ASSIGNMENT, ASSUMPTION, AND
AMENDMENT OF SUBLEASE
THIS ASSIGNMENT,
ASSUMPTION, AND AMENDMENT OF SUBLEASE (this
“Agreement”), is entered into as of the 30th day of
August, 2006, by and between NUASIS CORPORATION, a Delaware
corporation (“Assignor”), INTERVOICE, INC., a Texas
corporation (“Assignee”) and PAYPAL, INC., a Delaware
corporation (“Sublandlord”).
WHEREAS,
Sublandlord and Bryant Street Associates, LLC, a California limited
liability company (“Original Prime Landlord”), entered
into that certain Lease dated as of August 15, 2001 covering
approximately 50,210 square feet of space in the building known as
303 Bryant Street in the City of Mountain View, California (the
“Building”), as more particularly described therein,
which Lease has been amended by that certain First Addendum of
Lease dated October 30, 2001 pursuant to which the leased
premises was expanded to 54,188 square feet (such Lease, as amended
by such First Addendum of Lease, the “Prime
Lease”);
WHEREAS, 303
Bryant Street, LLC a Delaware limited liability company, is the
current owner of the Building and the landlord under the Prime
Lease (“Prime Landlord”);
WHEREAS, Assignor
and Sublandlord entered into that certain Sublease dated as of
March 30, 2004 (the “Sublease”), covering
approximately 25,879 rentable square feet of space (the
“Sublease Premises”) located in the Building, as more
particularly described in the Sublease;
WHEREAS, Assignee
intends to acquire substantially all of the assets of Assignor,
including the Sublease (the “Acquisition”);
WHEREAS, in
connection with the Acquisition, Assignor desires to assign its
right, title and interest in and to the Sublease to Assignee, and
Assignee desires to assume Assignor’s right, title and
interest in and to the Sublease;
WHEREAS,
Sublandlord, in consideration of the amendments to the Sublease set
forth below, has agreed to consent to the above-described
assignment and assumption and, subject to the terms contained
herein, to release Assignor from liability under the Sublease
accruing from and after the Effective Date (hereinafter
defined);
WHEREAS, as of the
Effective Date, the parties desire to amend the term of the
Sublease, and to provide for Assignee to have an option to extend
the term of the Sublease for an additional term to expire on
June 30, 2012;
NOW, THEREFORE, in
consideration of the premises and for other good and valuable
consideration, the receipt and sufficiency of which is hereby
acknowledged, the parties hereby agree as follows:
1.
Assignment and Assumption . Effective as of the later of
(i) the date on which the closing of the Acquisition occurs,
or (ii) the date on which Prime Landlord consents to the
Assignment
1
(hereinafter
defined) (such later date, the “Effective Date”),
Assignor hereby assigns, conveys, transfers and sets over unto
Assignee all of Assignor’s right, title and interest in, to
and under the Sublease (including without limitation
Assignor’s rights under Sections 19, 20, 22, 23, and
25), and Assignee hereby accepts said assignment of the Sublease
from Assignor and, subject to the terms of this Agreement, assumes
all duties, obligations and liabilities of Assignor under the
Sublease arising from and after the date hereof (such assignment
and assumption, the “Assignment”).
2. Consent
of Sublandlord . In consideration of the terms and provisions
hereinafter set forth, Sublandlord hereby consents to the
Assignment. By consenting to the Assignment, Sublandlord undertakes
no obligation to consent to any further assignment of the Sublease
or to any future subleases of any part of the Sublease Premises.
Notwithstanding Sublandlord’s consent to the Assignment,
Sublandlord acknowledges that Assignee is a Permitted Transferee
pursuant to Section 7(c)(i) of the Sublease.
3.
Release . The parties acknowledge that certain rent and
other charges are past due under the Sublease. Accordingly,
Sublandlord has drawn $125,000.00 from the Letter of Credit
pursuant to Section 18 of the Sublease and applied the same to
the past due amounts under the Sublease. Assignee shall pay to
Sublandlord the additional amount of $128,250.49 on or before the
Effective Date. Upon such payment, Sublandlord agrees that
effective on the Effective Date, (i) all amounts due under the
Sublease through August 31, 2006 shall be deemed paid in full,
and (ii) Assignor shall be released from any and all actions,
causes of action, judgments, executions, suits, claims, demands,
liabilities, damages and expenses arising under the Sublease after
the Effective Date. In no event shall Assignor or Assignee be
required to restore or renew the Letter of Credit. In the event the
Effective Date occurs after August 31, 2006, within five
(5) days after the Effective Date, Assignee shall pay to
Sublandlord all Base Rent and other amounts owing under the
Sublease with respect to the period from September 1, 2006,
through the Effective Date.
(a)
Sublandlord Representations . Sublandlord represents to
Assignee that (i) the Prime Lease is in full force and effect,
and has not been further amended; (ii) the Sublease is in full
force and effect, and has not been amended; (iii) to
Sublandlord’s best knowledge, no default exists on the part
of Sublandlord under the Prime Lease or the Sublease, nor, except
as provided below, does there exist any event which, with the
giving of notice or passage of time or both, could constitute such
a default or event of default, (iv) to Sublandlord’s
best knowledge, there are no pending or threatened actions, suits
or proceedings before any court or administrative agency against
Sublandlord which could, in the aggregate, adversely affect the
Sublease Premises or the ability of Sublandlord to perform its
obligations under the Sublease, and Sublandlord is not aware of any
facts which might result in any actions, suits or proceedings, and
(v) except for the past due amounts described in
Section 3 above, to Sublandlord’s best knowledge no
default exists on the part of Subtenant under the Sublease, nor
does there exist any event which, with the giving of notice or
passage of time or both, could constitute such a default.
Approximately three years ago, Original Prime Landlord claimed that
Sublandlord is obligated to include in the premises covered by the
Prime Lease certain ground floor retail space in the Building.
Sublandlord disputed such claim, but is currently paying rent
thereon with a reservation of rights.
2
(b)
Assignor Representations . Assignor represents to
Sublandlord that (i) to Assignor’s best knowledge, no
default exists on the part of Assignor (except with regard to the
past due amounts described in Section 3 above) under the
Sublease, nor does there exist any event which, with the giving of
notice or passage of time or both, could constitute such a default
or event of default, and (ii) to Assignor’s best
knowledge, there are no pending or threatened actions, suits or
proceedings before any court or administrative agency against
Assignor which could, in the aggregate, adversely affect the
Sublease Premises, and Assignor is not aware of any facts which
might result in any actions, suits or proceedings.
5. Amendment
of Sublease .
(a)
Temporary Term . Effective on the Effective Date, the term
of the Sublease shall be amended to expire on the date which is six
(6) months following the Effective Date (such six (6) month
period, the “Temporary Term”). At any time after the
first sixty (60) days of the Temporary Term, either Assignee
or Sublandlord may give notice to the other of its intention to
terminate the Sublease prior to the natural expiration of the
Temporary Term, which termination date shall be specified in such
notice; provided, however, such termination date shall be at least
thirty (30) days after the date the termination notice is delivered
to the non-terminating party. However, neither party may terminate
the Sublease under this Section 5(a) if, prior to the non-
terminating party’s receipt of such termination notice,
Assignee has exercised its Renewal Option (hereinafter
defined).
(b) Rent
During Temporary Term . Effective on the Effective Date, the
schedule of Base Rent set forth in Section 3(a) of the Sublease
shall be deleted in its entirety. During the Temporary Term, prior
to the expiration or termination of the Sublease in accordance with
Section 5(a) above or the occurrence of the Extended Term
Commencement Date (as defined in Section 5(c) below), as
applicable, the Base Rent payable under the Sublease shall be equal
to $1.20 per month per rentable square foot of the Sublease
Premises (i.e., $31,054.80 per month). Rent Adjustment, Maintenance
Costs and all other charges under the Sublease shall be payable
during the Temporary Term as set forth in the Sublease.
(c)
Renewal Option . Section 24 of the Sublease is hereby
deleted in its entirety. At any time during the Temporary Term,
provided neither party has notified the other of its exercise of
its right to terminate the Sublease, Assignee shall have the option
to extend the term of the Sublease to expire on June 30, 2012
(the “Renewal Option”). Assignee may exercise such
option by giving written notice thereof to Sublandlord, and upon
such exercise, (i) the term of the Sublease shall be
automatically extended to expire on June 30, 2012 (the
“Expiration Date”) (and the Temporary Term shall be
deemed terminated), and (ii) neither party shall have any
further right to terminate the Sublease pursuant to subsection
(a) above. In the event Assignee fails to exercise the Renewal
Option on or before the end of the Temporary Term, then the
Sublease shall expire at the end of the Temporary Term. The period
from the date of Assignee’s exercise of the Renewal Option
until the Expiration Date is hereinafter called the “Extended
Term”. The date on which Assignee exercises the Renewal
Option is hereinafter called the “Extended Term Commencement
Date” or “ETCD”. Promptly after Assignee’s
exercise of the Renewal Option, Sublandlord and Assignee shall
execute a written agreement acknowledging such exercise of the
Renewal Option; however, the term of the Sublease shall be extended
on the Extended Term
3
Commencement
Date, notwithstanding the failure of Sublandlord and Assignee to
enter into such agreement. If Assignee does not exercise the
Renewal Option on or before the expiration of the Temporary Term,
such Renewal Option shall be deemed waived.
(d) Rent
During Extended Term .
(i) If
the Extended Term Commencement Date occurs on or before the
sixtieth (60th) day of the Temporary Term, then the Base Rent
during the Extended Term shall be as follows:
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Monthly Base Rent Per
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Monthly Installment
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Time Period
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Rentable
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(based on 25,879 rentable
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by Month
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Square Foot
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square feet)
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$
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1.20
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$
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31,054.80
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$
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0.00
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$
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0.00
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$
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1.30
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$
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33,642.72
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$
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1.40
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$
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36,230.64
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$
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1.50
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$
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38,818.56
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$
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1.60
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$
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41,406.36
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Month 61 - Expiration Date
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$
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1.70
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$
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43,994.28
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For purposes of
the foregoing sched
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