Exhibit 10.19
SUBLEASE AGREEMENT
SUBLEASE
This Sublease
(“Sublease”) is entered into as of the 29
th
day of June, 2004, by
and between BigBand Networks, Inc., a Delaware corporation
(“Sublessee”), and ADC Telecommunications, Inc., a
Delaware corporation, as successor-in-interest to ADC Broadband
Access Systems, Inc. (“Sublessor”). Pursuant to that
certain Lease dated June 13, 1999, entered into by and between
Gateway Sherwood, Inc., a California corporation, by RREEF America
LLC, a Delaware limited liability company, its investment advisor
(“Lessor”), as landlord, Sublessor’s
predecessor-in-interest ADC Broadband Access Systems, Inc. (f/k/a
Broadband Access Systems, Inc.), as tenant (“Original
Lease”), as amended by the First Amendment to Lease dated
October 22, 1999 (“First Amendment”), as further
amended by the Second Amendment to Lease dated April 18, 2000
(“Second Amendment”), as further amended by the Third
Amendment to Lease dated April 1, 2002 (“Third
Amendment”), and as Sublessor’s interest was assigned
in Assignment of Lease dated May 24, 2004
(“Assignment”) (with the Original Lease, First
Amendment, Second Amendment, Third Amendment and Assignment
collectively referred to herein as “Lease”), Sublessor
leased from Lessor certain premises in the building located at 8
Technology Drive, Westborough, Massachusetts
(“Building”), as more particularly described in the
Lease (“Original Premises”). A copy of said Lease is
attached hereto, marked Exhibit A. Pursuant to this
Sublease, Sublessor has agreed to sublease to Sublessee a, portion
of the Original Premises, as more particularly described herein,
upon the terms and conditions set forth herein.
Sublessor leases to Sublessee, and
Sublessee hires from Sublessor, 63,972 rentable square feet on the
first and second floor, as shown on the attached floor plan, marked
Exhibit B (“Premises”).
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3.
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PROVISIONS
CONSTITUTING SUBLEASE
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(a) This Sublease is subject to all
of the terms and conditions of the Lease, and all amendments
thereto; provided, however, Sublessee’s consent must obtained
for any and all amendments after the date hereof that materially
adversely affect any of Sublessee’s rights thereunder.
Sublessee shall in no case have any rights under this Sublease that
exceed Sublessor’s rights as tenant under the Lease.
Sublessee shall neither do nor permit to be done anything which
would constitute a default under the Lease or cause the Lease to be
terminated or forfeited by reason of any right of termination or
forfeiture reserved or vested in Lessor thereunder. Sublessee shall
assume and perform the obligations of Sublessor as tenant in the
Lease to the extent said terms and conditions are applicable to the
Premises, except as expressly set forth herein. In the event of any
conflicts between the terms of the Sublease and the terms of the
Lease, for all purposes hereof, the terms of the Sublease shall
control; however, to the extent that an issue is not addressed in
the Sublease, and also not specifically excluded herein, the
terms
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of the Lease shall control. Sublessee shall not
commit or permit to be committed on the Premises any act or
omission which shall violate any term or condition of the Lease
incorporated under this Sublease. In the event of the termination
of Sublessor’s interest as tenant under the Lease for any
reason, other than a voluntary termination agreed to by Lessor and
Sublessor, then this Sublease shall terminate simultaneously
therewith without any liability of Sublessor to
Sublessee.
(b) Except as otherwise set forth
herein, all of the terms and conditions contained in the Lease are
incorporated herein, as terms and conditions of this Sublease (with
each reference therein to Lessor, as landlord, and Sublessor, as
tenant, to be deemed to refer to Sublessor, as landlord, and
Sublessee, as tenant, respectively), and along with all of the
following paragraphs set out in this Sublease shall be the complete
terms and conditions of this Sublease. The consent of Sublessor
shall be required in connection with any act which requires the
consent of Lessor, as landlord, pursuant to the Lease,
notwithstanding that a particular provision herein may not require
Sublessor’s consent or states that only Lessor’s
consent is required.
(c) The terms, provisions,
covenants, and conditions of the Lease are incorporated herein by
reference on the following mutually accepted
understandings:
(i) In any case where the Lessor
reserves the right to enter the Original Premises pursuant to the
Lease, said right shall inure to the benefit of the Lessor as well
as to Sublessor with respect to entry onto the Premises.
(ii) With respect to the performance
of any other obligations required of Lessor under the Lease,
including, but not limited to, work, services, repairs, repainting
and restoration, Sublessor’s sole obligation shall be to act
on Sublessee’s behalf in requesting the performance of the
same of Lessor, after first receiving a request in writing from
Sublessee, and to use its best efforts in order to obtain the
performance of the same from Lessor.
(iii) Notwithstanding anything in
this Sublease or the Lease to the contrary, Sublessee agrees that
Sublessor shall not be obligated to furnish for or to Sublessee any
service of any nature whatsoever. However, in accordance with
provision (ii) above, Sublessor shall act on Sublessee’s
behalf in requesting the performance of such services for the
Premises by Lessor pursuant to the terms of the Lease.
(iv) Since Lessor’s consent to
this Sublease is required pursuant to the terms of the Lease, this
Sublease and the obligations of the parties hereto shall be
contingent upon Sublessor obtaining the consent of the Lessor to
this Sublease. The parties hereto agree to be bound by the terms of
this Sublease until such time as such consent of the Lessor has
been obtained, or until such consent is deemed to have been granted
pursuant to the terms of the Lease. If for any reason such consent
of the Lessor is not obtained, this Sublease shall then be null and
void and both parties will be released from their obligations
hereunder.
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(v) Notwithstanding anything in this
Sublease to the contrary, this Sublease shall not incorporate any
provision of the Lease nor shall Sublessee benefit from the rights
or privileges contained in any provision of the Lease, which,
pursuant to and in accordance with its particular terms and
conditions is not applicable to subleases or assignments, or any
provision of the Lease, which by its nature or pursuant to a
specified prohibition contained in the Lease, is personal to
Sublessor or would not convey or transfer by a sublease or
assignment of all or a portion of the Original Premises. For the
avoidance of doubt, the following sections shall not be
incorporated herein: Sections 2, 3, and 5 and Exhibit B and
Schedule 1 of the Original Lease; Sections 5(b), (c) and (d),
6 and 7 of the First Amendment; Sections 5(b), (c) and (d),
6,7, 8 and 9 of the Second Amendment; and Sections 4, 5, 6(b),
(c) and (d), 7,11, 12 and 14 of the Third
Amendment.
(a) Term : The term
(“Term”) of this Sublease shall be for a period of
three years (i) commencing on May
, 2004
(“Commencement Date”) and (ii) ending
March 31, 2007 (“Expiration Date”), unless sooner
terminated as provided pursuant to any provision of the Lease or
this Sublease. Sublessor and Sublessee acknowledge and agree that
it is the intent of the parties hereto, that, in no event shall the
Term of this Sublease extend for a period longer than the term of
the Lease, as such Lease term may be cancelled, terminated or
reduced, pursuant to such Lease, by agreement between Lessor and
Sublessor, or otherwise.
(b) Early Access : In the
event that Sublessor shall permit Sublessee to access the Premises
prior to the Commencement Date for the construction of
improvements, such access shall be subject to all of the provisions
of this Sublease, excepting only the payment of Base Rent;
provided, however, Sublessee shall be responsible for reimbursing
Sublessor for all utility costs and all costs for any other
services used by Sublessee during such period of early access. Said
early access shall not advance the Expiration Date of this
Sublease. Further, any and all additions and improvements made by
Sublessee during said period of early access shall be at
Sublessee’s sole risk.
(a) Sublessee shall pay to Sublessor
as “Base Rent” for the Premises the sum of One Million
One Hundred Fifty-one Thousand Four Hundred Ninety-six Dollars
($1,151,496,00), payable on the first day of each calendar month,
in equal monthly installments of Ninety-five Thousand Nine Hundred
Fifty-eight Dollars ($95,958.00). The first full calendar
month’s Base Rent installment shall be paid on the
Commencement Date. Sublessee shall be responsible for the payment
of any separately metered utilities and after hours HVAC services
requested by Sublessee (as provided in Section 13 of the Lease
and Section 21 of this Sublease) and any other services
related to Sublessee’s occupancy that are billed by Lessor
above and beyond the amounts included within Direct Expenses (as
defined in the Lease). Sublessor shall be responsible for the
payment of 100% of Tenant’s Proportionate Share (as defined
in the Lease) of any increase of Direct Expenses and/or Taxes paid
or incurred during the Term of this
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Sublease over the Direct Expenses and/or Taxes
paid or incurred in the Base Year (as defined in the Lease) as set
forth in Article 4 of the Lease, and including, by way of
illustration and not limitation, real estate taxes, utilities,
janitorial services and interior/exterior building repairs and
maintenance. Base Rent for any period during the Term hereof, which
is for less than one month, shall be a pro rata portion of the
monthly installment.
(b) When any provision of this
Sublease requires the payment of any sums of money other than the
Base Rent defined above, such sums of money shall be deemed
“Additional Rent”, and shall be immediately due and
payable, unless otherwise provided for in this Sublease. All Base
Rent and Additional Rent are referred to herein collectively as
“Rent”. All payments or installments of Rent hereunder
and all sums whatsoever due under this Sublease, if not paid when
due, shall be subject to a late charge equal to the greater of:
(a) Fifty Dollars ($50.00), or (b) five percent
(5%) of the payment due for each late payment and shall bear
interest at the rate of twelve percent (12%) per annum (but
not more than the maximum allowable legal rate applicable) until
paid. If an attorney is employed to enforce Sublessor’s
rights under this Sublease, Sublessee shall pay all fees and
expenses of such attorney. Rent shall be payable without notice or
demand and without any deduction, offset, or abatement, in lawful
money of the United States of America to Sublessor at the following
address, or to such other persons or at such other places as
Sublessor may from time to time designate in writing:
ADC Telecommunications,
Inc.
Attn:
____________________
13625 Technology Drive
Eden Prairie, MN 55344
Sublessee shall not be able to
exercise any rights under Sections 11 or 12 of the Third Amendment.
Sublessee shall have no option to renew this Sublease or expansion
option, right of first refusal, termination option, or other such
option under the Lease, if any. Notwithstanding the foregoing,
Sublessor agrees to waive any renewal rights under the Lease for
the period after the Expiration Date, if Sublessee requests such
waiver in writing, to permit Sublessee to negotiate a new lease for
the Premises directly with Lessor.
Sublessor shall deliver to Sublessee
the Premises in an “As Is, Where Is” condition,
excepting same shall be in a broom clean condition, and Sublessee
shall be responsible, at its sole cost, for any desired
improvements (including, but not limited to, carpeting, partitions,
ceiling tiles, wall treatment and/or lighting). Sublessee shall
provide Sublessor with copies of the plans for any improvements and
obtain Sublessor’s and Lessor’s written approval prior
to commencing any improvements. All interior improvements that are
located within the Premises as of the date Sublessee occupies the
Premises and are owned by Sublessor, which may include furniture,
equipment, cabling, telephone systems, computer systems and
Premises-specific
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