FIRST AMENDMENT TO LEASE AND LICENSE
EXHIBIT 10.31
FIRST
AMENDMENT TO LEASE AND LICENSE
THIS
FIRST AMENDMENT TO LEASE AND LICENSE (this "Amendment") is entered into as
of
the l9th day of September, 2006 (the "Effective Date"), by and between
RREEF
AMERICA REIT III-ZI LLC,
a
Delaware limited liability company ("Landlord"), successor in interest to BCIA
New England Holdings LLC, a Delaware limited liability company (the "Original
Landlord") and HIFN,
INC.,
a
California corporation ("Tenant").
Recitals
A.
Landlord
is the owner of certain real property located and known as Point West Place,
111
Speen Street, Framingham, Massachusetts (the "Land") and the building thereon
(the "Building") and other improvements constructed thereon (the Land, the
Building and the other improvements are hereinafter collectively referred to
as
the "Property").
B.
Reference
is made to that certain lease dated as of June 30, 2003 (the "Lease") between
the Original Landlord, as landlord, and Tenant, as tenant, as modified by
Commencement Date Letter dated September 15, 2003 between Original Landlord
and
Tenant, with respect to a portion of the Building, currently consisting of
approximately 4,177 rentable square feet on the second floor (the "Leased
Premises").
C.
Reference is also made to that certain Storage Space License dated January
31,
2004 between Original Landlord, as Landlord, and Tenant, as Tenant (the
"License").
D.
Landlord
is the current owner of the Property and the current holder of the Landlord's
interest under both the Lease and the License and Tenant is the current holder
of the Tenant's interest under both the Lease and the License.
E. Landlord
and Tenant desire to extend the term of the Lease and License, and to otherwise
amend the Lease and License as more particularly set forth below.
NOW
THEREFORE, for valuable consideration, the receipt and sufficiency of which
is
hereby mutual1y acknowledged, Landlord and Tenant hereby agree that the Lease
and License are hereby amended as follows:
Agreements
1.
Capitalized
Terms.
Each
capitalized term appearing but not defined herein shall have the meaning, if
any, ascribed to such term in the Lease or the License, as the context shal1
require.
2.
Recitals.
The
recitals above set forth are true and complete and are incorporated herein
by
reference.
3. Amendments.
As of
the Effective Date, the Lease is hereby amended as follows:
(a)
Landlord.
The
term "Landlord," as used in both the Lease and the License is hereby amended
to
read in its entirety as follows:
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LANDLORD:
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RREEF
AMERICA REIT In - Z1 LLC,
a
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Delaware
limited liability company
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(b)
Landlord's
Address. For
all
purposes under the Lease and License, Landlord's address and Landlord's Managing
Agent's address for notice shall be as follows:
LANDLORD'S
ADDRESS:
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c/o
RREEF Management Company
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0
Xxxxxxxxxx Xxxxx
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Xxxxxxxxxxx,
XX 00000
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4.
Amendments
to License.
(a) Landlord
and Tenant hereby agree that the term of the License is hereby extended
so that it shall expire upon the date of expiration or earlier termination
of
the Lease, as amended hereby, unless the License is sooner terminated by
Landlord in accordance with the provisions of the License. Tenant hereby accepts
the Storage Space as defined in Section 1 of the License "As Is", in its current
condition, without any representations or warranties by Landlord and without
any
obligation by Landlord to prepare the same for Tenant's use and occupancy or
to
make any payments or to give any allowances to Tenant.
(b) Section
1
(g) of the License is hereby amended by inserting the following at the end
of
the penultimate sentence thereof: "in which event Landlord may terminate this
License immediately upon giving notice of termination to Tenant."
5.
Amendments
to Lease.
(a) Basic
Rent.
Until
November 30, 2006, Basic Rent shall remain payable as per the current Lease.
Commencing as of December 1, 2006 and continuing through the remainder of the
term as extended, Basic Rent shall be payable in the following
amounts:
Period
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Rentable
Square
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Rent
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Annual
Rent
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Monthly
Installment
|
|
from
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to
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Footage
|
Per
Square Foot
|
of
Rent
|
|
12/1/2006
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11/30/2007
|
4,177
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$24.00
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$100,248.00
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$8,354.00
|
12/1/2007
|
11/30/2008
|
4,177
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$25.00
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$104,425.00
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$8,702.08
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12/1/2008
|
11/30/2009
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4,177
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$26.00
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$108,602.00
|
$9,050.17
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12/1/2009
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I
1/30/2010
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4,177
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$27.00
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$112,779.00
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$9,398.25
|
12/1/2010
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11/30/2011
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4,177
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$28.00
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$116,956.00
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$9,746.33
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(b)
Base
Year for Operating Expenses.
Effective December 1, 2006: Calendar year 2007.
(c) Base
Year for Taxes.
Effective December 1, 2006: Calendar year 2007.
Calendar
Year 2007 is comprised of half of tax fiscal year 2007, (i.e., January 1, 2007
through June 30, 2007) and half of tax fiscal year 2008, (i.e., July 1, 2007
through December 31, 2007).
(d)
Tax
Year.
Effective December 1, 2006: "Tax Year" shall mean a
calendar
-2-
year
or
portion thereof included within the Term, which calendar year may be comprised
of
portions of
more
than
one tax 'fiscal year. For example, the Tax Year which is Calendar Year
2008
is
comprised of
half
of
tax
fiscal year 2008,
(i.e.,
January 1, 2008 through
June 30, 2008)
and
half
of
tax
fiscal year 2009,
(i.e.,
July 1,2008 through December 31,2008).
(e)
Term.
The
Term, currently scheduled to expire on November 30, 2006, is hereby extended
for
an additional period of five (5) years, beginning December 1, 2006 and ending
November 30, 2011.
(f) Agent.
Effective immediately, the Agent (as defined in Section 1.2 of
the
Lease)
is
RREEF Management Company, a Delaware corporation.
(g) Effective
December 1, 2006, Article 8.1 (b) of the Lease is hereby deleted and the
following substituted therefor:
"(b)
In
the event that Taxes assessed for any Tax Year shall exceed Base Taxes, Tenant
shall pay to Landlord, as Additional Rent, an amount equal to (i) the excess
of
Taxes assessed for such Tax Year over Base Taxes, multiplied by (ii) Tenant's
Proportionate Share, both the Taxes assessed for the Tax Year and the Base
Taxes
to be apportioned in the case of any partial Tax Year at the end of the
Term."
(h)
Article
14.1 (a) of the Lease, defining "Default of
Tenant"
is hereby amended to add a new subdivision (ix) as follows: "Tenant shall fail
to perform or observe any term or condition contained in the License and such
failure shall continue beyond any applicable notice and cure periods provided
for in the License".
(i) Condition
of Premises.
In
connection with this Amendment, Landlord shall provide (i) 600 CFM cabinet
exhaust fan on thermostat for Tenant's computer room and (ii) a central system
diffuser balanced to 200 CFM plus four (4) 2x2 grilles for the Tenant's lab
area. Except as set forth in the preceding sentence, Tenant hereby acknowledges
and agrees that (i) the Premises and the Storage Space are satisfactory to
Tenant in all respects in their "AS IS" condition, without representation or
warranty of any kind by Landlord, (ii) it is the current tenant of the Premises
and the Storage Space, (iii) it has inspected and is familiar with the Premises
and the Storage Space as the current tenant of the Premises and the Storage
Space, (iv) has found the Premises and the Storage Space to be satisfactory
to
its intended uses, and (v) Landlord is not required to complete any unperformed
repair or other work with respect to the Premises or the Storage Space as of
the
date of this Amendment.
(j) Security
Deposit.
Landlord acknowledges that it is presently holding a cash Security Deposit
in
the amount of $19,840.75, which is presently the "Required Amount" pursuant
to
Section 14.8 of the Lease. Landlord and Tenant hereby agree that the "Required
Amount" of the Security Deposit shall remain as $19,840.75 throughout the
remainder of the Term, as extended hereby, without reduction. The Security
Deposit shall continue to be held by Landlord subject to the terms of Section
14.8 of the Lease.
(k) Extension
Option.
Section
15.20 of the Lease and all references thereto are
hereby deleted. Tenant shall have no right or option to extend the Term of
this
Lease for the
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Extension
Period provided for in said Section 15.20 or for any other period beyond
November 30, 2011.
6.
Amendments
affecting both Lease and License Provisions
(a)
Insurance.
Effective immediately, Sections 10.2 and 10.4 of the Lease and Section 1(k)
of
the License are each deleted and replaced with the following provision, except
that in the case of the License, all references to the "Premises" in the
following provision shall be deemed to be references to the "Storage Space",
and
all references to the "Lease" in the following provision shall be deemed to
be
references to the "License".
"Tenant
shall keep in force throughout the Term: (a) a Commercial General Liability
insurance policy or policies to protect the Landlord Entities (defined below)
against any liability to the public or to any invitee of Tenant or a Landlord
Entity incidental to the use of or resulting from any accident occurring in
or
upon the Premises with a limit of not less than $2,000,000 per occurrence and
not less than $3,000,000 in the annual aggregate, (b) Business Auto Liability
covering owned, non-owned and hired vehicles with a limit of not less than
$1,000,000 per accident; (c) insurance protecting against liability under
Worker's Compensation Laws with limits at least as required by statute; (d)
Employers Liability with limits of $1,000,000 each accident, $1,000,000 disease
policy limit, $1,000,000 disease--each employee; and (e) All Risk or Special
Form coverage protecting Tenant against loss of or damage to Tenant's
alterations, additions, improvements, carpeting, floor coverings, panelings,
decorations, fixtures, inventory and other business personal property situated
in or about the Premises. "Landlord Entities" means Landlord, Landlord's
investment manager, and the trustees, boards of directors, officers, general
partners, beneficiaries, stockholders, employees and agents of each of
them.
The
aforesaid policies shall (a) be provided at Tenant's expense; (b) name the
Landlord Entities as additional insured; (c) be issued by an insurance company
authorized to do business in the state where the premises are located, with
a
minimum Best's rating of "A-:VII" during the Term; and (d) provide that said
insurance shall not be canceled unless thirty (30) days prior written notice
(ten days for non-payment of premium) shall have been given to Landlord. Tenant
shall provide Landlord with a certificate of insurance for the aforementioned
coverage on XXXXX Form 25 (liability) and XXXXX Form 27 (casualty) (or their
substantial equivalent), to be delivered no later than the date on which
Landlord delivers possession of the Premises to Tenant, and at least thirty
(30)
days prior to each renewal of said insurance.
Whenever
Tenant shall undertake any alterations, additions or improvements in, to or
about the Premises ("Work") the aforesaid insurance protection must extend
to
and include injuries to persons and damage to property arising in connection
with such Work, without limitation including liability under any applicable
structural work act, and such other insurance as Landlord shall require; and
the
policies of or certificates evidencing such insurance must be delivered to
Landlord prior to the commencement of any such Work.
So
long
as their respective insurers so permit, Tenant and Landlord
hereby
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mutually
waive their respective rights of recovery against each other for any loss
insured by fire, extended coverage, All Risks or other insurance now or
hereafter existing for the benefit of the respective party but only to the
extent of the net insurance proceeds payable under such policies. Each party
shall obtain any special endorsements required by their insurer to evidence
compliance with the aforementioned waiver."
(a)
Environmental
Compliance.
Section
5.4 of the Lease is hereby deleted and replaced with the following provision,
and the following provision is hereby added as Section 1 (z) to the License,
except that in the case of the License, all references to the "Premises" in
the
following provision shall be deemed to be references to the "Storage Space",
and
all references to the "Lease" in the following provision shall be deemed to
be
references to the "License".
"Environmental
Compliance.
(i)
Tenant shall not, and shall not direct, suffer or permit any of its agents,
contractors, employees, licensees or invitees (collectively, the "Tenant
Entities") to at any time handle, use, manufacture, store or dispose of in
or
about the Premises or the Building any (collectively "Hazardous Materials")
flammables, explosives, radioactive materials, hazardous wastes or materials,
toxic wastes or materials, or other similar substances, petroleum products
or
derivatives or any substance subject to regulation by or under any federal,
state and local laws and ordinances relating to the protection of the
environment or the keeping, use or disposition of environmentally hazardous
materials, substances, or wastes, presently in effect or hereafter adopted,
all
amendments to any of them, and all rules and regulations issued pursuant to
any
of such laws or ordinances (collectively "Environmental Laws"), nor shall Tenant
suffer or permit any Hazardous Materials to be used in any manner not fully
in
compliance with all Environmental Laws, in the Premises or the Building and
appurtenant land or allow the environment to become contaminated with any
Hazardous Materials. Notwithstanding the foregoing, Tenant may handle, store,
use or dispose of products containing small quantities of Hazardous Materials
(such as aerosol cans containing insecticides, toner for copiers, cleaning
fluids and cleaning supplies, paints, paint remover and the like) to the extent
customary and necessary for the use of the Premises for general office purposes;
provided that Tenant shall always handle, store, use, and dispose of any such
Hazardous Materials in a safe and lawful manner and never allow such Hazardous
Materials to contaminate the Premises, Building and appurtenant land or the
environment. Tenant shall protect, defend, indemnify and hold each and all
of
the Landlord Entities (as defined in this Lease) harmless from and against
any
and all loss, claims, liability or costs (including court costs and attorney's
fees) to the extent caused by the failure of Tenant to fully comply with all
applicable Environmental Laws, or except as permitted herein, to the extent
caused by the presence, handling, use or disposition in or from the Premises
of
any Hazardous Materials by Tenant or any Tenant Entity (even though permissible
under all applicable Environmental Laws or the provisions of this Lease), or
to
the extent caused by the failure of Tenant to keep, observe, or perform any
provision of this paragraph."
7.
Brokers.
Landlord and Tenant each hereby represents and warrants that it has not dealt
with any real estate broker or agent in connection with the procurement of
this
Amendment
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except
Xxxxxxxx Xxxxx Xxxxx & Partners, LLC and Xxxxxx Commercial Properties, Inc.,
whose commissions shall be paid by Landlord upon the completion and full
execution of this Amendment, and not otherwise. Tenant shall indemnify and
hold
Landlord harmless from any costs, expense or liability (including costs of
suit
and reasonable attorneys' fees) for any compensation, commission or fees
claimed
by any real estate broker or agent other than the aforementioned broker(s)
in
connection with the procurement of this Amendment because of any act or
statement by the Tenant. Landlord shall indemnify and hold Tenant harmless
from
any costs, expense or liability (including costs of suit and reasonable
attorneys' fees) for any compensation, commission or fees claimed by any
real
estate broker or agent in connection with the procurement of this Amendment
because of any act or statement by the Landlord.
8. Effective
Date.
The
parties agree that this Amendment shall be effective from and after the
Effective Date and not to any period of time prior thereto. To the extent this
Amendment contains language which purports to amend the Lease or License with
respect to periods of time prior to the Effective Date, such language is for
clarification purposes only and shall not be deemed to change the obligations
of
the parties with respect thereto. In no event shall this Amendment be construed
to impose any liability on Landlord for any period of time preceding its
ownership of the Property.
9. Ratification
of Lease and License Provisions.
Except
as otherwise expressly amended, modified and provided for in this Amendment,
Tenant hereby ratifies all of the provisions, covenants and conditions of the
Lease and License, and such provisions, covenants and conditions shall be deemed
to be incorporated herein and made a part hereof and shall continue in full
force and effect. Tenant acknowledges that Landlord is not currently in default
of any of its obligations under the Lease or License.
10.
Entire
Amendment.
This
Amendment contains all the agreements of the parties with respect to the subject
matter hereof and supersedes all prior dealings between the parties with respect
to such subject matter.
11.
Authority.
Landlord and Tenant each warrant to the other that the person or persons
executing this Amendment on its behalf has or have authority to do so and that
such execution has fully obligated and bound such party to all terms and
provisions of this Amendment.
12. Binding
Amendment.
This
Amendment shall be binding upon, and shall inure to the benefit of the parties
hereto, and their respective successors and assigns.
13.
Governing
Law.
This
Amendment shall be governed by the law of the state in which the Premises is
located.
14.
Severability.
If any
clause or provision of this Amendment is or should ever be held to be illegal,
invalid or unenforceable under any present or future law applicable to the
terms
hereof, then and in that event, it is the intention of the parties hereto that
the remainder of this Amendment shall not be affected thereby, and that in
lieu
of each such clause or provision of this Amendment that is illegal, invalid
or
unenforceable, such clause or provision shall be judicially construed and
interpreted to be as similar in substance and content to such
illegal,
-6-
invalid
or unenforceable clause or provision, as the context thereof would reasonably
suggest, so as to thereafter be legal, valid and enforceable.
15.
No
Reservation.
Submission of this Amendment for examination or signature is without prejudice
and does not constitute a reservation, option or offer, and this Amendment
shall
not be effective until execution and delivery by all parties.
16.
Counterparts.
This
Amendment may be executed simultaneously in two or more counterparts, each
of
which shall be deemed an original, but all of which together shall constitute
one and the same instrument.
17.
Limitation
of Landlord's Liability.
Redress
for any claim against Landlord under the Lease as amended and under the License,
as amended, shall be limited to and enforceable only against and to the extent
of Landlord's interest in the Building. The obligations of Landlord under the
Lease, as amended, and under the License, as amended, are not intended to be
and
shall not be personally binding on, nor shall any resort be had to the private
properties of, any of its or its investment manager's trustees, directors,
officers, partners, beneficiaries, members, stockholders, employees, or agents,
and in no case shall Landlord be liable to Tenant under the Lease, as amended,
or under the License, as amended, for any lost profits, damage to business,
or
any form of special, indirect or consequential damages."
IN
WITNESS WHEREOF, the parties hereto have executed this Amendment under seal
as
of the date and year first above written.
LANDLORD:
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TENANT:
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RREEF
AMERICA REIT III - Z1 LLC,
a
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HIFN,
INC,
a
California corporation
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Delaware
corporation, Authorized Agent
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By:
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RREEF
Management Company, a
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Delaware
corporation, Authorized Agent
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By:
/s/ Xxxxxx Xxxxx
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By:
/s/ Xxxxxxx X. Xxxxxx
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Name:
Xxxxxx Xxxxx
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Name:
Xxxxxxx Xxxxxx
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Title:
District Manager
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Title:
CFO
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Dated:
10/4/2006
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Dated:
10/3/2006
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