Exhibit 10.35
ASSIGNMENT AND ASSUMPTION OF
LEASE
THIS ASSIGNMENT AND ASSUMPTION OF
LEASE (referred to subsequently as this “Agreement”) is
made on May 27, 2004, by LSI Logic Corporation, as successor
in interest to International Business Machines Corporation
(“Assignor”), and Engenio Information Technologies,
Inc. (“Assignee”).
LakeCentre Plaza Ltd., LLLP, as
Landlord (“Landlord”), and Assignor, as tenant, entered
into a lease dated November 17, 1999, as assigned by
Assignment and Assumption Agreement dated August 29, 2002,
with regard to the premises known 5400 Airport Blvd.,
Suite 100 and 200, Boulder, Colorado 80301 (the
“Premises”). That lease and assignment are attached
hereto as Exhibit A and incorporated herein by this reference
and are collectively referred to in this Agreement as the
“Lease.” Assignor wishes to assign the Lease to
Assignee, and Assignee wishes to accept such assignment and assume
the obligations of tenant under the Lease, upon and subject to the
terms and conditions set forth in this Agreement. Accordingly,
Assignor and Assignee agree as follows:
1.
Assignment and Delivery of Possession. Effective
May 31, 2004 (the “Effective Date”), Assignor
hereby assigns, transfers and conveys to Assignee all of
Assignor’s right, title and interest in and to the Lease,
including, but not limited to, all of Assignor’s right, title
and interest in and to: (a) the security deposit paid by
Assignor under the Lease, and (b) the rent prepaid under the
Lease. Assignor will deliver possession of the Premises to Assignee
on the Effective Date, in the same condition in which the Premises
exist on the date of Assignee’s signature on this
Agreement.
2.
Assumption and Acceptance of Premise. Assignee hereby
accepts the foregoing assignment and assumes and agrees to pay all
rent and other charges and perform and observe all covenants,
conditions, obligations and agreements of the tenant under the
Lease to be paid, performed or observed on or after the Effective
Date of this Agreement Assignee hereby accepts the Premises in the
condition existing on the date of Assignee’s signature on
this Agreement.
3.
Assignor’s Representations and Warranties. Assignor
represents and warrants to Assignee that as of the date hereof and
as of the Effective Date: (a) the Lease is in full force and
effect, and unmodified, (b) Assignor’s interest in the
Lease is free and clear of any liens, encumbrances, or adverse
interests of third parties, (c) Assignor has full and lawful
authority to assign its interest in the Lease, (d) there
exists no default under the Lease by Assignor nor any circumstances
which, with the passage of time or the giving of notice, or both,
would be a default under the Lease, (e) to the best of
Assignor’s knowledge, there exists no default under the Lease
by Landlord nor any circumstances which, with the passage of time
or the giving of notice, or both, would be a default under the
Lease, (f) no part of the security deposit under the Lease has
been used by Landlord, and (g) Assignor is not aware of any
defects in the Premises not previously disclosed to Assignee in
writing.
4.
Indemnification. Assignee shall not be responsible, to the
Landlord, to Assignor, or to any other party, for the discharge or
performance of any duties or obligations to be performed by the
tenant under the Lease prior to the Effective Date of this
Agreement, and Assignor agrees to and shall indemnify and hold
Assignee harmless from and against any and all actions, claims,
demands, losses, liabilities, damages and expenses (including
reasonable attorneys’ fees): (a) arising out of or
relating to any breach or failure to perform any duties or
obligations under the Lease to be performed by the tenant
thereunder prior to the Effective Date of this Agreement, or
(b) resulting from a breach of any representation, warranty,
covenant or agreement made by Assignor in this Agreement. Assignee
agrees to and shall indemnify and hold Assignor harmless from and
against any and all actions, claims, demands, losses, liabilities,
damages and expenses (including reasonable attorneys’ fees),
or (c) arising out of or relating to any breach or failure to
perform any duties or obligations under the Lease to be performed
by the tenant thereunder from and after the Effective Date of this
Agreement, or (d) resulting from a breach of any covenant or
agreement made by Assignee in this Agreement.
5.
Modification of Lease. Assignor agrees that Assignee and
Landlord may amend the Lease in any way after the Effective Date of
this Agreement, without notice to or consent of Assignor, and
without in any manner releasing or relieving Assignor from
liability under the Lease as is exists on the Effective Date of
this Agreement, and Assignor shall remain liable under all the
terms, covenants,
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conditions, obligations and
agreements of the Lease as they exist on the Effective Date of this
Agreement.
6.
Miscellaneous. This Agreement may be modified only by a
written instrument signed by both Assignor and Assignee. This
Agreement shall be binding upon Assignor and Assignee and their
respective heirs, personal representatives, successors and assigns.
This Agreement shall be governed by, and construed and enforced in
accordance with, the laws of the State of Colorado. In the event of
any dispute or litigation arising out of or relating to this
Agreement, the prevailing party shall be awarded and paid its
expenses, including reasonable attorneys’ fees, from the
non-prevailing party.
Assignor and
Assignee have executed this Agreement on the day and year first
written above.
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ASSIGNOR:
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ASSIGNEE:
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LSI Logic
Corporation
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Engenio
Information Technologies, Inc.
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/s/ David G.
Pursel
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By:
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/s/ David E
Sanders
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Its: VP,
General Counsel & Corp Sec
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Its: V.P.
General Counsel
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Date:
May 27, 2004
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Date
5-27-04
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LSI Logic Legal
Department
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Date
05-27-2004
Approved as to form
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By:
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Andrew S.
Hughes
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CONSENT TO ASSIGNMENT
The
undersigned (Landlord identified above) hereby consents to the
foregoing Assignment and Assumption of Lease, on the express
conditions, agreed to by Assignor and Assignee by their signatures
above, that: (i) Assignor (tenant under the Lease) will
continue to remain primarily liable (jointly and severally with
Assignee) for the payment of all rent and other sums and the
performance and observance of all covenants, conditions,
obligations and agreements required of tenant under the Lease, in
accordance with the terms of the Lease; (ii) if any default
under the Lease occurs, Landlord will have the right to collect the
rent and other sums due under the Lease directly from either
Assignor or Assignee or both without waiving any of
Landlord’s rights against the other party; and (iii) no
further assignment of the Lease, and no subletting of all or any
portion of the Premises, will be made without the prior written
consent of Landlord.
LANDLORD: LakeCentre Plaza Ltd.,
LLLP
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conditions, obligations and
agreements of the Lease as they exist on the Effective Date of this
Agreement.
6.
Miscellaneous. This Agreement may be modified only by a
written instrument signed by both Assignor and Assignee. This
Agreement shall be binding upon Assignor and Assignee and their
respective heirs, personal representatives, successors and assigns.
This Agreement shall be governed by, and construed and enforced in
accordance with, the laws of the State of Colorado. In the event of
any dispute or litigation arising out of or relating to this
Agreement, the prevailing party shall be awarded and paid its
expenses, including reasonable attorneys’ fees, from the
non-prevailing party.
Assignor and
Assignee have executed this Agreement on the day and year first
written above.
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ASSIGNOR:
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ASSIGNEE:
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LSI Logic
Corporation
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Engenio
Information Technologies, Inc.
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/s/
David G.
Pursel
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By:
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/s/
David E
Sanders
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Its: VP,
General Counsel & Corp Sec
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Its: V.P.
General Counsel
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Date:
May 27, 2004
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Date
5-27-04
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LSI Logic Legal
Department
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Date
05-27-2004
Approved as to form
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By:
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Andrew S.
Hughes
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CONSENT TO ASSIGNMENT
The
undersigned (Landlord identified above) hereby consents to the
foregoing Assignment and Assumption of Lease, on the express
conditions, agreed to by Assignor and Assignee by their signatures
above, that: (i) Assignor (tenant under the Lease) will
continue to remain primarily liable (jointly and severally with
Assignee) for the payment of all rent and other sums and the
performance and observance of all covenants, conditions,
obligations and agreements required of tenant under the Lease, in
accordance with the terms of the Lease; (ii) if any default
under the Lease occurs, Landlord will have the right to collect the
rent and other sums due under the Lease directly from either
Assignor or Assignee or both without waiving any of
Landlord’s rights against the other party; and (iii) no
further assignment of the Lease, and no subletting of all or any
portion of the Premises, will be made without the prior written
consent of Landlord.
LANDLORD: LakeCentre Plaza Ltd.,
LLLP
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By:
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[ILLEGIBLE]
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PARTNER
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5/28/04
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EXHIBIT D
ASSIGNMENT AND ASSUMPTION AGREEMENT
THIS AGREEMENT
made the 29 th day of August, 2002, by and between
INTERNATIONAL BUSINESS MACHINES CORPORATION, a New York
corporation, with an office at New Orchard Road, Armonk, New York
10504 (hereinafter “IBM”) and LSI Logic Corporation, a
Delaware corporation, having an office at 1621 Barber Lane,
Milpitas, California 95035, (hereinafter
“Assignee”).
WITNESSETH:
WHEREAS, by a
certain lease dated as of November 17,1999 as amended and
supplemented (hereinafter collectively called the
“Lease”) IBM leases from Lake Centre Plaza, Ltd., LLLP,
(“Lessor”) certain premises described in the Lease in
the office building located at 5400 Airport Blvd., Suite 100,
Boulder, Colorado 80301, and
WHEREAS, IBM
desires to assign the Lease to Assignee and Assignee is willing to
assume the obligations imposed upon IBM under the Lease, subject to
and conditioned upon agreements hereinafter set forth.
NOW
THEREFORE, in consideration of $1.00 paid by each of the parties
hereto to the other, the receipt of which is hereby acknowledged,
and for other good and valuable consideration, the parties hereto
agree as follows:
1. IBM hereby
assigns to Assignee, effective on the date of the Closing as
defined in the Asset Purchase Agreement between LSI Logic
Corporation and IBM (“APA”), which shall have been
executed concurrent with or immediately prior to the execution
hereof (hereinafter the “Effective Date”), all of
IBM’s rights and interests in and to the Lease, a true and
complete copy of which is attached hereto, together with the
leasehold estate thereof and all rights and interests of IBM in and
to the premises created thereby (the “Premises”) in its
“as is” condition, subject to Paragraphs 3(e) and 6
hereof.
2. IBM, for
itself and its legal representatives, successors and assigns,
covenants and represents to Assignee and agrees as
follows:
(a) IBM
has full right, authority and power to assign its rights and
interests in and under the Lease, subject to
Paragraph 6;
(b) No
other assignment of the Lease has been made by IBM, and the rights
and interests of IBM in and under the Lease are now and will, on
the Effective Date, be free and clear of any liens and encumbrances
made by IBM;
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(c) IBM
is not on the date hereof, and will not on the Effective Date, be
in default under any of the terms of the Lease, having performed
all of the obligations imposed upon IBM as lessee under the Lease
and, as of the date hereof, the Lease is in full force and effect
and enforceable in accordance with its terms, and
(d) IBM
has no knowledge of any default in the performance and observance
of obligations contained in the Lease to be kept, observed and
performed by Lessor, or any condition which with the giving of
notice or passage of time, or both, would constitute a default
under the Lease.
3. Assignee,
for itself and its legal representatives, successors and assigns,
covenants and represents to IBM and agrees as follows:
(a) On
and after the Effective Date, Assignee shall assume and hereby
agrees promptly and faithfully to keep, fulfill, observe, perform
and discharge each and every covenant, duty, debt and obligation on
IBM’s part to be performed that may accrue and become
performable, due or owing from and after the Effective Date under
the terms of the Lease;
(b) The
Lease has not been and will not be further amended in any respect
without the consent of Lessor, Assignee and IBM;
(c) All
rental payments required by the terms of the Lease, which become
due and payable on and after the Effective Date, shall be made by
Assignee in accordance with the terms of the Lease and sent
directly to Lessor, unless otherwise directed in writing by
Lessor;
(d) On
the Effective Date, Assignee shall accept delivery of the Premises
in its then “as is” condition, broom clean;
(e) Notwithstanding
any provision in this Agreement to the contrary, Exhibit
“F” (in its entirety), entitled “Option to
Extend,” shall not be assigned to Assignee;
(f) Neither
Lessor’s consent nor any term or provision of the Assignment
and Assumption Agreement shall be construed as constituting a
consent by Lessor to any further assignments of the Lease or
subletting of all or any portions of the Premises covered thereby
without first obtaining the prior written consent of
Lessor;
(g) Neither
Lessor’s consent nor any term or provision of the Assignment
and Assumption Agreement shall be construed as constituting a
release or discharge by Lessor of IBM from an obligation or
liability as Tenant under the Lease; and
(h) Neither
Lessor’s consent nor any term or provision of the Assignment
and Assumption Agreement shall be construed as constituting an
amendment or modification of the Lease or waiver of any its terms
or provisions, or of any existing or future defaults thereunder,
except as set forth in Subparagraph 3(e) above.
4. (a) Without
limiting the generality of Paragraph 3(a), if Assignee
defaults in the performance of any of the covenants made by
Assignee in this Agreement (including, without
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limitation, the payment of rent
under the Lease) and such default shall continue for a grace period
of five (5) business days after receipt of notice thereof by
IBM to Assignee, then in such event IBM may cure the default. Any
sums reasonably required to be paid by IBM with respect to
obligations, debts, duties and liabilities assumed under this
Agreement but not performed by Assignee hereunder, and all sums
expended by IBM to cure a default by Assignee under the Lease or
this Agreement, are sums which are immediately due and owing to IBM
from Assignee. Assignee shall promptly pay such sums to IBM upon
written demand.
(b) As
security for the performance of its obligations under this
Agreement, Assignee hereby assigns to IBM all of Assignee’s
rights and interests in and to all subleases of the Premises, or
part thereof, covered by the Lease which may in the future be made
by Assignee. In the event of default by Assignee hereunder IBM,
after giving seven (7) days notice to any such sublessee,
shall be entitled to receive all rents, additional rents and
profits payable under said subleases, but until such notice is
given, Assignee shall be entitled to exercise all of its rights and
interests in and to these subleases, including the receipt of such
rents and profits. Assignee covenants that it will give written
notice of this collateral assignment of subleases and rentals due
thereunder to each sublessee at the time it makes any sublease.
Upon execution of each sublease, Assignee shall deliver to IBM an
executed agreement of assignment in accordance with the terms of
this paragraph, together with a duplicate original of the
sublease.
(c) In
no event shall Assignee remain in the Premises beyond the
expiration date or earlier termination of the Lease term. If
Assignee fails to surrender the Premises on or before such date as
required by the terms of the Lease, Assignee shall be liable to IBM
and reimburse IBM promptly on demand for all direct costs, expenses
and fees, and all indirect, special and consequential damages
incurred and suffered by IBM by reason of such holdover by
Assignee.
(d) This
Paragraph 4 shall survive the expiration date or earlier
termination of the Lease.
5. Any notice
to be given pursuant to this Agreement shall be in writing and
shall be served by hand or private express mail carrier, or by
United States certified or registered mail.
(a) Notices
to Assignee shall be mailed simultaneously to LSI Logic
Corporation, 1621 Barber Lane, M/S D-106, Milpitas, California
95035-7458, Attention: General Counsel and LSI Logic Corporation,
1621 Barber Lane, M/S D-129, Milpitas, California 95035-7458,
Attention: Corporate Real Estate, unless otherwise directed in
writing by Assignee.
(b) Notices
to IBM shall be mailed simultaneously to IBM’s Program
Manager at IBM Real Estate Services, 1501 LBJ Freeway,
Suite 465, Dallas, Texas 75234, and to IBM Counsel, Real
Estate Services, at IBM, New Orchard Road, Armonk, New York 10504,
unless otherwise directed in writing by IBM.
6. Notwithstanding
any provision in this Agreement to the contrary, Assignee
understands that IBM is required by Article 10 of the Lease to
obtain the consent of Lessor to this assignment of the Lease. If
for any reason Lessor fails or refuses to give such consent in
writing on or before September 12,2002, either party may elect
to terminate this Agreement by notice of such
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election to the other party, in
which event neither IBM nor Assignee shall have any claim against
the other hereunder. Assignee shall have no liability for any
obligations of IBM that accrued prior to the Effective
Date.
7.
This Agreement shall be binding on Assignee and its heirs,
distributees and executors, and IBM, and their respective legal
representatives, successors and permitted assigns.
8.
This Agreement shall not be changed except by written instrument
signed by IBM and Assignee.
IN
WITNESS WHEREOF, this Agreement has been executed by the duly
authorized representatives of IBM and Assignee as of the date first
above written.
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INTERNATIONAL
BUSINESS MACHINES
CORPORATION
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By:
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Title:
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LSI LOGIC
CORPORATION
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By: /s/ Tom Georgens
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Title: Tom Georgens
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CONSENTED TO
BY:
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LAKE CENTRE
PLAZA, LTD., LLLP
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(Landlord)
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By:
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Title:
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LEASE AGREEMENT
OFFICE AND INDUSTRIAL SPACE
This Lease Agreement is made and
entered into as of 17 day of November, 1999, by and between
LakeCentre Plaza, Ltd., LLLP (“Landlord”), whose
address is 4875 Pearl East Cr, #300. Boulder, CO 80301 , and
Mytex Corporation (Tenant”), whose address is 5400
Airport Blvd., Suite 100, Boulder, Colorado 80301
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In consideration of the
covenants, terms, conditions, agreements and payments as herein Set
forth, the Landlord and Tenant hereby enter into the following
Lease:
1. Definition . Whenever
the following words or phrases are used in this Lease, said words
or phrases shall have the following meaning:
A. “Area”
shall mean the parcel of land depicted on Exhibit “A”
attached hereto and commonly known and referred to as High Point
Boulder , Colorado. The Area includes the Leased Premises and
one or more buildings. The Area may include Common
Areas.
B. “Building”,
shall mean a building located in the Area.
C. “Common
Areas” shall mean all entrances, exits, driveways, curbs,
walkways, hallways,parking areas, landscaped areas, restrooms,
loading and service areas, and like areas or facilities which are
located in the Area and which are designated by the Landlord as
area or facilities available for the nonexclusive use in common by
persons designated by the Landlord.
D. “Leased
Premises” shall mean the premises herein leased to the Tenant
by the Landlord.
E.
“Rentable Area” shall mean;
(1) For a Single Tenant Floor. With
respect to a single tenant floor, Rentable Area will mean the sum
of (i) the floor area (measured in square feet from the outermost
surface of all walls and the midpoint of any common walls)
excluding standard openings in the floor slab used, for example,
for Building stairs, elevator and other shafts and vertical ducts
(collectively, the “Excluded Spaces”) , (ii) an
allocation of the floor area of the Common Areas and Services Areas
on such floor, and (iii) an allocation of the floor area of
Common Areas located in or serving the Building.
(2)
For a Multiple Tenant Floor. With respect to a multiple tenant
floor, Rentable Area will mean the sum of (i) the floor area
(in square feet) less any Excluded Spaces located within the
Rentable Area, and (ii) an allocation of the floor area of the
common Areas and Services Areas on such floor, and (iii) an
allocation of the floor area of Common Areas located in or serving
the Building.
(3) Columns and Non-Standard
Openings. No deductions will be made in either Paragraph 1.E.(1) or
Paragraph 1.E.(2) for (i) columns and projections necessary to
the structural support of the Building or (ii) for openings in
the floor slab which were made at the request of Tenant or to
accommodate items installed at the request of Tenant.
(4) Tenant’s
Rentable Area may change from time to time as the total rentable
area in the Building is increased or decreased.
F. “Tenant’s
Prorata Share” as to the Building in which the Leased
Premises are located shall mean an amount (expressed as a
percentage) equal to the rentable area included in the Leased
Premises divided by the total rentable area included in said
Building. The Tenant’s Prorata Share as to Common Areas shall
mean an amount (expressed as a percentage) equal to the rentable
area included in the Leased Premises divided by the total rentable
area included in all Buildings located in the Area. The
Tenant’s Prorata Share for Common Areas may change from time
to time as the rentable area in all Buildings located in the Area
is increased or decreased. The Tenant’s Prorata Share is
approximately 52.94% (43,725sf/82,589sf).
2. Leased Premises. The
Landlord hereby leases into the Tenant, and the Tenant hereby
leases from the Landlord, the following described
premises:
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Space 100 and 200 in Building
5400
consisting of approximately 43,725 square feet of rentable
area,
all as depicted on Exhibit “B” attached
hereto.
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3. Base Term, The
term of this Lease shall commence at 12:00 noon on
April 15, 2000, and, unless sooner terminated as herein
provided for, shall end at 12:00 noon on May 1, 2007
(“Lease Term”). Except as specifically provided to the
contrary herein, the Leased Premises shall, upon the termination of
this Lease, by virtue of the expiration of the Lease Term or
otherwise, be returned to the Landlord by the Tenant in as good or
better condition than when entered upon by the Tenant, ordinary
wear and tear excepted.
4. Rent . Tenant shall pay
the following rent for the Leased Premises:
A.
Base Monthly Rent . Tenant shall pay to Landlord, without
notice and without setoff, at the address of Landlord as herein set
forth, the following Base Monthly Rent (“Base Monthly
Rent”), said Base Monthly Rent to be paid in advance on the
first day of each month during the term hereof. In the event that
this Lease commences on a date other than the first day of a month,
the Base Monthly Rent for the first month of the Lease Term shall
be prorated for said partial month. Below is a schedule of Base
Monthly Rental payments as agreed upon:
During Lease Term
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For
Period
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To
Period
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A Base
Monthly
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Starting
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Ending
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Rent
of
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May 1,
2000
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$24,595.00
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May 1,
2001
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$49,191.00
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May 1,
2007
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$49,19l.00 plus
any cost of living adjustment Per paragraph 4C below.
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B. Lease
Term Adjustment . If, for any reason, other than delays caused
by the Tenant, the Leased Premises are not ready for
Tenant’s.
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occupancy on April 15,2000,
the Tenant’s rental obligation and other monetary expenses
(i.e. taxes, utilities, etc.) shall be abated in direct proportion
to the number of days of delay. It is hereby agreed that the
premises shall be deemed ready for occupancy on the day the
Landlord receives a T.C.O. or C.O. from the appropriate authority,
or on the day the Landlord gives Tenant the keys to the Leased
Premises if a building permit has not been applied for and/or is
not required by the appropriate authority.
C. Cost
of Living Adjustment. The Base Monthly Rental specified in
paragraph 4A above shall be recalculated for each Lease year as
defined hereinafter following the first Lease Year of this Lease
Agreement. The recalculated Base Monthly rental shall be
hereinafter referred to as the “Adjusted Monthly
Rental”. The Adjusted Monthly rental for each Lease year
after the First Lease Year shall be the greater of: (i) the
amount of the previous year’s Adjusted Monthly Rental, (or
the Base Monthly Rental if calculating the Adjusted Monthly Rental
for the second Lease Year), or (ii) an amount calculated by
the rent adjustment formula set forth below. In applying the rent
adjustment formula, the following definitions shall
apply:
(1) “Lease
year” shall mean a period of twelve (12) consecutive
full calendar months with the first Lease Year commencing on the
date of the commencement of the term of this Lease and each
succeeding Lease Year commencing upon the anniversary date of the
first Lease Year; however if this Lease does not commence on the
first day of a month, then, the first Lease Year and each
succeeding Lease Year shall commence on the first day of the first
month following each anniversary date of this Lease;
(2) “Bureau”
shall mean the Bureau of Labor Statistics of the United States
Department of the Labor or any successor agency that shall issue
the Price Index referred to in this Lease Agreement.
(3) “Price
Index” shall mean the “Consumer Price Index-All Urban
Consumers-All Items (CPI-U) U.S. City Average (1982-84=100)”
issued from time to time by the Bureau. In the event the Price
Index shall hereafter be converted to a different standard
reference base or otherwise revised, the determination of the
increase in the Price Index shall be made with the use of such
conversion factor, formula or table as may be published by
Prentice-Hall, Inc. of failing such publication, by another
nationally recognized publisher of similar statistical information.
In the event the Price Index shall cease to be published, then, for
the purposes of this paragraph 4C there shall be substituted for
the Price Index such other index as the Landlord and the Tenant
shall agree upon, and if they are unable to agree within sixty
(60) days after the Price Index ceases to be published, such
matter shall be determined by arbitration in accordance with the
Rules of the American Arbitration Association.
(4) “Base
Price Index” shall mean the Price Index released to the
public during the second calendar month preceding the commencement
of this Lease Agreement.
(5) “Revised
Price Index” shall mean the Price Index released to the
public during the second calendar month preceding the Lease Year
for which the Base Annual Rental is to be adjusted:
(6) “Basic
Monthly Rental” shall mean the Basic Monthly Rental set forth
in subparagraph 4A above. The rent adjustment formula used to
calculate the Adjusted Monthly Rental is as follows:
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Revised Price
Index X Base Monthly Rental
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Base Price
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Not withstanding the above
formula, the Adjusted Monthly Rental shall not be less than 103% or
greater than 106% of the previous year’s Adjusted Monthly
Rental, or the Basic Monthly Rental if such adjustment is for the
Second Lease Year. The Adjusted monthly Rental as herein above
provided shall continue to be payable monthly as required in
paragraph 4A above without necessity of any further notice by the
Landlord to the Tenant.
D. Total
Net Lease. The Tenant understands and agrees that this Lease is
a total net lease (a “net, net, net lease”), whereby
the Tenant has the obligation to reimburse the Landlord for a share
of all costs and expenses (taxes, assessments, other charges,
insurance, trash removal, Common Area operation and maintenance and
like costs and expenses), incurred by the Landlord as a result of
the Landlord’s ownership and operation of the
Area.
(E) Use
of Premises. Tenant shall use the Leased Premises only for
business offices, research and development and for no other
purpose whatsoever except with the written consent of Landlord.
Tenant shall not allow any accumulation of trash or debris on the
Leased Premises or within any portion of the Area. All receiving an
delivery of goods and merchandise and all removal of garbage and
refuse shall be made only by way of the rear and/or other service
door provided therefore. In the event the Leased Premises shall
have no such door, then these matters shall be handled in a manner
satisfactory to Landlord. No storage of any material outside of the
Leased Premises shall be allowed unless first approved by Landlord
in writing, and then in only such areas as are designated by
Landlord. Tenant shall not commit or suffer any waste on the Leased
premises nor shall Tenant permit any nuisance to be maintained on
the Leased Premises or permit any disorderly conduct or other
activity having a tendency to annoy or disturb any occupants of any
part of the Area and/or any adjoining property.
7.
Laws and Regulations — Tenant Responsibility . The
Tenant shall, at its sole cost and expense,comply with all laws and
regulations of any Govermental entity, board, commission or agency
having jurisdiction over the Leased Premises. Tenant agrees not to
install any electrical equipment that overloads any electrical
paneling, circuitry or wiring and further agrees to comply with the
requirements of the insurance underwriter or any governmental
authorities having jurisdiction thereof.
8.
Landlord’s Rules and Regulations . Landlord reserves
the right to adopt and promulgate rules and regulations applicable
to the leased premises and from time to time or supplement amend or
supplement said rules or regulations, Notice of such rules and
regulations amendments and supplements thereto shall be given to
Tenant, and Tenant agrees to comply with the observe such rules and
regulations and amendments and
Page 2 of 16
supplements
thereto provided that the same apply uniformly to all Tenants of
the Landlord in the Area
9.
Parking . If the Landlord provides off street parking for
the common use of Tenants, employees and customers of the Area, the
Tenant shall park all vehicles of whatever type used by Tenant
and/or Tenant’s employees only in such areas thereof as are
designated by Landlord for this purpose, and Tenant accepts the
responsibility of seeing that Tenant’s employees park only in
the areas so designated. Tenant shall, upon the request of the
Landlord, provide to the Landlord license numbers of the
Tenant’s vehicles and the vehicles of Tenant’s
employees. During the duration of this lease, Landlord shall not
decrease the 200 parking spaces allocated to the Area.
10.
Control of Common Areas - Exclusive control of the Landlord
. All Common Areas shall at all times be subject to the exclusive
control and management of Landlord, notwithstanding that Tenant
and/or Tenant’s employees and/or customers may have a
nonexclusive right to the use thereof. Landlord shall have the
right from time to time to establish, modify and enforce rules and
regulations with respect to the use of said facilities and Common
Areas.
11.
Taxes .
A. Real Property Taxes and Assessments . The Tenant
shall pay to the Landlord on the first day of each month, as
additional rent, the Tenant’s Prorata Share of all real
estate taxes and special assessments levied and assessed against
the Building in which the Leased Premises are located and the
Common Areas. If the first and last years of the Lease Term are not
calendar years, the obligations of the Tenant hereunder shall be
prorated for the number of days during the calendar year that this
Lease is in effect. The monthly payments for such taxes and
assessments shall be $5,283.00 until the Landlord receives
the first tax statement for the referred to properties. Thereafter,
the monthly payments shall be based upon 1/12th of the prior
year’s taxes and assessments. Once each year the Landlord
shall determine the actual Tenant’s Prorata Share of taxes
and assessments for the prior year and if the Tenant has paid less
than the Tenant’s Prorata Share for the prior year the Tenant
shall pay the deficiency to the Landlord with the next payment of
Base Monthly Rent, or, if the Tenant has paid in excess of the
Tenant’s Prorata Share for the prior year the Landlord shall
forthwith refund said excess to the Tenant.
B. Personal Property Taxes . Tenant shall be
responsible for, and shall pay promptly when due, any and all taxes
and/or assessments levied and/or assessed against any furniture,
fixtures, equipment and items of a similar nature installed and/or
located in or about the Leased Premises by Tenant.
C. Rent Tax . If a special tax, charge or assessment
is imposed or levied upon the rents paid or payable hereunder or
upon the right of the Landlord to receive rents hereunder (other
than to the extent that such rents are included as a part of the
Landlord’s income for the purpose of an income tax), the
Tenant shall reimburse the Landlord for the amount of such tax
within fifteen (15) days after demand therefore is made upon the
Tenant by the Landlord.
D. Other Taxes, Fees and Charges . Tenant shall pay
to Landlord, on the first day of each month, as additional rent,
Tenant’s Pro Rata Share of any ’Other Charges’
(as hereinafter defined) levied, assessed, charged or imposed
against the Area, as a whole. Unless paid directly by Tenant to the
authority levying, assessing, charging or imposing same, Tenant
shall also pay to Landlord, on the first day of the month following
payment of same by Landlord, the entire costs of any such
’Other Charges’ levied, assessed, charged or imposed
against the Leased Premises, Tenant’s use of same, or
Tenant’s conduct of business thereon. For purposes of this
provision, ’Other Charges’ shall mean and refer to any
and all taxes, assessments, impositions, user fees, impact fees,
utility fees, transportation fees, infrastructure fees, system
fees, license fees, and any other charge or assessment imposed by
any governmental authority or applicable subdivision on the Area,
the Leased Premises or the ownership or use of the Area or Leased
Premises, or the business conducted thereon, whether or not
formally denominated as a tax, assessment, charge or other nominal
description, whether now in effect or hereafter enacted or Imposed
(excluding, however, Landlord’s Income taxes).
E. Should Landlord protest and win a reduction in the real
estate taxes for the Building and Areas, Tenant shall be obligated
to pay its Prorata Share of the cost of such protest, if the
protest is handled by a party other than the Landlord.
12. Insurance .
A. Landlord’s Insurance . Landlord shall obtain and
maintain such fire and casualty insurance on the core and shell of
the Building in which the Leased Premises are located and the
Common Areas, as well as such loss of rents, business interruption,
liability or any other insurance, as it deems appropriate, with
such companies and on such terms and conditions as Landlord deems
acceptable. Such insurance shall not be required to cover any of
Tenant’s inventory, furniture, furnishings, fixtures,
equipment or tenant improvements (whether or not installed on the
Leased Premises by or for Tenant and whether or not included within
the tenant finish provided by Landlord), and Landlord shall not be
obligated to repair any damage thereto or replace any of same, and
Tenant shall have no interest in any proceeds of Landlord’s
insurance.
B. Tenant’s Insurance . Tenant shall, at its sole cost
and expense, obtain and maintain throughout the term of this Lease,
on full replacement cost basis, “all risk” insurance
covering all of Tenant’s Inventory, furniture, furnishings,
fixtures, equipment and all tenant improvements or tenant finish
(whether or not installed by Landlord) and betterments located on
or within the Leased Premises. In addition, Tenant shall obtain and
maintain, at its sole cost and expense, comprehensive, general
public liability insurance providing coverage from and against any
comprehensive injury and property damage. Such liability coverage
shall be written on an "occurrence" basis, with limits of not less
than $1,000,000.00 combined single limit coverage.
All policies of insurance required to be carried by Tenant
hereunder shall be written by an insurance company licensed to do
business in the State of Colorado, and shall name Landlord as an
additional named insured and/or less payee, as Landlord may direct.
Each such policy shall provide that same shall not be changed or
modified without at least thirty (30) days’ prior written
notice to Landlord and any mortgages of Landlord. Certificates
evidencing the extent and effectiveness of all Tenant’s
insurance shall be delivered to Landlord. The limits of such
insurance shall not, under any circumstances, limit the liability
of Tenant under this Lease.
In the event that Tenant fails to maintain any of the insurance
required of it pursuant to this provision, Landlord shall have the
right (but not the obligation) at Landlord’s election, to pay
Tenant’s premiums or to arrange substitute insurance with an
insurance company of Landlord’s choosing, in which event any
premiums advanced by Landlord shall constitute additional rent
payable under this Lease and shall be payable by Tenant to Landlord
immediately upon demand for same. Landlord shall also have the
right, but no the obligation, whether or not Tenant maintains
coverage to carry any such insurance as Landlord may elect in order
to provide coverage in the event Tenant fails to properly maintain
such insurance.
Page 3 of 16
The
right of Landlord here under shall be in addition to, and not in
lieu of, of any other rights or remedies available to Landlord
under this Lease of provided by law or in equity. Without limiting
the foregoing, in the event that coverage of any risk for which
Tenant is responsible pursuant to this Section 12 is ultimately
provided by coverage maintained by Landlord, whether due to
Tenant’s failure to provided or maintain such insurance or
otherwise, Tenant shall promptly reimburse Landlord for an amount
equal to any deductible incurred, immediately upon demand for
same.
D.
Tenant’s Share of Landlord Insurance Tenant shall pay
the Landlord as additional rent Tenant’s Prorata Share of the
insurance secured by the Landlord pursuant to “12A”
above. Payment shall be made on the first day of each month as
additional rent. The monthly payments for such insurance shall be
$225,00 until changed by Landlord as a result of an Increase or
decrease in the cost of such insurance.
E
Mutual Subrogation Waiver Landlord and Tenant hereby grant
to each other, on behalf of any insurer providing fire and extended
coverage to either of them covering the Leased Premises, Buildings
or other improvements thereon or contents thereof, a waiver of any
right of subrogation any such insurer of one party may acquire
against the other or as against the Landlord or Tenant by virtue of
payments of any loss under such insurance . Such a waiver shall be
effective so long as the Landlord and Tenant are empowered to grant
such waiver under the terms of their respective insurance policy or
policies and such waiver shall stand mutually terminated as of the
date either Landlord or Tenant gives notice to the other that the
power to grant such waiver has been so terminated.
13.
Utilities
A. Tenant
shall be solely responsible for and promptly pay all charges (as
part of the amount paid per Paragraph 16 below) for heat, water,
gas, electric, sewer service and any other utility service used or
consumed on the Leased Premises. In no event shall Landlord be
liable for any interruption or failure in the supply of any such
utility to the Leased Premises.
In
the event the utility company supplying water and or
sewe
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