CARIBBEAN/GENEVA INVESTORS,
a California limited partnership
and CROSSMAN PARTNERS, L.P.,
a California limited partnership
(“Landlord”)
and
ARUBA NETWORKS,
INC.,
a Delaware
corporation
(“Tenant”)
Dated as of September 22,
2009
|
|
|
|
|
|
|
Premises
|
|
|
|
|
|
|
|
Land
|
|
|
|
|
|
|
|
Declaration of
Covenants, Conditions and Restrictions
|
|
|
|
|
|
|
|
Rules and
Regulations
|
|
|
|
|
|
|
|
Form of Tenant
Estoppel Certificate
|
|
|
|
|
|
|
|
Subordination,
Nondisturbance and Attornment Agreement
|
- i -
|
|
|
|
|
|
|
September __,
2009
|
|
|
|
|
|
|
|
Caribbean/Geneva Investors, a California limited
partnership, and Crossman Partners, L.P., a California limited
partnership, Tenants In Common
|
|
|
|
|
|
|
The
|
Mozart
Development Company
|
|
|
|
|
|
|
|
|
|
|
c/o
|
The Mozart
Development Company
|
|
|
|
1068 East
Meadow Circle
|
|
|
|
Palo Alto, CA
94303
|
|
|
|
Attn: Christian
Keith & John Mozart
|
|
|
|
|
|
|
|
Aruba Networks,
Inc., a Delaware corporation
|
|
|
|
|
|
|
|
FOR
NOTICE AND FOR
BILLING :
|
|
|
|
|
|
|
|
Aruba Networks,
Inc.
|
|
|
|
1344 Crossman
Avenue
|
|
|
|
Sunnyvale, CA
94089
|
|
|
|
Attn: Chief
Financial Officer
|
|
|
|
|
|
|
|
The building
located at 1322 Crossman Avenue, Sunnyvale, California
|
|
|
|
|
|
|
|
The entire
Building as depicted on Exhibit
“A”
|
|
|
|
|
|
|
|
The Real
Property described on Exhibit
“B”
|
|
|
|
|
Rentable Area of the Premises:
|
|
52,325 rentable
square feet (“Rentable Area”)
|
|
|
|
|
|
|
|
All parking
spaces located on the Land
|
|
|
|
|
Tenant’s Use of the Premises:
|
|
General office,
research, development, manufacturing, storage and distribution,
production, marketing and distribution
|
|
|
|
|
|
|
|
Five (5) years
and Eleven Months commencing September 1, 2010 and terminating July
31, 2016. (the “Initial Term”), with the right to
extend for one (1)additional five (5) year term (“Extension
Term”) in accordance with Paragraph 43. The Initial Term, and
any Extension Term shall collectively be defined as the
“Term”.
|
|
|
|
|
|
|
|
September 1,
2010
|
|
|
|
|
|
|
|
July 31, 2016,
(subject to extension in accordance with Paragraph 43 to the last
date of the exercised Extension Term (if exercised)).
|
|
|
|
|
|
|
|
$1.00 per
rentable square foot of the Rentable Area of the
Premises.
|
|
|
|
|
|
|
|
On each
anniversary of the Commencement Date, the Monthly Base Rent shall
increase by three percent 3%) of the Monthly Base Rent for the
immediately prior year
|
- ii -
|
|
|
|
|
|
|
|
|
|
|
100%
|
|
|
|
|
|
|
|
One
Month’s Base ($52,325) plus an amount equal to Tenant’s
Share of Expenses and Taxes for one month
|
|
|
|
|
|
|
|
None
|
|
|
|
|
|
|
|
None
|
|
|
|
|
|
|
|
Cornish &
Carey
|
|
|
|
|
Broker’s Fee or Commission,
|
|
|
|
|
|
Landlord,
pursuant to separate agreement
|
No further text on this
page
- iii -
The foregoing
Basic Lease Information is hereby incorporated into and made a part
of this Lease. Each reference in this Lease to any of the Basic
Lease Information shall mean the respective information hereinabove
set forth and shall be construed to incorporate all of the terms
provided under the particular paragraph pertaining to such
information. In the event of any conflict between any Basic Lease
Information and the Lease, the latter shall control.
|
|
|
|
|
|
|
|
|
LANDLORD :
|
|
|
|
|
|
|
|
|
|
|
|
CARIBBEAN/GENEVA INVESTORS,
a California Limited Partnership
|
|
|
|
|
|
|
|
|
|
|
|
By: MOZAD, a
California Limited Partnership,
|
|
|
|
|
|
Its:
General Partner
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
By:
|
/s/ John
Mozart
|
|
|
|
|
John
Mozart
|
|
|
|
|
Its: Managing
General Partner
|
|
|
|
|
|
|
|
|
|
|
|
|
CROSSMAN
PARTNERS, L.P.,
a California Limited Partnership
|
|
|
|
|
|
|
|
|
|
|
|
By: MOZAD, a
California Limited Partnership
|
|
|
|
|
|
Its:
Managing General Partner
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
By:
|
/s/ John
Mozart
|
|
|
|
|
John
Mozart
|
|
|
|
|
Its: Managing
General Partner
|
|
|
|
|
|
|
|
|
|
|
|
|
By: The
Lovewell 2006 Irrevocable Trust fbo James Barry Lovewell, Dated
June 21, 2006 General Partner
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
By:
|
/s/ John B.
Lovewell
|
|
|
|
|
John B.
Lovewell, Co-Trustee
|
|
|
|
|
|
By:
|
/s/ Cynthia
Lovewell
|
|
|
|
|
Cynthia
Lovewell, Co-Trustee
|
|
|
|
|
|
|
|
|
|
|
|
|
By: The
Lovewell 2006 Irrevocable Trust fbo Jennifer Hilary Lovewell, dated
June 21, 2006
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
By:
|
/s/ John B.
Lovewell
|
|
|
|
|
John B.
Lovewell, Co-Trustee
|
|
|
|
|
|
By:
|
/s/ Cynthia
Lovewell
|
|
|
|
|
Cynthia
Lovewell, Co-Trustee
|
|
|
|
|
|
|
|
|
|
|
|
|
TENANT :
|
|
|
|
|
|
|
|
|
|
|
|
ARUBA NETWORKS,
INC.
a Delaware corporation
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
By:
|
|
/s/ Alexa
King
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Alexa
King
|
|
|
|
|
|
|
|
Its:
|
|
General
Counsel
|
|
|
|
|
|
|
|
|
|
|
|
|
- iv -
THIS LEASE
AGREEMENT (the “Lease”) is made and entered into as
of September___, 2009 , by and between CARIBBEAN/GENEVA
INVESTORS, a California Limited Partnership and CROSSMAN PARTNERS,
L.P., a California Limited Partnership, as Tenants in Common
(herein collectively called “Landlord”), and ARUBA
NETWORKS, INC., a Delaware corporation (herein called
“Tenant”).
Upon and subject
to the terms, covenants and conditions hereinafter set forth,
Landlord hereby leases to Tenant and Tenant hereby hires from
Landlord those premises (the “Premises”) outlined on
EXHIBIT A , comprising the entire rentable area in
the Building located at 1322 Crossman Avenue in Sunnyvale,
California (hereinafter referred to as the “Building”)
specified in the Basic Lease Information attached hereto. Prior to
the execution of this Lease, Tenant has reviewed and approved the
Rentable Area specified in the Basic Lease Information, which shall
be conclusive and binding on the parties for purposes of
calculating Rent and the TI Allowance hereunder notwithstanding any
measurement or remeasurement by Landlord, Tenant or any other party
that may now or hereafter indicate a different Rentable Area. The
Building, together with the associated land specified in the Basic
Lease Information and improvements is referred to as the
“Project.” The term “Common Area” shall
mean all areas and facilities within the Project that are not
designated by Landlord for the exclusive use of Tenant or any other
tenant or other occupant of the Project that are located outside
the perimeter (including footings) of the Building, including the
parking areas, access and perimeter roads, pedestrian sidewalks,
landscaped areas, trash enclosures, recreation areas and the
like.
1.
OCCUPANCY AND USE . Tenant may use and occupy the
Premises for the purposes specified in the Basic Lease Information
(“Permitted Use”), subject to the terms and conditions
of this Lease, and for no other use or purpose without the prior
written consent of Landlord. Landlord shall have the right to grant
or withhold consent to a use other than as specified in the Basic
Lease Information in its sole discretion. Tenant shall be entitled
to the nonexclusive use of the Common Area with Landlord and other
occupants (if any) of the Project in accordance with the Rules and
Regulations established by Landlord from time to time.
Notwithstanding anything to the contrary in the Basic Lease
Information or in this Lease, Tenant understands and agrees that
the Declaration of Covenants, Conditions and Restrictions
(“CC&Rs”) described in EXHIBIT C
encumbers the Project and that Tenant’s Occupancy and Use of
the Premises are restricted by, and Tenant shall fully comply with
any and all restrictions on the use of the Premises specified in,
such CC&Rs.
(a)
Term . The term of this Lease (the
“Term”) shall be for the period specified in the Basic
Lease Information (or until sooner terminated as herein provided),
commencing on the Commencement Date and expiring on the Expiration
Date. By occupying the Premises, Tenant shall be deemed to have
accepted the same as suitable for the purpose herein
intended.
(b)
Condition of Premises. Tenant acknowledges that it is
currently in possession of the Premises pursuant to a sublease
(“Existing Sublease”) under a lease between Landlord
and Harmonic, Inc. (“Existing Tenant”) dated as of
May 24, 2009 for the Premises (“Existing Lease”).
Accordingly, Tenant agrees that to continue in possession of in its
“as-is, where-is condition, with all faults” without
any agreements, representations, understandings or obligations on
the part of Landlord to perform any alterations, repairs or
improvements to the Premises except as expressly set forth in
paragraphs 2(c) and 7(a)(iii) of this Lease. Tenant acknowledges
that Landlord has not made any representation or warranty, express
or implied, with respect to the condition of the Premises, the
suitability or fitness of the Premises for the conduct of
Tenant’s Permitted Uses or for any other purposes, or the
actual dimensions of the Premises. In no event shall Landlord be
liable for any defect in the Premises or for any limitations on the
use of the Premises, except as expressly and specifically set forth
in this Lease.
(c)
Reimbursement for TI Work. Following execution of this
Lease, Tenant shall have the right (a) to paint the interior
Premises and to install new carpet and tile in the Premises
throughout the entire Premises (“Base TI Work”); and
(b) to repair the UPS (Uninterrupted Power System) that is
part of the Building
- 1 -
Systems; to
repair the lighting and the ceiling tile in the common areas of the
Building; and to make certain repairs to the HVAC system in the
server room (“Supplemental TI Work”)(the Base TI Work
and the Supplemental TI Work, together, the “TI Work”).
The TI Work shall be considered to be Alterations for purposes of
the Existing Lease, if performed prior to the Commencement Date,
and for purposes of this Lease, if performed after the Commencement
Date, and Tenant shall comply with the provisions of
Paragraph 6 of the Existing Lease or this Lease, as the case
may be, with respect thereto. Following the Commencement Date of
this Lease, and provided that Tenant is not in default of any of
its obligations under this Lease, Tenant shall be entitled to
reimbursement from Landlord for the actual cost of the TI Work
(“TI Allowance”), not to exceed Five Dollars ($5.00)
per Rentable Square Foot in the Premises; at such time as all of
the following have occurred: (i) Tenant has completed the TI
Work; (ii) Tenant has delivered to Landlord invoices showing
the actual cost of all of the TI Work and proof satisfactory to
Landlord that such invoices have been paid; (iii) Tenant has
delivered to Landlord and Landlord has approved in Landlord’s
reasonable discretion, executed unconditional mechanic’s lien
releases from any contractor and any subcontractor that supplied
labor or materials in connection with the TI Work. Landlord shall
be obligated to reimburse Tenant for the Supplemental TI Work only
on the condition that Tenant has also performed the Base TI Work.
In no event will the aggregate amount that Landlord is obligated to
reimburse Tenant for the Base TI Work and the Supplemental TI Work
exceed $5.00 per Rentable Square Foot. Landlord shall make payment
to Tenant within thirty (30) days of Tenant’s
satisfaction of all such conditions.
(d)
Existing Lease and Sublease. The term of the Existing Lease
expires as of August 31, 2010 and the Existing Tenant has not
exercised its option to renew under the Existing Lease. The term of
the Existing Sublease also expires as of August 31, 2010.
Tenant hereby acknowledges and confirms that Tenant has no further
rights to extend the Existing Sublease or continue in possession of
the Premises under the Existing Sublease following August 31,
2010.
3.
RENT; RENT ADJUSTMENTS; ADDITIONAL CHARGES FOR EXPENSES AND
TAXES .
(a)
Monthly Base Rent and Additional Charges . Commencing on the
Commencement Date and throughout the Term of this Lease, Tenant
shall the monthly base rent specified in the Basic Lease
Information, as adjusted pursuant to Paragraph 3(b) (as so adjusted
from time to time, “Monthly Base Rent”), on the first
day of each month, in advance, with the first month’s Monthly
Base Rent and Additional Charges for Expenses and Taxes (as defined
below) due upon execution of this Lease, in lawful money of the
United States (without any prior demand therefor and without
deduction or offset whatsoever, except as expressly provided in
Paragraphs 20 and 21 ) to Landlord or its Managing Agent at the
address specified in the Basic Lease Information or to such other
firm or to such other place as Landlord or its Managing Agent may
from time to time designate in writing. In addition, Tenant shall
pay to Landlord all charges and other amounts whatsoever as
provided in this Lease (“Additional Charges”) at the
place where the Monthly Base Rent is payable, and Landlord shall
have the same remedies for a Default in the payment of Additional
Charges as for a Default in the payment of Monthly Base Rent. As
used herein, the term “Rent” shall include all Monthly
Base Rent and Additional Charges (including, without limitation,
Additional Charges for Real Estate Taxes and Expenses pursuant to
Paragraph 3(c) below, and Additional Charges pursuant to Paragraphs
6, 7(e), 8, 10(d) and 23). If the Commencement Date occurs on a day
other than the first day of a calendar month, or the Expiration
Date occurs on a day other than the last day of a calendar month,
then the Monthly Base Rent and Additional Charges for such
fractional month shall be prorated on a daily basis.
(b)
Annual Adjustments in Monthly Base Rent . The Monthly Base
Rent under Paragraph 3(a) shall be adjusted throughout the Term
(including any Extension Term(s)) as provided in the Basic Lease
Information under the heading “Monthly Base Rent
Adjustment”.
(c)
Additional Charges for Expenses and Taxes .
(i)
Definitions of Additional Charges . For purposes of this
Paragraph 3(c), the following terms shall have the meanings
hereinafter set forth:
- 2 -
(A)
“ Tax Year ” shall mean each twelve
(12) consecutive month period commencing January 1st of the
calendar year during which the Commencement Date of this Lease
occurs, provided that Landlord, upon notice to Tenant, may change
the Tax Year from time to time to any other twelve
(12) consecutive month period and, in the event of any such
change, Tenant’s Share of Real Estate Taxes (as hereinafter
defined) shall be equitably adjusted for the Tax Years involved in
any such change.
(B)
“ Tenant’s Share ” shall mean the
percentage figure so specified in the Basic Lease
Information.
(C)
“ Real Estate Taxes ” shall mean all taxes,
assessments and charges levied upon or with respect to the Project
or any personal property of Landlord used in the operation thereof,
or Landlord’s interest in the Project or such personal
property. Real Estate Taxes shall include, without limitation, all
general real property taxes and general and special assessments,
charges, fees or assessments for transit, housing, police, fire or
other governmental services or purported benefits to the Project
(provided, however, that any refunds of Real Estate Taxes paid by
Tenant shall be credited against Tenant’s further obligation
to pay Real Estate Taxes during the Term or refunded to Tenant if
received by Landlord within one year after the Expiration Date),
service payments in lieu of taxes, and any tax, fee or excise on
the act of entering into this Lease, or any other lease of space in
the Building, or on the use or occupancy of the Building or any
part thereof, or on the rent payable under any lease or in
connection with the business of renting space in the Building, that
are now or hereafter levied or assessed against Landlord by the
United States of America, the State of California, or any political
subdivision, public corporation, district or any other political or
public entity, and shall also include any other tax, fee or other
excise, however described, that may be levied or assessed as a
substitute for, or as an addition to, in whole or in part, any
other Real Estate Taxes, whether or not now customary or in the
contemplation of the parties on the date of this Lease. Real Estate
Taxes shall not include franchise, transfer, inheritance or capital
stock taxes or income taxes measured by the net income of Landlord
from all sources unless, due to a change in the method of taxation,
any of such taxes is levied or assessed against Landlord as a
substitute for, in whole or in part, any other tax that would
otherwise constitute a Real Estate Tax. Additionally, Real Estate
Taxes shall not include any assessments or like charges to pay for
any remediation of contamination from any Hazardous Substance
(defined in Paragraph 41 hereof) existing at the Project as of
the Commencement Date unless introduced in, on, under or about the
Premises by Tenant or Tenant’s employees, agents, contractors
or invitees. Real Estate Taxes shall also include reasonable legal
fees, costs and disbursements incurred in connection with
proceedings to contest, determine or reduce Real Estate Taxes;
provided that such fees, costs and disbursements do not exceed the
actual savings in Real Estate Taxes obtained by Tenant over the
Term of the Lease. If any assessments are levied on the Project,
Tenant shall have no obligation to pay more than that amount of
annual installments of principal and interest that would become due
during the Term had Landlord elected to pay the assessment in
installment payments, even if Landlord pays the assessment in
full.
(D)
“ Expenses ” shall mean the total costs and
expenses paid or incurred by Landlord in connection with the
management, operation, maintenance and repair of the Project,
including, without limitation (i) the cost of air
conditioning, electricity, steam, heating, mechanical, ventilating,
elevator systems and all other utilities, to the extent provided by
Landlord, and the cost of supplies and equipment and maintenance
and service contracts in connection therewith; (ii) the cost
of repairs and general maintenance and cleaning, subject to the
limitation on the annual cost of maintenance to the roof membrane
as set forth in paragraph 7(a)(i); (iii) the cost of fire,
extended coverage, boiler, sprinkler, public liability, property
damage, rent, earthquake (if Landlord elects to obtain it) and
other insurance for the Project obtained by Landlord, or otherwise
obtained by Landlord in connection with the Project, all including,
without limitation, insurance premiums and any deductible amounts
paid by Landlord, including, without limitation, the insurance
required by Paragraph 10(f); (iv) fees, charges and other
costs directly related to the operation of the Project (as distinct
from the operation of the partnership which owns
- 3 -
the Project),
including management fees, consulting fees, legal fees and
accounting fees, fees of all independent contractors engaged by
Landlord directly related to the operation of the Project or
reasonably charged by Landlord if Landlord performs management
services in connection with the Project, (though the management fee
shall not exceed the cap noted in the following paragraph);
(v) the cost of any capital improvements made to the Project
after the Commencement Date (excluding, however, any capital
improvements required by Laws that are Tenant’s
responsibility under Paragraph 5, which shall be paid directly
by Tenant pursuant to Paragraph 5), (and further excluding the
cost of any capital repairs or replacements to the roof structure,
including the roof membrane, that are the obligation of Landlord
pursuant to paragraph 7(a)(i), which shall be borne entirely by
Landlord, and the cost of any capital repairs or replacements to
the HVAC system that are the obligation of Landlord pursuant to,
and as limited by, paragraph 7(a)(iii), which shall be borne
entirely by Landlord). The cost of such capital improvements
incurred by Landlord , subject to the foregoing exclusions, shall
be amortized over the useful life of the capital item in question
as determined in accordance with generally accepted accounting
principles (“GAAP”), together with interest on the
unamortized balance at the greater of (x) the rate paid by
Landlord on funds borrowed from an institutional lender for the
purpose of constructing such capital improvements; or (y) 10%
per annum; provided, however, the amount of the cost of capital
improvements which may be included within Expenses pursuant to this
clause (v) shall be the greater of (I) the amount that
would be payable pursuant to the foregoing amortization or (II)
$.02 per square foot of the Rentable Area of the Premises per month
(and to the extent the amount under this clause (II) exceeds
the amount that would be payable under clause (I), such excess
shall be credited against the unamortized balance of the cost of
capital improvements in the inverse order in which they would be
payable by Tenant under clause (i)); and (vi) any other
reasonable expenses of any other kind whatsoever reasonably
incurred in managing, operating, maintaining and repairing the
Project. Any “deductible” amounts relating to capital
improvements required to be paid by Tenant hereunder in connection
with any property or earthquake insurance policy carried by
Landlord shall be amortized over the useful life of the restoration
work to which such deductible amount relates in accordance with
GAAP, in the same manner as other capital improvements that are
included in Expenses as provided above.
Notwithstanding
anything to the contrary herein contained, Expenses shall not
include, and in no event shall Tenant have any obligation to pay
for pursuant to this Paragraph 3 or Paragraph 7(a)7(b),
(aa) any rent payable pursuant to a ground lease, and debt
service (including, but without limitation, interest, principal and
any impound payments) required to be made on any mortgage or deed
of trust recorded with respect to all or any portion of the Project
other than debt service and financing charges imposed pursuant to
Paragraph 3(c)(i)(D)(v) above; (bb) depreciation;
(cc) the portion of a management fee paid to Landlord or
affiliate in excess of three percent (3%) of Monthly Base Rent and
Additional Charges for Expenses and Taxes (excluding the management
fee); (dd) costs occasioned by the fraud or willful misconduct
under applicable laws of Landlord or its agents, servants,
contractors, employees; (ee) costs for which Landlord has a
right of and has received reimbursement from others;
(ff) environmental pollution remediation related costs for
which Landlord has indemnified Tenant pursuant to
Paragraph 41(c); (gg) advertising or promotional
expenditures; and (hh) leasing commissions. All costs and
expenses shall be determined in accordance with GAAP which shall be
consistently applied (with accruals appropriate to Landlord’s
business).
(E)
“ Expense Year ” shall mean each twelve
(12) consecutive month period commencing January 1 of the
calendar year during which the Commencement Date of the Lease
occurs, provided that Landlord, upon notice to Tenant, may change
the Expense Year from time to time to any other twelve
(12) consecutive month period, and, in the event of any such
change, Tenant’s Share of Expenses shall be equitably
adjusted for the Expense Years involved in any such
change.
(ii)
Payment of Real Estate Taxes . With reasonable promptness
after Landlord has received the tax bills for any Tax Year,
Landlord shall furnish Tenant with a statement (herein
called
- 4 -
“Landlord’s Tax Statement”)
setting forth the amount of Real Estate Taxes for such Tax Year.
Unless otherwise required pursuant to Paragraph 3(c)(v) below,
Tenant shall pay to Landlord the full amount of said actual Real
Estate Taxes no later than twenty (20) days prior to the due
date of each installment of Real Estate Taxes. Notwithstanding the
foregoing, Landlord shall have the right, upon the giving of
written notice to Tenant, to require Tenant to pay the estimated
amount of Real Estate Taxes; and if Landlord gives such notice,
Tenant shall, commencing with the next succeeding calendar month,
pay to Landlord as Additional Charges one-twelfth (1/12th) of the
Real Estate Taxes for each Tax Year on or before the first day of
each month during such Tax Year, in advance, in an amount
reasonably estimated by Landlord and billed by Landlord to Tenant.
Landlord shall have the right initially to determine monthly
estimates and to revise such estimates from time to time. If the
actual Real Estate Taxes for such Tax Year (as shown on
Landlord’s Tax Statement) exceed the estimated Real Estate
Taxes paid by Tenant for such Tax Year, Tenant shall pay to
Landlord the difference between the amount paid by Tenant and the
actual Real Estate Taxes within fifteen (15) days after the
receipt of Landlord’s Tax Statement, and if the total amount
paid by Tenant for any such Tax Year shall exceed the actual Real
Estate Taxes for such Tax Year, such excess shall be credited
against the next installment of Real Estate Taxes due from Tenant
to Landlord hereunder or if the Term has ended it shall be returned
to Tenant within thirty (30) days. If it has been determined
that Tenant has overpaid Real Estate Taxes during the last year of
the Lease Term, then Landlord shall reimburse Tenant for such
overage on or before the thirtieth (30th) day following the
Expiration Date. No delay by Landlord in providing Landlord’s
Tax Statement shall be deemed a default by Landlord or a waiver of
Landlord’s right to require payment of the actual or
estimated sums of Real Estate Taxes.
(iii)
Payment of Insurance Costs . With reasonable promptness
after Landlord has received an invoice for any fire, extended
coverage, boiler, sprinkler, public liability, property damage,
rent, earthquake (if Landlord elects to obtain it) and other
insurance for the Project obtained by Landlord, or otherwise
obtained by Landlord in connection with the Project, including,
without limitation, the insurance required by Paragraph 10(f),
Landlord shall furnish Tenant with a statement (herein called
“Landlord’s Insurance Statement”) setting forth
the amount of the premium for such insurance. Unless otherwise
required pursuant to Paragraph 3(c)(v) below, Tenant shall pay
to Landlord the full amount of said insurance premium no later than
twenty (20) days prior to the due date of such insurance
premium. Notwithstanding the foregoing, Landlord shall have the
right, upon the giving of written notice to Tenant, to require
Tenant to pay the estimated amount of Landlord’s cost of
insurance in monthly installments in accordance with the provisions
of Paragraph 3(c)(iv) below.
(iv)
Payment of Expenses . Commencing on the Commencement Date,
Tenant shall pay to Landlord as Additional Charges one-twelfth
(1/12th) of the Expenses (including insurance premiums if Landlord
has made the election described in the last sentence of Paragraph
3(c)(iii) above) for each Expense Year on or before the first day
of each month of such Expense Year, in advance, in an amount
reasonably estimated by Landlord and billed by Landlord to Tenant,
and Landlord shall have the right initially to determine monthly
estimates and to revise such estimates from time to time. With
reasonable promptness after the expiration of each Expense Year,
Landlord shall furnish Tenant with a statement (herein called
“Landlord’s Expense Statement”), setting forth in
reasonable detail the Expenses for such Expense Year. If the actual
Expenses for such Expense Year exceed the estimated Expenses paid
by Tenant for such Expense Year, Tenant shall pay to Landlord the
difference between the amount paid by Tenant and the actual
Expenses within fifteen (15) days after the receipt of
Landlord’s Expense Statement, and if the total amount paid by
Tenant for any such Expense Year shall exceed the actual Expenses
for such Expense Year, such excess shall be credited against the
next installment of the estimated Expenses due from Tenant to
Landlord hereunder or if the Term has ended it shall be returned to
Tenant within thirty (30) days. Any utility rebates for the
Project which Landlord receives for payments made by Tenant shall
be forwarded to Tenant so long as such rebate is received within
one year following the Expiration Date or sooner termination of the
Lease. If it has been determined that Tenant has overpaid Expenses
during the last year of the Lease Term (including rebates of
utilities applicable to Tenant), then Landlord shall reimburse
Tenant for such overage on or before the thirtieth (30th) day
following the Expiration Date.
(v)
Other . To the extent any item of Real Estate Taxes or
Expenses is payable by Landlord in advance of the period to which
it is applicable (e.g. insurance and tax escrows required
by
- 5 -
Landlord’s Lender), or to the extent that
prepayment is customary for the service or matter, Landlord may
(i) include such items in Landlord’s estimate for
periods prior to the date such item is to be paid by Landlord and
(ii) to the extent Landlord has not collected the full amount
of such item prior to the date such item is to be paid by Landlord,
Landlord may include the balance of such full amount in a revised
monthly estimate for Additional Charges. If the Commencement Date
or Expiration Date shall occur on a date other than the first day
of a Tax Year and/or Expense Year, Tenant’s Share of Real
Estate Taxes and Expenses, for the Tax Year and/or Expense Year in
which the Commencement Date occurs shall be prorated.
(vi)
Audit . Within one hundred eighty (180) days after
receipt of any Expense Statement or Tax Statement from Landlord,
Tenant shall have the right to examine and copy Landlord’s
books and records relating to such Expense Statements and Tax
Statements, or cause an independent audit thereof to be conducted
by an accounting firm to be selected by Tenant and subject to the
reasonable approval of Landlord. If the audit conclusively proves
that Tenant has overpaid either Expenses or Real Estate Taxes, then
Landlord shall reimburse Tenant within thirty (30) days for
such overage together with interest on such overpayment at the
Default Rate (as defined in 3(d) below), and if such overage
exceeds five percent (5%) of the actual amount of Expenses or Real
Estate Taxes paid by Landlord for the Tax or Expense Year covered
by such audit, then Landlord shall bear the reasonable cost of such
audit, up to a maximum cost of $5,000. If Tenant fails to object to
any such Expense Statement or Tax Statement or conduct an
independent audit thereof within one hundred eighty (180) days
after receipt thereof, such Expense Statement and/or Tax Statement
shall be final and shall not be subject to any audit, challenge or
adjustment. All information obtained through any audit by Tenant
and any compromise, settlement or adjustment reached between
Landlord and Tenant relative to the results of such audit shall be
held in strict confidence by the Tenant.
(d)
Late Charges . Tenant recognizes that late payment of any
Monthly Base Rent or Additional Charges will result in
administrative expenses to Landlord, the extent of which additional
expense is extremely difficult and economically impractical to
ascertain. Tenant therefore agrees that if any Monthly Base Rent or
Additional Charges remain unpaid five (5) days after such
amount is due, the amount of such unpaid Monthly Base Rent or
Additional Charges shall be increased by a late charge to be paid
to Landlord by Tenant in an amount equal to four percent (4%) of
the amount of the delinquent Monthly Base Rent or Additional
Charges. In addition, any outstanding Monthly Base Rent, Additional
Charges, late charges and other outstanding Rent amounts shall
accrue interest at an annualized rate of the lesser of (i) the
greater of 10% or The Federal Reserve Discount Rate plus 5% until
paid to Landlord, or (ii) the maximum rate permitted by law
(“the Default Rate”). Tenant agrees that such amount is
a reasonable estimate of the loss and expense to be suffered by
Landlord as a result of such late payment by Tenant and may be
charged by Landlord to defray such loss and expense. The provisions
of this Paragraph 3(d) in no way relieve Tenant of the obligation
to pay Monthly Base Rent or Additional Charges on or before the
date on which they are due, nor do the terms of this Paragraph 3(d)
in any way affect Landlord’s remedies pursuant to
Paragraph 19 in the event any Monthly Base Rent or Additional
Charges are unpaid after the date due.
4.
RESTRICTIONS ON USE . Tenant shall not use or allow
the Premises to be used for any unlawful purpose, nor shall Tenant
cause or maintain or permit any nuisance in, on or about the
Premises. Tenant shall not commit or suffer the commission of any
waste in, on or about the Premises.
5.
COMPLIANCE WITH LAWS .
(a)
Tenant’s Compliance Obligations. Tenant shall not use
the Project or permit anything to be done in or about the Project
which will in any way conflict with any present and future laws,
statutes, ordinances, resolutions, regulations, proclamations,
orders or decrees of any municipal, county, state or federal
government or other governmental or regulatory authority with
jurisdiction over the Project, or any portion thereof, whether
currently in effect or adopted in the future and whether or not in
the contemplation of the parties hereto (collectively,
“Laws”), and Tenant shall promptly, at its sole
expense, maintain the Premises, any Alterations (as defined in
Paragraph 6 below) permitted hereunder and Tenant’s use
and operations thereon in strict compliance at all times with all
Laws. “Laws” shall include, without limitation, all
Laws relating to health and safety (including, without limitation,
the California Occupational Safety and Health Act of 1973 and
the
- 6 -
California Safe
Drinking Water and Toxic Enforcement Act of 1986, including posting
and delivery of notices required by such Laws with respect to the
Premises), disabled accessibility (including, without limitation,
the Americans with Disabilities Act, 42 U.S.C. section 12101
et seq .), Hazardous Substances, and all present and
future life safety, fire, sprinkler, seismic retrofit, building
code and municipal code requirements; provided however, that
Tenant’s obligation to comply with Laws relating to Hazardous
Substances is subject to the terms and conditions of
Paragraph 41, and Tenant shall not be responsible for
compliance with clean-up provisions of any Laws with respect to
Hazardous Substances except to the extent of any release caused by
the Tenant or any of its servants, employees, contractors, agents,
licensees or invitees (collectively, including Tenant, the
“Tenant Parties”) or otherwise included in
Tenant’s indemnity contained in Paragraph 41.
Notwithstanding the foregoing, Landlord, and not Tenant, shall be
responsible for correcting any condition with respect to the
exterior or structural portions of the Building (but not with
respect to the interior of the Premises), which is in violation of
applicable Laws (subject to Tenant’s obligation to pay such
costs to the extent they are included as Expenses under
Paragraph 3(c)(i)(D) above), except to the extent such
condition is caused by the negligent or intentional acts or
omissions of the Tenant Parties, or such violation results from
Tenant’s particular use of the Premises, or such condition
will be altered in connection with the installation of any
Alterations. Any Alterations that are Tenant’s responsibility
pursuant to this Paragraph 5 shall be made in accordance with
Paragraph 6 below, at Tenant’s sole cost. The parties
acknowledge and agree that Tenant’s obligation to comply with
all Laws as provided in this paragraph (subject to the limitations
contained herein) is a material part of the bargained-for
consideration under this Lease. Tenant’s obligations under
this Paragraph and under Paragraph 7(c) below shall include,
without limitation, the responsibility of Tenant to make
substantial or structural repairs and alterations to the Premises
to the extent provided above, regardless of, among other factors,
the relationship of the cost of curative action to the Rent under
this Lease, the length of the then remaining Term hereof, the
relative benefit of the repairs to Tenant or Landlord, the degree
to which the curative action may interfere with Tenant’s use
or enjoyment of the Premises, and the likelihood that the parties
contemplated the particular Law involved.
(b)
Insurance Requirements. Tenant shall not do or permit
anything to be done in or about the Premises or bring or keep
anything therein which will in any way increase the rate of any
insurance upon the Project or any of its contents (unless Tenant
agrees to pay for such increase) or cause a cancellation of any
insurance on the Project or otherwise violate any requirements,
guidelines, conditions, rules or orders with respect to such
insurance. Tenant shall at its sole cost and expense promptly
comply with the requirements of the Insurance Services Office
(ISO), board of fire underwriters, or other similar body now or
hereafter constituted relating to or affecting Tenant’s use
or occupancy of the Project (other than in situations where
compliance involves repair, maintenance or replacement of items
that Landlord is expressly required to repair, maintain or replace
under this Lease).
(c)
No Limitation on Obligations. The provisions of this
Paragraph 5 shall in no way limit Tenant’s maintenance,
repair and replacement obligations under Paragraph 7 or
Tenant’s obligation to pay Expenses under
Paragraph 3(c). The judgment of any court of competent
jurisdiction or the admission of Tenant in an action against
Tenant, whether Landlord is a party thereto or not, that Tenant has
so violated any such Law shall be conclusive of such violation as
between Landlord and Tenant.
(a)
Tenant shall not make or suffer to be made any additional
alterations, additions or improvements (“Alterations”)
in, on or to the Premises or any part thereof without the prior
written consent of Landlord. Failure of Landlord to give its
approval within fifteen (15) calendar days after receipt of
Tenant’s written request for approval shall constitute
disapproval by Landlord. Any Alterations in, on or to the Premises,
except for Tenant’s trade fixtures and movable furniture and
equipment, shall be the property of Tenant during the Term and
shall become Landlord’s property at the end of the Term
without compensation to Tenant. Landlord shall not unreasonably
withhold or delay its consent to Alterations that (i) do not
materially affect the structure of the Building or its electrical,
plumbing, HVAC, security or other systems, (ii) are not
visible from the exterior of the Premises and do not otherwise
affect the exterior appearance of the Building, (iii) are
consistent with Tenant’s Permitted Use hereunder;
(iv) do not require any application to a political
jurisdiction for rezoning, general plan amendment, variance,
conditional use permit or architectural review approval,
(v) will not interfere with the use and occupancy of any other
portion of the Project by Landlord or by any other tenants or
occupants
- 7 -
or their
invitees, or by any other party with the right to use any portion
of the Project, (vi) comply with any ground lease, CC&Rs
(including without limitation the CC&Rs described in
EXHIBIT C ) and Mortgages, and (vii) do not
adversely affect the value or marketability of Landlord’s
reversionary interest upon termination or expiration of this
Lease.
(b)
If Landlord consents to the making of any Alterations by Tenant,
the same shall be made by Tenant, at Tenant’s sole cost and
expense, in accordance with plans and specifications submitted by
Tenant to Landlord concurrently with its request pursuant to
Paragraph 6(a) and reasonably approved by Landlord, and any
contractor or person selected by Tenant to make the same must first
be reasonably approved in writing by Landlord. With respect to any
Alterations that affect the structure of the Building, the Building
Systems, or any portion of the Project outside the Premises, at
Landlord’s option the Alterations shall be made by Landlord,
or by a contractor specified by Landlord, for Tenant’s
account and Tenant shall reimburse Landlord for the cost thereof
(including a reasonable charge for Landlord’s overhead) as an
Additional Charge, within twenty (20) days after receipt of a
statement from Landlord therefor.
(c)
Tenant shall reimburse Landlord upon demand for any reasonable
out-of-pocket expenses incurred by Landlord in the review of any
Alterations made by Tenant, including fees charged by
Landlord’s contractors or consultants to review plans and
specifications, and such obligation shall be an Additional Charge.
Landlord’s consent to any Alterations shall not obligate
Landlord to repair, maintain, insure or otherwise assume any
responsibility or liability with respect to any such Alteration. In
addition, notwithstanding Landlord’s review, Tenant and not
Landlord shall be responsible for compliance of the Alterations,
and plans and specifications therefor, with all applicable Laws,
and Landlord shall not be responsible for any omissions or errors
therein.
(d)
Upon the expiration or sooner termination of the Term, Tenant shall
upon demand by Landlord, at Landlord’s election either
(i) at Tenant’s sole cost and expense, forthwith and
with all due diligence remove any Alterations made by or for the
account of Tenant, designated by Landlord to be removed (provided,
however, that upon the written request of Tenant prior to
installation of such Alterations, Landlord shall advise Tenant at
that time whether or not such Alterations must be removed upon the
expiration or sooner termination of this Lease), and restore the
Premises to substantially its original condition as of the
Commencement Date, subject to normal wear and tear and the rights
and obligations of Tenant concerning casualty damage pursuant to
Paragraph 20 or (ii) pay Landlord the reasonable
estimated cost thereof.
7.
REPAIR AND MAINTENANCE .
(a)
Landlord’s Obligations .
(i)
Landlord shall maintain, repair and replace, except as provided in
Paragraph 7(c), the exterior (excluding windows and window
frames); roof structure, including the roof membrane, water tight
and in good working condition; and structural portions of the
Building (including load bearing walls and foundations).
Tenant’s obligation to reimburse Landlord for maintenance of
the roof membrane shall be limited to Two Thousand Five Hundred
Dollars ($2,500) for any Expense Year. Any capital repairs or
replacements required to keep the roof structure, including the
membrane, watertight and in good working condition shall be at the
sole expense of Landlord.
(ii)
Landlord shall maintain, repair and replace the parking areas,
courtyards, sidewalks, entryways, lawns, fountains, landscaping and
other similar facilities located in the Common Area.
(iii)
Tenant shall furnish to Landlord a report on the condition of the
HVAC system serving the Premises; and Landlord shall be entitled to
obtain its own independent report. Prior to the Commencement Date,
Landlord shall make repairs or replacements to those items
identified in Tenant’s report for the HVAC system that are
reasonably required to put the HVAC system in good working order,
as such repairs or replacements are confirmed by Landlord’s
report. Notwithstanding, the foregoing, however, Landlord’s
obligation to put the HVAC system in good working order shall be
limited to those
- 8 -
repairs or
replacements necessary for the HVAC system to serve normal
occupancy loads for office research and development uses, exclusive
of specialized or overstandard equipment or uses installed by
Tenant in the Premises, such as server rooms, special purpose R
& D rooms, clean rooms or similar uses. Landlord shall
responsible at its sole expense for the cost of capital repairs or
replacements to the HVAC system during the Term of the Lease
(whether made pursuant to the preceding sentence or later in the
Term of the Lease), but Landlord’s obligation shall in all
events be limited to capital repairs or replacements reasonably
required to keep the HVAC system in good working order to serve
normal occupancy loads for office, research and development uses,
exclusive of specialized or overstandard equipment or uses
installed by Tenant, such as server rooms, special purpose R &
D rooms, clean rooms or similar uses; and any costs in excess of
Landlord’s obligation for capital repairs and replacements
shall be the obligation of Tenant.
All costs
incurred by Landlord in connection with the foregoing obligations
other than (1) the obligations of Landlord set forth in
subparagraph 7(a)(i), including any excess over Tenant’s
maximum obligation for $2,500 per Expense Year for maintenance of
the roof structure and (2) the obligations of Landlord as set
forth in, and as limited by, subparagraph 7(a)(iii), shall be
payable by Tenant as Additional Charges in accordance with
Paragraph 3(c) to the extent they are properly included in Expenses
thereunder. Landlord’s obligations under this Paragraph 7(a)
with respect to any particular repair, replacement or maintenance
requirement, shall not commence until Tenant notifies Landlord in
writing of any circumstances which Tenant believes may trigger
Landlord’s obligations.
(b)
Tenant’s Obligations . Tenant shall maintain, repair
and replace, at its sole cost and expense, all portions of the
Premises which are not Landlord’s obligations under
Paragraph 7(a), including, without limitation, (i) the
windows, and window frames; (ii) the building systems serving
the Premises for electrical, mechanical, HVAC (other than those
costs specifically made the obligation of Landlord in paragraph
7(a)(iii) above) and plumbing and all controls appurtenant thereto,
and any elevators in the Building (collectively, including
elevators, “Building Systems”); and (iii) the
interior portion of the Building, the Alterations, and any
additional tenant improvements, alterations or additions installed
by or on behalf of Tenant within the Premises. Tenant shall be
responsible for the expense of installation, operation, and
maintenance of its telephone and other communications cabling from
the point of entry into the Building to the Premises and throughout
the Premises, though Landlord shall have the right to perform such
work on behalf of Tenant in Common Areas, provided Landlord
performs such work in coordination with Tenant and its contractors
in such a manner as will accommodate Tenant’s reasonable
objectives with respect thereto. The Premises shall at all times be
maintained by Tenant in the condition of a first-class office
building. Tenant’s obligations under this Paragraph 7
include, without limitation, the replacement, at Tenant’s
sole cost and expense, of any portions of the Premises or Building
Systems which are not Landlord’s express responsibility under
Paragraph 7(a), if it would be commercially prudent to
replace, rather than repair, such portions of the Premises,
regardless of whether such replacement would be considered a
capital expenditure. Tenant hereby waives and releases its right to
make repairs at Landlord’s expense under Sections 1941
and 1942 of the California Civil Code or under any similar law,
statute or ordinance now or hereafter in effect. In addition,
Tenant hereby waives and releases its right to terminate this Lease
under Section 1932(1) of the California Civil Code or under
any similar law, statute or ordinance now or hereafter in
effect.
(c)
Additional Obligations of Tenant . The purpose of Paragraph
7(a) and 7(b) is to define the obligations of Landlord and Tenant
to perform various repair and maintenance functions; the allocation
of the costs therefor are covered under this Paragraph 7(c) and
Paragraph 3. Tenant shall bear the full cost of repairs or
maintenance interior or exterior, structural or otherwise, to
preserve the Premises and the Building in good working order and
first-class condition, arising out of (i) the existence,
installation, use or operation of any Alterations or any of
Tenant’s trade fixtures or personal property; (ii) the
moving of Tenant’s property or fixtures in or out of the
Building or Project or in and about the Premises; (iii) the
particular use or particular occupancy or manner of use or
occupancy of the Premises by any Tenant Party; or (iv) except to
the extent any claims arising from any of the foregoing are
reimbursed by insurance carried by Landlord, are covered by the
waiver of subrogation in Paragraph 11 or are otherwise
provided for in Paragraph 20, the acts, omissions or
negligence of any Tenant Parties.
(d)
Maintenance Service Contracts . In connection with
Tenant’s maintenance and repair obligations contained in this
Paragraph 7, Tenant shall, at its own cost and expense, enter
into regularly
- 9 -
scheduled
preventive maintenance service contracts with maintenance
contractors approved by Landlord, in its reasonable discretion, for
servicing all Building Systems, elevators and equipment within the
Premises, and shall provide copies of such contracts and periodic
maintenance reports to Landlord. At Landlord’s option at any
time in which Tenant is in Default hereunder, maintenance service
contracts shall be prepaid on an annual basis. Each maintenance
service contract shall specifically name Landlord as a third party
beneficiary, with the right to receive copies of all notices
delivered under such contract and the ability to exercise
Tenant’s rights thereunder, at Landlord’s election, in
connection with any cure of Tenant’s default by Landlord, or
any assumption by Landlord of Tenant’s maintenance
obligations with respect to Building Systems, pursuant to Paragraph
7(e) below.
(e)
Cure Rights . Tenant shall have a period of thirty
(30) days from the date of written notice from Landlord within
which to cure any failure to fulfill any of its obligations under
this Paragraph 7; provided, however, that if such failure is
curable but cannot be cured within such thirty (30) day
period, Tenant shall have such additional time as may be reasonably
required to cure (not to exceed sixty (60) additional days) so
long as Tenant commences such cure within such (30) day period
and diligently prosecutes such cure to completion. Landlord shall
have the rights set forth in Paragraph 23 with respect to any
failure of Tenant to perform its obligations under this
Paragraph 7. In addition, Landlord may elect, by delivery of
written notice to Tenant, to assume Tenant’s maintenance
obligations with respect to the Building Systems under item
(ii) of Paragraph 7(b) if Tenant does not cure any breach of
such obligations, or if Tenant has failed to perform such
obligations more than once in any twelve month period (without
benefit of cure periods) upon the second such failure. If Landlord
assumes such obligations, all costs incurred by Landlord in
connection therewith shall be included in Expenses payable by
Tenant as Additional Charges in accordance with
Paragraph 3(c). The remedies described in this paragraph are
cumulative and in addition to any other remedies Landlord may have
at law or under this Lease.
(f)
No Abatement. Except to the extent any claims arising from
any of the foregoing are reimbursed by rental abatement insurance
proceeds actually received by Landlord, are covered by the waiver
of subrogation in Paragraph 11 or are otherwise provided for
in Paragraph 20, there shall be no abatement of Rent with
respect to, and except for Landlord’s gross negligence or
willful misconduct, Landlord shall not be liable for any injury to
or interference with Tenant’s business arising from, any
repairs, maintenance, alteration or improvement in or to any
portion of the Project, including the Premises, or in or to the
fixtures, appurtenances and equipment therein.
8.
LIENS . Tenant shall keep the Premises free from any
liens arising out of any work performed, material furnished or
obligations incurred by Tenant. In the event that Tenant shall not,
within ten (10) days following the imposition of any such
lien, cause the same to be released of record by payment or posting
of a proper bond, Landlord shall have, in addition to all other
remedies provided herein and by law, the right, but not the
obligation, to cause the same to be released by such means as it
shall deem proper, including without limitation by the payment of
the claim giving rise to such lien or by the posting of a bond. All
such sums paid by Landlord and all expenses incurred by Landlord in
connection therewith shall be considered Additional Charges and
shall be payable to Landlord by Tenant on demand with interest from
the date incurred by Landlord at the Default Rate. Landlord shall
have the right at all times to post and keep posted on the Premises
any notices permitted or required by law, or which Landlord shall
deem proper, for the protection of Landlord, the Premises, the
Project and any other party having an interest therein, from
mechanics’ and materialmen’s liens, and Tenant shall
give written notice to Landlord at least fifteen (15) business
days’ prior to commencement of any construction on the
Premises.
9.
ASSIGNMENT AND SUBLETTING .
(a)
Except as otherwise provided in this Paragraph 9, Tenant shall
not directly or indirectly, voluntarily or by operation of law,
sell, assign, encumber, pledge or otherwise transfer or hypothecate
all or any part of the Premises or Tenant’s leasehold estate
hereunder (collectively, “Assignment”), or permit the
Premises to be occupied by anyone other than Tenant or sublet the
Premises or any portion thereof (collectively,
“Sublease”), without Landlord’s prior written
consent in each instance, which consent shall not be unreasonably
withheld; provided, however, that Tenant shall have the right to
enter into an Assignment of Sublease to any affiliate of Tenant
pursuant to Paragraph 9(f) below or a Permitted Transfer pursuant
to Paragraph 9(d) below. Without otherwise limiting the criteria
upon which Landlord may withhold its consent to any proposed
Sublease
- 10 -
or Assignment,
if Landlord withholds its consent where either (i) the
creditworthiness of the proposed Sublessee or Assignee is not
reasonably acceptable to Landlord, or (ii) the proposed
Sublessee’s or Assignee’s use of the Premises is not in
compliance with the Permitted Use as described in the Basic Lease
Information, such withholding of consent shall be presumptively
reasonable. If Landlord consents to the Sublease or Assignment,
Tenant may thereafter enter into a valid Sublease or Assignment
upon the terms and conditions set forth in this
Paragraph 9.
(b)
If Tenant desires at any time to enter into an Assignment of this
Lease or a Sublease of the Premises or any portion thereof for
which Landlord’s consent is required, it shall first give
written notice to Landlord of its desire to do so, which notice
shall contain (i) the name of the proposed assignee, subtenant
or occupant; (ii) the name of the proposed assignee’s,
subtenant, or occupant’s business to be carried on in the
Premises; (iii) the terms and provisions of the proposed
Assignment or Sublease; and (iv) such financial information as
Landlord may reasonably request concerning the proposed assignee,
subtenant or occupant.
At
any time within fifteen (15) days after Landlord’s
receipt of the notice specified in Paragraph 9(b), Landlord
may by written notice to Tenant elect to (i) consent to the
Sublease or Assignment; or (ii) disapprove the Sublease or
Assignment. In addition, Landlord may elect to terminate this Lease
as to the portion of the Premises that is specified in such notice,
with a proportionate abatement in Monthly Base Rent and Additional
Charges for Expenses and Taxes, if such notice is with respect to
(x) any proposed Assignment, or (y) any proposed Sublease
and either (I) such Sublease has a term (including any renewal or
extension options) that either is coterminous with the Term or
expires within the last two years of the Term, or (II) after
giving effect to such Sublease, the original Tenant will occupy
less than fifty percent (50%) of the Rentable Area of the Premises.
If Landlord elects to terminate the Lease as to a portion of the
Premises pursuant to the immediately preceding sentence, Tenant
shall at all times provide reasonable and appropriate access to
such portion of the Premises and use of any common facilities
within the Building. Promptly after request from Landlord, Tenant
shall enter into any amendment to this Lease or other documentation
reasonably requested by Landlord in connection with any such
termination of this Lease as to a portion of the Premises. Failure
by Landlord to either consent to or disapprove a proposed
Assignment or Sublease within the fifteen (15) day time period
specified above shall be deemed to be Landlord’s disapproval
thereof. At Tenant’s option, Tenant may notify Landlord in
writing if Tenant wishes to Assign or Sublease any portion of the
Premises, prior to commencing negotiations for an Assignment or
Sublease with another party, if such Assignment or Sublease would
be subject to Landlord’s termination right provided above
(such notice being the “Availability Notice”), and
Landlord shall have the option, by written notice to Tenant within
fifteen (15) days after receiving any Availability Notice, to
terminate this Lease with respect to the portion of the Premises as
provided above. If Landlord declines or fails timely to elect to
terminate this Lease with respect to such portion of the Premises,
Tenant shall have the right, within one hundred twenty
(120) days after the expiration of such fifteen (15) day
period, to enter into an Assignment or Sublease with respect to the
portion of the Premises designated in the Availability Notice,
subject to Landlord’s consent and the other provisions of
this Paragraph 9, except that Landlord shall not have the
further right to terminate with respect to such Assignment or
Sublease. If Tenant fails to enter into an Assignment or Sublease
within such one hundred twenty (120) day period, or upon
expiration of any Sublease entered into within such one hundred
twenty (120) day period, Landlord’s rights under this
Paragraph 9 to terminate the Lease with respect to the portion
of the Premises upon any future proposed Sublease or Assignment
shall revive. If Landlord consents to the Sublease or Assignment
within fifteen (15) days after receipt of Tenant’s
notice as provided above, Tenant may thereafter within one hundred
twenty (120) days after Landlord’s consent, but not
later than the expiration of said one hundred twenty
(120) days, enter into such Assignment or Sublease of the
Premises or portion thereof upon the terms and conditions set forth
in the notice furnished by Tenant to Landlord pursuant to
Paragraph 9(b). However, Tenant shall pay to Landlord
seventy-five percent (75%) of any rent or other consideration
realized by Tenant under any and all Subleases in excess of the
Monthly Base Rent and Additional Charges payable hereunder (or the
amount thereof proportionate to the portion of the Premises subject
to such Sublease(s)), including, without limitation, any sums paid
for the sale or rental of any Alterations, after first deducting
from such excess costs reasonably incurred for tenant improvements
installed by Tenant (commensurate with a standard office build-out)
to obtain the Sublease or Assignment in question, each of which are
installed in that portion of the Premises which is the subject of
the Sublease or Assignment and which unamortized costs shall be
amortized on a straight line basis (without interest) over the term
of the Sublease or Assignment in equal installments, and after
deducting therefrom any customary brokers’ commissions that
Tenant
- 11 -
has incurred in
connection with such Sublease amortized on a straight line basis
(without interest) over the term of the Sublease.
(c)
No consent by Landlord to any Assignment or Sublease by Tenant
shall relieve Tenant of any obligation to be performed by Tenant
under this Lease, whether arising before or after the Assignment or
Sublease. The consent by Landlord to any Assignment or Sublease
shall not relieve Tenant from the obligation to obtain
Landlord’s express written consent to any other Assignment or
Sublease. Any Assignment or Sublease that is not in compliance with
this Paragraph 9 shall be void and, at the option of Landlord,
shall constitute a material Default by Tenant under this Lease. The
acceptance of Monthly Base Rent or Additional Charges by Landlord
from a proposed assignee or sublessee shall not constitute the
consent to such Assignment or Sublease by Landlord.
(d)
The following shall be deemed a voluntary assignment of
Tenant’s interest in this Lease: (i) any dissolution,
merger, consolidation, or other reorganization of Tenant; and
(ii) if the capital stock of Tenant is not publicly traded,
the sale or transfer of stock possessing more than fifty percent
(50%) of the total combined voting power of all classes of
Tenant’s stock issued, outstanding and entitled to vote for
the election of directors. Notwithstanding anything to the contrary
contained in this Paragraph 9, Tenant may enter into any of
the following transfers (a “Permitted Transfer”)
without Landlord’s prior written consent: (1) Tenant may
assign its interest in the Lease to a corporation, partnership,
limited liability company, or limited liability partnership
(“Transfer Entity”) which results from a merger,
consolidation or other reorganization, so long as the surviving
Transfer Entity has a net worth immediately following such
transaction that is equal to or greater than the net worth of
Tenant as of the date immediately prior to such transaction; and
(2) Tenant may assign this Lease to a Transfer Entity which
purchases or otherwise acquires all or substantially all of the
assets of Tenant, so long as such acquiring Transfer Entity has a
net worth immediately following such transaction that is equal to
or greater than the net worth of Tenant as of the date immediately
prior to such transaction.
(e)
Each assignee pursuant to an Assignment as provided in this
Paragraph 9 shall assume all obligations of Tenant under this
Lease, and shall be and remain liable jointly and severally with
Tenant for the payment of Monthly Base Rent and Additional Charges,
and for the performance of all the terms, covenants, conditions and
agreements herein contained on Tenant’s part to be performed
for the Term. No Assignment shall be binding on Landlord unless the
assignee or Tenant shall deliver to Landlord a counterpart of the
Assignment and an instrument in recordable form that contains a
covenant of assumption by the assignee satisfactory in substance
and form to Landlord, consistent with the requirements of this
Paragraph 9(e), but the failure or refusal of the assignee to
execute such instrument of assumption shall not release or
discharge the assignee from its liability as set forth above.
Notwithstanding anything to the contrary in this Lease, no Sublease
shall be binding on Landlord unless and until Landlord shall agree
in writing following termination of this Lease to recognize such
sublessee and such sublessee agrees in writing to attorn to
Landlord on the terms and conditions of the sublease (including the
obligations under this Lease to the extent that they relate to the
portion of the Premises subleased), and any Sublease entered into
by Tenant hereunder shall include an obligation by the sublessee to
so attorn to Landlord if Landlord, in Landlord’s sole
discretion, elects to recognize such Sublease upon any termination
of this Lease.
(f)
Tenant shall have the right, without Landlord’s consent and
without triggering Landlord’s rights under
Paragraph 9(b), but with written notice to Landlord at least
ten (10) days prior thereto, to enter into an Assignment of
Tenant’s interest in the Lease or a Sublease of all or any
portion of the Premises to an Affiliate (as defined below) of
Tenant, provided that (i) in connection with an Assignment
that is not a Sublease, the Affiliate delivers to Landlord
concurrent with such Assignment a written notice of the Assignment
and an assumption agreement whereby the Affiliate assumes and
agrees to perform, observe and abide by the terms, conditions,
obligations, and provisions of this Lease arising from and after
the effective date of the assignment; and (ii) the assignee or
sublessee remains an Affiliate throughout the term of this Lease
(and, in connection with an Assignment that is not a Sublease, the
assumption agreement shall contain provisions consistent with the
provisions of this subparagraph allowing Landlord to terminate this
Lease at such time as the entity is no longer an Affiliate of the
original Tenant). If this Lease is assigned or sublet to an
Affiliate and thereafter any circumstance occurs which causes such
assignee or sublessee to no longer be an Affiliate of the assigning
or subleasing Tenant, Tenant shall give written notice thereof to
Landlord, which notice, to become effective, shall
- 12 -
refer to
Landlord’s right to terminate this Lease pursuant to this
subparagraph, in the event of an Assignment, or to cause Tenant to
terminate the Sublease, in the event of a Sublease
(“Affiliation Termination Notice”). Following
occurrence of the circumstance giving rise to the discontinuation
of such assignee or sublessee being an Affiliate (“Affiliate
Termination”) of the assigning or subleasing Tenant, Landlord
shall be entitled to terminate this Lease in the event of an
Assignment, or to cause Tenant to terminate the Sublease in the
event of a Sublease, unless Landlord has given its prior written
consent to such circumstance, which consent shall not be
unreasonably withheld by Landlord so long as, in the event of an
Assignment, such assignee (after giving effect to such
circumstance) has financial strength (as demonstrated by audited
financial statements) equal to or greater than the assigning or
subleasing Tenant (including its net worth) as of the date of
execution of this Lease, or the assigning or subleasing Tenant
exec
|