EXHIBIT 10.23
CARMEL CORPORATE PLAZA
OFFICE LEASE
This Office Lease, which includes the preceding Summary attached hereto
and incorporated herein by this reference (the Office Lease and Summary to be
known sometimes collectively hereafter as the "LEASE"), dated as of the date set
forth in Section 1 of the Summary, is made by and between 15015 AVENUE OF
SCIENCE ASSOCIATES LLC, a Delaware limited liability company ("LANDLORD") and
PDF SOLUTIONS, INC., a Delaware corporation ("TENANT").
ARTICLE 1
PROJECT, BUILDING AND PREMISES
1.1 PROJECT, BUILDING AND PREMISES. Upon and subject to the terms set
forth in this Lease, Landlord hereby leases to Tenant and Tenant hereby leases
from Landlord the premises set forth in Section 6.1 of the Summary (the
"PREMISES"), which Premises are located in the Building defined in Section 6.2
of the Summary. The outline of the Premises is set forth in EXHIBIT A attached
hereto. The Building, commonly known as The Carmel Corporate Plaza, is located
at 00000 Xxxxxx xx Xxxxxxx, Xxx Xxxxx, Xxxxxxxxxx 00000-0000. The Building, the
parking facilities located adjacent to the Building (the "PROJECT PARKING
AREA"), any outside plaza areas, land and other improvements surrounding the
Building and such other future buildings (if any), and the land upon which all
of the foregoing are situated, are herein sometimes collectively referred to
herein as the "PROJECT" or "REAL PROPERTY." Tenant acknowledges that Landlord
has made no representation or warranty that other office buildings will be
constructed in the Project, and Landlord may at its sole discretion, elect to
construct or not construct any such additional office buildings or phases within
the Project. Tenant further acknowledges that Landlord has made no
representation or warranty regarding the condition of the Real Property except
as specifically set forth in this Lease or the Tenant Work Letter. Tenant is
hereby granted the right to the nonexclusive use of the common corridors and
hallways, stairwells, elevators, restrooms and other public or common areas
located on the Real Property; provided, however, that the manner in which such
public and common areas are maintained and operated shall be at the sole
discretion of Landlord and the use thereof shall be subject to the rules,
regulations and restrictions attached hereto as EXHIBIT B (the "RULES AND
REGULATIONS"), as the same may be modified by Landlord from time to time.
Landlord reserves the right to make alterations or additions to or to change the
location of elements of the Project and the common areas thereof.
1.2 CONDITION OF PREMISES. Except as expressly set forth in this Lease and
in the Tenant Work Letter attached hereto as EXHIBIT D, Landlord shall not be
obligated to provide or pay for any improvements, work or services related to
the improvement, remodeling or refurbishment of the Premises, and Tenant shall
accept the Premises in its "AS IS" condition on the Lease Commencement Date.
Tenant also acknowledges that Landlord has made no representation or warranty
regarding the condition of the Premises or the Project, except as specifically
set forth in this Lease and the Tenant Work Letter. Landlord represents that, as
of the Lease Commencement Date, the Building's mechanical, electrical, heating,
ventilating, air conditioning, and life safety systems will be in a good
operating condition.
1.3 RENTABLE SQUARE FEET. The parties hereby stipulate that the Premises
contain the rentable square feet set forth in Section 6.1 of the Summary, and
such square footage amount is not subject to adjustment or remeasurement by
Landlord or Tenant. Accordingly, there shall be no adjustment in the Base Rent
or other amounts set forth in this Lease which are determined based upon
rentable square feet of the Premises, except as set forth in Section 4.2.6
hereof.
CARMEL CORPORATE PLAZA
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ARTICLE 2
LEASE TERM
2.1 LEASE TERM. The terms and provisions of this Lease shall be effective
as of the date of this Lease. The term of this Lease (the "LEASE TERM") shall be
as set forth in Section 7.1 of the Summary and shall commence on the date (the
"LEASE COMMENCEMENT DATE") set forth in Section 7.3 of the Summary, and shall
terminate on the date (the "LEASE EXPIRATION DATE") set forth in Section 7.4 of
the Summary, unless this Lease is sooner terminated as hereinafter provided. At
any time during the Lease Term, Landlord may deliver to Tenant an amendment to
this Lease confirming the Lease Commencement Date and Lease Expiration Date, in
the form as set forth in EXHIBIT C, attached hereto, which Tenant shall execute
and return to Landlord within five (5) days of receipt thereof. Tenant may, no
more than thirty (30) days prior to the Lease Commencement Date, enter the
Premises in order to install cables, phone and computer systems and/or furniture
and equipment. If Tenant desires to exercise its right of early entry in
accordance with the provisions of this Section, Tenant further agrees (i) to
provide to Landlord at least three (3) business days advance written notice of
the date of its intended entry, (ii) that Tenant shall pay for and provide
certificates evidencing the existence and amounts of liability insurance carried
by Tenant, which insurance shall comply with the terms and conditions of this
Lease, (iii) that Tenant and its employees, contractors and agents shall comply
with all applicable laws, regulations, permits and other approvals applicable to
such early entry work on the Premises, (iv) that Tenant and its employees,
contractors and agents shall not interfere with or delay in any manner the
construction of the Tenant Improvements, and (v) that during such early
occupancy period, Tenant shall comply with all other terms and conditions of the
Lease other than the payment of Rent.
ARTICLE 3
BASE RENT
3.1 BASE RENT. Tenant shall pay, without notice or demand, to Landlord at
the management office of the Project, or, at Landlord's option, such other place
as Landlord may from time to time designate in writing, in currency or a check
for currency which, at the time of payment, is legal tender for private or
public debts in the United States of America, base rent ( "BASE RENT") as set
forth in Section 8 of the Summary, payable in equal monthly installments as set
forth in Section 8 of the Summary in advance on or before the first day of each
and every calendar month during the Lease Term, without any setoff or deduction
whatsoever. The Base Rent for the first full calendar month of the Lease Term
shall be paid at the time of Tenant's execution of this Lease. If any rental
payment date (including the Lease Commencement Date) falls on a day of a
calendar month other than the first day of such calendar month or if any Rent
payment is for a period which is shorter than one calendar month (such as during
the last month of the Lease Term), the Rent for any fractional calendar month
shall be the proportionate amount of a full calendar month's rental based on the
proportion that the number of days in such fractional month bears to the number
of days in the calendar month during which such fractional month occurs. All
other payments or adjustments required to be made under the terms of this Lease
that require proration on a time basis shall be prorated on the same basis.
3.2 RENT RECAPTURE. Notwithstanding anything to the contrary set forth
herein, Landlord and Tenant hereby agree that, despite the provisions of Section
8 of the Lease Summary, the Monthly Base Rental Rate per Rentable Square Foot
for the period commencing on the Lease Commencement Date and ending on December
31, 2003 (such period being called the "ADJUSTMENT PERIOD") normally would be
computed on the basis of $1.50 per Rentable Square Foot (the "ACTUAL RATE"). As
an inducement to Tenant's execution of this Lease, Landlord has agreed to
accept, during the Adjustment Period, the Base Rent set forth in Section 8 of
the Summary. However, in the event of a default by Tenant under the terms of
this Lease which results in early termination of this Lease, then as a part of
the recovery set forth in this Lease, Landlord shall be entitled to recover from
Tenant an amount equal to the difference between the Base Rent paid by Tenant
during the Adjustment Period and the amount of Base Rent that would have been
paid to Landlord during the Adjustment Period if the Base Rent for such period
was calculated using the Actual Rate.
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ARTICLE 4
ADDITIONAL RENT
4.1 ADDITIONAL RENT. In addition to paying the Base Rent specified in
Article 3 of this Lease, Tenant shall pay as additional rent:
(i) Tenant's Share of the annual "Direct Expenses," as those terms
are defined in Sections 4.2.6 and 4.2.1 of this Lease, respectively; and
(ii) Tenant's Share of the annual Utilities Costs, as that term is
defined in Section 4.2.5 of this Lease.
4.2 DEFINITIONS. As used in this Article 4, the following terms shall have
the meanings hereinafter set forth:
4.2.1 "DIRECT EXPENSES" shall mean "Operating Expenses" and "Tax
Expenses."
4.2.2 "EXPENSE YEAR" shall mean each calendar year in which any
portion of the Lease Term falls, through and including the calendar year in
which the Lease Term expires; provided, that Landlord, upon notice to Tenant,
may change the Expense Year from time to time to any twelve (12) consecutive
month period, and, in the event of any such change, Tenant's Share of the Direct
Expenses and Tenant's Share of the Utilities Costs shall be equitably adjusted
for any Expense Year involved in any such change.
4.2.3 "OPERATING EXPENSES" shall mean all expenses, costs and
amounts of every kind and nature which Landlord shall pay or incur during any
Expense Year because of or in connection with the ownership, management,
maintenance, repair, replacement, restoration or operation of the Real Property,
including, without limitation, any amounts paid or incurred for: (i) all
Utilities Costs; (ii) the cost of janitorial service, alarm and security
service, window cleaning, and trash removal, the cost of operating, maintaining,
repairing, replacing, renovating, managing and complying with conservation
measures in connection with the utility systems, mechanical systems, sanitary
and storm drainage systems, and escalator and elevator systems, and the cost of
supplies, tools, and equipment and maintenance and service contracts in
connection therewith; (iii) the cost of licenses, certificates, permits and
inspections and the cost of contesting the validity or applicability of any
governmental enactments which may affect Operating Expenses, and the costs
incurred in connection with the implementation and operation of a transportation
system management program or similar program; (iv) the cost of insurance carried
by Landlord in connection with the Real Property, in such amounts as Landlord
may reasonably determine, or as may be required by any mortgagees, or the lessor
of any underlying or ground lease affecting the Real Property; (v) the cost of
landscaping, relamping, supplies, tools, equipment (including equipment rental
agreements) and materials, and all fees, charges and other costs, including
management fees (or amounts in lieu thereof), consulting fees, legal fees and
accounting fees, incurred in connection with the management, operation,
administration, maintenance and repair of the Real Property; (vi) the cost of
parking area repair, restoration and maintenance, including, but not limited to,
resurfacing, repainting, restriping, and cleaning; (vii) fees, charges and other
costs, including consulting fees, legal fees and accounting fees, of all
contractors and consultants engaged by Landlord in connection with the
management, operation, maintenance and repair of the Building or Project; (viii)
payments under any equipment rental agreements or management agreements
(including the cost of any management fee and the fair rental value of any
office space provided thereunder); (ix) wages, salaries and other compensation
and benefits of all persons engaged in the operation, management, maintenance or
security of the Real Property, and employer's Social Security taxes,
unemployment taxes or insurance, and any other taxes which may be levied on such
wages, salaries, compensation and benefits shall be included in Operating
Expenses based on their work time devoted to the Building or Project; (x)
payments under any easement, license, operating agreement, declaration,
restrictive covenant, or instrument pertaining to the sharing of costs by the
Real Property; (xi) amortization (including interest on the unamortized cost at
a rate equal to the floating commercial loan rate announced from time to time by
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Bank of America, a national banking association, or its successor, as its prime
rate, plus 2% per annum (the "INTEREST RATE")) of the cost of acquiring or the
rental expense of personal property used in the maintenance, operation and
repair of the Real Property; (xii) the cost (including rent) of Landlord's
property management office for the Real Property and all utilities, supplies and
materials used in connection therewith; (xiii) costs which relate to the
operation, repair, maintenance and replacement of all systems, equipment or
facilities which serve the Real Property in the whole or in part (including
replacement of wall and floor coverings, ceiling tiles and fixtures in lobbies,
corridors, restrooms and other common or public areas or facilities, maintenance
and replacement of curbs, walkways and parking areas, and repairs to roofs and
reroofing of improvements), and (xiv) the cost of any capital alterations,
capital additions, or capital improvements made to the Real Property or any
portion thereof, (A) which are intended as a labor-saving device or to effect
other economies in the operation or maintenance of the Real Property, or any
portion thereof, or (B) that are required under any governmental law or
regulation that is then being enforced by a federal, state or local governmental
agency; provided, however, that each such permitted capital expenditure shall be
amortized (including interest on the unamortized cost at the Interest Rate in
effect at the time such expenditure is placed in service) over its useful life
as Landlord shall reasonably determine. If Landlord is not furnishing any
particular work or service (the cost of which, if performed or provided by
Landlord, would be included in Operating Expenses) to a tenant who has
undertaken to perform such work or service in lieu of the performance thereof by
Landlord, Operating Expenses shall be deemed to be increased by an amount equal
to the additional Operating Expenses which would reasonably have been incurred
during such period by Landlord if it had at its own expense furnished such work
or service to such tenant. If the Building is not one hundred percent (100%)
occupied during all or a portion of any Expense Year, Landlord shall make an
appropriate adjustment to the variable components of Operating Expenses for such
Expense Year as reasonably determined by Landlord employing sound accounting and
management principles, to determine the amount of Operating Expenses that would
have been paid had such building(s) been one hundred percent (100%) occupied,
and the amount so determined shall be deemed to have been the amount of
Operating Expenses for such Expense Year.
Landlord shall have the right, from time to time, to equitably
allocate and prorate some or all of the Direct Expenses and/or Utilities Costs
among different tenants of the Project (the "COST Pools"). Such Cost Pools may
include, without limitation, the office space tenants and retail space tenants
of the Project and may be modified to take into account the addition of any
additional office buildings within the Project, if any.
Notwithstanding the foregoing, for purposes of this Lease, Operating
Expenses shall not, however, include: (A) except as otherwise set forth above in
this Section 4.2.3, interest on debt and amortization on mortgages; (B) ground
lease payments; (C) costs of leasing commissions, attorneys' fees and other
costs and expenses incurred in connection with negotiations or disputes with
present or prospective tenants or other occupants of the Real Property; (D) any
costs expressly excluded from Operating Expenses elsewhere in this Lease; (E)
costs of any items to the extent Landlord receives reimbursement from insurance
proceeds (such proceeds to be excluded from Operating Expenses in the year in
which received, except that any deductible amount under any insurance policy
shall be included within Operating Expenses) or from a third party; (F) tax
penalties incurred as a result of Landlord's negligence, inability or
unwillingness to make payments or file returns when due; (G) costs arising from
Landlord's charitable or political contributions; (H) costs associated with the
operation of the business of the partnership or entity which constitutes the
Landlord, as the same are distinguished from the costs of operation of the Real
Property, including costs of partnership accounting and legal matters, costs of
defending any lawsuits with any mortgagee (except as the actions of Tenant may
be in issue), costs of selling, syndicating, financing, mortgaging or
hypothecating any of the Landlord's interest in the Building; (I) costs incurred
in connection with any disputes between Landlord and other tenants or occupants;
or (J) costs incurred to comply with laws relating to the removal of Hazardous
Material (as hereinafter defined) which was in existence in the Building prior
to the Lease Commencement Date, and was of such a nature that a federal, State
or municipal governmental authority, if it then had knowledge of the presence of
such Hazardous Material, in the state, and under the conditions that then
existed in the
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Building, would have then required the removal of such Hazardous Material or
other remedial or containment action with respect thereto;
4.2.4 "TAX EXPENSES" shall mean all federal, state, county, or local
governmental or municipal taxes, fees, charges or other impositions of every
kind and nature, whether general, special, ordinary or extraordinary (including,
without limitation, real estate taxes, general and special assessments, transit
taxes or charges, business or license taxes or fees, annual or periodic license
or use fees, open space charges, housing fund assessments, leasehold taxes or
taxes based upon the receipt of rent, including gross receipts or sales taxes
applicable to the receipt of rent, personal property taxes imposed upon the
fixtures, machinery, equipment, apparatus, systems and equipment, appurtenances,
furniture and other personal property used in connection with the Project),
which Landlord shall pay or incur during any Expense Year (without regard to any
different fiscal year used by such governmental or municipal authority) because
of or in connection with the ownership, leasing and operation of the Real
Property or Landlord's interest therein.
4.2.4.1 Tax Expenses shall include, without limitation:
(i) any assessment, tax, fee, levy or charge in addition
to, or in substitution, partially or totally, of any assessment, tax, fee,
levy or charge previously included within the definition of real property
tax, it being acknowledged by Tenant and Landlord that Proposition 13 was
adopted by the voters of the State of California in the June 1978 election
("PROPOSITION 13") and that assessments, taxes, fees, levies and charges
may be imposed by governmental agencies for such services as fire
protection, street, sidewalk and road maintenance, conservation, refuse
removal and for other governmental services formerly provided without
charge to property owners or occupants, and, in further recognition of the
decrease in the level and quality of governmental services and amenities
as a result of Proposition 13, Tax Expenses shall also include any
governmental or private assessments or the contribution of the Project
towards a governmental or private cost-sharing agreement for the purpose
of augmenting or improving the quality of services and amenities normally
provided by governmental agencies. It is the intention of Tenant and
Landlord that all such new and increased assessments, taxes, fees, levies,
and charges and all similar assessments, taxes, fees, levies and charges
be included within the definition of Tax Expenses for purposes of this
Lease;
(ii) any assessment, tax, fee, levy, or charge allocable
to or measured by the area of the Premises or the Rent payable hereunder,
including, without limitation, any gross income tax with respect to the
receipt of such Rent, or upon or with respect to the possession, leasing,
operating, management, maintenance, alteration, repair, use or occupancy
by Tenant of the Premises, or any portion thereof;
(iii) any assessment, tax, fee, levy or charge, upon
this transaction or any document to which Tenant is a party, creating or
transferring an interest or an estate in the Premises;
(iv) any possessory taxes charged or levied in lieu of
real estate taxes; and
(v) any expenses incurred by Landlord in attempting to
protest, reduce or minimize Tax Expenses.
4.2.4.2 Notwithstanding anything to the contrary contained in
this Section 4.2.4, there shall be excluded from Tax Expenses: (i) all excess
profits taxes, franchise taxes, gift taxes, capital stock taxes, inheritance and
succession taxes, estate taxes, federal and state income taxes, and other taxes
to the extent applicable to Landlord's general or net income (as opposed to
rents, receipts or income attributable to operations at the Project); (ii) any
items paid by Tenant under Section 4.4 of this Lease; and (iii) any items
included as Operating Expenses or Utilities Costs.
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4.2.5 "UTILITIES COSTS" shall mean the cost of all utilities
supplied for the Project (including, without limitation, water, sewer,
electricity, telephone and HVAC), other than those utilities which are paid
directly by Tenant and other tenants of the Project for excess consumption and
after-hours HVAC pursuant to Section 6.2 of this Lease or similar provisions in
other tenants' leases.
4.2.6 "TENANT'S SHARE" shall mean the percentage set forth in
Section 9.1 of the Summary. Tenant's Share was calculated by multiplying the
number of rentable square feet of the Premises by 100 and dividing the product
by the total rentable square feet in the Building. In the event either the
rentable square feet of the Premises, the Building, or the Project is changed,
Tenant's Share shall be appropriately adjusted, and, as to the Expense Year in
which such change occurs, Tenant's Share for such year shall be determined on
the basis of the number of days during such Expense Year that each such Tenant's
Share was in effect.
4.3 CALCULATION AND PAYMENT OF ADDITIONAL RENT.
4.3.1 CALCULATION. For each Expense Year ending or commencing within
the Lease Term, Tenant shall pay to Landlord, in the manner set forth in Section
4.3.2, below, and as Additional Rent: (i) Tenant's Share of Direct Expenses for
such Expense Year; and (ii) Tenant's Share of the Utilities Costs incurred for
such Expense Year.
4.3.2 STATEMENT OF ACTUAL DIRECT EXPENSES AND UTILITIES COSTS AND
PAYMENT BY TENANT. Following the end of each Expense Year, Landlord shall give
to Tenant a statement (the "STATEMENT"), which shall indicate: (i) the Direct
Expenses incurred or accrued for such preceding Expense Year; and (ii) the
amount of the Utilities Costs incurred for such preceding Expense Year. Upon
receipt of the Statement for each Expense Year ending during the Lease Term,
Tenant shall pay, with its next installment of Base Rent due, but in no event
later than thirty (30) days after receipt of such Statement, (A) the full amount
of Tenant's Share of Direct Expenses for such Expense Year, less the amounts, if
any, paid during such Expense Year as "Estimated Direct Expenses," as that term
is defined in Section 4.3.3, below, plus (B) the full amount of Tenants Share of
the Utilities Costs for such Expense Year, less the amounts, if any, paid by
Tenant during the Expense Year as "Estimated Utilities Costs", as that term is
defined in Section 4.3.3 below. The failure of Landlord to timely furnish the
Statement for any Expense Year shall not prejudice Landlord from enforcing its
rights under this Article 4. Even though the Lease Term has expired and Tenant
has vacated the Premises, when the final determination is made of the Direct
Expenses and Utilities Costs for the Expense Year in which this Lease
terminates, taking into consideration that the Lease Expiration Date may have
occurred prior to the final day of the applicable Expense Year, Tenant shall
immediately pay to Landlord an amount as calculated pursuant to the provisions
of Section 4.3.1 of this Lease as Tenant's Share of the Direct Expenses and
Utilities Costs for such final Expense Year. The provisions of this Section
4.3.2 shall survive the expiration or earlier termination of the Lease Term.
4.3.3 STATEMENT OF ESTIMATED DIRECT EXPENSES AND UTILITIES COSTS. In
addition, Landlord shall give Tenant a yearly expense estimate statement (the
"ESTIMATE STATEMENT") which shall set forth Landlord's reasonable estimate (the
"ESTIMATE") of (i) what the total amount of Direct Expenses for the then-current
Expense Year shall be Direct Expenses (the "ESTIMATED DIRECT EXPENSES"), and
(ii) what the total amount of Tenant's Share of the Utilities Costs for the
then-current Expense Year shall be (the "ESTIMATED UTILITIES COSTS"). The
Estimate Statement may be revised and reissued by Landlord from time to time.
The failure of Landlord to timely furnish the Estimate Statement for any Expense
Year shall not preclude Landlord from enforcing its rights to collect any
Estimated Direct Expenses or Estimated Utilities Costs under this Article 4.
Within thirty (30) days after receipt of such Estimate Statement, Tenant shall
pay to Landlord an amount equal to (A) a fraction of the Estimated Direct
Expenses (or the increase in the Estimated Direct Expenses if pursuant to a
revised Estimate Statement) for the then-current Expense Year (reduced by any
amounts paid as Estimated Direct Expenses pursuant to the last sentence of this
Section 4.3.3), plus (B) a fraction of the Estimated Utilities Costs (or the
increase in the Estimated Utilities Costs if pursuant to a revised Estimate
Statement) for the then-current Expense Year (reduced by the amounts paid as
Estimated Utilities Costs pursuant to the last sentence of
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this Section 4.3.3). Such fraction shall have as its numerator the number of
months which have elapsed in such current Expense Year to the month of such
payment, both months inclusive, and shall have twelve (12) as its denominator.
Until a new Estimate Statement is furnished, Tenant shall pay monthly, with the
monthly Base Rent installments, an amount equal to the sum of (x) one-twelfth
(1/12) of the total Estimated Direct Expenses plus (y) one-twelfth (1/12) of the
total Estimated Utilities Costs set forth in the previous Estimate Statement
delivered by Landlord to Tenant.
4.4 TAXES AND OTHER CHARGES FOR WHICH TENANT IS DIRECTLY RESPONSIBLE.
Tenant shall reimburse Landlord, as Additional Rent, within ten (10) days after
demand, for any and all taxes required to be paid by Landlord (except to the
extent included in Tax Expenses by Landlord), excluding state, local and federal
personal or corporate income taxes measured by the net income of Landlord from
all sources and estate and inheritance taxes, whether or not now customary or
within the contemplation of the parties hereto, when:
4.4.1 said taxes are measured by or reasonably attributable to the
cost or value of Tenant's equipment, furniture, fixtures and other personal
property located in the Premises, or by the cost or value of any leasehold
improvements made in or to the Premises by or for Tenant, to the extent the cost
or value of such leasehold improvements exceeds the cost or value of a building
standard build-out as determined by Landlord regardless of whether title to such
improvements shall be vested in Tenant or Landlord;
4.4.2 said taxes are assessed upon or with respect to the
possession, leasing, operation, management, maintenance, alteration, repair, use
or occupancy by Tenant of the Premises or any portion of the Project; or
4.4.3 said taxes are assessed upon this transaction or any document
to which Tenant is a party creating or transferring an interest or an estate in
the Premises.
4.5 UTILITIES AND SERVICES. Tenant agrees to contract directly for and to
pay for all electricity, telephone and cable services supplied to the Premises,
together with any taxes thereon. If any such services are not separately metered
to Tenant, any charges related thereto shall constitute Operating Expenses and
Tenant agrees to pay Tenant's Share of such charges as Additional Rent pursuant
to this Lease.
4.6 LATE CHARGES. If any installment of Rent or any other sum due from
Tenant shall not be received by Landlord or Landlord's designee within five (5)
days after the due date therefor, then Tenant shall pay to Landlord a late
charge equal to five percent (5%) of the amount due plus any attorneys' fees
incurred by Landlord by reason of Tenant's failure to pay Rent and/or other
charges when due hereunder. The late charge shall be deemed Additional Rent and
the right to require it shall be in addition to all of Landlord's other rights
and remedies hereunder, at law and/or in equity and shall not be construed as
liquidated damages or as limiting Landlord's remedies in any manner. In addition
to the late charge described above, any Rent or other amounts owing hereunder
which are not paid by the date they are due shall thereafter bear interest until
paid at a rate equal to the lesser of (i) the Interest Rate set forth in Section
4.2.3 above, or (ii) the highest rate permitted by applicable law.
ARTICLE 5
USE OF PREMISES
5.1 USE. Tenant shall use the Premises solely for general office purposes,
and for research and development for an engineering firm, which uses shall be
consistent with the character of the Project as a first-class office building
project, and Tenant shall not use or permit the Premises to be used for any
other purpose or purposes whatsoever. Tenant further covenants and agrees that
it shall not use, or suffer or permit any person or persons to use, the Premises
or any part thereof for any use or purpose contrary to the Rules and
Regulations, or in violation of the laws of the United States of America, the
State of California, or the ordinances, regulations or requirements of the local
municipal or county
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governing body or other lawful authorities having jurisdiction over the Project
(including laws pertaining to Hazardous Materials, as defined below). Tenant
shall comply with the Rules and Regulations. Landlord shall not be responsible
to Tenant for the nonperformance of any of such Rules and Regulations by or
otherwise with respect to the acts or omissions of any other tenants or
occupants of the Project. Tenant shall comply with all recorded covenants,
conditions, and restrictions now or hereafter affecting the Real Property.
5.2 HAZARDOUS MATERIALS.
5.2.1 PROHIBITION ON USE. Tenant shall not use or allow another
person or entity to use any part of the Premises for the storage, use,
treatment, manufacture or sale of Hazardous Materials. Landlord acknowledges,
however, that Tenant will maintain products in the Premises which are incidental
to the operation of its offices, such as photocopy supplies, secretarial
supplies and limited janitorial supplies, which products contain chemicals which
are categorized as Hazardous Materials. Landlord agrees that the use of such
products in the Premises in compliance with all applicable laws and in the
manner in which such products are designed to be used shall not be a violation
by Tenant of this Section 5.2.1.
5.2.2 INDEMNITY. Tenant agrees to indemnify, defend (with legal
counsel reasonably acceptable to Landlord), protect and hold Landlord and the
Landlord Parties (as defined in Section 10.1 below) harmless from and against
any and all claims, actions, administrative proceedings (including informal
proceedings), judgments, damages, punitive damages, penalties, fines, costs,
liabilities, interest or losses, including reasonable attorneys' fees and
expenses, consultant fees, and expert fees, together with all other costs and
expenses of any kind or nature, that arise during or after the Lease Term
directly or indirectly from or in connection with the presence, suspected
presence, release or suspected release of any Hazardous Materials in or into the
air, soil, surface water or groundwater at, on, about, under or within the
Premises or Real Property or any portion thereof, caused by Tenant, its
assignees or subtenants and/or their respective agents, employees, contractors,
licensees or invitees (collectively, "TENANT AFFILIATES").
5.2.3 REMEDIAL WORK. In the event any investigation or monitoring of
site conditions or any clean-up, containment, restoration, removal or other
remedial work (collectively, the "REMEDIAL WORK") is required under any
applicable federal, state or local laws or by any judicial order, or by any
governmental entity as the result of operations or activities upon, or any use
or occupancy of any portion of the Premises by Tenant or Tenant Affiliates,
Tenant shall perform or cause to be performed the Remedial Work in compliance
with such laws or order. All Remedial Work shall be performed by one or more
contractors, selected by Tenant and approved in advance in writing by Landlord.
All costs and expenses of such Remedial Work shall be paid by Tenant, including,
without limitation, the charges of such contractor(s), the consulting engineers,
and Landlord's reasonable attorneys' fees and costs incurred in connection with
monitoring or review of such Remedial Work.
5.2.4 DEFINITION OF HAZARDOUS MATERIALS. As used herein, the term
"HAZARDOUS MATERIALS" means any hazardous or toxic substance, material or waste
which is or becomes regulated by any local governmental authority, the State of
California or the United States Government, including, without limitation, any
material or substance which is (i) defined or listed as a "hazardous waste,"
"extremely hazardous waste," "restricted hazardous waste," "hazardous substance"
or "hazardous material" under any applicable federal, state or local law or
administrative code promulgated thereunder, (ii) petroleum, or (iii) asbestos.
ARTICLE 6
SERVICES AND UTILITIES
6.1 STANDARD TENANT SERVICES. Landlord shall provide the following
services on all days during the Lease Term, unless otherwise stated below.
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6.1.1 Subject to all governmental rules, regulations and guidelines
applicable thereto, Landlord shall provide heating, ventilation and air
conditioning ("HVAC") when necessary for normal comfort for normal office use in
the Premises, from Monday through Friday, during the period from 7:00 a.m. to
6:00 p.m., and on Saturdays during the period from 8:00 a.m. to 12:00 p.m.
(collectively, the "BUILDING HOURS"), except for nationally and locally
recognized holidays as designated by Landlord (collectively, the "HOLIDAYS").
Notwithstanding anything to the contrary set forth in this Lease, Landlord shall
provide HVAC for use in the Lab and the IT Room within the Premises, as such
areas are depicted on EXHIBIT A attached hereto, twenty-four (24) hours per day
seven (7) days per week.
6.1.2 Landlord shall provide adequate electrical wiring and
facilities and power for normal general office use as reasonably determined by
Landlord. Tenant shall bear the cost of replacement of lamps, starters and
ballasts for non-Building standard lighting fixtures within the Premises.
6.1.3 Landlord shall provide city water from the regular Building
outlets for drinking, lavatory and toilet purposes.
6.1.4 Landlord shall provide janitorial services five (5) days per
week, except the date of observation of the Holidays, in and about the Premises.
6.1.5 Landlord shall provide nonexclusive automatic elevator service
at all times.
6.2 OVERSTANDARD TENANT USE. Tenant shall not, without Landlord's prior
written consent, use heat-generating machines, machines other than normal
fractional horsepower office machines, or equipment or lighting other than
building standard lights in the Premises, which may adversely affect the
temperature otherwise maintained by the air conditioning system or increase the
water normally furnished for the Premises by Landlord pursuant to the terms of
Section 6.1 of this Lease. If Tenant uses water or HVAC in excess of that
supplied by Landlord pursuant to Section 6.1 of this Lease, or if Tenant's
consumption of electricity shall exceed an average of three (3) xxxxx per
useable square foot of the Premises, connected load, calculated on a monthly
basis during the Building Hours set forth in Section 6.1.1 above, then Tenant
shall pay to Landlord, within ten (10) days after billing, the cost of such
excess consumption, the cost of the installation, operation, and maintenance of
equipment which is installed in order to supply such excess consumption,
administrative and overhead costs incurred in connection with such excess
consumption, and the cost of the increased wear and tear on existing equipment
caused by such excess consumption; and Landlord may install devices to
separately meter any increased use and in such event Tenant shall pay the
increased cost directly to Landlord, within ten (10) days after demand,
including the cost of such additional metering devices. If Tenant desires to use
HVAC during hours other than the Building Hours, (i) Tenant shall give Landlord
such prior notice, as Landlord shall from time to time establish as appropriate,
of Tenant's desired use, (ii) Landlord shall supply such after-hours HVAC to
Tenant at such hourly cost (which shall include, without limitation, the cost of
the use of such HVAC, administrative and overhead charges, and the cost of
maintenance and increased wear and tear on equipment used to provide such
after-hours HVAC) to Tenant as Landlord shall from time to time establish, and
(iii) Tenant shall pay such cost within ten (10) days after billing.
6.3 INTERRUPTION OF USE. Tenant agrees that Landlord shall not be liable
for damages, by abatement of Rent or otherwise, for failure to furnish or delay
in furnishing any service (including telephone and telecommunication services),
or for any diminution in the quality or quantity thereof, when such failure or
delay or diminution is occasioned, in whole or in part, by repairs,
replacements, or improvements, by any strike, lockout or other labor trouble, by
inability to secure electricity, gas, water, or other fuel at the Building after
reasonable effort to do so, by any accident or casualty whatsoever, by act or
default of Tenant or other parties, or by any other cause beyond Landlord's
reasonable control; and such failures or delays or diminution shall never be
deemed to constitute an eviction or disturbance of Tenant's use and possession
of the Premises or relieve Tenant from paying Rent or performing any of its
obligations under this Lease. Furthermore, Landlord shall not be liable under
any circumstances for a loss of, or injury to, property or for injury to, or
interference with, Tenant's business, including, without
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limitation, loss of profits, however occurring, through or in connection with or
incidental to a failure to furnish any of the services or utilities as set forth
in this Article 6.
6.4 ADDITIONAL SERVICES. Landlord shall also have the exclusive right, but
not the obligation, to provide any additional services which may be required by
Tenant, including, without limitation, locksmithing, additional janitorial
service, and additional repairs and maintenance, provided that Tenant shall pay
to Landlord, within ten (10) days after billing, the sum of all costs to
Landlord of such additional services plus an administration fee. Charges for any
utilities or service for which Tenant is required to pay from time to time
hereunder, shall be deemed Additional Rent hereunder and shall be billed on a
monthly basis.
ARTICLE 7
REPAIRS
7.1 TENANT'S REPAIRS. Subject to Landlord's repair obligations in Sections
7.2 and 11.1 below, Tenant shall, at Tenant's own expense, keep the Premises,
including all improvements, fixtures and furnishings therein, in good order,
repair and condition at all times during the Lease Term, which repair
obligations shall include, without limitation, the obligation to promptly and
adequately repair all damage to the Premises and replace or repair all damaged
or broken fixtures and appurtenances; provided however, that, at Landlord's
option, or if Tenant fails to make such repairs, Landlord may, but need not,
make such repairs and replacements, and Tenant shall pay Landlord the cost
thereof, including a percentage of the cost thereof (to be uniformly established
for the Building) sufficient to reimburse Landlord for all overhead, general
conditions, fees and other costs or expenses arising from Landlord's involvement
with such repairs and replacements forthwith upon being billed for same.
7.2 LANDLORD'S REPAIRS. Anything contained in Section 7.1 above to the
contrary notwithstanding, and subject to Articles 11 and 12 of this Lease,
Landlord shall repair and maintain the structural portions of the Building and
the basic plumbing, heating, ventilating, air conditioning and electrical
systems serving the Building and not located in the Premises; provided, however,
if such maintenance and repairs are caused in part or in whole by the act,
neglect, fault of or omission of any duty by Tenant, its agents, contractors,
employees, licenses or invitees (and, to the extent that such damage is not
covered by Landlord's insurance), Tenant shall pay to Landlord, as additional
rent, the reasonable cost of such maintenance and repairs. Landlord shall not be
liable to Tenant for any failure to make any such repairs, or to perform any
maintenance hereunder, and there shall be no abatement of Rent and no liability
of Landlord by reason of any injury to or interference with Tenant's business
arising from the making of a failure to make any repairs, alterations or
improvements in or to any portion of the Premises or Project or in or to
fixtures, appurtenances and equipment therein, except to the extent caused by
the gross negligence or willful misconduct of Landlord. Landlord may, but shall
not be required to, enter the Premises at all reasonable times to make any
repairs, alterations, improvements or additions to the Premises or to the
Project or to any equipment located in the Project as Landlord shall desire or
deem necessary or as Landlord may be required to do by governmental or
quasi-governmental authority or court order or decree. Tenant hereby waives and
releases its right to make repairs at Landlord's expense under any law, statute,
or ordinance now or hereafter in effect.
ARTICLE 8
ADDITIONS AND ALTERATIONS
8.1 LANDLORD'S CONSENT TO ALTERATIONS. Tenant may not make any
improvements, alterations, additions or changes to the Premises (collectively,
the "ALTERATIONS") without first procuring the prior written consent of Landlord
to such Alterations, which consent shall be requested by Tenant not less than
thirty (30) days prior to the commencement thereof, and which consent shall not
be unreasonably withheld by Landlord; provided, however, Landlord may withhold
its consent in its sole and absolute discretion with respect to any Alterations
which (i) may affect the structural components of the Building, or the
Building's mechanical, electrical, heating, ventilating, air-conditioning, or
life safety
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systems, or (ii) are visible from outside the Premises. Notwithstanding the
foregoing, Tenant may make strictly cosmetic changes to the finish work in the
Premises, not requiring any structural or other substantial modifications to the
Premises, or changes costing less than of Five Thousand Dollars ($5,000) for any
one work of improvement, or in excess of Five Thousand Dollars ($5,000) in the
aggregate for multiple works of improvement during any period of twelve (12)
consecutive months during the Lease Term (a "PERMITTED ALTERATION"), upon thirty
(30) days prior written notice to Landlord. The construction of the initial
improvements to the Premises shall be governed by the terms of the Tenant Work
Letter, attached hereto as EXHIBIT D, and not the terms of this Article 8.
8.2 MANNER OF CONSTRUCTION. Landlord may impose, as a condition of its
consent to any and all Alterations or repairs of the Premises or about the
Premises, such requirements as Landlord in its sole discretion may deem
desirable, including, but not limited to, the requirement that upon Landlord's
request, Tenant shall, at Tenant's expense, remove such Alterations upon the
expiration or any early termination of the Lease Term (upon Tenant's request,
Landlord shall specify, at the time of its consent, which Alteration, if any,
must be removed upon expiration or early termination of the Lease Term), and/or
the requirement that Tenant utilize for such purposes only contractors,
materials, mechanics and materialmen approved by Landlord. Tenant shall
construct such Alterations and perform such repairs in conformance with any and
all applicable rules and regulations of any federal, state, county or municipal
code or ordinance and pursuant to a valid building permit, issued by the City of
San Diego in conformance with Landlord's construction rules and regulations. All
work with respect to any Alterations must be done in a good and workmanlike
manner and diligently prosecuted to completion to the end that the Premises
shall at all times be a complete unit except during the period of work. In
performing the work of any such Alterations, Tenant shall have the work
performed in such manner as not to obstruct access to the Building or Project or
the common areas by any other tenant of the Project, and as not to obstruct the
business of Landlord or other tenants in the Project, or interfere with the
labor force working in the Project. If Tenant makes any Alterations, Tenant
agrees to carry "Builder's All Risk" insurance in an amount approved by Landlord
covering the construction of such Alterations, and such other insurance as
Landlord may require, it being understood and agreed that all of such
Alterations shall be insured by Tenant pursuant to Article 10 of this Lease
immediately upon completion thereof. In addition, Landlord may, in its
discretion, require Tenant to obtain a lien and completion bond or some
alternate form of security satisfactory to Landlord in an amount sufficient to
ensure the lien-free completion of such Alterations and naming Landlord as a
co-obligee. Upon completion of any Alterations, Tenant shall (i) cause a timely
Notice of Completion to be recorded in the office of the Recorder of San Diego
County in accordance with the terms of Section 3093 of the Civil Code of the
State of California or any successor statute, (ii) deliver to the Project
management office a reproducible copy of the "as built" drawings of the
Alterations, and (iii) deliver to Landlord evidence of payment, contractors'
affidavits and full and final waivers of all liens for labor, services or
materials.
8.3 PAYMENT FOR ALTERATIONS. If Tenant orders any Alterations or repair
work directly from Landlord, Tenant shall pay to Landlord, within ten (10) days
after demand, all charges for such work, including a percentage of the cost of
such work (such percentage to be established on a uniform basis for the
Building) sufficient to compensate Landlord for all overhead, general
conditions, fees and other costs and expenses arising from Landlord's
involvement with such work. If Tenant does not order any work directly from
Landlord, Tenant shall reimburse Landlord, within ten (10) days after demand,
for Landlord's out-of-pocket costs and expenses incurred in connection with
Landlord's review of such work, plus a Landlord administrative fee equal to five
percent (5%) of the total cost of such work.
8.4 LANDLORD'S PROPERTY. All Alterations, improvements and fixtures which
may be installed or placed in or about the Premises, and all signs installed in,
on or about the Premises, from time to time, shall be at the sole cost of Tenant
and shall be and become the property of Landlord; provided, however, that Tenant
may remove those improvements that Tenant can substantiate were not paid for
with any Tenant improvement funds provided to Tenant by Landlord.
Notwithstanding the foregoing, Landlord may, by written notice to Tenant at the
time Landlord (i) grants its consent to an Alteration, or (ii) is notified by
Tenant of a Permitted Alteration, notify Tenant as to whether it shall require
Tenant at Tenant's expense to remove any Alterations from the Premises and
repair any damage to the Premises and
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Building caused by such removal upon termination of this Lease. If Tenant fails
to complete such removal prior and/or to repair any damage caused by the removal
of any Alterations by the end of the Lease Term, Landlord may do so and may
charge the cost thereof to Tenant.
ARTICLE 9
COVENANT AGAINST LIENS
Tenant has no authority or power to cause or permit any lien or
encumbrance of any kind whatsoever, whether created by act of Tenant, operation
of law or otherwise, to attach to or be placed upon the Real Property or any
portion thereof, and any and all liens and encumbrances created by Tenant shall
attach to Tenant's interest only. Landlord shall have the right at all times to
post and keep posted on the Premises any notice which it deems necessary for
protection from such liens. Tenant covenants and agrees not to suffer or permit
any lien of mechanics or materialmen or others to be placed against the Real
Property or any portion thereof, with respect to work or services claimed to
have been performed for or materials claimed to have been furnished to Tenant or
the Premises, and, in case of any such lien attaching or notice of any lien,
Tenant covenants and agrees to cause it to be immediately released and removed
of record. Notwithstanding anything to the contrary set forth in this Lease, in
the event that such lien is not released and removed on or before the date
occurring five (5) days after notice of such lien is delivered by Landlord to
Tenant, Landlord, at its sole option, may immediately take all action necessary
to release and remove such lien, without any duty to investigate the validity
thereof, and all sums, costs and expenses, including reasonable attorneys' fees
and costs, incurred by Landlord in connection with such lien shall be deemed
Additional Rent under this Lease and shall immediately be due and payable by
Tenant.
ARTICLE 10
INSURANCE
10.1 INDEMNIFICATION AND WAIVER. Except as due to the gross negligence or
willful misconduct of Landlord or Landlord Parties (as hereinafter defined),
Tenant hereby assumes all risk of damage to property and injury to persons in,
on or about the Premises from any cause whatsoever, and agrees that, to the
extent not prohibited by law, Landlord, its partners and subpartners, and their
respective officers, directors, shareholders, agents, property managers,
employees and independent contractors (collectively, the "LANDLORD PARTIES")
shall not be liable for, and are hereby released from any responsibility for,
any damage either to person or property or resulting from the loss of use
thereof, which damage is sustained by Tenant or by other persons claiming
through Tenant. Tenant shall indemnify, defend, protect and hold harmless the
Landlord Parties from and against any and all loss, cost, damage, expense, cause
of action, claims and liability, including without limitation court costs and
reasonable attorneys' fees (collectively "CLAIMS") incurred in connection with
or arising from (a) any cause in, on or about the Premises, (b) any acts,
omissions or negligence of Tenant or of any person claiming by, through or under
Tenant, or of the contractors, agents, employees, licensees or invitees of
Tenant or any such person in, on or about the Real Property, and (c) any cause
relating to the Nitrogen Tank (as hereinafter defined); provided that the terms
of the foregoing indemnity shall not apply to: (i) any Claims to the extent
resulting from the gross negligence or willful misconduct of Landlord or the
Landlord Parties; or (ii) any loss of or damage to Landlord's property to the
extent Landlord has waived such loss or damage pursuant to Section 10.4 below.
Tenant's agreement to indemnify Landlord pursuant to this Section 10.1 is not
intended and shall not relieve any insurance carrier of its obligations under
policies required to be carried by Tenant pursuant to the provision of this
Lease. The provisions of this Section 10.1 shall survive the expiration or
sooner termination of this Lease with respect to any Claims occurring prior to
such expiration or termination.
10.2 TENANT'S COMPLIANCE WITH LANDLORD'S FIRE AND CASUALTY INSURANCE.
Tenant shall, at Tenant's expense, comply with all insurance company
requirements pertaining to the use of the Premises. If Tenant's conduct or use
of the Premises causes any increase in the premium for any insurance policies
carried by Landlord, then Tenant shall reimburse Landlord for any such increase.
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Tenant, at Tenant's expense, shall comply with all rules, orders, regulations or
requirements of the American Insurance Association (formerly the National Board
of Fire Underwriters) and with any similar body.
10.3 TENANT'S INSURANCE. Tenant shall maintain the following coverages in
the following amounts at all times following the date (the "INSURANCE START
DATE") which is the earlier of (i) Tenant's entry into the Premises to perform
any work therein, or (ii) the Lease Commencement Date, and continuing thereafter
throughout the Lease Term:
10.3.1 Commercial General Liability Insurance covering the insured
against claims of bodily injury, personal injury and property damage arising out
of Tenant's operations, assumed liabilities or use of the Premises, including a
Commercial General Liability endorsement covering the insuring provisions of
this Lease and the performance by Tenant of the indemnity agreements set forth
in Section 10.1 of this Lease, for limits of liability not less than: (i) Bodily
Injury and Property Damage Liability - $2,000,000 each occurrence and $2,000,000
annual aggregate, and (ii) Personal Injury Liability - $2,000,000 each
occurrence and $2,000,000 annual aggregate.
10.3.2 Physical Damage Insurance covering (i) all office furniture,
trade fixtures, office equipment, merchandise and all other items of Tenant's
property on the Premises installed by, for, or at the expense of Tenant, (ii)
the "Tenant Improvements," as that term is defined in the Tenant Work Letter,
and (iii) all Alterations and other improvements and additions in and to the
Premises. Such insurance shall be written on an "all risks" of physical loss or
damage basis, for the guaranteed replacement cost value new without deduction
for depreciation of the covered items and in amounts that meet any co-insurance
clauses of the policies of insurance and shall include a vandalism and malicious
mischief endorsement, sprinkler leakage coverage and earthquake sprinkler
leakage coverage.
10.3.3 Business interruption, loss-of-income and extra-expense
insurance in such amounts as will reimburse Tenant for direct or indirect loss
of earnings attributable to all perils commonly insured against by prudent
tenants or attributable to prevention of access to the Premises or to the
Building as a result of such perils.
10.3.4 The minimum limits of policies of insurance required of
Tenant under this Lease shall in no event limit the liability of Tenant under
this Lease. Such insurance shall: (i) name Landlord, and any other party it so
specifies, as an additional insured; (ii) specifically cover the liability
assumed by Tenant under this Lease, including, but not limited to, Tenant's
obligations under Section 10.1 of this Lease; (iii) be issued by an insurance
company having a rating of not less than A-X in Best's Insurance Guide or which
is otherwise acceptable to Landlord and licensed to do business in the State of
California; (iv) be primary insurance as to all claims thereunder and provide
that any insurance carried by Landlord is excess and is non-contributing with
any insurance requirement of Tenant; (v) provide that said insurance shall not
be canceled or coverage changed unless thirty (30) days' prior written notice
shall have been given to Landlord and any mortgagee of Landlord; and (vi)
contain a cross-liability endorsement or severability of interest clause
acceptable to Landlord. Tenant shall deliver said policy or policies or
certificates thereof to Landlord on or before the Insurance Start Date and at
least thirty (30) days before the expiration dates thereof. In the event Tenant
shall fail to procure such insurance, or to deliver such certificate, Landlord
may, at its option, procure such policies for the account of Tenant, and the
costs of it shall be paid to Landlord as Additional Rent within five (5) days
after delivery to Tenant of bills therefor.
10.4 SUBROGATION. Landlord and Tenant agree to have their respective
insurance companies issuing property damage, loss of income and/or rental
interruption and extra expense insurance waive any rights of subrogation that
such companies may have against Landlord or Tenant, as the case may be, so long
as the insurance carried by such party is not invalidated thereby. Landlord and
Tenant hereby waive any right that either may have against the other on account
of any loss or damage to their respective property to the extent such loss or
damage is insured under property damage insurance policies carried by the
waiving party under this Lease (or would have been covered had the waiving party
maintained such insurance as so required under this Lease). If either party
fails to carry the amounts and
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types of insurance required to be carried by it pursuant to this Article 10, in
addition to any remedies the other party may have under this Lease, such failure
shall be deemed to be a covenant and agreement by such party to self-insure with
respect to the type and amount of insurance which such party so failed to carry,
with full waiver of subrogation with respect thereto.
10.5 ADDITIONAL INSURANCE OBLIGATIONS. Tenant shall carry and maintain
during the entire Lease Term, at Tenant's sole cost and expense, increased
amounts of the insurance required to be carried by Tenant pursuant to this
Article 10, and such other reasonable types of insurance coverage and in such
reasonable amounts covering the Premises and Tenant's operations therein, as may
be reasonably requested by Landlord, but in no event shall such increased
amounts of insurance or such other reasonable types of insurance be in excess of
that required by landlords of comparable Class "A" buildings located in the area
in which the Project is located.
10.6 LANDLORD'S INSURANCE. During the Term, Landlord shall maintain
casualty insurance covering the Building (excluding the property which Tenant is
obligated to insure pursuant to the terms hereof). Such insurance shall provide
protection against any peril generally included within the classification "Fire
and Extended Coverage." Landlord shall also maintain comprehensive general
liability and property damage insurance with respect to the operation of the
Building. Such insurance shall be in such amounts and with such deductibles as
Landlord reasonably deems appropriate. Landlord may, but shall not be obligated
to, obtain and carry any other form or forms of insurance as it or Landlord's
mortgagees or deed of trust beneficiaries may determine advisable.
Notwithstanding any contribution by Tenant to the cost of insurance premiums as
provided in this Lease, Tenant acknowledges that it has no right to receive any
proceeds from any insurance policies maintained by Landlord and will not be
named as an additional insured thereunder.
ARTICLE 11
DAMAGE AND DESTRUCTION
11.1 REPAIR OF DAMAGE TO PREMISES BY LANDLORD. Tenant shall promptly
notify Landlord of any damage to the Premises resulting from fire or any other
casualty or any condition existing in the Premises as a result of a fire or
other casualty that would give rise to the terms of this Article 11. If the
Premises or any common areas of the Project serving or providing access to the
Premises shall be damaged by fire or other casualty or be subject to a condition
existing as a result of a fire or other casualty, Landlord shall promptly and
diligently, subject to reasonable delays for insurance adjustment or other
matters beyond Landlord's reasonable control, and subject to all other terms of
this Article 11, restore the base, shell, and core of the Premises and such
common areas to substantially the same condition as existed prior to the
casualty, except for modifications required by zoning and building codes and
other laws or by the holder of a mortgage on the Project (or any portion
thereof) or any other modifications to the common areas deemed desirable by
Landlord, provided that access to the Premises and any common restrooms serving
the Premises shall not be materially impaired. Notwithstanding any other
provision of this Lease, upon the occurrence of any damage to the Premises,
Tenant shall assign to Landlord (or to any party designated by Landlord) all
insurance proceeds payable to Tenant under Tenant's insurance required under
Sections 10.3.2(ii) and 10.3.2(iii) of this Lease, and Landlord shall repair any
injury or damage to the Tenant Improvements and Alterations installed in the
Premises and shall return such Tenant Improvements and Alterations to their
original condition; provided that if the cost of such repair by Landlord exceeds
the amount of insurance proceeds received by Landlord from Tenant's insurance
carrier, as assigned by Tenant, the cost of such repairs shall be paid by Tenant
to Landlord prior to Landlord's repair of the damage. In connection with such
repairs and replacements, Tenant shall, prior to the commencement of
construction, submit to Landlord, for Landlord's review and approval, all plans,
specifications and working drawings relating thereto, and Landlord shall select
the contractors to perform such improvement work. Landlord shall not be liable
for any inconvenience or annoyance to Tenant or its visitors, or injury to
Tenant's business resulting in any way from such damage or the repair thereof;
provided however, that if such fire or other casualty shall have damaged the
Premises or common areas necessary to Tenant's occupancy, and if such damage is
not the result of the negligence or willful misconduct of Tenant or Tenant's
agents, employees, contractors, licensees or
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invitees, Landlord shall allow Tenant a proportionate abatement of Base Rent
during the time and to the extent the Premises are unfit for occupancy for the
purposes permitted under this Lease, and not occupied by Tenant as a result
thereof.
11.2 LANDLORD'S OPTION TO REPAIR. Notwithstanding the terms of Section
11.1 of this Lease, Landlord may elect not to rebuild and/or restore the
Premises and/or Building and/or any other portion of the Project and instead
terminate this Lease by notifying Tenant in writing of such termination within
sixty (60) days after the date of damage, such notice to include a termination
date giving Tenant ninety (90) days to vacate the Premises, but Landlord may so
elect only if the Project shall be damaged by fire or other casualty or cause or
be subject to a condition existing as a result of such a fire or other casualty
or cause, whether or not the Premises are affected, and one or more of the
following conditions is present: (i) repairs cannot reasonably be completed
within one hundred eighty (180) days of the date of damage (when such repairs
are made without the payment of overtime or other premiums); (ii) the holder of
any mortgage on the Real Property or ground lessor with respect to the Real
Property shall require that the insurance proceeds or any portion thereof be
used to retire the mortgage debt, or shall terminate the ground lease, as the
case may be; or (iii) the damage or condition arising as a result of such damage
is not fully covered, except for deductible amounts, by Landlord's insurance
policies. In addition, if the Premises, the Building or any portion of the
Project is destroyed or damaged to any substantial extent during the last
eighteen (18) months of the Lease Term, then notwithstanding anything contained
in this Article 11, Landlord shall have the option to terminate this Lease by
giving written notice to Tenant of the exercise of such option within thirty
(30) days after such damage or destruction, in which event this Lease shall
cease and terminate as of the date of such notice. Upon such termination of this
Lease pursuant to this Section 11.2, Tenant shall pay the Base Rent and
Additional Rent, properly apportioned up to such date of damage (subject to any
abatement as provided in Section 11.1 above), and both parties hereto shall
thereafter be freed and discharged of all further obligations hereunder, except
as provided for in provisions of this Lease which by their terms survive the
expiration or earlier termination of this Lease Term.
11.3 WAIVER OF STATUTORY PROVISIONS. The provisions of this Lease,
including this Article 11, constitute an express agreement between Landlord and
Tenant with respect to any and all damage to, or destruction of, all or any part
of the Real Property, and any statute or regulation of the State of California,
including, without limitation, Sections 1932(2) and 1933(4) of the California
Civil Code, with respect to any rights or obligations concerning damage or
destruction in the absence of an express agreement between the parties, and any
other statute or regulation, now or hereafter in effect, shall have no
application to this Lease or any damage or destruction to all or any part of the
Real Property.
ARTICLE 12
CONDEMNATION
If ten percent (10%) or more of the Premises or Project shall be taken by
power of eminent domain or condemned by any competent authority for any public
or quasi-public use or purpose, or if Landlord shall grant a deed or other
instrument in lieu of such taking by eminent domain or condemnation, Landlord
shall have the option to terminate this Lease upon ninety (90) days' notice to
Tenant, provided such notice is given no later than one hundred eighty (180)
days after the date of such taking, condemnation, reconfiguration, vacation,
deed or other instrument. If more than twenty-five percent (25%) of the rentable
square feet of the Premises is taken, or if access to the Premises is
substantially impaired as a result of any taking of all or any portion of the
Project, Tenant shall have the option to terminate this Lease upon ninety (90)
days' notice to Landlord, provided such notice is given no later than one
hundred eighty (180) days after the date of such taking. Landlord shall be
entitled to receive the entire award or payment in connection therewith, except
that Tenant shall have the right to file any separate claim available to Tenant
for any taking of Tenant's personal property and fixtures belonging to Tenant
and removable by Tenant upon expiration of the Lease Term pursuant to the terms
of this Lease, and for moving expenses, so long as such claim does not diminish
the award available to Landlord, its ground lessor with respect to the Real
Property or its mortgagee, and such claim is payable separately to Tenant. All
Rent shall be apportioned as of the date of such termination, or the date of
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taking, whichever shall first occur. If any part of the Premises shall be taken,
and this Lease shall not be so terminated, the Base Rent shall be
proportionately abated. Tenant hereby waives any and all rights it might
otherwise have pursuant to Section 1265.130 of the California Code of Civil
Procedure.
ARTICLE 13
COVENANT OF QUIET ENJOYMENT
Landlord covenants that Tenant, on paying the Rent, charges for services
and other payments herein reserved and on keeping, observing and performing all
the other terms, covenants, conditions, provisions and agreements herein
contained on the part of Tenant to be kept, observed and performed, shall,
during the Lease Term, peaceably and quietly have, hold and enjoy the Premises
subject to the terms, covenants, conditions, provisions and agreements hereof
without interference by any persons lawfully claiming by or through Landlord.
The foregoing covenant is in lieu of any other covenant express or implied.
ARTICLE 14
ASSIGNMENT AND SUBLETTING
14.1 TRANSFERS. Tenant shall not, without the prior written consent of
Landlord, assign, mortgage, pledge, hypothecate, encumber, or permit any lien to
attach to, or otherwise transfer, this Lease or any interest hereunder, permit
any assignment or other such foregoing transfer of this Lease or any interest
hereunder by operation of law, sublet the Premises or any part thereof, or
permit the use of the Premises by any persons other than Tenant and its
employees (all of the foregoing are hereinafter sometimes referred to
collectively as "TRANSFERS" and any person to whom any Transfer is made or
sought to be made is hereinafter sometimes referred to as a "TRANSFEREE"). If
Tenant shall desire Landlord's consent to any Transfer, Tenant shall notify
Landlord in writing, which notice (the "TRANSFER NOTICE") shall include (i) the
proposed effective date of the Transfer, which shall not be less than forty-five
(45) days nor more than one hundred eighty (180) days after the date of delivery
of the Transfer Notice, (ii) a description of the portion of the Premises to be
transferred (the "SUBJECT SPACE"), (iii) all of the terms of the proposed
Transfer and the consideration therefor, including a calculation of the
"Transfer Premium," as that term is defined in Section 14.3, below, in
connection with such Transfer, the name and address of the proposed Transferee,
and a copy of all existing and/or proposed documentation pertaining to the
proposed Transfer, including all existing operative documents to be executed to
evidence such Transfer or the agreements incidental or related to such Transfer,
(iv) current financial statements of the proposed Transferee certified by an
officer, partner or owner thereof, and (v) such other information as Landlord
may reasonably require. Any Transfer made without Landlord's prior written
consent shall, at Landlord's option, be null, void and of no effect, and shall,
at Landlord's option, constitute a default by Tenant under Section 19.1.7 of
this Lease. Whether or not Landlord consents to any proposed Transfer, Tenant
shall pay Landlord's review and processing fees, as well as any reasonable legal
fees incurred by Landlord, within thirty (30) days after written request by
Landlord.
14.2 LANDLORD'S CONSENT. Subject to Landlord's rights in Section 14.4
below, Landlord shall not unreasonably withhold or delay its consent to any
proposed Transfer of the Subject Space to the Transferee on the terms specified
in the Transfer Notice. The parties hereby agree that it shall be deemed to be
reasonable under this Lease and under any applicable law for Landlord to
withhold consent to any proposed Transfer where one or more of the following
apply, without limitation as to other reasonable grounds for withholding
consent:
14.2.1 The Transferee is of a character or reputation or engaged in
a business which is not consistent with the quality of the Project, or would be
a significantly less prestigious occupant of the Building than Tenant;
14.2.2 The Transferee's intended use of the Subject Space is not
permitted under this Lease;
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14.2.3 The Transfer will result in more than a reasonable and safe
number of occupants per floor within the Subject Space;
14.2.4 The Transferee is a governmental entity or agency;
14.2.5 The Transferee is not a party of reasonable financial worth
and/or financial stability in light of the responsibilities involved under the
Lease on the date consent is requested;
14.2.6 The proposed Transfer would cause Landlord to be in violation
of another lease or agreement to which Landlord is a party, or would give an
occupant of the Project a right to cancel its lease;
14.2.7 The terms of the proposed Transfer will allow the Transferee
to exercise a right of renewal, right of expansion, right of first offer, or
other similar right held by Tenant (or will allow the Transferee to occupy space
leased by Tenant pursuant to any such right); or
14.2.8 Either the proposed Transferee, or any person or entity which
directly or indirectly, controls, is controlled by, or is under common control
with, the proposed Transferee, (i) occupies space in the Project at the time of
the request for consent, (ii) is negotiating with Landlord to lease space in the
Project at such time, or (iii) has negotiated with Landlord during the twelve
(12)-month period immediately preceding the Transfer Notice.
If Landlord consents to any Transfer pursuant to the terms of this Section
14.2 (and does not exercise any recapture rights Landlord may have under Section
14.4 of this Lease), Tenant may within six (6) months after Landlord's consent,
but not later than the expiration of said six (6)-month period, enter into such
Transfer of the Premises or portion thereof, upon substantially the same terms
and conditions as are set forth in the Transfer Notice furnished by Tenant to
Landlord pursuant to Section 14.1 of this Lease, provided that if there are any
changes in the terms and conditions from those specified in the Transfer Notice
(i) such that Landlord would initially have been entitled to refuse its consent
to such Transfer under this Section 14.2, or (ii) which would cause the proposed
Transfer to be more favorable to the Transferee than the terms set forth in
Tenant's original Transfer Notice, Tenant shall again submit the Transfer to
Landlord for its approval and other action under this Article 14 (including
Landlord's right of recapture, if any, under Section 14.4 of this Lease).
Notwithstanding any contrary provisions of this Lease, if Tenant or any proposed
Transferee claims that Landlord has unreasonably withheld or delayed its consent
to a proposed Transfer or otherwise has breached its obligations under this
Article, Tenant's and such Transferee's only remedy shall be to seek a
declaratory judgment and/or injunctive relief, and Tenant, on behalf of itself
and, to the extent permitted by law, such proposed Transferee, waives all other
remedies against Landlord, including without limitation, the right to seek
monetary damages or terminate this Lease.
14.3 TRANSFER PREMIUM.
14.3.1 DEFINITION OF TRANSFER PREMIUM. If Landlord consents to a
Transfer, as a condition thereto which the parties hereby agree is reasonable,
Tenant shall pay to Landlord fifty percent (50%) of the "Transfer Premium," as
that term is defined in this Section 14.3, received by Tenant from such
Transferee. "TRANSFER PREMIUM" shall mean all rent, additional rent or other
consideration payable by such Transferee in connection with the Transfer which
is in excess of the Rent payable by Tenant under this Lease during the term of
the Transfer, on a per rentable square foot basis if less than all of the
Premises is transferred, after deducting the reasonable expenses incurred by
Tenant for (i) any changes, alterations and improvements to the Premises in
connection with the Transfer, and (ii) any brokerage commissions and third party
legal fees in connection with the Transfer (collectively, the "SUBLEASING
COSTS"). "Transfer Premium" shall also include, but not be limited to, key money
and bonus money paid by Transferee to Tenant in connection with such Transfer,
and any payment in excess of fair market value for services rendered by Tenant
to Transferee or for assets, fixtures, inventory, equipment, or furniture
transferred by Tenant to Transferee in connection with such Transfer.
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14.3.2 PAYMENT OF TRANSFER PREMIUMS. The determination of the amount
of the Transfer Premium shall be made on an annual basis in accordance with the
terms of this Section 14.3.2, but an estimate of the amount of the Transfer
Premium shall be made each month and one-twelfth of such estimated amount shall
be paid to Landlord promptly, but in no event later than the next date for
payment of Base Rent hereunder, subject to an annual reconciliation on each
anniversary date of the Transfer. If the payments to Landlord under this Section
14.3.2 during the twelve (12) months preceding each annual reconciliation exceed
the amount of Transfer Premium determined on an annual basis, then Landlord
shall credit the overpayment against Tenant's future obligations under this
Section 14.3.2 or if the overpayment occurs during the last year of the Transfer
in question, refund the excess to Tenant. If Tenant has underpaid the Transfer
Premium, as determined by such annual reconciliation, Tenant shall pay the
amount of such deficiency to Landlord promptly, but in no event later than the
next date for payment of Basic Rent hereunder. For purposes of calculating the
Transfer Premium on an annual basis, Tenant's Subleasing Costs shall be deemed
to be offset against the first rent, additional rent or other consideration
payable by the Transferee, until such Subleasing Costs are exhausted.
14.3.3 CALCULATIONS OF RENT. In the calculation of the Rent, as it
relates to the Transfer Premium calculated under Section 14.3.1 above, the Rent
paid during each annual period for the Subject Space by Tenant, shall be
computed after adjusting such rent to the actual effective rent to be paid,
taking into consideration any and all leasehold concessions granted in
connection therewith, including, but not limited to, any rent credit and tenant
improvement allowance. For purposes of calculating any such effective rent, all
such concessions shall be amortized on a straight-line basis over the relevant
term.
14.4 LANDLORD'S OPTION AS TO SUBJECT SPACE. Notwithstanding anything to
the contrary contained in this Article 14, in the event that the Transfer
involves a Transfer of less than the entire Premises, Landlord shall have the
option, by giving written notice to Tenant within thirty (30) days after receipt
of any Transfer Notice, to recapture the Subject Space. Such recapture notice
shall cancel and terminate this Lease with respect to the Subject Space as of
the date stated in the Transfer Notice as the effective date of the proposed
Transfer. If this Lease shall be canceled with respect to less than the entire
Premises, the Rent reserved herein shall be prorated on the basis of the number
of rentable square feet retained by Tenant in proportion to the number of
rentable square feet contained in the Premises, and this Lease as so amended
shall continue thereafter in full force and effect, and upon request of either
party, the parties shall execute written confirmation of the same. If Landlord
declines, or fails to elect in a timely manner to recapture the Subject Space
under this Section 14.4, then, provided Landlord has consented to the proposed
Transfer, Tenant shall be entitled to proceed to transfer the Subject Space to
the proposed Transferee, subject to provisions of the last paragraph of Section
14.2 of this Lease.
14.5 EFFECT OF TRANSFER. If Landlord consents to a Transfer, (i) the terms
and conditions of this Lease shall in no way be deemed to have been waived or
modified, (ii) such consent shall not be deemed consent to any further Transfer
by either Tenant or a Transferee, (iii) Tenant shall deliver to Landlord,
promptly after execution, an original executed copy of all documentation
pertaining to the Transfer in form reasonably acceptable to Landlord, (iv)
Tenant shall furnish upon Landlord's request a complete statement, certified by
an independent certified public accountant, or Tenant's chief financial officer,
setting forth in detail the computation of any Transfer Premium Tenant has
derived and shall derive from such Transfer, and (v) no Transfer relating to
this Lease or agreement entered into with respect thereto, whether with or
without Landlord's consent, shall relieve Tenant or any guarantor of the Lease
from liability under this Lease. Landlord or its authorized representatives
shall have the right at all reasonable times to audit the books, records and
papers of Tenant relating to any Transfer, and shall have the right to make
copies thereof. If the Transfer Premium with respect to any Transfer shall be
found understated, Tenant shall, within thirty (30) days after demand, pay the
deficiency and Landlord's costs of such audit and if understated by more than
ten percent (10%), Landlord shall have the right to cancel this Lease upon
thirty (30) days' notice to Tenant.
14.6 ADDITIONAL TRANSFERS. For purposes of this Lease, the term "Transfer"
shall also include (i) if Tenant is a partnership, the withdrawal or change,
voluntary, involuntary or by operation of law, of
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twenty-five percent (25%) or more of the partners, or transfer of twenty-five
percent or more of partnership interests, within a twelve (12)-month period, or
the dissolution of the partnership without immediate reconstitution thereof, and
(ii) if Tenant is a closely held corporation (i.e., whose stock is not publicly
held and not traded through an exchange or over the counter), (A) the
dissolution, merger, consolidation or other reorganization of Tenant, or (B) the
sale or other transfer of more than an aggregate of twenty-five percent (25%) of
the voting shares of Tenant (other than to immediate family members by reason of
gift or death), within a twelve (12)-month period, or (C) the sale, mortgage,
hypothecation or pledge of more than an aggregate of twenty-five percent (25%)
of the value of the unencumbered assets of Tenant within a twelve (12) month
period.
14.7 PERMITTED TRANSFERS. Notwithstanding anything to the contrary
contained in the Lease, Landlord's consent shall not be required for any
assignment of this Lease or sublease of all or a portion of the Premises to an
Affiliate of Tenant (as defined below) so long as the following conditions are
met: (i) at least thirty (30) business days before any such assignment or
sublease, Landlord receives written notice of such assignment or sublease (as
well as any documents or information reasonably requested by Landlord regarding
the proposed intended transfer and the transferee); (ii) Tenant is not then in
default under this Lease; (iii) if the transfer is an assignment or any other
transfer to an Affiliate other than a sublease, the intended assignee assumes in
writing all of Tenant's obligations under this Lease relating to the Premises in
a form satisfactory to Landlord or, if the transfer is a sublease, the intended
sublessee accepts the sublease in form satisfactory to Landlord; (iv) the
intended transferee has a tangible net worth, as evidenced by financial
statements delivered to Landlord and certified by an independent certified
public accountant in accordance with generally accepted accounting principles
that are consistently applied, at least equal to the net worth of the original
Tenant under the Lease as of the Effective Date; (v) the Premises shall continue
to be operated solely for the use specified in the Lease; and (vi) Tenant shall
pay to Landlord all costs reasonably incurred by Landlord or any mortgagee or
ground lessor for such assignment or subletting, including, without limitation,
reasonable attorneys' fees. No transfer to an Affiliate in accordance with this
subparagraph shall relieve Tenant named herein of any obligation under this
Lease or alter the primary liability of Tenant named herein for the payment of
Rent or for the performance of any other obligation to be performed by Tenant,
including the obligations contained in the Lease with respect to any Affiliate.
As used herein, an "AFFILIATE" means any entity that (i) controls, is controlled
by, or is under common control with Tenant; (ii) results from the transfer of
all or substantially all of Tenant's assets or stock; or (iii) results from the
merger or consolidation of Tenant with another entity. "CONTROL" means the
direct or indirect ownership of more than fifty percent (50%) of the voting
securities of an entity or possession of the right to vote more than fifty
percent (50%) of the voting interest in the ordinary direction of the entity's
affairs.
ARTICLE 15
SURRENDER OF PREMISES; REMOVAL OF TRADE FIXTURES
15.1 SURRENDER OF PREMISES. No act or thing done by Landlord or any agent
or employee of Landlord during the Lease Term shall be deemed to constitute an
acceptance by Landlord of a surrender of the Premises unless such intent is
specifically acknowledged in a writing signed by Landlord. The delivery of keys
to the Premises to Landlord or any agent or employee of Landlord shall not
constitute a surrender of the Premises or effect a termination of this Lease,
whether or not the keys are thereafter retained by Landlord, and notwithstanding
such delivery Tenant shall be entitled to the return of such keys at any
reasonable time upon request until this Lease shall have been terminated. The
voluntary or other surrender of this Lease by Tenant, whether accepted by
Landlord or not, or a mutual termination hereof, shall not work a merger, and at
the option of Landlord shall operate as an assignment to Landlord of all
subleases or subtenancies affecting the Premises.
15.2 REMOVAL OF TENANT PROPERTY BY TENANT. All articles of personal
property and all business and trade fixtures, machinery and equipment, furniture
and movable partitions owned by Tenant or installed by Tenant at its expense in
the Premises, which items are not a part of the tenant improvements installed in
the Premises, shall remain the property of Tenant, and may be removed by Tenant
at any time during the Lease Term. Upon the expiration of the Lease Term, or
upon any earlier
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termination of this Lease, Tenant shall, subject to the provisions of this
Article 15, quit and surrender possession of the Premises to Landlord in as good
order and condition as when Tenant took possession and as thereafter improved by
Landlord and/or Tenant, reasonable wear and tear and repairs which are
specifically made the responsibility of Landlord hereunder excepted. Upon such
expiration or termination, Tenant shall, without expense to Landlord, remove or
cause to be removed from the Premises all debris and rubbish, and such items of
furniture, equipment, free-standing cabinet work, and other articles of personal
property owned by Tenant or installed or placed by Tenant at its expense in the
Premises, and such similar articles of any other persons claiming under Tenant,
as Landlord may, in its sole discretion, require to be removed, and Tenant shall
repair at its own expense all damage to the Premises and Building resulting from
such removal.
15.3 REMOVAL OF TENANT'S PROPERTY BY LANDLORD. Whenever Landlord shall
re-enter the Premises as provided in this Lease, any personal property of Tenant
not removed by Tenant upon the expiration of the Lease Term, or within
forty-eight (48) hours after a termination by reason of Tenant's default as
provided in this Lease, shall be deemed abandoned by Tenant and may be disposed
of by Landlord in accordance with Sections 1980 through 1991 of the California
Civil Code and Section 1174 of the California Code of Civil Procedure, or in
accordance with any laws or judicial decisions which may supplement or supplant
those provisions from time to time.
15.4 LANDLORD'S ACTIONS ON PREMISES. In the event that Tenant has not
removed its personal property from the Premises upon the expiration of the Lease
Term, or within forty-eight (48) hours after a termination by reason of Tenant's
default as provided in this Lease, and Landlord elects to enter the Premises for
the purposes of removing, retaining, storing or selling the property of Tenant
as herein provided, then Tenant hereby waives, and releases Landlord from, all
claims for damages or other liability in connection with such entry by Landlord
or its agents or representatives, and Tenant hereby indemnifies and holds
Landlord harmless from any such damages or other liability, and no such re-entry
shall be considered or construed to be a forcible entry.
ARTICLE 16
HOLDING OVER
If Tenant holds over after the expiration of the Lease Term, with or
without the express or implied consent of Landlord, such tenancy shall be from
month-to-month only, and shall not constitute a renewal hereof or an extension
for any further term, and in such case Base Rent shall be payable at a monthly
rate equal to one hundred fifty percent (150%) of the Base Rent applicable
during the last rental period of the Lease Term under this Lease. Such
month-to-month tenancy shall be subject to every other applicable term, covenant
and agreement contained herein. Nothing contained in this Article 16 shall be
construed as consent by Landlord to any holding over by Tenant, and Landlord
expressly reserves the right to require Tenant to surrender possession of the
Premises to Landlord as provided in this Lease upon the expiration or other
termination of this Lease. The provisions of this Article 16 shall not be deemed
to limit or constitute a waiver of any other rights or remedies of Landlord
provided herein or at law. Tenant acknowledges that if Tenant holds over without
Landlord's consent, such holding over may compromise or otherwise affect
Landlord's ability to enter into new leases with prospective tenants regarding
the Premises. Therefore, if Tenant fails to surrender the Premises upon the
termination or expiration of this Lease, in addition to any other liabilities to
Landlord accruing therefrom, Tenant shall protect, defend, indemnify and hold
Landlord harmless from and against all Claims resulting from such failure,
including, without limiting the generality of the foregoing, any claims made by
any succeeding tenant founded upon such failure to surrender, and any losses
suffered by Landlord, including lost profits, resulting from such failure to
surrender.
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ARTICLE 17
ESTOPPEL CERTIFICATES
Within ten (10) days following a request in writing by Landlord, Tenant
shall execute and deliver to Landlord an estoppel certificate which, as
submitted by Landlord, shall be substantially in the form of EXHIBIT E, attached
hereto (or such other form as may be required by any prospective mortgagee or
purchaser of the Project or any portion thereof), indicating therein any
exceptions thereto that may exist at that time, and shall also contain any other
information reasonably requested by Landlord or Landlord's mortgagee or
prospective mortgagee or purchasers. Tenant shall execute and deliver whatever
other instruments may be reasonably required for such purposes. At any time
during the Lease Term, Landlord may require Tenant to provide Landlord with a
current financial statement and financial statements of the two (2) years prior
to the current financial statement year. Such statements shall be prepared in
accordance with generally accepted accounting principles and, if such is the
normal practice of Tenant, shall be audited by an independent certified public
accountant. Failure of Tenant to timely execute and deliver such estoppel
certificate or other instruments shall constitute an acceptance of the Premises
and an acknowledgment by Tenant that statements included in the estoppel
certificate are true and correct, without exception.
ARTICLE 18
SUBORDINATION
This Lease shall be subject and subordinate to all easement agreements and
covenants, conditions and restrictions recorded against the land underlying the
Project, and to all present and future ground or underlying leases of the Real
Property and to the lien of any mortgages or trust deeds, now or hereafter in
force against the Real Property, if any, and to all renewals, extensions,
modifications, consolidations and replacements thereof, and to all advances made
or hereafter to be made upon the security of such mortgages or trust deeds,
unless the holders of such mortgages or trust deeds, or the lessors under such
ground lease or underlying leases, require in writing that this Lease be
superior thereto. Tenant covenants and agrees in the event any proceedings are
brought for the foreclosure of any such mortgage or deed in lieu thereof, to
attorn, without any deductions or set-offs whatsoever, to the purchaser or any
successors thereto upon any such foreclosure sale or deed in lieu thereof if so
requested to do so by such purchaser, and to recognize such purchaser as the
lessor under this Lease. Tenant shall, within five (5) days of request by
Landlord, execute such further instruments or assurances as Landlord may
reasonably deem necessary to evidence or confirm the subordination or
superiority of this Lease to any such mortgages, trust deeds, ground leases or
underlying leases; provided, however, that Landlord shall use its commercially
reasonable efforts to obtain from any such first mortgagee or ground lessor a
commercially reasonable form of nondisturbance agreement, which shall provide
that so long as Tenant is in compliance with the terms of this Lease, Tenant
shall not be disturbed by such first mortgagee or ground lessor. Tenant waives
the provisions of any current or future statute, rule or law which may give or
purport to give Tenant any right or election to terminate or otherwise adversely
affect this Lease and the obligations of the Tenant hereunder in the event of
any foreclosure proceeding or sale.
ARTICLE 19
DEFAULTS; REMEDIES
19.1 DEFAULTS. All covenants and agreements to be kept or performed by
Tenant under this Lease shall be performed by Tenant at Tenant's sole cost and
expense and without any reduction of Rent. The occurrence of any of the
following shall constitute a default of this Lease by Tenant:
19.1.1 Any failure by Tenant to pay any Rent or any other charge
required to be paid under this Lease, or any part thereof, when due, which
failure is not corrected within five (5) days after the date that Landlord has
provided Tenant with written notice that such sums are due and owing; or
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19.1.2 Any failure by Tenant to observe or perform any other
provision, covenant or condition of this Lease to be observed or performed by
Tenant where such failure continues for thirty (30) days after written notice
thereof from Landlord to Tenant; provided however, that any such notice shall be
in lieu of, and not in addition to, any notice required under California Code of
Civil Procedure Section 1161 or any similar or successor law; and provided
further that if the nature of such default is such that the same cannot
reasonably be cured within a thirty (30) day period, Tenant shall not be deemed
to be in default if it diligently commences such cure within such period and
thereafter diligently proceeds to rectify and cure said default, as soon as
possible; or
19.1.3 Abandonment or vacation of the Premises by Tenant; or
19.1.4 To the extent permitted by law, a general assignment by
Tenant or any guarantor of the Lease for the benefit of creditors, or the filing
by or against Tenant or any guarantor of any proceeding under an insolvency or
bankruptcy law, unless in the case of a proceeding filed against Tenant or any
guarantor the same is dismissed within sixty (60) days, or the appointment of a
trustee or receiver to take possession of all or substantially all of the assets
of Tenant or any guarantor, unless possession is restored to Tenant or such
guarantor within thirty (30) days, or any execution or other judicially
authorized seizure of all or substantially all of Tenant's assets located upon
the Premises or of Tenant's interest in this Lease, unless such seizure is
discharged within thirty (30) days; or
19.1.5 The hypothecation or assignment of this Lease or subletting
of the Premises, in violation of Article 14 hereof.
19.2 REMEDIES UPON DEFAULT. Upon the occurrence of such default by Tenant,
Landlord shall have, in addition to any other remedies available to Landlord at
law or in equity, the option to pursue any one or more of the following
remedies, each and all of which shall be cumulative and nonexclusive, without
any notice or demand whatsoever.
19.2.1 Terminate this Lease, in which event Tenant shall immediately
surrender the Premises to Landlord, and if Tenant fails to do so, Landlord may,
without prejudice to any other remedy which it may have for possession or
arrearages in rent, enter upon and take possession of the Premises and expel or
remove Tenant and any other person who may be occupying the Premises or any part
thereof, without being liable for prosecution or any claim or damages therefor;
and Landlord may recover from Tenant the following:
(i) The worth at the time of award of any unpaid rent which
has been earned at the time of such termination; plus
(ii) The worth at the time of award of the amount by which the
unpaid rent which would have been earned after termination until the time of
award exceeds the amount of such rental loss that Tenant proves could have been
reasonably avoided; plus
(iii) The worth at the time of award of the amount by which
the unpaid rent for the balance of the Lease Term after the time of award
exceeds the amount of such rental loss that Tenant proves could have been
reasonably avoided; plus
(iv) Any other amount necessary to compensate Landlord for all
the detriment proximately caused by Tenant's failure to perform its obligations
under this Lease or which in the ordinary course of things would be likely to
result therefrom, specifically including but not limited to, brokerage
commissions and advertising expenses incurred, expenses of remodeling the
Premises or any portion thereof for a new tenant, whether for the same or a
different use, and any special concessions made to obtain a new tenant; and
(v) At Landlord's election, such other amounts in addition to
or in lieu of the foregoing as may be permitted from time to time by applicable
law.
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The term "RENT" as used in this Section 19.2 shall be deemed to be
and to mean all sums of every nature required to be paid by Tenant pursuant to
the terms of this Lease, whether to Landlord or to others. As used in Sections
19.2.1(i) and (ii), above, the "worth at the time of award" shall be computed by
allowing interest at the Interest Rate set forth in Section 4.2.3 of this Lease,
but in no case greater than the maximum amount of such interest permitted by
law. As used in Section 19.2.1(iii) above, the "worth at the time of award"
shall be computed by discounting such amount at the discount rate of the Federal
Reserve Bank of San Francisco at the time of award plus one percent (1%).
19.2.2 Landlord shall have the remedy described in California Civil
Code Section 1951.4 (lessor may continue lease in effect after lessee's breach
and abandonment and recover rent as it becomes due, if lessee has the right to
sublet or assign, subject only to reasonable limitations). Accordingly, if
Landlord does not elect to terminate this Lease on account of any default by
Tenant, Landlord may, from time to time, without terminating this Lease, enforce
all of its rights and remedies under this Lease, including the right to recover
all rent as it becomes due.
19.2.3 After notice and the expiration of any applicable cure
period, Landlord may, but shall not be obligated to, make any such payment or
perform or otherwise cure any such obligation, provision, covenant or condition
on Tenant's part to be observed or performed (and may enter the Premises for
such purposes), all at Tenant's expense, without waiving its rights based upon
any default of Tenant and without releasing Tenant from any obligations
hereunder. Notwithstanding the foregoing, in the event of Tenant's failure to
perform any of its obligations or covenants under this Lease, and such failure
to perform poses a material risk of injury or harm to persons or damage to or
loss of property, then Landlord shall have the right to cure or otherwise
perform such covenant or obligation at any time after such failure to perform by
Tenant, whether or not any such notice or cure period set forth in Section 19.1
above has expired. Any such actions undertaken by Landlord pursuant to the
foregoing provisions of this Section 19.2.3 shall not be deemed a waiver of
Landlord's rights and remedies as a result of Tenant's failure to perform and
shall not release Tenant from any of its obligations under this Lease.
19.3 PAYMENT BY TENANT. Tenant shall pay to Landlord, within fifteen (15)
days after delivery by Landlord to Tenant of statements therefor: (i) sums equal
to expenditures reasonably made and obligations incurred by Landlord in
connection with Landlord's performance or cure of any of Tenant's obligations
pursuant to the provisions of Section 19.2.3 above; and (ii) sums equal to all
expenditures made and obligations incurred by Landlord in collecting or
attempting to collect the Rent or in enforcing or attempting to enforce any
rights of Landlord under this Lease or pursuant to law, including, without
limitation, all legal fees and other amounts so expended. Tenant's obligations
under this Section 19.3 shall survive the expiration or sooner termination of
the Lease Term.
19.4 SUBLEASES OF TENANT. Whether or not Landlord elects to terminate this
Lease on account of any default by Tenant, as set forth in this Article 19,
following any such default by Tenant, Landlord shall have the right to terminate
any and all subleases, licenses, concessions or other consensual arrangements
for possession entered into by Tenant and affecting the Premises or may, in
Landlord's sole discretion, succeed to Tenant's interest in such subleases,
licenses, concessions or arrangements. In the event of Landlord's election to
succeed to Tenant's interest in any such subleases, licenses, concessions or
arrangements, Tenant shall, as of the date of notice by Landlord of such
election, have no further right to or interest in the rent or other
consideration receivable thereunder.
19.5 FORM OF PAYMENT AFTER DEFAULT. Following the occurrence of an event
of default by Tenant, Landlord shall have the right to require that any or all
subsequent amounts paid by Tenant to Landlord hereunder, whether in the cure of
the default in question or otherwise, be paid in the form of cash, money order,
cashier's or certified check drawn on an institution acceptable to Landlord, or
by other means approved by Landlord, notwithstanding any prior practice of
accepting payments in any different form.
19.6 WAIVER OF DEFAULT. No waiver by Landlord of any violation or breach
by Tenant of any of the terms, provisions and covenants herein contained shall
be deemed or construed to constitute a
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waiver of any other or later violation or breach by Tenant of the same or any
other of the terms, provisions, and covenants herein contained. Forbearance by
Landlord in enforcement of one or more of the remedies herein provided upon a
default by Tenant shall not be deemed or construed to constitute a waiver of
such default. The acceptance of any Rent hereunder by Landlord following the
occurrence of any default, whether or not known to Landlord, shall not be deemed
a waiver of any such default, except only a default in the payment of the Rent
so accepted.
19.7 EFFORTS TO RELET. For the purposes of this Article 19, Tenant's right
to possession shall not be deemed to have been terminated by efforts of Landlord
to relet the Premises, by its acts of maintenance or preservation with respect
to the Premises, or by appointment of a receiver to protect Landlord's interests
hereunder. The foregoing enumeration is not exhaustive, but merely illustrative
of acts which may be performed by Landlord without terminating Tenant's right to
possession.
ARTICLE 20
SECURITY DEPOSIT AND GUARANTY
Concurrent with Tenant's execution of this Lease, Tenant shall deposit
with Landlord a security deposit (the "SECURITY DEPOSIT") in the amount set
forth in Section 10 of the Summary. The Security Deposit shall be held by
Landlord as security for the faithful performance by Tenant of all the terms,
covenants, and conditions of this Lease to be kept and performed by Tenant
during the Lease Term. If Tenant defaults with respect to any provisions of this
Lease, including, but not limited to, the provisions relating to the payment of
Rent, Landlord may, but shall not be required to, use, apply or retain all or
any part of the Security Deposit for the payment of any Rent or any other sum in
default, or for the payment of any amount that Landlord may spend or become
obligated to spend by reason of Tenant's default, or to compensate Landlord for
any other loss or damage that Landlord may suffer by reason of Tenant's default.
If any portion of the Security Deposit is so used or applied, Tenant shall,
within five (5) days after written demand therefor, deposit cash with Landlord
in an amount sufficient to restore the Security Deposit to its original amount,
and Tenant's failure to do so shall be a default under this Lease. If Tenant
shall fully and faithfully perform 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, within sixty (60) days following the expiration of the Lease Term.
Tenant shall not be entitled to any interest on the Security Deposit. Tenant
hereby waives the provisions of Section 1950.7 of the California Civil Code, and
all other provisions of law, now or hereafter in force, which provide that
Landlord may claim from a security deposit only those sums reasonably necessary
to remedy defaults in the payment of rent, to repair damage caused by Tenant or
to clean the Premises, it being agreed that Landlord may, in addition, claim
those sums reasonably necessary to compensate Landlord for any other loss or
damage, foreseeable or unforeseeable, caused by the act or omission of Tenant or
any officer, employee, agent or invitee of Tenant.
ARTICLE 21
SIGNS
21.1 FULL FLOOR TENANTS. Subject to Landlord's prior written approval, in
its sole discretion, and provided all signs are in keeping with the quality,
design and style of the Project, if the Premises or any portion thereof comprise
an entire floor of the Building, Tenant, at its sole cost and expense, may
install identification signage anywhere in the Premises including in the
elevator lobby of the Premises, provided that such signs must not be visible
from the exterior of the Building.
21.2 MULTI-TENANT FLOOR TENANTS. If Tenant occupies less than the entire
floor on which the Premises is located, Tenant's identifying signage shall be
provided by Landlord, at Tenant's sole cost and expense, and such signage shall
be comparable to that used by Landlord for other similar floors in the Building
and shall comply with Landlord's Building standard signage program. Any
additions, deletions or modifications to such Building standard signage shall be
at Tenant's sole expense and subject to the prior written approval of Landlord,
in Landlord's sole discretion.
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21.3 PROHIBITED SIGNAGE AND OTHER ITEMS. Any signs, notices, logos,
pictures, names or advertisements which are installed and that have not been
separately approved by Landlord may be removed without notice by Landlord at the
sole expense of Tenant. Tenant may not install any signs on the exterior or roof
of the Building or the common areas of the Building or the Real Property. Any
signs, window coverings, or blinds (even if the same are located behind the
Landlord approved window coverings for the Building), or other items visible
from the exterior of the Premises or Building are subject to the prior written
approval of Landlord, in its sole discretion.
21.4 BUILDING DIRECTORY. Tenant shall, at Tenant's expense, be entitled to
one (1) line on the Building directory to display Tenant's name and suite
number.
ARTICLE 22
COMPLIANCE WITH LAW
Tenant shall not do anything or suffer anything to be done in or about the
Premises which will in any way conflict with any law, statute, ordinance or
other governmental rule, regulation or requirement now in force or which may
hereafter be enacted or promulgated. At its sole cost and expense, Tenant shall
promptly comply with all such governmental measures (including those pertaining
to Hazardous Materials), other than the making of structural changes to the
Building (collectively, the "EXCLUDED CHANGES"), except to the extent such
Excluded Changes are required due to Tenant's alterations to or manner of use of
the Premises. Should any standard or regulation now or hereafter be imposed on
Landlord or Tenant by a state, federal or local governmental body charged with
the establishment, regulation and enforcement of occupational, health or safety
standards for employers, employees, landlords or tenants, then Tenant agrees, at
its sole cost and expense, to comply promptly with such standards or
regulations. In addition, Tenant shall fully comply with all present or future
programs intended to manage parking, transportation or traffic in and around the
Building, and in connection therewith, Tenant shall take responsible action for
the transportation planning and management of all employees located at the
Premises by working directly with Landlord, any governmental transportation
management organization or any other transportation-related committees or
entities. The judgment of any court of competent jurisdiction or the admission
of Tenant in any judicial action, regardless of whether Landlord is a party
thereto, that Tenant has violated any of said governmental measures, shall be
conclusive of that fact as between Landlord and Tenant.
ARTICLE 23
ENTRY BY LANDLORD
Landlord reserves the right at all reasonable times and upon prior
reasonable notice to Tenant (except no such prior notice shall be required in
emergencies) to enter the Premises to: (i) inspect them; (ii) show the Premises
to prospective purchasers, mortgagees or ground or underlying lessors, or,
during the last twelve (12) months of the Lease Term, prospective tenants; (iii)
post notices of nonresponsibility; or (iv) alter, improve or repair the Premises
or the Building if necessary to comply with current building codes or other
applicable laws, or for structural alterations, repairs or improvements to the
Building, or as Landlord may otherwise reasonably desire or deem necessary.
Notwithstanding anything to the contrary contained in this Article, Landlord may
enter the Premises at any time, without notice to Tenant, to (A) perform
janitorial and other services required of Landlord, (B) take possession due to
any breach of this Lease in the manner provided herein; and (C) perform any
covenants of Tenant which Tenant fails to perform. Any such entries shall be
without the abatement of Rent and shall include the right to take such
reasonable steps as required to accomplish the stated purposes; provided,
however, that any such entry shall be accomplished as expeditiously as
reasonably possible and in a manner so as to cause as little interference to
Tenant as reasonably possible. Tenant hereby waives any claims for damages or
for any injuries or inconvenience to or interference with Tenant's business,
lost profits, any loss of occupancy or quiet enjoyment of the Premises, and any
other loss occasioned by Landlord's entry into the Premises. For each of the
above purposes, Landlord shall at all times have a key with which to unlock all
the doors in the Premises, excluding Tenant's vaults, safes and special security
areas designated in advance by
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Tenant. In an emergency, Landlord shall have the right to use any means that
Landlord may deem proper to open the doors in and to the Premises. Any entry
into the Premises by Landlord in the manner hereinbefore described shall not be
deemed to be a forcible or unlawful entry into, or a detainer of, the Premises,
or an actual or constructive eviction of Tenant from any portion of the
Premises.
ARTICLE 24
TENANT PARKING
Tenant shall be entitled to use throughout the Lease Term the number of
unreserved parking passes set forth in Section 12 of the Summary, in a location
in the Project Parking Area as designated by Landlord from time to time. Tenant
shall not be required to pay to Landlord any parking fees for the use of such
parking passes during the initial term, other than any parking taxes which may
be imposed by governmental authorities in connection with the use of such
parking. Thereafter, Tenant shall pay to Landlord for the use of such parking
passes, on a monthly basis, the prevailing rate charged from time to time by
Landlord or Landlord's parking operator for parking passes in the Project
Parking Area where such parking passes are located. Tenant's continued right to
use the parking passes is conditioned upon Tenant abiding by all rules and
regulations which are prescribed from time to time for the orderly operation and
use of the Project Parking Area and upon Tenant's cooperation in seeing that
Tenant's employees and visitors also comply with such rules and regulations. In
addition, Landlord may assign any parking spaces and/or make all or a portion of
such spaces reserved or institute an attendant-assisted tandem parking program
and/or valet parking program if Landlord determines in its sole discretion that
such is necessary or desirable for orderly and efficient parking. Landlord
specifically reserves the right, from time to time, to change the size,
configuration, design, layout, location and all other aspects of the Project
Parking Area, and Tenant acknowledges and agrees that Landlord, from time to
time, may, without incurring any liability to Tenant and without any abatement
of Rent under this Lease temporarily close-off or restrict access to the Project
Parking Area, or temporarily relocate Tenant's parking spaces to other parking
structures and/or surface parking areas within a reasonable distance from the
Project Parking Area, for purposes of permitting or facilitating any such
construction, alteration or improvements or to accommodate or facilitate
renovation, alteration, construction or other modification of other improvements
or structures located on the Real Property. Landlord may delegate its
responsibilities hereunder to a parking operator in which case such parking
operator shall have all the rights of control attributed hereby to Landlord.
ARTICLE 25
MISCELLANEOUS PROVISIONS
25.1 BINDING EFFECT; SUCCESSORS. Each of the provisions of this Lease
shall extend to and shall, as the case may require, bind or inure to the benefit
not only of Landlord and of Tenant, but also of their respective successors or
assigns, provided this clause shall not permit any assignment by Tenant contrary
to the provisions of Article 14 of this Lease, and no assignment, sublease or
other transfer in violation of the provisions of Article 14 shall operate to
vest any rights in any putative assignee, subtenant or transferee of Tenant.
25.2 NO AIR RIGHTS. No rights to any view or to light or air over any
property, whether belonging to Landlord or any other person, are granted to
Tenant by this Lease. If at any time any windows of the Premises are temporarily
darkened or the light or view therefrom is obstructed by reason of any repairs,
improvements, maintenance or cleaning in or about the Building, the same shall
be without liability to Landlord and without any reduction or diminution of
Tenant's obligations under this Lease.
25.3 MODIFICATION OF LEASE. Should any current or prospective mortgagee or
ground lessor for the Project require a modification or modifications of this
Lease, which modification or modifications will not cause an increased cost or
expense to Tenant or in any other way materially and adversely change the rights
and obligations of Tenant hereunder, then and in such event, Tenant agrees that
this Lease may be so modified and agrees to execute whatever documents are
required therefor and deliver
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the same to Landlord within ten (10) days following the request therefor. Should
Landlord or any such prospective mortgagee or ground lessor require execution of
a short form of Lease for recording, containing, among other customary
provisions, the names of the parties, a description of the Premises and the
Lease Term, Tenant agrees to execute such short form of Lease and to deliver the
same to Landlord within ten (10) days following the request therefor.
25.4 TRANSFER OF LANDLORD'S INTEREST. Tenant acknowledges that Landlord
has the right to transfer all or any portion of its interest in the Real
Property and in this Lease, and Tenant agrees that in the event of any such
transfer and a transfer of the Security Deposit, Landlord shall automatically be
released from all liability under this Lease and Tenant agrees to look solely to
such transferee for the performance of Landlord's obligations hereunder after
the date of transfer. Tenant further acknowledges that Landlord may assign its
interest in this Lease to the holder of any mortgage or deed of trust as
additional security, but agrees that such an assignment shall not release
Landlord from its obligations hereunder and that Tenant shall continue to look
to Landlord for the performance of its obligations hereunder.
25.5 PROHIBITION AGAINST RECORDING. Except as provided in Section 25.3 of
this Lease, neither this Lease, nor any memorandum, affidavit or other writing
with respect thereto, shall be recorded by Tenant or by anyone acting through,
under or on behalf of Tenant, and the recording thereof in violation of this
provision shall make this Lease null and void at Landlord's election.
25.6 CAPTIONS. The captions of Articles and Sections are for convenience
only and shall not be deemed to limit, construe, affect or alter the meaning of
such Articles and Sections.
25.7 RELATIONSHIP OF PARTIES. Nothing contained in this Lease shall be
deemed or construed by the parties hereto or by any third party to create the
relationship of principal and agent, partnership, joint venturer or any
association between Landlord and Tenant, it being expressly understood and
agreed that neither the method of computation of Rent nor any act of the parties
hereto shall be deemed to create any relationship between Landlord and Tenant
other than the relationship of landlord and tenant.
25.8 TIME OF ESSENCE. Time is of the essence of this Lease and each of its
provisions.
25.9 PARTIAL INVALIDITY. If any term, provision or condition contained in
this Lease shall, to any extent, be invalid or unenforceable, the remainder of
this Lease, or the application of such term, provision or condition to persons
or circumstances other than those with respect to which it is invalid or
unenforceable, shall not be affected thereby, and each and every other term,
provision and condition of this Lease shall be valid and enforceable to the
fullest extent possible permitted by law.
25.10 LANDLORD EXCULPATION. It is expressly understood and agreed that
notwithstanding anything in this Lease to the contrary, and notwithstanding any
applicable law to the contrary, the liability of Landlord and the Landlord
Parties hereunder (including any successor landlord) and any recourse by Tenant
against Landlord or the Landlord Parties (including any successor landlord)
shall be limited solely and exclusively to an amount which is equal to the
interest of Landlord in the Project, and neither Landlord, nor any of the
Landlord Parties shall have any personal liability therefor, and Tenant hereby
expressly waives and releases such personal liability on behalf of itself and
all persons claiming by, through or under Tenant.
25.11 CHILD CARE FACILITIES. Tenant acknowledges that any child care
facilities located or which may be located in the Project (the "CHILD CARE
FACILITIES") which are available to Tenant and Tenant's employees are provided
by a third party (the "CHILD CARE PROVIDER") which is leasing space in the
Project, and not by Landlord. If Tenant or its employees choose to use the Child
Care Facilities, Tenant acknowledges that Tenant and Tenant's employees are not
relying upon any investigation which Landlord may have conducted concerning the
Child Care Provider or any warranties or representation with respect thereto, it
being the sole responsibility of Tenant and the individual user of the Child
Care Facilities to conduct any and all investigations of the Child Care
Facilities prior to making use thereof.
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Accordingly, Landlord shall have no responsibility with respect to the quality
or care provided by the Child Care Facilities, or for any acts or omissions of
the Child Care Provider. Furthermore, Tenant, for Tenant and for Tenant's
employees, hereby agrees that Landlord, its partners, subpartners and their
respective officers, agents, servants, employees, and independent contractors
shall not be liable for, and are hereby released from any responsibility for any
loss, cost, damage, expense or liability, either to person or property, arising
from the use of the Child Care Facilities by Tenant or Tenant's employees.
Tenant hereby covenants that Tenant shall inform all of Tenant's employees of
the provisions of this Section prior to such employees' use of the Child Care
Facilities. Nothing contained herein is intended to be a representation nor
warranty by Landlord that any Child Care Facilities will be available during the
Lease Term and Landlord shall have no obligation to provide, or to make
available, any such Child Care Facilities.
25.12 ENTIRE AGREEMENT. It is understood and acknowledged that there are
no oral agreements between the parties hereto affecting this Lease and this
Lease supersedes and cancels any and all previous negotiations, arrangements,
brochures, agreements and understandings, if any, between the parties hereto or
displayed by Landlord to Tenant with respect to the subject matter thereof, and
none thereof shall be used to interpret or construe this Lease. This Lease, the
exhibits and schedules attached hereto, and any side letter or separate
agreement executed by Landlord and Tenant in connection with this Lease and
dated of even date herewith contain all of the terms, covenants, conditions,
warranties and agreements of the parties relating in any manner to the rental,
use and occupancy of the Premises, shall be considered to be the only agreement
between the parties hereto and their representatives and agents, and none of the
terms, covenants, conditions or provisions of this Lease can be modified,
deleted or added to except in writing signed by the parties hereto.
25.13 RIGHT TO LEASE. Landlord reserves the absolute right to effect such
other tenancies in the Project as Landlord in the exercise of its sole business
judgment shall determine to best promote the interests of the Project. Tenant
does not rely on the fact, nor does Landlord represent, that any specific tenant
or type or number of tenants shall, during the Lease Term, occupy any space in
the Project.
25.14 FORCE MAJEURE. Any prevention, delay or stoppage due to strikes,
lockouts, labor disputes, acts of God, inability to obtain services, labor, or
materials or reasonable substitutes therefor, governmental actions, civil
commotions, fire or other casualty, and other causes beyond the reasonable
control of the party obligated to perform (collectively, the "FORCE MAJEURE"),
except with respect to the obligations imposed with regard to Rent and other
charges to be paid by Tenant pursuant to this Lease, and except as to Tenant's
obligations under EXHIBIT D, notwithstanding anything to the contrary contained
in this Lease, shall excuse the performance of such party for a period equal to
any such prevention, delay or stoppage and, therefore, if this Lease specifies a
time period for performance of an obligation of either party, that time period
shall be extended by the period of any delay in such party's performance caused
by a Force Majeure.
25.15 NOTICES. All notices, demands, statements, approvals or
communications (collectively, "NOTICES") given or required to be given by either
party to the other hereunder shall be in writing, shall be sent by United States
certified or registered mail, postage prepaid, return receipt requested, or
delivered personally (i) to Tenant at the appropriate address set forth in
Section 5 of the Summary, or to such other place as Tenant may from time to time
designate in a Notice to Landlord; or (ii) to Landlord at the addresses set
forth in Section 3 of the Summary, or to such other firm or to such other place
as Landlord may from time to time designate in a Notice to Tenant. Any Notice
will be deemed given on the date which is two (2) business days after it is
mailed as provided in this Section or upon the date personal delivery is made.
If Tenant is notified of the identity and address of Landlord's mortgagee or
ground or underlying lessor, Tenant shall give to such mortgagee or ground or
underlying lessor written notice of any default by Landlord under the terms of
this Lease by registered or certified mail, and such mortgagee or ground or
underlying lessor shall be given a reasonable opportunity to cure such default
prior to Tenant's exercising any remedy available to Tenant.
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25.16 JOINT AND SEVERAL. If there is more than one Tenant, the obligations
imposed upon Tenant under this Lease shall be joint and several.
25.17 AUTHORITY. If Tenant is a corporation or partnership, each
individual executing this Lease on behalf of Tenant hereby represents and
warrants that Tenant is a duly formed and existing entity qualified to do
business in California and that Tenant has full right and authority to execute
and deliver this Lease and that each person signing on behalf of Tenant is
authorized to do so.
25.18 GOVERNING LAW. This Lease shall be construed and enforced in
accordance with the laws of the State of California.
25.19 SUBMISSION OF LEASE. Submission of this instrument for examination
or signature by Tenant does not constitute a reservation of or an option for
lease, and it is not effective as a lease or otherwise until execution and
delivery by both Landlord and Tenant.
25.20 BROKERS. Landlord and Tenant hereby warrant to each other that they
have had no dealings with any real estate broker or agent in connection with the
negotiation of this Lease, excepting only the real estate brokers or agents
specified in Section 13 of the Summary and Landlord's designated representative
(the "BROKERS"), and that they know of no other real estate broker or agent who
is entitled to a commission in connection with this Lease. Landlord shall pay
the brokerage commissions owing to the Brokers in connection with the
transaction contemplated by this Lease pursuant to the terms of a separate
written agreement between Landlord and the Brokers. Each party agrees to
indemnify, defend, protect and hold the other party harmless from and against
any and all Claims with respect to any leasing commission or equivalent
compensation alleged to be owing on account of the indemnifying party's dealings
with any real estate broker or agent other than the Brokers. The terms of this
Section shall survive the expiration or earlier termination of the Lease Term.
25.21 INDEPENDENT COVENANTS. This Lease shall be construed as though the
covenants herein between Landlord and Tenant are independent and not dependent
and Tenant hereby expressly waives the benefit of any statute to the contrary
and agrees that if Landlord fails to perform its obligations set forth herein,
Tenant shall not be entitled to make any repairs or perform any acts hereunder
at Landlord's expense or to any setoff of the Rent or other amounts owing
hereunder against Landlord; provided, however, that the foregoing shall in no
way impair the right of Tenant to commence a separate action against Landlord
for any violation by Landlord of the provisions hereof so long as notice is
first given to Landlord and any holder of a mortgage or deed of trust covering
the Building, Real Property or any portion thereof, of whose address Tenant has
theretofore been notified, and an opportunity is granted to Landlord and such
holder to correct such violations as provided above.
25.22 BUILDING NAME AND SIGNAGE. Landlord shall have the right at any time
to designate and/or change the name of the Project, the Building and/or any
other building in the Project, and to install, affix and maintain any and all
signs on the exterior and on the interior of the Project, the Building and/or
any other building in the Project, as Landlord may, in Landlord's sole
discretion, desire. Tenant shall not use the name of the Project, the Building
or any other building in the Project, or use pictures or illustrations of the
Project, the Building or any other building in the Project, in advertising or
other publicity, without the prior written consent of Landlord.
25.23 HAZARDOUS MATERIALS. Tenant acknowledges that Landlord has agreed to
make the existing Phase I Environmental Assessment Report, if any, available to
Tenant upon Tenant's prior written request. Tenant acknowledges that Landlord
may incur costs (a) for complying with laws, codes, regulations or ordinances
relating to Hazardous Materials, or (b) otherwise in connection with Hazardous
Materials including, without limitation, the following: (i) Hazardous Materials
present in soil or ground water, (ii) Hazardous Materials that migrate, flow,
percolate, diffuse or in any way move onto or under the Project, (iii) Hazardous
Materials present on or under the Project as a result of any discharge, dumping
or spilling (whether accidental or otherwise) on the Project by other tenants of
the Project or their agents, employees, contractors or invitees, or by others,
and (iv) material which becomes Hazardous Materials
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due to a change in laws, codes, regulations or ordinances which relate to
hazardous or toxic material, substances or waste. Tenant agrees that the costs
incurred by Landlord with respect to, or in connection with, the Project for
complying with laws, codes, regulations or ordinances relating to Hazardous
Materials shall be an Operating Expense, unless the cost of such compliance, as
between Landlord and Tenant, is made the responsibility of Tenant under this
Lease. Notwithstanding the foregoing, Tenant shall not be responsible for any
costs or expenses incurred in connection with any loss or injury caused by (A)
the presence of any Hazardous Materials existing on the Project prior to the
Effective Date of this Lease, or (B) the release of any Hazardous Materials on
the Project by Landlord. To the extent any such Operating Expense relating to
Hazardous Materials is subsequently recovered or reimbursed through insurance,
or recovery from responsible third parties, or other action, Tenant shall be
entitled to a proportionate share of such Operating Expense to which such
recovery or reimbursement relates.
25.24 TRANSPORTATION MANAGEMENT. Tenant shall fully comply with all
present or future programs intended to manage parking, transportation or traffic
in and around the Project, and in connection therewith, Tenant shall take
responsible action for the transportation planning and management of all
employees located at the Premises by working directly with Landlord, any
governmental transportation management organization or any other
transportation-related committees or entities. Such programs may include,
without limitation: (i) restrictions on the number of peak-hour vehicle trips
generated by Tenant; (ii) increased vehicle occupancy; (iii) implementation of
an in-house ridesharing program and an employee transportation coordinator; (iv)
working with employees and any Project or area-wide ridesharing program manager;
(v) instituting employer-sponsored incentives (financial or in-kind) to
encourage employees to rideshare; and (vi) utilizing flexible work shifts for
employees.
25.25 NO DISCRIMINATION. Tenant covenants by and for itself, its heirs,
executors, administrators and assigns, and all persons claiming under or through
Tenant, and this Lease is made and accepted upon and subject to the following
conditions: that there shall be no discrimination against or segregation of any
person or group of persons, on account of race, color, creed, sex, religion,
marital status, ancestry or national origin in the leasing, subleasing,
transferring, use, or enjoyment of the Premises, nor shall Tenant itself, or any
person claiming under or through Tenant, establish or permit such practice or
practices of discrimination or segregation with reference to the selection,
location, number, use or occupancy, of tenants, lessees, sublessees, subtenants
or vendees in the Premises.
25.26 Intentionally Omitted.
25.27 DEVELOPMENT OF THE PROJECT.
25.27.1 SUBDIVISION. Tenant acknowledges that the Project may be
comprised of separate legal lots. Landlord reserves the right to further
subdivide or sell all or a portion of the Project. Tenant agrees to execute and
deliver, upon demand by Landlord and in the form requested by Landlord, any
additional documents reasonably necessary to conform this Lease to the
circumstances resulting from such a subdivision or sale and any all ancillary
transactions in connection therewith.
25.27.2 OTHER IMPROVEMENTS. If portions of the Project or property
adjacent to the Project (collectively, the "OTHER IMPROVEMENTS") are owned by an
entity other than Landlord, Landlord, at its option, may enter into an agreement
with the owner or owners of any of the Other Improvements to provide (i) for
reciprocal rights of access, use and/or enjoyment of the Project and the Other
Improvements, (ii) for the common management, operation, maintenance,
improvement and/or repair of all or any portion of the Project and all or any
portion of the Other Improvements, (iii) for the allocation of a portion of the
Project Expenses to the Other Improvements and the allocation of a portion of
the operating expenses and taxes for the Other Improvements to the Project, (iv)
for the use or improvement of the Other Improvements and/or the Project in
connection with the improvement, construction, and/or excavation of the Other
Improvements and/or the Project, and (v) for any other matter which Landlord
deems necessary. Nothing contained herein shall be deemed or construed to limit
or otherwise affect
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Landlord's right to sell all or any portion of the Project or any other of
Landlord's rights described in this Lease.
25.27.3 LANDLORD RENOVATIONS. It is specifically understood and
agreed that Landlord has made no representation or warranty to Tenant and has no
obligation to alter, remodel, improve, renovate, repair or decorate the
Premises, Building, Project or any part thereof, or to add any additional phases
or office buildings to the Project, and that no representations respecting the
condition of the Premises or the Project have been made by Landlord to Tenant
except as specifically set forth herein or in the Tenant Work Letter. However,
Tenant acknowledges that Landlord may during the Lease Term renovate, improve,
alter, or modify (collectively, the "RENOVATIONS") the Building, Premises,
and/or Real Property, including without limitation the Project Parking Area,
common areas, systems and equipment, roof, and structural portions of the same,
which Renovations may include, without limitation, (i) modifying the driveways
and other common areas and tenant spaces to comply with applicable laws and
regulations, including regulations relating to the physically disabled, seismic
conditions, and building safety and security, (ii) installing new floor
covering, lighting, and wall coverings in the common areas, and in connection
with any Renovations, Landlord may, among other things, erect scaffolding or
other necessary structures in the Building or Project, limit or eliminate access
to portions of the Real Property, including portions of the common areas, or
perform work in the Building or Project, which work may create noise, dust or
leave debris in the Project, (iii) renovation and/or expansion of the main entry
to the Project and the main Building lobby area, (iv) renovation of the
elevator, lobbies, elevator doors and frames and restrooms, and (v)
installations, repairs or maintenance of telephone risers. Tenant hereby agrees
that such Renovations and Landlord's actions in connection with such Renovations
shall in no way constitute a constructive eviction of Tenant nor entitle Tenant
to any abatement of Rent. Landlord shall have no responsibility or for any
reason be liable to Tenant for any direct or indirect injury to or interference
with Tenant's business arising from the Renovations, nor shall Tenant be
entitled to any compensation or damages from Landlord for loss of the use of the
whole or any part of the Premises or of Tenant's personal property or
improvements resulting from the Renovations or Landlord's actions in connection
with such Renovations, or for any inconvenience or annoyance occasioned by such
Renovations or Landlord's actions in connection with such Renovations.
25.28 CONFIDENTIALITY. Tenant acknowledges that the content of this Lease
and any related documents are confidential information. Tenant shall keep such
confidential information strictly confidential and shall not disclose such
confidential information to any person or entity other than Tenant's financial,
legal, accounting, real estate and space planning consultants, respectively, or
as otherwise required by law.
25.29 LANDLORD'S TITLE. Landlord's title is and always shall be paramount
to the title of Tenant. Nothing herein contained shall empower Tenant to do any
act which can, shall or may encumber the title of Landlord.
25.30 NO WAIVER. No waiver of any provision of this Lease shall be implied
by any failure of a party to enforce any remedy on account of the violation of
such provision, even if such violation shall continue or be repeated
subsequently, any waiver by a party of any provision of this Lease may only be
in writing, and no express waiver shall affect any provision other than the one
specified in such waiver and that one only for the time and in the manner
specifically stated. No receipt of monies by Landlord from Tenant after the
termination of this Lease shall in any way alter the length of the Lease Term or
of Tenant's right of possession hereunder or after the giving of any notice
shall reinstate, continue or extend the Lease Term or affect any notice given
Tenant prior to the receipt of such monies, it being agreed that after the
service of notice or the commencement of a suit or after final judgment for
possession of the Premises, Landlord may receive and collect any Rent due, and
the payment of said Rent shall not waive or affect said notice, suit or
judgment.
25.31 JURY TRIAL; ATTORNEYS' FEES. IF EITHER PARTY COMMENCES LITIGATION
AGAINST THE OTHER FOR THE SPECIFIC PERFORMANCE OF THIS LEASE, FOR DAMAGES FOR
THE BREACH HEREOF OR OTHERWISE FOR ENFORCEMENT OF ANY REMEDY HEREUNDER, THE
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PARTIES HERETO AGREE TO AND HEREBY DO WAIVE ANY RIGHT TO A TRIAL BY JURY. In the
event of any such commencement of litigation, the prevailing party shall be
entitled to recover from the other party such costs and reasonable attorneys'
fees as may have been incurred, including any and all costs incurred in
enforcing, perfecting and executing such judgment.
25.32 SUBSTITUTION OF OTHER PREMISES. Landlord shall have the right to
move Tenant to other space on the ground floor of the Project comparable in size
to the Premises, and all terms hereof shall apply to the new space with equal
force. In such event, Landlord shall give Tenant at least sixty (60) days' prior
notice of Landlord's election to so relocate Tenant, and shall move Tenant's
effects (including, without limitation, its lab equipment) to the new space at
Landlord's sole cost and expense at such time and in such manner as to
inconvenience Tenant as little as reasonably practicable. The new space shall be
delivered to Tenant with improvements substantially similar to those
improvements existing in the Premises at the time of Landlord's notification to
Tenant of the relocation, which improvements shall be paid for by Landlord at
Landlord's cost. Simultaneously with such relocation of the Premises, the
parties shall immediately execute an amendment to this Lease stating the
relocation of the Premises.
25.33 NITROGEN TANK. Tenant shall have the right, at its sole cost and
expense, to install, access, repair, replace, remove, operate and maintain a
nitrogen tank, together with necessary equipment (collectively, the "NITROGEN
TANK") on a pad in the rear of the Building, in the location designated on
EXHIBIT A-1 attached hereto and incorporated herein. Tenant's rights and
obligations with regard to the Nitrogen Tank shall be governed by the following
terms and conditions:
25.33.1 Tenant's right to install, access, replace, repair, remove,
operate and maintain the Nitrogen Tank shall be subject to all governmental
laws, rules and regulations and Landlord makes no representations that such
laws, rules and regulations permit such installation and operation.
25.33.2 The exact size, quality, materials and aesthetics of, and
any required screening for, the Nitrogen Tank shall be subject to Landlord's
prior written consent, which shall not be unreasonably withheld or delayed.
25.33.3 Tenant shall use the Nitrogen Tank so as not to cause any
interference with any other existing tenants or occupants in the Project and in
a manner so as not to damage or interfere with the normal operation of the
Project and related facilities. Tenant shall be solely responsible for any
damage caused as a result of the Nitrogen Tank and shall indemnify, protect,
defend and hold Landlord and the Landlord Parties harmless with regard to any
Claims relating to the Nitrogen Tank, as provided in Section 10.1 above.
25.34 The Nitrogen Tank shall remain the sole property of Tenant. Tenant
shall remove the Nitrogen Tank, at Tenant's sole cost and expense, upon the
expiration or sooner termination of this Lease or upon the imposition of any
governmental law or regulation which may require removal, and shall repair the
area in which the Nitrogen Tank is located upon such removal. If Tenant fails to
remove the Nitrogen Tank and repair the Building within thirty (30) days after
the expiration or earlier termination of this Lease, Landlord may do so at
Tenant's expense. The provisions of this Section shall survive the expiration or
earlier termination of this Lease.
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IN WITNESS WHEREOF, Landlord and Tenant have caused their duly authorized
representatives to execute this Lease as of the day and date first above
written.
"LANDLORD" 15015 AVENUE OF SCIENCE ASSOCIATES LLC,
a Delaware limited liability company
By: PV 15015 Avenue of Science LLC,
a Delaware limited liability company,
its managing member
By: ,
-------------------------------------------
a ,
------------------------------------------
Its
----------------------------------------
By: ,
-------------------------------------
a ,
------------------------------------
Its
----------------------------------
By: /s/ Xxxxxxxxxxx Xxxxxx
-------------------------------
Name: Xxxxxxxxxxx Xxxxxx
-----------------------------
Title: Vice President
----------------------------
"TENANT" PDF SOLUTIONS, INC., a Delaware corporation
By: /s/ Xxxx X. Xxxxxxxx
---------------------------------------------
Name: Xxxx X. Xxxxxxxx
----------------------------------------
Its: President and Chief Executive Officer
-----------------------------------------
By: /s/ P. Xxxxxx Xxxxxx
---------------------------------------------
Name: P. Xxxxxx Xxxxxx
---------------------------------------
Its: Chief Financial Officer
----------------------------------------
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EXHIBIT A
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FLOOR PLAN OF PREMISES
[TO BE ATTACHED]
EXHIBIT A - Page 1
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EXHIBIT A-1
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LOCATION OF NITROGEN TANK
[TO BE ATTACHED]
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EXHIBIT B
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RULES AND REGULATIONS
Tenant shall faithfully observe and comply with the following Rules and
Regulations. Landlord shall not be responsible to Tenant for the nonperformance
of any of said Rules and Regulations by or otherwise with respect to the acts or
omissions of any other tenants or occupants of the Project.
1. Tenant shall not alter any lock or install any new or additional locks
or bolts on any doors or windows of the Premises without obtaining Landlord's
prior written consent. Tenant shall bear the cost of any lock changes or repairs
required by Tenant. Two keys will be furnished by Landlord for the Premises, and
any additional keys required by Tenant must be obtained from Landlord at a
reasonable cost to be established by Landlord.
2. All doors opening to public corridors shall be kept closed at all times
except for normal ingress and egress to the Premises, unless electrical hold
backs have been installed.
3. Landlord reserves the right to close and keep locked all entrance and
exit doors of the Building and to exclude from the Building between the hours of
6:00 p.m. and 7:00 a.m. and at all hours on Saturday, Sunday and Holidays (as
defined in the Lease) all persons who do not present a pass or card key to the
Building approved by Landlord. Tenant, its employees and agents must be sure
that the doors to the Building are securely closed and locked when leaving the
Premises if it is after the normal hours of business for the Building. Any
tenant, its employees, agents or any other persons entering or leaving the
Building at any time when it is so locked, or any time when it is considered to
be after normal business hours for the Project may be required to sign the
Building register when so doing. Access to the Building may be refused unless
the person seeking access has proper identification or has a previously arranged
pass for access. Landlord and his agents shall in no case be liable for damages
for any error with regard to the admission to or exclusion from the Project of
any person. In case of invasion, mob, riot, public excitement, or other
commotion, Landlord reserves the right to prevent access to the Project during
the continuance of same by any means it deems appropriate for the safety and
protection of life and property.
4. Landlord shall have the right to prescribe the weight, size and
position of all safes and other heavy property brought into the Building. Safes
and other heavy objects shall, if considered necessary by Landlord, stand on
supports 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 in any case. All damage done to any part of the Project, its contents,
occupants or visitors by moving or maintaining any such safe or other property
shall be the sole responsibility of Tenant and any expense of said damage or
injury shall be borne by Tenant.
5. No furniture, freight, packages, supplies, equipment or merchandise
will be brought into or removed from the Building or carried up or down in the
elevators, except upon prior notice to Landlord, and in such manner, in such
specific elevator, and between such hours as shall be designated by Landlord.
Tenant shall provide Landlord with not less than 24 hours prior notice of the
need to utilize an elevator for any such purpose, so as to provide Landlord with
a reasonable period to schedule such use and to install such padding or take
such other actions or prescribe such procedures as are appropriate to protect
against damage to the elevators or other parts of the Building.
6. Landlord shall have the right to control and operate the public
portions of the Project, the public facilities, the heating and air
conditioning, and any other facilities furnished for the common use of tenants,
in such manner as is customary for comparable building projects in the vicinity
of the Project.
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7. The requirements of Tenant will be attended to only upon application at
the management office of the Project or at such office location designated by
Landlord. Employees of Landlord shall not perform any work or do anything
outside their regular duties unless under special instructions from Landlord.
8. Tenant shall not disturb, solicit, or canvass any occupant of the
Project and shall cooperate with Landlord or Landlord's agents to prevent same.
9. 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 substance of any kind whatsoever shall be thrown therein. The expense of
any breakage, stoppage or damage resulting from the violation of this rule shall
be borne by the tenant who, or whose employees or agents, shall have caused it.
10. Tenant shall not overload the floor of the Premises, nor xxxx, drive
nails or screws, or drill into the partitions, woodwork or plaster or in any way
deface the Premises or any part thereof without Landlord's consent first had and
obtained.
11. Except for vending machines intended for the sole use of Tenant's
employees and invitees, no vending machine or machines of any description other
than fractional horsepower office machines shall be installed, maintained or
operated upon the Premises without the written consent of Landlord.
12. Tenant shall not use any method of heating or air conditioning other
than that which may be supplied by Landlord, without the prior written consent
of Landlord.
13. Tenant shall not use or keep in or on the Premises or the Project any
kerosene, gasoline or other inflammable or combustible fluid or material. Tenant
shall not use, keep or permit to be used or kept, any foul or noxious gas or
substance in or on the Premises, or permit or allow the Premises to be occupied
or used in a manner offensive or objectionable to Landlord or other occupants of
the Project by reason of noise, odors, or vibrations, or interfere in any way
with other Tenants or those having business therein.
14. Tenant shall not bring into or keep within the Project or the Premises
any animals, birds, bicycles or other vehicles.
15. No cooking shall be done or permitted by any tenant on the Premises,
nor shall the Premises be used for the storage of merchandise, for lodging or
for any improper, objectionable or immoral purposes. Notwithstanding the
foregoing, Underwriters' laboratory-approved equipment and microwave ovens may
be used in the Premises for heating food and brewing coffee, tea, hot chocolate
and similar beverages, provided that such use is in accordance with all
applicable federal, state and city laws, codes, ordinances, rules and
regulations, and does not cause odors which are objectionable to Landlord and
other Tenants.
16. Landlord will approve where and how telephone and telegraph wires are
to be introduced to the Premises. No boring or cutting for wires shall be
allowed without the consent of Landlord. The location of telephone, call boxes
and other office equipment affixed to the Premises shall be subject to the
approval of Landlord.
17. Landlord reserves the right to exclude or expel from the Project 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
these Rules and Regulations.
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18. Tenant, its employees and agents shall not loiter in the entrances or
corridors, nor in any way obstruct the sidewalks, lobby, halls, stairways or
elevators, and shall use the same only as a means of ingress and egress for the
Premises.
19. Tenant shall not waste electricity, water or air conditioning and
agrees to cooperate fully with Landlord to ensure the most effective operation
of the Building's heating and air conditioning system, and shall refrain from
attempting to adjust any controls.
20. Tenant shall store all its trash and garbage within the interior of
the Premises. No material shall be placed in the trash boxes or receptacles if
such material is of such nature that it may not be disposed of in the ordinary
and customary manner of removing and disposing of trash and garbage in the city
in which the Building is located without violation of any law or ordinance
governing such disposal. All trash, garbage and refuse disposal shall be made
only through entry-ways and elevators provided for such purposes at such times
as Landlord shall designate.
21. Tenant shall comply with all safety, fire protection and evacuation
procedures and regulations established by Landlord or any governmental agency.
22. Tenant shall assume any and all responsibility for protecting the
Premises from theft, robbery and pilferage, which includes keeping doors locked
and other means of entry to the Premises closed, when the Premises are not
occupied.
23. No awnings or other projection shall be attached to the outside walls
of the Building without the prior written consent of Landlord. No curtains,
blinds, shades or screens shall be attached to or hung in, or used in connection
with, any window or door of the Premises without the prior written consent of
Landlord. The sashes, sash doors, skylights, windows, and doors that reflect or
admit light and air into the halls, passageways or other public places in the
Building shall not be covered or obstructed by Tenant, nor shall any bottles,
parcels or other articles be placed on the windowsills. All electrical ceiling
fixtures hung in offices or spaces along the perimeter of the Building must be
fluorescent and/or of a quality, type, design and bulb color approved by
Landlord.
24. The washing and/or detailing of or, the installation of windshields,
radios, telephones in or general work on, automobiles shall not be allowed on
the Real Property.
25. The term "PERSONAL GOODS OR SERVICES VENDORS" as used herein means
persons who periodically enter the Building of which the Premises are a part for
the purpose of selling goods or services to a tenant, other than goods or
services which are used by the Tenant only for the purpose of conducting its
business in the Premises. "Personal goods or services" include, but are not
limited to, drinking water and other beverages, food, barbering services and
shoe shining services. Landlord reserves the right to prohibit personal goods
and services vendors from access to the Building except upon Landlord's prior
written consent and upon such reasonable terms and conditions, including, but
not limited to, the payment of a reasonable fee and provision for insurance
coverage, as are related to the safety, care and cleanliness of the Building,
the preservation of good order thereon, and the relief of any financial or other
burden on Landlord or other tenants occasioned by the presence of such vendors
or the sale by them of personal goods or services to Tenant or its employees.
Under no circumstance shall the personal goods or services vendors display their
products in a public or common area, including corridors and elevator lobbies.
If necessary for the accomplishment of these purposes, Landlord may exclude a
particular vendor entirely or limit the number of vendors who may be present at
any one time in the Building.
26. Tenant must comply with requests by the Landlord concerning the
informing of their employees of items of importance to the Landlord.
27. Tenant shall comply with any non-smoking ordinance adopted by any
applicable governmental authority.
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28. Landlord may waive any one or more of these Rules and Regulations for
the benefit of any particular tenant or tenants, but no such waiver by Landlord
shall be construed as a waiver of such Rules and Regulations in favor of any
other tenant or tenants, nor prevent Landlord from thereafter enforcing any such
Rules or Regulations against any or all tenants of the Project. Landlord
reserves the right at any time to change or rescind any one or more of these
Rules and Regulations, or to make such other and further reasonable Rules and
Regulations as in Landlord's judgment may from time to time be necessary for the
management, safety, care and cleanliness of the Premises and Project, and for
the preservation of good order therein, as well as for the convenience of other
occupants and tenants therein. Landlord shall not be responsible to Tenant or to
any other person for the nonobservance of the Rules and Regulations by another
tenant or other person. Tenant shall be deemed to have read these Rules and
Regulations and to have agreed to abide by them as a condition of its occupancy
of the Premises.
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EXHIBIT C
CARMEL CORPORATE PLAZA
AMENDMENT TO LEASE
This AMENDMENT TO LEASE ("AMENDMENT") is made and entered into effective
as of _______________, 200_, by and between 15015 AVENUE OF SCIENCE ASSOCIATES
LLC, a Delaware limited liability company ("Landlord"), and PDF SOLUTIONS, INC.,
a Delaware corporation ("TENANT")
R E C I T A L S:
A. Landlord and Tenant entered into that certain Office Lease dated as of
____________________ (the "LEASE") pursuant to which Landlord leased to Tenant
and Tenant leased from Landlord certain "Premises", as described in the Lease,
known as Suite ____ of the Building located at 00000 Xxxxxx xx Xxxxxxx, Xxx
Xxxxx, Xxxxxxxxxx 00000-0000.
B. Except as otherwise set forth herein, all capitalized terms used in
this Amendment shall have the same meaning gives such terms in the Lease.
C. Landlord and Tenant desire to amend the Lease to confirm the
commencement and expiration dates of the Lease Term, as hereinafter provided.
NOW, THEREFORE, in consideration of the foregoing Recitals and the mutual
covenants contained herein, and for other good and valuable consideration, the
receipt and sufficiency of which are hereby acknowledged, the parties hereto
agree as follows:
1. Confirmation of Dates. The parties hereby confirm that (a) the Premises
are Ready for Occupancy and Landlord has performed all work required to be
performed by Landlord pursuant to the Tenant Work Letter attached to the Lease,
(b) the Lease Term for the Lease commenced as of ____________________ (the
"LEASE COMMENCEMENT DATE") for a term of __________ (____) years ending on
____________________ (the "LEASE EXPIRATION DATE") (unless sooner terminated or
extended as provided in the Lease) and (c) in accordance with the Lease, Rent
commenced to accrue on ____________________.
2. No Further Modification. Except as set forth in this Amendment, all of
the terms and provisions of the Lease shall remain unmodified and in full force
and effect.
EXHIBIT C - Page 1
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IN WITNESS WHEREOF, this Amendment has been executed as of the day and
year first above written.
"LANDLORD" 15015 AVENUE OF SCIENCE ASSOCIATES LLC,
a Delaware limited liability company
By: PV 15015 Avenue of Science LLC,
a Delaware limited liability company,
its managing member
By: ,
-------------------------------------------
a ,
------------------------------------------
Its
----------------------------------------
By: ,
-------------------------------------
a ,
------------------------------------
Its
----------------------------------
By:
-------------------------------
Name:
-----------------------------
Title:
----------------------------
"TENANT" PDF SOLUTIONS, INC., a Delaware corporation
By:
---------------------------------------------
Name:
----------------------------------------
Its:
-----------------------------------------
By:
---------------------------------------------
Name:
---------------------------------------
Its:
----------------------------------------
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EXHIBIT D
CARMEL CORPORATE PLAZA
TENANT WORK LETTER
Tenant acknowledges and agrees that the Premises have previously been
constructed including interior tenant improvements therein, and is satisfactory
and shall be accepted by Tenant in its "AS IS" condition as of the date of
execution of this Lease and on the Lease Commencement Date; provided, however,
that Landlord shall construct certain modifications to the interior of the
Premises pursuant to the Approved Working Drawings in accordance with the
following provisions of this Tenant Work Letter.
SECTION 1
CONSTRUCTION DRAWINGS FOR THE PREMISES
Prior to the execution of this Lease, Landlord and Tenant have approved a
detailed space plan for the construction of certain improvements in the
Premises, which space plan has been prepared by Facility Solutions, and is
attached to the Lease as EXHIBIT A (the "FINAL SPACE PLAN"). Based upon and in
conformity with the Final Space Plan, Landlord shall cause its architect and
engineers to prepare and deliver to Tenant, for Tenant's approval, detailed
specifications and engineered working drawings for the tenant improvements shown
on the Final Space Plan (the "WORKING DRAWINGS"). The Working Drawings shall
incorporate modifications to the Final Space Plan as necessary to comply with
the floor load and other structural and system requirements of the Building. To
the extent that the finishes and specifications are not completely set forth in
the Final Space Plan for any portion of the tenant improvements depicted
thereon, the actual specifications and finish work shall be in accordance with
the specifications for the Building's standard improvement package items, as
determined by Landlord. Within three (3) business days after Tenant's receipt of
the Working Drawings, Tenant shall approve or disapprove the same, which
approval shall not be unreasonably withheld; provided, however, that Tenant may
only disapprove the Working Drawings to the extent such Working Drawings are
inconsistent with the Final Space Plan and only if Tenant delivers to Landlord,
within such three (3) business days period, specific changes proposed by Tenant
which are consistent with the Final Space Plan and do not constitute changes
which would result in any of the circumstances described in items (i) through
(iv) below. If any such revisions are timely and properly proposed by Tenant,
Landlord shall cause its architect and engineers to revise the Working Drawings
to incorporate such revisions and submit the same for Tenant's approval in
accordance with the foregoing provisions, and the parties shall follow the
foregoing procedures for approving the Working Drawings until the same are
finally approved by Landlord and Tenant. Upon Landlord's and Tenant's approval
of the Working Drawings, the same shall be known as the "APPROVED WORKING
DRAWINGS". Once the Approved Working Drawings have been approved by Landlord and
Tenant, Tenant shall make no changes, change orders or modifications thereto
without the prior written consent of Landlord, which consent may be withheld in
Landlord's sole discretion if such change or modification would: (i) directly or
indirectly delay the Substantial Completion of the Premises; (ii) increase the
cost of designing or constructing the Tenant Improvements above the cost of the
tenant improvements depicted in the Final Space Plan; (iii) be of a quality
lower than the quality of the standard improvement package items for the
Building; and/or (iv) require any changes to the base, shell and core work or
structural improvements or systems of the Building. The Final Space Plan,
Working Drawings and Approved Working Drawings shall be collectively referred to
herein as, the "CONSTRUCTION DRAWINGS". The tenant improvements shown on the
Approved Working Drawings shall be referred to herein as the "TENANT
IMPROVEMENTS".
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SECTION 2
OVER-ALLOWANCE AMOUNT
Landlord and Tenant hereby agree that Landlord shall, at Landlord's
expense (except as provided in this Section 2) cause a contractor designated by
Landlord (the "CONTRACTOR") to (i) obtain all applicable building permits for
construction of the Tenant Improvements, and (ii) construct the Tenant
Improvements as depicted on the Approved Working Drawings, in compliance with
such building permits and all applicable laws in effect at the time of
construction, and in good workmanlike manner; provided, however, in the event
that (A) the Approved Working Drawings differ with respect to the quality and
quantity of those tenant improvements depicted on the Final Space Plan, and/or
(B) Tenant shall request any changes or substitutions to any of the Construction
Drawings, and such differences, changes and/or substitutions result in increased
costs of construction in excess of the costs of those tenant improvements
depicted on the Final Space Plan, then Tenant shall pay such excess costs to
Landlord in cash within five (5) days after Landlord's request therefor.
Notwithstanding the foregoing to the contrary, in no event shall Landlord be
obligated to pay for any of Tenant's furniture, computer systems, telephone
systems, equipment or other personal property which may be depicted on the
Construction Drawings; such items shall be paid for by Tenant.
SECTION 3
READY FOR OCCUPANCY; SUBSTANTIAL COMPLETION OF
THE TENANT IMPROVEMENTS
3.1 READY FOR OCCUPANCY; SUBSTANTIAL COMPLETION. For purposes of this
Lease, the Premises shall be "READY FOR OCCUPANCY" upon Substantial Completion
of the Premises. For purposes of this Lease, "SUBSTANTIAL COMPLETION" of the
Premises shall occur upon (i) the completion of construction of the Tenant
Improvements in the Premises pursuant to the Approved Working Drawings, with the
exception of any punch list items and any tenant fixtures, work-stations,
built-in furniture, or equipment to be installed by Tenant or under the
supervision of Contractor, and (ii) the issuance by the City of San Diego,
California of a temporary certificate of occupancy (or comparable document) for
the Premises.
3.2 DELAY OF THE SUBSTANTIAL COMPLETION OF THE PREMISES. If there shall be
a delay or there are delays in the Substantial Completion of the Premises as a
direct, indirect, partial, or total result of any of the following
(collectively, "TENANT DELAYS"):
3.2.1 Tenant's failure to timely approve the Working Drawings or any
other matter requiring Tenant's approval;
3.2.2 A breach by Tenant of the terms of this Tenant Work Letter or
the Lease;
3.2.3 Tenant's request for changes in any of the Construction
Drawings;
3.2.4 Tenant's requirement for materials, components, finishes or
improvements which are not available in a commercially reasonable time given the
estimated date of Substantial Completion of the Premises, as set forth in the
Lease, or which are different from, or not included in, Landlord's standard
improvement package items for the Building;
3.2.5 Changes to the base, shell and core work, structural
components or structural components or systems of the Building required by the
Approved Working Drawings; or
3.2.6 Any other acts or omissions of Tenant, or its agents, or
employees;
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then, notwithstanding anything to the contrary set forth in the Lease and
regardless of the actual date of Substantial Completion, the Lease Commencement
Date (as set forth in Section 7.3 of the Summary) shall be deemed to be the date
the Lease Commencement Date would have occurred if no Tenant Delay or Delays, as
set forth above, had occurred.
SECTION 4
MISCELLANEOUS
Provided that Tenant and its agents do not interfere with Contractor's
work in the Building and the Premises, Contractor shall allow Tenant access to
the Premises prior to the Substantial Completion of the Premises for the purpose
of Tenant installing overstandard equipment or fixtures (including Tenant's data
and telephone equipment) in the Premises. Prior to Tenant's entry into the
Premises as permitted by the terms of this Section 4, Tenant shall submit a
schedule to Landlord and Contractor, for their approval, which schedule shall
detail the timing and purpose of Tenant's entry. Tenant shall hold Landlord
harmless from and indemnify, protect and defend Landlord against any loss or
damage to the Premises or Real Property and against injury to any persons caused
by Tenant's actions pursuant to this Section 4.
SECTION 5
RELOCATION OF TENANT LAB EQUIPMENT;
REIMBURSEMENT OF COSTS TO RELOCATE TENANT LAB EQUIPMENT
Landlord has agreed to reimburse Tenant for the reasonable, actual and
direct costs incurred by Tenant to relocate its lab equipment from its current
premises to the new Premises at the commencement of the Lease Term (including,
without limitation, any of the costs incurred (if any) in redistributing the air
conditioning within the Premises to accommodate any special requirements for
such lab equipment). Such reimbursement shall be made within thirty (30) days
after Landlord's receipt of a written statement from Tenant setting forth the
costs incurred by Tenant, together with invoices supporting the same.
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EXHIBIT E
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FORM OF TENANT'S ESTOPPEL CERTIFICATE
The undersigned, as Tenant under that certain Office Lease (the "LEASE")
made and entered into as of _______________, 200_ and between 15015 AVENUE OF
SCIENCE ASSOCIATES LLC, a Delaware limited liability company, as Landlord, and
the undersigned as Tenant, for Premises on the __________ (____) floor(s) of the
Building located at 00000 Xxxxxx xx Xxxxxxx, Xxx Xxxxx, Xxxxxxxxxx 00000-0000
hereby certifies as follows:
1. Attached hereto as EXHIBIT A is a true and correct copy of the Lease
and all amendments and modifications thereto. The documents contained in EXHIBIT
A represent the entire agreement between the parties as to the Premises.
2. The undersigned has commenced occupancy of the Premises described in
the Lease, currently occupies the Premises, and the Lease Term commenced on
____________________.
3. The Lease is in full force and effect and has not been modified,
supplemented or amended in any way except as provided in EXHIBIT A.
4. Tenant has not transferred, assigned, or sublet any portion of the
Premises nor entered into any license or concession agreements with respect
thereto except as follows:
5. Tenant shall not modify the documents contained in EXHIBIT A or prepay
any amounts owing under the Lease to Landlord in excess of thirty (30) days
without the prior written consent of Landlord's mortgagee.
6. Base Rent became payable on ____________________.
7. The Lease Term expires on ____________________.
8. All conditions of the Lease to be performed by Landlord necessary to
the enforceability of the Lease have been satisfied and Landlord is not in
default thereunder.
9. No rental has been paid in advance and no security has been deposited
with Landlord except as provided in the Lease.
10. As of the date hereof, there are no existing defenses or offsets that
the undersigned has, which preclude enforcement of the Lease by Landlord.
11. All monthly installments of Base Rent, all Additional Rent and all
monthly installments of estimated Additional Rent have been paid when due
through ____________________. The current monthly installment of Base Rent is
$__________.
12. The undersigned acknowledges that this Estoppel certificate may be
delivered to Landlord's prospective mortgagee, or a prospective purchaser, and
acknowledges that it recognizes that if same is done, said mortgagee,
prospective mortgagee, or prospective purchaser will be relying upon the
statements contained herein in making the loan or acquiring the property of
which the Premises are a part, and in accepting an assignment of the Lease as
collateral security, and that receipt by it of this certificate is a condition
of making of the loan or acquisition of such property.
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13. If Tenant is a corporation or partnership, each individual executing
this Estoppel Certificate on behalf of Tenant hereby represents and warrants
that Tenant is a duly formed and existing entity qualified to do business in
California and that Tenant has full right and authority to execute and deliver
this Estoppel Certificate and that each person signing on behalf of Tenant is
authorized to do so.
Executed at ____________________ on the _____ day of _______________,
200_.
"TENANT" PDF SOLUTIONS, INC., a Delaware corporation
By:
------------------------------------------
Name:
-------------------------------------
Its:
-------------------------------------
By:
------------------------------------------
Name:
-------------------------------------
Its:
-------------------------------------
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CARMEL CORPORATE PLAZA
OFFICE LEASE
15015 AVENUE OF SCIENCE ASSOCIATES LLC,
A DELAWARE LIMITED LIABILITY COMPANY,
AS LANDLORD,
AND
PDF SOLUTIONS, INC.,
A DELAWARE CORPORATION
AS TENANT.
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CARMEL CORPORATE PLAZA
SUMMARY OF BASIC LEASE INFORMATION
This Summary of Basic Lease Information (the "SUMMARY") is hereby
incorporated by reference into and made a part of the attached Office Lease.
Each reference in the Office Lease to any term of this Summary shall have the
meaning as set forth in this Summary for such term. In the event of a conflict
between the terms of this Summary and the Office Lease, the terms of the Office
Lease shall prevail. Any initially capitalized terms used herein and not
otherwise defined herein shall have the meaning as set forth in the Office
Lease.
TERMS OF LEASE
(REFERENCES ARE TO THE OFFICE LEASE) DESCRIPTION
------------------------------------ -----------
1. Dated as of: April 1, 2003 (the "EFFECTIVE DATE")
2. Landlord: 15015 AVENUE OF SCIENCE ASSOCIATES
LLC, a Delaware limited liability company
3. Address of Landlord c/o The Xxxxxxx Group
(Section 29.14): 0000 Xx Xxxxx Xxxxxxx Xxxxx, Xxxxx 000
Xxx Xxxxx, XX 00000
Attn: Xx. Xxxx Xxxx
and
Xxxx, Xxxxxx & Roeper, LLP
0000 Xxxxxxxxxx Xxxxxx Xxxx, Xxxxx 000
Xxx Xxxxx, XX 00000
Attn: Xxxx X. Xxxxxx, Esq.
4. Tenant: PDF SOLUTIONS, INC.,
a Delaware corporation
5. Address of Tenant PDF Solutions, Inc.
(Section 29.14): 00000 Xxxxxx xx Xxxxxxx
Xxx Xxxxx, XX 00000
Attn: P. Xxxxxx Xxxxxx, CFO
(Prior to Lease Commencement Date)
and
00000 Xxxxxx xx Xxxxxxx, Xxxxx 000
Xxx Xxxxx, Xxxxxxxxxx 00000-0000
Attn: P. Xxxxxx Xxxxxx, CFO
(After Lease Commencement Date)
6. Premises (Article 1):
6.1 Premises: Approximately 11,221 rentable square feet
of space located on the first (1st) floor
of the Building (as defined below), as set
forth in EXHIBIT A attached hereto, known
as Suite 150.
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6.2 Building: The Premises are located in the "BUILDING"
whose address is 00000 Xxxxxx xx Xxxxxxx,
Xxx Xxxxx, Xxxxxxxxxx 00000-0000.
7. Term (Article 2):
7.1 Lease Term: Sixty (60) months
7.2 Option Term(s): None.
7.3 Lease Commencement Date: The date that the Premises are Ready For
Occupancy (as defined in EXHIBIT D
attached hereto).
7.4 Lease Expiration Date: The last day of the month in which the
sixtieth (60th) anniversary of the Lease
Commencement Date occurs.
7.5 Lease Amendment: Landlord and Tenant shall confirm the
Lease Commencement Date and the Lease
Expiration Date in an Amendment to the
Lease (EXHIBIT C) to be executed pursuant to
Article 2 of the Office Lease.
8. Base Rent (Article 3):
Monthly Base Rental
Monthly Installment Rate per
Period Annual Base Rent of Base Rent Rentable Square Foot
------------------------- ------------------ --------------------- ----------------------
Lease Commencement ** $8,415.75 $0.75
Date - 12/31/03*
1/1/04 - 12/31/04 $208,710.60 $17,392.55 $1.55
1/1/05 - 12/31/05 $215,443.20 $17,953.60 $1.60
1/1/06 - 12/31/06 $222,175.86 $18,514.65 $1.65
1/1/07 - 12/31/07 $228,908.40 $19,075.70 $1.70
1/1/08 - Lease ** $19,636.75 $1.75
Expiration Date
* Subject to Section 3.2 below.
** Note: Years 2003 and 2008 will be partial years.
9. Additional Rent (Article 4):
9.1 Tenant's Share of Direct 13.187% (11,221 rentable square feet
Expenses (and Utilities within the Premises/85,090 rentable square
Costs): feet within the Building) (See
Section 4.2.6 of Office Lease).
10. Security Deposit (Article 20): $19,636.75.
11. Guarantor(s) (Article 20): None.
12. Number of Parking Passes(Article 24): Thirty-five (35) unreserved parking passes
for the Premises.
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13. Brokers (Section 25.19): Colliers International (Landlord and Tenant)
14. Tenant Improvement Allowance See Section 5 of the Tenant Work Letter.
(EXHIBIT D):
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The foregoing terms of this Summary are hereby agreed to by Landlord and
Tenant.
"LANDLORD" 15015 AVENUE OF SCIENCE ASSOCIATES LLC,
a Delaware limited liability company
By: PV 15015 Avenue of Science LLC,
a Delaware limited liability company,
its managing member
By: ,
-------------------------------------------
a ,
------------------------------------------
Its
----------------------------------------
By: ,
-------------------------------------
a ,
------------------------------------
Its
----------------------------------
By:
-------------------------------
Name:
-----------------------------
Title:
----------------------------
"TENANT" PDF SOLUTIONS, INC., a Delaware corporation
By:
---------------------------------------------
Name:
----------------------------------------
Its:
-----------------------------------------
By:
---------------------------------------------
Name:
----------------------------------------
Its:
-----------------------------------------
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TABLE OF CONTENTS
PAGE
----
ARTICLE 1 PROJECT, BUILDING AND PREMISES................................. 1
ARTICLE 2 LEASE TERM..................................................... 2
ARTICLE 3 BASE RENT...................................................... 2
ARTICLE 4 ADDITIONAL RENT................................................ 3
ARTICLE 5 USE OF PREMISES................................................ 7
ARTICLE 6 SERVICES AND UTILITIES......................................... 8
ARTICLE 7 REPAIRS........................................................ 10
ARTICLE 8 ADDITIONS AND ALTERATIONS...................................... 10
ARTICLE 9 COVENANT AGAINST LIENS......................................... 12
ARTICLE 10 INSURANCE...................................................... 12
ARTICLE 11 DAMAGE AND DESTRUCTION......................................... 14
ARTICLE 12 CONDEMNATION................................................... 15
ARTICLE 13 COVENANT OF QUIET ENJOYMENT.................................... 16
ARTICLE 14 ASSIGNMENT AND SUBLETTING...................................... 16
ARTICLE 15 SURRENDER OF PREMISES; REMOVAL OF TRADE FIXTURES............... 19
ARTICLE 16 HOLDING OVER................................................... 20
ARTICLE 17 ESTOPPEL CERTIFICATES.......................................... 21
ARTICLE 18 SUBORDINATION.................................................. 21
ARTICLE 19 DEFAULTS; REMEDIES............................................. 21
ARTICLE 20 SECURITY DEPOSIT AND GUARANTY.................................. 24
ARTICLE 21 SIGNS.......................................................... 24
ARTICLE 22 COMPLIANCE WITH LAW............................................ 25
ARTICLE 23 ENTRY BY LANDLORD.............................................. 25
ARTICLE 24 TENANT PARKING................................................. 26
ARTICLE 25 MISCELLANEOUS PROVISIONS....................................... 26
EXHIBITS:
A FLOOR PLAN OF PREMISES
A-1 LOCATION OF NITROGEN TANK
B RULES AND REGULATIONS
C AMENDMENT TO LEASE
D TENANT WORK LETTER
E ESTOPPEL CERTIFICATE
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CARMEL CORPORATE PLAZA
INDEX OF DEFINED TERMS
Actual Rate ..................................................... 2
Adjustment Period ............................................... 2
Affiliate ....................................................... 19
Alterations ..................................................... 10
Amendment ....................................................... Exhibit C
Approved Working Drawings ....................................... Exhibit D
Base Rent ....................................................... 2
Brokers ......................................................... 29
Building ........................................................ Summary
Building Hours .................................................. 9
Child Care Facilities ........................................... 27
Child Care Provider ............................................. 27
Claims .......................................................... 12
Construction Drawings ........................................... Exhibit D
Contractor ...................................................... Exhibit D
Control ......................................................... 19
Cost Pools ...................................................... 4
Direct Expenses ................................................. 3
Effective Date .................................................. Summary
Estimate ........................................................ 6
Estimate Statement .............................................. 6
Estimated Direct Expenses ....................................... 6
Estimated Utilities Costs ....................................... 6
Excluded Changes ................................................ 25
Expense Year .................................................... 3
Final Space Plan ................................................ Exhibit D
Force Majeure ................................................... 28
Hazardous Materials ............................................. 8
Holidays ........................................................ 9
HVAC ............................................................ 9
Insurance Start Date ............................................ 13
Interest Rate ................................................... 4
Landlord ........................................................ 1
Landlord Parties ................................................ 12
Lease ........................................................... 1
Lease Commencement Date ......................................... 2
Lease Expiration Date ........................................... 2
Lease Term ...................................................... 2
Nitrogen Tank ................................................... 32
Notices ......................................................... 28
Operating Expenses .............................................. 3
Other Improvements .............................................. 30
Permitted Alteration ............................................ 11
personal goods or services vendors .............................. Exhibit B
Premises ........................................................ 1
Project ......................................................... 1
Project Parking Area ............................................ 1
Proposition 13 .................................................. 5
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Ready for Occupancy ............................................. Exhibit D
Real Property ................................................... 1
Remedial Work ................................................... 8
Renovations ..................................................... 31
rent ............................................................ 23
Rules and Regulations ........................................... 1
Security Deposit ................................................ 24
Statement ....................................................... 6
Subject Space ................................................... 16
Subleasing Costs ................................................ 17
Substantial Completion .......................................... Exhibit D
Summary ......................................................... Summary
Tax Expenses .................................................... 5
Tenant .......................................................... 1
Tenant Affiliates ............................................... 8
Tenant Delays ................................................... Exhibit D
Tenant Improvements ............................................. Exhibit D
Tenant's Share .................................................. 6
Transfer Notice ................................................. 16
Transfer Premium ................................................ 17
Transferee ...................................................... 16
Transfers ....................................................... 16
Utilities Costs ................................................. 6
Working Drawings ................................................ Exhibit D
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