Exhibit 10.36
OFFICE LEASE
AGREEMENT
CYPRESS SEMICONDUCTOR
CORPORATION, as Landlord,
and
SUNPOWER CORPORATION, as
Tenant
Dated: May 15,
2006
OFFICE LEASE
AGREEMENT
This Office Lease Agreement (the
“ Lease ”) is made and entered into as of
May 15, 2006 (the “ Effective Date ”), by
and between CYPRESS SEMICONDUCTOR CORPORATION, as Landlord, and
SUNPOWER CORPORATION, as Tenant.
BASIC TERMS
The following terms (the “
Basic Terms ”) are hereby incorporated into and made a
part of this Lease. Each reference in this Lease to the Basic Terms
shall mean the information set forth below and shall be construed
to incorporate all of the terms provided under the particular
section in this Lease pertaining to such information. In the event
of a conflict between the Basic Terms and the particular section in
this Lease, the particular section shall prevail.
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1.
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Landlord:
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Cypress Semiconductor
Corporation
198 Champion Court
San Jose, CA 95134
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2.
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Rent Payment Address:
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Cypress Semiconductor
Corporation
198 Champion Court
San Jose, CA 95134
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3.
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Property Manager:
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Cypress Semiconductor
Corporation
198 Champion Court
San Jose, CA 95134
Attention: Facilities
Director
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4.
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Address of Landlord for Notices:
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Cypress Semiconductor
Corporation
198 Champion Court
San Jose, CA 95134
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5.
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Tenant:
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Sunpower Corporation
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6.
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Address of Tenant for Notices:
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Sunpower Corporation
3939 North First Street
Attn: Manny Hernandez
Telephone No:
408-240-5500
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7.
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Premises:
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Approximately
43,732 rentable square feet. The Premises are located within the
Building as shown on Exhibit “A” . (See
Section 1.1).
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8.
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Term:
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60 months. (See
Section 1.2)
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9.
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Base Rent:
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Lease
Months
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Monthly Base
Rent / SF
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Monthly Base
Rent
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1-2
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$0 /
SF
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$0 /
SF
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3-12
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$2.16 /
SF
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$94,461
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13-24
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$2.25 /
SF
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$98,397
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25-36
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$2.34 /
SF
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$102,333
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37-48
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$2.43/
SF
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$106,269
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49-60
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$2.53 /
SF
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$110,642
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10.
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Security Deposit:
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None
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ARTICLE 1
LEASE OF PREMISES AND LEASE
TERM
1.1 Premises
Landlord, for and in consideration of the rents, covenants and
agreements hereinafter set forth, hereby leases to Tenant and
Tenant hereby leases from Landlord, upon and subject to the terms,
covenants and conditions hereinafter set forth, certain space
improved with the “ Tenant Improvements ” (as
defined in Exhibit “D” ), situated within
the office building commonly known as Building #3, (the “
Building ”), located at 3939 North First Street (the
“ Land ”) and shown and designated on the floor
plan attached hereto as Exhibit “A” (the
“ Floor Plan ”) and incorporated herein (the
“ Premises ”). The Land and Building on the
campus are sometimes referred to herein collectively as the “
Property .” The Premises shall contain approximately
43,732 square feet.
1.2 Term, Delivery and
Commencement The term of this Lease
shall commence on May 1, 2006 (the “ Commencement
Date ”) and end on April 30, 2011 (the “
Term ”). Such term shall be renewable for subsequent
one year periods on terms mutually agreed to by the Parties hereto.
Any reference to “ Lease Year ” shall refer to
each consecutive twelve (12) month period during the Term
commencing on the Commencement Date. However, if the Commencement
Date occurs on a day which is not the first day of the calendar
month, then the first Lease Year shall be for a period beginning on
the Commencement Date and ending on the last day of the calendar
month in which the Commencement Date occurs plus the following
twelve (12) consecutive calendar months. Any reference to
“ Lease Month ” shall refer to each consecutive
calendar month during the Term commencing on the Commencement Date.
However, if the Commencement Date occurs on a day which is not the
first day of the calendar month, then the first Lease Month shall
be for a period beginning on the Commencement Date and ending on
the last day of the calendar month immediately following the month
in which the Commencement Date occurs.
Tenant shall not occupy the Premises
before the Commencement Date without Landlord’s prior written
consent. Any early occupancy of the Premises by Tenant shall be
solely for the installation of Tenant’s furniture, fixtures
and equipment and shall be subject to all of the terms and
conditions of this Lease other than the obligation to pay Base Rent
(as defined in Section 2.1) and Additional Rent (as defined in
Section 2.2).
1.3 Tenant
Improvements Landlord shall use
commercially reasonable efforts to achieve substantial completion
of the Tenant Improvements on or before the Commencement Date. The
cost completion of the Tenant Improvements shall be paid by
Landlord, but only up to the amount of the Improvement Allowance
defined in Section 2.3. Any excess cost of the Tenant
Improvements shall be paid by Tenant as provided in
Section 2.3. All Additional Work (as defined in Exhibit
“D” ) shall be paid for solely by
Tenant.
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ARTICLE 2
RENTAL AND OTHER
PAYMENTS
2.1 Base Rent
Commencing July 3, 2006, Tenant covenants to pay Landlord in
advance on the first day of each and every calendar month during
the Term, without notice, demand, offset, abatement or deduction,
except as expressly provided elsewhere in this Lease, at the
address of Landlord specified at Item 2 of the Basic Terms, or
at such other place as Landlord may from time to time designate in
writing, the rental specified at Item 9 of the Basic Terms
(the “ Base Rent ”). In the event the
Commencement Date is not the first day of a calendar month and
there are less than fifteen (15) days remaining in such month,
Tenant shall pay to Landlord the Base Rent for such partial month
and the next succeeding month on or before the Commencement Date.
Base Rent for any partial month shall be prorated on the basis of
the number of days within such calendar month.
2.2 Additional Rent
All charges payable by Tenant other than Base Rent, however denoted
(including, but not limited to, any interest payable by Tenant
hereunder but excluding the Cost Differential (as defined below)),
shall be deemed “ Additional Rent .” Unless this
Lease provides otherwise, all Additional Rent shall be paid with
the next installment of Base Rent falling due. Additional Rent for
any partial month shall be prorated on the basis of the number of
days within such calendar month. All payments of Additional Rent
that are paid pursuant to an estimation provided by Landlord to
Tenant shall be payable without further demand therefor.
2.3 Improvement
Allowance Landlord shall provide Tenant
an allowance of $400,000 (the “ Improvement Allowance
”) to be applied to the Cost of Tenant Improvements (as
defined in Exhibit “D” ). The Improvement
Allowance shall be used to complete the Tenant Improvements and
shall not be used to pay for any of the Additional Work. In the
event the Cost of Tenant Improvements exceeds the Improvement
Allowance (the difference being defined as the “Cost
Differential”), pursuant to
Exhibit “D” , Tenant will pay 100%
of the Cost Differential immediately when due. In no event shall
the Cost Differential be deemed Additional Rent payable hereunder,
but rather, the Cost Differential shall be deemed paid for by
Tenant Landlord shall be entitled to recover possession of the
Premises in the event Tenant should fail to pay the Cost
Differential when due.
2.4 Delinquent Rental
Payments Any installment of Base Rent,
Additional Rent or any other charge payable by Tenant under the
provisions hereof and not paid within ten (10) days of when
due will be considered delinquent. Such delinquencies shall bear
interest at Prime, as hereafter defined, plus eight percent
(8%) per annum, not to exceed the maximum interest rate
permitted by law (the “ Maximum Rate of Interest
”) from the date when the same is due hereunder through the
date the same is paid, provided, however, Landlord agrees to waive
the application of the Maximum Rate of Interest on the first three
delinquencies in any 12 month period provided Tenant fully pays
such delinquencies within 30 days of the original due date. For
purposes of this Lease, the term “ Prime ” shall
mean the rate published from time to time by The Wall Street
Journal (or any successor publication to The Wall Street Journal)
as the “ Prime Rate ”. If The Wall Street
Journal (or any successor publication) should cease to publish a
“Prime Rate”, then Landlord shall select the rate of a
financial institution located within the State of California (the
“ State ”) to be substituted therefor. The right
to require payment of interest shall be in addition to all of
Landlord’s rights and remedies hereunder, at law or in
equity.
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2.5 Independent
Obligations Any term or provision of
this Lease to the contrary notwithstanding, the covenants and
obligations of Tenant to pay Base Rent, Additional Rent or any
other amounts due hereunder shall be independent from any
obligations, warranties or representations of Landlord hereunder.
Base Rent and Additional Rent are sometimes collectively referred
to herein as “ Rent ” or “ rent
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2.6 Tax on Rent
Tenant shall pay, also as Additional Rent, any sales tax or excise
tax on rents, gross receipts or other tax (however described
[excluding income taxes]), which is levied or assessed by the
United States of America or the State or any political subdivision
thereof, against Landlord in respect to the Base Rent, Additional
Rent, or other charges reserved under this Lease or as a result of
Landlord’s receipt of such rents or other charges accruing
under this Lease.
ARTICLE 3
OPERATING
EXPENSES—DEFINITION
3.1 Operating
Expenses
“ Operating Expenses
” shall mean all expenses incurred with respect to the
ownership, maintenance and operation of the Property as determined
by Landlord including, but not limited to the following: all Taxes
(as defined below); insurance premiums; maintenance and repair
costs; steam, electricity (including the cost of changing electric
utility suppliers), water, sewer, gas and other utility charges;
waste water treatment or operating plants; fuel; lighting; window
washing; janitorial services; trash and rubbish removal; security
guard services (in the event Landlord elects, in its sole
discretion, to utilize such service); wages payable to employees of
Landlord, whose duties are connected with the operation or
maintenance of the Property (but only for the portion of time
allocable to work related to the Property), together with all
payroll taxes, unemployment insurance, vacation allowances and
disability, pension, profit sharing, hospitalization, retirement
and other so-called fringe benefits paid in connection with such
employees amounts paid to contractors or subcontractors for work or
services performed in connection with the operation and maintenance
of the Property; all costs of supplies and materials used in
connection with the operation and maintenance of the Property; any
expense imposed upon Landlord, its contractors or subcontractors
pursuant to law or any collective bargaining agreement covering
such employees; all services, supplies, repairs, replacements or
other expenses for maintaining and operating the Property;
reasonable management fees; common expenses of the Building within
the office park, including without limitation, any common area
maintenance charges charged for the campus; such other expenses as
may be ordinarily incurred in the operation and maintenance of an
office complex similar to the Property, the cost of capital
improvements to the Property (which shall be reasonable and
customary for properties comparable to the Premises, Building or
Land), and any maintenance, improvements, repairs or alterations to
the Property required under any governmental laws, regulations or
ordinances, and any expenses incurred by Landlord in connection
with city sidewalks adjacent to the Property, any pedestrian
walkway system and any other public facility to which Landlord or
the Property are subject to. The term “ Taxes ”
shall mean any general real property tax, improvement tax,
assessment, special assessment, reassessment, levy,
charge,
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penalty or similar imposition whatsoever imposed
by any authority having the direct or indirect power to tax,
including but not limited to, (a) any city, county, state or
federal entity, (b) any school, agricultural, lighting,
drainage or other improvement or special assessment district,
(c) any agency, or (d) any private entity having the
authority to assess the Property pursuant to the Permitted
Encumbrances. Taxes shall also include (i) all charges or
burdens of whatsoever kind and nature incurred in the use,
occupancy, ownership, operation, leasing or possession of the
Property, without particularizing by any known name and whether any
of the foregoing be general, special, ordinary, extraordinary,
foreseen or unforeseen, (ii) any tax or charge for fire
protection, street lighting, streets, sidewalks, road maintenance,
refuse, sewer, water or other services provided to the Property,
and (iii) all costs and expenses, including reasonable
attorneys’ fees, incurred in connection with any appeal or
contest of Taxes by Landlord pursuant to Section 4.8
below.
3.2 Excess Operating
Expenses
“ Excess Operating
Expenses ” shall mean any Operating Expenses (i) due
and payable by Landlord and (ii) contemplated by
Section 3.1 above, but not specifically addressed on Exhibit C
or the amount of Operating Expenses that exceeds, on a line item
basis, the amount of Operating Expenses set forth on Exhibit
C.
3.3 Tenant’s Prorata Share of Excess
Operating Expenses .
“ Tenant’s Prorata
Share of Excess Operating Expenses
” (based on the rentable square
footage of the Premises divided by 61,975 the total rentable
square footage of the Building), shall mean 72% of the Excess
Operating Expenses for the applicable calendar year. Landlord
agrees to credit Tenant $1,940 per month for SLM’s office
electrical use and the cost of the electricity usage for
Landlord’s data center, as shown on the UPS amp meter located
on the Premises, against Tenant’s Prorata Share of Excess
Operating Expenses for the Electric and N. Gas line items outlined
Exhibit C. These two credits are estimates and may be adjusted from
time to time based on varying electric loads.
ARTICLE 4
OPERATING
EXPENSES—PAYMENT
4.1 Payment of Excess Operating
Expenses Tenant covenants and agrees to
pay during the Term, as Additional Rent, Tenant’s Prorata
Share of Excess Operating Expenses, which are due and payable
during any calendar year of the Term. Tenant’s Prorata Share
of Excess Operating Expenses due and payable during the calendar
year in which the Lease commences or terminates shall be prorated
as of the Commencement Date or termination date, as applicable,
based upon the number of days of the Term within said calendar year
compared to three hundred sixty-five (365) days.
4.2 Estimation of Tenant’s Prorata Share of
Excess Operating Expenses Landlord may
estimate for each calendar year of the Term (a) Excess
Operating Expenses, (b) Tenant’s Prorata Share of Excess
Operating Expenses and (c) monthly Additional Rent
attributable to Tenant’s Prorata Share of Excess Operating
Expenses. Said estimates shall be in writing and shall be delivered
to Tenant at the addresses if specified in the Basic
Terms.
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4.3 Payment of Estimated Prorata Share of Excess
Operating Expenses Tenant shall pay, as
Additional Rent, the estimated amount of Excess Operating Expenses
for each calendar year of the Term in monthly installments, in
advance, on the first day of each month during such calendar year.
In the event that said estimates are delivered to Tenant after the
first day of January of the applicable calendar year, said
estimated amount shall be payable as Additional Rent upon demand by
Landlord.
4.4 Re-Estimation of Tenant’s Prorata Share
of Excess Operating Expenses From time
to time during any calendar year of the Term, Landlord may
re-estimate the amount of Excess Operating Expenses and
Tenant’s Prorata Share of Excess Operating Expenses. In such
event, Landlord shall also re-estimate the monthly Additional Rent
attributable to Tenant’s Prorata Share of Excess Operating
Expenses for such calendar year in an amount sufficient to pay the
re-estimated amount over the balance of such calendar year after
giving credit for payments made by Tenant on the previous estimate.
Such re-estimate shall be delivered to Tenant in writing in the
manner specified in Section 4.2. Tenant shall pay said
re-estimated amount upon demand by Landlord.
4.5 Confirmation of Tenant’s Prorata Share
of Excess Operating Expenses After the
end of each calendar year of the Term, Landlord shall determine the
actual amount of Excess Operating Expenses and Tenant’s
Prorata Share of Excess Operating Expenses for such expired
calendar year and deliver a written statement of the amount thereof
to Tenant no later than 30 days following the last day of
Landlord’s fiscal year. If for any calendar year Tenant paid
less than the amounts specified in said certification, Tenant shall
pay the unpaid portion of the same within ten (10) days after
receipt of such certification.
4.6 [Reserved]
4.7 Personal Property
Taxes Tenant shall pay, prior to
delinquency, all taxes charged against trade fixtures, furnishings,
equipment or any other personal property belonging to Tenant.
Tenant shall use its best efforts to have such trade fixtures,
furnishings, equipment and personal property taxed separately from
the Property. If any of Tenant’s trade fixtures, furnishings,
equipment and personal property is taxed with the Property, Tenant
shall pay Landlord for such taxes within fifteen (15) days
after Tenant receives a written statement from Landlord for the
same.
4.8 Landlord’s Right to Contest
Taxes Landlord shall have the right,
but not the obligation, to contest the amount or validity, in whole
or in part, of any of the Taxes. All reasonable costs incurred in
connection with any such contests by Landlord including, without
limitation, reasonable, actual fees and expenses of tax consultants
and attorneys, shall be included in Operating Expenses.
4.9 [RESERVED]
4.10 Additional Services,
Utilities, Maintenance, Repairs and
Replacements The costs of all other services or utilities
including but not limited to, DI water usage, acid waste
neutralization, maintenance, consumables, repairs and replacements
to systems in or about the Premises or Property used by Tenant and
refuse removal, dumpster and
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janitorial services (to the extent
Tenant’s use exceeds the normally scheduled service) shall be
borne solely by Tenant. Tenant shall reimburse Landlord quarterly
or monthly for the same as Additional Rent upon demand by
Landlord.
ARTICLE 5
USE
5.1 Permitted Use
Tenant may use the Premises for general office and photovoltaic
R&D purposes only and for no other purpose. Tenant shall not
use the Property, or knowingly permit the Property to be used, in
violation of any Laws (as defined in Section 5.4) or in any
manner which would (a) violate any certificate of occupancy
affecting the Property, (b) make void or voidable any
insurance now or hereafter in force with respect to the Property,
(c) cause structural injury to the Property, (d) cause
the value or usefulness of the Property or any portion thereof to
substantially diminish (reasonable wear and tear excepted), or
(e) constitute a public or private nuisance or waste. Promptly
upon discovery of any prohibited use, Tenant will take all
necessary steps to discontinue such use.
5.2 Acceptance of Premises
. Tenant acknowledges that neither Landlord,
nor any agent, contractor or employee of Landlord has made any
representation or warranty of any kind whatsoever with respect to
the Premises or the Building, specifically including but not
limited to, suitability or fitness for any particular
purpose.
5.3 Increased
Insurance Tenant shall not, without
Landlord’s prior written consent, do or permit to be done
anything which will (a) increase the premium of any insurance
policy maintained by Landlord covering the Premises or the
Property, (b) cause a cancellation of or be in conflict with
any such insurance policy; (c) result in a refusal by any
insurance company in good standing to issue or continue any such
insurance in amounts satisfactory to Landlord; or (d) subject
Landlord to any liability or responsibility for injury to any
person or property by reason of any operation in the Premises or
use of the Property. Tenant shall, at Tenant’s expense,
comply with all rules, orders, regulations and requirements of
insurers and of the American Insurance Association or any other
organization performing a similar function. Tenant shall promptly,
upon demand, reimburse Landlord for any additional premium charges
for such policy or policies caused by reason of Tenant’s
failure to comply with the provisions of this section, it being
understood that demand for reimbursement shall not be
Landlord’s exclusive remedy.
5.4 Laws, Rules and
Regulations Tenant acknowledges that
this Lease is subject and subordinate to all liens, easements,
declarations, encumbrances, deeds of trust, reservations,
restrictions and other matters affecting the Property (the “
Permitted Encumbrances ”) and any law, regulation,
rule, order or ordinance of any governmental entity, applicable to
the Property or the use or occupancy thereof in effect on or after
the Effective Date (the “ Laws ”) or any of the
Rules and Regulations (as defined below) promulgated by Landlord.
Tenant shall not violate any Permitted Encumbrances, Laws or Rules
and Regulations. Tenant shall, upon Landlord’s request,
complete, execute and deliver any confirmation, certificate or
document requested by Landlord.
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5.5 Common Areas
Landlord hereby grants to Tenant the non-exclusive right, together
with all other occupants of the Building and their agents,
employees and invitees, to use the parking areas, driveways, lobby
areas and other common areas of the Property designated by Landlord
from time to time (the “ Common Area ”).
Landlord shall have the sole and exclusive control of the Common
Area, as well as the right to make changes to the Common Area.
Landlord’s rights shall include, but not be limited to, the
right to (a) restrain the use of the Common Area by
unauthorized persons; (b) place permanent or temporary kiosks,
displays, carts or stands in the Common Area and to lease same to
tenants; (c) temporarily close any portion of the Common Area
(i) for repairs, improvements or alterations, (ii) to
discourage unauthorized use, (iii) to prevent dedication or an
easement by prescription, or (iv) for any other reason deemed
sufficient in Landlord’s judgment; (d) change the shape
and size of the Common Area, add, eliminate or change the location
of any improvements located on the Common Area and construct
buildings on the Common Area, provided that any such changes shall
not materially and adversely affect Tenant’s use of the
Common Area; and (e) impose Laws concerning use of the Common
Area, including the right to exclude Tenant, its agents, employees
and invitees, from parking in designated portions of the parking
facilities comprising a portion of the Common Area.
5.6 Parking
. Tenant’s shall have a right to four
unreserved parking spaces for every 1000 rentable square feet
rented under this Lease,which spaces shall be located in the Common
Area. Such parking spaces shall be provided to Tenant at no charge
throughout the Term of this Lease. Tenant agrees that its use of
such parking facilities shall not exceed the number of spaces
provided in this Section 5.6.
5.7 Americans with Disabilities
Act Landlord makes no representations
or warranties that the Property complies with the Americans with
Disabilities Act of 1990, as amended (the “ ADA
”). Tenant shall be responsible for any corrections to any
violation of the ADA within the Premises or Property as a result of
Tenant Alterations.
ARTICLE 6
HAZARDOUS
MATERIALS
6.1 Compliance with Hazardous Materials
Laws With the exception of the
Permitted Substances specified in Exhibit B , Tenant shall
not cause or permit any hazardous materials or hazardous substances
(as addressed in any applicable state, federal or local
environmental Laws) to be brought upon, released, stored, kept,
used or disposed on the Premises, Building, Land or Property by
Tenant, its agents, employees, contractors or invitees, except for
de minimis amounts of materials, such as copying machine fluids,
which are customary for general office use and which are present in
the Premises strictly in compliance with all applicable
Laws.
6.2 Indemnification
Tenant shall indemnify, defend (with counsel reasonably acceptable
to Landlord) and protect Landlord against, and hold Landlord free
and
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harmless from, any and all claims, liabilities,
damages, costs, penalties, forfeitures, losses or expenses
(including attorneys’ fees and the costs and expenses of
enforcing this indemnity) (the “ Claims ”) for
death or injury to any person or damage to any property whatsoever
arising or resulting in whole or in part, directly or indirectly,
from the presence, treatment, storage, transportation, disposal,
release or management of hazardous materials or substances
resulting from or in any way related to Tenant’s use or
occupancy of the Premises. Tenant’s obligations hereunder
shall include, without limitation and whether foreseeable or
unforeseeable, the costs of (a) any required or necessary
repair, clean-up, detoxification or decontamination of the
Property, (b) the implementation of any closure, remediation
or other required action in connection therewith (c) any
penalties or costs imposed on Landlord by any third party and
(d) any costs and fees incurred in the enforcement of the
indemnity action. The obligations of Tenant under this section
shall survive the expiration or other termination of this
Lease.
ARTICLE 7
SERVICES
7.1 Landlord’s
Obligations. Landlord
shall provide the following services, the cost of which shall be
deemed Operating Expenses:
7.1.1 Janitorial Service . Nightly Janitorial
services on Monday through Friday in the Premises, including
cleaning, upkeep, trash removal, vacuuming, maintenance of towels,
tissue and other restroom supplies and such other work as is
customarily performed in connection with nightly Janitorial
services in office complexes similar in construction, location, use
and occupancy to the Property.
7.1.2 Utilities
Electrical energy for lighting and operation of office machines,
air conditioning and heating as required for general office use and
photovoltaic R&D purposes during the hours specified in
subsection 7.1.3. The electrical energy provided will be sufficient
for operation of personal computers and other equipment of similar
low electrical consumption, and for customary fluorescent office
lighting but will not be sufficient for main frame computers,
computer rooms or for non-standard lighting. Tenant shall not use
any equipment or lighting requiring electrical energy in excess of
the above standards without receiving Landlord’s prior
written consent, which consent shall not be unreasonably withheld
but may be conditioned upon Tenant paying all costs of installing
the equipment and facilities necessary to furnish such excess
energy and an amount equal to the average cost per unit of
electricity for the Building applied to the excess use as
determined by an engineer selected by Landlord. All standard
lighting bulbs, tubes, ballasts and starters within the Premises
shall be replaced by Landlord as an Operating Expense. Any
non-standard lighting bulbs, tubes, ballasts and starters within
the Premises shall be replaced by Tenant. Tenant will pay actual
building meter charges less credits given for Landlord’s data
room electricity and SLM’s office electricity as described in
section 3.3
7.1.3 Heating and Air Conditioning
. Heat and air conditioning, sufficient to
maintain comfortable temperatures in Landlord’s judgment,
Monday through Friday from 8:00 a.m. to 6:00 p.m. This is the
current energy management schedule, however, since tenant is
responsible for actual utility costs, different schedules will be
set as requested by tenant.
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7.1.4 Water . Hot and
cold water from the standard building outlets for lavatory,
restroom and drinking purposes. Special water requests such as DI
will be handled on a project request basis. Maintenance and
consumables for such systems will be the responsibility of the
Tenant.
7.1.5 Other Provisions Relating to Services
. No interruption in, or temporary stoppage
of, any of the aforesaid services shall be deemed an eviction or
disturbance of Tenant’s use and possession, relieve Tenant
from any obligation herein set forth or render Landlord liable for
damages or abatement of rent.
7.1.6 Effects on Utilities
. Tenant shall not, without the prior
written consent of Landlord, use any apparatus or device in or
about the Premises which causes substantial noise or vibration.
Tenant shall not connect any apparatus or device to electrical
current or water except through the electrical and water outlets
installed as part of the Landlord’s Improvements or Tenant
Improvements.
ARTICLE 8
MAINTENANCE AND
REPAIR
8.1 Landlord’s
Obligations Except as otherwise
provided in this Lease, Landlord shall repair and maintain the
following in good order, condition and repair: (a) the
foundations, exterior walls and roof of the Building, (b) the
electrical, mechanical, plumbing, heating and air conditioning
systems, facilities and components located in the Building which
are concealed and used in common by all tenants of the Property and
(c) the Common Area. Landlord shall also maintain and repair
plate glass and the exterior surfaces of walls that are adjacent to
Common Area, unless such maintenance and repair becomes necessary
in whole or in part due to (i) the negligence of Tenant, its
employees, agents, customers, licensees or invitees in or about the
Premises or Property, or (ii) damage caused by breaking and
entering into the Premises. The cost of Landlord’s repair and
maintenance hereunder shall be included in Operating Expenses.
Neither Base Rent nor Additional Rent shall be reduced, nor shall
Landlord be liable, for loss or injury to or interference with
property, profits or business arising from or in connection with
any such repairs or maintenance.
8.2 Tenant’s
Obligations Tenant, at Tenant’s
sole cost and expense, shall keep and maintain the Premises
(including all non-structural interior portions, systems and
equipment; interior surfaces of exterior walls, interior moldings,
partitions and ceilings; and interior electrical, lighting and
plumbing fixtures) in as good order, condition and repair as they
were on the Commencement Date, reasonable wear and tear and damage
from fire and other casualties excepted.
In the event that compliance with
any Laws is required, which is due in whole or in part to
Tenant’s specific use of the Premises (as opposed to general
office use) and/or Tenant’s specific actions or inactions
with respect to the Premises, the cost of compliance shall be
Tenant’s sole responsibility. Likewise, in the event any
governmental authority requires any alterations to the Building or
the Premises as a result of Tenant’s particular use of the
Building or as a result of any alterations to the Premises by
Tenant, Tenant shall be obligated for the cost of
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all such alterations. In the event such
alterations involve the structural, mechanical, electrical, life
safety or heating and air conditioning systems of the Building
(“Structural Alterations”), Landlord shall have a right
to reject the performance of such alterations. If Landlord consents
to such alterations, Landlord shall make such repairs after Tenant
deposits with Landlord an amount sufficient to pay for the cost
thereof. In the event the alterations are not Structural
Alterations, Tenant shall make the repairs, at Tenant’s sole
cost and expense, subject to the requirements of Article 9
below.
Tenant shall keep the Premises in a
neat and sanitary condition and shall not commit any nuisance or
waste on the Premises or in, on or about the Property. All
uninsured damage or injury to the Premises or to the Property
caused by Tenant installing, removing or transporting any
furniture, fixtures, equipment or other property of Tenant, its
agents, contractors, servants or employees shall be repaired,
restored and replaced promptly by Tenant at its sole cost and
expense to the satisfaction of Landlord. Tenant shall be solely
responsible for, shall indemnify, protect and defend Landlord
against and hold Landlord harmless from, any penetrations or
perforations of the roof or exterior walls to the Building caused
by Tenant. It is the intention of Landlord and Tenant that Tenant
shall maintain the Premises in a first-class and fully operative
condition. All repairs made by Tenant shall be at least equal in
quality and workmanship to the original work and shall be made by
Tenant in accordance with all Laws. The maintenance obligations of
Tenant shall apply even if Tenant has vacated the
Premises.
8.3 Tenant’s Waiver of Claims Against
Landlord Except as otherwise expressly
provided in Exhibit “D” or elsewhere in
this Lease, Landlord shall not be required to furnish any services
or facilities, or make any repairs or alterations, in, about or to
the Premises or the Property.
ARTICLE 9
CHANGES AND
ALTERATIONS
9.1 Landlord Approval
Tenant shall not make any alterations, additions or improvements
involving either (a) the structural, mechanical, electrical,
plumbing, fire/life safety, heating, ventilating or air
conditioning systems of the Building, or (b) any portion of
the Property outside of the interior of the Premises. In addition,
Tenant shall not make any other alterations, additions or
improvements to the Premises or Property (the “
Alterations ”) without Landlord’s prior written
consent, which consent Landlord may grant, withhold or condition in
its discretion. Along with any request for Landlord’s consent
and before commencement of the Alterations or delivery of any
materials to be used in the Alterations, Tenant shall furnish
Landlord with plans and specifications, and names and addresses of
prospective contractors. All Alterations shall be constructed
(a) promptly by a contractor approved in writing by Landlord
in its sole discretion, (b) in a good and workmanlike manner,
(c) in compliance with all applicable Laws, (d) with FM
Global, and (e) in accordance with all orders, rules and
regulations of the Board of Fire Underwriters where the Premises
are located or any other body exercising similar
functions.
9.2 Tenant Responsibility for Cost and
Insurance Tenant shall pay the cost and
expense of all Alterations, including a 10% management fee for
Landlord’s
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review, inspection and engineering time and for
any painting, restoring or repairing of the Premises or the
Building occasioned by the Alterations. Prior to commencement of
construction of the Alterations, Tenant shall deliver the following
in form and amount satisfactory to Landlord: (a) demolition
and/or lien and completion bonds, (b) builder’s all risk
insurance, (c) commercial general liability insurance insuring
against construction related risks and copies of contracts and all
necessary permits and licenses.
9.3 Construction Obligations and Ownership
Tenant shall permit Landlord to inspect construction of the
Alterations. Upon completion of the Alterations, Tenant shall
furnish Landlord with contractor affidavits, unconditional lien
releases, full and final waivers of liens (in form satisfactory,
under applicable Laws, to extinguish all lien rights) and receipted
bills covering all labor and materials expended and used in
connection with the Alterations. Tenant shall promptly remove any
Alterations constructed and restore the Premises or Property to its
original condition prior to or at expiration as directed by
Landlord. Unless otherwise directed by Landlord or otherwise
provided for herein, all Alterations made or installed by Tenant
shall become the property of and be surrendered to Landlord upon
termination of this Lease without payment therefor by
Landlord.
9.4 Liens Tenant
shall keep the Premises free from any mechanics’,
materialmen’, designers’ or other liens arising out of
any work performed, materials furnished or obligations incurred by
or for Tenant or any person or entity claiming by, through or under
Tenant. If any such liens are filed and Tenant does not provide for
release of the same of record, or provide Landlord with a bond or
other surety satisfactory to Landlord protecting Landlord and the
Property against such liens, within thirty (30) days after
such filing, Landlord may without waiving its rights and remedies
based upon such breach by Tenant and without releasing Tenant from
any obligations hereunder, cause such liens to be released by any
means it shall deem proper, including payment of the claim giving
rise to such lien or posting a bond to cause the discharge of such
lien. In such event, all amounts paid by Landlord shall immediately
be due and payable by Tenant as Additional Rent.
NOTHING IN THIS LEASE SHALL BE
DEEMED TO BE, OR CONSTRUED IN ANY WAY AS CONSTITUTING, THE CONSENT
OR REQUEST OF LANDLORD, EXPRESSED OR IMPLIED, BY INFERENCE OR
OTHERWISE, TO ANY PERSON, FIRM OR CORPORATION FOR THE PERFORMANCE
OF ANY LABOR OR THE FURNISHING OF ANY MATERIALS FOR ANY
CONSTRUCTION, REBUILDING, ALTERATION OR REPAIR OF OR TO THE
PREMISES OR ANY PART THEREOF, NOR AS GIVING TENANT ANY RIGHT, POWER
OR AUTHORITY TO CONTRACT FOR OR PERMIT THE RENDERING OF ANY
SERVICES OR THE FURNISHING OF ANY MATERIALS WHICH MIGHT IN ANY WAY
GIVE RISE TO THE RIGHT TO FILE ANY LIEN AGAINST THE BUILDING OR
LANDLORD’S INTEREST IN THE PREMISES. TENANT SHALL NOTIFY ANY
CONTRACTOR PERFORMING ANY CONSTRUCTION WORK IN THE PREMISES ON
BEHALF OF TENANT THAT THIS LEASE SPECIFICALLY PROVIDES THAT THE
INTEREST OF LANDLORD IN THE PREMISES SHALL NOT BE SUBJECT TO LIENS
FOR IMPROVEMENTS MADE BY TENANT, AND NO MECHANIC’S LIEN OR
OTHER LIEN FOR ANY SUCH LABOR, SERVICES, MATERIALS, SUPPLIES,
MACHINERY, FIXTURES OR EQUIPMENT SHALL ATTACH TO OR AFFECT THE
STATE OR INTEREST OF LANDLORD IN AND TO THE PREMISES, THE BUILDING,
OR ANY
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PORTION THEREOF. IN ADDITION, LANDLORD SHALL
HAVE THE RIGHT TO POST AND KEEP POSTED AT ALL REASONABLE TIMES ON
THE PREMISES ANY NOTICES WHICH LANDLORD SHALL BE REQUIRED SO TO
POST FOR THE PROTECTION OF LANDLORD AND THE PREMISES FROM ANY SUCH
LIEN. TENANT AGREES TO PROMPTLY EXECUTE SUCH INSTRUMENTS IN
RECORDABLE FORM IN ACCORDANCE WITH THE TERMS AND PROVISIONS OF
FLORIDA STATUTE 713.10.
9.5 Indemnification
Tenant hereby agrees to indemnify, protect and defend Landlord
against, and hold Landlord and the Property harmless from, any
liability, cost, obligation, expense (including without limitations
reasonable attorneys’ fees and expenses incurred in enforcing
this indemnity), relating to or arising out of any
mechanics’, materialmen’, designers’ or other
liens in any manner relating to or arising out of any work
performed, materials furnished or obligations incurred by or for
Tenant or any person or entity claiming by, through or under
Tenant.
ARTICLE 10
RIGHTS RESERVED BY
LANDLORD
10.1 Landlord’s
Entry Landlord reserves the right at
all reasonable times and upon reasonable notice to Tenant to enter
the Premises to: (a) inspect the Premises; (b) show the
Premises to prospective purchasers, mortgagees, tenants and
underlying landlords; or (c) otherwise exercise and perform
Landlord’s rights and obligations under this Lease. In the
case of an emergency, Landlord and/or its authorized
representatives may enter the Premises at any time using any and
all means which Landlord may deem proper. Entry into the Premises
by Landlord in the event of any emergency shall not be construed as
a forcible or unlawful entry into, or detainer of, the Premises or
as an eviction of Tenant from the Premises or any portion
thereof.
Tenant shall permit Landlord (or its
designees) to erect, use, maintain, replace and repair pipes,
cables, conduits, plumbing and vents, and telephone, electric and
other wires or other items, in, to and through the Premises, as and
to the extent that Landlord may now or hereafter deem necessary or
appropriate for the proper operation and maintenance of the
Building.
10.2 Landlord’s
Cure If Tenant shall default in the
performance of its obligations under this Lease and if such default
is not cured within the applicable periods provided in Article 15,
Landlord may but shall not be obligated to, make any such payment
or perform any such act on Tenant’s part without waiving its
rights based upon any default of Tenant and without releasing
Tenant from any obligations hereunder. Except as may be
specifically provided to the contrary in this Lease, Tenant shall
pay to Landlord, within ten (10) days after delivery by
Landlord to Tenant of statements therefor, sums equal to
expenditures reasonably made and obligations incurred by Landlord
in connection with the remedying by Landlord of Tenant’s
defaults. If there are any outstanding monetary obligations of
Tenant under this Lease attributable to the period prior to the
expiration or termination of this Lease, such obligations shall
survive the termination or expiration of this Lease and such amount
shall be payable to Landlord within ten (10) days after
receipt of notice therefor from landlord.
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ARTICLE 11
INSURANCE
11.1 Landlord’s Casualty Insurance
Obligations Landlord shall keep the
Property insured for the benefit of Landlord, its lenders and
agents, in an amount in Landlord’s sole discretion which may
include:
(a) loss or damage by fire;
and
(b) such other risk or risks which
are customarily covered with respect to buildings and improvements
similar in construction, general location, use, occupancy and
design to the Property, including but not limited to windstorms
hail, explosion, vandalism, malicious mischief civil commotion and
such other coverage as Landlord may deem appropr