EXHIBIT 10.7
SUBLEASE AGREEMENT
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This agreement is entered into on this 25th day of June, 1996 between PlanetWeb,
Inc. ("Sublessee") and NeoMagic Corporation ("Sublessor"). The Sublessor agrees
to rent to Sublessee, on terms and conditions outlined in this agreement,
certain space as described more fully in the "Premises" section below.
1) PREMISES
Approximately 3,166 square feet of office area on the second floor of that
larger building commonly designated as 0000 Xxx Xxxxxx, Xxxxx Xxxxx, Xxxxxxxxxx
("Premises") and as further shown on Exhibit "A" attached hereto.
2) USE OF PREMISES
Office, research and development, designing, prototyping, marketing and sales,
and other legal uses.
3) SUBLEASE TERM
The term of this sublease will be for one (1) year commencing on May 28, 1996
and ending May 31, 1997. If NeoMagic requires this space at any time during the
term of this agreement, PlanetWeb agrees to vacate the premises upon three (3)
months written notice from NeoMagic.
4) RENT
Monthly rent shall be:
Months:
1-3 $1.00 per square foot
4-6 $1.50 per square foot
7-12 $1.75 per square foot
Interim rent for the period of May 28 through May 31, 1996 will be paid at $1.00
per square foot for 4 days, or $422.13.
This is a full service rent. Lessor shall be responsible for real property
taxes, utilities and general operating expenses. Lessor shall not be responsible
for providing phone service, network administration and other computer
requirements.
In addition to rent defined above, Sublessee will pay to NeoMagic a flat monthly
fee of $300 for standard janitorial services provided by NeoMagic.
If PlanetWeb occupies more than the agreed upon 3,166 square feet, rent will be
adjusted accordingly. If PlanetWeb vacates the property prior to termination of
this lease, they will pay NeoMagic an amount to bring the average monthly rent
to $4,749 per month for the actual months of occupancy.
PlanetWeb agrees to be bound by the same terms and conditions as those listed in
NeoMagic's Master Lease attached hereto, specifically as related to insurance
requirements and hazardous materials.
PlanetWeb must provide a certificate of insurance to NeoMagic for the $2 Million
liability umbrella and Worker's Compensation Insurance, as required by the
Master Lease.
5) TENANT IMPROVEMENT ALLOWANCE
None
6) PREPAID RENT AND SECURITY DEPOSIT
At Sublease execution, Sublessee will deposit with Sublessor the first month's
rent and a security deposit of $3,000. Security deposit will be refundable to
Sublessee upon termination of lease and delivery of said space to NeoMagic in
substantially the same condition as it is today.
7) OPERATING EXPENSES
During the term of the Sublease, Sublessee shall not be responsible for
operating expense increases or capital improvement costs.
8) COMMON AREAS AND CONFIDENTIALITY
Sublessee will share the main lobby with NeoMagic and will have access to
NeoMagic's office areas. PlanetWeb agrees to reasonably contain its use of the
building to the common areas (lobbies, restrooms, etc.) and to the areas
specifically rented per this agreement. PlanetWeb agrees to execute a
confidentiality agreement to protect NeoMagic in the event PlanetWeb personnel
become aware of NeoMagic Confidential information, and to instruct their
employees as to the treatment of such information if it inadvertently becomes
available to them.
9) SIGNAGE
NeoMagic will allow PlanetWeb to provide reasonable signage for PlanetWeb at the
driveway entrance to the complex and outside the main lobby, affixed to the
front windows. This signage will be provided at the sole cost of PlanetWeb and
is subject to the advance approval of NeoMagic, which will not be unreasonably
withheld.
10) CUBICLES
PlanetWeb desires to install cubicles to house its employees in the leased
premises. NeoMagic agrees that, if PlanetWeb purchases the same cubicles that
are the standard NeoMagic type and color, that, at the end of the lease, if
PlanetWeb so desires, NeoMagic will purchase those cubicles from PlanetWeb at a
then agreed upon price based on original cost less a reasonable estimate for
depreciation and normal wear and tear.
11) CONTINGENCIES
This proposal to sublease is contingent upon the following items:
1) Sublessee's review and acceptance of the terms of Master Lease Agreement
2) Sublessee's delivery of certificate of insurance as prescribed in said
Master Lease Agreement
3) Agreement by both parties to above terms and conditions.
4) Execution of mutual non-disclosure by both parties.
READ AND APPROVED:
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LESSEE: PLANETWEB
BY: /s/ [signature illegible]
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TITLE: VP Engineering, CEO
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DATE: June 25, 1996
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LESSOR: NEOMAGIC, CORP.
BY: /s/ Xxxx Xxxxxxx
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TITLE: VP, CFO
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DATE: June 26, 1996
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EXHIBIT A
[2ND FLOORPLAN OF
TENANT IMPROVEMENT
NEOMAGIC
0000 XXX XXXXXX,
XXXXX XXXXX, XXXXXXXXXX]
