Exhibit 10.3
SECOND
AMENDMENT
TO LEASE
AGREEMENT
This SECOND AMENDMENT TO LEASE
AGREEMENT (“ Amendment ”), is entered into as of
the 15th day of May, 2009, by and between BIXBY TECHNOLOGY
CENTER, LLC, a Delaware limited liability company (“
Landlord ”), as successor-in-interest to WIX/NSJ Real
Estate Limited Partnership, a Delaware limited partnership (“
Prior Landlord ”), and TIVO INC., a Delaware
corporation (“ Tenant ”), with reference to the
facts set forth in the Recitals below.
RECITALS :
A. Prior Landlord and Tenant entered
into that certain Lease Agreement dated October 6, 1999 (the
“ Original Lease ”) and amended by that certain
First Amendment to Lease Agreement dated February 1, 2006 (the
“ First Amendment ”) (the Original Lease as
amended by the First Amendment may hereinafter be referred to as
the “ Lease ”) pursuant to which Landlord
currently leases to Tenant the buildings located at 2160 and 2190
Gold Street, San Jose, California 95002 (the “
Premises ”). The Premises are part of the development
known as Bixby Technology Center (the “ Project
”). The Premises contain approximately 127,124 rentable
square feet. Landlord has succeeded to Prior Landlord’s
interest as landlord under the Lease.
B. Capitalized terms not defined in
this Amendment have the meanings given to them in the
Lease.
C. The Lease Term is scheduled to
expire on January 31, 2010.
D. Landlord and Tenant desire to
amend the Lease in order to, among other things, extend the Lease
Term, all upon and subject to the terms set forth below.
AGREEMENT :
NOW THEREFORE, in consideration of
the above Recitals and other good and valuable consideration, the
receipt of which is hereby acknowledged, the parties agree as
follows:
1. Second Extended Term . The
Term is hereby extended for eighty-four (84) additional months
from February 1, 2010 (“ 2
nd
Extended Term Commencement
Date ”), expiring
on January 31, 2017, unless sooner terminated pursuant to the
terms of the Lease (the “ 2
nd
Extended Term
”).
2. Base Rent . Prior to the
2 nd
Extended Term Commencement Date,
Tenant shall continue to pay Base Rent for the Premises in
accordance with the Lease. Commencing as of the 2
nd Extended Term Commencement Date and continuing
throughout the 2 nd Extended Term, Tenant shall make payments of
Base Rent on a monthly basis pursuant to the Lease in accordance
with the following schedule:
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Monthly Base Rent
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February 1, 2010 – January 31,
2011
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$
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139,836.40
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February 1, 2011 – January 31,
2012
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$
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146,192.60
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February 1, 2012 – January 31,
2013
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$
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152,548.80
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February 1, 2013 – January 31,
2014
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$
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158,905.00
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February 1, 2014 – January 31,
2015
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$
|
165,261.20
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February 1, 2015 – January 31,
2016
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$
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171,617.40
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February 1, 2016 – January 31,
2017
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$
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177,973.60
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3. Condition of Premises .
Tenant acknowledges that it is presently in possession of the
Premises pursuant to the Lease and is fully aware of the condition
of the Premises. So long as Tenant is not in default under the
Lease as amended hereby (the “ Amended Lease ”),
Landlord shall provide to Tenant an allowance of Eight Hundred
Eighty-Nine Thousand Eight Hundred Sixty-Eight and No/100 Dollars
($889,868.00) (the “ Allowance ”) which shall be
used by Tenant for purposes of completing improvements to the
Premises (the “ Tenant Work ”) pursuant to the
terms of the Work Letter Agreement attached hereto as Exhibit
“A” . Tenant acknowledges that except for the
Allowance, Landlord shall not be obligated to refurbish or improve
the Premises in any manner whatsoever or to otherwise provide funds
for the improvement of the Premises in conjunction with the 2nd
Extended Term, and Tenant hereby accepts the Premises
“AS-IS”. Tenant further acknowledges that except as
expressly provided in the Amended Lease, neither Landlord
nor
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any agent of Landlord has made any
representation or warranty regarding the condition of the Premises,
the improvements, refurbishments, or alterations therein, or the
Buildings or with respect to the functionality thereof or the
suitability of any of the foregoing for the conduct of
Tenant’s business and that all representations and warranties
of Landlord, if any, are as set forth in the Amended
Lease.
4. Signage . Subject to
Tenant’s compliance with the terms of this Paragraph 4,
Tenant is hereby granted the right to install one (1) panel
(“ Tenant’s Panel ”) on a monument sign to
be constructed on the Project (“ Monument Sign
”), the location of which shall be determined in
Landlord’s sole and absolute discretion. The size, design,
color and other physical aspects of Tenant’s Panel to be
located on the Monument Sign will be subject to
(i) Landlord’s written approval prior to installation,
which approval may not be unreasonably withheld or delayed,
(ii) any covenants, conditions or restrictions governing the
Project, including, without limitation, Landlord’s signage
criteria, and (iii) any applicable municipal or governmental
permits and approvals. Furthermore, Tenant’s right to install
Tenant’s Panel is expressly subject to and contingent upon
Landlord receiving the approval and consent to install the Monument
Sign and Tenant’s Panel from the City of San Jose,
California, its architectural review board, any other applicable
governmental or quasi-governmental governmental agency and any
architectural review committee under the covenants, conditions and
restrictions recorded against the Project (if and to the extent
applicable). Landlord agrees to use its commercially best efforts
to obtain such approval at no cost to Tenant. If such approval and
consent are obtained, Landlord shall install the Monument Sign and
Tenant’s Panel in accordance with this Paragraph 4 at
Landlord’s sole cost and expense.
Tenant will be solely responsible
for all costs for maintenance, repair and removal of Tenant’s
Panel located on the Monument Sign. Tenant agrees upon the
expiration date or sooner termination of the Lease to remove
Tenant’s Panel and restore any damage to the Monument Sign
and/or Project caused by such removal, at Tenant’s expense.
If Tenant fails to remove Tenant’s Panel from the Monument
Sign upon termination of the Amended Lease and repair any damage
caused by such removal, Landlord may do so at Tenant’s sole
cost and expense. Tenant agrees to reimburse Landlord for all costs
reasonably incurred by Landlord to effect any maintenance or
removal on Tenant’s account, which amount will be deemed
additional rent, and may include, without limitation, all sums
disbursed, incurred or deposited by Landlord including
Landlord’s reasonable costs, expenses and actual
attorneys’ fees with interest thereon from the date of
Landlord’s demand until paid by Tenant. The right granted to
Tenant under this Lease to install Tenant’s Panel on the
Monument Sign is personal to Tenant and may not be assigned,
transferred or otherwise conveyed to any assignee or subtenant of
Tenant without Landlord’s prior written consent, which
consent may be withheld in Landlord’s sole and absolute
discretion.
5. Notice Addresses
.
(a) Landlord’s Address for
notices and payment of rent set forth in the Lease is hereby
deleted and replaced by the following address:
Bixby Technology Center,
LLC
c/o Bixby Land Company
2211 Michelson Drive, Suite
500
Irvine, California 92612
Attention: Property
Manager
(b) Tenant’s address for
notices under the Amended Lease is the Premises.
6. ERISA . Tenant represents
and warrants to Landlord that neither Tenant nor any guarantor of
Tenant’s obligations under the Lease is (a) a party in
interest, as defined in Section 3(14) of the of the Employee
Retirement Income Security Act of 1974, as amended (“
ERISA ”), to the AFL-CIO Building Investment Trust
(“ Trust ”), or of any of the plans
participating therein, or (b) a disqualified person under
Section 4975(e)(2) of the Internal Revenue Code of 1986, as
amended (“ Code ”), with respect to the Trust or
the plans participating therein. Neither Tenant nor any guarantor
of Tenant’s obligations under the Lease shall take any action
that would cause the Lease or the exercise by Landlord or the Trust
of any rights hereunder, to be a non-exempt prohibited transaction
under ERISA. Notwithstanding any contrary provision of the Lease,
Tenant shall not assign the Lease or sublease all or any portion of
the New Premises unless (i) such assignee or subtenant
delivers to Landlord a certification (in form and content
satisfactory to Landlord) with respect to the status of such
assignee or subtenant (and any guarantor of such assignee’s
or subtenant’s obligations) as a party in interest and a
disqualified person, as provided above; and (ii) such assignee
or subtenant undertakes not to take any action that would cause the
Lease or the exercise by Landlord or the Trust of any rights
hereunder, to constitute a non-exempt prohibited transaction under
ERISA.
Notwithstanding any contrary
provision of the Lease, Tenant shall not (a) sublease all or
any portion of the New Premises under a sublease in which the rent
is based on the net income or net profits of any person, or
(b) take any other action with respect to the Lease or the New
Premises such that the revenues to be received by Landlord or the
Trust from time to time in connection with the Lease would, as a
result of such action, be subject to the Unrelated Business Income
Tax under Sections 511 through 514 of the Code.
Tenant agrees that it shall
incorporate the requirements of this Section 9 in any sublease
of the New Premises (without implying Landlord’s consent
thereto).
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7. Labor . Tenant shall use
Union Labor (defined below) for all maintenance, repair, and
replacement of the New Premises (the “ Maintenance Labor
Covenant ”). Notwithstanding the foregoing, the
Maintenance Labor Covenant shall not apply to (i) the services
for installation, operation, maintenance and repair of personal
property owned exclusively by Tenant (e.g., computer systems,
telephones, and furniture other than modular furniture) or for any
of Tenant’s specialized equipment, (ii) a specific item
or instance of maintenance, repair or replacement to the extent
Union Labor is not available in the market to perform such specific
item or instance of maintenance, repair or replacement, and/or
(iii) maintenance, repairs and replacements that may be and
are self-performed by the existing staff of Tenant without the
retention, engagement or hiring of any third party or additional
employee. Tenant shall (a) include the Maintenance Labor
Covenant in each of its service contracts, (b) provide such
evidence as Landlord may reasonably require, from time to time
during the Lease Term, that the Maintenance Labor Covenant is being
fully and faithfully observed and Tenant shall include the
obligation to provide such evidence in each service contract
entered into by Tenant for such services, and (c) incorporate
the foregoing requirements in any sublease, license, or occupancy
agreement relating to all or any part of the New Premises (without
implying Landlord’s consent to same).
In addition to any other conditions
contained in the Lease with respect to Tenant making any
alterations or improvements, before making any alterations or
improvements to the interior or exterior of the New Premises,
Tenant shall (a) deliver to Landlord evidence satisfactory to
Landlord that Tenant shall cause such construction or alteration
work (collectively, the “ Construction Activities
”) to be performed by contractors who employ craft workers
who are members of unions that are affiliated with The Building and
Construction Trades Department, AFL-CIO (“ Union Labor
”), and such work shall conform to traditional craft
jurisdictions as established in the area (the “
Construction Labor Covenant ”), (b) include the
Construction Labor Covenant in each of its contracts for the
Construction Activities, (c) provide such evidence as Landlord
may reasonably require, from time to time during the course of the
Construction Activities, that the Construction Labor Covenant is
being fully and faithfully observed and Tenant shall include the
obligation to provide such evidence in each contract entered into
by Tenant for the Construction Activities, and (d) incorporate
the foregoing requirements in any sublease, license, or occupancy
agreement relating to all or any part of the New Premises (without
implying Landlord’s consent to same). Tenant shall require
that all contractors and subcontractors, of whatever tier,
performing Construction Activities agree to submit all construction
jurisdictional disputes (i.e., disputes about which union is the
appropriate union to perform a given contract) to final and binding
arbitration to the procedures of the jointly administered
“Plan for the Settlement of Jurisdictional Disputes in the
Construction Industry,” a dispute resolution plan established
and administered by The Building and Construction Trades
Department, AFL-CIO, and various construction industry employer
associations. If a resolution to a construction-related
jurisdictional dispute cannot be obtained through The Building and
Construction Trades Department, AFL-CIO, contractors and
subcontractors, of whatever tier, shall agree to submit all such
disputes to final and binding arbitration procedures to be
administered by the American Arbitration Association (“
AAA ”) and in conformity with AAA’s Commercial
Arbitration Rules, Expedited Procedures, with an arbitrator who is
an experienced labor arbitrator and is a member of the National
Academy of Arbitration.
8. Broker . Tenant hereby
represents to Landlord that Tenant has dealt with no broker other
than NAIBT Commercial (“ Broker ”) in connection
with this Amendment. Tenant agrees to indemnify and hold Landlord,
its trustees, members, principals, beneficiaries, partners,
officers, directors, employees, mortgagee(s) and agents, and the
respective principals and members of any such agents harmless from
all claims of any brokers claiming to have represented Tenant in
connection with this Amendment (other than Broker).
9. No Other Modifications .
Except as modified in this Agreement, all other terms and
conditions of the Lease shall remain unchanged and in full force
and effect. To the extent of a conflict between the terms of the
Lease and the terms of this Amendment, the terms of this Amendment
shall prevail. A breach by Tenant of any of the terms of this
Amendment shall constitute a material breach by Tenant of the Lease
as to which Landlord shall have all rights and remedies. This
Amendment may be executed in multiple counterparts, each of which
shall be deemed to be an original, but all of which, together,
shall constitute one and the same instrument.
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IN WITNESS WHEREOF, the parties
hereto have executed this Amendment.