then in monetary default under this Lease. Tenant agrees to
notice and service of notice as provided for in this Lease and waives any
right to any other or further notice or service of notice which Tenant may
have under any statute or law now or hereafter in effect;
(b) Failure to pay any installment of Rent or any other monies due and
payable hereunder, said failure continuing for a period of three (3) business
days after the same is due;
(c) A general assignment by Tenant for the benefit of creditors;
(d) The filing of a voluntary petition in bankruptcy by Tenant, the
filing by Tenant of a voluntary petition for an arrangement, the filing by or
against Tenant of a petition, voluntary or involuntary, for reorganization,
or the filing of an involuntary petition by the creditors of Tenant, said
involuntary petition remaining undischarged for a period of sixty (60) days;
(e) Receivership, attachment, or other judicial seizure of
substantially all of Tenant's assets on the Premises, such attachment or
other seizure remaining undismissed or undischarged for a period of sixty
(60) days after the levy thereof;
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(f) The failure by Tenant to maintain its legal existence, if Tenant is
a corporation, partnership, limited liability company, trust or other legal
entity;
(g) Failure of Tenant to execute and deliver to Landlord any estoppel
certificate, subordination agreement, or lease amendment within the time
periods and in the manner required by Paragraphs 30 or 31 or 42, and/or
failure by Tenant to deliver to Landlord any financial statement within the
time period and in the manner required by Paragraph 40;
(h) An assignment or sublease, or attempted assignment or sublease, of
this Lease or the Premises by Tenant contrary to the provision of Paragraph
23, unless such assignment or sublease is expressly conditioned upon Tenant
having received Landlord's consent thereto;
(i) Failure of Tenant to restore the Security Deposit to the amount and
within the time period provided in Paragraph 7;
(j) Failure in the performance of any of Tenant's covenants, agreements
or obligations hereunder (except those failures specified as events of
Default in subparagraphs (b), (l) or (m) above or any other subparagraphs of
this Paragraph 24, which shall be governed by such other Paragraphs), which
failure continues for ten (10) days after written notice thereof from
Landlord to Tenant, provided that, if Tenant has exercised reasonable
diligence to cure such failure and such failure cannot be cured within such
ten (10) day period despite reasonable diligence, Tenant shall not be in
default under this subparagraph so long as Tenant thereafter diligently and
continuously prosecutes the cure to completion and actually completes such
cure within sixty (60) days after the giving of the aforesaid written notice;
(k) Chronic delinquency by Tenant in the payment of Rent, or any other
periodic payments required to be paid by Tenant under this Lease. "CHRONIC
DELINQUENCY" shall mean failure by Tenant to pay Rent, or any other payments
required to be paid by Tenant under this Lease within three (3) business days
after written notice thereof for any three (3) months (consecutive or
nonconsecutive) during any period of twelve (12) months. In the event of a
Chronic delinquency, in addition to Landlord's other remedies for Default
provided in this Lease, at Landlord's option, Landlord shall have the right
to require that Rent be paid by Tenant quarterly, in advance;
(l) Chronic overuse by Tenant or Tenant's Agents of the number of
undesignated parking spaces set forth in the Basic Lease Information.
"CHRONIC OVERUSE" shall mean use by Tenant or Tenant's Agents of a number of
parking spaces greater than the number of parking spaces set forth in the
Basic Lease Information more than three (3) times during the Term after
written notice by Landlord;
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(m) Any insurance required to be maintained by Tenant pursuant to this
Lease shall be canceled or terminated or shall expire or be reduced or
materially changed, except as permitted in this Lease; and
(n) Any failure by Tenant to discharge any lien or encumbrance placed on
the Project or any part thereof in violation of this Lease within thirty (30)
days after the date such lien or encumbrance is filed or recorded against the
Project or any part thereof; provided, however, that if Landlord is then
attempting to sell or otherwise convey or obtain financing for the Project,
Tenant shall cause such lien or encumbrance to be discharged within fifteen (15)
days after the date the same is filed or recorded against the Project or any
part thereof.
Tenant agrees that any notice given by Landlord pursuant to
Paragraph 24(j), (k) or (l) above shall satisfy the requirements for notice
under California Code of Civil Procedure Section 1161, and Landlord shall not be
required to give any additional notice in order to be entitled to commence an
unlawful detainer proceeding.
25. LANDLORD'S REMEDIES
(a) TERMINATION. In the event of any Default by Tenant, then in addition
to any other remedies available to Landlord at law or in equity and under this
Lease, Landlord shall have the immediate option to terminate this Lease and all
rights of Tenant hereunder by giving written notice of such intention to
terminate. In the event that Landlord shall elect to so terminate this Lease
then Landlord may recover from Tenant:
(1) the worth at the time of award of any unpaid Rent and any other
sums due and payable which have been earned at the time of such termination;
plus
(2) the worth at the time of award of the amount by which the unpaid
Rent and any other sums due and payable which would have been earned after
termination until the time of award exceeds the amount of such rental loss
Tenant proves could have been reasonably avoided; plus
(3) the worth at the time of award of the amount by which the unpaid
Rent and any other sums due and payable for the balance of the term of this
Lease after the time of award exceeds the amount of such rental loss that Tenant
proves could be reasonably avoided; plus
(4) any other amount necessary to compensate Landlord for all the
detriment proximately caused by Tenant's failure to perform its obligations
under this Lease or which in the ordinary course would be likely to result
therefrom, including, without limitation, (A) any costs or expenses incurred by
Landlord (1) in retaking possession of the Premises; (2) in maintaining,
repairing, preserving, restoring, replacing, cleaning, altering, remodeling or
rehabilitating the Premises or
33
any affected portions of the Building or the Project, including such actions
undertaken in connection with the reletting or attempted reletting of the
Premises to a new tenant or tenants; (3) for leasing commissions, advertising
costs and other expenses of reletting the Premises; or (4) in carrying the
Premises, including taxes, insurance premiums, utilities and security
precautions; (B) any unearned brokerage commissions paid in connection with
this Lease; (C) reimbursement of any previously waived or abated Base Rent or
Additional Rent or any free rent or reduced rental rate granted hereunder;
and (D) any concession made or paid by Landlord to the benefit of Tenant in
consideration of this Lease including, but not limited to, any moving
allowances, contributions, payments or loans by Landlord for tenant
improvements or build-out allowances (including without limitation, any
unamortized portion of the Tenant Improvement Allowance (such Tenant
Improvement Allowance to be amortized over the Term in the manner reasonably
determined by Landlord), if any), and or assumptions by Landlord of any of
Tenant's previous lease obligations; plus
(5) such reasonable attorneys' fees incurred by Landlord as a result
of a Default, and costs in the event suit is filed by Landlord to enforce such
remedy; and plus
(6) 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 law.
As used in subparagraphs (1) and (2) above, the "WORTH AT THE TIME OF AWARD" is
computed by allowing interest at an annual rate equal to twelve percent (12%)
per annum or the maximum rate permitted by law, whichever is less. As used in
subparagraph (3) above, the "WORTH AT THE TIME OF AWARD" is computed by
discounting such amount at the discount rate of the Federal Reserve Bank of San
Francisco at the time of award, plus one percent (1%). Tenant waives redemption
or relief from forfeiture under California Code of Civil Procedure Sections 1174
and 1179, or under any other pertinent present or future Law, in the event
Tenant is evicted or Landlord takes possession of the Premises by reason of any
Default of Tenant hereunder.
(b) CONTINUATION OF LEASE. In the event of any Default by Tenant, then in
addition to any other remedies available to Landlord at law or in equity and
under this Lease, Landlord shall have the remedy described in California Civil
Code Section 1951.4 (Landlord may continue this Lease in effect after Tenant's
Default and abandonment and recover Rent as it becomes due, provided Tenant has
the right to sublet or assign, subject only to reasonable limitations). In
addition, Landlord shall not be liable in any way whatsoever for its failure or
refusal to relet the Premises. For purposes of this Paragraph 25(b), the
following acts by Landlord will not constitute the termination of Tenant's right
to possession of the Premises:
(1) Acts of maintenance or preservation or efforts to relet the
Premises, including, but not limited to, alterations, remodeling,
redecorating, repairs,
34
replacements and/or painting as Landlord shall consider advisable for the
purpose of reletting the Premises or any part thereof; or
(2) The appointment of a receiver upon the initiative of Landlord
to protect Landlord's interest under this Lease or in the Premises.
(c) RE-ENTRY. In the event of any Default by Tenant, Landlord shall also
have the right, with or without terminating this Lease, in compliance with
applicable law, to re-enter the Premises and remove all persons and property
from the Premises; such property may be removed and stored in a public warehouse
or elsewhere at the cost of and for the account of Tenant.
(d) RELETTING. In the event of the abandonment of the Premises by Tenant
or in the event that Landlord shall elect to re-enter as provided in
Paragraph 25(c) or shall take possession of the Premises pursuant to legal
proceeding or pursuant to any notice provided by law, then if Landlord does not
elect to terminate this Lease as provided in ▇▇▇▇▇▇▇▇▇ ▇▇(▇), ▇▇▇▇▇▇▇▇ may from
time to time, without terminating this Lease, relet the Premises or any part
thereof for such term or terms and at such rental or rentals and upon such other
terms and conditions as Landlord in its sole discretion may deem advisable with
the right to make alterations and repairs to the Premises in Landlord's sole
discretion. In the event that Landlord shall elect to so relet, then rentals
received by Landlord from such reletting shall be applied in the following
order: (1) to reasonable attorneys' fees incurred by Landlord as a result of a
Default and costs in the event suit is filed by Landlord to enforce such
remedies; (2) to the payment of any indebtedness other than Rent due hereunder
from Tenant to Landlord; (3) to the payment of any costs of such reletting;
(4) to the payment of the costs of any alterations and repairs to the Premises;
(5) to the payment of Rent due and unpaid hereunder; and (6) the residue, if
any, shall be held by Landlord and applied in payment of future Rent and other
sums payable by Tenant hereunder as the same may become due and payable
hereunder. Should that portion of such rentals received from such reletting
during any month, which is applied to the payment of Rent hereunder, be less
than the Rent payable during the month by Tenant hereunder, then Tenant shall
pay such deficiency to Landlord. Such deficiency shall be calculated and paid
monthly. Tenant shall also pay to Landlord, as soon as ascertained, any costs
and expenses incurred by Landlord in such reletting or in making such
alterations and repairs not covered by the rentals received from such reletting.
(e) TERMINATION. No re-entry or taking of possession of the Premises by
Landlord pursuant to this Paragraph 25 shall be construed as an election to
terminate this Lease unless a written notice of such intention is given to
Tenant or unless the termination thereof is decreed by a court of competent
jurisdiction. Notwithstanding any reletting without termination by Landlord
because of any Default by Tenant, Landlord may at any time after such reletting
elect to terminate this Lease for any such Default.
35
(f) CUMULATIVE REMEDIES. The remedies herein provided are not exclusive
and Landlord shall have any and all other remedies provided herein or by law or
in equity.
(g) NO SURRENDER. No act or conduct of Landlord, whether consisting of
the acceptance of the keys to the Premises, or otherwise, shall be deemed to be
or constitute an acceptance of the surrender of the Premises by Tenant prior to
the expiration of the Term, and such acceptance by Landlord of surrender by
Tenant shall only flow from and must be evidenced by a written acknowledgment of
acceptance of surrender signed by Landlord. The surrender of this Lease by
Tenant, voluntarily or otherwise, shall not work a merger unless Landlord elects
in writing that such merger take place, but shall operate as an assignment to
Landlord of any and all existing subleases, or Landlord may, at its option,
elect in writing to treat such surrender as a merger terminating Tenant's estate
under this Lease, and thereupon Landlord may terminate any or all such subleases
by notifying the sublessee of its election so to do within five (5) days after
such surrender.
26. LANDLORD'S RIGHT TO PERFORM TENANT'S OBLIGATIONS
(a) Without limiting the rights and remedies of Landlord contained in
Paragraph 25 above, if Tenant shall be in Default in the performance of any of
the terms, provisions, covenants or conditions to be performed or complied with
by Tenant pursuant to this Lease, then Landlord may at Landlord's option,
without any obligation to do so, and without notice to Tenant perform any such
term, provision, covenant, or condition, or make any such payment and Landlord
by reason of so doing shall not be liable or responsible for any loss or damage
thereby sustained by Tenant or anyone holding under or through Tenant or any of
Tenant's Agents.
(b) Without limiting the rights of Landlord under Paragraph 26(a) above,
Landlord shall have the right at Landlord's option, without any obligation to do
so, to perform any of Tenant's covenants or obligations under this Lease without
notice to Tenant in the case of an emergency, as determined by Landlord in its
sole and absolute judgment, or if Landlord otherwise reasonably determines that
such performance is necessary or desirable for the proper management and
operation of the Building or the Project or for the preservation of the rights
and interests or safety of other tenants of the Building or the Project.
(c) If Landlord performs any of Tenant's obligations hereunder in
accordance with this Paragraph 26, the full amount of the cost and expense
incurred or the payment so made or the amount of the loss so sustained shall
immediately be owing by Tenant to Landlord, and Tenant shall promptly pay to
Landlord upon demand, as Additional Rent, the full amount thereof with interest
thereon from the date of payment by Landlord at the lower of (1) ten percent
(10%) per annum, or (2) the highest rate permitted by applicable law.
36
27. ATTORNEY'S FEES
(a) If either party hereto fails to perform any of its obligations under
this Lease or if any dispute arises between the parties hereto concerning the
meaning or interpretation of any provision of this Lease, then the defaulting
party or the party not prevailing in such dispute, as the case may be, shall pay
any and all costs and expenses incurred by the other party on account of such
default and/or in enforcing or establishing its rights hereunder, including,
without limitation, court costs and reasonable attorneys' fees and
disbursements. Any such attorneys' fees and other expenses incurred by either
party in enforcing a judgment in its favor under this Lease shall be recoverable
separately from and in addition to any other amount included in such judgment,
and such attorneys' fees obligation is intended to be severable from the other
provisions of this Lease and to survive and not be merged into any such
judgment.
(b) Without limiting the generality of Paragraph 27(a) above, if Landlord
utilizes the services of an attorney for the purpose of collecting any Rent due
and unpaid by Tenant or in connection with any other breach of this Lease by
Tenant, Tenant agrees to pay Landlord actual attorneys' fees as determined by
Landlord for such services, regardless of the fact that no legal action may be
commenced or filed by Landlord.
28. TAXES
Tenant shall be liable for and shall pay, prior to delinquency, all taxes
levied against Tenant's Property. If any Alteration installed by Tenant or any
of Tenant's Property is assessed and taxed with the Project or Building, Tenant
shall pay such taxes to Landlord within ten (10) days after delivery to Tenant
of a statement therefor.
29. EFFECT OF CONVEYANCE
The term "LANDLORD" as used in this Lease means, from time to time, the
then current owner of the Building or the Project containing the Premises, so
that, in the event of any sale of the Building or the Project and the
transferee's written assumption of the transferor's obligations hereunder,
Landlord shall be and hereby is entirely freed and relieved of all covenants and
obligations of Landlord hereunder.
30. TENANT'S ESTOPPEL CERTIFICATE
From time to time, upon written request of Landlord, Tenant shall execute,
acknowledge and deliver to Landlord or its designee, a written certificate
stating (a) the date this Lease was executed, the Commencement Date of the Term
and the date the Term expires; (b) the date Tenant entered into occupancy of the
Premises; (c) the amount of Rent and the date to which such Rent has been paid;
(d) that this
37
Lease is in full force and effect and has not been assigned, modified,
supplemented or amended in any way (or, if assigned, modified, supplemented
or amended, specifying the date and terms of any agreement so affecting this
Lease); (e) that this Lease represents the entire agreement between the
parties with respect to Tenant's right to use and occupy the Premises (or
specifying such other agreements, if any); (f) that all obligations under
this Lease to be performed by Landlord as of the date of such certificate
have been satisfied (or specifying those as to which Tenant claims that
Landlord has yet to perform); (g) that all required contributions by Landlord
to Tenant on account of Tenant's improvements have been received (or stating
exceptions thereto); (h) that on such date there exist no defenses or offsets
that Tenant has against the enforcement of this Lease by Landlord (or stating
exceptions thereto); (i) that no Rent or other sum payable by Tenant
hereunder has been paid more than one (1) month in advance (or stating
exceptions thereto); (j) that security has been deposited with Landlord,
stating the original amount thereof and any increases thereto; and (k) any
other matters evidencing the status of this Lease that may reasonably be
required either by a lender making a loan to Landlord to be secured by a deed
of trust covering the Building or the Project or by a purchaser of the
Building or the Project. Any such certificate delivered pursuant to this
Paragraph 30 may be relied upon by a prospective purchaser of Landlord's
interest or a mortgagee of Landlord's interest or assignee of any mortgage
upon Landlord's interest in the Premises. If Tenant shall fail to provide
such certificate within fifteen (15) days of receipt by Tenant of a written
request by Landlord as herein provided, such failure shall, at Landlord's
election, constitute a Default under this Lease, and Tenant shall be deemed
to have given such certificate as above provided without modification and
shall be deemed to have admitted the accuracy of any information supplied by
Landlord to a prospective purchaser or mortgagee.
31. SUBORDINATION
Landlord shall have the right to cause this Lease to be and remain
subject and subordinate to any and all mortgages, deeds of trust and ground
leases, if any ("ENCUMBRANCES") that are now or may hereafter be executed
covering the Premises, or any renewals, modifications, consolidations,
replacements or extensions thereof, for the full amount of all advances made
or to be made thereunder and without regard to the time or character of such
advances, together with interest thereon and subject to all the terms and
provisions thereof; provided only, that in the event of termination of any
such ground lease or upon the foreclosure of any such mortgage or deed of
trust, so long as Tenant is not in default, the holder thereof ("HOLDER")
shall agree in writing, in a recordable form reasonably acceptable to Tenant,
to recognize Tenant's rights under this Lease as long as Tenant shall pay the
Rent and observe and perform all the provisions of this Lease to be observed
and performed by Tenant. Within fifteen (15) days after Landlord's written
request, Tenant shall execute, acknowledge and deliver any and all reasonable
documents required by Landlord or the Holder to effectuate such
subordination. If Tenant fails to do so, such failure shall constitute a
Default by Tenant under this Lease. Notwithstanding
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anything to the contrary set forth in this Paragraph 31, Tenant hereby attorns
and agrees to attorn to any person or entity purchasing or otherwise acquiring
the Premises at any sale or other proceeding or pursuant to the exercise of any
other rights, powers or remedies under such Encumbrance. Landlord hereby
represents to Tenant that there are no existing Encumbrances affecting the
Building as of the date of this Lease.
32. ENVIRONMENTAL COVENANTS
(a) Prior to executing this Lease, Tenant has completed, executed and
delivered to Landlord a Hazardous Materials Disclosure Certificate ("INITIAL
DISCLOSURE CERTIFICATE"), a fully completed copy of which is attached hereto as
EXHIBIT F and incorporated herein by this reference. Tenant covenants,
represents and warrants to Landlord that the information on the Initial
Disclosure Certificate or any Updated Disclosure Certificate (as hereinafter
defined), is true and correct and accurately describes the Hazardous Materials
which will be manufactured, treated, used or stored on or about the Premises by
Tenant or Tenant's Agents. Tenant shall, on each anniversary of the
Commencement Date and at such other times as Tenant desires to manufacture,
treat, use or store on or about the Premises new or additional Hazardous
Materials which were not listed on the Initial Disclosure Certificate, complete,
execute and deliver to Landlord an updated Disclosure Certificate (each, an
"UPDATED DISCLOSURE CERTIFICATE") describing Tenant's then current and proposed
future uses of Hazardous Materials on or about the Premises, which Updated
Disclosure Certificates shall be in the same format as that which is set forth
in EXHIBIT F or in such updated format as Landlord may require from time to
time. Tenant shall deliver an Updated Disclosure Certificate to Landlord not
less than thirty (30) days prior to the date Tenant intends to commence the
manufacture, treatment, use or storage of new or additional Hazardous Materials
on or about the Premises, and Landlord shall have the right to approve or
disapprove such new or additional Hazardous Materials in its sole and absolute
discretion. Tenant shall make no use of Hazardous Materials on or about the
Premises except as described in the Initial Disclosure Certificate or in any
Updated Disclosure Certificate, and except for reasonable quantities of
janitorial and cleaning products and office supplies used by tenants of premises
comparable to the Premises (collectively "PERMITTED MATERIALS") (and for which
no Disclosure Certificate shall be required).
(b) As used in this Lease, the term "HAZARDOUS MATERIALS" shall mean and
include any substance that is or contains (1) any "hazardous substance" as now
or hereafter defined in Section 101(14) of the Comprehensive Environmental
Response, Compensation, and Liability Act of 1980, as amended ("CERCLA")
(42 U.S.C. Section 9601 ET SEQ.) or any regulations promulgated under CERCLA;
(2) any "hazardous waste" as now or hereafter defined in the Resource
Conservation and Recovery Act, as amended ("RCRA") (42 U.S.C. Section 6901 ET
SEQ.) or any regulations promulgated under RCRA; (3) any substance now or
hereafter regulated by the Toxic Substances Control Act, as amended ("TSCA")
(15 U.S.C. Section 2601 ET SEQ.) or any regulations promulgated under TSCA;
(4) petroleum, petroleum by-products, gasoline, diesel
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fuel, or other petroleum hydrocarbons; (5) asbestos and asbestos-containing
material, in any form, whether friable or non-friable; (6) polychlorinated
biphenyls; (7) lead and lead-containing materials; or (8) any additional
substance, material or waste (A) the presence of which on or about the
Premises (i) requires reporting, investigation or remediation under any
Environmental Laws (as hereinafter defined), (ii) causes or threatens to
cause a nuisance on the Premises or any adjacent area or property or poses or
threatens to pose a hazard to the health or safety of persons on the Premises
or any adjacent area or property, or (iii) which, if it emanated or migrated
from the Premises, could constitute a trespass, or (B) which is now or is
hereafter classified or considered to be hazardous or toxic under any
Environmental Laws.
(c) As used in this Lease, the term "ENVIRONMENTAL LAWS" shall mean and
include (1) CERCLA, RCRA and TSCA; and (2) any other federal, state or local
laws, ordinances, statutes, codes, rules, regulations, orders or decrees now or
hereinafter in effect relating to (A) pollution, (B) the protection or
regulation of human health, natural resources or the environment, (C) the
treatment, storage or disposal of Hazardous Materials, or (D) the emission,
discharge, release or threatened release of Hazardous Materials into the
environment.
(d) Tenant agrees that during its use and occupancy of the Premises it
will (1) not (A) permit Hazardous Materials to be present on or about the
Premises except for Permitted Materials used and stored in full compliance with
all Environmental Laws or (B) release, discharge or dispose of any Hazardous
Materials on, in, at, under, or emanating from, the Premises, the Building or
the Project, except for Permitted Materials disposed of in full compliance with
all Environmental Laws; (2) comply with all Environmental Laws relating to the
Premises and the use of Hazardous Materials on or about the Premises and not
engage in or permit Tenant's Agents to engage in any activity at the Premises in
violation of any Environmental Laws; and (3) immediately notify Landlord of
(A) any inquiry, test, investigation or enforcement proceeding by any
governmental agency or authority against Tenant, Landlord or the Premises,
Building or Project relating to any Hazardous Materials or under any
Environmental Laws or (B) the occurrence of any event or existence of any
condition that would cause a breach of any of the covenants set forth in this
Paragraph 32.
(e) If Tenant's use of Hazardous Materials on or about the Premises
results in a release, discharge or disposal of Hazardous Materials on, in, at,
under, or emanating from, the Premises, the Building or the Project, Tenant
agrees to investigate, clean up, remove or remediate such Hazardous Materials in
full compliance with (1) the requirements of (A) all Environmental Laws and
(B) any governmental agency or authority responsible for the enforcement of any
Environmental Laws; and (2) any additional requirements of Landlord that are
reasonably necessary to protect the value of the Premises, the Building or the
Project.
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(f) Upon reasonable notice to Tenant, Landlord may inspect the Premises
and surrounding areas during all reasonable times for the purpose of determining
whether there exists on or about the Premises any Hazardous Material or other
condition or activity that is in violation of the requirements of this
Paragraph 32 or of any Environmental Laws. Such inspections may include, but
are not limited to, entering the Premises or adjacent property with drill rigs
or other machinery for the purpose of obtaining laboratory samples. Landlord
shall not be limited in the number of such inspections during the Term of this
Lease. In the event (1) such inspections reveal the presence of any such
Hazardous Material or other condition or activity in violation of the
requirements of this Paragraph 32 or of any Environmental Laws, or (2) Tenant or
its Agents contribute or knowingly consent to the presence of any Hazardous
Materials in, on, under, through or about the Premises, the Building or the
Project or exacerbate the condition of or the conditions caused by any Hazardous
Materials in, on, under, through or about the Premises, the Building or the
Project, Tenant shall reimburse Landlord for the cost of such inspections within
thirty (30) days of receipt of a written statement therefor. Tenant will supply
to Landlord such historical and operational information regarding Tenant's use
of the Premises as may be reasonably requested to facilitate any such inspection
and will make available for meetings appropriate personnel having knowledge of
such matters. In the event Tenant vacates the Premises prior to the Expiration
Date determined in accordance with Paragraph 3 above, then Tenant shall give
Landlord at least sixty (60) days prior notice of such vacation so that Landlord
will have an opportunity to perform an inspection prior to such vacation. The
right granted to Landlord herein to perform inspections shall not create a duty
on Landlord's part to inspect the Premises, or liability on the part of Landlord
for Tenant's use, storage, treatment or disposal of Hazardous Materials, it
being understood that Tenant shall be solely responsible for all liability in
connection therewith.
(g) Landlord shall have the right, but not the obligation, prior or
subsequent to a Default, without in any way limiting Landlord's other rights and
remedies under this Lease, to enter upon the Premises, or to take such other
actions as it deems necessary or advisable, to investigate, clean up, remove or
remediate any Hazardous Materials or contamination by Hazardous Materials
present on, in, at, under, or emanating from, the Premises, the Building or the
Project in violation of Tenant's obligations under this Paragraph 32 or under
any Environmental Laws. Notwithstanding any other provision of this Lease,
Landlord shall also have the right, at its election, in its own name or as
Tenant's agent, to negotiate, defend, approve and appeal, at Tenant's expense,
any action taken or order issued by any governmental agency or authority with
regard to any such Hazardous Materials or contamination by Hazardous Materials.
All costs and expenses paid or incurred by Landlord in the exercise of the
rights set forth in this Paragraph 32 shall be payable by Tenant upon demand.
(h) Tenant shall surrender the Premises to Landlord upon the expiration or
earlier termination of this Lease free of debris, waste or Hazardous Materials
placed
41
on, about or near the Premises by Tenant or Tenant's Agents, and in a
condition which complies with all Environmental Laws and any additional
requirements of Landlord that are reasonably necessary to protect the value
of the Premises, the Building or the Project, including, without limitation,
the obtaining of any closure permits or other governmental permits or
approvals related to Tenant's use of Hazardous Materials in or about the
Premises. If it is determined by Landlord that the condition of all or any
portion of the Premises, the Building, and/or the Project is not in
compliance with the provisions of this Lease with respect to Hazardous
Materials, including, without limitation, all Environmental Laws, at the
expiration or earlier termination of this Lease, then at Landlord's sole
option, Landlord may require Tenant to hold over possession of the Premises
until Tenant can surrender the Premises to Landlord in the condition in which
the Premises existed as of the Commencement Date and prior to the appearance
of such Hazardous Materials except for normal wear and tear, including,
without limitation, the conduct or performance of any closures as required by
any Environmental Laws. The burden of proof hereunder shall be upon Tenant.
For purposes hereof, the term "NORMAL WEAR AND TEAR" shall not include any
deterioration in the condition or diminution of the value of any portion of
the Premises, the Building, and/or the Project in any manner whatsoever
related to directly, or indirectly, Hazardous Materials. Any such holdover
by Tenant will be with Landlord's consent, will not be terminable by Tenant
in any event or circumstance and will otherwise be subject to the provisions
of Paragraph 35 of this Lease.
(i) Tenant agrees to indemnify and hold harmless Landlord from and against
any and all claims, losses (including, without limitation, loss in value of the
Premises, the Building or the Project, liabilities and expenses (including
attorney's fees)) sustained by Landlord attributable to (1) any Hazardous
Materials placed on or about the Premises, the Building or the Project by Tenant
or Tenant's Agents, or (2) Tenant's breach of any provision of this
Paragraph 32.
(j) Notwithstanding anything in this Paragraph 32 to the contrary, Tenant
shall not be responsible for the testing, investigation, clean-up or remediation
of, and shall not be required to indemnify Landlord against any claims, losses,
liabilities or expenses resulting from, any Hazardous Materials placed on or
about the Project by parties other than Tenant or Tenant's Agents, except to the
extent that the contamination caused by such Hazardous Materials has been
exacerbated by Tenant or Tenant's Agents or by Tenant's failure to perform its
obligations under this Paragraph 32.
(k) The provisions of this Paragraph 32 shall survive the expiration or
earlier termination of this Lease.
33. NOTICES
All notices and demands which are required or may be permitted to be given
to either party by the other hereunder shall be in writing and shall be sent by
United
42
States mail, postage prepaid, certified, or by personal delivery or overnight
courier, addressed to the addressee at Tenant's Address or Landlord's Address
as specified in the Basic Lease Information, or to such other place as either
party may from time to time designate in a notice to the other party given as
provided herein. Copies of all notices and demands given to Landlord shall
additionally be sent to Landlord's property manager at the address specified
in the Basic Lease Information or at such other address as Landlord may
specify in writing from time to time. Notice shall be deemed given upon
actual receipt (or attempted delivery if delivery is refused ), if personally
delivered, or one (1) business day following deposit with a reputable
overnight courier that provides a receipt, or on the third (3rd) day
following deposit in the United States mail in the manner described above.
34. WAIVER
The waiver of any breach of any term, covenant or condition of this Lease
shall not be deemed to be a waiver of such term, covenant or condition or of any
subsequent breach of the same or any other term, covenant or condition herein
contained. The subsequent acceptance of Rent by Landlord shall not be deemed to
be a waiver of any preceding breach by Tenant, other than the failure of Tenant
to pay the particular rental so accepted, regardless of Landlord's knowledge of
such preceding breach at the time of acceptance of such Rent. No delay or
omission in the exercise of any right or remedy in regard to any default shall
impair such a right or remedy or be construed as a waiver. Any waiver of any
default must be in writing and shall not be a waiver of any other default
concerning the same or any other provisions of this Lease.
35. HOLDING OVER
Any holding over after the expiration of the Term, without the express
written consent of Landlord, shall constitute a Default and, without limiting
Landlord's remedies provided in this Lease, such holding over shall be construed
to be a tenancy at sufferance, at a rental rate equal to one hundred fifty
percent (150%) of the greater of the fair market rental value for the Premises
as determined by Landlord or the Base Rent last due in this Lease, plus
Additional Rent, and shall otherwise be on the terms and conditions herein
specified, so far as applicable; provided, however, in no event shall any
renewal or expansion option or other similar right or option contained in this
Lease be deemed applicable to any such tenancy at sufferance. If the Premises
are not surrendered at the end of the Term or sooner termination of this Lease,
and in accordance with the provisions of Paragraphs 11 and 32(h), Tenant shall
indemnify, defend and hold Landlord harmless from and against any and all loss
or liability resulting from delay by Tenant in so surrendering the Premises
including, without limitation, any loss or liability resulting from any claim
against Landlord made by any succeeding tenant or prospective tenant founded on
or resulting from such delay and losses to Landlord due to lost opportunities to
lease any portion of the Premises to any such
43
succeeding tenant or prospective tenant, together with, in each case, actual
attorneys' fees and costs.
36. SUCCESSORS AND ASSIGNS
The terms, covenants and conditions of this Lease shall, subject to the
provisions as to assignment, apply to and bind the heirs, successors, executors,
administrators and assigns of all of the parties hereto. If Tenant shall
consist of more than one entity or person, the obligations of Tenant under this
Lease shall be joint and several.
37. TIME
Time is of the essence of this Lease and each and every term, condition and
provision herein.
38. BROKERS
Landlord and Tenant each represents and warrants to the other that neither
it nor its officers or agents nor anyone acting on its behalf has dealt with any
real estate broker except the Broker(s) specified in the Basic Lease Information
in the negotiating or making of this Lease, and each party agrees to indemnify
and hold harmless the other from any claim or claims, and costs and expenses,
including attorneys' fees, incurred by the indemnified party in conjunction with
any such claim or claims of any other broker or brokers to a commission in
connection with this Lease as a result of the actions of the indemnifying party.
39. LIMITATION OF LIABILITY
Tenant agrees that, in the event of any default or breach by Landlord with
respect to any of the terms of the Lease to be observed and performed by
Landlord (1) Tenant shall look solely to the then-current landlord's interest in
the Building for the satisfaction of Tenant's remedies for the collection of a
judgment (or other judicial process) requiring the payment of money by Landlord;
(2) no other property or assets of Landlord, its partners, shareholders,
officers, directors, employees, investment advisors, or any successor in
interest of any of them (collectively, the "LANDLORD PARTIES") shall be subject
to levy, execution or other enforcement procedure for the satisfaction of
Tenant's remedies; (3) no personal liability shall at any time be asserted or
enforceable against the Landlord Parties; and (4) no judgment will be taken
against the Landlord Parties. The provisions of this section shall apply only
to the Landlord and the parties herein described, and shall not be for the
benefit of any insurer nor any other third party.
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40. FINANCIAL STATEMENTS
Within ten (10) days after Landlord's request, Tenant shall deliver to
Landlord the then current financial statements of Tenant (including interim
periods following the end of the last fiscal year for which annual statements
are available), prepared or compiled by a certified public accountant, including
a balance sheet and profit and loss statement for the most recent prior year,
all prepared in accordance with generally accepted accounting principles
consistently applied.
41. RULES AND REGULATIONS
Tenant agrees to comply with such reasonable rules and regulations as
Landlord may adopt from time to time for the orderly and proper operation of the
Building and the Project. Such rules may include but shall not be limited to
the following: (a) restriction of employee parking to a limited, designated
area or areas; and (b) regulation of the removal, storage and disposal of
Tenant's refuse and other rubbish at the sole cost and expense of Tenant. The
then current rules and regulations shall be binding upon Tenant upon delivery of
a copy of them to Tenant. Landlord shall not be responsible to Tenant for the
failure of any other person to observe and abide by any of said rules and
regulations. Landlord's current rules and regulations are attached to this
Lease as EXHIBIT D.
42. MORTGAGEE PROTECTION
(a) MODIFICATIONS FOR LENDER. If, in connection with obtaining financing
for the Project or any portion thereof, Landlord's lender shall request
reasonable modifications to this Lease as a condition to such financing, Tenant
shall not unreasonably withhold, delay or defer its consent to such
modifications, provided such modifications do not adversely affect Tenant's
rights or increase Tenant's obligations under this Lease.
(b) RIGHTS TO CURE. Tenant agrees to give to any trust deed or mortgage
holder ("HOLDER"), by registered mail, at the same time as it is given to
Landlord, a copy of any notice of default given to Landlord, provided that prior
to such notice Tenant has been notified, in writing, (by way of actual receipt
of assignment of rents and leases, or otherwise) of the address of such Holder.
Tenant further agrees that if Landlord shall have failed to cure such default
within the time provided for in this Lease, then the Holder shall have an
additional twenty (20) days after expiration of such period, or after receipt of
such notice from Tenant (if such notice to the Holder is required by this
Paragraph 42(b)), whichever shall last occur within which to cure such default
or if such default cannot be cured within that time, then such additional time
as may be necessary if within such twenty (20) days, any Holder 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 this Lease shall not be
terminated.
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43. ENTIRE AGREEMENT
This Lease, including the Exhibits and any Addenda attached hereto, which
are hereby incorporated herein by this reference, contains the entire agreement
of the parties hereto, and no representations, inducements, promises or
agreements, oral or otherwise, between the parties, not embodied herein or
therein, shall be of any force and effect.
44. INTEREST
Any installment of Rent and any other sum due from Tenant under this Lease
which is not received by Landlord within ten (10) days from when the same is due
shall bear interest from the date such payment was originally due under this
Lease until paid at an annual rate equal to twelve percent (12%). Payment of
such interest shall not excuse or cure any Default by Tenant. In addition,
Tenant shall pay all costs and attorneys' fees incurred by Landlord in
collection of such amounts.
45. CONSTRUCTION
This Lease shall be construed and interpreted in accordance with the laws
of the State of California. The parties acknowledge and agree that no rule of
construction to the effect that any ambiguities are to be resolved against the
drafting party shall be employed in the interpretation of this Lease, including
the Exhibits and any Addenda attached hereto. All captions in this Lease are
for reference only and shall not be used in the interpretation of this Lease.
Whenever required by the context of this Lease, the singular shall include the
plural, the masculine shall include the feminine, and vice versa. If any
provision of this Lease shall be determined to be illegal or unenforceable, such
determination shall not affect any other provision of this Lease and all such
other provisions shall remain in full force and effect.
46. REPRESENTATIONS AND WARRANTIES OF TENANT
Tenant hereby makes the following representations and warranties, each of
which is material and being relied upon by Landlord, is true in all respects as
of the date of this Lease, and shall survive the expiration or termination of
the Lease.
(a) If Tenant is an entity, Tenant is duly organized, validly existing and
in good standing under the laws of the state of its organization and the persons
executing this Lease on behalf of Tenant have the full right and authority to
execute this Lease on behalf of Tenant and to bind Tenant without the consent or
approval of any other person or entity. Tenant has full power, capacity,
authority and legal right to execute and deliver this Lease and to perform all
of its obligations hereunder. This Lease is a legal, valid and binding
obligation of Tenant, enforceable in accordance with its terms.
46
(b) Tenant has not (1) made a general assignment for the benefit of
creditors, (2) filed any voluntary petition in bankruptcy or suffered the filing
of an involuntary petition by any creditors, (3) suffered the appointment of a
receiver to take possession of all or substantially all of its assets,
(4) suffered the attachment or other judicial seizure of all or substantially
all of its assets, (5) admitted in writing its inability to pay its debts as
they come due, or (6) made an offer of settlement, extension or composition to
its creditors generally.
47. SECURITY
(a) Tenant acknowledges and agrees that, while Landlord may engage
security personnel to patrol the Building or the Project, Landlord is not
providing any security services with respect to the Premises, the Building or
the Project and that Landlord shall not be liable to Tenant for, and Tenant
waives any claim against Landlord with respect to, any loss by theft or any
other damage suffered or incurred by Tenant in connection with any unauthorized
entry into the Premises or any other breach of security with respect to the
Premises, the Building or the Project.
(b) Tenant hereby agrees to the exercise by Landlord and Landlord's
Agents, within their sole discretion, of such security measures as, but not
limited to, the evacuation of the Premises, the Building or the Project for
cause, suspected cause or for drill purposes, the denial of any access to the
Premises, the Building or the Project and other similarly related actions that
it deems necessary to prevent any threat of property damage or bodily injury.
The exercise of such security measures by Landlord and Landlord's Agents, and
the resulting interruption of service and cessation of Tenant's business, if
any, shall not be deemed an eviction or disturbance of Tenant's use and
possession of the Premises, or any part thereof, or render Landlord or
Landlord's Agents liable to Tenant for any resulting damages or relieve Tenant
from Tenant's obligations under this Lease.
48. JURY TRIAL WAIVER
Landlord and Tenant each hereby waive any right to trial by jury with
respect to any action or proceeding (i) brought by Landlord, Tenant or any other
party, relating to (A) this Lease and/or any understandings or prior dealings
between the parties hereto, or (B) the Premises, the Building or the Project or
any part thereof, or (ii) to which Landlord is a party. Landlord and Tenant
each hereby agree that this Lease constitutes a written consent to waiver of
trial by jury pursuant to the provisions of California Code of Civil Procedure
Section 631, and Landlord and Tenant do each hereby constitute and appoint the
other party its true and lawful attorney-in-fact, which appointment is coupled
with an interest, and Landlord and Tenant do each hereby authorize and empower
the other party, in the name, place and stead of the first party, to file this
Lease with the clerk or judge of any court of competent jurisdiction as a
statutory written consent to waiver of trial by jury.
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49. OPTION TO RENEW
Tenant shall have one (1) option (the "RENEWAL OPTION") to extend the Term
for a period of five (5) years beyond the Expiration Date (the "RENEWAL TERM").
The Renewal Option is personal to Tenant and may not be exercised by any
sublessee or assignee, or by any other successor or assign of Tenant. The
Renewal Option shall be effective only if Tenant is not in Default under this
Lease, nor is any event then occurring and continuing which with the giving of
notice or the passage of time, or both, would constitute a Default hereunder,
either at the time of exercise of the Renewal Option or the time of commencement
of the Renewal Term. The Renewal Option must be exercised, if at all, by
written notice (the "ELECTION NOTICE") from Tenant to Landlord given not more
than twelve (12) months nor less than nine (9) months prior to the expiration of
the initial Term. Except as hereinafter provided in this Paragraph 49, any such
notice given by Tenant to Landlord shall be irrevocable. If Tenant fails to
exercise the Renewal Option in a timely manner as provided for above, the
Renewal Option shall be void. The Renewal Term shall be upon the same terms and
conditions as the initial Term, except that the annual Base Rent during the
Renewal Term shall be equal to the prevailing market rate for space in similarly
situated buildings in the vicinity of the Building comparable to the Premises in
location, size, condition, quality and type at the commencement of the Renewal
Term. As used herein, the term "prevailing market rate" shall mean the base
annual rental for such comparable space, taking into account any additional
rental and all other payments and escalations payable hereunder and by tenants
under leases of such comparable space. Landlord shall endeavor to notify Tenant
in writing (such notice being hereinafter referred to as the "RENEWAL RATE
NOTICE") of the prevailing market rate for the Renewal Term within thirty (30)
days after Landlord's receipt of the Election Notice. Tenant shall have
ten (10) days after receipt of the Renewal Rate Notice (the "RESPONSE PERIOD")
to advise Landlord whether or not Tenant agrees to pay the Base Rent specified
in the Renewal Rate Notice. If Tenant agrees to pay such Base Rent, then
Landlord and Tenant shall promptly enter into an amendment to this Lease
providing for the lease of the Premises by Tenant during the Renewal Term upon
the terms stated in the Renewal Rate Notice. If Tenant does not agree to pay
the Base Rent specified in the Renewal Rate Notice, Tenant shall have the right
to rescind its Election Notice in writing within the Response Period and neither
party shall have any further rights or obligations under this Paragraph 49. If
Tenant fails to provide Landlord with written notice of rescission prior to the
expiration of the Response Period, then Tenant shall be deemed to have agreed to
pay the Base Rent specified in the Renewal Rate Notice. No further renewal
option shall be available to Tenant at the end of the Renewal Term.
50. RIGHT OF FIRST OFFER
(a) Subject to the terms of this Paragraph 50, Tenant shall have a
recurring right of first offer (the "RIGHT OF FIRST OFFER") during the Term to
lease space that becomes available during such period in the building commonly
known as
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▇▇▇▇ ▇▇▇▇▇ ▇▇▇▇, ▇▇▇▇▇▇▇▇▇, ▇▇▇▇▇▇▇▇▇▇ (the "1150 BUILDING"). The Right of
First Offer is personal to Tenant and may not be exercised by any sublessee
or assignee, or by any other successor or assign of Tenant. The Right of
First Offer shall be effective only if Tenant is not in Default under this
Lease, nor is any event then occurring and continuing which with the giving
of notice or the passage of time, or both, would constitute a Default
hereunder, either at the time of exercise of the Right of First Offer or on
the applicable Expansion Commencement Date (as hereinafter defined).
(b) In the event that, during the Term, Landlord elects to market or offer
to the public for lease any space in the 1150 Building (each such space being
herein referred to as an "EXPANSION SPACE"), or Landlord receives a proposal to
lease any Expansion Space which Landlord desires to accept (a "PROPOSAL"),
Landlord shall notify Tenant in writing of the terms and conditions upon which
Landlord would be willing to lease such Expansion Space to Tenant, or shall
deliver to Tenant a complete copy of such Proposal or a summary of the terms
thereof (each such written notice being herein referred to as an "EXPANSION
SPACE AVAILABILITY NOTICE"). Tenant shall thereafter have the right to lease
such Expansion Space on the terms and conditions specified in the Expansion
Space Availability Notice by written notice (an "EXPANSION NOTICE") to Landlord
given not later than five (5) business days after Tenant's receipt of the
Expansion Space Availability Notice. Notwithstanding anything herein to the
contrary, Tenant's Right of First Offer shall not apply to and Tenant shall have
no right to Lease pursuant to this Paragraph 50 any space that Landlord elects
to lease to a then-current tenant of the Project.
(c) In the event Tenant fails to exercise its Right of First Offer with
respect to any Expansion Space in a timely manner as provided herein, such Right
of First Offer shall lapse and Landlord shall thereafter have the right to lease
such Expansion Space to any party or parties on terms deemed acceptable to
Landlord in its sole and absolute discretion. If Tenant validly exercises such
Right of First Offer, then (1) Tenant's lease of the applicable Expansion Space
shall commence on a date (an "EXPANSION COMMENCEMENT DATE") specified in the
Expansion Space Availability Notice, (2) the Expansion Space shall be leased to
Tenant upon the terms and conditions set forth in the applicable Expansion Space
Availability Notice, (3) Tenant's Proportionate Share of the Project shall be
increased to reflect the applicable Expansion Space, and (4) except to the
extent that the applicable Expansion Space Availability Notice provides a tenant
improvement allowance or a tenant improvement loan to Tenant, the Expansion
Space shall be delivered to Tenant in its "AS-IS" condition on the Expansion
Commencement Date, Tenant acknowledging and agreeing that Landlord shall have no
obligation to improve, remodel or otherwise alter such Expansion Space prior to
or after the Expansion Commencement Date, except to the extent expressly
provided in the Expansion Space Availability Notice.
(d) In the event Tenant exercises its Right of First Offer with respect to
any Expansion Space, then from and after the applicable Expansion Commencement
49
Date, the term "Premises," whenever used in this Lease, shall mean the original
Premises demised under this Lease, any Expansion Space previously leased by
Tenant and the Expansion Space then being leased.
Landlord and Tenant have executed and delivered this Lease as of the Lease
Date specified in the Basic Lease Information.
LANDLORD: TENANT:
AETNA LIFE INSURANCE COMPANY, AFFYMETRIX, INC.,
a Connecticut corporation a Delaware corporation
By: Allegis Realty Investors LLC
Its Investment Advisor and Agent By: /s/ ▇▇▇▇▇▇▇ P. A. ▇▇▇▇▇
-----------------------------
Print Name: ▇▇▇▇▇▇▇ P. A. ▇▇▇▇▇, Ph.D.
----------------------------
Its: President and CEO
-------------------------------
By: /s/ ▇▇▇▇▇▇▇ ▇▇▇▇▇▇▇▇ By:
---------------------------- ------------------------------
▇▇▇▇▇▇▇ ▇▇▇▇▇▇▇▇ Print Name:
Vice President ---------------------------
Its:
-------------------------------
Approved for signature
by AFFX Legal Dept. [Illegible]
-----------
[Illegible]
50
EXHIBIT A
DIAGRAM OF THE PREMISES
[Diagram]
EXHIBIT B
TENANT IMPROVEMENTS
This exhibit, entitled "Tenant Improvements", is and shall constitute
EXHIBIT B to the Lease Agreement, dated as of the Lease Date, by and between
Landlord and Tenant for the Premises. The terms and conditions of this
EXHIBIT B are hereby incorporated into and are made a part of the Lease.
Capitalized terms used, but not otherwise defined, in this EXHIBIT B have the
meanings ascribed to such terms in the Lease.
1. TENANT IMPROVEMENTS
Subject to the conditions set forth below, Landlord agrees to construct
certain Tenant Improvements in the Premises pursuant to the terms of this
EXHIBIT B.
2. DEFINITION
"TENANT IMPROVEMENTS" as used in the Lease and this EXHIBIT B shall include
only those improvements within the interior portions of the Premises which are
depicted on the Final Plans and Specifications (hereafter defined in
Paragraph 3) or described hereinbelow. "TENANT IMPROVEMENTS" shall specifically
not include any Alterations installed or constructed by Tenant, and any of
Tenant's Property.
The Tenant Improvements may include:
(a) Partitioning, doors, floor coverings, finishes, ceilings, wall
coverings and painting, millwork and similar items.
(b) Electrical wiring, lighting fixtures, outlets and switches, and other
electrical work.
(c) Duct work, terminal boxes, diffusers and accessories required for the
completion of the heating, ventilation and air conditioning systems serving the
Premises, including the cost of meter and key control for after-hour air
conditioning.
(d) Any additional Tenant requirements including, but not limited to odor
control, special heating, ventilation and air conditioning, noise or vibration
control or other special systems.
(e) All fire and life safety control systems such as fire walls,
sprinklers, halon, fire alarms, including piping, wiring and accessories
installed within the Building and serving the Premises.
(f) All plumbing, fixtures, pipes, and accessories to be installed within
the Building and serving the Premises.
B-1
3. PLANS AND SPECIFICATIONS
(a) Landlord shall retain an architect selected by Landlord in
consultation with Tenant ("ARCHITECT") for the preparation of preliminary and
final working architectural and engineering plans and specifications for the
Tenant Improvements ("FINAL PLANS AND SPECIFICATIONS") based upon the space
plans attached hereto as EXHIBIT B-1. Tenant shall cooperate diligently with
the Architect and shall furnish within ten (10) days after request therefor,
all information required by the Architect for completion of the Final Plans
and Specifications, and shall provide (in writing, if requested by Landlord),
not later than five (5) business days after request therefor, any approval or
disapproval of preliminary or Final Plans and Specifications which Tenant is
permitted to give under this EXHIBIT B. The Final Plans and Specifications
shall be subject to Landlord's approval, which approval shall not be
unreasonably withheld, conditioned or delayed. Landlord shall not be deemed
to have acted unreasonably if it withholds its approval of any plans,
specifications, drawings or other details or of any Change Request (hereafter
defined in Paragraph 8 below) because, in Landlord's reasonable opinion, the
work as described in any such item, or any Change Request, as the case may
be: (a) is likely to adversely affect the Systems, the structure of the
Building or the safety of the Building and/or its occupants; (b) impairs
Landlord's ability to furnish services to Tenant or other tenants in the
Building or the Project; (c) would increase the cost of operating the
Building or the Project; (d) would violate any Laws; (e) contains or uses
Hazardous Materials; (f) would adversely affect the appearance of the
Building or the Project or the marketability of the Premises to subsequent
tenants; (g) adversely affects another tenant's premises within the Project
or such other tenant's use and enjoyment of such premises; (h) is prohibited
by any Encumbrance or Private Restrictions; (i) is likely to be substantially
delayed because of unavailability or shortage of labor or materials necessary
to perform such work or the difficulties or unusual nature of such work; or
(j) is not, at a minimum in accordance with Landlord's building standards.
The foregoing reasons, however, shall not be the only reasons for which
Landlord may withhold its approval, whether or not such other reasons are
similar or dissimilar to the foregoing. Neither the approval by Landlord of
the Final Plans and Specifications or any other plans, specifications,
drawings or other items associated with the Tenant Improvements nor
Landlord's performance, supervision or monitoring of the Tenant Improvements
shall constitute any warranty or covenant by Landlord to Tenant of the
adequacy of the design for Tenant's intended use of the Premises. Except as
otherwise set forth in this Lease, Tenant agrees to, and does hereby, assume
full and complete responsibility to ensure that the Tenant Improvements and
the Final Plans and Specifications are adequate to fully meet the needs and
requirements of Tenant's intended operations of its business within the
Premises and Tenant's use of the Premises. Landlord and Tenant shall
indicate their approval of the Final Plans and Specifications by initialing
them and attaching them to the Lease as EXHIBIT B-2. Upon completion of the
Final Plans and Specifications and approval thereof by Landlord and Tenant,
Landlord will obtain subcontractor trade bids and furnish a cost breakdown to
Tenant. In the event the estimated Tenant Improvements Cost (hereafter
defined in
B-2
Paragraph 6), based on such bids and the reasonably anticipated costs of
other items constituting the Tenant Improvements Cost, exceeds the sum of the
Tenant Improvements Allowance (hereafter defined in Paragraph 5) plus any
amounts which Tenant desires to pay as an Excess Tenant Improvements Cost
(hereafter defined in Paragraph 7) ("TENANT'S T.I. BUDGET"), at Tenant's
request, the Final Plans and Specifications may be revised, at Tenant's cost
and expense. Any such revisions shall be subject to Landlord's approval in
accordance with this Paragraph 3, and the amended Final Plans and
Specifications, as approved by Landlord and Tenant, shall thereafter be
deemed to be the Final Plans and Specifications for the Tenant Improvements.
The amended Final Plans and Specifications shall be approved by Tenant (in
writing, if requested by Landlord) not later than five (5) days after
Landlord's request therefor. Landlord shall thereafter submit such amended
Final Plans and Specifications to its contractor and subcontractor for
re-bidding, and shall furnish a cost breakdown to Tenant. If the estimated
Tenant Improvements Cost, as determined by the bids based on the amended
Final Plans and Specifications and the reasonably anticipated costs of other
items constituting the Tenant Improvements Cost, result in an Excess Tenant
Improvements Cost, then Tenant shall pay such Excess Tenant Improvements Cost
as and when required by Paragraph 7. Tenant's failure to approve or
disapprove any matters which Tenant shall be entitled to approve or
disapprove pursuant to this Paragraph 3 shall be conclusively deemed to be
approval of same by Tenant.
(b) At the time of obtaining Landlord's approval of the Final Plans and
Specifications, Tenant shall have the right to request that Landlord inform
Tenant whether all or any portion of the Tenant Improvements may remain in the
Premises, the Building or the Project following, or must be removed from the
Premises, the Building or the Project prior to, the expiration or sooner
termination of this Lease. Any Tenant Improvements that Landlord requires to be
so removed shall be referred to herein as the "NON-PERMANENT TENANT
IMPROVEMENTS." In the event Tenant fails to make the request on Landlord
contemplated under this Paragraph 3(b), or if for any reason whatsoever Landlord
does not specifically advise Tenant in writing that any Tenant Improvements may
remain following the expiration or sooner termination of the Lease, then such
Tenant Improvements shall be deemed to be Non-Permanent Tenant Improvements for
all purposes of this Lease.
4. LANDLORD TO CONSTRUCT IMPROVEMENTS
When the Final Plans and Specifications (as amended, if required by
Paragraph 3 above) have been approved by Landlord and Tenant, Landlord shall
submit such Final Plans and Specifications to all governmental authorities
having rights of approval over the Tenant Improvement work and shall apply for
all governmental approvals and building permits. Subject to satisfaction of all
conditions precedent and subsequent to its obligations under this EXHIBIT B, and
further subject to the provisions of ▇▇▇▇▇▇▇▇▇ ▇, ▇▇▇▇▇▇▇▇ shall thereafter
direct a contractor selected by Landlord in consultation with Tenant (the
"CONTRACTOR") to commence and proceed to complete construction of the Tenant
Improvements.
B-3
5. TENANT IMPROVEMENTS ALLOWANCE
Landlord shall provide an allowance for the planning and construction of
the Tenant Improvements in the amount specified in the Basic Lease Information
("TENANT IMPROVEMENTS ALLOWANCE"). The Tenant Improvements Allowance shall be
the maximum contribution by Landlord for the Tenant Improvements Cost. Should
the actual cost of planning and constructing those Tenant Improvements depicted
on the Final Plans and Specifications be less than the Tenant Improvements
Allowance, the Tenant Improvements Allowance shall be reduced to an amount equal
to said actual cost.
6. TENANT IMPROVEMENTS COST
The Tenant Improvements Cost ("TENANT IMPROVEMENTS COST") shall include all
costs and expenses associated with the design, preparation, approval and
construction of the Tenant Improvements, including, but not limited, to the
following:
(a) All costs of preliminary and final architectural and engineering plans
and specifications for the Tenant Improvements, and engineering costs associated
with completion of the State of California energy utilization calculations under
Title 24 legislation;
(b) All costs of obtaining building permits and other necessary
authorizations and approvals from local governmental authorities (the
"PERMITS");
(c) All costs of interior design and finish schedule plans and
specifications including as-built drawings;
(d) All direct and indirect costs of procuring, constructing and
installing the Tenant Improvements in the Premises, including, but not limited
to, (i) the construction fee for overhead and profit and the cost of all on-site
supervisory and administrative staff, office, equipment and temporary services
rendered by the Contractor in connection with construction of the Tenant
Improvements, (ii) the cost of all labor (including overtime) and materials
constituting the Tenant Improvements, and (iii) all costs incurred in complying
with any Laws (including, without limitation, the ADA) required to be complied
with as a condition to or in connection with the issuance of Permits or the
construction and installation of the Tenant Improvements;
(e) All fees payable to the Architect, general contractor, subcontractors
and Landlord's engineering firm if they are required by Tenant and/or any
governmental authorities to redesign any portion of the Tenant Improvements
following Tenant's approval of the Final Plans and Specifications;
(f) All construction and project management fees payable by Landlord to
Landlord's property management company or any other individual or entity;
B-4
provided, however, that such fees shall not exceed five percent (5%) of the
Tenant Improvements Cost (excluding such fees); and
(g) Utility connection fees.
In no event shall the Tenant Improvements Cost include any costs of
procuring, constructing or installing in the Premises any of Tenant's Property.
7. EXCESS TENANT IMPROVEMENTS COST
If the Tenant Improvements Cost is more than the Tenant Improvements
Allowance, then the difference between the Tenant Improvements Cost and the
Tenant Improvements Allowance ("EXCESS TENANT IMPROVEMENTS COST") shall be paid
by Tenant to Landlord in cash, within ten (10) days of delivery of statements,
supported by invoices or other reasonably satisfactory evidence, from Landlord
to Tenant therefor. If construction of the Tenant Improvements will result in
an Excess Tenant Improvements Cost, Landlord shall not be obligated to commence
or continue construction of the Tenant Improvements if payment of the Excess
Tenant Improvements Costs by Tenant is not received within ten (10) days after
delivery by Landlord to Tenant of a statement therefor; provided, however, that
Landlord may, at its option, commence or continue construction of the Tenant
Improvements, in which event Tenant shall pay the Excess Tenant Improvements
Cost within ten (10) days after delivery by Landlord to Tenant of the statement
therefor. If Landlord so elects to commence construction of the Tenant
Improvements or has already commenced construction of the Tenant Improvements
when there occurs an Excess Tenant Improvements Cost, then Landlord shall be
entitled to suspend or terminate construction of the Tenant Improvements if
payment by Tenant to Landlord of the Excess Tenant Improvement Costs has not
been received within ten (10) days after delivery by Landlord to Tenant of a
statement therefor.
8. CHANGE REQUEST
When the Final Plans and Specifications have been approved by Landlord and
Tenant, there shall be no changes without Landlord's prior written consent,
except for (a) necessary on-site installation variations or minor changes
necessary to comply with building codes and other governmental regulations;
(b) revisions, if requested by Tenant, to adjust the estimated Tenant
Improvements Cost to Tenant's T.I. Budget therefor, as permitted by Paragraph 3
above; and (c) changes approved in writing by both parties. Any costs related
to such governmentally required or requested and approved changes shall be added
to the Tenant Improvements Cost and, to the extent such cost results in Excess
Tenant Improvements Cost, shall be paid for by Tenant as and with any Excess
Tenant Improvements Cost as set forth in Paragraph 7. The billing for such
additional costs to Tenant shall be accompanied by evidence of the amounts
billed as is customarily used in the business. Costs related to changes shall
include, without limitation, any architectural or design fees,
B-5
construction management fees and Landlord's general contractor's price for
effecting the change.
9. TERMINATION
If the Lease is terminated prior to completion of the Tenant Improvements
for any reason due to the Default of Tenant under the Lease, in addition to any
other damages available to Landlord, Tenant shall pay to Landlord, within five
(5) days of receipt of a statement therefor, all costs incurred by Landlord
through the date of termination in connection with the Tenant Improvements.
Landlord shall have the right to terminate the Lease, upon written notice to
Tenant, if Landlord is unable to obtain a building permit for the Tenant
Improvements within one hundred twenty (120) days from the date the Lease is
mutually executed.
10. INTEREST
Any payments required to be made by Tenant hereunder which are not paid
when due shall bear interest at the rate of twelve percent (12%) per annum from
the due date therefor until paid.
11. DISCLAIMER
Landlord shall have no liability to Tenant in the event construction of the
Tenant Improvements is delayed or prevented due to any cause beyond Landlord's
reasonable control. If Tenant is entitled or permitted to enter the Premises
prior to completion of the Tenant Improvements, Landlord shall not be liable to
Tenant or Tenant's Agents for any loss or damage to property, or injury to
person, arising from or related to construction of the Tenant Improvements.
Tenant shall take all reasonable precautions to protect against such loss,
damage or injury during construction of the Tenant Improvements, and shall not
interfere with the conduct of the Tenant Improvement work. Tenant shall
cooperate with all reasonable directives of Landlord and Landlord's contractor
in order to minimize any disruption or delay in completion of the Tenant
Improvements work.
12. LEASE PROVISIONS; CONFLICT
The terms and provisions of the Lease, insofar as they are applicable, in
whole or in part, to this EXHIBIT B, are hereby incorporated herein by
reference. In the event of any conflict between the terms of the Lease and this
EXHIBIT B, the terms of this EXHIBIT B shall prevail. Any amounts payable by
Tenant to Landlord hereunder shall be deemed to be Additional Rent under the
Lease and, upon any default in the payment of same, Landlord shall have all
rights and remedies available to it as provided for in the Lease.
B-6
EXHIBIT B-1
[PRELIMINARY SPACE PLANS]
EXHIBIT B-2
FINAL PLANS AND SPECIFICATIONS
Reference is hereby made to that certain Lease Agreement dated July 30,
1999 by and between AETNA LIFE INSURANCE COMPANY, a Connecticut corporation, as
landlord ("LANDLORD"), and AFFYMETRIX, INC., a Delaware corporation, as tenant
("TENANT"), ("LEASE AGREEMENT").
The Final Plans and Specifications (as defined in EXHIBIT B to the Lease
Agreement) consists of the following described drawings, specifications and
other documents:
TITLE OF DRAWING, SPECIFICATION OR OTHER DOCUMENT DATE
The Final Plans and Specifications have been initialed by both Landlord and
Tenant and are on file with Landlord.
INITIALS: LANDLORD _______ TENANT _______
EXHIBIT C
COMMENCEMENT AND EXPIRATION DATE MEMORANDUM
LANDLORD: AETNA LIFE INSURANCE COMPANY
TENANT: AFFYMETRIX, INC.
LEASE DATE: July 30, 1999
PREMISES: Located at ▇▇▇▇ ▇▇▇▇▇ ▇▇▇▇, ▇▇▇▇▇▇▇▇▇, ▇▇▇▇▇▇▇▇▇▇
Tenant hereby accepts the Premises as being in the condition required under
the Lease, with all Tenant Improvements completed (except for minor punchlist
items which Landlord agrees to complete as set forth in the Lease).
The Commencement Date of the Lease is hereby established as ___________,
199__ and the Expiration Date is______________, _____.
TENANT: AFFYMETRIX, INC.,
a Delaware corporation
By:________________________________
Print Name: ___________________________
Its: ________________________________
Approved and Agreed:
LANDLORD:
AETNA LIFE INSURANCE COMPANY,
a Connecticut corporation
By: Allegis Realty Investors LLC
Its Investment Advisor and Agent
By:________________________________
▇▇▇▇▇▇▇ ▇▇▇▇▇▇▇▇
Vice President
C-1
EXHIBIT D
RULES AND REGULATIONS
This exhibit, entitled "Rules and Regulations," is and shall constitute
EXHIBIT D to the Lease Agreement, dated as of the Lease Date, by and between
Landlord and Tenant for the Premises. The terms and conditions of this
EXHIBIT D are hereby incorporated into and are made a part of the Lease.
Capitalized terms used, but not otherwise defined, in this EXHIBIT D have the
meanings ascribed to such terms in the Lease.
1. Tenant shall not use any method of heating or air conditioning other
than that supplied by Landlord without the consent of Landlord.
2. All window coverings installed by Tenant and visible from the outside
of the building require the prior written approval of Landlord.
3. Tenant shall not use, keep or permit to be used or kept any foul or
noxious gas or substance or any flammable or combustible materials on or around
the Premises, except to the extent that Tenant is permitted to use the same
under the terms of Paragraph 32 of the Lease.
4. Tenant shall not alter any lock or install any new locks or bolts on
any door at the Premises without the prior consent of Landlord.
5. Tenant shall not make any duplicate keys without the prior consent of
Landlord.
6. Tenant shall park motor vehicles in parking areas designated by
Landlord except for loading and unloading. During those periods of loading and
unloading, Tenant shall not unreasonably interfere with traffic flow around the
Building or the Project and loading and unloading areas of other tenants.
Tenant shall not park motor vehicles in the Parking Areas overnight (except to
the extent that Tenant's employees are working in the Premises after-hours).
7. Tenant shall not disturb, solicit or canvas any tenant or other
occupant of the Building or Project and shall cooperate to prevent same.
8. No person shall go on the roof without Landlord's permission.
9. Business machines and mechanical equipment belonging to Tenant which
cause noise or vibration that may be transmitted to the structure of the
Building, to such a degree as to be objectionable to Landlord or other tenants,
shall be placed and maintained by Tenant, at Tenant's expense, on vibration
eliminators or in noise-dampening housing or other devices sufficient to
eliminate noise or vibration.
D-1
10. All goods, including material used to store goods, delivered to the
Premises of Tenant shall be immediately moved into the Premises and shall not be
left in parking or receiving areas overnight.
11. Tractor trailers which must be unhooked or parked with dolly wheels
beyond the concrete loading areas must use steel plates or wood blocks under the
dolly wheels to prevent damage to the asphalt paving surfaces. No parking or
storing of such trailers will be permitted in the auto parking areas of the
Project or on streets adjacent thereto.
12. Forklifts which operate on asphalt paving areas shall not have solid
rubber tires and shall only use tires that do not damage the asphalt.
13. Tenant is responsible for the storage and removal of all trash and
refuse. All such trash and refuse shall be contained in suitable receptacles
stored behind screened enclosures at locations approved by Landlord.
14. Tenant shall not store or permit the storage or placement of goods or
merchandise in or around the common areas surrounding the Premises. No displays
or sales of merchandise shall be allowed in the parking lots or other common
areas.
15. Tenant shall not permit any animals, including but not limited to, any
household pets, to be brought or kept in or about the Premises, the Building,
the Project or any of the common areas.
D-2
EXHIBIT E
SIGN CRITERIA
[DIAGRAM]
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35" x 54" x 7 1/2" DEEP DOUBLE-FACED PAINTED ALUMINUM MONUMENT SIGN ON
CONCRETE BASE - 3/4" x 3/4" REVEAL - CABINET AND BASE HAVE RADIUSED ENDS
CABINET BASE TO BE BRUSHED STAINLESS STEEL, HORIZONTAL GRAIN - MANUFACTURED BY
MELROSE
TENANT PLAQUES 22" X 42" X 1/4" ALUMINUM
TENANT PLAQUES PAINTED ▇▇▇▇▇▇▇▇ ACRYLIC POLYURETHANE, WHITE, SATIN FINISH -
TENANT NAME AND/OR LOGO IN COMPUTER-CUT VINYL, ANY COLOR
COLAR BAND AT TOP PAINTED ▇▇▇▇▇▇▇▇ ACRYLIC POLYURETHANE, STRIPE TO MATCH PMS
5473, SATIN FINISH
ADDRESS IN MATTE WHITE COMPUTER-CUT VINYL
CONCRETE BASE PAINTED WITH FLAT LATEX PAINT - CUSTOM COLOR: ▇/▇ ▇▇▇▇▇-▇▇▇▇▇
▇▇▇▇ "▇▇▇▇▇▇▇▇ NIGHT" + 1/2 BLACK
SCALE: 3/4" = 1'-0"
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This is an original, unpublished drawing, created by Sun Graphics. It is
submitted for your personal use in conjunction with a project being planned
for you by Sun Graphics. It is not to be shown to anyone outside your
organization, nor is it to be reproduced, copied, photographed, exhibited or
used in any fashion without the express, written approval of Sun Graphics.
Contractors Lic. No. 641723 Date: March 26, 1996
[LOGO]
▇▇▇▇ ▇▇▇▇▇ ▇▇▇▇▇▇
▇▇▇▇▇▇, ▇▇ ▇▇▇▇▇
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PHONE 510/▇▇▇-▇▇▇▇
FAX 510/▇▇▇-▇▇▇▇
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EXHIBIT F
HAZARDOUS MATERIALS DISCLOSURE CERTIFICATE
Your cooperation in this matter is appreciated. Initially, the information
provided by you in this Hazardous Materials Disclosure Certificate is necessary
for the Landlord to evaluate your proposed uses of the premises (the "PREMISES")
and to determine whether to enter into a lease agreement with you as tenant. If
a lease agreement is signed by you and the Landlord (the "LEASE AGREEMENT"), on
an annual basis in accordance with the provisions of Paragraph 32 of the Lease
Agreement, you are to provide an update to the information initially provided by
you in this certificate. Any questions regarding this certificate should be
directed to, and when completed, the certificate should be delivered to:
Landlord: Aetna Life Insurance Company
c/o Allegis Realty Investors LLC
▇▇▇ ▇▇▇▇▇▇ ▇▇▇▇▇▇, ▇▇▇▇▇ ▇▇▇▇
▇▇▇ ▇▇▇▇▇▇▇▇▇, ▇▇▇▇▇▇▇▇▇▇ ▇▇▇▇▇
Attention: ▇▇▇▇▇▇▇ ▇▇▇▇▇▇▇▇
Phone: (▇▇▇) ▇▇▇-▇▇▇▇
Name of (Prospective) Tenant: Affymetrix, Inc.
Mailing Address: ▇▇▇▇ ▇▇▇▇▇▇▇ ▇▇▇▇▇▇▇▇▇▇
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▇▇▇▇▇ ▇▇▇▇▇, ▇▇ ▇▇▇▇▇
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Contact Person, Title and Telephone Number(s): ▇▇▇▇▇ ▇▇▇▇▇▇ (▇▇▇) ▇▇▇-▇▇▇▇
----------------------------
Contact Person for Hazardous Waste Materials Management and Manifests and
Telephone Number(s): Jo ▇▇▇ ▇▇▇▇▇ (▇▇▇) ▇▇▇-▇▇▇▇
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Address of (Prospective) Premises: 1170 ▇▇▇▇▇▇, Sunnyvale
----------------------------------------
Length of (Prospective) initial Term: 5 years
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F-1
1. GENERAL INFORMATION:
Describe the proposed operations to take place in, on, or about the
Premises, including, without limitation, principal products processed,
manufactured or assembled, and services and activities to be provided or
otherwise conducted. Existing tenants should describe any proposed changes
to on-going operations.
Office; instrument assembly and repair
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2. USE, STORAGE AND DISPOSAL OF HAZARDOUS MATERIALS
2.1 Will any Hazardous Materials (as hereinafter defined) be used,
generated, treated, stored or disposed of in, on or about the
Premises? Existing tenants should describe any Hazardous Materials
which continue to be used, generated, treated, stored or disposed of
in, on or about the Premises.
Wastes Yes X No
Chemical Products Yes X No
Other Yes No X
If Yes is marked, please explain: Lab scale quanitities (@ 1 liter
-----------------------------------
bottles of isopropyl alcohol, ethanol, and salt solutions.
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2.2 If Yes is marked in Section 2.1, attach a list of any Hazardous
Materials to be used, generated, treated, stored or disposed of in, on
or about the Premises, including the applicable hazard class and an
estimate of the quantities of such Hazardous Materials to be present
on or about the Premises at any given time; estimated annual
throughput; the proposed location(s) and method of storage (excluding
nominal amounts of ordinary household cleaners and janitorial supplies
which are not regulated by any Environmental Laws, as hereinafter
defined); and the proposed location(s) and method(s) of treatment or
disposal for each Hazardous Material, including, the estimated
frequency, and the proposed contractors or subcontractors. Existing
tenants should attach a list setting forth the information requested
above and such list should include actual data from on-going
operations and the identification of any variations in such
information from the prior year's certificate.
F-2
3. STORAGE TANKS AND SUMPS
3.1 Is any above or below ground storage or treatment of gasoline, diesel,
petroleum, or other Hazardous Materials in tanks or sumps proposed in,
on or about the Premises? Existing tenants should describe any such
actual or proposed activities.
Yes No X
If yes, please explain:
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4. WASTE MANAGEMENT
4.1 Has your company been issued an EPA Hazardous Waste Generator I.D.
Number? Existing tenants should describe any additional
identification numbers issued since the previous certificate.
Yes No Application to be submitted prior to move in.
4.2 Has your company filed a biennial or quarterly reports as a hazardous
waste generator? Existing tenants should describe any new reports
filed.
Yes No X
If yes, attach a copy of the most recent report filed.
5. WASTEWATER TREATMENT AND DISCHARGE
5.1 Will your company discharge wastewater or other wastes to:
storm drain? sewer?
----- -----
surface water? X no wastewater or other wastes
----- -----
discharged.
Existing tenants should indicate any actual discharges. If so,
describe the nature of any proposed or actual discharge(s).
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F-3
5.2 Will any such wastewater or waste be treated before discharge?
Yes No N/A
If yes, describe the type of treatment proposed to be conducted.
Existing tenants should describe the actual treatment conducted.
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6. AIR DISCHARGES
6.1 Do you plan for any air filtration systems or stacks to be used in
your company's operations in, on or about the Premises that will
discharge into the air; and will such air emissions be monitored?
Existing tenants should indicate whether or not there are any such air
filtration systems or stacks in use in, on or about the Premises which
discharge into the air and whether such air emissions are being
monitored.
Yes No X
If yes, please describe:
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6.2 Do you propose to operate any of the following types of equipment, or
any other equipment requiring an air emissions permit? Existing
tenants should specify any such equipment being operated in, on or
about the Premises.
Spray booth(s) Incinerator(s)
----- -----
Dip tank(s) Other (Please describe)
----- -----
Drying oven(s) X No Equipment Requiring Air Permits
----- -----
If yes, please describe:
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6.3 Please describe (and submit copies of with this Hazardous Materials
Disclosure Certificate) any reports you have filed in the past
[thirty-six] months with any governmental or quasi-governmental
agencies or authorities related to air discharges or clean air
requirements and any such reports which have been issued during such
period by any such agencies or authorities with respect to you or your
business operations. N/A
F-4
7. HAZARDOUS MATERIALS DISCLOSURES
7.1 Has your company prepared or will it be required to prepare a
Hazardous Materials management plan ("MANAGEMENT PLAN") or Hazardous
Materials Business Plan and Inventory ("BUSINESS PLAN") pursuant to
Fire Department or other governmental or regulatory agencies'
requirements? Existing tenants should indicate whether or not a
Management Plan is required and has been prepared.
Yes X No
If yes, attach a copy of the Management Plan or Business Plan.
Existing tenants should attach a copy of any required updates to the
Management Plan or Business Plan.
7.2 Are any of the Hazardous Materials, and in particular chemicals,
proposed to be used in your operations in, on or about the Premises
listed or regulated under Proposition 65? Existing tenants should
indicate whether or not there are any new Hazardous Materials being so
used which are listed or regulated under Proposition 65.
Yes No X
If yes, please explain:
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F-5
8. ENFORCEMENT ACTIONS AND COMPLAINTS
8.1 With respect to Hazardous Materials or Environmental Laws, has your
company ever been subject to any agency enforcement actions,
administrative orders, or consent decrees or has your company received
requests for information, notice or demand letters, or any other
inquiries regarding its operations? Existing tenants should indicate
whether or not any such actions, orders or decrees have been, or are
in the process of being, undertaken or if any such requests have been
received.
Yes X No
If yes, describe the actions, orders or decrees and any continuing
compliance obligations imposed as a result of these actions, orders or
decrees and also describe any requests, notices or demands, and attach
a copy of all such documents. Existing tenants should describe and
attach a copy of any new actions, orders, decrees, requests, notices
or demands not already delivered to Landlord pursuant to the
provisions of Paragraph 32 of the Lease Agreement.
Notice of Violation from San ▇▇▇▇/Santa ▇▇▇▇▇ Pollution Control
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for excess zinc in industrial water. Floor stripper used by the
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contract janitorial crew contained zinc (not listed on the MSDS).
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Required only non-zinc containing products be used.
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8.2 Have there ever been, or are there now pending, any lawsuits against
your company regarding any environmental or health and safety
concerns?
Yes No X
If yes, describe any such lawsuits and attach copies of the
complaint(s), cross-complaint(s), pleadings and other documents
related thereto as requested by Landlord. Existing tenants should
describe and attach a copy of any new complaint(s),
cross-complaint(s), pleadings and other related documents not
already delivered to Landlord pursuant to the provisions of
Paragraph 32 of the Lease Agreement.
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F-6
8.3 Have there been any problems or complaints from adjacent tenants,
owners or other neighbors at your company's current facility with
regard to environmental or health and safety concerns? Existing
tenants should indicate whether or not there have been any such
problems or complaints from adjacent tenants, owners or other
neighbors at, about or near the Premises and the current status of any
such problems or complaints.
Yes No X
If yes, please describe. Existing tenants should describe any such
problems or complaints not already disclosed to Landlord under the
provisions of the signed Lease Agreement and the current status of any
such problems or complaints.
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9. PERMITS AND LICENSES
9.1 Attach copies of all permits and licenses issued to your company with
respect to its proposed operations in, on or about the Premises,
including, without limitation, any Hazardous Materials permits,
wastewater discharge permits, air emissions permits, and use permits
or approvals. Existing tenants should attach copies of any new
permits and licenses as well as any renewals of permits or licenses
previously issued.
As used herein, "HAZARDOUS MATERIALS" shall mean and include any substance
that is or contains (a) any "hazardous substance" as now or hereafter defined in
Section 101(14) of the Comprehensive Environmental Response, Compensation, and
Liability Act of 1980, as amended ("CERCLA") (42 U.S.C. Section 9601 ET SEQ.)
or any regulations promulgated under CERCLA; (b) any "hazardous waste" as now or
hereafter defined in the Resource Conservation and Recovery Act, as amended
("RCRA") (42 U.S.C. Section 6901 ET SEQ.) or any regulations promulgated under
RCRA; (c) any substance now or hereafter regulated by the Toxic Substances
Control Act, as amended ("TSCA") (15 U.S.C. Section 2601 ET SEQ.) or any
regulations promulgated under TSCA; (d) petroleum, petroleum by-products,
gasoline, diesel fuel, or other petroleum hydrocarbons; (e) asbestos and
asbestos-containing material, in any form, whether friable or non-friable;
(f) polychlorinated biphenyls; (g) lead and lead-containing materials; or
(h) any additional substance, material or waste (A) the presence of which on or
about the Premises (i) requires reporting, investigation or remediation under
any Environmental Laws (as hereinafter defined), (ii) causes or threatens to
cause a nuisance on the Premises or any adjacent property or poses or threatens
to pose a hazard to the health or safety of persons on the Premises or any
adjacent property, or (iii) which, if it emanated or migrated from the Premises,
F-7
could constitute a trespass, or (B) which is now or is hereafter classified or
considered to be hazardous or toxic under any Environmental Laws; and
"ENVIRONMENTAL LAWS" shall mean and include (a) CERCLA, RCRA and TSCA; and
(b) any other federal, state or local laws, ordinances, statutes, codes, rules,
regulations, orders or decrees now or hereinafter in effect relating to
(i) pollution, (ii) the protection or regulation of human health, natural
resources or the environment, (iii) the treatment, storage or disposal of
Hazardous Materials, or (iv) the emission, discharge, release or threatened
release of Hazardous Materials into the environment.
The undersigned hereby acknowledges and agrees that this Hazardous
Materials Disclosure Certificate is being delivered to Landlord in connection
with the evaluation of a Lease Agreement and, if such Lease Agreement is
executed, will be attached thereto as an exhibit. The undersigned further
acknowledges and agrees that if such Lease Agreement is executed, this
Hazardous Materials Disclosure Certificate will be updated from time to time
in accordance with Paragraph 32 of the Lease Agreement. The undersigned
further acknowledges and agrees that the Landlord and its partners, lenders
and representatives may, and will, rely upon the statements, representations,
warranties, and certifications made herein and the truthfulness thereof in
entering into the Lease Agreement and the continuance thereof throughout the
term, and any renewals thereof, of the Lease Agreement. I [print name]
▇▇▇▇▇▇▇ ▇. ▇▇▇▇▇, acting with full authority to bind the (proposed) Tenant
and on behalf of the (proposed) Tenant, certify, represent and warrant that
the information contained in this certificate is true and correct.
(PROSPECTIVE) TENANT:
AFFYMETRIX, INC.,
a Delaware corporation
By: /s/ ▇▇▇▇▇▇▇ ▇. ▇▇▇▇▇
-------------------------------
Title: President & CEO
----------------------------
Date: 7/30/99
-----------------------------
INITIALS:
TENANT: /s/ SF
--------
LANDLORD:
------
F-8
Non-Waste Hazardous Materials Inventory Statement
FOR USE BY ALL JURISDICTIONS WITHIN THE COUNTY OF SANTA ▇▇▇▇▇
Site Address: 1170 ▇▇▇▇▇▇, Sunnyvale Date: 8/2/99
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1. 2. 3. 4. 5. 6.
Chemical Name Chemical Quantity Stored
Components & Abstract Physical
LC Common/Trade Name Concentration Service State Lgst. Max. Average
No. Cont.
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Ethanol X Same as Column 2 64-17-5 X pure 0.5 3 2
mixture
-------
solid
X liquid
gas
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Isopropyl alcohol X Same as Column 2 67-63-0 X pure 0.5 3 2
mixture
-------
solid
X liquid
gas
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Acetone X Same as Column 2 67-64-1 X pure 0.5 2 1
mixture
-------
solid
X liquid
gas
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Diesel X Same as Column 2 68334-30-5 X pure 150 150 150
mixture
-------
solid
X liquid
gas
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Triton X-100 Same as Column 2 NA pure 0.5 2 1
Salt solution X mixture
-------
solid
X liquid
gas
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20X SSPE Buffer Same as Column 2 NA pure 0.5 2 1
Salt solution X mixture
-------
solid
X liquid
gas
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Envirocide Surface Same as Column 2 NA pure 0.5 2 1
Disinfectant X mixture
-------
solid
X liquid
gas
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1. 2. 7. 8. 9. 10.
Days Storage Codes ▇▇▇▇
On Hazard
LC Common/Trade Name Units Site Cont Class
Type(s) Pressure Temp.
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Ethanol X gal. 365 M X amb. X amb. X Fire
lbs. > amb. > amb. pressure
cu. ft. < amb. < amb. reactive
u. cur. cryo. Immediate
delayed
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Isopropyl alcohol X gal. 365 M X amb. X amb. X Fire
lbs. > amb. > amb. pressure
cu. ft. < amb. < amb. reactive
u. cur. cryo. Immediate
delayed
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Acetone X gal. 365 M X amb. X amb. X Fire
lbs. > amb. > amb. pressure
cu. ft. < amb. < amb. reactive
u. cur. cryo. Immediate
delayed
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Diesel X gal. 365 R X amb. X amb. Fire
lbs. > amb. > amb. pressure
cu. ft. < amb. < amb. reactive
u. cur. cryo. Immediate
delayed
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Triton X-100 X gal. 365 M X amb. X amb. Fire
lbs. > amb. > amb. pressure
cu. ft. < amb. < amb. reactive
u. cur. cryo. Immediate
delayed
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20X SSPE Buffer X gal. 365 M X amb. X amb. Fire
lbs. > amb. > amb. pressure
cu. ft. < amb. < amb. reactive
u. cur. cryo. Immediate
delayed
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Envirocide Surface X gal. 365 M X amb. X amb. Fire
Disinfectant lbs. > amb. > amb. pressure
cu. ft. < amb. < amb. reactive
u. cur. cryo. Immediate
delayed
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