1
EXHIBIT 10.27
LEASE AGREEMENT
THIS LEASE, made this 30th day of November, 1994 between CHARLESTON PROPERTIES,
a California General Partnership, hereinafter called Landlord, and INTUIT, INC.,
a Delaware Corporation, hereinafter called Tenant.
WITNESSETH:
Landlord hereby leases to Tenant and Tenant hereby hires and takes from
Landlord those certain premises (the "Premises") outlined in red on Exhibit
"A", attached hereto and incorporated herein by this reference thereto more
particularly described as follows:
The entire two story building comprising 42,632 gross square feet of space
located in Mountain View, Santa Xxxxx County, California and further identified
at the following address: 2500 Xxxxxx. The building leased hereunder shall be
known between Landlord and Tenant as Building Two.
As used herein the Complex shall mean and include all of the land outlined in
red and described in Exhibit "B", attached hereto, and all of the buildings,
improvements, fixtures and equipment now or hereafter situated on said land.
The Complex of which the Premises form a part shall further be known as
Complex 2.
Said letting and hiring is upon and subject to the terms, covenants and
conditions hereinafter set forth and Tenant covenants as a material part of the
consideration for this Lease to perform and observe each and all of said terms,
covenants and conditions. This Lease is made upon the conditions of such
performance and observance.
1. USE Tenant shall use the Premises only in conformance with applicable
governmental laws, regulations, rules and ordinances for the purpose of office,
sales, R&D and related uses necessary for Tenant to conduct its business,
provided such uses are permitted and conform to City zoning laws and all other
governmental laws, requisitions, rules and ordinances.
and for no other purpose. Tenant shall not do or permit to be done in or about
the Premises or the Complex nor bring or keep or permit to be brought or kept
in or about the Premises or the Complex anything which is prohibited by or will
in any way increase the existing rate of (or otherwise affect) fire or any
insurance covering the Complex or any part thereof, or any of its contents, or
will cause a cancellation of any insurance covering the Complex or any part
thereof, or any of its contents. Tenant shall not do or permit to be done
anything in, on or about the Premises or the Complex which will in any way
obstruct or interfere with the rights of other tenants or occupants of the
Complex or injure or annoy them, or use or allow the Premises to be used for
any improper, immoral, unlawful or objectionable purpose, nor shall Tenant
cause, maintain or permit any nuisance in, on or about the Premises or the
Complex. No sale by auction shall be permitted on the Premises. Tenant shall
not place any loads upon the floors, walls, or ceiling, which endanger the
structure, or place any harmful fluids or other materials in the drainage
system of the building, or overload existing electrical or other mechanical
systems. No waste materials or refuse shall be dumped upon or permitted to
remain upon any part of the Premises or outside of the building in which the
Premises are a part, except in trash containers placed inside exterior
enclosures designated by Landlord for that purpose or inside of the building
proper where designated by Landlord. No materials, supplies, equipment,
finished products or semi-finished products, raw materials or articles of any
nature shall be stored upon or permitted to remain outside the Premises or on
any portion of common area of the Complex. No loudspeaker or other device,
system or apparatus which can be heard outside the Premises shall be used in or
at the Premises without the prior written consent of Landlord. Tenant shall not
commit or suffer to be committed any waste in or upon the Premises. Tenant
shall indemnify, defend and hold Landlord harmless against any loss, expense,
damage, attorneys' fees, or liability arising out of failure of Tenant to
comply with any applicable law whose compliance is Tenant's obligation
hereunder. Tenant shall comply with any covenant, condition, or restriction
("CC&R's") affecting the Premises. The provisions of this paragraph are for the
benefit of Landlord only and shall not be construed to be for the benefit of
any tenant or occupant of the Complex.
2. TERM
A. The term of this Lease shall be for a period of eight years (8)
years (unless sooner terminated as hereinafter provided) and, subject to
Paragraphs 2(B) and 3, shall commence on the 1st day of January, 1997, and end
on the 31st day of December, 2004.
B. Possession of the Premises shall be deemed tendered and the term of
this Lease shall commence when the first of the following occurs:
Ninety days after the date Landlord offers Tenant possession of the Premises
for the commencement of construction of Tenant Improvements (if any); or
(2) Upon the occupancy of the Premises by any of Tenant's operating
personnel; or
(3) n/a
(This paragraph 2 is continued on page 10 below)
3. POSSESSION If Landlord, for any reason whatsoever, cannot offer
possession of said Premises to Tenant at the commencement of the said term, as
hereinbefore specified, this Lease shall not be void or voidable; no obligation
of Tenant shall be affected thereby; nor shall Landlord or Landlord's agents be
liable to Tenant for any loss or damage resulting therefrom (subject to the
provisions of paragraph 2.B.(1) on page 10 below) but in that event the
commencement and termination dates of the Lease, and all other dates affected
thereby shall be revised to conform to the date of Landlord's delivery of
possession, as specified in Paragraph 2(b), above. The above is, however,
subject to the provision that the period of delay of delivery of the premises
shall not exceed 90 days from the commencement date herein (except those delays
caused by Acts of God, strikes, war, utilities, governmental bodies, weather,
unavailable materials, and delays beyond Landlord's control shall be excluded in
calculating such period) in which instance Tenant, at its option, may, by
written notice to Landlord, terminate this Lease. Notwithstanding anything
herein to the contrary, if Landlord has not offered possession to Tenant of the
Premises by February 1, 1997 then Tenant may cancel this Lease.
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4. RENT
A. Basic Rent. Tenant agrees to pay to Landlord at such place as
Landlord may designate without deduction, offset, prior notice, or demand, and
Landlord agrees to accept as Basic Rent for the leased Premises the total sum
of Six Million, Four Hundred Forty Five Thousand Nine Hundred Fifty Eight and
40/100. _______________________________________________________________________
($6,445,958.40 _____________) Dollars in lawful money of the United States of
America, payable as follows:
Paragraph 4A is continued on page 10 below.
B. Time for Payment. In the event that the term of this Lease
commences on a date other than the first day of a calendar month, on the date
of commencement of the term hereof Tenant shall pay to Landlord as rent for the
period from such date of commencement to the first day of the next succeeding
calendar month that proportion of the monthly rent hereunder which the number
of days between such date of commencement and the first day of the next
succeeding calendar month bears to thirty (30). In the event that the term of
this Lease for any reason ends on a date other than the last day of a calendar
month, on the first day of the last calendar month of the term hereof Tenant
shall pay to Landlord as rent for the period from said first day of said last
calendar month to and including the last day of the term hereof that proportion
of the monthly rent hereunder which the number of days between said first day
of said last calendar month and the last day of the term hereof bears to thirty
(30).
C. Late Charge. Notwithstanding any other provision of this Lease, if
Tenant is in default in the payment of rent as set forth in this Paragraph 4
when due, or any part thereof, Tenant agrees to pay Landlord, in addition to
the delinquent rental due, a late charge for each rental payment in default ten
(10) days. Said late charge shall equal ten (10%) percent of each rental payment
so in default. Landlord shall not assess a late charge after such 10 day period
unless Landlord thereafter notifies Tenant by telephone or fax that Tenant's
rental is delinquent and said rental remains delinquent for 48 hours after said
notice to Tenant.
D. Additional Rent. Beginning with the commencement date of the term
of this Lease, Tenant shall pay to Landlord in addition to the Basic Rent and
as Additional Rent the following:
(1) Tenant's proportionate share of all utilities relating to the
Complex as set forth in Paragraph 11, and
(2) Tenant's proportionate share of all Taxes relating to the
Complex as set forth in Paragraph 12, and
(3) Tenant's proportionate share of all insurance premiums
relating to the Complex, as set forth in Paragraph 15, and
(4) Tenant's proportionate share of expenses for the operation,
management, maintenance and repair of the Building (including
common areas of the Building) and Common Areas of the Complex
in which the Premises are located as set forth in Paragraph 7,
and
(5) All charges, costs and expenses, which Tenant is required to
pay hereunder, together with all interest and penalties, costs
and expenses including attorneys' fees and legal expenses,
that may accrue thereto in the event of Tenant's failure to
pay such amounts, and all damages, reasonable costs and
expenses which Landlord may incur by reason of default of
Tenant or failure on Tenant's part to comply with the terms of
this Lease. In the event of nonpayment by Tenant of Additional
Rent, Landlord shall have the rights and remedies with respect
thereto as Landlord has for nonpayment of rent.
Tenant shall pay to Landlord monthly, in advance, Tenant's prorata share of an
amount estimated by Landlord to be Landlord's approximate average monthly
expenditure for such Additional Rent items, which estimated amount shall be
reconciled within 120 days of the end of each calendar year as compared to
Landlord's actual expenditure for said Additional Rent items, with Tenant
paying to Landlord, upon demand, any amount of actual expenses expended by
Landlord in excess of said estimated amount, or Landlord refunding to Tenant
(providing Tenant is not in default in the performance of any of the terms,
covenants and conditions of this Lease) any amount of estimated payments made
by Tenant in excess of Landlord's actual expenditures for said Additional Rent
items. Landlord shall provide Tenant reasonably adequate supportive
documentation to the reconciliation. Landlord's estimate of 1994 expense and
Tenant's payment for such Additional Rent as of the commencement of the term of
this lease shall be Six Thousand Six Hundred and 00/100 ($6,600.00) Dollars per
month. Any payments required to be made by Tenant for Additional Rent shall be
made by check or instrument separate from that check or instrument used by
Tenant to make any payments for Basic Rent, pursuant to paragraph 4 A.
The respective obligations of Landlord and Tenant under this paragraph
shall survive the expiration or other termination of the term of this Lease,
and if the term hereof shall expire or shall otherwise terminate on a day
other than the last day of a calendar year, the actual Additional Rent incurred
for the calendar year in which the term hereof expires or otherwise terminates
shall be determined and settled on the basis of the statement of actual
Additional Rent for such calendar year and shall be prorated in the proportion
which the number of days in such calendar year preceding such expiration or
termination bears to 365.
(Paragraph 4D is continued below)
E. Place of Payment of Rent and Additional Rent. All Basic Rent
hereunder and all payments hereunder for Additional Rent shall be paid to
Landlord at the office of Landlord at 0000 Xxx Xxxxxx, Xxxx Xxxx, XX 00000 or
to such other person or to such other place as Landlord may from time to time
designate in writing.
F. Security Deposit. Concurrently with Tenant's execution of this
Lease, Tenant shall deposit with Landlord the sum of Seventy-Five Thousand and
00/100 ($75,000.00) Dollars. Said sum shall be held by Landlord as a Security
Deposit for the faithful performance by Tenant of all of the terms, covenants,
and conditions of this Lease to be kept and performed by Tenant during the term
hereof. If Tenant defaults with respect to any provision of this Lease,
including, but not limited to, the provisions relating to the payment of rent
and any of the monetary sums due herewith, Landlord may (but shall be required
to) use, apply or retain all or any part of this Security Deposit for the
payment of any other amount which Landlord may spend by reason of Tenant's
default or to compensate Landlord for any other loss or damage which Landlord
may suffer by reason of Tenant's default. If any portion of said Deposit is so
used or applied, Tenant shall, within ten (10) days after written demand
therefor, deposit cash with Landlord in the amount sufficient to restore the
Security Deposit to its original amount. Tenant's failure to do so shall be a
material breach of this Lease. Landlord shall not be required to keep this
Security Deposit separate from its general funds, and Tenant shall not be
entitled to interest on such Deposit. If Tenant fully and faithfully performs
every provision of this Lease to be performed by it, the Security Deposit or any
balance thereof shall be returned to Tenant (or at Landlord's option, to the
last assignee of Tenant's interest hereunder) at the expiration of the Lease
term and after Tenant has vacated the Premises. In the event of termination of
Landlord's interest in this Lease, Landlord shall transfer said Deposit to
Landlord's successor in interest whereupon Tenant agrees to release Landlord
from liability for the return of such Deposit or the accounting therefor.
(Paragraph 4F is continued below)
5. RULES AND REGULATIONS AND COMMON AREA. Subject to the terms and
conditions of this Lease and such Rules and Regulations as Landlord may from
time to time prescribe, Tenant and Tenant's employees, invitees and customers
shall, in common with other occupants of the Complex in which the Premises are
located, and their respective employees, invitees and customers, and others
entitled to the use thereof, have the non-exclusive right to use the access
roads, parking areas, and facilities provided and designated by Landlord for
the general use and convenience of the occupants of the Complex in which the
Premises are located, which areas and facilities are referred to herein as
"Common Area." This right shall terminate upon the termination of this Lease.
Landlord reserves the right from time to time to make reasonable changes in the
shape, size, location, amount and extent of Common Area. All such changes shall
not unreasonably affect Tenant's access or use of the Premises and shall not
deminish Tenant's parking rights. Landlord further reserves the right to
promulgate such reasonable rules and regulations relating to the use of the
Common Area, and any part of parts thereof, as Landlord may deem appropriate for
the best interests of the occupants of the Complex. The Rules and Regulations
shall be binding upon Tenant upon delivery of a copy of them to Tenant, and
Tenant shall abide by them and cooperate in their observance. Such Rules and
Regulations may be reasonably amended by Landlord from time to time, with or
without advance notice, and all amendments shall be effective upon delivery of a
copy to Tenant. Landlord shall not be responsible to Tenant for the
non-performance by any other tenant or occupant of the Complex of any of said
Rules and Regulations.
Landlord shall operate, manage and maintain the Common Area. The Common
Area shall be maintained in a first class manner and the expenditures for such
maintenance shall be at the discretion of Landlord.
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6. PARKING. Landlord hereby acknowledges that Tenant shall have the right to
restripe parking lots at Tenant's own expense (provided Tenant is the only
occupant of a Complex to be restriped). Any restriping shall be in compliance
with all applicable codes and regulations and Landlord shall cooperate with
Tenant in this effort. Tenant shall have the right to use with other tenants or
occupants of the Complex its proportionate share of parking spaces in the common
parking areas of the Complex. Tenant agrees that Tenant, Tenant's employees,
agents, representatives and/or invitees shall not use parking spaces outside of
the Complex parking spaces allocated to Tenant hereunder. Landlord shall have
the right, at Landlord's sole discretion, to specifically designate the
location of Tenant's parking spaces within the common parking areas of the
Complex in the event of a dispute among the tenants occupying the building
and/or Complex referred to herein, in which event Tenant agrees that Tenant,
Tenant's employees, agents, representatives and/or invitees shall not use any
parking spaces other than those parking spaces specifically designated by
Landlord for Tenant's use. Said parking spaces, if specifically designated by
Landlord to Tenant, may be relocated by Landlord at any time, and from time to
time. Landlord reserves the right, at Landlord's sole discretion, to rescind
any specific designation of parking spaces, thereby returning Tenant's parking
spaces to the common parking area. Landlord shall give Tenant written notice of
any change in Tenant's parking spaces. Tenant shall not, at any time, park, or
permit to be parked, any trucks or vehicles adjacent to the loading areas so as
to interfere in any way with the use of such areas, nor shall Tenant at any
time park, or permit the parking of Tenant's trucks or other vehicles or the
trucks and vehicles of Tenant's suppliers or others, in any portion of the
common area not designated by Landlord for such use by Tenant. Tenant shall not
park nor permit to be parked, any inoperative vehicles or equipment on any
portion of the common parking area or other common areas of the Complex. Tenant
agrees to assume responsibility for compliance by its employees with the
parking provision contained herein. If Tenant or its employees park in other
than such designated parking areas, then Landlord may charge Tenant, as an
additional charge, and Tenant agrees to pay, ten ($10.00) Dollars per day for
each day or partial day each such vehicle is parked in any area other than that
designated. Tenant hereby authorizes Landlord at Tenant's sole expense to tow
away from the Complex any vehicle belonging to Tenant or Tenant's employees
parked in violation of these provisions, or to attach violation stickers or
notices to such vehicles. Tenant shall use the parking areas for vehicle
parking only, and shall not use the parking areas for storage.
7. EXPENSES OF OPERATION, MANAGEMENT AND MAINTENANCE OF THE COMMON AREAS OF THE
COMPLEX, PREMISES AND BUILDING IN WHICH THE PREMISES ARE LOCATED. As
Additional Rent and in accordance with Paragraph 4D of this Lease, Tenant shall
pay to Landlord Tenant's proportionate share (calculated on a square footage or
other equitable basis as calculated by Landlord) of all expenses of operation,
management, maintenance and repair of the Common Areas of the Complex
including, but not limited to, license, permit and inspection fees; security;
utility charges associated with exterior landscaping and lighting (including
water and sewer charges); all charges incurred in the maintenance of landscaped
areas, lakes, parking lots, sidewalks, driveways; maintenance, repair and
replacement of all fixtures and electrical, mechanical and plumbing systems;
structural elements and exterior surfaces of the buildings; salaries and
employee benefits of personnel and payroll taxes applicable thereto; supplies,
materials, equipment and tools; the cost of capital expenditures which have the
effect of reducing operating expenses, provided, however, that in the event
Landlord makes such capital improvements, Landlord may amortize its investment
in said improvements (together with interest at the rate of fifteen (15%)
percent per annum on the unamortized balance) as an operating expense in
accordance with standard accounting practices, provided, that such amortization
is not at a rate greater than the anticipated savings in the operating expenses.
As Additional Rent and in accordance with paragraph 4D of this Lease,
Tenant shall pay its proportionate share (calculated on a square footage or
other equitable basis as calculated by Landlord) of the cost of operation
(including common utilities), management, maintenance and repair of the
Premises and the building (including common areas such as lobbies, restrooms,
janitor's closets, hallways, elevators, mechanical and telephone rooms,
stairwells, entrances, spaces above the ceilings) in which the Premises are
located. The maintenance items herein referred to include, but are not limited
to, electrical systems (such as outlets, lighting fixtures, lamps, bulbs,
tubes, ballasts), heating and airconditioning controls (such as mixing boxes,
thermostats, time clocks, supply and return grills), all interior improvements
within the Premises including but not limited to: wall coverings, window
coverings, acoustical ceilings, vinyl tile, carpeting, partitioning, doors
(both interior and exterior, including closing mechanisms, latches, locks), and
all other interior improvements of any nature whatsoever, all windows, window
frames, plate glass, glazing, truck doors, main plumbing systems of the
building (such as water and drain lines, sinks, toilets, faucets, drains,
showers and water fountains), main electrical systems (such as panels and
conduits), heating and airconditioning systems (such as compressors, fans, air
handlers, ducts, boilers, heaters), store fronts, roofs, downspouts, building
common area interiors (such as wall coverings, window coverings, floor
coverings and partitioning), ceilings, building exterior doors, skylights (if
any), automatic fire extinguishing systems and elevators; license,
permit, and inspection fees; security; salaries and employee benefits of
personnel and payroll taxes applicable thereto; supplies, materials, equipment
and tools; the cost of capital expenditures which have the effect of reducing
operating expenses, provided, however, that in the event Landlord makes such
capital improvements, Landlord may amortize its investment in said improvements
(together with interest at the rate of fifteen (15%) percent per annum on the
unamortized balance) as an operating expense in accordance with standard
accounting practices, provided, that such amortization is not at a rate greater
than the anticipated savings in the operating expenses. Tenant hereby waives all
rights under, and benefits of, subsection 1 of Section 1932 and Sections 1941
and 1942 of the California Civil Code and under any similar law, statute or
ordinance now or hereafter in effect. Tenant agrees to provide carpet xxxxxxx
under all rolling chairs or to otherwise be responsible for wear and tear of
the carpet caused by such rolling chairs if such wear and tear exceeds that
caused by normal foot traffic in surrounding areas. Areas of excessive wear
shall be replaced at Tenant's sole expense upon Lease termination.
"Additional Rent" as used herein shall not include Landlord's debt
repayments; interest on charges; expenses directly or indirectly incurred by
Landlord for the benefit of any other tenant; cost for the installation of
partitioning or any other tenant improvements; cost of attracting tenants;
depreciation; interest, or executive salaries.
Tenant agrees to contract and pay directly for five-day janitorial
service for the leased Premises and Landlord agrees to maintain the Complex in
a first-class manner.
8. ACCEPTANCE AND SURRENDER OF PREMISES By entry hereunder, Tenant accepts
the Premises as being in good and sanitary order, condition and repair and
accepts the building and improvements included in the Premises in their present
condition and without representation or warranty by Landlord as to the condition
of such building or as to the use or occupancy which may be made thereof except
as otherwise provided herein. Any exceptions to the foregoing must be by written
agreement executed by Landlord and Tenant. Tenant agrees on the last day of the
Lease term, or on the sooner termination of this Lease, to surrender the
Premises promptly and peaceably to Landlord in good condition and repair (damage
by Acts of God, fire or normal wear and tear excepted), with all interior walls
painted, or cleaned so that they appear freshly painted, and repaired and
replaced, if damaged; all floors cleaned and waxed; all carpets cleaned and
shampooed; the airconditioning and heating equipment serviced by a reputable and
licensed service firm and in good operating condition (provided the maintenance
of such equipment has been Tenant's responsibility during the term of this
Lease) together with all alterations, additions and improvements which may have
been made in, to, or on the Premises (except movable trade fixtures installed at
the expense of Tenant) except that subject to paragraph 9 of this Lease Landlord
shall notify Tenant at the same time as Landlord provides its consent to such
alterations, conditions or improvements which exceed $15,000 in construction
costs whether Landlord desires to have the Premises or any part or parts thereof
restored to their condition and configuration as when the Premises existed prior
to such alteration, addition, or improvement and if Landlord shall so desire,
then Tenant shall restore said Premises or such part or parts thereof before the
end of this Lease at Tenant's sole cost and expense. Tenant, on or before the
end of the term or sooner termination of this Lease, shall remove all of
Tenant's personal property and trade fixtures from the Premises, and all
property not so removed on or before the end of the term or sooner termination
of this Lease shall be deemed abandoned by Tenant and title to same shall
thereupon pass to Landlord without compensation to Tenant, Landlord may, upon
termination of this Lease, remove all moveable furniture and equipment so
abandoned by Tenant, at Tenant's sole cost, and repair any damage caused by such
removal at Tenant's sole cost. If the Premises be not surrendered at the end of
the term or sooner termination of this Lease, Tenant shall indemnify Landlord
against loss or liability resulting from the delay by Tenant in so surrendering
the Premises including, without limitation, any claims made by any succeeding
tenant founded on such delay. Nothing contained herein shall be construed as an
extension of the term hereof or as a consent of Landlord to any holding over by
Tenant. The voluntary or other surrender of this Lease or the Premises by Tenant
or a mutual cancellation of this Lease shall not work as a merger and, at the
option of Landlord, shall either terminate all or any existing subleases or
subtenancies or operate as an assignment to Landlord of all or any such
subleases or subtenancies.
(See paragraph 50 below)
9. ALTERATIONS AND ADDITIONS Tenant shall not make, or suffer to be made, any
alteration or addition to the Premises, or any part thereof, without the
written consent of Landlord first had and obtained by Tenant, but at the cost
of Tenant, and any addition to, or alteration of, the Premises, except moveable
furniture and trade fixtures, shall at once become a part of the Premises and
belong to Landlord. If Landlord consents to the making of any alteration,
addition, or improvement to or of the Premises by Tenant, the same shall be
made at Tenant's sole cost and expense. Any modifications to the building or
building systems required by governmental code or otherwise as a result of
Tenant's alterations, additions or improvements shall be made at Tenant's sole
cost and expense. Tenant shall retain title to all moveable furniture and trade
fixtures placed in the Premises. All heating, lighting, electrical,
airconditioning, partitioning, drapery, carpeting and floor installations made
by Tenant, together with all property that has become an integral part by the
Premises, shall not be deemed trade fixtures. Tenant agrees that it will not
proceed to make any alterations or additions, without having obtained consent
from Landlord to do so, and until five (5) days from the receipt of such
consent, in order that Landlord may post appropriate notices to avoid any
liability to contractors or material suppliers for payment for Tenant's
improvements. Tenant will at all times permit such notices to be posted and to
remain posted until the completion of work. Tenant shall, if required by
Landlord, secure at Tenant's own cost and expense, a completion and lien
indemnity bond reasonably satisfactory to Landlord, for such work in excess of
$100,000. Tenant further covenants and agrees that any mechanic's lien filed
against the Premises or against the Complex for work claimed to have been done
for, or materials claimed to have been furnished to Tenant, will be discharged
by Tenant, by bond or otherwise, within ten (10) days after the filing thereof,
at the cost and expense of Tenant. Any exceptions to the foregoing must be made
in writing and executed by both Landlord and Tenant.
(Paragraph 9 is continued on page 12 below)
[SIG]
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(Paragraph 11 is continued on page 13 below)
12. TAXES. A. As Additional Rent and in accordance with Paragraph 4D of
this Lease, Tenant shall pay to Landlord Tenant's proportionate share of all
Real Property Taxes, which prorata share shall be allocated to the leased
Premises by square footage or other equitable basis, as calculated by Landlord.
The term "Real Property Taxes", as used herein, shall mean (i) all taxes,
assessments, levies and other charges of any kind or nature whatsoever, general
and special, foreseen and unforeseen (including all installments of principal
and interest required to pay any general or special assessments for public
improvements and any increases resulting from reassessments caused by any
change in ownership of the Complex) now or hereafter imposed by any
governmental or quasi-governmental authority or special district having the
direct or indirect power to tax or levy assessments, which are levied or
assessed against, or with respect to the value, occupancy or use of, all or any
portion of the Complex (as now constructed or as may at any time hereafter be
constructed, altered, or otherwise changed) or Landlord's interest therein; any
improvements located within the Complex (regardless of ownership); the
fixtures, equipment and other property of Landlord, real or personal, that are
an integral part of and located in the Complex; or parking areas, public
utilities, or energy within the Complex; (ii) all charges, levies or fees
imposed by reason of environmental regulation or other governmental control of
the Complex; and (iii) all costs and fees (including attorneys' fees) incurred
by Landlord in contesting any Real Property Tax and negotiating with public
authorities as to any Real Property Tax. In the event said contesting results in
a refund of Real Property Taxes, Tenant shall be credited with the appropriate
proportionate share of said refund reflecting Tenant's period of occupancy. If
at any time during the term of this Lease the taxation or assessment of the
Complex prevailing as of the commencement date of this Lease shall be altered
so that in lieu of or in addition to any Real Property Tax described above
there shall be levied, assessed or imposed (whether by reason of a change in
the method of taxation or assessment, creation of a new tax or charge, or any
other cause) an alternate or additional tax or charge (i) on the value, use or
occupancy of the Complex or Landlord's interest therein or (ii) on or measured
by the gross receipts, income or rentals from the Complex, on Landlord's
business of leasing the Complex, or computed in any manner with respect to the
operation of the Complex, then any such tax or charge, however designated,
shall be included within the meaning of the term "Real Property Taxes" for
purposes of this Lease. If any Real Property Tax is based upon property or
rents unrelated to the Complex, then only that part of such Real Property Tax
that is fairly allocable to the Complex shall be included within the meaning of
the term "Real Property Taxes". Notwithstanding the foregoing, the term "Real
Property Taxes" shall not include estate, inheritance, gift or franchise taxes
of Landlord or the federal or state net income tax imposed on Landlord's income
from all sources.
B. Taxes on Tenant's Property
(1) Tenant shall be liable for and shall pay ten days before delinquency, taxes
levied against any personal property or trade fixtures placed by Tenant in or
about the Premises. If any such taxes on Tenant's personal property or trade
fixtures are levied against Landlord or Landlord's property or if the assessed
value of the Premises is increased by the inclusion therein of a value placed
upon such personal property or trade fixtures of Tenant and if Landlord, after
written notice to Tenant, pays the taxes based on such increased assessment,
which Landlord shall have the right to do regardless of the validity thereof,
but only under proper protest if requested by Tenant, Tenant shall upon demand,
as the case may be, repay to Landlord the taxes so levied against Landlord, or
the proportion of such taxes resulting from such increase in the assessment;
provided that in any such event Tenant shall have the right, in the name of
Landlord and with Landlord's full cooperation, to bring suit in any court of
competent jurisdiction to recover the amount of any such taxes so paid under
protest, and any amount so recovered shall belong to Tenant.
(2) If the Tenant improvements in the Premises, whether installed, and/or paid
for by Landlord or Tenant and whether or not affixed to the real property so as
to become a part thereof, are assessed for Real Property Tax purposes at a
valuation higher than the valuation at which standard office improvements in
other space in the Complex are assessed, then the Real Property Taxes and
assessments levied against Landlord or the Complex by reason of such excess
assessed valuation shall be deemed to be taxes levied against personal property
of Tenant and shall be governed by the provisions of 12A(i), above. If the
records of the County Assessor are available and sufficiently detailed to serve
as a basis for determining whether said Tenant improvements are assessed at a
higher valuation than standard office improvements in other spaces in the
Complex, such records shall be binding on both the Landlord and the Tenant. If
the records of the County Assessor are not available or sufficiently detailed
to serve as a basis for making said determination, the actual cost of
construction shall be used.
13. LIABILITY INSURANCE. Tenant, at Tenant's expense, agrees to keep in
force during the term of this Lease a policy of comprehensive public liability
insurance with limits in the amount of $1,000,000/1,000,000 for injuries to or
death of persons occurring in, on or about the Premises or the Complex, and
property damage insurance with limits of $500,000. The policy or policies
affecting such insurance, certificates of which shall be furnished to Landlord,
shall name Landlord as additional insureds, and shall insure any liability of
Landlord, contingent or otherwise, as respects acts or omissions of Tenant, its
agents, employees or invitees or otherwise by any conduct or transactions of
any of said persons in or about or concerning the Premises, including any
failure of Tenant to observe or perform any of its obligations hereunder; shall
be issued by an insurance company admitted to transact business in the State of
California; and shall provide that the insurance effected thereby shall not be
canceled, except upon thirty (30) days' prior written notice to Landlord. If,
during the term of this Lease, in the reasonable opinion of Landlord's Lender,
insurance advisor or counsel, the amount of insurance described in this
paragraph 13 is not adequate, Tenant agrees to increase said coverage to such
reasonable amount as Landlord's Lender, insurance advisor or counsel shall
deem adequate. Landlord shall carry a reasonable amount of liability insurance.
14. TENANT'S PERSONAL PROPERTY INSURANCE AND WORKER'S COMPENSATION
INSURANCE. Tenant shall maintain a policy or policies of fire and property
damage insurance in "all risk" form with a sprinkler leakage endorsement
insuring the personal property, inventory, trade fixtures and leasehold
improvements within the leased Premises for the full replacement value thereof.
The proceeds from any of such policies shall be used for the repair or
replacement of such items so insured.
Tenant shall also maintain a policy or policies of worker's
compensation insurance and any other employee benefit insurance sufficient to
comply with all laws.
15. PROPERTY INSURANCE. Landlord shall purchase and keep in force and, as
Additional Rent and in accordance with Paragraph 4D of this Lease, Tenant shall
pay to Landlord Tenant's proportionate share (calculated on a square footage or
other equitable basis as calculated by Landlord) of the cost of policy or
policies of insurance covering loss or damage to the Premises and Complex in
the amount of the full replacement value thereof, providing protection against
those perils included within the classification of "all risks" insurance and
flood and/or earthquake insurance, if available, plus a liability policy and a
policy of rental income insurance in the amount of one hundred (100%) percent
of twelve (12) months Basic Rent, plus sums paid as Additional Rent. If such
insurance cost is increased due to Tenant's use of the Premises or the Complex,
Tenant agrees to pay to Landlord the full cost of such increase. Tenant shall
have no interest in nor any right to the proceeds of any insurance procured by
Landlord for the Complex.
Landlord and Tenant do each hereby respectively release the other, to
the extent of insurance coverage of the releasing party, from any liability for
loss or damage caused by fire or any of the extended coverage casualties
included in the releasing party's insurance policies, irrespective of the cause
of such fire or casualty; provided, however, that if the insurance policy of
either releasing party prohibits such waiver, then this waiver shall not take
effect until consent to such waiver is obtained. If such waiver is so
prohibited, the insured party affected shall promptly notify the other party
thereof.
Page 4 of 9
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16. INDEMNIFICATION Landlord shall not be liable to Tenant and Tenant hereby
waives all claims against Landlord for any injury to or death of any person or
damage to or destruction of property in or about the Premises or the Complex by
or from any cause whatsoever, including, without limitation, gas, fire, oil,
electricity or leakage of any character from the roof, walls, basement or other
portion of the Premises or the Complex but excluding, however, the negligence or
willful misconduct of Landlord, its agents, servants, employees, invitees, or
contractors of which negligence Landlord has knowledge and reasonable time to
correct. The requirement of knowledge and reasonable time to correct, shall not
apply to direct negligent acts by Landlord or Landlord's agents, servants,
employees, Invitees or contractors. Except as to injury to persons or damage to
property the principal cause of which is the negligence or willful misconduct of
Landlord, its agents, servants, employees, invitees or contractors Tenant shall
hold Landlord harmless from and defend Landlord against any and all expenses,
including reasonable attorneys' fees, in connection therewith, arising out of
any injury to or death of any person or damage to or destruction of property
occurring in, on or about the Premises, or any part thereof, from any cause
whatsoever.
17. COMPLIANCE Tenant at its sole cost and expense, shall promptly comply with
all laws, statutes, ordinances and governmental rules, regulations or
requirements now or hereafter in effect; with the requirements of any board of
fire underwriters or other similar body now or hereafter constituted; and with
any direction or occupancy certificate issued pursuant to law by any public
officer; provided, however, that no such failure shall be deemed a breach of the
provisions if Tenant, immediately upon notification, commences to remedy or
rectify said failure. The judgment of any court of competent jurisdiction or the
admission of Tenant in any action against Tenant, whether Landlord be a party
thereto or not, that Tenant has violated any such law, statute, ordinance or
governmental rule, regulation, requirement, direction or provision, shall be
conclusive of that fact as between Landlord and Tenant. This paragraph shall not
be interpreted as requiring Tenant to make structural changes or improvements,
except to the extent such changes or improvements are required as a result of
Tenant's use of the Premises. Tenant shall, at its sole cost and expense, comply
with any and all requirements pertaining to said Premises, of any insurance
organization or company, necessary for the maintenance of reasonable fire and
public liability insurance covering the Premises.
(SEE PARAGRAPH 48)
18. LIENS Tenant shall keep the Premises and the Complex free from any liens
arising out of any work performed, materials furnished or obligation incurred
by Tenant. In the event that Tenant shall not, within ten (10) days following
the imposition of such lien, cause the same to be released of record, Landlord
shall have, in addition to all other remedies provided herein and by law, the
right, but no obligation, to cause the same to be released by such means as it
shall deem proper including payment of the claim giving rise to such lien. All
sums paid by Landlord for such purpose, and all expenses incurred by it in
connection therewith, shall be payable to Landlord by Tenant on demand with
interest at the prime rate of interest as quoted by the Bank of America.
19. ASSIGNMENT AND SUBLETTING. Tenant shall not assign, transfer or
hypothecate the leasehold estate under this Lease, or any interest therein, and
shall not sublet the Premises, or any part thereof, or any right or privilege
appurtenant thereto, or suffer any other person or entity to occupy or use the
Premises or any portion thereof, without, in each case, the prior written
consent of Landlord which consent will not be unreasonably withheld. Tenant
agrees to pay to Landlord, as additional rent, fees of all rents (after Tenant
deducts all costs of subleasing) or additional consideration received by Tenant
from its assignees, transferees or subtenants in excess of the rent payable by
Tenant to Landlord hereunder. Tenant shall by thirty days (30) written notice,
advise Landlord of its intent to assign or transfer Tenant's interest in the
Lease or sublet the Premises or any portion thereof for any part of the term
hereof. In the event Tenant is allowed to assign, transfer or sublet the whole
or any part of the Premises, with the prior written consent of Landlord, no
assignee, transferee or subtenant shall assign or transfer this Lease, either in
whole or in part, or sublet the whole or any part of the Premises, without also
having obtained the prior written consent of Landlord. A consent of Landlord to
one assignment, transfer, hypothecation, subletting, occupation or use by any
other person shall not release Tenant from any of Tenant's obligations hereunder
or be deemed to be a consent to any subsequent similar or dissimilar assignment,
transfer, hypothecation, subletting, occupation or use by any other person. Any
such assignment, transfer, hypothecation, subletting, occupation or use without
such consent shall be void and shall constitute a breach of this Lease by Tenant
and shall, at the option of Landlord exercised by written notice to Tenant,
terminate this Lease. The leasehold estate under this Lease shall not, nor shall
any interest therein, be assignable for any purpose by operation of law without
the written consent of Landlord. As a condition to its consent, Landlord may
require Tenant to pay all reasonable expenses in connection with the assignment,
and Landlord may require Tenant's assignee or transferee (or other assignees or
transferees) to assume in writing, all of the obligations under this Lease and
for Tenant to remain liable to Landlord under the Lease.
(Paragraph 19 is continued below)
20. SUBORDINATION AND MORTGAGES In the event Landlord's title or leasehold
interest is now or hereafter encumbered by a deed of trust, upon the interest
of Landlord in the land and buildings in which the demised Premises are
located, to secure a loan from a lender (hereinafter referred to as "Lender")
to Landlord, Tenant shall, at the request of Landlord or Lender, execute in
writing an agreement subordinating its rights under this Lease to the lien of
such deed of trust, or, if so requested, agreeing that the lien of Lender's
deed of trust shall be or remain subject and subordinate to the rights of
Tenant under this Lease. Tenant hereby irrevocably appoints Landlord the
attorney in fact of Tenant to execute, deliver and record any such instrument
or instruments for and in the name and on behalf of Tenant. Notwithstanding any
such subordination, Tenant's possession under this Lease shall not be
disturbed if Tenant is not in default and so long as Tenant shall pay all rent
and observe and perform all of the provisions set forth in this Lease and any
such subordination agreement shall so reflect. Tenant agrees to send to any
mortgages and/or deed of trust holders, by registered mail, a copy of any
notice of default served by Tenant upon the Landlord, provided that prior to
such notice, Tenant has been notified, in writing (by way of notice of
assignment of rents or otherwise) of the addresses of such mortgagees and/or
deed of trust holders. Tenant further agrees that if Landlord shall have failed
to cure such default within the time provided for in this Lease, any such
mortgagees and/or deed of trust holders shall have an additional thirty (30)
days within which to cure such default, or if such default is not reasonably
susceptible of cure within that time, then such additional time as may be
reasonably necessary if within such (30) days, any mortgagee and/or deed of
trust holder has commenced and is diligently pursuing the remedies necessary to
cure such default, (including but not limited to commencement of foreclosure
proceedings), in which event this Lease shall not be terminated when such
remedies are being diligently pursued. (SEE XXXXXXXXX 00 XXXXX)
00. ENTRY BY LANDLORD Landlord reserves, and shall during normal business
hours, have, the right to enter the Premises to inspect them; to perform any
services to be provided by Landlord hereunder; to submit the Premises to
prospective purchasers, mortgagers or tenants; to post notices of
nonresponsibility; and to alter, improve or repair the Premises and any portion
of the Complex, all without abatement of rent; and may erect scaffolding and
other necessary structures in or through the Premises where reasonably required
by the character of the work to be performed; provided, however, that the
business of Tenant shall be interfered with to the least extent that is
reasonably practical. For each of the foregoing purposes, Landlord shall at all
times have and retain a key with which to unlock all of the doors in an
emergency in order to obtain entry to the Premises, and any entry to the
Premises obtained by Landlord by any of said means, or otherwise, shall not
under any circumstances be construed or deemed to be a forcible or unlawful
entry into or a detainer of the Premises or an eviction, actual or
constructive, of Tenant from the Premises or any portion thereof. Landlord
shall also have the right at any time to change the arrangement or location of
entrances or passageways, doors and doorways, and corridors, elevators, stairs,
toilets or other public parts of the Complex and to change the name, number or
designation by which the Complex is commonly known, and none of the foregoing
shall be deemed an actual or constructive eviction of Tenant, or shall entitle
Tenant to any reduction of rent hereunder.
22. BANKRUPTCY AND DEFAULT The commencement of a bankruptcy action or
liquidation action or reorganization action or insolvency action or an
assignment of or by Tenant for the benefit of creditors, or any similar action
undertaken by Tenant, or the insolvency of Tenant, shall, at Landlord's option,
constitute a breach of this Lease by Tenant. If the trustee or receiver
appointed to serve during a bankruptcy, liquidation, reorganization, insolvency
or similar action elects to reject Tenant's unexpired Lease, the trustee or
receiver shall notify Landlord in writing of its election within thirty (30)
days after an order for relief in a liquidation action or within thirty (30)
days after the commencement of any action.
Within thirty (30) days after court approval of the assumption of this
Lease, the trustee or receiver shall cure (or provide adequate assurance to the
reasonable satisfaction of Landlord that the trustee or receiver shall cure) any
and all previous defaults under the unexpired Lease and shall compensate
Landlord for all actual pecuniary loss and shall provide adequate assurance of
future performance under said Lease to the reasonable satisfaction of Landlord.
Adequate assurance of future performance as used herein, includes, but shall not
be limited to: (i) assurance of source and payment of rent, and other
consideration due under this Lease; (ii) assurance that the assumption or
assignment of this Lease will not breach substantially any provision, such as
radius, location, use, or exclusively provision, in any agreement relating to
the above described Premises.
Nothing contained in this section shall affect the existing right of
Landlord to refuse to accept an assignment upon commencement of or in connection
with a bankruptcy, liquidation, reorganization or insolvency action or an
assignment of Tenant for the benefit of creditors or other similar act. Nothing
contained in this Lease shall be construed as giving or granting or creating an
equity in the demised Premises to Tenant. In no event shall the leasehold estate
under this Lease, or any interest therein, be assigned by voluntary or
involuntary bankruptcy proceeding without the prior written consent of Landlord.
In no event shall this Lease or any rights or privileges hereunder be an asset
of Tenant under any bankruptcy, insolvency or reorganization proceedings.
The failure to perform or honor any covenant, condition or representation
made under this Lease shall constitute a default hereunder by Tenant upon
expiration of the appropriate grace period hereinafter provided. Tenant shall
have a period of five (5) days from the date of written notice from Landlord
within which to cure any default in the payment of rental or adjustment thereto.
Tenant shall have a period of twenty (20) days from the date of written notice
from Landlord within which to commence to cure any other default under this
Lease and Tenant shall diligently prosecute the cure to completion. Upon an
uncured default of this Lease by Tenant, Landlord shall have the following
rights and remedies in addition to any other rights or remedies available to
Landlord at law or in equity:
6
(a) The rights and remedies provided for by California Civil Code
Section 1951.2, including but not limited to, recovery of the worth at the time
of award of the amount by which the unpaid rent for the balance of the term
after the time of award exceeds the amount of rental loss for the same period
that Tenant proves could be reasonably avoided, as computed pursuant to
subsection (b) of said Section 1951.2. Any proof by Tenant under subparagraph
(2) and (3) of Section 1951.2 of the California Civil Code of the amount of
rental loss that could be reasonably avoided shall be made in the following
manner: Landlord and Tenant shall each select a licensed real estate broker in
the business of renting property of the same type and use as the Premises and
in the same geographic vicinity. Such two real estate brokers shall select a
third licensed real estate broker, and the three licensed real estate brokers
so selected shall determine the amount of the rental loss that could be
reasonably avoided from the balance of the term of this Lease after the time of
award. The decision of the majority of said licensed real estate brokers shall
be final and binding upon the parties hereto.
(b) The rights and remedies provided by California Civil Code which
allows Landlord to continue the Lease in effect and to enforce all of its
rights and remedies under this Lease, including the right to recover rent as it
becomes due, for so long as Landlord does not terminate Tenant's right to
possession; acts of maintenance or preservation, efforts to relet the Premises,
or the appointment of a receiver upon Landlord's initiative to protect its
interest under this Lease shall not constitute a termination of Tenant's right
to possession.
(c) The right to terminate this Lease by giving notice to Tenant in
accordance with applicable law.
(d) The right and power, as attorney-in-fact for Tenant, to enter the
Premises and remove therefrom all persons and property, to store such property
in a public warehouse or elsewhere at the cost of and for the account of Tenant
and to sell such property and apply such proceeds therefrom pursuant to
applicable California law. Landlord, as attorney-in-fact for Tenant, may from
time to time sublet the Premises or any part thereof for such term or terms
(which may extend beyond the term of this Lease) and at such rent and such
other terms as Landlord in its sole discretion may deem advisable, with the
right to make alterations and repairs to the Premises. Upon each subletting,
(i) Tenant shall be immediately liable to pay Landlord, in addition to
indebtedness other than rent due hereunder, the cost of such subletting,
including, but not limited to, reasonable attorneys' fees, and any real estate
commissions actually paid, and the cost of such alterations and repairs
incurred by Landlord and the amount, if any, by which the rent hereunder for
the period of such subletting (to the extent such period does not exceed the
term hereof) exceeds the amount to be paid as rent for the Premises for such
period or (ii) at the option of Landlord, rents received from such subletting
shall be applied first to payment of indebtedness other than rent due hereunder
from Tenant to Landlord; second, to the payment of any costs of such subletting
and of such alterations and repairs; third to payment of rent due to unpaid
hereunder; and the residue, if any, shall be held by Landlord and applied in
payment of future rent as the same becomes due hereunder. If Tenant has been
credited with any rent to be received by such subletting under option (i) and
such rent shall not be promptly paid to Landlord by the subtenant(s), or if
such rentals received from such subletting under option (ii) during any month
be less than that to be paid during that month by Tenant hereunder, Tenant
shall pay any such deficiency to Landlord. Such deficiency shall be calculated
and paid monthly. For all purposes set forth in this subparagraph (d), Landlord
is hereby irrevocably appointed attorney-in-fact for Tenant, with power of
substitution. No taking possession of the Premises by Landlord, as
attorney-in-fact for Tenant, shall be construed as an election on its part to
terminate this Lease unless a written notice of such intention be given to
Tenant. Notwithstanding any such subletting without termination, Landlord may at
any time hereafter elect to terminate this Lease for such previous breach.
(e) The right to have a receiver appointed for Tenant upon application
by Landlord, to take possession of the Premises and to apply any rental
collected from the Premises and to exercise all other rights and remedies
granted to Landlord as attorney-in-fact for Tenant pursuant to subparagraph
(d) above.
23. ABANDONMENT Tenant shall not vacate or abandon the Premises at any time
during the term of this Lease; and if Tenant shall abandon, vacate or surrender
said Premises, or be dispossessed by the process of law, or otherwise, any
personal property belonging to Tenant and left on the Premises shall be deemed
to be abandoned, at the option of Landlord, except such property as may be
mortgaged to Landlord.
24. DESTRUCTION
(Paragraph 24 is continued below)
25 EMINENT DOMAIN If all or any part of the Premises shall be taken by any
public or quasi-public authority under the power of eminent domain or
conveyance in lieu thereof, this Lease shall terminate as to any portion of the
Premises so taken or conveyed on the date when title vests in the condemnor,
and Landlord shall be entitled to any and all payment, income, rent, award or
any interest therein whatsoever which may be paid or made in connection with
such taking or conveyance, and Tenant shall have no claim against Landlord or
otherwise for the value of any unexpired term of this Lease. Notwithstanding
the foregoing paragraph, any compensation specifically awarded Tenant for loss
of business, Tenant's personal property, moving cost or loss of goodwill, shall
be and remain the property of Tenant.
If (i) any action or proceeding is commenced for such taking of the
Premises or any part thereof, or if Landlord is advised in writing by any
entity or body having the right or power of condemnation of its intention to
condemn the Premises or any portion thereof, or (ii) any of the foregoing
events occur with respect to the taking of any space in the Complex not leased
hereby, or if any such spaces so taken or conveyed in lieu of such taking and
Landlord shall decide to discontinue the use and operation of the Complex, or
decide to demolish, alter or rebuild the Complex, then, in any of such events
Landlord shall have the right to terminate this Lease by giving Tenant written
notice thereof within sixty (60) days of the date of receipt of said written
advice, or commencement of said action or proceeding, or taking conveyance,
which termination shall take place as of the first to occur of the last day of
the calendar month next following the month in which such notice is given or
the date on which title to the Premises shall vest in the condemnor.
In the event of such a partial taking or conveyance of the Premises, if
the portion of the Premises taken or conveyed is so substantial that the Tenant
can no longer reasonably conduct its business, Tenant shall have the privilege
of terminating this Lease within sixty (60) days from the date of such taking or
conveyance, upon written notice to Landlord of its intention so to do, and upon
giving of such notice this Lease shall terminate on the last day of the calendar
month next following the month in which such notice is given, upon payment by
Tenant of the rent from the date of such taking or conveyance to the date of
termination.
If a portion of the Premises be taken by condemnation or conveyance in
lieu thereof and neither Landlord nor Tenant shall terminate this Lease as
provided herein, this Lease shall continue in full force and effect as to the
part of the Premises not so taken or conveyed, and the rent herein shall be
apportioned as of the date of such taking or conveyance so that thereafter the
rent to be paid by Tenant shall be in the ratio that the area of the portion of
the Premises not so taken or conveyed bears to the total area of the Premises
prior to such taking.
26. SALE OF CONVEYANCE BY LANDLORD In the event of a sale or conveyance of the
Complex or any interest therein, by any owner of the reversion then
constituting Landlord, the transferor shall thereby be released from any
liability thereafter arising upon any of the terms, covenants or conditions
(express or implied) herein contained in favor of Tenant, and in such event,
insofar as such transfer is concerned, Tenant agrees to look solely to the
responsibility of the successor in interest of such transferor in and to the
Complex and this Lease. This Lease shall not be affected by any such sale or
conveyance, and Tenant agrees to attorn to the successor in interest of such
transferor.
27. ATTORNMENT TO LENDER OR THIRD PARTY In the event the interest of Landlord
in the land and buildings in which the leased Premises are located (whether such
interest of Landlord is a fee title interest or a leasehold interest) is
encumbered by deed of trust, and such interest is acquired by the lender or any
third party through judicial foreclosure or by exercise of a power of sale at
private trustee's foreclosure sale, Tenant hereby agrees to attorn to the
purchaser at any such foreclosure sale and to recognize such purchaser as the
Landlord under this Lease. In the event the liens of the deed of trust securing
the loan from a Lender to Landlord is prior and paramount to the lease, this
Lease shall nonetheless continue in full force and effect for the remainder of
the unexpired term hereof, at the same rental herein reserved and upon all the
other terms, conditions and covenants herein contained.
Page 6 of 9
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28. HOLDING OVER Any holding over by Tenant after expiration or other
termination of the term of this Lease with the written consent of Landlord
delivered to Tenant shall not constitute a renewal or extension of the Lease or
give Tenant any rights in or to the leased Premises except as expressly provided
in this Lease. Any holding over after the expiration or other termination of the
term of this lease, with the consent of Landlord, shall be construed to be a
tenancy from month to month, on the same terms and conditions herein specified
insofar as applicable except that the monthly Basic Rent shall be increased to
an amount equal to one hundred twenty (120%) percent of the monthly Basic Rent
required during the last month of the Lease term.
(Paragraph 28 is continued below)
29. CERTIFICATE OF ESTOPPEL Tenant shall at any time upon not less than ten
(10) days' prior written notice from Landlord execute, acknowledge and deliver
to Landlord a statement in writing (i) certifying that this Lease is unmodified
and in full force and effect (or, if modified, stating the nature of such
modification and certifying that this Lease, as so modified, is in full force
and effect) and the date to which the rent and other charges are paid in
advance, if any, and (ii) acknowledging that there are not, to Tenant's
knowledge, any uncured defaults on the part of Landlord hereunder, or
specifying such defaults, if any, are claimed. Any such statement may be
conclusively relied upon by any prospective purchaser or encumbrancer of the
Premises. Tenant's failure to deliver such statement within such time shall be
conclusive upon Tenant that this Lease is in full force and effect, without
modification except as may be represented by Landlord; that there are no
uncured defaults in Landlord's performance, and that not more than one month's
rent has been paid in advance. If requested by Tenant, Landlord shall issue
Tenant a certificate of Estoppel stating whether or not Tenant is in compliance
with the Lease and current on rental payments.
30. CONSTRUCTION CHANGES Landlord does not guarantee the accuracy of any
drawings supplied to Tenant and verification of the accuracy of such drawings
rests with Tenant.
31. RIGHT OF LANDLORD TO PERFORM All terms, covenants and conditions of this
Lease to be performed or observed by Tenant shall be performed or observed by
Tenant at Tenant's sole cost and expense and without any reduction of rent. If
Tenant shall fail to pay any sum of money, or other rent, required to be paid
by it hereunder or shall fail to perform any other term or covenant hereunder
on its part to be performed, and such failure shall continue for five (5) days
after written notice thereof by Landlord, Landlord, without waiving or
releasing Tenant from any obligation of Tenant hereunder, may, but shall not be
obligated to, make any such payment or perform any such other term or covenant
on Tenant's part to be performed. All sums so paid by Landlord and all
necessary costs of such performance by Landlord together with interest thereon
at the rate of the prime rate of interest per annum as quoted by the Bank of
America from the date of such payment of performance by Landlord, shall be paid
(and Tenant covenants to make such payment) to Landlord on demand by Landlord,
and Landlord shall have (in addition to any other right or remedy of Landlord)
the same rights and remedies in the event of nonpayment by Tenant as in the
case of failure by Tenant in the payment of rent hereunder.
32. ATTORNEYS' FEES
(A) In the event that Landlord should bring suit for the possession of the
Premises, for the recovery of any sum due under this Lease, or because of the
breach of any provision of this Lease, or for any other relief against Tenant
hereunder, or in the event that Tenant should bring suit against Landlord for
the recovery of any sum due hereunder or because of the breach of any provision
of this Lease or for any other relief against Landlord hereunder, then all
costs and expenses, including reasonable attorneys' fees, incurred by the
prevailing party therein shall be paid by the other party, which obligation on
the part of the other party shall be deemed to have accrued on the date of the
commencement of such action and shall be enforceable whether or not the action
is prosecuted to judgement.
(B) Should Landlord be named as a defendant in any suit brought against
Tenant in connection with or arising out of Tenant's occupancy hereunder,
Tenant shall pay to Landlord its costs and expenses incurred in such suit,
including a reasonable attorney's fee, except to the extent Landlord's cost and
expense were caused by the negligence or willful misconduct of Landlord, its
agents or employees.
33. WAIVER The waiver by either party of the other party's failure to perform
or observe any term, covenant or condition herein contained to be performed or
observed by such waiving party shall not be deemed to be a waiver of such term,
covenant or condition or of any subsequent failure of the party failing to
perform or observe the same or any other such term, covenant or condition
therein contained, and no custom or practice which may develop between the
parties hereto during the term hereof shall be deemed a waiver of, or in any
way affect, the right of either party to insist upon performance and observance
by the other party in strict accordance with the terms hereof.
34. NOTICES All notices, demands, requests, advices or designations which may
be or are required to be given by either party to the other hereunder shall be
in writing. All notices, demands, requests, advices or designations by Landlord
to Tenant shall be sufficiently given, made or delivered if personally served
on Tenant by leaving the same at the Premises or if sent by United States
certified or registered mail, postage prepaid, addressed to Tenant at the
Premises. All notices, demands, requests, advices or designations by Tenant to
Landlord shall be sent by United States certified or registered mail, postage
prepaid, addressed to Landlord at its offices at 0000 Xxx Xxxxxx, Xxxx Xxxx, XX
00000. Each notice, request, demand, advice or designation referred to in this
paragraph shall be deemed received on the date of the personal service or
mailing thereof in the manner herein provided, as the case may be.
35. EXAMINATION OF LEASE Submission of this instrument for examination or
signature by Tenant does not constitute a reservation of or option for a lease,
and this instrument is not effective as a lease or otherwise until its
execution and delivery by both Landlord and Tenant. Landlord and Tenant
mutually intend that neither shall have any binding contractual obligations to
the other with respect to the matters referred to herein unless and until this
instrument has been fully executed by both parties.
36. DEFAULT BY LANDLORD Landlord shall not be in default unless Landlord fails
to perform obligations required of Landlord within a reasonable time, but in no
event earlier than thirty (30) days after written notice by Tenant to Landlord
and to the holder of any first mortgage or deed of trust covering the Premises
whose name and address shall have heretofore been furnished to Tenant in
writing, specifying wherein Landlord has failed to perform such obligations;
provided, however, that if the nature of Landlord's obligations is such that
more than thirty (30) days are required for performance, then Landlord shall not
be in default if Landlord commences performance within such thirty (30) day
period and thereafter diligently prosecutes the same to completion.
(Paragraph 36 is continued below)
37. CORPORATE AUTHORITY If Tenant is a corporation (or a partnership) each
individual executing this Lease on behalf of said corporation (or partnership)
represents and warrants that he is duly authorized to execute and deliver this
Lease on behalf of said corporation (or partnership) in accordance with the
by-laws of said corporation (or partnership in accordance with the partnership
agreement) and that this Lease is binding upon said corporation (or
partnership) in accordance with its terms. If Tenant is a corporation, Tenant
shall, within thirty (30) days of written request by Landlord after execution
of this Lease, deliver to Landlord a certified copy of the resolution of the
Board of Directors of said corporation authorizing or ratifying the execution
of this Lease.
38.
39. LIMITATION OF LIABILITY In consideration of the benefits accruing hereunder,
Tenant and all successors and assigns covenant and agree that, in the event of
any actual or alleged failure, breach or default hereunder by Landlord:
(i) the sole and exclusive remedy shall be against Landlord and
Landlord's assets;
(ii) no partner of Landlord shall be sued or named as a party in any suit
or action (except as may be necessary to secure jurisdiction of the
partnership)
(iii) no service of process shall be made against any partner of Landlord
(except as may be necessary to secure jurisdiction of the
partnership)
(iv) no partner of Landlord shall be required to answer or otherwise
plead to any service of process;
(v) no judgment shall be taken against any partner of Landlord;
(vi) any judgment taken against any partner of Landlord may be vacated
and set aside at any time without hearing;
(vii) no writ of execution will ever be levied against the assets of any
partner of Landlord;
(viii) these covenants and agreements are enforceable both by Landlord and
also by any partner of Landlord.
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(ix) The term, "Landlord", as used in this section, shall mean only the
owner or owners from time to time of the fee title or the tenant's interest
under a ground lease of the land described in Exhibit "B", and in the event of
any transfer of such title or interest, Landlord herein named (and in case of
any subsequent transfers the then grantor) shall be relieved from and after the
date of such transfer of all liability as respects Landlord's obligations
thereafter to be performed, provided that any funds in the hands of Landlord or
the then grantor at the time of such transfer, in which Tenant has an interest,
shall be delivered to the grantee. Similarly, the obligations contained in this
Lease to be performed by Landlord shall be binding on Landlord's successors and
assigns only during their respective periods of ownership. Tenant agrees that
each of the foregoing covenants and agreements shall be applicable to any
covenant or agreement either expressly contained in this Lease or imposed by
statute or at common law.
40. BROKERS Tenant warrants that it had dealing with only the following
real estate brokers or agents in connection with the negotiation of this Lease:
The Staubach Company, and that it knows of no other real estate broker or agent
who is entitled to a commission in connection with this Lease.
41. SIGNS No sign, placard, picture, advertisement, name or notice shall be
inscribed, displayed, printed or affixed on or to any part of the outside of the
Premises or any exterior windows of the Premises without the written consent of
Landlord first had and obtained and Landlord shall have the right to remove any
such sign, placard, picture, advertisement, name or notice without notice to and
at the expense of Tenant. If Tenant is allowed to print or affix or in any way
place a sign in, on or about the Premises, then upon expiration or other sooner
termination of this Lease, Tenant at Tenant's sole cost and expense shall both
remove such sign and repair all damage in such a manner as to restore all
aspects of the appearance of the Premises to the condition prior to the
placement of said sign.
All approved signs or lettering on outside doors shall be printed,
painted, affixed or inscribed at the expense of Tenant by a person approved of
by Landlord.
Tenant shall not place anything or allow anything to be placed near the
glass of any window, door partition or wall which may appear unsightly from
outside the Premises.
(Paragraph 41 is continued below)
42. FINANCIAL STATEMENTS In the event Tenant tenders to Landlord any
information on the financial stability, creditworthiness or ability of the
Tenant to pay the rent due and owing under the Lease, then Landlord shall be
entitled to rely upon the information provided in determining whether or not to
enter into this Lease Agreement with Tenant and Tenant hereby represents and
warrants to Landlord the following: (i) That all documents provided by Tenant to
Landlord are true and correct copies of the original; and (ii) Tenant has not
withheld any information from Landlord which is material to Tenant's
creditworthiness, financial condition or ability to pay the rent; and (iii) all
information supplied by Tenant to Landlord is true, correct and accurate in
every material aspect and (iv) no part of the information supplied by Tenant to
Landlord contains misleading or fraudulent statements as to any material matter.
A default under this paragraph shall be a non-curable default on behalf
of Tenant and Landlord shall be entitled to pursue any right or remedy available
to Landlord under the terms of this Lease or available to Landlord under the
laws of the State of California.
43. HAZARDOUS MATERIALS
A. As used herein, the term "Hazardous Material" shall mean any
substance or material which has been determined by any state, federal or local
governmental authority to be capable of posing a risk of injury to health,
safety or property including all of those materials and substances designated or
defined as "hazardous" or "toxic" by (i) the Environmental Protection Agency,
the California Water Quality Control Board, the Department of Labor, the
California Department of Industrial Relations, the Department of Transportation,
the Department of Agriculture, the Consumer Product Safety Commission, the
Department of Health and Human Services, the Food and Drug Agency or any other
governmental agency now or hereafter authorized to regulate materials and
substances in the environment, or by (ii) the Comprehensive Environmental
Response, Compensation and Liability Act of 1980, 42 U.S.C. 9601 et seq., as
amended; the Hazardous Materials Transportation Act, 49 U.S.C. 1801, et seq., as
amended; the Resource Conservation and Recovery Act, 42 U.S.C. 6901, et seq., as
amended; the Hazardous Waste Control Law, California Health & Safety Code 25100
et seq., as amended; Sections 66680 through 66685 of Title 22 of the California
Administration Code, Division 4, Chapter 30, as amended; and in the regulations
adopted and publications promulgated pursuant to said laws.
B. Tenant shall not cause or permit any Hazardous Material to be
improperly or illegally used, stored, discharged, released or disposed of in,
from, under or about the Premises or the Complex, or any other land or
improvements in the vicinity of the Premises or the Complex. Without limiting
the generality of the foregoing, Tenant, at its sole cost, shall comply with all
laws relating to Hazardous Materials. If the presence of Hazardous Materials on
the Premises or the Complex caused or permitted by Tenant results in
contamination of the Premises or the Complex or any soil in or about the
Premises or the Complex, Tenant, at its expense shall promptly take all actions
necessary to return the Premises or the Complex to the condition existing prior
to the appearance of such Hazardous Material. The termination of this Lease
shall not terminate or reduce the liability or obligations of Tenant under this
Section, or as may be required by law, to clean up, monitor or remove any
Hazardous Materials from the Premises or the Complex.
Tenant shall defend, hold harmless and indemnify Landlord and its agents
and employees with respect to all claims, damages and liabilities arising out of
or in connection with any Hazardous Material used, stored, discharged, released
or disposed of in, from, under or about the Premises or the Complex, where said
Hazardous Material is or was attributable to the activities of Tenant, its
agents or contractors during the Lease term and whether or not Tenant had
knowledge of such Hazardous Material, including, without limitation, any cost of
monitoring or removal, any reduction in the fair market value or fair rental
value of the Premises or the Complex and any loss, claim or demand by any third
person or entity relating to bodily injury or damage to real or personal
property.
Tenant shall not suffer any lien to be recorded against the Premises or
the Complex as a consequence of a Hazardous Material, including any so called
state, federal or local "super fund" lien related to the "clean up" of a
Hazardous Material in or about the Premises, where said Hazardous Material is or
was attributable to the activities of the Tenant.
C. In the event Hazardous Materials are discovered in or about the
Premises or the Complex, and Landlord has substantial reason to believe that
Tenant was responsible for the presence of the Hazardous Material, then Landlord
shall have the right to appoint a consultant, at Tenant's expense, to conduct an
investigation to determine whether Hazardous Materials are located in or about
the Premises or the Complex and to determine the corrective measures, if any,
required to remove such Hazardous Materials. Tenant, at its expense, shall
comply with all recommendations of the consultant, as required by law. To the
extent it is determined that Tenant was not responsible for the presence of the
Hazardous Materials, then Landlord shall reimburse Tenant for any costs incurred
by Landlord and paid by Tenant under the terms of this paragraph 45.C.
Tenant shall immediately notify Landlord of any inquiry, test,
investigation or enforcement proceeding by or against Tenant or the Premises or
the Complex concerning a Hazardous Material. Tenant acknowledges that Landlord,
as the owner of the property, at its election, shall have the sole right, at
Tenant's expense, to negotiate, defend, approve and appeal any action taken or
order issued with regard to a Hazardous Material by an applicable governmental
authority. Provided Tenant is not in default under the terms of this Lease,
Tenant shall likewise have the right to participate in any negotiations,
approvals or appeals of any actions taken or orders issued with regard to the
Hazardous Material and Landlord shall not have the right to bind Tenant in said
actions or orders.
Landlord shall defend, hold harmless and indemnify Tenant and its agents
and employees with respect to all claims, damages and liabilities arising out of
or in connection with any Hazardous Material used, stored, discharged, released
or disposed of in, from, under or about the Premises or the Complex, where said
Hazardous Material is or was not attributable to the activities of Tenant, its
agents or contractors during the Lease term and whether or not Tenant had
knowledge of such Hazardous Material, including, without limitation, any cost of
monitoring or removal, any reduction in the fair market value or fair rental
value of the Premises or the Complex and any loss, claim or demand by any third
person or entity relating to bodily injury or damage to real or personal
property.
D. It shall not be unreasonable for Landlord to withhold its consent to
any proposed assignment or subletting if (i) the proposed assignee's or
subtenant's anticipated use of the Premises involves the storage, use or
disposal of Hazardous Material; (ii) if the proposed assignee or subtenant has
been required by any prior landlord, lender or governmental authority to "clean
up" Hazardous Material; (iii) if the proposed assignee or subtenant is subject
to investigation or enforcement order or proceeding by any governmental
authority in connection with the use, disposal or storage of a Hazardous
Material.
E. Tenant shall surrender the Premises to Landlord, upon the expiration
or earlier termination of the Lease, free of Hazardous Materials which are or
were attributable to Tenant. If Tenant fails to so surrender the Premises,
Tenant shall indemnify and hold Landlord harmless from all damages resulting
from Tenant's failure to surrender the Premises as required by this paragraph,
including, without limitation, any claims or damages in connection with the
condition of the Premises including, without limitation, damages occasioned by
the inability to relet the Premises or a reduction in the fair market and/or
rental value of the Premises or the Complex by reason of the existence of any
Hazardous Materials, which are or were attributable to the activities of Tenant,
in or around the Premises or the Complex.
Notwithstanding any provision to the contrary in this Lease, if any
action is required to be taken by a governmental authority to clean-up, monitor
or remove any Hazardous Materials, which are or were attributable to the
activities of Tenant, from the Premises or the Complex and such action is not
completed prior to the expiration or earlier termination of the Lease, then at
Landlord's election (i) this Lease shall be deemed renewed for a term commencing
on the expiration date of this Lease and ending on the date the clean-up,
monitoring or removal procedure is completed (provided, however, that the total
term of this Lease shall not be longer than 34 years and 11 months); or (ii)
Tenant shall be deemed to have impermissibly held over and Landlord shall be
entitled to all damages directly or indirectly incurred in connection with such
holding over, including without limitation damages occasioned by the inability
to relet the Premises or a reduction in the fair market and/or fair rental value
of the Premises or the Complex by reason of the existence of the Hazardous
Material.
F. Upon the Lease Commencement Date, Tenant shall provide to Landlord a
complete list of all chemicals, toxic waste or Hazardous Materials employed by
Tenant within the Premises. Throughout the term of this Lease, Tenant shall
continue to update this list of chemicals, contaminants and Hazardous Materials.
Landlord hereby warrants Tenant that there is no asbestos in the buildings.
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44. MISCELLANEOUS AND GENERAL PROVISIONS
a. Tenants shall not, without the written consent of Landlord, use the name
of the building for any purpose other than as the address of the business
conducted by Tenant in the Premises.
b. This lease shall in all respects be governed by and construed in
accordance withe the laws of the State of California. If any provision of
this Lease shall be invalid, unenforceable or ineffective for any reason
whatsoever, all other provisions hereof shall be and remain in full force
and effect.
c. the term "Premises" includes the space leased hereby and any
improvements now or hereafter installed therein or attached thereto. The
term "Landlord" or any pronoun used in place thereof includes the plural as
well as the singular and the successors and assigns of Landlord. The term
"Tenant" or any pronoun used in place thereof includes the plural as well as
the singular and individuals, firms, associations, partnerships and
corporations, and their and each of their respective heirs, executors,
administrators, successors and permitted assigns, according to the context
hereof, and the provisions of this Lease shall inure to the benefit of and
bind such heirs, executors, administrators, successors and permitted
assigns.
The term "person" includes the plural as well as the singular and
individuals, firms, associations, partnerships and corporations. Words used
in any gender include other genders. If there be more than one Tenant the
obligations of Tenant hereunder are joint and several. The paragraph
headings of this Lease are for convenience of reference only and shall have
no effect upon the construction or interpretation of any provision hereof.
d. Time is of the essence of this Lease and of each and all of its
provisions.
e. At the expiration or earlier termination of this Lease, Tenant shall
execute, acknowledge and deliver to Landlord, within ten (10) days after
written demand from Landlord to Tenant, any quitclaim deed or other document
required by any reputable title company, licensed to operate in the State of
California, to remove the cloud or encumbrance created by this Lease from
the real property of which Tenant's Premises are a part.
f. This instrument along with any exhibits and attachments hereto
constitutes the entire agreement between Landlord and Tenant relative to the
Premises and this agreement and the exhibits and attachments may be altered,
amended or revoked only by an instrument in writing signed by both Landlord
and Tenant. Landlord and Tenant hereby agree that all prior or
contemporaneous oral agreements between and among themselves and their
agents or representatives relative to the leasing of the Premises are merged
in or revoked by this agreement.
g. Neither Landlord nor Tenant shall record this Lease or a short form
memorandum hereof without the consent of the other.
h. Tenant further agrees to execute any amendments required by a lender to
enable Landlord to obtain financing, so long as Tenant's rights hereunder
are not substantially affected.
i. Paragraph(s) 45 through 54 are/is added hereto and are/is included as a
part of this Lease.
j. Clauses, plats and riders, if any, signed by Landlord and Tenant and
endorsed on or affixed to this Lease are a part hereof.
k. Tenant covenants and agrees that no diminution or shutting off of light,
air or view by any structure which may be hereafter erected (whether or not
by Landlord) shall in any way affect this Lease, entitle Tenant to any
reduction of rent hereunder or result in any liability of Landlord to
Tenant.
Paragraph 44 is continued below.
IN WITNESS WHEREOF, Landlord and Tenant have executed and delivered this Lease
as of the day and year first above written.
LANDLORD: TENANT:
CHARLESTON PROPERTIES, a INTUIT, INC., a
California General Partnership Delaware Corporation
By /s/ Xxxx X. Xxxxx By /s/ X.X. Xxxx
------------------------------- -----------------------------------
Title Partner Title VP/CFO
---------------------------- --------------------------------
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2.B.(continued). TENANT'S COMPENSATION IN THE EVENT OF A DELAY
(1) In the event Landlord is unable to make the Premises available
to Tenant 90 days prior to the Lease Commencement Date as set
forth in Paragraph 2A above to permit Tenant to commence
construction of desired changes within the Premises, Tenant
shall receive any and all monies received by Landlord as
penalties (hereinafter referred to as Sun Excess Rent) from Sun
Microsystems (the prior Tenant) in excess of the Basic Rent
amount that Sun Microsystems would have been obligated to pay
Charleston Properties during any holdover period. For example,
if Sun Microsystems paid Landlord 150% of Basic Rent during a
holdover period, Landlord would receive 100% of the Basic Rent
and Tenant would receive the 50% Sun Excess Rent.
Paragraph 2.C. EARLY OCCUPANCY FOR CONSTRUCTION PURPOSES
The Lease Commencement Date for the Premises leased hereunder
shall remain as stated in paragraph 2A provided Landlord has
granted Tenant access to the Premises ninety days prior to the
commencement of the Lease for the purpose of Tenant's
construction of Tenant Improvements. At such time as Landlord has
made the Premises available for the commencement of construction,
Tenant or Tenant's contractor, shall be permitted to commence
construction. During this 90 day period, Tenant shall hold
Landlord, and WSJ Properties (Landlord's Property Management
Company retained to manage the Complex) harmless from any loss or
damage caused by Tenant's or Tenant's contractor's construction
activities during this period. During this 90 day construction
period, Tenant shall not be obligated to pay Basic or Additional
Rent on the Premises so under construction unless Tenant elects
to occupy the Premises during this 90 day period with Tenant's
operating personnel. In the event Tenant does occupy the Premises
with operating personnel, Tenant shall occupy the Premises under
all the terms and conditions of the Lease and Tenant shall pay
Landlord Basic and Additional Rent beginning with said Date of
Occupancy by Tenant's operating personnel up and until the
specified Commencement Date of the term of the Lease in the
following daily amounts:
Daily Basic Rent $2,132.00
Daily Additional Rent $ 317.00 (estimated)
The Commencement Date and Termination Date of Lease for the
Premises shall not be affected by this early occupancy and shall
remain as stated.
Paragraph 4A (1) (continued). BASIC RENT
The table below represents a specific Basic Rent expressed in
dollars per square foot per month for a specific time period. The
Basic Rent due and payable is calculated by multiplying the gross
square footage leased times the Basic Rent per square foot per
month as indicated.
The Basic Rent rates are as follows:
1/1/1997 - 12/31/1999 $1.50 per square foot per month
1/1/2000 - 12/31/2003 $1.60 per square foot per month
1/1/2004 - 12/31/2007 $1.70 per square foot per month
1/1/2008 - 12/31/2008 $1.75 per square foot per month
or the Fair Market Value,
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whichever is greater
1/1/2009 and thereafter The rate per square foot per month
shall be increased by $.05/per
square foot per month as of each
January 1 during the term over the
prior year or shall be the Fair
Market Value, whichever is greater.
(See paragraph 46 for Fair Market Value definition and
determination and paragraph 50 for Basic Rent Abatement for
Tenant Improvements).
Paragraph 4A (2). PAYMENT UPON EXECUTION OF LEASE AND TIMELY PAYMENT OF
MONTHLY BASIC AND ADDITIONAL RENT
Upon execution of this Lease, Tenant shall pay Landlord, $63,948
(42,632 x $1.50) representing the first month's Basic Rent
payment. During the term of the Lease, Tenant's monthly Basic and
Additional Rent shall be due and payable on or before the first
day of each month of the Lease term.
Paragraph 4D (continued). ADDITIONAL RENT
For purposes of calculating Tenant's proportionate share of
Additional Rent Expenses for the Complex it is hereby mutually
agreed the Complex totals 85,264 rentable square feet (Buildings
1, 2).
Landlord's monthly estimate for Additional Rent items described
in paragraph 4D (excluding taxes) for calendar year 1996 is
$6,600 per month (42,632 x $0.155). The following represents a
line item breakdown of Landlord's estimate of monthly expenses
(expressed in dollars per square foot per month):
Exterior maintenance and landscape $0.045
Building maintenance and HVAC 0.065
Insurance (including earthquake insurance) 0.025
Management 0.02
Utilities (Tenant pays directly) -0-
Janitorial (Tenant pays directly) -0-
------
Total $0.155
Landscape water for the Complex shall be paid directly by Tenant
if Tenant occupies the entire Complex.
Taxes shall be billed separately and prorated for periods of
occupancy and shall be due December 1st and April 1st of each
calendar year. Landlord's estimate for the 1995-1996 Tax year
(July 1, 1995 - June 30, 1996) for the Complex is as follows:
Parcel #000-00-000 (Buildings 1,2)
$83,000 or $41,500 per Building per year
Tenant shall have the right, during normal business hours and at
Tenant's own expense, to audit Landlord's records concerning
Additional Rent items. In the event a discrepancy of greater than
3% of Tenant's correct share of costs is discovered, Landlord
shall pay the cost of Tenant's out of pocket costs to third
parties and shall credit or refund to Tenant the amount of the
discrepancy. If the audit indicates Tenant owes Landlord an
additional
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amount, Tenant shall pay the additional amount promptly.
Paragraph 4F (continued). SECURITY DEPOSIT
Notwithstanding anything in the Lease to the contrary, Landlord agrees
to accept, and Tenant shall have the right, at Tenant's sole discretion, to pay
for the Security Deposit by tendering to Landlord, on execution of this Lease,
an irrevocable standby Letter of Credit. The form of the irrevocable standby
Letter of Credit must be acceptable to Landlord, and in the event the term of
said Letter of Credit is for one year, then Tenant agrees to renew said Letter
of Credit 30 days prior to expiration of the Letter of Credit. Tenant's failure
to renew the Letter of Credit for an additional year, 30 days prior to its
expiration date, shall entitle Landlord to draw against the Letter of Credit the
amount of the Security Deposit.
Paragraph 7 (continued)
Further, Landlord hereby represents and covenants that with respect to
direct maintenance of the Premises only WSJ's overhead shall be included in
these costs and no profit component is or will be built into the cost of the
services or materials provided by any of Landlord's subsidiaries or affiliates
who are under contract to provide services and materials to the Premises
(including without limitation WSJ Properties). Excluded as reimbursable costs
from Tenant to Landlord are the follows:
1. any fines, costs, penalties or interest resulting from the negligence
or willful misconduct of the Landlord or its agents, contractors, or employees;
2. any costs of any services sold or provided to tenants or other
occupants for which Landlord or Managing Agent is entitled to be reimbursed by
such tenants or other occupants.
3. acquisition costs for sculptures, paintings, or other objects of art;
4 costs for which Landlord has been compensated by a management fee; for
example, accounting costs necessary to operate the Complex and report its
financial status to the Landlord.
Paragraph 9 (continued). ALTERATIONS AND ADDITIONS
Landlord shall lease the premises to Tenant in an "as-is" condition, and
other than Landlord's repair obligation per paragraph 49 and Landlord's code
compliance obligation per paragraph 48, all cost of construction including
demolition, architectural, drawings, permitting fees, etc., shall be paid by
Tenant with landlord's contributions limited to those described in paragraph 50.
Notwithstanding anything herein to the contrary, upon Landlord's
approval of Tenant's initial Tenant Improvements to be installed and paid for by
Tenant (except as provided for in paragraph 50), Tenant shall not be required to
restore the initial build-out to the configuration and condition in existence as
of the date Landlord first delivers possession of the Premises to Tenant. Should
Tenant elect to install a ceiling and lighting system that is other than a
standard 2 x 2 or 2 x 4 T-Bar grid and 2 x 2 or 2 x 4 drop-in parabolic lens
with fluorescent bulb fixtures Landlord may, in its sole discretion determined
at the time Landlord approves the plans, require restoration to the existing
ceiling system and similar light fixtures. If Tenant makes no changes to the
Premises at the outset and uses the Premises in an as-is condition, and later
makes substantial renovations or improvements, then, at Landlord's option, any
future restoration required shall be to the original condition and configuration
as first delivered to Tenant. At the time any subsequent alterations are
requested
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Landlord shall notify Tenant of any restoration requirements per this paragraph
9. Landlord shall not have the right to approve or disapprove or to require
restoration in the event any changes subsequent to the initial build-out of any
building meet the following criteria:
1) The total cost of construction is less than $15,000.
2) The changes do not in anyway affect exiting or fire corridors,
restrooms, building entrances, lobbies, building systems or
structure. Landlord's granting approval to Tenant to make changes
herein described without the obligation to restore is in reliance
upon Tenant's making commercially reasonably alterations and
Tenant agrees not to use this subparagraph to circumvent
Landlord's right to require Tenant to restore the premises under
paragraph 9.
Tenant shall have the right to employ a general contractor of its
choosing for any modifications desired to be made to the Premises leased
hereunder. However, Tenant hereby agrees in the event Tenant elects to make
subsequent modifications to the Premises to consider the WSJ Properties
Construction Division a preferred vendor and Tenant hereby acknowledges that it
is Landlord's strong preference to have WSJ Properties Construction Division
perform any modifications to the Premises. Although Tenant shall consider WSJ
Properties Construction Division a preferred vendor, Tenant shall be under no
obligation to select WSJ Properties and Tenant further acknowledges WSJ is a
completely separate entity from landlord and any disputes relating to
construction performed by WSJ for Tenant shall be resolved directly between WSJ
and Tenant.
Paragraph 11 (continued). UTILITIES
Tenant shall pay promptly, as the same become due, all charges for
water, gas, electricity, telephone, telex and other electronic communications
service, sewer service, waste pick-up and any other utilities, materials or
services furnished directly to or used by Tenant on or about the Premises during
the term of this Lease, including, without limitation, any temporary or
permanent utility' surcharge or other exactions whether or not hereinafter
imposed.
Landlord shall not be liable for and Tenant shall not be entitled to
any abatement or reduction of rent by reason of any interruption or failure of
utility services to the Premises when such interruption or failure is caused by
accident, breakage, repair, strikes, lockouts, or other labor disturbances or
labor disputes of any nature, or by any other cause, similar or dissimilar,
beyond the reasonable control of Landlord.
Paragraph 19 (continued). ASSIGNMENT AND SUBLETTING
Notwithstanding the foregoing, without the prior consent of Landlord,
Tenant shall have the right (i) to assign this Lease to an affiliate or
subsidiary of Tenant or (ii) to merge with another corporation or entity or
(iii) to enter into an acquisition of another corporation or be acquired by
another corporation, in each case provided that Landlord is promptly provided
with notice thereof and Tenant remains fully liable for the full performance of
Tenant's obligation under the Lease; provided, however, that in the event Tenant
merges into another entity or is wholly acquired by another entity (in each
case, the "Successor Entity"), and provided Tenant ceases to exist and the
Successor Entity is at least as well capitalized as Tenant and has at least the
same overall financial wherewithal as Tenant had prior to such merger or
acquisition, it shall be the Successor Entity (not Tenant) who shall be fully
liable hereunder as the successor tenant.
Paragraph 24 (continued). DESTRUCTION
In the event the Premises are damaged or destroyed in whole or
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in part from any cause, Landlord shall, within fifteen (15) days of the event of
such damage or destruction, notify Tenant in writing as to the approximate
length of time necessary for Landlord to reconstruct the Premises to
substantially its former condition. If such estimate exceeds one hundred eighty
(180) days from the date of damage or destruction, Tenant shall have the option,
within ten (10) days of receipt of Landlord's notice, to terminate this Lease.
If Tenant does not exercise its option to terminate, or if Tenant is not
entitled to terminate under this paragraph, Landlord shall promptly, at its sole
expense, rebuild or restore the Premises to substantially the condition existing
prior to the date of damage or destruction. Tenant shall be entitled to a
reduction in rent while such repair is being made in the proportion that the
area of the Premises rendered untenantable by such damage bears to the total
area of the Premises. If Landlord does not complete the rebuilding or
restoration within one hundred eighty (180) days following the date of
destruction (such period of time to be extended for delays caused by the fault
or neglect of Tenant or because of Acts of God, acts of public agencies, labor
disputes, strikes, fires, freight embargoes, rainy or stormy weather, inability
to obtain materials, supplies or fuels), then Tenant shall have the right to
terminate this Lease by giving fifteen (15) days prior written notice to
Landlord. Notwithstanding anything herein to the contrary, Landlord's obligation
to rebuild or restore shall be limited to the building and interior improvements
constructed by Landlord as they existed as of the commencement date of the Lease
and the initial Tenant Improvements installed at the commencement of the term,
but shall not include restoration of Tenant's trade fixtures, equipment,
merchandise or any subsequent improvements, alterations or additions made by
Tenant to the Premises, which Tenant shall forthwith replace or fully repair at
Tenant's sole cost and expense provided this Lease is not canceled according to
the provisions above. Unless this Lease is terminated pursuant to the foregoing
provisions, this Lease shall remain in full force and effect. Tenant hereby
expressly waives the provisions of Section 1932, Subdivision 2, and Section
1933, Subdivision 4 of the California Civil Code.
Notwithstanding anything to the contrary set forth above, in the event
the damage or destruction of the Premises (i) occurs during the last two years
of the term (unless any applicable extension option has been exercised) and (ii)
has rendered at least 33% of the Premises unusable by Tenant, Landlord shall
have the option during the aforementioned fifteen (15) day period to elect not
to rebuild the Premises by so notifying Tenant or to elect to terminate this
Lease by so notifying Tenant.
Paragraph 28 (continued). HOLDING OVER
Tenant shall have the right, upon one year prior written notice to
Landlord, to extend the lease termination date for this Lease up to six months
beyond the lease expiration date provided and only if Tenant has also agreed to
similarly and in a coterminus manner extend the lease termination date for all
the leases for Buildings leased by Tenant within the Complex. Tenant may not
exercise this right to extend the lease termination date on less than all the
Buildings leased within the Complex. The Basic Rent during this extended period
shall be 125% of the monthly Basic Rent then in effect for the month immediately
prior to the lease expiration.
Paragraph 36 (continued). DEFAULT BY LANDLORD
Notwithstanding anything to the contrary set forth above in this
paragraph 36, Landlord and Tenant agree that under certain "emergency
circumstances", Tenant shall have the right to perform obligations otherwise
required of Landlord without the necessity of providing Landlord (and any
mortgagee) with such thirty (30) day notice and opportunity to cure. Under such
"emergency circumstances", Tenant shall use its good faith reasonable
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judgement in determining a shorter notice period for response by Landlord or
determining that the matter at hand must be resolved immediately such that
notice can only be given after the fact. For the purposes hereof, "emergency
circumstances" shall mean (i) any hazardous situation that poses a threat of
damage, destruction or injury to any person or property of a material nature or
otherwise threatens the safety of employees and/or visitors to the Premises or
(ii) any other circumstance that involves a substantial interference with the
operations of Tenant's business enterprise in the Premises, including without
limitation the launching of new software products or revisions thereto
(especially to correct existing problems which must be addressed immediately)
to enable customers to perform needed financial and tax-related functions, which
is of special concern during the months preceding April 15th of each calendar
year.
Paragraph 41 (continued). SIGNS
Subject to the approval of the City of Mountain View and Landlord, whose
consent shall not be unreasonably delayed, Tenant, at Tenant's sole cost and
expense, shall have the right to install (i) a monument sign located at the
main driveway entrance to the Complex; (ii) suitable building signage adjacent
to the Premises and (iii) suitable directional signage in the common areas and
within the Premises leased hereunder. Landlord shall promptly remove all prior
tenant signage from the Premises and any common areas adjacent thereto and said
removal shall not be at Tenant's expense.
Paragraph 44 (continued). MISCELLANEOUS AND GENERAL PROVISIONS
Landlord covenants with Tenant that upon Tenant paying the rent and all
other charges required under this Lease and performing all of Tenant's covenants
and agreements contained herein, Tenant shall peacefully have, hold and enjoy
the Premises, subject to all of the terms and conditions of this Lease.
45. OPTIONS TO EXTEND
Provided Tenant is not in default under any of the terms, covenants or
conditions of this Lease and subject to the terms and conditions set forth
hereafter, Tenant is hereby granted the option to extend the term of Lease for
the Premises leased hereunder for two consecutive five year periods:
a) Tenant's option to extend this Lease is contingent upon Tenant also
extending the term of lease for all the Buildings then leased within the
Complex. For example, should Tenant desire to extend this lease in the Complex,
Tenant must exercise its option to extend the Lease for each of Buildings 1 & 2,
and may not, for example, elect to extend the lease on building 2 but not 1. It
is hereby acknowledged that the lease expiration dates of buildings leased
within the Complex might not terminate on the same date. It is further agreed
that in the event Tenant does not lease all the buildings within the Complex,
nevertheless, Tenant shall have the option to extend the lease on the buildings
so leased per the terms of this paragraph 45.
b) Tenant shall notify Landlord in writing of Tenant's exercise of its
option to extend the Lease for each Building leased within the Complex no less
than 12 months prior to the earliest lease expiration date of any Building
leased within the Complex.
c) The Lease for each building within The Complex shall be extended for
a period of five years commencing upon the day after the Lease termination date
for such Building within the Complex and shall terminate five years later.
d) The monthly Basic Rent during the extended term shall be
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as defined in paragraph 4A.
e) The then current payment for Additional Rent described in paragraph
4 D of the Lease shall continue to be adjusted according to paragraph 4D of the
Lease.
f) This option to extend can be exercised solely by Tenant for its sole
use of the Premises (including any permitted subtenants and affiliates which in
total do not exceed 25% of a Complex) and may not be transferred or assigned to
any sublessee or other party, nor may this option be exercised by Tenant if more
than 25% of a Complex is then subleased to a party other than Tenant or Tenant's
affiliates.
46. FAIR MARKET RATE
The fair market rate shall be defined as the prevailing market rate with
interim adjustments (if any) then charged for comparable space of comparable
quality in the immediate Mountain View/Shoreline market area. For the period
January 1, 2008 and annually thereafter this Lease calls for a determination of
the fair market rate. Landlord shall promptly notify Tenant of such rate as
reasonably determined by Landlord one hundred and eighty days prior to the
beginning of each successive calendar year, beginning with calendar year 2008.
Landlord and Tenant shall attempt to agree in writing on such fair market rate.
If Landlord and Tenant do not agree on the fair market rate for the Premises by
that date which is one hundred fifty (150) days prior to the beginning of a
calendar year, then Landlord and Tenant shall each select a licensed real estate
broker (the "Brokers") with a minimum five (5) years commercial leasing
experience in the Mountain View area to determine the fair market rate for the
Premises. If the Brokers are unable to agree as to the fair market rate by that
date which is one hundred twenty (120) days prior to the end of the calendar
year in question, then the Brokers shall mutually select a third licensed real
estate broker (the "Arbitrator") who has the same minimum qualifications as the
Brokers and who has not previously represented either party. Each Broker shall
submit to the Arbitrator his or her determination of the fair market rate for
the Premises, and the support therefor, and the Arbitrator shall decide which
Broker has most accurately determined the fair market rate, which decision shall
be final and binding on both Landlord and Tenant. Landlord and Tenant shall each
pay their own Broker's fees and costs and shall each pay one-half (1/2) of the
Arbitrator's fees and costs.
47. Paragraph 47 is hereby intentionally omitted.
48. CODE COMPLIANCE
With respect to all applicable local, state and federal regulations and
codes including without limitation the Americans with Disabilities Act and Title
XXIV of the California Energy Code, as of the commencement of lease term for the
Premises, Landlord at Landlord's sole cost and expense shall make all
modifications to the exterior of the Premises such as parking lots, stairways,
walkways, etc. to bring the exterior of the Premises leased hereunder into
compliance. Commencing as of the date Landlord offers possession of the Premises
to Tenant, Landlord shall at Landlord's sole cost and expense make any
governmentally required modifications to the restrooms to bring them into
compliance with all applicable codes. Landlord's compliance obligations with
respect to the restrooms set forth in this paragraph 48 shall also include
replacing fixtures and finishes as necessary. Landlord's sole obligation with
respect to compliance is therefore limited to any governmentally required
modifications to the Bathrooms within the Premises and any governmentally
required modifications to the exterior. All other costs and obligations with
respect to compliance shall rest solely with Tenant. All such interior
modifications shall be completed diligently prior to the Lease
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Commencement Date referenced in Paragraph 2A above. All exterior modifications
to be made by Landlord shall be diligently constructed to completion.
49. ACCEPTANCE AND SURRENDER OF PREMISES AND COST OF MAJOR REPAIRS
Notwithstanding anything in paragraphs 8 & 9 to the contrary, commencing
as of the date Landlord offers possession of the Premises to Tenant, an
independent inspection team shall be hired to make a thorough inspection of the
Premises. Tenant shall hire the inspectors subject to Landlord's reasonable
approval of the cost of the inspection and the inspector. Landlord shall pay for
the inspection. Said inspection shall be limited to and shall only include
roofs, elevators, HVAC systems, electrical systems (including lights and bulbs),
plumbing systems, locking mechanisms, exterior and roll-up doors, and glazing.
Tenant shall provide Landlord a copy of these reports. Landlord shall deliver
the buildings and all operating systems covered in the report to Tenant as of
the Lease Commencement Date referenced in Paragraph 2A above in a well
maintained condition and in good repair. Landlord shall be under no specific
obligation to upgrade any particular system and Tenant acknowledges that the
systems have been previously used. Landlord's repair of the referenced items
shall not affect the commencement date of the Lease so long as Tenant is able to
occupy and operate in the Premises without interference. Notwithstanding
anything in paragraph 7 to the contrary, Capital Expenses made by Landlord shall
not be included in the annual expenses of operation, management and maintenance
of the Building or Complex. For example, the replacement of an entire roof shall
not be deemed an expense of operation whereas the ongoing repair and maintenance
of a roof is deemed an operating expense. In addition to provisions of paragraph
4D and 7, if there is a single incident that requires a maintenance expense up
to $15,000, said expense shall be reimbursable by Tenant and shall be included
in the annual operating expenses. For single large maintenance expenses between
$15,000 and $20,000, such expense will be reimbursable by Tenant (without
interest) over three years with an equal amount charged per year. If a single
large maintenance expense is greater than $20,000, it shall be reimbursable by
Tenant over a 5 year period, in equal amounts reimbursable per year.
Landlord shall lease the Premises to Tenant in an "as-is," condition,
and other than Landlord's repair obligation per paragraph 49 and Landlord's code
compliance obligation per paragraph 48, all cost of construction including
demolition, architectural, drawings, permitting fees, etc., shall be paid by
Tenant with Landlord's contributions limited to those described in paragraph
50.
50. LANDLORD'S CONTRIBUTION TOWARDS TENANT IMPROVEMENTS
Landlord shall contribute $15.00 per rentable square foot towards Tenant
requested improvements to the Premises. Landlord's total tenant improvement
obligation is $15 x 42,632 s.f. = $639,480. Tenant shall be granted these tenant
improvement dollars in the form of $383,688 Basic Rent abatement and $255,792
cash allowance towards improvements. If the initial tenant improvement expense
is less than the amounts specified herein, Landlord and Tenant shall split
equally the savings after Landlord has deducted the cost of Landlord's
expenditures per paragraph 48 from the contributions towards Tenant's
Improvements. Landlord's cash contribution shall only be made available in the
event tenant improvements exceed the amount granted in the form of rent
abatement. For example, should Tenant improvements for the Premises total
$400,000 and Landlord's costs per paragraph 48 was $20,000 the savings
represented would be $639,480 -20,000 - 400,000 = $219,480. Landlord would
therefore grant Tenant a total of $509,740 calculated as follows; 219,480 + 2 =
109,740; 400,000 + 109,740 = $509,740 as Landlord's contribution towards
improvements. Landlord's rent abatement would equal $383,688 and Landlord's cash
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contribution would equal $126,052. Other than the cost of Landlord's obligations
under paragraphs 48 and 49, the allowance described in this Paragraph 50
represents Landlord's only obligation toward improvements to the Premises.
51. CONSTRUCTION SUPERVISION. Landlord, at Landlord's sole cost and expense,
shall retain WSJ Properties Construction Division to supervise the improvements
made by Tenant's Contractor (if other than WSJ Properties) for Tenant's initial
built-out. Landlord shall approve all plans in a timely manner prior to
commencement of construction and copies of all permits and final signed-off
copies of permits shall be submitted to Landlord. Landlord shall also be named
as an additional insured on all general and subcontractor insurance policies and
shall receive lien releases from all subcontractors. In general, Landlord
requires the following:
1) The construction area must be kept clean and neat with interior
and exterior daily pick-up.
2) The construction may not unreasonably interfere with any other
tenants in the Complex.
3) Landlord shall received copies of as-built drawings for the
improvements, including HVAC, electrical, plumbing, partitions,
reflected ceilings, finish schedules, millwork, etc. There shall
also be one reproducible set of drawings submitted to Landlord.
4) Landlord shall received a list of all finishes and suppliers.
5) ELECTRICAL
a) All electrical shall be in EMT with no M.C. Cable.
b) Any new panels and breakers to match existing and shall be
accurately labeled.
c) All fluorescent lighting shall be cool white or otherwise as
reasonably agreeable to both parties.
6) HVAC
a) Zone boxes and controls shall match existing if available.
b) EMONDEMON meters shall be installed on all special air
conditioning units.
c) All thermostats shall be new and match existing if available.
d) Landlord shall receive a structural report for all new units
placed on the roof.
e) All roof patching shall be hot mopped not cold patched.
f) Upon completion of construction the HVAC Systems shall be air
balanced and all filters changed.
7) PLUMBING
Tenant shall not use plastic piping. All piping must be copper
galvanized or cast iron.
8) KEYS
Landlord shall be provided with the copies of any keys to
locking mechanisms for emergency purposes. Tenant shall
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use a BEST-lock system.
9) Tenant shall be responsible for meeting all applicable codes for
earthquake, energy, and handicap requirements directly related
to Tenant's interior improvements. Any contractor or
subcontractor must be licensed to do business in the State of
California. This Tenant responsibility shall be for all items
not defined as Landlord's responsibility in paragraph 48.
10) The general contractor and subcontractors shall use first class
construction practices and shall comply with reasonable
suggestions of the WSJ Properties Construction Supervisor.
52. NON DISTURBANCE
Landlord further represents that there are no outstanding loans on the
Premises leased hereunder. In the event Landlord borrows in the future and uses
the Premises leased hereunder as security, Landlord shall so notify Tenant.
53. MICROSOFT TO BE SUBSTITUTED AS TENANT
Tenant warrants to Landlord that Tenant's Board of Directors has
approved this Lease transaction. Landlord and Tenant further acknowledge that
Tenant is in the process of being acquired by Microsoft, Inc., a Delaware
Corporation (hereinafter referred to as Microsoft) headquartered at Xxx
Xxxxxxxxx Xxx, Xxxxxxx, Xxxxxxxxxx 00000-0000. Landlord, as a material
consideration for entering into this Lease has relied on Tenant's representation
that in the event this acquisition is completed, Microsoft shall assume directly
all the obligations and liabilities of Tenant hereunder and shall be liable for
the full performance as Tenant under this Lease. Microsoft has agreed that the
assumption of this Lease by Microsoft is a condition of the acquisition of
Tenant. Tenant warrants to Landlord that Microsoft has been made aware of this
obligation and that Microsoft has agreed to assume all the obligations of this
Lease at the time the acquisition is completed.
54. CROSS DEFAULT
It is understood that Landlord and Tenant may enter into several leases
for premises in the vicinity of the Premises leased hereunder. Exhibit "B" shows
3 additional buildings for which Tenant shall enter into leases with Landlord
(Buildings 3, 4 and 5), and several additional buildings may be leased by Tenant
from Landlord at a later date. As a material part of the consideration for the
execution of this Lease by Landlord, it is agreed between Landlord and Tenant
that a default under this Lease (after any applicable notice and cure period has
expired), or a default under a lease by Tenant (after any applicable notice and
cure period has expired) for any building leased and shown on Exhibit "B" may,
at the option of Landlord, be considered a default under all leases by and
between Landlord and Tenant then in effect, in which event Landlord shall be
entitled (but in no event required) to apply all rights and remedies of Landlord
under the terms of one lease to all leases including, but not limited to, the
right to terminate one or all of said leases by reason of default under said
Lease or hereunder.
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[MAP OF COMPLEX]
COMPLEX PARCEL NUMBER
------- --------------
1 APN 116 03 020
2 APN 116 03 029
3 APN 116 03 028
4 APN 116 03 027
21
[MAP OF COMPLEX]
COMPLEX PARCEL NUMBER
------- --------------
1 APN 116 03 020
2 APN 116 03 029
3 APN 116 03 028
4 APN 116 03 027
22
RULES AND REGULATIONS OF THE BUILDING
1
No sign, placard, picture, advertisement, name or notice shall be
inscribed, displayed or printed as affixed on or to any part of the outside of
the Premises or any exterior windows of the Premises without the written consent
of Landlord first had and obtained and Landlord shall have the right to remove
any such sign, placard, picture, advertisement, name or notice without notice
to and at the expense of Tenant.
All approved signs or lettering on outside doors shall be printed,
painted, affixed or inscribed at the expense of Tenant.
Tenant shall not place anything or allow anything to be placed near the
glass of any window, door partition or wall which may appear unsightly from
outside the Premises.
2
Tenant shall not occupy or permit any portion of the Premises to be
occupied for the manufacture or sale of liquor, narcotics or tobacco in any
form.
3
4
The sidewalks, passages, exits, entrances, elevators and stairways
shall not be obstructed by Tenant or used by it for any purpose other than
ingress to and egress from its Premises. The passages, exits, entrances,
stairways, balconies and roof are not for the use of the general public and
Landlord shall in all cases retain the right to control and prevent access
thereto by all persons whose presence in the judgment of Landlord shall be
prejudicial to the safety, character, reputation and interests of the Premises
and its tenants, provided that nothing herein contained shall be construed to
prevent such access to persons with whom Tenant normally deals in the ordinary
course of Tenant's business unless such persons are engaged in illegal
activities. Tenant, employees or invitees of Tenant shall not go upon the roof
of the Premises.
5
The toilet rooms, urinals, wash bowls and other apparatus shall not be
used for any purpose other than that for which they were constructed and no
foreign substances of any kind whatsoever shall be thrown therein and the
expense of any breakage, stoppage or damage resulting from the violation of
this rule shall be borne by Tenant who, or whose employees or invitees shall
have caused it.
6
Tenants shall not overload the floor of the Premises or in any way
deface the Premises or any part thereof.
7
Landlord shall have the right to prescribe the weight, size and position
of all safes and other heavy equipment brought into the Premises. Safes or other
heavy objects shall, if considered necessary by Landlord, stand on wood strips
of such thickness as is necessary to properly distribute the weight. Landlord
will not be responsible for loss of or damage to any such safe or property from
any cause and all damage done to the Premises by moving or maintaining any such
safe or other property shall be repaired at the expense of Tenant.
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9
Tenant shall not use, keep or permit to be used or kept any foul or
noxious gas or substance in the Premises, or permit or suffer the Premises to
be occupied or used in a manner offensive or objectionable to Landlord or other
occupants of the Premises by reason of noise, odors and/or vibrations, or
interfere in any way with other tenants or those having business therein, nor
shall any animals or birds with the exception of Dog Guides for the blind, be
brought in or kept about the Premises.
10
No cooking (except microwave cooking and coffee/tea brewing) shall be
done or permitted by Tenant on the Premises, nor shall the Premises be used for
the storage of merchandise for washing clothes, for lodging, or for any
improper, objectionable or immoral purposes.
11
No boring or cutting for wires will be allowed without the consent of
Landlord. The location of telephones, call boxes and other office equipment
affixed to the Premises shall be subject to the approval of Landlord.
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12
Tenant upon the termination of the tenancy, shall deliver to Landlord
the keys of offices, rooms and toilet rooms which have been furnished the
Tenant or which Tenant shall have had made.
13
Tenant shall see that the doors of the Premises are closed and securely
locked before leaving the Premises and must observe strict care and caution
that all water faucets or water apparatus within the Premises are entirely shut
off before Tenant or Tenant's employees leave the Premises, and that all
electricity shall likewise be carefully cut off, so as to prevent waste or
damage.
14
Landlord reserves the right to exclude or expel from the Premises any
person who, in the judgment of Landlord, is intoxicated or under the influence
of liquor or drugs, or who shall in any manner do any act in violation of any
of the rules and regulations of the Premises.
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Tenant shall not disturb, solicit, or canvass any occupant of the
Premises and shall cooperate to prevent same.
18
Tenant agrees to assume responsibility for compliance by its employees
with the parking provision contained herein. Tenant hereby authorizes Landlord
at Tenant's sole expense to tow away from the Complex any vehicle belonging to
Tenant or Tenant's employees parked in violation of these provisions, or to
attach violation stickers or notices to such vehicle. Tenant shall use the
parking areas for vehicle parking only, and shall not use the parking areas for
storage.
Landlord's initials Tenant's initials
