Exhibit
10.4
COMMERCIAL
LEASE
BETWEEN
MICRON
TECHNOLOGY, INC.
LANDLORD
AND
GTG PC HOLDINGS,
LLC
TENANT
COMMERCIAL LEASE
This Lease Agreement ("Lease") is
effective April 30, 2001, between Micron Technology, Inc., a
Delaware corporation, ("Landlord"), and GTG PC Holdings, LLC, a
Delaware limited liability company ("Tenant"). GTG PC Holdings,
LLC, will assign its interest in this Lease to Micron PC, LLC, an
entity that shall be formed on or before the Commencement Date as
defined below.
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1.
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BASIC PROVISIONS . The following basic provisions are a part of
this Lease:
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1.1
Landlord . Micron Technology, Inc., is the "Landlord"
with offices at 8000 South Federal Way, Boise, Idaho
83716.
1.2
Tenant . GTG PC Holdings, LLC, a Delaware limited
liability company, is the "Tenant" with offices at 6260 Lookout
Road, Boulder, Colorado 80301, upon the assignment of this lease by
GTG PC Holdings, LLC, to Micron PC, LLC, the Tenant shall be Micron
PC, LLC, with offices at 900 E. Karcher Road, Nampa, Idaho 83687
and Micron PC, LLC shall be subject to all the provisions of this
Lease. Upon the assignment of this Lease from GTG PC Holdings, LLC,
to Micron PC, LLC, GTG PC Holdings, LLC, shall have no further
interest in or obligations under this Lease as Tenant.
1.3
Premises. The "Premises" are located at 900 E. Karcher
Road, Nampa, Idaho, and consist of certain land and improvements,
particularly described in Exhibit "A", attached hereto and
incorporated herein by this reference. The Premises consist of one
building (Phase 3 Building) and the parcel upon which it is
located, as designated in Exhibit "A". The Premises are part of a
larger facility including the building identified as the
“Phase 1&2 Building.”
1.4
Permitted Use.
The use of the Premises permitted
under this Lease shall be in conformance with local, state and
federal laws and shall be limited to electronics manufacturing and
assembly, distribution, general office use and other lawful
ancillary services related to such manufacturing and assembly,
except as may otherwise be authorized in writing by Landlord
("Permitted Use"). In no event shall the Premises be utilized for
any purpose that competes directly with the Landlord’s
business of designing and manufacturing semiconductor memory
products. In addition to the right to use the Premises, Tenant and
its invitees shall have the non-exclusive right to use all
walkways, sidewalks, driveways, and Common Facilities (as defined
below) which may now or hereafter be located at Landlord's real
property located adjacent to the Premises, provided, however that
Landlord shall have the right and ability to reconfigure, close or
remove any walkways, sidewalks, driveways, and Common Facilities so
long as such reconfiguration, closure or removal does not
unreasonably interfere with Tenant’s access to or use of the
Premises and/or the Common Facilities. Notwithstanding the
foregoing, Landlord shall have the right to separate the Premises
from the rest of the facilities located at the site and provide
Tenant with access to the Premises from both Madison Avenue and
Birch Lane and Landlord shall have the right to close or remove
those Common Facilities identified in Section 4.4(i). Landlord
shall notify Tenant sixty (60) days prior to any reconfiguration,
closure, removal or separation.
1.5
Term and Commencement
Date. The Term of this
Lease shall commence on the date that Micron PC acquires the
personal computer manufacturing operation of Micron Electronics,
Inc., currently located on the Premises ("Commencement Date"). The
actual date of the Commencement Date shall be entered on the
Memorandum of Lease provided for in Section 11.4 below. The Term
shall end at midnight of the day that is the first anniversary of
the Commencement Date ("Initial Term"), unless terminated earlier
as provided in either Section 4.11 or Section 9.1, or extended as
provided in Section 3.2. The Initial Term and any
Renewal
Term(s), as defined below, are the
"Term" of this Lease. Landlord and Tenant shall execute a
memorandum certifying the Commencement Date within thirty (30) days
after that date.
1.6
Base Rent . Tenant shall pay to Landlord during the
Initial Term, annual Base Rent of Two Million Nine Hundred Thirteen
Thousand One Hundred Eight dollars ($2,913,108.00), in monthly
installments of Two Hundred Forty-Two Thousand Seven Hundred
Fifty-Nine Dollars ($242,759) ("Base Rent"). Tenant's obligations
under this Lease commence as of the Commencement Date. The Base
Rent during any Renewal Term shall be as agreed by the parties. In
the event that the parties cannot mutually agree upon Base Rent for
any Renewal Term within sixty (60) calendar days of Tenant's Notice
of Exercise pursuant to Section 3.3, then the Base Rent shall be
the fair market Base Rent determined as follows: each party shall
submit to the other party a writing stating such party's figure for
fair market Base Rent; each party shall designate a commercial real
estate agent with at least five (5) years real estate experience in
the Nampa area; the two (2) agents shall agree upon a third agent
with at least five (5) years real estate experience in the Nampa
area; and such third agent shall identify which figure such agent
believes is closest to the fair market Base Rent. Base Rent shall
be the figure designated by the third agent as the fair market Base
Rent. The parties shall share equally the cost of such third agent.
If the two (2) agents cannot agree on such third agent, then either
party may apply to the Canyon County or Ada County Court to select
such third agent. Notwithstanding the forgoing, the Base Rent per
square foot for any Renewal Term will not be less than the Base
Rent per square foot for the Initial Term.
1.7
Services . Landlord shall provide possession of the
Premises to Tenant and shall perform such maintenance and repair as
is set forth in Section 4.4 and 5.3. Tenant shall be responsible
for all other obligations relating to the use and enjoyment of the
Premises, except as hereinafter expressly provided.
1.8
Security Deposit.
Tenant shall, on the effective date
of this Lease, deposit with Landlord the sum of One Hundred
Thousand Dollars ($100,000.00). Said deposit may be commingled with
Landlord’s general funds and shall be held by Landlord,
without liability for interest, as security for the faithful
performance by Tenant of all of the terms, conditions, and
covenants of this Lease. If any amount of Rent payable by Tenant to
Landlord shall be overdue and unpaid or should Landlord make
payments on behalf of Tenant, or Tenant shall fail to perform any
of the terms of this Lease, then if any such failure or defaults
remain uncured after applicable notice and cure periods, Landlord
may, at its option and without prejudice to any other right or
remedy which Landlord may have on account thereof, appropriate the
entire amount of said deposit and apply said entire amount or so
much thereof as may be necessary to compensate Landlord toward the
payment of Rent or loss or damage sustained by Landlord due to such
breach or default on the part of Tenant. After application of all
or part of said deposit as above provided, Tenant shall forthwith
upon demand restore said deposit to the sum of One Hundred Thousand
Dollars ($100,000.00). Should Tenant comply with all of the terms
of this Lease, said deposit shall be returned to Tenant at the end
of the Term. In the event of bankruptcy or other debtor-creditor
proceedings against Tenant, such amounts from the deposit may be
appropriated and shall be deemed to be applied first to the payment
of all Rent due to Landlord for all periods prior to filing of such
bankruptcy or other debtor-creditor proceeding. Such appropriation
or use of the Security Deposit by Landlord shall not constitute an
election of remedies or waiver of any remedy to which
Landlord’s is legally entitled.
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2.
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GRANT OF PREMISES AND POSSESSION.
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2.1
Grant of Premises
. Landlord leases to Tenant and
Tenant leases from Landlord the Premises subject to the terms and
conditions of this Lease.
2.2
Possession
. Landlord shall deliver possession
of the Premises in the Premises' existing condition (including the
rights, privileges, benefits, rights-of-way and easements now or in
the future appurtenant to the Premises) to Tenant on the
Commencement Date free and clear of all tenancies and occupancies.
Tenant accepts the Premises “As Is.” Landlord makes
no
representation or warranty as to the
conditions of the Premises or the suitability or desirability of
the Premises for Tenant’s permitted use. During the Term,
Landlord covenants on behalf of itself and its respective
successors and assigns to provide quiet and peaceable possession of
the Premises to Tenant.
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3.
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TERM AND RENEWAL.
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3.1
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Initial Term. The Initial Term of this Lease is set forth in
Section 1.5.
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3.2
Renewal Terms
. Tenant has the right and option to
extend the Term of this Lease for three (3) additional consecutive
periods of one (1) year each ("Renewal Term") beyond the expiration
of the Initial Term upon the terms and conditions set forth in this
Lease ("Renewal Option"). Tenant may exercise Tenant's Renewal
Option only if Tenant at the time of exercise and at the beginning
of the option Term is not in default beyond any period provided by
this Lease for the curing of the default.
3.3
Tenant's Notice of Exercise of
Renewal Option . Tenant
may exercise Tenant's Renewal Option by giving written notice of
the exercise to Landlord not more than three hundred sixty (360) or
less than ninety (90) calendar days before the expiration of the
then existing Term ("Option Notice Period").
4.1
Definition of Rent
. The word "Rent" includes the Base
Rent, any amounts identified herein as "Additional Rent," and any
other amount payable by Tenant to Landlord under this
Lease.
4.2
Payment of Rent
. Tenant agrees to pay Landlord,
without offset or deduction for any reason, the Rent for the
Premises, as and when provided herein.
4.3
Triple Net Lease.
The parties intend that this Lease
be a net, net, net lease. Therefore, in addition to Tenant's
payment of Base Rent, Tenant shall be obligated to pay and shall
pay all taxes or other assessments upon the Premises, insurance
premiums (except as provided below), repairs and maintenance costs
(except for structural repairs identified in Section 5.3 and other
obligations which are expressly identified as Landlord's
responsibility), any and all costs, charges and obligations which
may arise due to any easement, maintenance agreement, common area
agreement, or the like, Operating Costs and Electrical Costs as set
forth below in Sections 4.4 and 4.6 which are in addition to all
Utility expenses for Utility services provided to the Premises as
set forth in Section 5.4, in addition to its share of the all sewer
and water charges, security, or any other expenses or charges
related to the Premises, all of which are the responsibility of
Tenant regardless of whether the expense or charge is specifically
considered elsewhere in this Lease. The costs and expenses
identified in this Section 4.3 are not intended to be an exhaustive
or exclusive list of Tenant's obligations, which are specifically
described below, but are merely intended to provide a description
of the types of costs and expenses for which Tenant will be
obligated under the Lease.
4.4
Allocation of Electrical Costs
and Operating Costs .
Landlord shall be solely responsible for and shall promptly pay all
charges, when due, for electrical service for the Premises
("Electrical Costs"). Landlord shall be solely responsible for
maintaining and repairing the Common Facilities and shall promptly
pay all charges, when due, for such repair and maintenance. Tenant
shall be responsible for its share of the operating costs (the
"Operating Costs") of the Premises which include the maintenance,
operation and repair of the Common Facilities together with the
cost of liability insurance relating to the Common Facilities
(which liability insurance shall be maintained by Landlord and
which shall name Tenant as an additional insured). For purposes
hereof, the Common Facilities shall mean (i) the landscape area,
the volleyball and basketball courts, and the picnic area each as
depicted on Exhibit A1 not located
within the Premises but available
for use by Tenant and Tenant’s employees; (ii) the retention
pond, the fire suppression system, the submetering station; and
(iii) all other utility systems or services which are not
separately metered and which service both the Phase 1&2
Building and the Phase 3 Building, the water lines and any and all
lines, pipes, conduit and the like which connect such systems and
utilities to the Premises. Notwithstanding the foregoing, Landlord
shall only be responsible for the maintenance and repair of the
electrical system located on the Premises up to the main service
entrance breaker located at or on the Phase 3 Building and any
other utility systems and services included in as Common Facilities
up to the point at which they enter the Phase 3 Building. In
addition to Base Rent, Tenant shall be obligated to pay and shall
pay its share of Electrical Costs and Operating Costs in
conformance with Section 4.6 below. In no event shall Tenant's
share of Electrical Costs and Operating Costs include the cost of
any capital expenditures, or any costs that were incurred solely
for the benefit of the Phase 1&2 Building. Unless the Premises
are separately metered, Landlord will invoice Tenant monthly for
its share of such Electrical Costs and Operating Costs as
Additional Rent.
4.5
Electrical Costs and Operating
Costs Documentation and Reconciliation. All Additional Rent invoices shall include
complete copies of all invoices, statements and documents
supporting the Electrical Costs and Operating Costs being billed,
as well as complete explanation and documentation of any allocation
(hereafter collectively referred to as "Backup Invoices"). Tenant
shall pay such Additional Rent in full within thirty (30) days
after its receipt of the Backup Invoices. Tenant shall not be
obligated to reimburse the Landlord for such invoice that Tenant
does not receive with Backup Invoices within one hundred fifty
(150) days after the date the expense relating to such Electrical
Cost was paid.
4.6
Calculation of Tenant's Share of
Costs. Tenant's share of
Operating Costs and the Electrical Costs shall be the percentage
derived by dividing the total square footage of the floor area of
the Premises (340,714 square feet) by the total square footage of
the floor area of the Premises and the Phase 1&2 Building
(591,639 square feet).
4.7
Inspection of Records.
Tenant may, upon not less than ten
(10) days' prior written notice to the Landlord, inspect the
Landlord's records for all Electrical Costs and Operating Costs
incurred during the preceding calendar year at the Landlord's
general offices or at such other location reasonably designated by
the Landlord at any time during reasonable business hours within
one (1) year after the end of said calendar year. If said
inspection reveals an overpayment of Electrical Costs or Operating
Costs, the Landlord shall reimburse Tenant any such overpayment
within thirty (30) days after receipt of notice of determination,
and of the amount, of such overpayment. If said inspection reveals
that the Landlord overstated Electrical Costs or Operating Costs
(singularly or collectively) by more than five percent (5%), the
Landlord shall reimburse Tenant for all costs reasonably incurred
in making such inspection within thirty (30) days after receipt of
notice of determination, and of the amount of any such
misstatement. The Landlord's expenses for any calendar year shall
be deemed correct if Tenant does not give the Landlord written
notice of any such overpayment or underpayment within the one (1)
year period provided.
4.8
Date and Form of Rent
Payments . Base Rent
payments shall commence on the Commencement Date and shall be paid
each month in advance. Each Base Rent payment subsequent to such
initial payment of Base Rent shall be made on the first day of each
calendar month during the Term. Rent shall be payable at the
Landlord's address set forth in this Lease or such different
address as Landlord shall provide to Tenant by written notice. In
the event Tenant fails to pay Rent on or before the tenth (10th)
day of each month, in addition to any other remedy Landlord may
have, Tenant shall pay to Landlord a late charge of five percent
(5%) of the amount of the late payment.
4.9
Partial Payments.
Acceptance by Landlord of any
partial payment of Base Rent shall not constitute a waiver of the
obligation of the Tenant to pay the full amount of the Rent payment
then due, or abrogate any late charge accruing.
4.10
Rent Proration.
For any fractional month occurring
during the Term, the Base Rent and any adjustments to the Base Rent
payable for the fractional month shall be prorated based on the
ratio that the number of days in the fractional month bears to the
total number of days in that calendar month.
4.11
Early Termination
. Tenant may terminate this Lease
as to the entire Premises, with no further obligation except for
those continuing representations, warranties, and indemnities set
forth herein, upon ninety (90) calendar days written notice to
Landlord.
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5.
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OPERATION OF PREMISES.
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5.1
Tenant's Use of
Premises. The Premises
shall be occupied and used by Tenant only for the Permitted Use and
for no other purpose.
5.2
Tenant's Maintenance
Obligations. Tenant
shall, at Tenant's sole expense keep and maintain the Premises in
good condition and repair. Tenant's maintenance and repair
obligation (a) includes, but is not limited to, all plumbing,
underground utilities, sewer systems, drainage systems, heating,
air conditioning, ventilating, electrical, lighting,
telecommunications, fire suppression, interior walls, ceilings,
floors, windows, doors, plate glass, cabinets, landscaping, parking
area, pavement, and sidewalks; (b) includes the repair,
replacement, payment or performance of all obligations that are
required under any common area agreement, restriction, or easement
agreement to which the Premises are subject; (c) includes the
prompt extermination of termites, rodents, and other vermin; and
(d) excludes all maintenance and repair obligations which are
expressly set forth as the Landlord's responsibility in Sections
4.4 and/or 5.3. Tenant has and shall diligently and timely perform
all maintenance and repair obligations that are not expressly set
forth as the responsibility of Landlord in Sections 4.4 and/or 5.3.
For the avoidance of doubt, Tenant is not obligated to pay or bear
the cost of Landlord's Maintenance and/or Repair obligations as
provided in Section 4.4 above or 5.3 below. In the event of any
maintenance undertaken by Tenant that requires the closure of any
portion of the Premises, the utilization of machinery or equipment
not generally located on the Premises in the ordinary course of
Tenant performing maintenance, the interruption of electrical
service or any Utilities or may jeopardize the safety of Landlord's
employees, Tenant shall provide notice of such maintenance to and
shall coordinate such with Landlord as set forth in Section 5.2.
Tenant shall make all improvements required by any governmental
agency to the Premises relating to Tenant’s specific use of
the Premises. In the event that Tenant undertakes any maintenance,
repair or improvement to the Premises, Tenant shall also be
responsible for any additional improvements to the Premises
required by a governmental agency as a result of or arising out of
such maintenance, repair or improvements, regardless of whether
such relate to Tenant’s specific use of the
Premises.
5.3
Landlord's Maintenance and Repair
Obligations . Landlord,
at Landlord's sole cost and without reimbursement from Tenant, is
required to repair and maintain all material structural defects and
damage, including replacement if necessary, by way of example and
not by way of limitation, to the roof, outer walls, and
foundations, unless the defects or damage was caused by Tenant or
was part of a structural repair or improvement caused by Tenant.
Except as stated in this Section and/or Section 4.4 above, Landlord
is not required to perform any maintenance, repairs, replacements,
improvements or alterations at any time. In the event of any
maintenance undertaken by Landlord that requires the closure of any
portion of the Premises or Common Facilities, the utilization of
machinery or equipment not generally located on the Premises or
Common Facilities, in the ordinary course of Landlord performing
maintenance, the interruption of electrical service or any
Utilities or may jeopardize the safety of Tenant's employees,
Landlord shall provide notice of such maintenance to and shall
coordinate such with Tenant as set forth in Section 5.3. Except as
provided in Section 5.2 above, Landlord shall make all improvements
required by any governmental agency to the Premises which do not
relate to Tenant’s specific use of the Premises.
5.4
Utilities.
Tenant shall be solely responsible
for and shall promptly pay all charges, when due, for water,
natural gas, telephone, cable, computer, security and any other
utility or other service used upon or furnished to the Premises or
for common area charges required by any easement, restrictive
covenant or common area agreement of record, including deposits
(collectively "Utilities"). Tenant shall not be responsible for any
costs or expense associated with the future extension of any
Utility service to the property unless such Utility extension
occurs at the request of Tenant. Additionally, unless caused by the
negligent or intentional acts or omissions of Landlord or its
representatives, Landlord shall not be liable in damages or
otherwise for any failure or interruption of (i) any Utility
service being furnished to the Premises, or (ii) the heating,
ventilating and air conditioning system, if any. Unless caused by
the negligent or intentional acts of Landlord, no such failure or
interruption, whether resulting from a casualty or otherwise, shall
entitle Tenant to terminate this Lease or to abate the payments
Tenant is required to make under this Lease.
5.5
Security. Tenant shall provide, maintain and pay for such
security services as Tenant may elect to obtain for the interior of
the Phase 3 Building and only those exterior areas immediately
adjacent to the Phase 3 Building. Landlord shall have no obligation
to provide security services for or on the Premises. However,
Landlord shall have the exclusive right, but no obligation, to
provide and pay for security on the Premises outside the Phase 3
Building.
5.6
Trash/Cardboard.
Tenant shall provide, maintain and
pay for trash/cardboard receptacles on the Premises in which to
place trash/cardboard and shall cause the trash to be removed from
the area as often as is reasonably necessary.
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5.7
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INTENTIONALLY OMITTED
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5.8
Signs. After the Commencement Date, no interior and
exterior signs on the Premises (including building directories,
wall and door signs, and exterior building signs) shall be
installed, replaced or improved by Tenant without the Landlord's
prior written consent, which shall not be unreasonably withheld or
delayed. All such installation, replacement or improvement shall be
at Tenant's sole cost, expense and liability. All signs shall be
installed to avoid structural overloading of the Premises. All
signs placed or maintained on the Premises shall be subject to and
comply with all applicable ordinances and public
regulations.
5.9
Tenant's Duty to Notify Landlord
of Construction. At least
twenty (20) calendar days prior to starting any construction work
on or at the Premises (for alterations, repair of fire or casualty,
maintenance described in Section 5.2 requiring prior notice to
Landlord, or other construction), Tenant shall notify Landlord of
the date the work shall commence. If the construction work will
require the Landlord's consent pursuant to Section 5.10, then
Tenant shall also provide Landlord with a complete set of
construction drawings for Landlord's prior review. Upon the
completion of any work Tenant shall immediately record any
applicable "Notice of Completion" in the public records of Canyon
County, Idaho, and provide Landlord with as built drawings for the
work performed.
5.10
Limitation On
Alterations. No
structural or exterior alteration or addition to the Premises, and
no other alteration or addition to the Premises costing more than
Ten Thousand Dollars ($10,000.00) per alteration or addition shall
be undertaken or made by Tenant without the prior written approval
of Landlord, which approval shall not be unreasonably withheld or
delayed. During the first six (6) months of the Initial Term,
Tenant intends to make intensive, nonstructural alterations to the
Phase 3 Building costing no more than One Hundred Thousand Dollars
($100,000.00)(the “Initial Alterations”). The Initial
Alterations shall not require the approval or Landlord and shall
neither reduce the market value of the Phase 3 Building, nor damage
or reduce the structural integrity of the Phase 3 Building. The
Initial Alterations shall be completed in a first class and
workmanlike manner after Tenant has obtained all necessary
governmental consents, approvals and permits. Tenant shall comply
in all other regards with the provisions of Section 5.9 regarding
the Initial Alterations.
5.11
Contractors Used in
Construction . Tenant
shall retain a licensed and bonded contractor that is approved by
Landlord (whose approval shall not be unreasonably withheld or
delayed), to perform any construction work (for alterations, repair
of fire or casualty, or other construction). The contractor shall
be bonded and carry public liability and property damage insurance,
standard fire and extended coverage insurance, with vandalism and
malicious mischief endorsements, during the period of construction
with property damage limits sufficient to cover the replacement
cost of the Premises.
5.12
Tenant's Hazardous Material
Use . Tenant shall not
cause or permit any Hazardous Material to be brought upon, kept,
used, in, on, from or about the Premises by Tenant, its agents,
employees, contractors, customers, clients, patients, guests or
invitees except as incidental to Tenant's permitted use of the
Premises and only in quantities that are less than the quantities
that are required to be reported to governmental or other
authorities under applicable law or regulations. Tenant shall
comply with all applicable laws and regulations regulating Tenant's
use, handling, reporting, storage, discharge and disposal of
Hazardous Material. As used in the Lease, the term "Hazardous
Material" means any hazardous or toxic substance, material or waste
which is or becomes regulated by any federal, state or local
governmental authority or political subdivision. The term
"Hazardous Material" includes, without limitation, any material or
substance that is (i) defined as a "hazardous substance" under
applicable law, (ii) petroleum, (iii) asbestos, (iv)
polychlorinatedbiphenyl ("PCB"), (v) designated as a "hazardous
substance" pursuant to Section 311 of the Federal Water Pollution
Control Act (33 U.S.C. '1321), (vi) defined as a "hazardous waste"
pursuant to Section 1004 of the Solid Waste Disposal Act (42 U.S.C.
'6903), (vii) defined as a "hazardous substance" pursuant to
Section 101 of the Comprehensive Environmental Response,
Compensation and Liability Act (42 U.S.C. '9601), (viii) defined as
a "regulated substance" pursuant to Section 9001 of the Solid Waste
Disposal Act (Regulation of Underground Storage Tanks), 42 U.S.C.
'6991, (ix) considered a "hazardous chemical substance and mixture"
pursuant to Section 6 of the Toxic Substance Control Act (15 U.S.C.
' 2605), or (x) defined as a "pesticide" pursuant to Section 2 of
the Federal Insecticide, Fungicide and Rodenticide Act (7 U.S.C. '
136).
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5.13
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Real and Personal Property Taxes.
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5.13.1
Tenant's Payment of
Taxes . Tenant agrees to
pay before they become delinquent all taxes (both general and
special), assessments, or governmental charges lawfully levied or
assessed against the Premises or the Tenant's personal property
("Taxes"). If any such Taxes (other than Tenant's personal property
taxes) cover any period of time prior to or after the expiration or
termination of this Lease, Tenant's share of such taxes shall be
prorated to cover only that portion of the tax bill applicable to
the period that this Lease is in effect.
5.13.2
Tax Notices
. Promptly upon Landlord's receipt,
Landlord shall furnish to Tenant copies of all notices of
assessments or changes in valuation so that Tenant may exercise
Tenant's rights to challenge the assessments or valuations.
Landlord shall furnish to Tenant the Tax statement for the Premises
promptly upon receipt from the taxing authority in the event the
Tax statement is sent to Landlord. If allowed by the applicable
taxing authority, Tenant may request that all Tax bills and notices
be sent directly to Tenant. Tenant shall provide to Landlord copies
of all tax notices and assessments with regard to the Premises
received by Tenant, together with proof of payment
thereof.
5.13.3
Tenant's Challenge of
Taxes . If Tenant desires
to challenge any Tax, then Tenant shall provide Landlord with prior
written notice of the challenge, and Tenant may, at its sole cost
and expense (in its own name or in the name of Landlord, or in the
name of both, as Tenant may deem appropriate) contest any Tax. If
Tenant challenges any Tax, Tenant need not pay the disputed Tax
until the Tax is adjudged to be valid. In no event shall Tenant
allow a tax foreclosure or sale to proceed against the Premises,
and in the event of any tax foreclosure or sale Tenant shall either
promptly pay or bond against the Tax, as allowed by law. Landlord
agrees not to take any action which would extinguish or restrict
Tenant's rights to make or prosecute any
challenge and to reasonably
cooperate with Tenant in any challenge. If Landlord participates in
any challenge solely at the request of Tenant, Tenant shall
reimburse Landlord for all reasonable costs and expenses incurred
by Landlord as a result of Landlord's participation. At the
conclusion of the challenge, Tenant shall pay the Tax to the extent
that the Tax is held valid, plus all court costs, interest and
penalties and other charges relating to the Tax.
5.13.4
Tax on Rent
. Should any government impose a
tax, assessment, gross receipts tax, transaction tax, privilege
tax, sales tax or similar tax (other than an income or franchise
tax) on the Rent, such taxes and assessments shall constitute
"Taxes" and shall be paid by Tenant to the taxing authority. Tenant
shall, if necessary, file a tax return in Landlord's name and
provide a copy of the tax return to Landlord. If Landlord must pay
the tax or file the tax return, then Tenant shall, fourteen (14)
calendar days after demand from Landlord, reimburse Landlord for
the amount of the tax and the expense of preparing and filing the
tax return.
5.14
Covenant Against Liens
. Tenant will not directly or
indirectly create or cause to be created or to remain, and will
promptly discharge, at Tenant's sole expense, any mechanics' lien
or similar lien against the Premises which Tenant created or caused
to be created by Tenant's work on the Premises. Tenant has no
authority or power to cause or permit any mechanics' lien or
similar lien created by act of Tenant, operation of laws, or
otherwise to attach to or be placed upon Landlord's title or
interest in the Premises. Any lien against the Tenant shall attach
only to Tenant's leasehold interest in the Premises. Landlord will
not directly or indirectly create or cause to be created or to
remain, and will promptly discharge, at Landlord's sole expense,
any mechanics' lien or similar lien against the Premises which
Landlord created or caused to be created by Landlord's work on the
Premises. A party may, at the party's sole expense, contest any
lien, and the lien may remain pending resolution of the challenge.
The party challenging the lien shall indemnify and hold the other
party harmless from any and all loss, damage or expense occasioned
by the lien challenge. If the lien is adjudged to be valid, the
challenging party shall promptly pay and discharge the
lien.
5.15
Landlord's Right of
Entry . Subject to
complying with Tenant’s security measures, which measures
shall not unduly burden Landlord or Landlord’s agents and
upon prior reasonable notice, which notice shall be reasonable
under the circumstances, Landlord and Landlord's agents may enter
the Premises at all such times as may be necessary to (i) access,
inspect, maintain or repair the data and control centers located
within the Phase 3 Building that serve other portions of the
facility and (ii) inspect the general condition and state of repair
of the Premises. Landlord's entry shall be supervised by Tenant,
and Landlord shall not interfere with, or create a hazard to,
Tenant's business operations, except in the event of an emergency
arising within the Premises which endangers property or
persons.
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6.
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CHANGES IN THE PARTIES.
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6.1
Relationship of
Parties . Nothing
contained in this Lease shall be construed as creating the
relationship of principal or agent, employment, partnership or
joint venture. Neither the method of computation of Rent nor any
other provision of this Lease, nor any act of the parties, shall be
deemed to create any relationship other than that of landlord and
tenant.
6.2
Successors and Assigns
. This Lease shall benefit and bind
the successors and permitted assigns of Landlord and
Tenant.
6.3
Tenant's Assignment and
Subletting. Tenant may
not assign this Lease or sublet all or a part of the Premises
unless Tenant first obtains the consent of Landlord. Landlord's
consent may not be unreasonably withheld. However, the parties
agree that Landlord may reasonably withhold its consent to such
assignment or subletting if (i) such assignee or subtenant lacks
the requisite financial ability to perform the obligations set
forth herein as determined by Landlord or (ii) such assignee or
subtenant competes directly with Landlord’s current business
of designing and manufacturing semiconductor memory products as
determined by Landlord.
6.4
Permitted Transfers by Micron PC,
LLC . The issuance, sale,
encumbrance, other transfer of any interest in Tenant or the
assignment of this Lease or a subletting of all or any portion of
the Premises to (i) a purchaser that purchases substantially all of
the assets of any of the businesses conducted at the Premises by
Tenant, (ii) an entity which at the time of transfer then controls,
is controlled by, or is under common control with Tenant and
remains in control, controlled by or under common control with
Tenant, or (iii) an entity that results from a merger or
consolidation with Tenant, (collectively a “Permitted
Transferee”), shall not be deemed to be an assignment or
subletting requiring the Landlord's consent, provided that the
effect of which will not violate any of Subsection 6.3(i) - (ii)
above. The assignment and subletting permitted pursuant to
Subsections (i) - (iii) of this Section 6.4 shall be personal to
Micron PC, LLC and any Permitted Transferee.
6.5
Landlord's Transfer
. Landlord may sell, assign or
otherwise transfer the Premises without the consent of Tenant. If
Landlord should sell or transfer Landlord's interest in the
Premises, then effective with the date of the sale or transfer,
Landlord shall be released and discharged from any and all further
obligations and responsibilities under this Lease (except those
already accrued) upon written assumption by the buyer or transferee
of Landlord's liabilities under this Lease.
6.6
Attornment
. Tenant shall attorn to, and
recognize as successor Landlord under this Lease, any person that
purchases or obtains title to the Premises pursuant to (i)
foreclosure proceedings, (ii) exercise of the power of sale under a
deed of trust, (iii) a deed in lieu of foreclosure or similar
transfer, or (iv) any voluntary conveyance by Landlord; provided
that such person assumes and agrees to be bound by all of the
obligations of the Landlord under the Lease.
6.7
Subordination
. Tenant agrees that this Lease is
and shall remain subordinate to any subsequent mortgage or deed of
trust encumbering the Premises, together with any renewals,
modifications or extensions of subsequent mortgages or deeds of
trust, provided that Tenant receives a nondisturbance agreement
from the holder of such mortgage or deed of trust which provides
that if Tenant has not defaulted under this Lease (which default
shall have remained uncured after the giving of notice and the
expiration of any applicable cure periods), Tenant's tenancy and
Tenant's rights under this Lease shall not be di