SECOND AMENDMENT TO OFFICE
LEASE
This SECOND
AMENDMENT TO OFFICE LEASE (this “Second Amendment”) is
made and entered into as of the 8 th day of November, 2002, by and between LEXINGTON
SAN VICENTE ASSOCIATES, LLC, a California limited liability company
(“Landlord”), and EQUITY MARKETING, INC. a Delaware
corporation (“Tenant”).
A. Miracle
Mile, L.L.C., a Delaware limited liability company,
predecessor-in-interest to Landlord, and Tenant entered into that
certain Office Lease, dated July 17, 1998 (the “Office
Lease”), as amended by that certain First Amendment to Office
Lease dated February 9, 1999 (the “First
Amendment”) (the Office Lease and the First Amendment are
hereafter collectively referred to herein as the
“Lease”), whereby Landlord leased to Tenant and Tenant
leased from Landlord those certain premises consisting of
approximately 57,128 rentable square feet (the
“Premises”) located on the first (1
st ), third (3 rd ),
fourth (4 th
) and fifth (5
th ) floors of that certain office building located
at 6330 San Vicente Boulevard, Los Angeles, California
(“Building”).
B. Landlord
and Tenant desire to extend the term of the Lease and make
modifications to the Lease.
NOW, THEREFORE, in
consideration of the foregoing recitals and the mutual covenants
contained herein, and for other good and valuable consideration,
the receipt and sufficiency of which is hereby acknowledged, the
parties hereby agree as follows.
1.
Capitalized Terms . All capitalized terms when used
herein shall have the same meaning as is given such terms in the
Lease unless expressly superseded by the terms of this Second
Amendment.
2.
Extension of Term . Landlord and Tenant acknowledge that
the Lease Term is scheduled to expire on December 31, 2005,
pursuant to the terms of the Lease. Notwithstanding anything to the
contrary contained in the Lease, the Lease Term is hereby extended
to and shall expire on December 31, 2009 (the “New
Expiration Date”), unless otherwise extended or sooner
terminated as provided in the Lease, as hereby amended.
Notwithstanding anything contained in the Lease to the contrary,
Landlord and Tenant hereby acknowledge and agree that (i) for
all purposes under the Lease, the initial Lease Term under the
Lease shall be deemed to expire on December 31, 2002,
(ii) the period of time commencing on January 1, 2003
(the “New Term Commencement Date”) and terminating on
the New Expiration Date shall be referred to herein as the
“New Term,” and (iii) notwithstanding anything in
Section 2.2 of the Office Lease to the contrary, Tenant shall
have one (1) remaining Option Term, which shall be applicable
following the expiration of the New Term, subject to and in
accordance with the terms of Section 2.2 of the Office
Lease.
3.1 Base Rent . Commencing on the New Term
Commencement Date and continuing throughout the New Term, Tenant
shall pay to Landlord monthly installments of Base Rent for the
Premises as follows:
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Monthly
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Monthly
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Rental Rate
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Period During
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Installment
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per Rentable
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Extended Term
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Annual Rent
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of Base Rent
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Square Foot
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$1,199,688.00
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$99,974.00
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$1.75
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$1,357,361.28
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$113,113.44
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$1.98
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$1,384,782.72
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$115,398.56
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$2.02
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$1,419,059.52
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$118,254.96
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$2.07
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$1,453,336.32
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$121,111.36
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$2.12
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$1,487,613.12
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$123,967.76
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$2.17
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$1,528,745.28
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$127,395.44
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$2.23
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3.2 Tenant’s Share of Direct Expenses .
Throughout the New Term, Tenant shall continue to pay
Tenant’s Share of Direct Expenses in accordance with the
terms of the Lease; provided, however, that effective as of the New
Term Commencement Date, the Base Year shall be the calendar year
2003.
4. Improvements in the Premises . Landlord and Tenant
hereby acknowledge and agree that Tenant is currently in occupancy
of the Premises and, except as set forth in this Section 4,
(i) Tenant shall continue to accept the Premises in its
currently existing, “as-is” condition, and
(ii) Landlord shall not be obligated to provide or pay for any
improvement work or services related to the improvement of the
Premises. Further, Tenant acknowledges that neither Landlord nor
any agent of Landlord has made any representation or warranty
regarding the condition of the Premises or with respect to the
suitability of any of the same for the conduct of Tenant’s
business.
4.1 Improvement Allowance . Tenant shall be entitled
to a one-time allowance for the design, purchase and installation
of improvements (the “Improvements”) which are affixed
to certain portions of the Premises located on the first (1
st ) and fifth (5 th )
floors of the Building, as set forth on Exhibit A, attached
hereto (the “Improvement Space”), in an amount equal to
Two Hundred Thirty-Four Thousand and No/100 Dollars ($234,000.00)
(the “Improvement Allowance”). Tenant’s
construction and installation of the Improvements shall be made in
accordance with the terms of Article 8 of the Office Lease.
Notwithstanding anything contained in Section 4.3, below, to
the contrary, in no event shall Landlord be obligated to disburse
any portion of the Improvement Allowance before August 1,
2003; provided, however, that Tenant may incur costs related to the
construction of the Improvements prior to August 1, 2003. In
the event that the Improvement Allowance is not fully utilized by
Tenant by August 1, 2005, then such unused amounts shall
revert to Landlord and Tenant shall have no further rights with
respect thereto.
4.2 HVAC Work Allowance . In addition to the
Improvement Allowance, Tenant shall be entitled to a one-time
allowance for the cost of repairs of and maintenance to the
Premises’ HVAC system (the “HVAC Work”), in an
amount equal to Fifty Thousand and No/100 Dollars ($50,000.00) (the
“HVAC Work Allowance”). The HVAC Work shall be
completed by
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-2-
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6330 SAN VICENTE BOULEVARD
[Equity Marketing, Inc.]
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Tenant in
accordance with the terms of the Office Lease (including without
limitation, Articles 7 and 8 thereof). In the event that the HVAC
Work Allo
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