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Exhibit
10.6
FIFTH AMENDMENT TO
OFFICE LEASE
THIS FIFTH AMENDMENT TO
OFFICE LEASE (this “ Amendment ”) is made and
effective as of December 1, 2006 (the “ Effective
Date ”) by and between MAGUIRE PROPERTIES-SAN DIEGO TECH
CENTER, LLC, a Delaware limited liability company (“
Landlord ”), and KINTERA, INC., a Delaware corporation
(“ Tenant ”).
RECITALS
A. Landlord is the owner of
that certain improved real property located at 9605 Scranton Road
Drive, San Diego, California (referred to herein alternatively as
“ Building 1 ” or the “ Building
”). Building 1 is a part of that certain project, with all
common areas and appurtenant parking facilities, commonly known as
the “San Diego Tech Center” (the “ Project
”).
B. San Diego Tech Center,
LLC, a Delaware limited liability company (“ SDTC
”), predecessor-in-interest to Calwest (defined below), as
landlord, and Tenant, as tenant, entered into that certain Office
Building Lease dated as of August 7, 2000 (the “
Original Lease ”), as amended by (i) that certain
First Amendment to Lease dated November 1, 2000 (the “
First Amendment ”) by and between Calwest Industrial
Properties, LLC (“ Calwest ”),
successor-in-interest to SDTC and predecessor-in-interest to
Landlord, as landlord, and Tenant, as tenant, (ii) that
certain Second Amendment to Lease dated June 24, 2002 (the
“ Second Amendment ”) by and between Calwest, as
landlord, and Tenant, as tenant, (iii) that certain Third
Amendment to Lease dated February 13, 2004 (the “
Third Amendment ”) by and between Calwest, as
landlord, and Tenant, as tenant, and (iv) that certain Fourth
Amendment to Lease dated April 1, 2005 (the “ Fourth
Amendment ”) by and between Calwest, as landlord, and
Tenant, as tenant. The Original Lease as amended by the First
Amendment, the Second Amendment, the Third Amendment and the Fourth
Amendment are collectively referred to herein as the “
Lease ”.
C. Pursuant to the Lease,
Tenant has certain rights to use and occupy (i) that certain
premises consisting of all of the second (2nd) Floor of the
Building consisting of approximately 20,543 rentable square feet
(approximately 18,345 usable square feet) (the “ Second
Floor Premises ”) as more particularly shown on
Exhibit “A-1”, attached hereto, and
(ii) that certain premises consisting of a portion of the
sixth (6th) Floor of the Building commonly known as Suites 600
and 620 and consisting of approximately 9,769 rentable square feet
(approximately 8,822 usable square feet) (the “ Sixth
Floor Premises ”) (collectively, the “ Existing
Premises ”), all as more particularly described in the
Lease.
D. The Lease is scheduled to
expire on February 28, 2007 (the “ Scheduled
Expiration Date ”).
E. Landlord and Tenant hereby
desire by this Amendment to (i) surrender to Landlord the
Sixth Floor Premises on or before the Sixth Floor Premises
Termination Date (defined in Section 1.1, below) and
(ii) add to the Premises that certain space in the Building
commonly known as Suite 310 consisting of approximately 7,350
rentable square feet (approximately 6,608 usable square feet) (the
“ Suite 310 Premises ”) as more particularly
shown on Exhibit “A-2”, attached hereto,
(iii) extend the Term of the Lease, and (iv) further
amend the Lease upon and subject to each of the terms, conditions,
and provisions set forth herein.
F. All capitalized terms used
herein without definition are defined as set forth in the
Lease.
NOW, THEREFORE, in
consideration of the Recitals set forth above, the agreements set
forth below and other good and valuable consideration, the receipt
and sufficiency of which are hereby acknowledged, Landlord and
Tenant hereby agree as follows:
1. Amendment
.
1.1 Termination of Tenant’s Lease of the Sixth
Floor Premises . Tenant agrees that Tenant shall vacate and
surrender the Sixth Floor Premises to Landlord in the condition
required by Section 10.2 of the Original Lease on or before
the Sixth Floor Premises Termination Date (defined below);
provided, however, that notwithstanding the foregoing (and
notwithstanding anything to the contrary contained in the Lease),
(a) Tenant shall have no obligation to replace any walls that
Tenant has previously removed from the Premises with the consent of
Landlord and (b) Tenant shall have no obligation under this
Section 1.1 (or under Section 10.2 of the Original Lease)
to remove from the Sixth Floor Premises any Alterations (other than
any Alterations which are of an extraordinary nature (such as
fountains, raised computer flooring, fish tanks, etc.) which would
likely be unusable by a subsequent office tenant of the Sixth Floor
Premises). Notwithstanding anything to the contrary contained
herein, in the event that Tenant does not vacate and surrender the
Sixth Floor Premises to Landlord on or before the Sixth Floor
Premises Termination Date, then such tenancy shall be deemed a
“holdover tenancy” subject to the provisions of
Section 30.10 of the Original Lease (as amended by
Section 1.11 below), including, without limitation, the
obligation of Tenant to pay to Landlord “holdover” Rent
with respect to the Sixth Floor Premises. Following the Sixth Floor
Premises Termination Date, neither Landlord nor Tenant shall have
any further rights or obligations under the Lease with respect to
the Sixth Floor Premises, other than any rights or obligations
applicable to the Sixth Floor Premises which by their terms survive
the expiration or earlier termination of the Lease (including,
without limitation, Tenant’s obligations under
Section 30.10 of the Original Lease and under this
Section 1.1), and the Sixth Floor Premises shall be deleted
from the “Premises” demised under the Lease. The
“ Sixth Floor Premises Termination Date ” means
the date that is ten (10) business days following the
Substantial Completion Date (defined below).
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1.2 Addition of
Suite 310 Premises .
(a) Commencing on
the Suite 310 Premises Commencement Date (as defined below), the
Suite 310 Premises shall be added to the Premises, and following
the Suite 310 Premises Commencement Date, all references in the
Lease to “Premises” shall include the Suite 310
Premises. The “ New Rent Commencement Date ”
means the date that is five (5) days (including a weekend)
after the earlier to occur of (i) the Substantial Completion
Date (defined below) or (ii) the Outside Start Date (defined
below). The “ Substantial Completion Date ”
means the date on which Substantial Completion of all of the Fifth
Amendment Tenant Improvements (as defined in the Work Letter
attached hereto as Exhibit “ B ” (the
“ Work Letter ”)) occurs; provided, however,
that if Landlord is delayed in achieving Substantial Completion of
the Fifth Amendment Tenant Improvements by reason of any Tenant
Delay (defined in the Work Letter), the Substantial Completion Date
shall be deemed to occur on the date that Substantial Completion of
the Fifth Amendment Tenant Improvements would have occurred had the
Tenant Delay(s) not occurred. The “ Outside Start Date
” means October 1, 2007; provided, however, that the
Outside Start Date shall be extended on a day for day basis for
each day of Landlord Delay (defined in the Work Letter) that
occurs. Any disputes between the parties as to the date upon which
the Substantial Completion Date or the Outside Start Date would
have occurred had Tenant Delay(s) or Landlord Delay(s), as
applicable, not occurred shall be resolved by means of arbitration
pursuant to Section 30.18 of the Lease.
(b) The term of
Tenant’s lease of the Suite 310 Premises (the “
Suite 310 Premises Term ”) shall commence on the New
Rent Commencement Date and shall expire on the Extended Term
Expiration Date
(c) Following the
New Rent Commencement Date, all references in the Lease to the
“Premises” shall mean and refer to the Second Floor
Premises and the Suite 310 Premises, collectively, and the
“Premises” shall consist of a total of approximately
27,893 rentable square feet in the aggregate.
1.3 Extension of
Term . Landlord and Tenant hereby agree to extend the Term
of the Lease for an additional period (the “ Extended
Term ”) commencing on March 1, 2007 (the “
Extended Term Commencement Date ”) and continuing
through the last day of the calendar month in which the date that
is sixty (60) months after the New Rent Commencement Date
occurs (the “ Extended Term Expiration Date
”).
1.4 Rent
.
(a) Prior to
Substantial Completion . During the portion of the Term
commencing on the date (the “ Execution Date ”)
on which Tenant shall deliver a copy of an executed counterpart of
this Agreement to Landlord and continuing through and including the
New Rent Commencement Date (including any portion of the Extended
Term prior to the New Rent Commencement Date), Tenant shall
continue to pay to Landlord Rent with respect to the Premises in
the amounts required and in the manner required under the Lease
(and Rent shall be payable during each month (or partial month)
after the Scheduled Expiration date and prior to the New Rent
Commencement Date at the same monthly rate that Rent is payable
with respect to the month in which the Scheduled Expiration Date
occurs (i.e., the Rent for February, 2007, which is set forth in
the Lease)).
(b) Second
Floor Premises . Commencing on the New Rent Commencement
Date and continuing through the Extended Term, the Rent payable
with respect to the Second Floor Premises shall be as follows and
shall be payable in accordance with and subject to the procedures
set forth in Article 4 of the Original Lease:
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Months
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Rentable Area
of Second Floor
Premises (rsf) |
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Monthly
Rent Rate
($/rsf/mo) |
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|
Monthly
Rent
($/mo) |
|
Annual Rent
($/yr) |
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1 – 12*
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20,543 |
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$ |
2.40 |
** |
|
$ |
49,303.20 |
|
$ |
591,638.40 |
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13 – 24
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20,543 |
|
$ |
2.47 |
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|
$ |
50,782.30 |
|
$ |
609,387.60 |
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25 – 36
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20,543 |
|
$ |
2.55 |
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|
$ |
52,305.77 |
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$ |
627,669.24 |
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37 – 48
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20,543 |
|
$ |
2.62 |
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|
$ |
53,874.94 |
|
$ |
646,499.28 |
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49 – 60
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20,543 |
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$ |
2.70 |
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$ |
55,491.19 |
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$ |
665,894.28 |
* Month 1 commences on the New Rent
Commencement Date. In the event that the New Rent Commencement Date
shall occur on a day other than the first day of any calendar
month, Months 1 – 12 shall include the partial calendar month
during which the New Rent Commencement Date occurs together with
the following twelve (12) full calendar months (such that, by
way of example, if the New Rent Commencement Date were to occur on
March 21, 2007, Months 1—12 would begin on
March 21, 2007 and end on March 31, 2008, and thirteen
(13) payments of Monthly Rent (one of which would be prorated)
would be payable with respect to Months 1 – 12).
** Monthly Rents set forth above
escalate at an annual rate of 3%. Monthly Rent Rates set forth
above also escalate at an annual rate of 3% but have been rounded
to the nearest cent.
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(c) Suite 310
Premises . Commencing on the New Rent Commencement Date and
continuing through the Extended Term, the Rent payable with respect
to the Suite 310 Premises shall be as follows and shall be payable
in accordance with and subject to the procedures set forth in
Article 4 of the Original Lease:
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Months
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Rentable Area
of Suite
310
Premises
(rsf) |
|
Monthly
Rent Rate
($/rsf/mo) |
|
|
Monthly
Rent
($/mo) |
|
Annual Rent
($/yr) |
|
1 – 12*
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7,350 |
|
$ |
2.40 |
** |
|
$ |
17,640.00 |
|
$ |
211,680.00 |
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13 – 24
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7,350 |
|
$ |
2.47 |
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$ |
18,169.20 |
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$ |
218,030.40 |
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25 – 36
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7,350 |
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$ |
2.55 |
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|
$ |
18,714.28 |
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$ |
224,571.36 |
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37 – 48
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7,350 |
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$ |
2.62 |
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$ |
19,275.71 |
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$ |
231,308.52 |
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49 – 60
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7,350 |
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$ |
2.70 |
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$ |
19,853.98 |
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$ |
238,247.76 |
* Month 1 commences on the New Rent
Commencement Date. In the event that the New Rent Commencement Date
shall occur on a day other than the first day of any calendar
month, months 1 – 12 shall include the partial calendar month
during which the New Rent Commencement Date occurs together with
the following twelve (12) full calendar months (such that, by
way of example, if the New Rent Commencement Date were to occur on
March 21, 2007, Months 1 – 12 would begin on
March 21, 2007 and end on March 31, 2008, and thirteen
(13) payments of Monthly Rent (one of which would be prorated)
would be payable with respect to Months 1 – 12).
** Monthly Rents set forth above
escalate at an annual rate of 3%. Monthly Rent Rates set forth
above also escalate at an annual rate of 3% but have been rounded
to the nearest cent.
1.5 Additional
Charges . During the Term (as extended by the Extended
Term), Tenant shall continue to pay to Landlord as Additional
Charges, Tenant’s Building Share of Excess Building Expenses
and Tenant’s Project Share of Excess Project Expenses, all in
accordance with the provisions of the Lease, as amended
hereby.
(a) Extended
Term Base Year . Effective as of the Extended Term
Commencement Date, the Base Year set forth in
(i) Item 6(c) of the Basic Lease Terms of Original Lease
shall be amended from “2001” to “the calendar
year 2007 (ii) Section 5.1(i) of the Original Lease shall
be amended from “the period from January 1, 2001 through
December 31, 2001” to “the period from
January 1, 2007 through December 31, 2007”, and
(iii) Section 5.1(j) of the Original Lease shall be
amended from “the period from January 1, 2002 through
December 31, 2002” to “the period from
January 1, 2008 through December 31,
2008”.
(b) The parties
hereto agree that, during the portion of the Term commencing on the
Execution Date and continuing through and including the New Rent
Commencement Date (including any portion of the Extended Term prior
to New Rent Commencement Date), calculation of Tenant’s
Building Share of Excess Building Expenses and Tenant’s
Project Share of Excess Project Expenses shall be based on the
Tenant’s Building Share and Tenant’s Project Share,
respectively, as set forth in the Lease (prior to this Amendment),
notwithstanding that Tenant may be occupying premises within the
Building and Project that does not compute to Tenant’s
Building Share or Tenant’s Project Share (as set forth in the
Lease, prior to this Amendment)
(c) The parties
hereto acknowledge and agree that, commencing on the New Rent
Commencement Date, (i) the Tenant’s Building Share (as
set forth in Section 5.1(e) of the Original Lease) shall mean
17.52% (27,893 rsf/159,165 rsf) and (ii) the Tenant’s
Project Share (as set forth in Section 5.1(f) of the Original
Lease) shall mean 4.31% (27,893 rsf/647,229 rsf).
(d) Additional
Expense Exclusions . In connection with the amendments to
the Lease set forth in Section 1.5(e), below, it is hereby
agreed that, from and after the Execution Date, for purposes of
determining amounts payable by Tenant under Article 5 of the
Original Lease (as amended hereby), (i) no portion of the
Building Utility Costs (defined below) shall be included in
Building Operating Expenses and (ii) no portion of the Project
Utility Costs (defined below) be included in Building
Expenses.
(e) Utility
Costs . Notwithstanding anything to the contrary in the
Lease, commencing on the New Rent Commencement Date, Tenant’s
pro rata share of all Utility Costs (defined below) allocable to
the Premises shall be billed by Landlord to Tenant as a separate
cost item (rather than as part of Building Expenses and Project
Expenses). Accordingly, the parties hereto agree that commencing on
the New Rent Commencement Date and continuing through the Extended
Term, in addition to paying Rent and Tenant’s Building Share
and Tenant’s Project Share of Building Expenses and Project
Expenses allocable to the Premises, Tenant shall pay to Landlord,
as Additional Charges, Tenant’s pro rata share of Utility
Costs. Tenant’s pro rata share of Utility Costs shall be
payable on a monthly basis, on the first day of each calendar
month, in an amount reasonably estimated by Landlord (and as of the
date hereof, Landlord’s estimate of amounts payable by Tenant
for its pro rata share of Utility Costs is $2.76 per rentable
square foot per annum (i.e., approximately $0.23 per rentable
square foot per month). Landlord may, from time to time, by written
notice to Tenant, revise its estimate for the Tenant’s pro
rata share of Utility Costs, and thereafter all subsequent payments
by Tenant under this Section 1.5(e) shall be based on such
revised estimate. Subject to applicable Laws, all decisions with
respect to Utility Services and the costs thereof, including,
without limitation, with respect to the method and manner by which
all Utility
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