Exhibit 10.11
AIRPORT
TECHNOLOGY PARK
LEASE
BETWEEN
WB
AIRPORT TECHNOLOGY, L.L.C.
(“LANDLORD”)
AND
MACROVISION
CORPORATION
(“TENANT”)
TABLE
OF CONTENTS
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PAGE
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1
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2
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2
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ARTICLE 4
RENTAL ADJUSTMENT
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3
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ARTICLE 5
SECURITY DEPOSIT
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7
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7
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9
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9
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ARTICLE 9
HOLDING OVER; SURRENDER
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9
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ARTICLE 10
TAXES ON TENANT’S PROPERTY
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11
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ARTICLE 11
CONDITION OF PREMISES
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11
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11
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12
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14
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ARTICLE 15
ENTRY BY LANDLORD AND RESERVED RIGHTS OF LANDLORD
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15
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ARTICLE 16
UTILITIES AND SERVICES
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15
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16
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ARTICLE 18
INDEMNIFICATION
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16
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ARTICLE 19
DAMAGE TO TENANT’S PROPERTY
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16
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ARTICLE 20
TENANT’S INSURANCE
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17
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ARTICLE 21
DAMAGE OR DESTRUCTION
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18
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ARTICLE 22
EMINENT DOMAIN
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19
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ARTICLE 23
DEFAULTS AND REMEDIES
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20
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ARTICLE 24
ASSIGNMENT AND SUBLETTING
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22
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ARTICLE 25
SUBORDINATION; MORTGAGEE PROTECTION
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25
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ARTICLE 26
ESTOPPEL CERTIFICATE
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26
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27
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ARTICLE 28
RULES AND REGULATIONS
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27
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ARTICLE 29
CONFLICT OF LAWS
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27
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ARTICLE 30
SUCCESSORS AND ASSIGNS
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28
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ARTICLE 31
SURRENDER OF PREMISES
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28
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ARTICLE 32
ATTORNEYS’ FEES
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28
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ARTICLE 33
PERFORMANCE BY TENANT
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28
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ARTICLE 34
INTENTIONALLY BLANK
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29
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ARTICLE 35
DEFINITION OF LANDLORD
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29
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29
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ARTICLE 37
INTENTIONALLY BLANK
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29
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29
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ARTICLE 39
TERMS AND HEADINGS
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30
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ARTICLE 40
EXAMINATION OF LEASE
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30
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30
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ARTICLE 42
PRIOR AGREEMENT: AMENDMENTS
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30
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30
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31
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31
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ARTICLE 46
LIMITATION ON LIABILITY
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31
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31
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32
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ii
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ARTICLE 49
MODIFICATION FOR LENDER
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32
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ARTICLE 50
WAIVER OF RIGHT TO TRIAL BY JURY
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32
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ARTICLE 51
HAZARDOUS MATERIALS
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32
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ARTICLE 52
OPTION TO RENEW
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32
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ARTICLE 53
TENANT IMPROVEMENT ALLOWANCE
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32
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ARTICLE 54
DETERMINATION OF FAIR MARKET VALUE
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32
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ARTICLE 55
RIGHT OF FIRST NEGOTIATION
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32
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32
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iii
LIST
OF EXHIBITS
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The
Premises
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The
Project
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Form
of Estoppel Certificate
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Work
Letter Agreement
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The
exhibits attached hereto are incorporated into and made a part of
this Lease.
iv
LEASE
THIS
LEASE is made as of December 17, 2004, by and between WB AIRPORT
TECHNOLOGY, L.L.C., a Delaware limited liability company
(“Landlord”), and MACROVISION CORPORATION, a Delaware
corporation (“Tenant”).
Landlord
hereby leases to Tenant and Tenant hereby leases from Landlord that
certain space (the “Premises”) located at 2860 De La
Cruz Boulevard, Santa Clara, California (the
“Building”) outlined on the floor plan attached hereto
and marked EXHIBIT A , the Premises being agreed, for the
purposes of this Lease, to have an area of approximately 73,968
rentable square feet, and part of a 5 building complex (the
“Project”) more particularly described in EXHIBIT
B attached hereto. The Project contains approximately 295,271
square feet of space (subject to adjustment by the
Landlord).
Landlord
and Tenant agree that said letting and hiring is upon and subject
to the terms, covenants and conditions herein set forth. Landlord
and Tenant covenant, as a material part of the consideration for
this Lease, to keep and perform each and all of said terms,
covenants and conditions for which each is respectively liable and
that this Lease is made upon the condition of such
performance.
Prior
to the Commencement Date (as defined in Article 1.1 below) Tenant
shall use diligent efforts to construct on the Premises the Tenant
Improvements (as defined in Article 53) substantially in accordance
with the specifications and layout set forth on EXHIBIT D
(the “Work Letter”) attached hereto.
ARTICLE 1
TERM
1.1
Commencement Date . The term of this Lease shall be for 144
months (“Lease Term”), commencing on February 1, 2005
(the “Commencement Date”), unless sooner terminated as
hereinafter provided or extended as provided in Article 52. On and
after the Commencement Date, the Lease shall continue in full force
and effect for the period of time specified as the Lease Term or
until this Lease is terminated as otherwise provided
herein.
1.1.1
Reference in this Lease to a “Lease Year” shall mean
each successive twelve month period commencing with the
Commencement Date.
1.1.2
Tenant (or its contractors or agents) may, at no charge to Tenant,
enter the Premises after the execution and delivery of this Lease
by Landlord and Tenant in order for Tenant to commence installation
of furniture, fixtures, trade fixtures, personal property,
telecommunications equipment, cabling, and other equipment and to
perform the work outlined in the Work Letter Agreement; provided,
however, that (a) Landlord shall not be responsible for, and Tenant
is required to obtain insurance covering and shall indemnify
Landlord against, any loss (including theft), damage or destruction
to any such items, or by any contractor or individual involved in
the installation of such items, or for any injury to Tenant or
Tenant’s employees, agents, contractors, licensees,
directors, officers, partners, trustees, visitors or invitees or to
any other person, and (b) Landlord shall have the right to post the
appropriate notices of non-responsibility and to require Tenant to
provide Landlord with reasonable evidence that Tenant has fulfilled
its obligation to provide insurance pursuant to this Lease. All
terms and conditions of this Lease shall apply to Tenant’s
early entry into the Premises except for the payment of Base Rent
and Direct Expenses, which will not occur until the third month of
the Lease Term.
ARTICLE 2
POSSESSION
Landlord
shall deliver full possession of the Premises to Tenant on or
before the Commencement Date. Tenant has determined that the
Premises are acceptable for Tenant’s use and Tenant
acknowledges that neither Landlord nor any broker or agent has made
any representations or warranties other than as are specifically
set forth in Article 11 of this Lease in connection with the
physical condition of the Premises or their fitness for
Tenant’s use upon which Tenant has relied directly or
indirectly for any purpose. Except as expressly provided to the
contrary in this Lease, Landlord shall not be required to make any
expenditure, incur any obligation, or incur any liability of any
kind whatsoever in connection with this Lease or the ownership,
construction, maintenance, operation or repair of the Premises or
the Project. Tenant’s possession of the Premises during the
period of time, if any, prior to the Commencement Date, shall be
subject to all the provisions of this Lease, except that Tenant
shall not be required to pay Base Rent or Additional Rent and any
such possession shall not advance the expiration date.
ARTICLE 3
RENT
3.1
Rent . Tenant shall pay to Landlord, in lawful money of the
United States of America, at the address of Landlord designated on
the signature page of this Lease or to such other person or at such
other place as Landlord may from time to time designate in writing,
the monthly base rent (the “Base Rent”) in advance,
without notice, demand, offset or deduction, on the first day of
each calendar month. Tenant shall pay the third month’s Base
Rent on the date Tenant executes this Lease and shall continue to
pay the Base Rent on the first day of each month commencing with
the fourth month of the Lease Term (subject to adjustment as
hereinafter provided) as follows:
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Base
Rent/Per Month
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$0.00
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$59,174.04
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$61,541.38
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$64,003.03
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$66,563.15
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$69,225.68
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$71,994.71
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$74,874.49
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$77,869.47
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$80,984.25
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The
greater of FMV or $59,174.04
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Landlord
shall, during the 103rd and/or 104th month of the Lease Term, (y)
make its determination of FMV for months 109-144 in accordance with
Article 54 and (z) deliver notice of such determination to
Tenant.
If
the Lease Term commences or ends on a date other than the first or
last day of a month, Base Rent shall be prorated on the basis of a
thirty (30) day month. Tenant shall pay Landlord the Rent (as
hereinafter defined) due under this Lease without any deduction or
offset whatsoever by Tenant, foreseeable or
unforeseeable.
3.2
Additional Rent . In addition to the Base Rent, Tenant
agrees to pay as additional rental (the “Additional
Rent” and together with the Base Rent, the
“Rent”) the amount of rental adjustments and all other
charges required by this Lease. All sums other than the Base Rent
that Tenant is obligated to pay under this Lease will be Additional
Rent, whether or not such sums are designated as Additional
Rent.
3.3
Late Charge and Interest . Tenant acknowledges and agrees
that the late payment of any Rent will cause Landlord to incur
additional costs, including administration and collection costs,
processing and accounting expenses, and increased debt service (the
“Delinquency Costs”). If Landlord has not received any
installment of Rent within five (5) days of the date when due,
Tenant shall pay a late charge (the “Late Charge”)
equal to five percent (5%) of the delinquent amount. Tenant agrees
that the Late Charge represents a reasonable estimate of the
Delinquency Costs that will be incurred by Landlord. In addition,
Tenant shall pay interest on all delinquent amounts from five (5)
days after the date the amount was due until the date the amount is
paid in full at a rate per annum (the “Applicable Interest
Rate”) equal to the lesser of (a) the maximum interest rate
permitted by law or (b) three percent (3%) above the reference rate
(the “Reference Rate”) publicly announced by Bank of
America, NA. (or if Bank of America, NA. ceases to exist, the
largest bank then headquartered in the State of California) (the
“Bank”). If the Bank discontinues use of the Reference
Rate, then the term “Reference Rate” will mean the
announced rate charged by the Bank, from time to time instead of
the Reference Rate. Landlord and Tenant agree that it is difficult
to ascertain the damage that Landlord will suffer as a result of
the late payment of any Rent and that the Late Charge and interest
are the best estimates of the damage that Landlord will suffer in
the event of late payment. If a Late Charge becomes payable for any
two (2) installments of Rent within any twelve (12) month
period, then all Rent will automatically become due and payable
quarterly in advance, until such time as Tenant shall have been
current in such obligations for two (2) consecutive years, at which
point monthly payments shall resume. Landlord shall make
arrangements to allow Tenant to wire Base Rent and Additional Rent
directly to Landlord’s bank account on a regular
basis.
ARTICLE 4
RENTAL ADJUSTMENT
4.1
Rental Adjustment .
(a)
For the purpose of this Lease, the following terms are defined as
follows:
(i)
Tenant’s Percentage . “Tenant’s
Percentage” shall mean, as applicable, (a) 100% of the
Premises, (b) that portion of the Building occupied by Tenant
divided by the total rentable square footage of the Building, which
result is the following, as of the date hereof, subject to
adjustment by Landlord in accordance with the terms of this Lease:
78.22%, or (c) that portion of the Project occupied by Tenant
divided by the total rentable square footage of the Project, which
result is the following, as of the date hereof, subject to
adjustment by Landlord in accordance with the terms of this Lease:
25.10%. Tenant acknowledges and agrees that Landlord may elect to
sell one or more of the buildings within the Project and that upon
any such sale, or upon any other event that causes the square
footage of the Premises, Building or the Project to change,
Tenant’s pro-rata share of those Direct Expenses allocated to
the outside areas of the Building or Project may be adjusted
accordingly by Landlord.
(ii)
Direct Expenses . The term “Direct Expenses”
shall include “Taxes” (as hereinafter defined) and
“Operating Expenses” (as hereinafter
defined).
(A)
“Taxes” means the sum of any and all legally required
real and personal property taxes and assessments,
possessory-interest taxes, business or license taxes or fees,
service
payments
in lieu of such taxes or fees, annual or periodic license or use
fees, excises, transit and traffic charges, housing fund
assessments, open space charges, childcare fees, school, sewer and
parking fees or any other assessments, levies, fees, exactions or
charges, general and special, ordinary and extraordinary,
unforeseen as well as foreseen (including fees
“in-lieu” of any such tax or assessment) which are
assessed, levied, charged, conferred or imposed by any competent
public authority upon the Project (or any real property comprising
any portion thereof) or its operations, together with all taxes,
assessments or other fees imposed by any competent public authority
upon or measured by any Rent or other charges payable hereunder,
including any gross receipts tax or excise tax levied by any
governmental authority with respect to receipt of rental income, or
upon, with respect to or by reason of the development, possession,
leasing, operation, management, maintenance, alteration, repair,
use or occupancy by Tenant of the Premises or any portion thereof,
or documentary transfer taxes upon this transaction or any document
to which Tenant is a party creating or transferring an interest in
the Premises, together with any tax imposed in substitution,
partially or totally, of any tax previously included within the
aforesaid definition or any additional tax the nature of which was
previously included within the aforesaid definition, together with,
whether legally required or not, any and all reasonable costs and
expenses (including, without limitation, attorneys, administrative
and expert witness fees and costs) of challenging any of the
foregoing or seeking, the reduction in or abatement, redemption or
return of any of the foregoing, but only to the extent of any such
reduction, abatement, redemption or return. “Taxes”
shall not include any income, franchise, estate, succession,
inheritance, or any tax imposed in substitution, partially or
totally, of any such tax or any additional tax previously included
within any such tax; provided, however, that the foregoing
limitation on “Taxes” shall not be deemed or
constructed as providing so called “Proposition 13
protection”. All references to Taxes during a particular year
shall be deemed to refer to taxes accrued during such year,
including supplemental tax bills regardless of when they are
actually assessed and without regard to when such taxes are
payable. The obligation of Tenant to pay for supplemental taxes
shall survive the expiration or earlier termination of this Lease.
Tenant’s obligations for Taxes for the last full and/or
partial year(s) of the Lease Term shall survive the expiration or
early termination of the Lease.
(B) “Operating
Expenses” means the total costs and expenses incurred by
Landlord in the operation, maintenance, repair and management of
the Project and the Common Area (as hereinafter defined) and the
Premises, including, but not limited to, (a) cleaning of,
repairs to and maintenance of the roof (and roof membrane),
skylights and exterior walls of the Premises (provided that capital
expenses relating to such items shall be governed by clause (h) of
this paragraph (B)); (b) cleaning, maintenance, repair,
replacement, utility costs and landscaping of the walkways,
landscaped areas, driveways necessary for access to the Premises,
parking areas (including sweeping, striping and slurry coating),
and other common facilities designated by Landlord from time to
time for the common use of all tenants of the Project (the
“Common Area”), common driveways, outdoor lighting,
walkways, landscaping, and other costs which are allocable to the
Project or the real property of which the Premises are a part
including any costs under the terms of any recorded covenants
affecting the real property or the Project; (c) the costs and
premiums relating to the insurance maintained by Landlord with
respect to the Project (including, without limitation, any
increases in the costs and premiums of any fire, extended coverage
or any other insurance policy covering the Premises and/or Project
and/or property located therein resulting from the actions of
Tenant); (d) service and maintenance contracts for, and the
repair and replacement of, the heating, ventilation and
air-conditioning (HVAC) systems and elevators, if any, and
maintenance, repair, replacement, monitoring and operation of the
fire/life safety system, (e) service and maintenance contracts
for security, cleaning, janitorial and landscaping services (all as
to the Common Areas only, unless Landlord exercises its right to
perform such services with respect to the Premises, such right not
to arise unless and until Tenant has failed to perform such
obligations, Landlord has given Tenant not less than five (5) days
written notice of Landlord’s intent to perform such services
and Tenant
has
not cured such failure within such five (5) day period, provided
that no such notice shall be required in the event of an
emergency); (f) trash collection (as to the Common Area only,
unless Landlord exercises its right to perform such services with
respect to the Premises) (g) the portion of wage and labor
costs related to services rendered in connection with the Project,
including fringe benefits, applicable to persons engaged in the
operation, maintenance and repair of the Project as
Landlord’s agents or as independent contractors; (h) in
the event Landlord reasonably elects or is required to make any of
the following kinds of capital improvements to the Project: (i)
capital improvements required to be constructed in order to comply
with any applicable laws, statutes, codes, ordinances, orders,
rules, regulations, conditions of approval and requirements of all
federal, state, county, municipal and governmental authorities and
all administrative or judicial orders or decrees and all permits,
licenses, approvals and other entitlements issued by governmental
entities, and rules of common law, relating to or affecting the
Project or the Premises or the use or operation thereof, whether
now existing or hereafter enacted, including, without limitation,
the Americans with Disabilities Act of 1990, 42 USC 12111 et seq.
(the “ADA”) as the same may be amended from time to
time, all Environmental Laws (as hereinafter defined), and any
CC&Rs (as hereinafter defined), or any corporation, committee
or association formed in connection therewith, or any supplement
thereto recorded in any official or public records with respect to
the Project or any portion thereof (collectively, “Applicable
Laws”); (ii) modification of existing or construction of
additional capital improvements or building service equipment for
the purpose of reducing the consumption of utility services or
Operating Expenses of the Project, but limited to the extent such
modifications result in cost savings; (iii) replacement of capital
improvements or building service equipment existing as of the date
hereof when required because of normal wear and tear; and (iv)
restoration of any part of the Project that has been damaged by any
peril to the extent the cost thereof is not covered by insurance
proceeds actually recovered by Landlord; provided further that such
capital improvements shall be amortized over the useful life of
such capital improvement, together with interest on the unamortized
balance at three percent (3%) above the Reference Rate over the
useful life of the improvement; (i) any and all costs
associated with Landlord’s obligations as set forth in
Article 13.2 herein; and (j) any other costs incurred by Landlord
related to the Project as a whole. Operating Expenses shall include
all costs and fees incurred by Landlord in connection with the
management of this Lease and the Premises including the cost of
those services which are customarily performed by a property
management services company, whether performed internally or
through an outside management company. Direct Expenses shall not
include increased expenses resulting from the acts of tenants of
the Project other than Tenant, including but not limited to
increased ADA compliance costs, increases in Landlord’s
insurance costs caused solely by other tenants of the Project,
liens, increased tax assessments or tax penalties, to the extent
such increased costs are the responsibility of such other tenants
and the cost of tenant improvements or assessments placed against
the Project by any governmental agency as a result of a new tenant
taking possession or making such tenant improvements, in each case
to the extent such other tenant(s) is (are) liable for such
amounts. Additionally, Direct Expenses shall only include expenses
relating to maintenance or repair of buildings in the Project other
than the building located on the Premises if and to the extent that
such expenses are allocated on a consistent basis to tenants of the
Project based on their respective percentage interests in the
Project (and without regard to whether such buildings are vacant,
occupied or under lease).
(b)
Payment of Direct Expenses .
(i)
Tenant shall pay:
(A)
Tenant’s Percentage of all Direct Expenses attributable to
the Premises as Additional Rent;
(B)
Tenant’s Percentage of all Direct Expenses attributable to
the Building as Additional Rent; and
(C)
Tenant’s Percentage of all Direct Expenses attributable to
the Project as Additional Rent.
(ii) Intentionally
Blank.
(iii) As
soon as possible after the end of each calendar year, Landlord
shall provide Tenant with a detailed statement showing the amount
of Tenant’s Percentage of Direct Expenses and the amount of
Landlord’s Estimate actually paid by Tenant (“Direct
Expense Statement”). If Tenant so requests, Landlord shall
provide copies of actual invoices pertaining to these
expenses.
(c)
Audit Rights.
(i) Provided
that no Event of Default has occurred, Tenant shall have the right
(“Audit Right”) to, one time per calendar year during
the Lease Term, audit Landlord’s records and books used by
Landlord in determining the amount of Direct Expenses Tenant is
obligated to pay to Landlord for the sole purpose of verifying the
accuracy of same (the “Audit”). Any Audit shall cover
only one (1) calendar year during the Term of the Lease. Tenant
shall provide Landlord at least thirty (30) days prior written
notice requesting the Audit, provided, however, that Tenant’s
right, if any, to exercise its Audit Right for any subject year
shall expire sixty (60) days after the delivery to Tenant of the
Direct Expense Statement for the calendar year, including the last
year of the Lease Term, which Tenant desires to audit and, unless
such right is exercised prior to such time, Tenant shall have
waived its right to request such an Audit. Landlord shall make said
books and records relevant to such Audit available to Tenant during
Landlord’s customary business hours at the office of the
property manager of the Project or at such other location
designated by Landlord in writing.
(ii)
Tenant shall pay all reasonable and necessary third party
out-of-pocket costs for the Audit, including, without limitation,
all of Landlord’s costs and expenses, including reasonable
attorney and accountant fees.
(iii)
The Audit shall only be conducted by a reputable accounting firm
(“Accounting Firm”) approved in writing by Landlord. As
a condition precedent to any such Audit, Tenant shall deliver to
Landlord a copy of Tenant’s written agreement with such
Accounting Firm, which agreement shall include provisions which
state that: (A) Landlord is an intended third-party beneficiary of
such agreement, (B) such Accounting Firm is not being engaged as a
contingency or other incentive based auditor; (C) such Accounting
Firm will not in any manner solicit or agree to represent any other
tenant of the Project with respect to an audit or other review of
Landlord’s accounting records at the Project, and (D) such
Accounting Firm shall maintain in strict confidence any and all
information obtained in connection with the Audit and shall not
disclose such information to any person or entity other than to the
management personnel of Tenant. The Accounting Firm, Landlord and
Tenant shall enter into a confidentiality agreement in form and
substance acceptable to Landlord whereby the Accounting Firm and
Tenant shall covenant, among other things, that the Accounting Firm
and the Tenant shall keep the books and records of Landlord in
strict confidence.
(iv)
In the event that the amount of Direct Expenses paid by Tenant to
Landlord exceed the actual amount of Direct Expenses owed by Tenant
to Landlord as disclosed by the Audit, and after such Audit is
confirmed and accepted by Landlord, in Landlord’s reasonable
discretion, such difference shall be applied to the next succeeding
payment of Direct Expenses due by Tenant to Landlord.
In
the event that the amount of Direct Expenses paid by Tenant to
Landlord is less than the actual amount of Direct Expenses owed by
Tenant to Landlord as disclosed by the Audit, Tenant shall pay such
difference to Landlord within ten (10) days of such
determination.
(v)
Nothing contained herein shall be construed as providing Tenant
with any right or option to examine any other books and records of
Landlord or any of Landlord’s affiliated entities.
Notwithstanding anything to the contrary contained herein, the
Audit Right granted herein is personal to the originally named
Tenant, shall be exercisable only by such originally named Tenant
and may not be assigned or exercised by any assignee, sublessee or
transferee of Tenant’s interest in this Lease or any
successor in interest to Tenant.
(d)
Tenant’s obligation to pay Tenant’s Percentage of
Direct Expenses shall survive the expiration or termination of this
Lease. Tenant’s Percentage of Direct Expenses shall be paid
by Tenant when due even though the Lease Term has expired and/or
Tenant has vacated the Premises, when the final determination is
made of Tenant’s Percentage of Direct Expenses for the year
in which this Lease terminates, Tenant shall immediately pay any
increase due over the estimated expenses paid and, conversely, any
overpayment made in the event said expenses decrease shall be
promptly rebated by Landlord to Tenant.
ARTICLE 5
SECURITY DEPOSIT
Upon
execution of this Lease, Tenant has deposited with Landlord the sum
of $80,984.25 (the “Security Deposit”). The Security
Deposit shall be held by Landlord as security for the full and
faithful performance by Tenant of all of Tenant’s obligations
hereunder. If Tenant defaults with respect to any provision of this
Lease, including but not limited to the provisions relating to the
payment of Rent, Landlord may, but shall not be required to, use,
apply or retain all or any part of this Security Deposit for the
payment of any Rent or any other sum in default, or for the payment
of any other amount which Landlord may spend or become obligated to
spend by reason of Tenant’s default or to compensate Landlord
for any other loss or damage which Landlord may suffer by reason of
Tenant’s default. If any portion of the Security Deposit is
so used or applied, Tenant shall, upon written demand from
Landlord, deposit cash with Landlord in an amount sufficient to
restore the Security Deposit to its original amount. Tenant’s
failure to do so shall be a material breach of this Lease. Landlord
shall not be required to keep the Security Deposit separate from
its general funds, and Tenant shall not be entitled to interest on
the Security Deposit. If Tenant shall fully and faithfully perform
all of its obligations under this Lease, and if Tenant is not in
default under this Lease, the Security Deposit or any balance
thereof shall be promptly returned to Tenant (or, at
Landlord’s option, to the last assignee of Tenant’s
interests hereunder) after the expiration of the Lease Term and
after Landlord after such time as any amount due from Tenant in
accordance with Article 4 hereof has been determined and paid
in full.
ARTICLE 6
USE
Tenant
shall use the Premises for general office space and research and
development facilities together with other legally permitted uses
(the “Permitted Use”) which have been approved by
Landlord and are consistent with all City of Santa Clara ordinances
and other uses in the Project and Tenant shall not use or permit
the Premises to be used for any other purpose without
Landlord’s prior written consent. Nothing contained herein
shall be deemed to give Tenant any exclusive right to such use in
the Project.
Tenant
shall not use or occupy the Premises in violation of law or of the
certificate of occupancy issued for the Premises or Project, and
shall, upon written notice from Landlord, discontinue any use of
the Premises which is declared by any governmental authority having
jurisdiction to be a violation of law or of said certificate of
occupancy. Tenant shall comply with any direction of any
governmental authority having jurisdiction which shall, by reason
of the nature of Tenant’s use or occupancy of the Premises,
impose any duty upon Tenant or Landlord with respect to the
Premises or with respect to the use or occupation thereof. Tenant
shall not do or permit to be done anything which will invalidate or
increase (unless Tenant compensates Landlord for such increase in
insurance rates as part of Direct Expenses) the cost of any fire,
extended coverage or any other insurance policy covering the
Premises and/or Project and/or property located therein and shall
comply with all rules, orders, regulations and requirements of the
Insurance Service Offices, formerly known as the Pacific Fire
Rating Bureau or any other organization performing a similar
function. Tenant shall promptly, upon written demand, reimburse
Landlord for any additional premium charged for such policy solely
by reason of Tenant’s failure to comply with the provisions
of this Article. Tenant shall not do or permit anything to be done
in or about the Premises which will in any way obstruct or
interfere with the rights of other tenants or occupants of the
Project, or injure or annoy them, or use or allow the Premises to
be used for any improper, immoral, unlawful or objectionable
purpose, nor shall Tenant cause, maintain or permit any nuisance
in, on or about the Premises. Tenant shall not commit or suffer to
be committed any waste in or upon the Premises. Tenant’s use
of the Premises shall be subject to and Tenant shall comply with
any recorded covenants, conditions and restrictions
(“CC&Rs”) now in place or those customary CC&Rs
which are hereinafter recorded which do not unreasonably interfere
with Tenant’s use of the Premises, as the same may be amended
from time to time, and all Applicable Laws. Tenant acknowledges
that there have been and may be from time to time recorded
easements and/or declarations granting or declaring easements for
parking, utilities, fire or emergency access, and other matters.
Tenant’s use of the Premises shall be subject to and Tenant
shall comply with any and all such easements and declarations.
Tenant’s use of the Premises shall be subject to such
guidelines as may from time to time be prepared by Landlord in its
sole but reasonable discretion. Tenant acknowledges that
governmental entities with jurisdiction over the Project may, from
time to time promulgate laws, rules, plans and regulations
affecting the use of the Premises, including, but not limited to,
traffic management plans and energy conservation plans.
Tenant’s use of the Project shall be subject to and Tenant
shall comply with any and all such laws, rules, plans, and
regulations. Tenant, at its sole cost, shall comply with any and
all federal, state or local environmental, health and/or
safety-related laws, regulations, standards, decisions of courts,
ordinances, rules, codes, orders, decrees, directives, guidelines,
permits or permit conditions, currently existing and as amended,
enacted, issued or adopted in the future which are or become
applicable to Tenant’s use of the Premises, the Common Area
or the Project (“Environmental Laws”). Tenant shall not
store, use or dispose of any “Hazardous Materials” (as
hereinafter defined) on the Premises, except as set forth in
Article 51. As used herein, “Hazardous Materials” means
any chemical, substance, material, controlled substance, object,
condition, waste, living organism or combination thereof, whether
solid, semi solid, liquid or gaseous, which is or may be hazardous
to human health or safety or to the environment due to its
radioactivity, ignitability, corrosivity, reactivity, explosivity,
toxicity, carcinogenicity, mutagenicity, phytotoxicity,
infectiousness or other harmful or potentially harmful properties
or effects, including, without limitation, petroleum and petroleum
products, asbestos, radon, polychlorinated biphenyls (PCBs),
refrigerants (including those substances defined in the
Environmental Protection Agency’s “Refrigerant
Recycling Rule,” as amended from time to time) and all of
those chemicals, substances, materials, controlled substances,
objects, conditions, wastes, living organisms or combinations
thereof which are now or become in the future listed, defined or
regulated in any manner by any Environmental Law based upon,
directly or indirectly, such properties or effects. In no event
shall Tenant be liable for any damages resulting from a
pre-existing hazardous condition (whether or not uncovered by
Tenant’s due diligence
inspections)
or a hazardous condition caused by a third party (other than a
Tenant’s Party (hereinafter defined)), unless the same are
exacerbated by Tenant’s negligence or willful
misconduct.
ARTICLE 7
NOTICES
Any
notice required or permitted to be given hereunder must be in
writing and may be given by personal delivery or by mail, and if
given by mail shall be deemed sufficiently given if sent by
registered or certified mail addressed to Tenant at the Project, or
to Landlord at its address set forth at the end of this Lease.
Either party may specify a different address for notice purposes by
written notice to the other except that the Landlord may in any
event use the Premises as Tenant’s address for notice
purposes. Notwithstanding the foregoing, if Tenant has subleased
substantially all of the Premises or assigned its interest in this
Lease, Tenant may specify a different address for notice purposes
by written notice to the Landlord and if Tenant fails to so provide
such notice, Landlord may use the Premises as Tenant’s
address for notices purposes.
ARTICLE 8
BROKERS
8.1 Tenant
warrants that it has had no dealings with any real estate broker or
agent in connection with the negotiation of this Lease, except
Edward Grammens, David Polatnick, and Jay Seiden of Newmark
Pacific, Inc. (“ Tenant’s Broker ”), whose
commission shall be payable by Landlord pursuant to a separate
written agreement and as set forth in Section 8.2 below. If at any
time during the Lease Term the Building is sold, then upon such
sale and upon purchaser’s assumption of Landlord’s
obligations under this Lease, such purchaser shall be automatically
deemed to have assumed the obligations set forth in this Article 8
to pay to Tenant’s Broker and Landlord’s Broker any
commissions due to Tenant’s Broker or Landlord’s Broker
under this Article 8, and upon such sale and assumption WB Airport
Technology, L.L.C., and its successors or assigns (other than the
purchaser of the Building), shall be released from any and all
liability to pay such commissions. Landlord warrants that it has
had no dealings with any real estate broker or agent in connection
with the negotiation of this Lease, except Craig Fordyce and
Michael Rosendin of Colliers International (“
Landlord’s Broker”) , whose commission shall be
payable by Landlord. Tenant and Landlord warrant to each other that
neither party knows of any other real estate broker or agent who is
or might be entitled to a commission in connection with the Lease.
If Tenant has dealt with any other person or real estate broker
with respect to leasing or renting space in the Project, Tenant
shall be solely responsible for the payment of any fee due said
person or firm and Tenant shall hold Landlord free and harmless
against any liability in respect thereto, including reasonable
attorneys’ fees and costs. If Landlord has dealt with any
other person or real estate broker with respect to leasing or
renting space in the Project, Landlord shall be solely responsible
for the payment of any fee due said person or firm and Landlord
shall hold Tenant free and harmless against any liability in
respect thereto, including reasonable attorneys’ fees and
costs.
8.2 If,
in connection with the determination of the FMV Base Rent pursuant
to Section 3.1 and Article 54, for months 109-144 of the Lease Term
the final determination of FMV Base Rent is greater than $59,174.04
per month, Landlord and Tenant agree that Landlord shall pay to
Tenant’s Broker on or before the 1st day of month 110 of the
Lease Term an amount equal to the product of (i) three percent
(.03) multiplied by (ii) the positive difference between (y)
$2,130,265.40 and (z) the cumulative FMV Base Rent for months
109-144 of the Lease Term. Notwithstanding the foregoing, Landlord
shall not be required to pay any such amount to Tenant’s
Broker if, at the time such payment is due, an uncured Event of
Default has occurred or is occurring under the Lease, provided that
if the Event of Default is cured pursuant to any right to cure, if
any, provided for herein, then Tenant’s Broker shall be paid
the
commission
then due and owing. Landlord and Tenant hereby acknowledge and
agree that Tenant’s Broker shall be an intended third party
beneficiary of this Article 8.
8.3
If, in connection with the determination of the FMV Base Rent
pursuant to Section 3.1 and Article 54, for months 109-144 of the
Lease Term the final determination of FMV Base Rent is greater than
$59,174.04 per month, Landlord and Tenant agree that Landlord shall
pay to Landlord’s Broker on or before the 1st day of month
110 of the Lease Term an amount equal to the product of (i) one and
one-quarter percent (.0125) multiplied by (ii) the positive
difference between (y) $2,130,265.40 and (z) the cumulative FMV
Base Rent for months 109-144 of the Lease Term. Notwithstanding the
foregoing, Landlord shall not be required to pay any such amount to
Landlord’s Broker if, at the time such payment is due, an
uncured Event of Default has occurred or is occurring under the
Lease, provided that if the Event of Default is cured pursuant to
any right to cure, if any, provided for herein, then
Landlord’s Broker shall be paid the commission then due and
owing. Landlord and Tenant hereby acknowledge and agree that
Landlord’s Broker shall be an intended third party
beneficiary of this Article 8.
ARTICLE 9
HOLDING OVER; SURRENDER
9.1
Holding Over . If Tenant holds over the Premises or any part
thereof after expiration of the Lease Term, such holding over
shall, at Landlord’s option, constitute a month-to-month
tenancy, at a rent equal to one-hundred fifty percent (150%) of the
greater of (a) the then fair market value of the base rent for the
Premises and (b) the Base Rent in effect immediately prior to such
holding over and shall otherwise be on all the other terms and
conditions of this Lease. The provisions of this Article 9.1
shall not be construed as Landlord’s permission for Tenant to
hold over. Acceptance of Rent by Landlord following expiration or
termination shall not constitute a renewal of this Lease or
extension of the Lease Term except as specifically set forth
above.
9.2
Surrender . Upon the termination of this Lease or
Tenant’s right to possession of the Premises, Tenant will
surrender the Premises broom clean, together with all keys, in good
condition and repair, reasonable wear and tear excepted. Tenant
shall patch and fill all holes within the Premises, made by, or at
the request of, Tenant. Tenant shall also remove all alterations or
improvements made by it to the Premises, unless requested not to do
so by Landlord. Notwithstanding the foregoing, if so requested by
written notice from Tenant to Landlord at the time Tenant begins
the Tenant’s Work (as defined in the Work Letter), Landlord
shall specify by written notice to Tenant any of the Tenant
Improvements that Tenant must remove upon surrender of the
Premises. In no event may Tenant remove from the Premises any
mechanical or electrical systems or any wiring necessary for the
operation of the building systems or subsystems or any other aspect
of any building systems or subsystems within the Premises. Subject
to the conditions set forth in this Lease, Tenant may remove from
the Premises those systems installed by Tenant as specifically
permitted by this Lease; provided however that Tenant shall be
responsible for, but Tenant’s responsibility in removing such
systems shall not be limited to, the following: the removal shall
in no way affect the building systems or cause any damage to the
Premises, and Tenant shall be responsible for the costs of such
removal and for repairing any damage or alteration of the Premises
resulting from the installation and removal of such systems prior
to the end of the Lease Term, all at Tenant’s sole cost and
expense. Conditions existing because of Tenant’s failure to
perform maintenance, repairs or replacements shall not be deemed
“reasonable wear and tear.”
ARTICLE 10
TAXES ON TENANT’S PROPERTY
(a) Tenant
shall be liable for and shall pay, at least ten (10) days before
delinquency, all taxes levied against any personal property or
trade fixtures placed by Tenant in or about the Premises. If any
such taxes on Tenant’s personal property or trade fixtures
are levied against Landlord or Landlord’s property of if the
assessed value of the Premises is increased by the inclusion
therein of a value placed upon such personal property or trade
fixtures of Tenant and if Landlord, after written notice to Tenant,
pays the taxes based upon such increased assessment, which Landlord
shall have the right to do regardless of the validity thereof, but
only under proper protest if requested by Tenant, Tenant shall,
upon demand, repay to Landlord the taxes so levied against
Landlord, or the portion of such taxes resulting from such increase
in the assessment.
(b)
If the Tenant Improvements in the Premises, whether installed
and/or paid for by Landlord or Tenant and whether or not affixed to
the real property so as to become a part thereof, are assessed for
real property tax purposes at a valuation higher than the valuation
at which Tenant Improvements conforming to Landlord’s
“Project Standard” in other space in the Project are
assessed, then the real property taxes and assessment levied
against the Project by reason of such excess assessed valuation
shall be deemed to be taxes levied against personal property of
Tenant and shall be governed by the provisions of Article
10(a), above. If the records of the County Assessor are
available and sufficiently detailed to serve as a basis for
determining whether said Tenant Improvements are assessed at a
higher valuation than Landlord’s Project Standard, such
records shall be binding on both the Landlord and the Tenant. If
the records of the County Assessor are not available or
sufficiently detailed to serve as a basis for making said
determination, the actual cost of construction shall be
used.
ARTICLE 11
CONDITION OF PREMISES
Other
than as specifically set forth in this Lease, Tenant acknowledges
that neither Landlord nor any agent of Landlord has made any
representation or warranty with respect to the Premises or the
Project or with respect to the suitability of either for the
conduct of Tenant’s business. The taking of possession of the
Premises by Tenant shall conclusively establish that the Premises
and the Project were in satisfactory condition at such time.
Landlord warrants that the following existing building systems and
subsystems will operate in a customary manner for similar buildings
for sixty (60) days from the Commencement Date: (a)
electrical/lighting; (b) fire protection systems; and (c) all
existing fixtures, plumbing and HVAC. If any such equipment fails
to operate during such time period, Landlord shall bear the expense
of repair, but Tenant shall have no right of offset or termination,
or other defense hereunder.
ARTICLE 12
ALTERATIONS
(a) Tenant
shall make no alterations, additions or improvements in or to the
Premises in excess of Fifty Thousand and No/100 Dollars
($50,000.00) per annum or in excess of Two Hundred Forty Thousand
and No/100 Dollars ($240,000.00), in the aggregate, over the Lease
Term (plus an additional One Hundred Thousand and No/100 Dollars
($100,000.00) during the Extension Term, if any) (provided that all
alterations, additions or improvements are lawful, not structural,
not inconsistent with the Permitted Use, not dangerous, do not
affect the building systems and do not contravene any other
provision of this Lease), without Landlord’s prior written
consent, such consent not to be unreasonably withheld, and then
only by contractors or mechanics reasonably approved by Landlord.
Tenant agrees that there shall be no construction or partitions or
other obstructions which might interfere with
Landlord’s
free access to mechanical installations or service facilities of
the Premises or Project or interfere with the moving of
Landlord’s equipment to or from the enclosures containing
said installations or facilities. All such work shall be done at
such times and in such manner as Landlord may from time to time
reasonably designate. Tenant covenants and agrees that all work
done by Tenant shall be performed in full compliance with all laws,
rules, orders, ordinances, regulations and requirements of all
governmental agencies, offices, and boards having jurisdiction, and
in full compliance with the rules, regulations and requirements of
the Insurance Service Offices formerly known as the Pacific Fire
Rating Bureau, and of any similar body. Before commencing any work,
Tenant shall give Landlord at least ten (10) days written notice of
the proposed commencement of such work and shall, if required by
Landlord, secure at Tenant’s own cost and expense, a
completion and lien indemnity bond, reasonably satisfactory to
Landlord, for said work. Tenant further covenants and agrees that
any mechanic’s lien filed against the Premises or against the
Premises or Project for work done for, or materials claimed to have
been furnished to, Tenant will be discharged by Tenant, by bond or
otherwise, within ten (10) days after the filing thereof, at the
cost and expense of Tenant. All alterations, additions or
improvements upon the Premises made by either party, including
(without limiting the generality of the foregoing) all
wallcovering, built-in cabinet work, paneling and the like, shall,
unless Landlord elects otherwise, become the property of Landlord,
and shall remain upon, and be surrendered with the Premises, as a
part thereof, at the end of the term hereof, except that Landlord
may, by written notice to Tenant, require Tenant to remove all
partitions, counters, railings and the like installed by Tenant,
and Tenant shall repair all damage resulting from such removal or,
at Landlord’s option, shall pay to Landlord all costs arising
from such removal.
(b) Notwithstanding
subsection (a), all articles of personal property and all business
and trade fixtures, machinery and equipment, furniture and movable
partitions owned by Tenant or installed by Tenant at its expense in
the Premises shall be and remain the property of Tenant and may be
removed by Tenant at any time during the Lease Term when Tenant is
not in default hereunder. If Tenant shall fail to remove all of its
effects from the Premises upon termination of this Lease for any
cause whatsoever, Landlord may, at its option, remove the same in
any manner that Landlord shall choose, and store said effects
without liability to Tenant for loss thereof. In such event, Tenant
agrees to pay Landlord upon demand any and all expenses incurred in
such removal, including court costs and attorneys’ fees and
storage charges on such effects for any length of time that the
same shall be in Landlord’s possession. Landlord may, at its
option, without notice, sell said effects, or any of the same, at
private sale and without legal process, for such price as Landlord
may obtain and apply the proceeds of such sale upon any amounts due
under this Lease from Tenant to Landlord and upon the expense
incident to the removal and sale of said effects.
ARTICLE 13
REPAIRS
13.1
Tenant . By entry hereunder, Tenant accepts the Premises as
being in good and sanitary order, condition and repair. Tenant, at
Tenant’s sole cost and expense, shall keep, maintain and
preserve the Premises in its current condition and repair, and
shall, when and if needed, at Tenant’s sole cost and expense,
make all repairs to the Premises and every part thereof, including,
without limitation, Tenant’s trade fixtures, installations,
equipment and other personal property items within the Premises;
entrances, lobbies and other public areas of the Premises; all
plumbing and sewage facilities (including all sinks, toilets,
faucets and drains), and all ducts, pipes, vents or other parts of
the HVAC or plumbing system; all fixtures, interior walls, floors,
carpets and ceilings; all windows, doors, entrances, plate glass,
showcases and skylights (including cleaning interior surfaces); all
electrical facilities and all equipment (including all lighting
fixtures, lamps, bulbs, tubes, fans, vents, exhaust equipment and
systems); and any automatic fire
extinguisher
equipment in the Premises. With respect to utility facilities
serving the Premises (including electrical wiring and conduits, gas
lines, water pipes, and plumbing and sewage fixtures and pipes),
Tenant shall be responsible for the maintenance and repair of any
such facilities which serve only the Premises, including all such
facilities that are within the walls or floor, or on the roof of
the Premises, and any part of such facility that is not within the
Premises, but only up to the point where such facilities join a
main or other junction (e.g., sewer main or electrical transformer)
from which such utility services are distributed to other parts of
the Project as well as to the Premises. Tenant shall replace any
damaged or broken glass in the Premises (including all interior and
exterior doors and windows) with glass of the same kind, size and
quality. Tenant shall repair any damage to the Premises (including
exterior doors and windows) caused by vandalism or any unauthorized
entry. Tenant shall maintain continuously throughout the Lease Term
a service contract for the washing of all interior surfaces of
windows in the Premises with a contractor approved by Landlord,
which contract provides for the periodic washing of all such
windows at least once every one hundred twenty (120) days during
the Lease Term. Tenant shall furnish Landlord with copies of all
such service contracts, which shall provide that they may not be
canceled or changed without at least 30 days’ prior written
notice to Landlord. Tenant shall maintain, repair and replace when
necessary all HVAC equipment which services only the Premises, and
shall keep the same in good condition through regular inspection
and servicing, and maintain continuously throughout the Lease Term
a service contract for the maintenance of all such HVAC equipment
with a licensed HVAC repair and maintenance contractor approved by
Landlord, which contract provides for the periodic inspection and
servicing of the HVAC equipment at least once every ninety (90)
days during the Lease Term. If the HVAC equipment is replaced
during the last twenty-four (24) months of the term of the Lease,
or if the cost of such replacement is equal to or greater than the
sum of $10,000.00, the costs of such replacement shall be amortized
over the useful life of such equipment and Tenant shall be required
to pay only the portion of the cost that is amortized over such
useful life during the remaining term of the Lease. Notwithstanding
the foregoing, Landlord may elect at any time to assume
responsibility for the maintenance, repair and replacement of such
HVAC equipment which serves only the Premises, provided, however,
that Landlord shall ascertain that the costs associated with such
maintenance shall be customary. Direct Expenses shall not include
the cost of maintenance, repair and replacement of such HVAC
equipment to the extent such maintenance, repair and replacement
solely benefits other tenants of the Project. Tenant shall furnish
Landlord with copies of all such service contracts, which shall
provide that they may not be canceled or changed without at least
30 days’ prior written notice to Landlord. All such repairs,
maintenance and replacements by Tenant shall be performed in a good
and workmanlike manner. Tenant shall, upon the expiration or sooner
termination of the term hereof, surrender the Premises to Landlord
in the same condition as when received, usual and ordinary wear and
tear excepted. Landlord shall have no obligation to alter, remodel,
improve, repair, decorate or paint the Premises or any part
thereof. Tenant acknowledges, agrees and affirms that, except as
specifically provided herein, Landlord has made no representations
to Tenant respecting the condition of the Premises or the Project.
Without limiting the foregoing, Tenant shall, at Tenant’s
sole expense, be responsible for repairing any area damaged by
Tenant, Tenant’s agents, employees, invitees and visitors.
All repairs and replacements by Tenant shall be made and performed:
(a) at Tenant’s cost and expense and at such time and in such
manner as Landlord may reasonably designate, (b) by contractors or
mechanics approved by Landlord, which approval shall not be
unreasonably withheld, (c) so that same shall be at least equal in
quality, value and utility to the original work or installation,
(d) in a manner and using equipment and materials that will not
interfere with or impair the operations, use or occupation of the
Project or any of the mechanical, electrical, plumbing or other
systems in the Premises or the Project, and (e) in accordance with
the rules and regulations the Landlord may from time to time
promulgate (provided that to the extent such rules and regulations
promulgated by Landlord are inconsistent with this Lease, this
Lease shall govern) and all Applicable Laws. In the event Tenant
fails, in the reasonable judgment of Landlord, to maintain the
Premises in accordance with the obligations under the Lease,
Landlord shall have the right,
but
not the obligation, to enter the Premises and perform such
maintenance, repairs or refurbishing at Tenant’s sole cost
and expense (including a sum for overhead to Landlord equal to ten
percent (10%) of the cost of the maintenance, repairs or
refurbishing). Tenant shall maintain written records of maintenance
and repairs and shall use certified technicians to perform such
maintenance and repairs, as required by any Applicable Law. Tenant
shall promptly deliver to Landlord full and complete copies of all
service or maintenance contracts entered into by Tenant for the
Premises.
13.2
Landlord . Anything contained in Article
13.1 above to the contrary notwithstanding, as items of
Operating Expenses, Landlord shall repair and maintain the
structural portions of the Premises, including the foundations and
roof structure and shall contract for the washing of the external
surfaces of windows in the Premises no less than once every ninety
(90) days (provided that Tenant is not in Default). Landlord shall
not be liable for any failure to make any such repairs or to
perform any maintenance unless such failure shall persist for an
unreasonable time after written notice of the need of such repairs
or maintenance is given to Landlord by Tenant. Landlord shall not
be required to make any repair resulting from (i) any alteration or
modification to the Premises or to mechanical equipment within the
Premises performed by, or on behalf of, Tenant or to special
equipment or systems installed by, or on behalf of, Tenant, (ii)
the installation, use or operation of Tenant’s property,
fixtures and equipment, (iii) the moving of Tenant’s property
in or out of the Premises, (iv) Tenant’s use or occupancy of
the Premises in violation of Article 6 of this Lease or in a manner
not contemplated by the parties at the time of the execution of
this Lease, (v) the acts or omissions of Tenant or any employees,
agents, customers, visitors, invitees, licensees, contractors,
assignees or subtenants of Tenant (individually, a “Tenant
Party” and collectively, “Tenant’s
Parties”), (vi) fire and other casualty, except as provided
by Article 21 of this Lease or (vii) condemnation, except as
provided in Article 22 of this Lease. Landlord shall have no
obligation to make repairs under this Article 13.2 until a
reasonable time after (a) Landlord first becomes aware of the need
for such repairs, or (b) receipt of written notice from Tenant of
the need for such repairs, whichever is earlier. There shall be no
abatement of Rent during the performance of such work. Landlord
shall have no obligation during the Lease Term to remodel, repair,
improve, decorate or paint any part of the Premises or to clean,
repair or replace carpeting or window coverings. Landlord shall not
be liable to Tenant for injury or damage that may result from any
defect in the construction or condition of the Premises, nor for
any damage that may result from interruption of Tenant’s use
of the Premises during any repairs by Landlord. Tenant waives any
right to repair the Premises and/or the Common Area at the expense
of Landlord under any Applicable Laws including without limitation
Articles 1941 and 1942 of the California Civil Code.
ARTICLE 14
LIENS
Tenant
shall not permit any mechanic’s, materialmen’s or other
liens to be filed against the Premises or Project, nor against
Tenant’s leasehold interest in the Premises. Landlord shall
have the right at all reasonable times to post and keep posted on
the Premises any notices which it deems necessary for protection
from such liens. If any such liens are filed, Landlord may, without
releasing Tenant from any of its obligations, cause such liens to
be released by any means it shall deem proper, including payments
in satisfaction of the claim giving rise to such lien. Tenant shall
pay to Landlord at once, upon receipt of written notice from
Landlord, any sum paid by Landlord to remove such liens, together
with interest at three percent (3%) above the Reference Rate from
the date of such payment by Landlord. Tenant shall not be
responsible for any liens caused solely by other tenants of the
Project or by Landlord (except to the extent as otherwise provided
herein).
ARTICLE
15
ENTRY BY LANDLORD AND RESERVED RIGHTS OF LANDLORD
Landlord
shall at any and all times, subject to 24 hours verbal notice for
non-emergency purposes (with no notice required for emergency
purposes), have the right, while causing the minimum reasonable
disturbance to Tenant and the operation of Tenant’s business
on the Premises, to enter the Premises for any lawful reason and/or
to undertake the following, without limitation: to inspect the
Premises; to supply any service to be provided by Landlord to
Tenant hereunder; to show the Premises to prospective purchasers;
to post notices of nonresponsibility, to alter, improve or repair
the Premises or Project; to install, use, maintain, repair, alter,
relocate or replace any pipes, ducts, conduits, wires, equipment or
other facilities in the common areas or the Premises or Project; to
grant customary easements on the Project, dedicate for public use
portions thereof and record customary covenants, conditions and
restrictions affecting the Project and/or amendments to existing
CC&Rs which do not unreasonably interfere with Tenant’s
use of the Premises; change the name of the Premises or Project;
affix reasonable signs and displays; and, during the last nine (9)
months of the Lease Term (or if the Lease is extended, the
Extension Term) place signs for the rental of the Premises and show
the Premises to prospective tenants, all without being deemed
guilty of any eviction of Tenant and without abatement of Rent.
Landlord may, in order to carry out any of the foregoing purposes,
erect scaffolding and other necessary structures where required by
the character of the work to be performed. Tenant hereby waives any
claim for damages for any injury or inconvenience to or
interference with Tenant’s business, any loss of occupancy or
quiet enjoyment of the Premises, and any other loss in, upon and
about the Premises. Landlord shall at all times have and retain a
key with which to unlock all doors in the Premises. Landlord shall
have the right to use any and all reasonable means which Landlord
may deem proper to open said doors in an emergency in order to
obtain entry to the Premises. Any entry to the Premises obtained by
Landlord by any of said means, or otherwise, shall not be construed
or deemed to be a forcible or unlawful entry into the Premises, or
any eviction of Tenant from the Premises or any portion thereof,
and any damages caused on account thereof shall be paid by Tenant.
It is understood and agreed that no provision of this Lease shall
be construed as obligating Landlord to perform any repairs,
alterations or decorations except as otherwise expressly agreed
herein by Landlord.
ARTICLE
16
UTILITIES AND SERVICES
Tenant shall be responsible for contracting with, and paying
directly for, all necessary utility companies and providers to
provide to the Premises all heat, light, gas, power, electricity,
telephone and all other utilities required by Tenant and/or the
Premises. Tenant shall pay for all heat, light, gas, power,
electricity, telephone or other service metered, chargeable or
provided to or used by the Tenant and/or the Premises; provided
however that Tenant shall not be responsible for contracting with
utility companies and providers to provide solely to the Common
Areas such utilities, but Tenant shall be responsible to pay
Tenant’s Percentage of the same. Landlord reserves the right
to install separate meters for any such utility and charge tenant
for the cost of such installation. Subject to the provisions of
Article 21, in no event shall Landlord incur any liability as a
result of any interruption of the provision of any of the foregoing
utility services to Tenant. In addition, Tenant shall not be
entitled to any abatement or reduction of rent by reason of such
interruption and Tenant shall not be relieved from the performance
of any covenant or agreement in this Lease because of such
interruption. Tenant shall have the right to install
telecommunications and electrical wiring and conduits between the
Premises and the building within the Project at 2860 De La Cruz
Boulevard (the “Communications Equipment”) in
accordance with the Work Letter.
ARTICLE
17
BANKRUPTCY
If
Tenant shall file a petition in bankruptcy under any provision of
the Bankruptcy Code as then in effect, or if Tenant shall be
adjudicated a bankrupt in involuntary bankruptcy proceedings and
such adjudication shall not have been vacated within thirty days
from the date thereof, or if a receiver or trustee shall be
appointed of Tenant’s property and the order appointing such
receiver or trustee shall not be set aside or vacated within ninety
(90) days after the entry thereof, or if Tenant shall assign
Tenant’s estate or effects for the benefit of creditors, or
if this Lease shall, by operation of law or otherwise, pass to any
person or persons other than Tenant, then in any such event
Landlord may terminate this Lease, if Landlord so elects, with
written notice of such election and with or without entry by
Landlord. Neither Tenant nor any person claiming through or under
Tenant or by virtue of any statute or order of any court shall be
entitled to possession of the Premises but shall surrender the
Premises to Landlord. Nothing contained herein shall limit or
prejudice the right of Landlord to recover damages by reason of any
such termination equal to the maximum allowed by any statute or
rule of law in effect at the time when, and governing the
proceedings in which, such damages are to be proved; whether or not
such amount is greater, equal to, or less than the amount of
damages recoverable under the provisions of this Article
17.
ARTICLE
18
INDEMNIFICATION
Tenant
shall indemnify, protect, defend (by counsel reasonably acceptable
to Landlord) and hold harmless Landlord and Landlord’s
affiliated entities, and each of their respective members,
managers, partners, directors, officers, employees, shareholders,
lenders, agents, contractors, successors and assigns from and
against any and all claims, judgments, causes of action, damages,
penalties, costs, liabilities, and expenses, including all costs,
reasonable attorneys’ fees, expenses and liabilities incurred
in the defense of any such claim or any action or proceeding
brought thereon, arising at any time