EXHIBIT 10.5
FIRST ADDENDUM TO LEASE BY AND BETWEEN
NEWPORT PLACE ASSOCIATES AND HOMELIFE REALTY SERVICES
DATED APRIL 12, 1990 FOR THE PROPERTY LOCATED AT
0000 XXXXXXX XXXXX, XXXXX 000, XXXXXXX XXXXX, XXXXXXXXXX 00000
FIRST ADDENDUM TO LEASE
This Addendum to Lease dated April 12, 1990 by and between HomeLife Realty
Services, Inc., a Delaware corporation ("Tenant") and Newport Place
Associates, a California Limited partnership ("Landlord") shall modify said
Lease as follows;
38. Rent. Tenant shall pay the Base Annual Rent, in the manner provided
for in Section 2 - Article 1.7,
in accordance with the following schedule:
Period Monthly Base-Rental Payment
-------------- -------------------
Months 1-12 $2.15 per rentable square foot
Months 13-24 $2.20 per rentable square foot
Months 25-36 $2.25 per rentable squarefoot
During months one (1) through six- (6) rent shall be paid at a rate of $0.00
per rentable square foot per month, and during months seven (7) through
twelve (12) rent shall be paid at a rate of $1.15 per rentable square foot
per month. The balance of the monthly rent due ($2.15 - $0.00 = $2.15 and
$2.15 - $1.15 = $1.00) shall not be paid but shall accrue and shall be
forgiven on June 30, 1993, provided that there has been no prior termination
of this Lease, and that Tenant is not then in default hereunder.
For purposes of this Section 38, the term 'termination' shall not include a
termination following destruction under Section 10.1, a termination following
condemnation under Section 11.1, or a termination following a request by
Tenant that Landlord consent to an assignment of this Lease under Sections
1.11 and/or 3.3.
39. BASE YEAR EXPENSES. The Base Year for computing the Base Amount for
Operating Expense and Taxes shall the first twelve (12) months of Tenant's
occupancy. A completed building projected to 95% occupancy shall be utilized
for computing expenses.
40. TENANT IMPROVEMENTS. Landlord will construct, at Landlord's expense, the
improvements described on the space plan prepared by Tsutsumida Xxxxxxx
Partnership attached hereto as Exhibit "A".
41. PARKING. Tenant will be allocated four (4) parking spaces per each
one thousand (1,000) square feet if rentable area.
Tenant's parking spaces will be unreserved, in common spaces. Tenant shall
pay a monthly charge for the parking spaces in accordance with the following
schedule:
Months 1-18 $1.00 per unreserved space per month
Months 19-24 $10.00 per unreserved space per month
Months 25-36 $30.00 per unreserved space per month
42. OPTION TO EXTEND. Provided Tenant has not been in default of any of its
obligations under the Lease Agreement, or any addenda or amendments to the
Lease Agreement, Tenant shall have the option to extend the Lease Term for an
additional three (3) years. Tenant shall notify Landlord, by certified mail,
of its election to exercise its option to extend, at lease one hundred eight
(180) days prior to the expiration of the primary Lease term.
RENT DURING OPTION TO EXTEND. Monthly installments of Base Annual Rent
for the option period shall be in accordance with the then prevailing
market rates, terms, and conditions, but in no event Less than the
rental rate being paid by Tenant in the third year of the Lease term.
43. HOURS OF OPERATION. Standard hours of operation for building
services xxxx be 8:00 a.m. to 5:30 p.m. on weekdays, and 9:00 a.m. to 12:00
p.m. on Saturdays (if requested in advance) excluding holidays. The standard
hours of operation will be subject to change if required by governmental
action.
44. AFTER-HOURS H.V.A.C. Air conditioning services requested during
non-standard hours (including all holidays) will be billed to Tenant at
thirty-five dollars ($35.00) per hour, which charge is subject to increase
only in proportion
to increases in electrical utility charges.
45. XXXX XXXXX AIRPORT. Tenant acknowledges the City of Newport Beach's
policy regarding Xxxx Xxxxx Airport:
a. The Xxxx Xxxxx Airport will not be able to provide adequate air
service for business establishments which rely on such service;
b. The City of Newport Beach xxxx continue to oppose additional
commercial area service expansions at the Xxxx Xxxxx Airport;
c. Tenant will not actively oppose any action taken by the City of
Newport Beach to Limit jet air service at Xxxx Xxxxx Airport.
46. TRANSPORTATION DEMAND MANAGEMENT (TDM) PROGRAM. Tenant acknowledges the
City of Newport Beach requirement that Tenant shall participate in a city
approved Transportation Demand Management (TDM) Program. The program is to be
developed, coordinated, and implemented by Landlord. Tenant shall participate
in the TDM program which shall, at a minimum, include the following:
a. A program coordinator which shall be an employee of the
Landlord. The program coordinator shall have the specific
assignment of developing, coordinating and overseeing the
program. Each Tenant with 50 or more on-site employees shall
designate one management employee to serve as a contact for
the tenants and employees and program coordinator.
b. A goal to reduce by 25% or more, the a.m. and p.m.
peak hour trip generation rates, the reduction
to be based upon a comparison with standard city
rates.
c. METHODS: The TDM program shall identify, at a minimum, the
following methods for reducing peak hour trip generation rates, and each
Lease for each Tenant shall obligate the Tenant to use one or more of the
following methods in implementing the TDM program:
FLEX-TIME. May consist of assigned staggered hours or may allow
employees to select their own hours if acceptable to the
Tenant's needs and results in desired trip reductions.
Flex-time also includes four day or other alternate work
weeks.
PUBLIC TRANSPORTATION. Each Tenant shall be required to
participate in the Orange County Transit District
ridesharing computer match program. Public Transit
route information shall be made available in
the lobby of the building or any other accessible
public place.
CARPOOLING. This method utilizes vehicles already owned by
employees for ridesharing.
VANPOOLING. This method is similar to carpooling except that it usually
includes the purchase of a Large, comfortable vehicle. This
method can be supported with information on vehicle
acquisition and financing, and may include financial
assistance or the provision of vehicles.
The city shall have the right to require the Landlord, or the Landlord's
successor-in-interest, to modify the TDM Program, establishing a level of
participation of Tenants in each method of the program, in the event a 25%
reduction in peak hour trip generation has not been achieved during any
reporting period.
HAZARDOUS MATERIALS. Tenant shall not use the Demised Premises or permit
anything to be done in or about the Demised Premises which will in any
way conflict with any Law, statute, ordinance or governmental rule or
regulation now in force or which may hereafter be enacted or
promulgated, including, but not Limited to, Laws regulating the
generation, use, storage or transportation of any material or substance
("Hazardous Materials") which is (a) defined as a "hazardous waste,"
"extremely hazardous waste" or "restricted hazardous waste" under
Sections 25115, 25117 or 25122.7, or listed pursuant to Section 25140
of the California Health and Safety Code, Division 20, Chapter 6.5
(Hazardous Waste Control Law); (b) defined as a "hazardous substance"
under Section 25316 of the California Health and Safety Code, Division
20, Chapter 6.8 (Xxxxxxxxx-Xxxxxxx-Xxxxxx Hazardous Substance Account
Act); (c) defined as a "hazardous
material," "hazardous substance" or "hazardous waste" under Section
25501 of the California Health and Safety Code, Division 20, Chapter
6.95, "Hazardous Substance" under Section 25281 of the California
Health and Safety Code, Division 20, Chapter 6.7 (Underground Storage
of Hazardous Substances); (d) petroleum; (e) asbestos; (f)
polychlorinated byphenyls; (g) Listed under Article 9 or defined as
"hazardous" or "extremely hazardous" pursuant to Article 11 of Title
22 of the California Administrative Code, Division 4, Chapter 20; (h)
designated as a "hazardous substance" pursuant to Section 311 of the
Clean Water Act, 33 U.S.C. Section 1251 ET SEQ. (33 U.S.C. Section
1321) or listed pursuant to Section 307 of the Clean Water Act (33
U.S.C. Section 6903); (i) defined as a "hazardous substance" pursuant
to Section 101 of the Comprehensive Environmental Response,
Compensation, and Liability Act, 42 U.S.C. Section 9601 ET SEQ.
(42 U.S.C. Section 9601); (1) defined as a "hazardous waste" pursuant
to the Resource Conservation and Recovery Act, 42 U.S.C. Section 6901
ET SEQ. (42 U.S.C. Section 6901); or (1) found to be a pollutant,
contaminant, hazardous waste or hazardous substance in any reported
decision of a federal or California state court, or which may give
rise to liability under any federal or California common law theory
based on nuisance or strict liability. Tenant shall not use or store
in the Demised Premises any Hazardous Materials other than materials
or substances normally associated with an office environment and in
not greater than necessary quantities to allow for reasonable office
use.
Tenant hereby agrees to defend, indemnify and hold Landlord, its agents
and employees, harmless from and against any and all liability, claims,
damage, penalties, actions, demands or expenses of any kind or nature,
including, without Limitation, damage to any property and injury
(including death) to any person, arising from any Hazardous Materials
used or stored on the Demised Premises; excluding, however, any such
Liability arising from the acts of Landlord. This obligation to
indemnify shall include reasonable attorneys' fees and investigation
costs and all other reasonable costs, expenses and Liabilities incurred
by Landlord or its counsel from the first notice that any claim or
demand is to be made or may be made.
LANDLORD: NEWPORT PLACE ASSOCIATES,
a California Limited Partnership
By: MIC Newport Place, a California Limited Partnership
Its: General Partner
By: /s/ XXXXX X. XXXXXX
---------------------------------------------
Xxxxx X. Xxxxxx, General Partner
TENANT: HOMELIFE REALTY SERVICES, INC.
A Delaware Corporation
By: /s/ XXXX XXXXXX
---------------------------------------------
Xxxx Xxxxxx
Its: Executive Vice President/General Manager
