PENINSULA OFFICE PARK PENINSULA OFFICE PARK BUILDING 1 SAN MATEO, CALIFORNIA OFFICE LEASE AGREEMENT BETWEEN EOP-PENINSULA OFFICE PARK, L.L.C., a Delaware limited liability company (“LANDLORD”) AND SINA.COM ONLINE, a California corporation (“TENANT”)
Exhibit 10.47
PENINSULA XXXXXX XXXX
XXXXXXXXX XXXXXX XXXX XXXXXXXX 0
XXX XXXXX, XXXXXXXXXX
XXXXXXXXX XXXXXX XXXX XXXXXXXX 0
XXX XXXXX, XXXXXXXXXX
BETWEEN
EOP-PENINSULA OFFICE PARK, L.L.C., a Delaware limited liability company
(“LANDLORD”)
(“LANDLORD”)
AND
XXXX.XXX ONLINE, a California corporation
(“TENANT”)
(“TENANT”)
THIS OFFICE LEASE AGREEMENT (the “Lease”) is made and entered into as of the 12th day of August,
2005, by and between EOP-PENINSULA OFFICE PARK, L.L.C., a Delaware limited liability company
(“Landlord”) and XXXX.XXX ONLINE, a California corporation (“Tenant”). The following exhibits and
attachments are incorporated into and made a part of the Lease: Exhibit A (Outline and Location of
Premises), Exhibit B (Expenses and Taxes), Exhibit C (Work Letter), Exhibit D (Commencement
Letter), Exhibit E (Building Rules and Regulations), Exhibit F (Additional Provisions), Exhibit G
(Parking Agreement) and Exhibit H (Asbestos Notification).
1. Basic Lease Information.
1.01 | “Building” shall mean the building located at 0000 Xxxxxx Xxxxx, Xxx Xxxxx, Xxxxxxxxxx, commonly known as Peninsula Office Park Building 1. “Rentable Square Footage of the Building” is deemed to be 42,548 square feet. | ||
1.02 | “Premises” shall mean the area shown on Exhibit A to this Lease. The Premises is located on the 1st floor and known as Suite 100. If the Premises include one or more floors in their entirety, all corridors and restroom facilities located on such full floor(s) shall be considered part of the Premises. The “Rentable Square Footage of the Premises” is deemed to be 5,238 square feet. Landlord and Tenant stipulate and agree that the Rentable Square Footage of the Building and the Rentable Square Footage of the Premises are correct. | ||
1.03 | “Base Rent”: |
Period | Annual Rate | Monthly | ||||||
Per Square Foot | Base Rent | |||||||
10/1/05 – 9/30/06 |
$ | 22.20 | $ | 9,690.30 | ||||
10/1/06 – 9/30/07 |
$ | 22.80 | $ | 9,952.20 |
1.04 | “Tenant’s Pro Rata Share”: 12.3108%. | ||
1.05 | “Base Year” for Taxes (defined in Exhibit B): 2005; “Base Year” for Expenses (defined in Exhibit B): 2005. | ||
1.06 | “Term”: A period of 24 months. Subject to Section 3, the Term shall commence on October 1, 2005 (the “Commencement Date”) and, unless terminated early in accordance with this Lease, end on September 30, 2007 (the “Termination Date”). | ||
1.07 | Allowance(s): None. | ||
1.08 | “Security Deposit”: $TBD, as more fully described in Section 6. | ||
1.09 | “Guarantor(s)”: None. | ||
1.10 | “Broker(s)”: None. | ||
1.11 | “Permitted Use”: General office use; provided in no event shall the Premises, or any portion of the Premises, be used for the sale of food from the Premises to the public. | ||
1.12 | “Notice Address(es)”: |
Landlord: Tenant:
EOP-Peninsula Office Park, L.L.C. Xxxx.xxx Online
c/o Equity Office Management, L.L.C.
000 Xxxxx Xxxx Xx the Premises.
Xxxxx 000
Xxxxxx Xxxx, Xxxxxxxxxx 00000
Attn: Property Manager
c/o Equity Office Management, L.L.C.
000 Xxxxx Xxxx Xx the Premises.
Xxxxx 000
Xxxxxx Xxxx, Xxxxxxxxxx 00000
Attn: Property Manager
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A copy of any notices to Landlord shall be sent to Equity Office, One Market,
Xxxxx Xxxxxx Xxxxx, Xxxxx 000, Xxx Xxxxxxxxx, Xxxxxxxxxx 00000, Attn: Peninsula
Managing Counsel.
1.13 | “Business Day(s)” are Monday through Friday of each week, exclusive of New Year’s Day, Presidents Day, Memorial Day, Independence Day, Labor Day, Thanksgiving Day and Christmas Day (“Holidays”). Landlord may designate additional Holidays that are commonly recognized by other office buildings in the area where the Building is located. “Building Service Hours” are 7:00 a.m. to 6:00 p.m. on Business Days. | ||
1.14 | “Landlord Work” means the work, if any, that Landlord is obligated to perform in the Premises pursuant to a separate agreement (the “Work Letter”), if any, attached to this Lease as Exhibit C. | ||
1.15 | “Property” means the Building and the parcel(s) of land on which it is located and, at Landlord’s discretion, the parking facilities and other improvements, if any, serving the Building and the parcel(s) of land on which they are located. |
2. Lease Grant.
The Premises are hereby leased to Tenant from Landlord, together with the right to use any
portions of the Property that are designated by Landlord for the common use of tenants and others
(the “Common Areas”).
3. Adjustment of Commencement Date; Possession.
3.01 Intentionally Omitted.
3.02 Tenant currently is in possession of the Premises, as subtenant, pursuant to the terms
of a certain sublease agreement (the, “Sublease”) between Tenant, as subtenant, and E.Piphany,
Inc., a Delaware corporation (the “Sublandlord”), as sublandlord, which sublease agreement, and the
underlying primary lease between Landlord and Sublandlord, are scheduled to expire, by their
respective terms, as of the day immediately preceding the Commencement Date described in this
Lease. Accordingly, subject to Landlord’s obligation to perform Landlord Work, the Premises are
accepted by Tenant in “as is” condition and configuration without any representations or warranties
by Landlord. By taking possession of the Premises, Tenant agrees that the Premises are in good
order and satisfactory condition.
4. Rent.
4.01 Tenant shall pay Landlord, without any setoff or deduction, unless expressly set forth
in this Lease, all Base Rent and Additional Rent due for the Term (collectively referred to as
“Rent”). “Additional Rent” means all sums (exclusive of Base Rent) that Tenant is required to pay
Landlord under this Lease. Tenant shall pay and be liable for all rental, sales and use taxes (but
excluding income taxes), if any, imposed upon or measured by Rent. Base Rent and recurring monthly
charges of Additional Rent shall be due and payable in advance on the first day of each calendar
month without notice or demand, provided that the installment of Base Rent for the first full
calendar month of the Term, and the first monthly installment of Additional Rent for Expenses and
Taxes, shall be payable upon the execution of this Lease by Tenant. All other items of Rent shall
be due and payable by Tenant on or before 30 days after billing by Landlord. Rent shall be made
payable to the entity, and sent to the address, Landlord designates and shall be made by good and
sufficient check or by other means acceptable to Landlord. Tenant shall pay Landlord an
administration fee equal to 5% of all past due Rent, provided that Tenant shall be entitled to a
grace period of 5 days for the first 2
late payments of Rent in a calendar year. In addition, past due Rent shall accrue interest at
12% per annum. Landlord’s acceptance of less than the correct amount of Rent shall be considered a
payment on account of the earliest Rent due. Rent for any partial month during the Term shall be
prorated. No endorsement or statement on a check or letter accompanying payment shall be considered
an accord and satisfaction. Tenant’s covenant to pay Rent is independent of every other covenant
in this Lease.
4.02 Tenant shall pay Tenant’s Pro Rata Share of Taxes and Expenses in accordance with
Exhibit B of this Lease.
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5. Compliance with Laws; Use.
The Premises shall be used for the Permitted Use and for no other use whatsoever. Tenant shall
comply with all statutes, codes, ordinances, orders, rules and regulations of any municipal or
governmental entity whether in effect now or later, including the Americans with Disabilities Act
(“Law(s)”), regarding the operation of Tenant’s business and the use, condition, configuration and
occupancy of the Premises. In addition, Tenant shall, at its sole cost and expense, promptly comply
with any Laws that relate to the “Base Building” (defined below), but only to the extent such
obligations are triggered by Tenant’s use of the Premises, other than for general office use, or
Alterations or improvements in the Premises performed or requested by Tenant. “Base Building”
shall include the structural portions of the Building, the public restrooms and the Building
mechanical, electrical and plumbing systems and equipment located in the internal core of the
Building on the floor or floors on which the Premises are located. Tenant shall promptly provide
Landlord with copies of any notices it receives regarding an alleged violation of Law. Tenant
shall comply with the rules and regulations of the Building attached as Exhibit E and such other
reasonable rules and regulations adopted by Landlord from time to time, including rules and
regulations for the performance of Alterations (defined in Section 9).
6. Security Deposit.
The Security Deposit shall be delivered to Landlord upon the execution of this Lease by Tenant
and held by Landlord without liability for interest (unless required by Law) as security for the
performance of Tenant’s obligations. The Security Deposit is not an advance payment of Rent or a
measure of damages. Landlord may use all or a portion of the Security Deposit to satisfy past due
Rent, to cure any Default (defined in Section 18) by Tenant, or to satisfy any other loss or damage
resulting from Tenant’s Default as provided in Section 19. If Landlord uses any portion of the
Security Deposit, Tenant shall, within 5 days after demand, restore the Security Deposit to its
original amount. Landlord shall return any unapplied portion of the Security Deposit to Tenant
within 45 days after the later to occur of: (a) determination of the final Rent due from Tenant; or
(b) the later to occur of the Termination Date or the date Tenant surrenders the Premises to
Landlord in compliance with Section 25. Landlord may assign the Security Deposit to a successor or
transferee and, following the assignment, Landlord shall have no further liability for the return
of the Security Deposit. Landlord shall not be required to keep the Security Deposit separate from
its other accounts. Tenant hereby waives the provisions of Section 1950.7 of the California Civil
Code, or any similar or successor Laws now or hereinafter in effect.
7. Building Services.
7.01 Landlord shall furnish Tenant with the following services: (a) water for use in the Base
Building lavatories; (b) customary heat and air conditioning in season during Building Service
Hours, although Tenant shall have the right to receive HVAC service during hours other than
Building Service Hours by paying Landlord’s then standard charge for additional HVAC service and
providing such prior notice as is reasonably specified by Landlord; (c) standard janitorial service
on Business Days; (d) elevator service; (e) electricity in accordance with the terms and conditions
in Section 7.02; (f) access to the Building for Tenant and its employees 24 hours per day/7 days
per week, subject to the terms of this Lease and such protective services or monitoring systems, if
any, as Landlord may reasonably impose, including, without limitation, sign-in procedures and/or
presentation of identification cards; and (g) such other services as Landlord reasonably determines
are necessary or appropriate for the Property.
7.02 Electricity used by Tenant in the Premises shall be paid for by Tenant through inclusion
in Expenses (except as provided for excess usage). Without the consent of Landlord, Tenant’s use of
electrical service shall not exceed, either in voltage, rated capacity, use
beyond Building Service Hours or overall load, that which Landlord reasonably deems to be
standard for the Building. Landlord shall have the right to measure electrical usage by commonly
accepted methods, including the installation of measuring devices such as submeters and check
meters. If it is determined that Tenant is using excess electricity, Tenant shall pay Landlord
Additional Rent for the cost of such excess electrical usage and for the cost of purchasing and
installing the measuring device(s).
7.03 Landlord’s failure to furnish, or any interruption, diminishment or termination of
services due to the application of Laws, the failure of any equipment, the performance of repairs,
improvements or alterations, utility interruptions or the occurrence of an event of Force Majeure
(defined in Section 26.03) (collectively a “Service Failure”) shall not render Landlord liable to
Tenant, constitute a constructive eviction of Tenant, give rise to an abatement of Rent,
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nor relieve Tenant from the obligation to fulfill any covenant or agreement. However, if the Premises,
or a material portion of the Premises, are made untenantable for a period in excess of 3
consecutive Business Days as a result of a Service Failure that is reasonably within the control of
Landlord to correct, then Tenant, as its sole remedy, shall be entitled to receive an abatement of
Rent payable hereunder during the period beginning on the 4th consecutive Business Day
of the Service Failure and ending on the day the service has been restored. If the entire Premises
have not been rendered untenantable by the Service Failure, the amount of abatement shall be
equitably prorated.
8. Leasehold Improvements.
All improvements in and to the Premises, including any Alterations (defined in Section 9.03)
(collectively, “Leasehold Improvements”) shall remain upon the Premises at the end of the Term
without compensation to Tenant, provided that Tenant, at its expense, in compliance with the
National Electric Code or other applicable Law, shall remove any Cable (defined in Section 9.01
below). In addition, Landlord, by written notice to Tenant at least 30 days prior to the
Termination Date, may require Tenant, at its expense, to remove any Landlord Work or Alterations
that, in Landlord’s reasonable judgment, are of a nature that would require removal and repair
costs that are materially in excess of the removal and repair costs associated with standard office
improvements (the Cable and such other items collectively are referred to as “Required
Removables”). Required Removables shall include, without limitation, internal stairways, raised
floors, personal baths and showers, vaults, rolling file systems and structural alterations and
modifications. The Required Removables shall be removed by Tenant before the Termination Date.
Tenant shall repair damage caused by the installation or removal of Required Removables. If Tenant
fails to perform its obligations in a timely manner, Landlord may perform such work at Tenant’s
expense. Tenant, at the time it requests approval for a proposed Alteration, including any Initial
Alterations or Landlord Work, as such terms may be defined in the Work Letter attached as Exhibit
C, may request in writing that Landlord advise Tenant whether the Alteration, including any Initial
Alterations or Landlord Work, or any portion thereof, is a Required Removable. Within 10 days
after receipt of Tenant’s request, Landlord shall advise Tenant in writing as to which portions of
the alteration or other improvements are Required Removables.
9. Repairs and Alterations.
9.01 Tenant shall periodically inspect the Premises to identify any conditions that are
dangerous or in need of maintenance or repair. Tenant shall promptly provide Landlord with notice
of any such conditions. Tenant shall, at its sole cost and expense, perform all maintenance and
repairs to the Premises that are not Landlord’s express responsibility under this Lease, and keep
the Premises in good condition and repair, reasonable wear and tear excepted. Tenant’s repair and
maintenance obligations include, without limitation, repairs to: (a) floor covering; (b) interior
partitions; (c) doors; (d) the interior side of demising walls; (e) electronic, fiber, phone and
data cabling and related equipment that is installed by or for the exclusive benefit of
Tenant (collectively, “Cable”); (f) supplemental air conditioning units, kitchens, including hot
water heaters, plumbing, and similar facilities exclusively serving Tenant; and (g) Alterations.
Subject to the terms of Section 15 below, to the extent Landlord is not reimbursed by insurance
proceeds, Tenant shall reimburse Landlord for the cost of repairing damage to the Building caused
by the acts of Tenant, Tenant Related Parties and their respective contractors and vendors. If
Tenant fails to make any repairs to the Premises for more than 15 days after notice from Landlord
(although notice shall not be required in an emergency), Landlord may make the repairs, and Tenant
shall pay the reasonable cost of the repairs, together with an administrative charge in an amount
equal to 10% of the cost of the repairs.
9.02 Landlord shall keep and maintain in good repair and working order and perform
maintenance upon the: (a) structural elements of the Building; (b) mechanical (including HVAC),
electrical, plumbing and fire/life safety systems serving the Building in general; (c) Common
Areas; (d) roof of the Building; (e) exterior windows of the Building; and (f) elevators serving
the Building. Landlord shall promptly make repairs for which Landlord is responsible. Tenant hereby
waives any and all rights under and benefits of subsection 1 of Section 1932, and Sections 1941 and
1942 of the California Civil Code, or any similar or successor Laws now or hereinafter in effect.
9.03 Tenant shall not make alterations, repairs, additions or improvements or install any
Cable (collectively referred to as “Alterations”) without first obtaining the written consent of
Landlord in each instance, which consent shall not be unreasonably withheld or delayed. However,
Landlord’s consent shall not be required for any Alteration that satisfies all of the
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following criteria (a “Cosmetic Alteration”): (a) is of a cosmetic nature such as painting, wallpapering,
hanging pictures and installing carpeting; (b) is not visible from the exterior of the Premises or
Building; (c) will not affect the Base Building; and (d) does not require work to be performed
inside the walls or above the ceiling of the Premises. Cosmetic Alterations shall be subject to
all the other provisions of this Section 9.03. Prior to starting work, Tenant shall furnish
Landlord with plans and specifications; names of contractors reasonably acceptable to Landlord
(provided that Landlord may designate specific contractors with respect to Base Building); required
permits and approvals; evidence of contractor’s and subcontractor’s insurance in amounts reasonably
required by Landlord and naming Landlord as an additional insured; and any security for performance
in amounts reasonably required by Landlord. Changes to the plans and specifications must also be
submitted to Landlord for its approval. Alterations shall be constructed in a good and workmanlike
manner using materials of a quality reasonably approved by Landlord. Tenant shall reimburse
Landlord for any sums paid by Landlord for third party examination of Tenant’s plans for
non-Cosmetic Alterations. In addition, Tenant shall pay Landlord a fee for Landlord’s oversight
and coordination of any non-Cosmetic Alterations equal to 10% of the cost of the non-Cosmetic
Alterations. Upon completion, Tenant shall furnish “as-built” plans for non-Cosmetic Alterations,
completion affidavits and full and final waivers of lien. Landlord’s approval of an Alteration
shall not be deemed a representation by Landlord that the Alteration complies with Law.
10. Entry by Landlord.
Landlord may enter the Premises to inspect, show or clean the Premises or to perform or
facilitate the performance of repairs, alterations or additions to the Premises or any portion of
the Building. Except in emergencies or to provide Building services, Landlord shall provide Tenant
with reasonable prior verbal notice of entry and shall use reasonable efforts to minimize any
interference with Tenant’s use of the Premises. If reasonably necessary, Landlord may temporarily
close all or a portion of the Premises to perform repairs, alterations and additions. However,
except in emergencies, Landlord will not close the Premises if the work can reasonably be completed
on weekends and after Building Service Hours. Entry by Landlord shall not constitute a
constructive eviction or entitle Tenant to an abatement or reduction of Rent.
11. Assignment and Subletting.
11.01 Except in connection with a Permitted Transfer (defined in Section 11.04), Tenant shall
not assign, sublease, transfer or encumber any interest in this Lease or allow any third party to
use any portion of the Premises (collectively or individually, a “Transfer”) without the prior
written consent of Landlord, which consent shall not be unreasonably withheld, conditioned or
delayed if Landlord does not exercise its recapture rights under Section 11.02. If the entity(ies)
which directly or indirectly controls the voting shares/rights of Tenant changes at any time, such
change of ownership or control shall constitute a Transfer unless Tenant is an entity whose
outstanding stock is listed on a recognized securities exchange or if at least 80% of its voting
stock is owned by another entity, the voting stock of which is so listed. Tenant hereby waives the
provisions of Section 1995.310 of the California Civil Code, or any similar or successor Laws, now
or hereinafter in effect, and all other remedies, including, without limitation, any right at law
or equity to terminate this Lease, on its own behalf and, to the extent permitted under all
applicable Laws, on behalf of the proposed transferee. Any Transfer in violation of this Section
shall, at Landlord’s option, be deemed a Default by Tenant as described in Section 18, and shall be
voidable by Landlord. In no event shall any Transfer, including a Permitted Transfer, release or
relieve Tenant from any obligation under this Lease.
11.02 Tenant shall provide Landlord with financial statements for the proposed transferee, a
fully executed copy of the proposed assignment, sublease or other Transfer documentation and such
other information as Landlord may reasonably request. Within 15 Business Days after receipt of the
required information and documentation, Landlord shall either: (a) consent to the Transfer by
execution of a consent agreement in a form reasonably designated by Landlord; (b) reasonably refuse
to consent to the Transfer in writing; or (c) in the event of an assignment of this Lease or
subletting of more than 20% of the Rentable Square Footage of the Premises for more than 50% of the
remaining Term (excluding unexercised options), recapture the portion of the Premises that Tenant
is proposing to Transfer. If Landlord exercises its right to recapture, this Lease shall
automatically be amended (or terminated if the entire Premises is being assigned or sublet) to
delete the applicable portion of the Premises effective on the proposed effective date of the
Transfer, although Landlord may require Tenant to execute a reasonable amendment or other document
reflecting such reduction or termination. Tenant shall pay Landlord a review fee of $1,500.00 for
Landlord’s review of any Permitted Transfer or requested Transfer.
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11.03 Tenant shall pay Landlord 50% of all rent and other consideration which Tenant receives
as a result of a Transfer that is in excess of the Rent payable to Landlord for the portion of the
Premises and Term covered by the Transfer. Tenant shall pay Landlord for Landlord’s share of the
excess within 30 days after Tenant’s receipt of the excess. Tenant may deduct from the excess, on
a straight-line basis, all reasonable and customary expenses directly incurred by Tenant
attributable to the Transfer. If Tenant is in Default, Landlord may require that all sublease
payments be made directly to Landlord, in which case Tenant shall receive a credit against Rent in
the amount of Tenant’s share of payments received by Landlord.
11.04 Tenant may assign this Lease to a successor to Tenant by purchase, merger, consolidation
or reorganization (an “Ownership Change”) or assign this Lease or sublet all or a portion of the
Premises to an Affiliate without the consent of Landlord, provided that all of the following
conditions are satisfied (a “Permitted Transfer”): (a) Tenant is not in Default; (b) in the event
of an Ownership Change, Tenant’s successor shall own substantially all of the assets of Tenant and
have a net worth which is at least equal to Tenant’s net worth as of the day prior to the proposed
Ownership Change, or in the event of a Transfer to an Affiliate (defined below), Tenant continues
to have a net worth equal to or greater than Tenant’s net worth at the date of this Lease or the
Affiliate has a net worth equal to Tenant’s net worth at the date of this Lease; (c) the Permitted
Use does not allow the Premises to be used for retail purposes; and (d) Tenant shall give Landlord
written notice at least 15 Business Days prior to the effective date of the Permitted Transfer.
Tenant’s notice to Landlord shall include information and documentation evidencing the Permitted
Transfer and showing that each of the above conditions has been satisfied. If requested by
Landlord, Tenant’s successor shall sign a commercially reasonable form of assumption agreement.
“Affiliate” shall mean an entity controlled by, controlling or under common control with Tenant.
12. Liens.
Tenant shall not permit mechanics’ or other liens to be placed upon the Property, Premises or
Tenant’s leasehold interest in connection with any work or service done or purportedly done by or
for the benefit of Tenant or its transferees. Tenant shall give Landlord notice at least 15 days
prior to the commencement of any work in the Premises to afford Landlord the opportunity, where
applicable, to post and record notices of non-responsibility. Tenant, within 10 days of notice
from Landlord, shall fully discharge any lien by settlement, by bonding or by insuring over the
lien in the manner prescribed by the applicable lien Law and, if Tenant fails to do so, Tenant
shall be deemed in Default under this Lease and, in addition to any other remedies available to
Landlord as a result of such Default by Tenant, Landlord, at its option, may bond, insure over or
otherwise discharge the lien. Tenant shall reimburse Landlord for any amount paid by Landlord,
including, without limitation, reasonable attorneys’ fees.
13. Indemnity and Waiver of Claims.
Except to the extent caused by the negligence or willful misconduct of Landlord or any
Landlord Related Parties (defined below), Tenant shall indemnify, defend and hold Landlord and
Landlord Related Parties harmless against and from all liabilities, obligations, damages,
penalties, claims, actions, costs, charges and expenses, including, without limitation, reasonable
attorneys’ fees and other professional fees (if and to the extent permitted by Law) (collectively
referred to as “Losses”), which may be imposed upon, incurred by or asserted against Landlord or
any of the Landlord Related Parties by any third party and arising out of or in connection with any damage or injury occurring in the Premises or any acts or omissions
(including violations of Law) of Tenant, the Tenant Related Parties (defined below) or any of
Tenant’s transferees, contractors or licensees. Except to the extent caused by the negligence or
willful misconduct of Tenant or any Tenant Related Parties, Landlord shall indemnify, defend and
hold Tenant, its trustees, members, principals, beneficiaries, partners, officers, directors,
employees and agents (“Tenant Related Parties”) harmless against and from all Losses which may be
imposed upon, incurred by or asserted against Tenant or any of the Tenant Related Parties by any
third party and arising out of or in connection with the acts or omissions (including violations of
Law) of Landlord or the Landlord Related Parties. Tenant hereby waives all claims against and
releases Landlord and its trustees, members, principals, beneficiaries, partners, officers,
directors, employees, Mortgagees (defined in Section 23) and agents (the “Landlord Related
Parties”) from all claims for any injury to or death of persons, damage to property or business
loss in any manner related to (a) Force Majeure, (b) acts of third parties, (c) the bursting or
leaking of any tank, water closet, drain or other pipe, (d) the inadequacy or failure of any
security or protective services, personnel or equipment, or (e) any matter not within the
reasonable control of Landlord.
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14. Insurance.
Tenant shall maintain the following insurance (“Tenant’s Insurance”): (a) Commercial General
Liability Insurance applicable to the Premises and its appurtenances providing, on an occurrence
basis, a minimum combined single limit of $2,000,000.00; (b) Property/Business Interruption
Insurance written on an All Risk or Special Cause of Loss Form, including earthquake sprinkler
leakage, at replacement cost value and with a replacement cost endorsement covering all of Tenant’s
business and trade fixtures, equipment, movable partitions, furniture, merchandise and other
personal property within the Premises (“Tenant’s Property”) and any Leasehold Improvements
performed by or for the benefit of Tenant; (c) Workers’ Compensation Insurance in amounts required
by Law; and (d) Employers Liability Coverage of at least $1,000,000.00 per occurrence. Any company
writing Tenant’s Insurance shall have an A.M. Best rating of not less than A-VIII. All Commercial
General Liability Insurance policies shall name as additional insureds Landlord (or its successors
and assignees), the managing agent for the Building (or any successor), EOP Operating Limited
Partnership, Equity Office Properties Trust and their respective members, principals,
beneficiaries, partners, officers, directors, employees, and agents, and other designees of
Landlord and its successors as the interest of such designees shall appear. In addition, Landlord
shall be named as a loss payee with respect to Property/Business Interruption Insurance on the
Leasehold Improvements. All policies of Tenant’s Insurance shall contain endorsements that the
insurer(s) shall give Landlord and its designees at least 30 days’ advance written notice of any
cancellation, termination, material change or lapse of insurance. Tenant shall provide Landlord
with a certificate of insurance evidencing Tenant’s Insurance prior to the earlier to occur of the
Commencement Date or the date Tenant is provided with possession of the Premises, and thereafter as
necessary to assure that Landlord always has current certificates evidencing Tenant’s Insurance. So
long as the same is available at commercially reasonable rates, Landlord shall maintain so called
All Risk property insurance on the Building at replacement cost value as reasonably estimated by
Landlord, together with such other insurance coverage as Landlord, in its reasonable judgment, may
elect to maintain.
15. Subrogation.
Landlord and Tenant hereby waive and shall cause their respective insurance carriers to waive
any and all rights of recovery, claims, actions or causes of action against the other for any loss
or damage with respect to Tenant’s Property, Leasehold Improvements, the Building, the Premises, or
any contents thereof, including rights, claims, actions and causes of action based on negligence,
which loss or damage is (or would have been, had the insurance required by this Lease been carried)
covered by insurance. For the purposes of this waiver, any deductible with respect to a party’s
insurance shall be deemed covered by and recoverable by such party under valid and collectable
policies of insurance.
16. Casualty Damage.
16.01 If all or any portion of the Premises becomes untenantable by fire or other casualty to
the Premises (collectively a “Casualty”), Landlord, with reasonable promptness, shall cause a
general contractor selected by Landlord to provide Landlord and Tenant with a written estimate of
the amount of time required using standard working methods to Substantially Complete the repair and
restoration of the Premises and any Common Areas necessary to provide access to the Premises
(“Completion Estimate”). If the Completion Estimate indicates that the Premises or any Common Areas necessary to provide access to the Premises
cannot be made tenantable within 270 days from the date the repair is started, then either party
shall have the right to terminate this Lease upon written notice to the other within 10 days after
receipt of the Completion Estimate. Tenant, however, shall not have the right to terminate this
Lease if the Casualty was caused by the negligence or intentional misconduct of Tenant or any
Tenant Related Parties. In addition, Landlord, by notice to Tenant within 90 days after the date of
the Casualty, shall have the right to terminate this Lease if: (1) the Premises have been
materially damaged and there is less than 2 years of the Term remaining on the date of the
Casualty; (2) any Mortgagee requires that the insurance proceeds be applied to the payment of the
mortgage debt; or (3) a material uninsured loss to the Building or Premises occurs.
16.02 If this Lease is not terminated, Landlord shall promptly and diligently, subject to
reasonable delays for insurance adjustment or other matters beyond Landlord’s reasonable control,
restore the Premises and Common Areas. Such restoration shall be to substantially the same
condition that existed prior to the Casualty, except for modifications required by Law or any other
modifications to the Common Areas deemed desirable by Landlord. Upon notice from Landlord, Tenant
shall assign or endorse over to Landlord (or to any party designated by
7
Landlord) all property
insurance proceeds payable to Tenant under Tenant’s Insurance with respect to any Leasehold
Improvements performed by or for the benefit of Tenant; provided if the estimated cost to repair
such Leasehold Improvements exceeds the amount of insurance proceeds received by Landlord from
Tenant’s insurance carrier, the excess cost of such repairs shall be paid by Tenant to Landlord
prior to Landlord’s commencement of repairs. Within 15 days of demand, Tenant shall also pay
Landlord for any additional excess costs that are determined during the performance of the repairs.
In no event shall Landlord be required to spend more for the restoration than the proceeds
received by Landlord, whether insurance proceeds or proceeds from Tenant. Landlord shall not be
liable for any inconvenience to Tenant, or injury to Tenant’s business resulting in any way from
the Casualty or the repair thereof. Provided that Tenant is not in Default, during any period of
time that all or a material portion of the Premises is rendered untenantable as a result of a
Casualty, the Rent shall xxxxx for the portion of the Premises that is untenantable and not used by
Tenant.
16.03 The provisions of this Lease, including this Section 16, 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 Premises or the Property, and any Laws, 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 similar or successor Laws now or hereinafter in effect, shall have no application to this Lease
or any damage or destruction to all or any part of the Premises or the Property.
17. Condemnation.
Either party may terminate this Lease if any material part of the Premises is taken or
condemned for any public or quasi-public use under Law, by eminent domain or private purchase in
lieu thereof (a “Taking”). Landlord shall also have the right to terminate this Lease if there is
a Taking of any portion of the Building or Property which would have a material adverse effect on
Landlord’s ability to profitably operate the remainder of the Building. The terminating party
shall provide written notice of termination to the other party within 45 days after it first
receives notice of the Taking. The termination shall be effective as of the effective date of any
order granting possession to, or vesting legal title in, the condemning authority. If this Lease
is not terminated, Base Rent and Tenant’s Pro Rata Share shall be appropriately adjusted to account
for any reduction in the square footage of the Building or Premises. All compensation awarded for a
Taking shall be the property of Landlord. The right to receive compensation or proceeds are
expressly waived by Tenant, however, Tenant may file a separate claim for Tenant’s Property and
Tenant’s reasonable relocation expenses, provided the filing of the claim does not diminish the
amount of Landlord’s award. If only a part of the Premises is subject to a Taking and this Lease
is not terminated, Landlord, with reasonable diligence, will restore the remaining portion of the
Premises as nearly as practicable to the condition immediately prior to the Taking. Tenant hereby
waives any and all rights it might otherwise have pursuant to Section 1265.130 of the California
Code of Civil Procedure, or any similar or successor Laws.
18. Events of Default.
In addition to any other default specifically described in this Lease, each of the following
occurrences shall be a “Default”: (a) Tenant’s failure to pay any portion of Rent when due, if the
failure continues for 3 days after written notice to Tenant (“Monetary Default”); (b) Tenant’s
failure (other than a Monetary Default) to comply with any term, provision, condition or covenant
of this Lease, if the failure is not cured within 10 days after written notice to Tenant provided,
however, if Tenant’s failure to comply cannot reasonably be cured within 10 days, Tenant shall be
allowed additional time (not to exceed 60 days) as is reasonably necessary to cure the failure so
long as Tenant begins the cure within 10 days and diligently pursues the cure to completion; (c)
Tenant permits a Transfer without Landlord’s required approval or otherwise in violation of Section
11 of this Lease; (d) Tenant or any Guarantor becomes insolvent, makes a transfer in fraud of
creditors, makes an assignment for the benefit of creditors, admits in writing its inability to pay
its debts when due or forfeits or loses its right to conduct business; (e) the leasehold estate is
taken by process or operation of Law; (f) in the case of any ground floor or retail Tenant, Tenant
does not take possession of or abandons or vacates all or any portion of the Premises; or (g)
Tenant is in default beyond any notice and cure period under any other lease or agreement with
Landlord at the Building or Property. If Landlord provides Tenant with notice of Tenant’s failure
to comply with any specific provision of this Lease on 3 separate occasions during any 12 month
period, Tenant’s subsequent violation of such provision shall, at Landlord’s option, be an
incurable Default by Tenant. All notices sent under this Section shall be in satisfaction of, and
not in addition to, notice required by Law.
8
19. Remedies.
19.01 Upon the occurrence of any Default under this Lease, whether enumerated in Section 18
or not, Landlord shall have the option to pursue any one or more of the following remedies without
any notice (except as expressly prescribed herein) or demand whatsoever (and without limiting the
generality of the foregoing, Tenant hereby specifically waives notice and demand for payment of
Rent or other obligations, except for those notices specifically required pursuant to the terms of
Section 18 or this Section 19, and waives any and all other notices or demand requirements imposed
by applicable law):
(a) | Terminate this Lease and Tenant’s right to possession of the Premises and recover from Tenant an award of damages equal to the sum of the following: |
(i) | The Worth at the Time of Award of the unpaid Rent which had been earned at the time of termination; | ||
(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 Rent loss that Tenant affirmatively proves could have been reasonably avoided; | ||
(iii) | The Worth at the Time of Award of the amount by which the unpaid Rent for the balance of the Term after the time of award exceeds the amount of such Rent loss that Tenant affirmatively proves could be reasonably avoided; | ||
(iv) | Any other amount necessary to compensate Landlord for all the detriment either proximately caused by Tenant’s failure to perform Tenant’s obligations under this Lease or which in the ordinary course of things would be likely to result therefrom; and | ||
(v) | All such other amounts in addition to or in lieu of the foregoing as may be permitted from time to time under applicable law. |
The “Worth at the Time of Award” of the amounts referred to in parts (i) and (ii)
above, shall be computed by allowing interest at the lesser of a per annum rate
equal to: (A) the greatest per annum rate of interest permitted from time to time
under applicable law, or (B) the Prime Rate plus 5%. For purposes hereof, the
“Prime Rate” shall be the per annum interest rate publicly announced as its prime or
base rate by a federally insured bank selected by Landlord in the State of
California. The “Worth at the Time of Award” of the amount referred to in part
(iii), above, 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 1%;
(b) | Employ the remedy described in California Civil Code § 1951.4 (Landlord may continue this Lease in effect after Tenant’s breach and abandonment and recover Rent as it becomes due, if Tenant has the right to sublet or assign, subject only to reasonable limitations); or | ||
(c) | Notwithstanding Landlord’s exercise of the remedy described in California Civil Code § 1951.4 in respect of an event or events of default, at such time thereafter as Landlord may elect in writing, to terminate this Lease and Tenant’s right to possession of the Premises and recover an award of damages as provided above in Paragraph 19.01(a). |
19.02 The subsequent acceptance of Rent hereunder by Landlord shall not be deemed to be a
waiver of any preceding breach by Tenant of any term, covenant or condition of this Lease, other
than the failure of Tenant to pay the particular Rent so accepted, regardless of Landlord’s
knowledge of such preceding breach at the time of acceptance of such Rent. No waiver by Landlord
of any breach hereof shall be effective unless such waiver is in writing and signed by Landlord.
19.03 TENANT HEREBY WAIVES ANY AND ALL RIGHTS CONFERRED BY SECTION 3275 OF THE CIVIL CODE OF
CALIFORNIA AND BY SECTIONS 1174 (c) AND 1179 OF THE CODE OF CIVIL PROCEDURE OF CALIFORNIA AND ANY
AND ALL OTHER LAWS AND RULES OF LAW FROM TIME TO TIME IN EFFECT DURING THE LEASE TERM
9
PROVIDING THAT TENANT SHALL HAVE ANY RIGHT TO REDEEM, REINSTATE OR RESTORE THIS LEASE FOLLOWING ITS
TERMINATION BY REASON OF TENANT’S BREACH. TENANT ALSO HEREBY WAIVES, TO THE FULLEST EXTENT
PERMITTED BY LAW, THE RIGHT TO TRIAL BY JURY IN ANY LITIGATION ARISING OUT OF OR RELATING TO THIS
LEASE.
19.04 No right or remedy herein conferred upon or reserved to Landlord is intended to be
exclusive of any other right or remedy, and each and every right and remedy shall be cumulative and
in addition to any other right or remedy given hereunder or now or hereafter existing by agreement,
applicable law or in equity. In addition to other remedies provided in this Lease, Landlord shall
be entitled, to the extent permitted by applicable law, to injunctive relief, or to a decree
compelling performance of any of the covenants, agreements, conditions or provisions of this Lease,
or to any other remedy allowed to Landlord at law or in equity. Forbearance by Landlord to enforce
one or more of the remedies herein provided upon an event of default shall not be deemed or
construed to constitute a waiver of such default.
19.05 If Tenant is in Default of any of its non-monetary obligations under the Lease,
Landlord shall have the right to perform such obligations. Tenant shall reimburse Landlord for the
cost of such performance upon demand together with an administrative charge equal to 10% of the
cost of the work performed by Landlord.
19.06 This Section 19 shall be enforceable to the maximum extent such enforcement is not
prohibited by applicable law, and the unenforceability of any portion thereof shall not thereby
render unenforceable any other portion.
20. Limitation of Liability.
NOTWITHSTANDING ANYTHING TO THE CONTRARY CONTAINED IN THIS LEASE, THE LIABILITY OF LANDLORD
(AND OF ANY SUCCESSOR LANDLORD) SHALL BE LIMITED TO THE LESSER OF (A) THE INTEREST OF LANDLORD IN
THE PROPERTY, OR (B) THE EQUITY INTEREST LANDLORD WOULD HAVE IN THE PROPERTY IF THE PROPERTY WERE
ENCUMBERED BY THIRD PARTY DEBT IN AN AMOUNT EQUAL TO 70% OF THE VALUE OF THE PROPERTY. TENANT
SHALL LOOK SOLELY TO LANDLORD’S INTEREST IN THE PROPERTY FOR THE RECOVERY OF ANY JUDGMENT OR AWARD
AGAINST LANDLORD OR ANY LANDLORD RELATED PARTY. NEITHER LANDLORD NOR ANY LANDLORD RELATED PARTY
SHALL BE PERSONALLY LIABLE FOR ANY JUDGMENT OR DEFICIENCY, AND IN NO EVENT SHALL LANDLORD OR ANY
LANDLORD RELATED PARTY BE LIABLE TO TENANT FOR ANY LOST PROFIT, DAMAGE TO OR LOSS OF BUSINESS OR
ANY FORM OF SPECIAL, INDIRECT OR CONSEQUENTIAL DAMAGE. BEFORE FILING SUIT FOR AN ALLEGED DEFAULT
BY LANDLORD, TENANT SHALL GIVE LANDLORD AND THE MORTGAGEE(S) WHOM
TENANT HAS BEEN NOTIFIED HOLD MORTGAGES (DEFINED IN SECTION 23 BELOW), NOTICE AND REASONABLE
TIME TO CURE THE ALLEGED DEFAULT.
21. Relocation.
Landlord, at its expense, at any time before or during the Term, may relocate Tenant from the
Premises to space of reasonably comparable size and utility (“Relocation Space”) within the
Building or other buildings within the same project upon 60 days’ prior written notice to Tenant.
From and after the date of the relocation, the Base Rent and Tenant’s Pro Rata Share shall be
adjusted based on the rentable square footage of the Relocation Space. Landlord shall pay Tenant’s
reasonable costs of relocation, including all costs for moving Tenant’s furniture, equipment,
supplies and other personal property, as well as the cost of printing and distributing change of
address notices to Tenant’s customers and one month’s supply of stationery showing the new address.
22. Holding Over.
If Tenant fails to surrender all or any part of the Premises at the termination of this Lease,
occupancy of the Premises after termination shall be that of a tenancy at sufferance. Tenant’s
occupancy shall be subject to all the terms and provisions of this Lease, and Tenant shall pay an
amount (on a per month basis without reduction for partial months during the holdover) equal to
150% of the sum of the Base Rent and Additional Rent due for the period immediately preceding the
holdover. No holdover by Tenant or payment by Tenant after the termination of this Lease shall be
construed to extend the Term or prevent Landlord from immediate recovery of possession of the
Premises by summary proceedings or otherwise. If Landlord is unable to deliver possession of the
Premises to a new tenant or to perform improvements for a new
10
tenant as a result of Tenant’s
holdover and Tenant fails to vacate the Premises within 15 days after notice from Landlord, Tenant
shall be liable for all damages that Landlord suffers from the holdover.
23. Subordination to Mortgages; Estoppel Certificate.
Tenant accepts this Lease subject and subordinate to any mortgage(s), deed(s) of trust, ground
lease(s) or other lien(s) now or subsequently arising upon the Premises, the Building or the
Property, and to renewals, modifications, refinancings and extensions thereof (collectively
referred to as a “Mortgage”). The party having the benefit of a Mortgage shall be referred to as a
“Mortgagee”. This clause shall be self-operative, but upon request from a Mortgagee, Tenant shall
execute a commercially reasonable subordination agreement in favor of the Mortgagee. As an
alternative, a Mortgagee shall have the right at any time to subordinate its Mortgage to this
Lease. Upon request, Tenant, without charge, shall attorn to any successor to Landlord’s interest
in this Lease. Landlord and Tenant shall each, within 10 days after receipt of a written request
from the other, execute and deliver a commercially reasonable estoppel certificate to those parties
as are reasonably requested by the other (including a Mortgagee or prospective purchaser). Without
limitation, such estoppel certificate may include a certification as to the status of this Lease,
the existence of any defaults and the amount of Rent that is due and payable.
24. Notice.
All demands, approvals, consents or notices (collectively referred to as a “notice”) shall be
in writing and delivered by hand or sent by registered or certified mail with return receipt
requested or sent by overnight or same day courier service at the party’s respective Notice
Address(es) set forth in Section 1. Each notice shall be deemed to have been received on the
earlier to occur of actual delivery or the date on which delivery is refused, or, if Tenant has
vacated the Premises or any other Notice Address of Tenant without providing a new Notice Address,
3 days after notice is deposited in the U.S. mail or with a courier service in the manner described
above. Either party may, at any time, change its Notice Address (other than to a post office box
address) by giving the other party written notice of the new address.
25. Surrender of Premises.
At the termination of this Lease or Tenant’s right of possession, Tenant shall remove Tenant’s
Property from the Premises, and quit and surrender the Premises to Landlord, broom clean, and in
good order, condition and repair, ordinary wear and tear and damage which Landlord is obligated to
repair hereunder excepted. If Tenant fails to remove any of Tenant’s Property within 2 days after
termination of this Lease or Tenant’s right to possession, Landlord,
at Tenant’s sole cost and expense, shall be entitled (but not obligated) to remove and store
Tenant’s Property. Landlord shall not be responsible for the value, preservation or safekeeping of
Tenant’s Property. Tenant shall pay Landlord, upon demand, the expenses and storage charges
incurred. If Tenant fails to remove Tenant’s Property from the Premises or storage, within 30 days
after notice, Landlord may deem all or any part of Tenant’s Property to be abandoned and title to
Tenant’s Property shall vest in Landlord.
26. Miscellaneous.
26.01 This Lease shall be interpreted and enforced in accordance with the Laws of the State
of California and Landlord and Tenant hereby irrevocably consent to the jurisdiction and proper
venue of such state or commonwealth. If any term or provision of this Lease shall to any extent be
void or unenforceable, the remainder of this Lease shall not be affected. If there is more than one
Tenant or if Tenant is comprised of more than one party or entity, the obligations imposed upon
Tenant shall be joint and several obligations of all the parties and entities, and requests or
demands from any one person or entity comprising Tenant shall be deemed to have been made by all
such persons or entities. Notices to any one person or entity shall be deemed to have been given
to all persons and entities. Tenant represents and warrants to Landlord that each individual
executing this Lease on behalf of Tenant is authorized to do so on behalf of Tenant and that Tenant
is not, and the entities or individuals constituting Tenant or which may own or control Tenant or
which may be owned or controlled by Tenant are not, (i) in violation of any laws relating to
terrorism or money laundering, or (ii) among the individuals or entities identified on any list
compiled pursuant to Executive Order 13224 for the purpose of identifying suspected terrorists or
on the most current list published by the U.S. Treasury Department Office of Foreign Assets Control
at its official website, xxxx://xxx.xxxxx.xxx/xxxx/xxxxxx.xxx or any replacement website or other
replacement official publication of such list.
11
26.02 If either party institutes a suit against the other for violation of or to enforce any
covenant, term or condition of this Lease, the prevailing party shall be entitled to reimbursement
of all of its costs and expenses, including, without limitation, reasonable attorneys’ fees.
Landlord and Tenant hereby waive any right to trial by jury in any proceeding based upon a breach
of this Lease. Either party’s failure to declare a default immediately upon its occurrence, or
delay in taking action for a default, shall not constitute a waiver of the default, nor shall it
constitute an estoppel.
26.03 Whenever a period of time is prescribed for the taking of an action by Landlord or
Tenant (other than the payment of the Security Deposit or Rent), the period of time for the
performance of such action shall be extended by the number of days that the performance is actually
delayed due to strikes, acts of God, shortages of labor or materials, war, terrorist acts, civil
disturbances and other causes beyond the reasonable control of the performing party (“Force
Majeure”).
26.04 Landlord shall have the right to transfer and assign, in whole or in part, all of its
rights and obligations under this Lease and in the Building and Property. Upon transfer Landlord
shall be released from any further obligations hereunder and Tenant agrees to look solely to the
successor in interest of Landlord for the performance of such obligations, provided that, any
successor pursuant to a voluntary, third party transfer (but not as part of an involuntary transfer
resulting from a foreclosure or deed in lieu thereof) shall have assumed Landlord’s obligations
under this Lease.
26.05 Landlord has delivered a copy of this Lease to Tenant for Tenant’s review only and the
delivery of it does not constitute an offer to Tenant or an option. Tenant represents that it has
dealt directly with and only with the Broker as a broker in connection with this Lease. Tenant
shall indemnify and hold Landlord and the Landlord Related Parties harmless from all claims of any
other brokers claiming to have represented Tenant in connection with this Lease. Landlord shall
indemnify and hold Tenant and the Tenant Related Parties harmless from all claims of any brokers
claiming to have represented Landlord in connection with this Lease. Equity Office Properties
Management Corp. (“EOPMC”) is an affiliate of Landlord and represents only the Landlord in this
transaction. Any assistance rendered by any agent or employee of EOPMC in connection with this
Lease or any subsequent amendment or modification hereto has been or will be made as an
accommodation to Tenant solely in furtherance of consummating the transaction on behalf of
Landlord, and not as agent for Tenant.
26.06 Time is of the essence with respect to Tenant’s exercise of any expansion, renewal or
extension rights granted to Tenant. The expiration of the Term, whether by lapse of time,
termination or otherwise, shall not relieve either party of any obligations which accrued prior to
or which may continue to accrue after the expiration or termination of this Lease.
26.07 Tenant may peacefully have, hold and enjoy the Premises, subject to the terms of this
Lease, provided Tenant pays the Rent and fully performs all of its covenants and agreements. This
covenant shall be binding upon Landlord and its successors only during its or their respective
periods of ownership of the Building.
26.08 This Lease does not grant any rights to light or air over or about the Building.
Landlord excepts and reserves exclusively to itself any and all rights not specifically granted to
Tenant under this Lease. This Lease constitutes the entire agreement between the parties and
supersedes all prior agreements and understandings related to the Premises, including all lease
proposals, letters of intent and other documents. Neither party is relying upon any warranty,
statement or representation not contained in this Lease. This Lease may be modified only by a
written agreement signed by an authorized representative of Landlord and Tenant.
SIGNATURES ON FOLLOWING PAGE
12
Landlord and Tenant have executed this Lease as of the day and year first above written.
LANDLORD:
EOP-PENINSULA OFFICE PARK, L.L.C., a Delaware
limited liability company
limited liability company
By: | EOP Operating Limited Partnership, a Delaware limited partnership, its sole member | |||||||
By: | Equity Office Properties Trust, a Maryland real estate investment trust, its general partner |
|||||||
By: | /s/ Xxxxxxx X. Xxxxxxx | |||||||
Name: | Xxxxxxx X. Xxxxxxx | |||||||
Title: | Vice President-Leasing |
TENANT:
XXXX.XXX ONLINE, a California corporation
By:
|
/s/ Xx Xxxxx | |||
Name:
|
Xx Xxxxx | |||
Title:
|
General Manager, SINA U.S. | |||
By:
|
/s/ Xxxxx Xx | |||
Name:
|
Shang (Xxxxxx) Wu | |||
Title:
|
Secretary |
Tenant’s Tax ID Number (SSN or FEIN):
00-000-0000
1
EXHIBIT A
OUTLINE AND LOCATION OF PREMISES
This Exhibit is attached to and made a part of the Lease by and between EOP-PENINSULA OFFICE PARK,
L.L.C., a Delaware limited liability company (“Landlord”) and XXXX.XXX ONLINE, a California
corporation (“Tenant”) for space in the Building located at 0000 Xxxxxx Xxxxx, Xxx Xxxxx,
Xxxxxxxxxx.
1
EXHIBIT B
EXPENSES AND TAXES
This Exhibit is attached to and made a part of the Lease by and between EOP-PENINSULA OFFICE PARK,
L.L.C., a Delaware limited liability company (“Landlord”) and XXXX.XXX ONLINE, a California
corporation (“Tenant”) for space in the Building located at 0000 Xxxxxx Xxxxx, Xxx Xxxxx,
Xxxxxxxxxx.
1. Payments.
1.01 Tenant shall pay Tenant’s Pro Rata Share of the amount, if any, by which Expenses
(defined below) for each calendar year during the Term exceed Expenses for the Base Year (the
“Expense Excess”) and also the amount, if any, by which Taxes (defined below) for each calendar
year during the Term exceed Taxes for the Base Year (the “Tax Excess”). If Expenses or Taxes in
any calendar year decrease below the amount of Expenses or Taxes for the Base Year, Tenant’s Pro
Rata Share of Expenses or Taxes, as the case may be, for that calendar year shall be $0. Landlord
shall provide Tenant with a good faith estimate of the Expense Excess and of the Tax Excess for
each calendar year during the Term. On or before the first day of each month, Tenant shall pay to
Landlord a monthly installment equal to one-twelfth of Tenant’s Pro Rata Share of Landlord’s
estimate of both the Expense Excess and Tax Excess. After its receipt of the revised estimate,
Tenant’s monthly payments shall be based upon the revised estimate. If Landlord does not provide
Tenant with an estimate of the Expense Excess or the Tax Excess by January 1 of a calendar year,
Tenant shall continue to pay monthly installments based on the previous year’s estimate(s) until
Landlord provides Tenant with the new estimate.
1.02 As soon as is practical following the end of each calendar year, Landlord shall furnish
Tenant with a statement of the actual Expenses and Expense Excess and the actual Taxes and Tax
Excess for the prior calendar year. If the estimated Expense Excess or estimated Tax Excess for
the prior calendar year is more than the actual Expense Excess or actual Tax Excess, as the case
may be, for the prior calendar year, Landlord shall either provide Tenant with a refund or apply
any overpayment by Tenant against Additional Rent due or next becoming due, provided if the Term
expires before the determination of the overpayment, Landlord shall refund any overpayment to
Tenant after first deducting the amount of Rent due. If the estimated Expense Excess or estimated
Tax Excess for the prior calendar year is less than the actual Expense Excess or actual Tax Excess,
as the case may be, for such prior year, Tenant shall pay Landlord, within 30 days after its
receipt of the statement of Expenses or Taxes, any underpayment for the prior calendar year.
2. Expenses.
2.01 “Expenses” means all costs and expenses incurred in each calendar year in connection
with operating, maintaining, repairing, and managing the Building and the Property. Expenses
include, without limitation: (a) all labor and labor related costs, including wages, salaries,
bonuses, taxes, insurance, uniforms, training, retirement plans, pension plans and other employee
benefits; (b) management fees; (c) the cost of equipping, staffing and operating an on-site and/or
off-site management office for the Building, provided if the management office services one or more
other buildings or properties, the shared costs and expenses of equipping, staffing and operating
such management office(s) shall be equitably prorated and apportioned between the Building and the
other buildings or properties; (d) accounting costs; (e) the cost of services; (f) rental and
purchase cost of parts, supplies, tools and equipment; (g) insurance premiums and deductibles; (h)
electricity, gas and other utility costs; and (i) the amortized cost of capital improvements (as
distinguished from replacement parts or components installed in the ordinary course of business)
made subsequent to the Base Year which are: (1) performed primarily to reduce current or future
operating expense costs, upgrade Building security or otherwise improve the operating efficiency of
the Property; or (2) required to comply with any Laws that are enacted, or first interpreted to
apply to the Property, after the date of this Lease. The cost of capital improvements shall be
amortized by Landlord over the lesser of the Payback Period (defined below) or the useful life of
the capital improvement as reasonably determined by Landlord. The amortized cost of capital
improvements may, at Landlord’s option, include actual or imputed interest at the rate that
Landlord would reasonably be required to pay to finance the cost of the capital improvement.
“Payback Period” means the reasonably estimated period of time that it takes for the cost savings
resulting from a capital improvement to equal the total cost of the capital improvement. Landlord,
by itself or through an affiliate, shall have the right to directly
perform, provide and be compensated for any services under this Lease. If Landlord incurs
Expenses for the Building or
1
Property together with one or more other buildings or properties,
whether pursuant to a reciprocal easement agreement, common area agreement or otherwise, the shared
costs and expenses shall be equitably prorated and apportioned between the Building and Property
and the other buildings or properties.
2.02 Expenses shall not include: the cost of capital improvements (except as set forth
above); depreciation; principal payments of mortgage and other non-operating debts of Landlord; the
cost of repairs or other work to the extent Landlord is reimbursed by insurance or condemnation
proceeds; costs in connection with leasing space in the Building, including brokerage commissions;
lease concessions, rental abatements and construction allowances granted to specific tenants; costs
incurred in connection with the sale, financing or refinancing of the Building; fines, interest and
penalties incurred due to the late payment of Taxes or Expenses; organizational expenses associated
with the creation and operation of the entity which constitutes Landlord; or any penalties or
damages that Landlord pays to Tenant under this Lease or to other tenants in the Building under
their respective leases.
2.03 If at any time during a calendar year the Building is not at least 95% occupied or
Landlord is not supplying services to at least 95% of the total Rentable Square Footage of the
Building, Expenses shall, at Landlord’s option, be determined as if the Building had been 95%
occupied and Landlord had been supplying services to 95% of the Rentable Square Footage of the
Building. If Expenses for a calendar year are determined as provided in the prior sentence,
Expenses for the Base Year shall also be determined in such manner. Notwithstanding the foregoing,
Landlord may calculate the extrapolation of Expenses under this Section based on 100% occupancy and
service so long as such percentage is used consistently for each year of the Term. The
extrapolation of Expenses under this Section shall be performed in accordance with the methodology
specified by the Building Owners and Managers Association.
3. “Taxes” shall mean: (a) all real property taxes and other assessments on the Building and/or
Property, including, but not limited to, gross receipts taxes, assessments for special improvement
districts and building improvement districts, governmental charges, fees and assessments for
police, fire, traffic mitigation or other governmental service of purported benefit to the
Property, taxes and assessments levied in substitution or supplementation in whole or in part of
any such taxes and assessments and the Property’s share of any real estate taxes and assessments
under any reciprocal easement agreement, common area agreement or similar agreement as to the
Property; (b) all personal property taxes for property that is owned by Landlord and used in
connection with the operation, maintenance and repair of the Property; and (c) all costs and fees
incurred in connection with seeking reductions in any tax liabilities described in (a) and (b),
including, without limitation, any costs incurred by Landlord for compliance, review and appeal of
tax liabilities. Without limitation, Taxes shall not include any income, capital levy, transfer,
capital stock, gift, estate or inheritance tax. If a change in Taxes is obtained for any year of
the Term during which Tenant paid Tenant’s Pro Rata Share of any Tax Excess, then Taxes for that
year will be retroactively adjusted and Landlord shall provide Tenant with a credit, if any, based
on the adjustment. Likewise, if a change is obtained for Taxes for the Base Year, Taxes for the
Base Year shall be restated and the Tax Excess for all subsequent years shall be recomputed.
Tenant shall pay Landlord the amount of Tenant’s Pro Rata Share of any such increase in the Tax
Excess within 30 days after Tenant’s receipt of a statement from Landlord.
4. Audit Rights. Tenant, within 365 days after receiving Landlord’s statement of Expenses, may
give Landlord written notice (“Review Notice”) that Tenant intends to review Landlord’s records of
the Expenses for the calendar year to which the statement applies. Within a reasonable time after
receipt of the Review Notice, Landlord shall make all pertinent records available for inspection
that are reasonably necessary for Tenant to conduct its review. If any records are maintained at a
location other than the management office for the Building, Tenant may either inspect the records
at such other location or pay for the reasonable cost of copying and shipping the records. If
Tenant retains an agent to review Landlord’s records, the agent must be with a CPA firm licensed to
do business in the state or commonwealth where the Property is located. Tenant shall be solely
responsible for all costs, expenses and fees incurred for the audit. Within 90 days after the
records are made available to Tenant, Tenant shall have the right to give Landlord written notice
(an “Objection Notice”) stating in reasonable detail any objection to Landlord’s statement of
Expenses for that year. If Tenant fails to give Landlord an Objection Notice within the 90 day
period or fails to provide Landlord with a Review Notice within the 365 day period described above,
Tenant shall be deemed to have approved Landlord’s statement of Expenses and shall be barred from
raising any claims
regarding the Expenses for that year. If Tenant provides Landlord with a timely Objection Notice,
Landlord and Tenant shall work together in good faith to resolve any issues raised in Tenant’s
Objection Notice. If Landlord and Tenant determine that Expenses for the calendar year are less
than
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reported, Landlord shall provide Tenant with a credit against the next installment of Rent in
the amount of the overpayment by Tenant. Likewise, if Landlord and Tenant determine that Expenses
for the calendar year are greater than reported, Tenant shall pay Landlord the amount of any
underpayment within 30 days. The records obtained by Tenant shall be treated as confidential. In
no event shall Tenant be permitted to examine Landlord’s records or to dispute any statement of
Expenses unless Tenant has paid and continues to pay all Rent when due.
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EXHIBIT C
WORK LETTER
This Exhibit is attached to and made a part of the Lease by and between EOP-PENINSULA OFFICE PARK,
L.L.C., a Delaware limited liability company (“Landlord”) and XXXX.XXX ONLINE, a California
corporation (“Tenant”) for space in the Building located at 0000 Xxxxxx Xxxxx, Xxx Xxxxx,
Xxxxxxxxxx.
As used in this Work Letter, the “Premises” shall be deemed to mean the Premises, as initially
defined in the attached Lease.
1. | Landlord, at its sole cost and expense (subject to the terms and provisions of Section 2 below) shall perform improvements to the Premises in accordance with the following work list (the “Work List”) using Building standard methods, materials and finishes. The improvements to be performed in accordance with the Work Llist are hereinafter referred to as the “Landlord Work”. Landlord shall enter into a direct contract for the Landlord Work with a general contractor selected by Landlord. In addition, Landlord shall have the right to select and/or approve of any subcontractors used in connection with the Landlord Work. |
WORK LIST
ITEM
a. | Installation of a magnetic device used to hold one front door to the Premises open. |
2. | All other work and upgrades, subject to Landlord’s approval, shall be at Tenant’s sole cost and expense, plus any applicable state sales or use tax thereon, payable upon demand as Additional Rent. Tenant shall be responsible for any Tenant Delay in completion of the Premises resulting from any such other work and upgrades requested or performed by Tenant. | |
3. | Landlord’s supervision or performance of any work for or on behalf of Tenant shall not be deemed to be a representation by Landlord that such work complies with applicable insurance requirements, building codes, ordinances, laws or regulations or that the improvements constructed will be adequate for Tenant’s use. | |
4. | Tenant acknowledges that the Landlord Work may be performed by Landlord in the Premises during Building Service Hours subsequent to the Commencement Date. Landlord and Tenant agree to cooperate with each other in order to enable the Landlord Work to be performed in a timely manner and with as little inconvenience to the operation of Tenant’s business as is reasonably possible. Notwithstanding anything herein to the contrary, any delay in the completion of the Landlord Work or inconvenience suffered by Tenant during the performance of the Landlord Work shall not delay the Commencement Date nor shall it subject Landlord to any liability for any loss or damage resulting therefrom or entitle Tenant to any credit, abatement or adjustment of Rent or other sums payable under the Lease. | |
5. | This Exhibit shall not be deemed applicable to any additional space added to the Premises at any time or from time to time, whether by any options under the Lease or otherwise, or to any portion of the original Premises or any additions to the Premises in the event of a renewal or extension of the original Term of the Lease, whether by any options under the Lease or otherwise, unless expressly so provided in the Lease or any amendment or supplement to the Lease. |
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EXHIBIT D
COMMENCEMENT LETTER
This Exhibit is attached to and made a part of the Lease by and between EOP-PENINSULA OFFICE PARK,
L.L.C., a Delaware limited liability company (“Landlord”) and XXXX.XXX ONLINE, a California
corporation (“Tenant”) for space in the Building located at 0000 Xxxxxx Xxxxx, Xxx Xxxxx,
Xxxxxxxxxx.
(EXAMPLE)
Date
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Tenant
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Address
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Re: | Commencement Letter with respect to that certain Lease dated as of the _____ day of , 2005, by and between EOP-PENINSULA OFFICE PARK, L.L.C., a Delaware limited liability company, as Landlord, and XXXX.XXX ONLINE, a California corporation, as Tenant, for 5,238 rentable square feet on the 1st floor of the Building located at 0000 Xxxxxx Xxxxx, Xxx Xxxxx, Xxxxxxxxxx. |
Lease Id: |
Business Unit Number: |
Dear | : |
In accordance with the terms and conditions of the above referenced Lease, Tenant accepts
possession of the Premises and agrees:
1. | The Commencement Date of the Lease is ; | ||
2. | The Termination Date of the Lease is . |
Please acknowledge your acceptance of possession and agreement to the terms set forth above by
signing all 3 counterparts of this Commencement Letter in the space provided and returning 2 fully
executed counterparts to my attention. Tenant’s failure to execute and return this letter, or to
provide written objection to the statements contained in this letter, within 30 days after the date
of this letter shall be deemed an approval by Tenant of the statements contained herein.
Sincerely,
Authorized Signatory
Agreed and Accepted:
Tenant: XXXX.XXX ONLINE, a California corporation
By:
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Name:
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Title:
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Date:
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EXHIBIT E
BUILDING RULES AND REGULATIONS
This Exhibit is attached to and made a part of the Lease by and between EOP-PENINSULA OFFICE PARK,
L.L.C., a Delaware limited liability company (“Landlord”) and XXXX.XXX ONLINE, a California
corporation (“Tenant”) for space in the Building located at 0000 Xxxxxx Xxxxx, Xxx Xxxxx,
Xxxxxxxxxx.
The following rules and regulations shall apply, where applicable, to the Premises, the
Building, the parking facilities (if any), the Property and the appurtenances. In the event of a
conflict between the following rules and regulations and the remainder of the terms of the Lease,
the remainder of the terms of the Lease shall control. Capitalized terms have the same meaning as
defined in the Lease.
1. | Sidewalks, doorways, vestibules, halls, stairways and other similar areas shall not be obstructed by Tenant or used by Tenant for any purpose other than ingress and egress to and from the Premises. No rubbish, litter, trash, or material shall be placed, emptied, or thrown in those areas. At no time shall Tenant permit Tenant’s employees to loiter in Common Areas or elsewhere about the Building or Property. | |
2. | Plumbing fixtures and appliances shall be used only for the purposes for which designed and no sweepings, rubbish, rags or other unsuitable material shall be thrown or placed in the fixtures or appliances. | |
3. | No signs, advertisements or notices shall be painted or affixed to windows, doors or other parts of the Building, except those of such color, size, style and in such places as are first approved in writing by Landlord. All tenant identification and suite numbers at the entrance to the Premises shall be installed by Landlord, at Tenant’s cost and expense, using the standard graphics for the Building. Except in connection with the hanging of lightweight pictures and wall decorations, no nails, hooks or screws shall be inserted into any part of the Premises or Building except by the Building maintenance personnel without Landlord’s prior approval, which approval shall not be unreasonably withheld. | |
4. | Landlord may provide and maintain in the first floor (main lobby) of the Building an alphabetical directory board or other directory device listing tenants and no other directory shall be permitted unless previously consented to by Landlord in writing. | |
5. | Tenant shall not place any lock(s) on any door in the Premises or Building without Landlord’s prior written consent, which consent shall not be unreasonably withheld, and Landlord shall have the right at all times to retain and use keys or other access codes or devices to all locks within and into the Premises. A reasonable number of keys to the locks on the entry doors in the Premises shall be furnished by Landlord to Tenant at Tenant’s cost and Tenant shall not make any duplicate keys. All keys shall be returned to Landlord at the expiration or early termination of the Lease. | |
6. | All contractors, contractor’s representatives and installation technicians performing work in the Building shall be subject to Landlord’s prior approval, which approval shall not be unreasonably withheld, and shall be required to comply with Landlord’s standard rules, regulations, policies and procedures, which may be revised from time to time. | |
7. | Movement in or out of the Building of furniture or office equipment, or dispatch or receipt by Tenant of merchandise or materials requiring the use of elevators, stairways, lobby areas or loading dock areas, shall be restricted to hours reasonably designated by Landlord. Tenant shall obtain Landlord’s prior approval by providing a detailed listing of the activity, which approval shall not be unreasonably withheld. If approved by Landlord, the activity shall be under the supervision of Landlord and performed in the manner required by Landlord. Tenant shall assume all risk for damage to articles moved and injury to any persons resulting from the activity. If equipment, property, or personnel of Landlord or of any other party is damaged or injured as a result of or in connection with the activity, Tenant shall be solely liable for any resulting damage, loss or injury. | |
8. | Landlord shall have the right to approve the weight, size, or location of heavy equipment or articles in and about the Premises, which approval shall not be unreasonably withheld. Damage to the Building by the installation, maintenance, operation, existence or removal of Tenant’s Property shall be repaired at Tenant’s sole expense. | |
9. | Corridor doors, when not in use, shall be kept closed. | |
10. | Tenant shall not: (1) make or permit any improper, objectionable or unpleasant noises or odors in the Building, or otherwise interfere in any way with other tenants or persons having business with |
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them; (2) solicit business or distribute or cause to be distributed, in any portion of the Building, handbills, promotional materials or other advertising; or (3) conduct or permit other activities in the Building that might, in Landlord’s sole opinion, constitute a nuisance. | ||
11. | No animals, except those assisting handicapped persons, shall be brought into the Building or kept in or about the Premises. | |
12. | No inflammable, explosive or dangerous fluids or substances shall be used or kept by Tenant in the Premises, Building or about the Property, except for those substances as are typically found in similar premises used for general office purposes and are being used by Tenant in a safe manner and in accordance with all applicable Laws. Tenant shall not, without Landlord’s prior written consent, use, store, install, spill, remove, release or dispose of, within or about the Premises or any other portion of the Property, any asbestos-containing materials or any solid, liquid or gaseous material now or subsequently considered toxic or hazardous under the provisions of 42 U.S.C. Section 9601 et seq. or any other applicable environmental Law which may now or later be in effect. Tenant shall comply with all Laws pertaining to and governing the use of these materials by Tenant and shall remain solely liable for the costs of abatement and removal. | |
13. | Tenant shall not use or occupy the Premises in any manner or for any purpose which might injure the reputation or impair the present or future value of the Premises or the Building. Tenant shall not use, or permit any part of the Premises to be used for lodging, sleeping or for any illegal purpose. | |
14. | Tenant shall not take any action which would violate Landlord’s labor contracts or which would cause a work stoppage, picketing, labor disruption or dispute or interfere with Landlord’s or any other tenant’s or occupant’s business or with the rights and privileges of any person lawfully in the Building (“Labor Disruption”). Tenant shall take the actions necessary to resolve the Labor Disruption, and shall have pickets removed and, at the request of Landlord, immediately terminate any work in the Premises that gave rise to the Labor Disruption, until Landlord gives its written consent for the work to resume. Tenant shall have no claim for damages against Landlord or any of the Landlord Related Parties nor shall the Commencement Date of the Term be extended as a result of the above actions. | |
15. | Tenant shall not install, operate or maintain in the Premises or in any other area of the Building, electrical equipment that would overload the electrical system beyond its capacity for proper, efficient and safe operation as determined solely by Landlord. Tenant shall not furnish cooling or heating to the Premises, including, without limitation, the use of electric or gas heating devices, without Landlord’s prior written consent. Tenant shall not use more than its proportionate share of telephone lines and other telecommunication facilities available to service the Building. | |
16. | Tenant shall not operate or permit to be operated a coin or token operated vending machine or similar device (including, without limitation, telephones, lockers, toilets, scales, amusement devices and machines for sale of beverages, foods, candy, cigarettes and other goods), except for machines for the exclusive use of Tenant’s employees and invitees. | |
17. | Bicycles and other vehicles are not permitted inside the Building or on the walkways outside the Building, except in areas designated by Landlord. | |
18. | Landlord may from time to time adopt systems and procedures for the security and safety of the Building and Property, its occupants, entry, use and contents. Tenant, its agents, employees, contractors, guests and invitees shall comply with Landlord’s systems and procedures. | |
19. | Landlord shall have the right to prohibit the use of the name of the Building or any other publicity by Tenant that in Landlord’s sole opinion may impair the reputation of the Building or its desirability. Upon written notice from Landlord, Tenant shall refrain from and discontinue such publicity immediately. | |
20. | Neither Tenant nor its agents, employees, contractors, guests or invitees shall smoke or permit smoking in the Common Areas, unless a portion of the Common Areas have been declared a designated smoking area by Landlord, nor shall the above parties allow smoke from the Premises to emanate into the Common Areas or any other part of the Building. Landlord shall have the right to designate the Building (including the Premises) as a non-smoking building. | |
21. | Landlord shall have the right to designate and approve standard window coverings for the Premises and to establish rules to assure that the Building presents a uniform exterior appearance. Tenant shall ensure, to the extent reasonably practicable, that window coverings are closed on windows in the Premises while they are exposed to the direct rays of the sun. | |
22. | Deliveries to and from the Premises shall be made only at the times in the areas and through the entrances and exits reasonably designated by Landlord. Tenant shall not make deliveries to or from the Premises in a manner that might interfere with the use by any other tenant of its premises or of |
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the Common Areas, any pedestrian use, or any use which is inconsistent with good business practice. | ||
23. | The work of cleaning personnel shall not be hindered by Tenant after 5:30 p.m., and cleaning work may be done at any time when the offices are vacant. Windows, doors and fixtures may be cleaned at any time. Tenant shall provide adequate waste and rubbish receptacles to prevent unreasonable hardship to the cleaning service. |
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EXHIBIT F
ADDITIONAL PROVISIONS
This Exhibit is attached to and made a part of the Lease by and between EOP-PENINSULA OFFICE PARK,
L.L.C., a Delaware limited liability company (“Landlord”) and XXXX.XXX ONLINE, a California
corporation (“Tenant”) for space in the Building located at 0000 Xxxxxx Xxxxx, Xxx Xxxxx,
Xxxxxxxxxx.
1. | Asbestos Notification. Tenant acknowledges that Tenant has received the asbestos notification letter attached to this Lease as Exhibit H hereto, disclosing the existence of asbestos in the Building. As part of Tenant’s obligations under this Lease, Tenant agrees to comply with the California “Xxxxxxxx Act” and other applicable Laws, including providing copies of Landlord’s asbestos notification letter to all of Tenant’s “employees” and “owners”, as those terms are defined in the Xxxxxxxx Act and other applicable Laws. |
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EXHIBIT G
PARKING AGREEMENT
This Exhibit (the “Parking Agreement”) is attached to and made a part of the Lease by and between
EOP-PENINSULA OFFICE PARK, L.L.C., a Delaware limited liability company (“Landlord”) and XXXX.XXX
ONLINE, a California corporation (“Tenant”) for space in the Building located at 0000 Xxxxxx Xxxxx,
Xxx Xxxxx, Xxxxxxxxxx.
1. | During the initial Term, Tenant agrees to lease from Landlord and Landlord agrees to lease to Tenant a total of 17 non-reserved parking spaces and 0 reserved parking spaces in the parking facility servicing the Building (“Parking Facility”). During the initial Term, there shall be no charge for such parking spaces. Tenant may, from time to time request additional parking spaces, and if Landlord shall provide the same, such parking spaces shall be provided and used on a month-to-month basis, and otherwise on the following terms and provisions, and at such prevailing monthly parking charges as shall be established from time to time. Such charges, if any, shall be payable in advance to Landlord or such other entity as designated by Landlord, and shall be sent concurrent with Tenant’s payment of monthly Base Rent to the address Landlord designates from time to time. Except as otherwise set forth herein below, no deductions from such charges, if any, shall be made for days on which the Parking Facility is not used by Tenant. | |
2. | Tenant shall at all times comply with all applicable ordinances, rules, regulations, codes, laws, statutes and requirements of all federal, state, county and municipal governmental bodies or their subdivisions respecting the use of the Parking Facility. Landlord reserves the right to adopt, modify and enforce reasonable rules (“Rules”) governing the use of the Parking Facility from time to time including any key-card, sticker or other identification or entrance system and hours of operation. Landlord may refuse to permit any person who violates such Rules to park in the Parking Facility, and any violation of the Rules shall subject the car to removal from the Parking Facility. Tenant shall comply with and cause its employees to comply with all the Rules as well as all reasonable additions and amendments thereto. | |
3. | Unless specified to the contrary above, the parking spaces hereunder shall be provided on a non-designated “first-come, first-served” basis. Subject to Tenant’s rights to the reserved spaces set forth above, if any, Landlord reserves the right to assign other specific parking spaces, and to reserve other parking spaces for visitors, small cars, handicapped persons and for other tenants, guests of tenants or other parties, which assignment and reservation or spaces may be relocated as determined by Landlord from time to time, and Tenant and persons designated by Tenant hereunder shall not park in any such location designated for such assigned or reserved parking spaces. Tenant acknowledges that the Parking Facility may be closed entirely or in part in order to make repairs or perform maintenance services, or to alter, modify, re-stripe or renovate the Parking Facility, or if required by casualty, strike, condemnation, act of God, governmental law or requirement or other reason beyond the operator’s reasonable control; and in such events, Landlord shall refund any prepaid parking fee hereunder, prorated on a per diem basis. | |
4. | Tenant shall not store or permit its employees to store any automobiles in the Parking Facility without the prior written consent of the operator. Except for emergency repairs, Tenant and its employees shall not perform any work on any automobiles while located in the Parking Facility, or on the Property. If it is necessary for Tenant or its employees to leave an automobile in the Parking Facility overnight, Tenant shall provide the operator with prior notice thereof designating the license plate number and model of such automobile. | |
5. | LANDLORD SHALL NOT BE LIABLE FOR ANY LOSS, INJURY OR DAMAGE TO PERSONS USING THE PARKING FACILITY OR AUTOMOBILES OR OTHER PROPERTY THEREIN, IT BEING AGREED THAT, TO THE FULLEST EXTENT PERMITTED BY LAW, THE USE OF THE SPACES SHALL BE AT THE SOLE RISK OF TENANT AND ITS EMPLOYEES. WITHOUT LIMITING THE FOREGOING, TENANT HEREBY VOLUNTARILY RELEASES, DISCHARGES, WAIVES AND RELINQUISHES ANY AND ALL ACTIONS OR CAUSES OF ACTION FOR PERSONAL INJURY OR PROPERTY DAMAGE OCCURRING TO TENANT ARISING AS A RESULT OF PARKING IN THE PARKING FACILITY, OR ANY ACTIVITIES INCIDENTAL THERETO, WHEREVER OR HOWEVER THE SAME MAY OCCUR, AND FURTHER AGREES THAT TENANT WILL NOT PROSECUTE ANY CLAIM FOR PERSONAL INJURY OR PROPERTY DAMAGE AGAINST LANDLORD OR ANY OF THE LANDLORD RELATED PARTIES FOR ANY SAID CAUSES OF ACTION. IN ALL EVENTS, TENANT AGREES TO LOOK FIRST TO ITS INSURANCE CARRIER AND TO REQUIRE THAT TENANT’S EMPLOYEES LOOK FIRST TO THEIR RESPECTIVE INSURANCE CARRIERS FOR PAYMENT OF ANY LOSSES SUSTAINED IN |
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CONNECTION WITH ANY USE OF THE PARKING FACILITY. TENANT HEREBY WAIVES ON BEHALF OF ITS INSURANCE CARRIERS ALL RIGHTS OF SUBROGATION AGAINST LANDLORD OR LANDLORD RELATED PARTIES. Notwithstanding the foregoing, but except as provided in Section 15 of the Lease (Subrogation) and Section 20 of the Lease (Limitation of Liability) to the contrary, Tenant shall not be required to waive any claims against Landlord (other than for loss or damage to Tenant’s business) where such loss or damage is due to the negligence or willful misconduct of Landlord or any Landlord Related Parties. | ||
6. | Tenant shall not assign its rights under this Parking Agreement or sublease any of the parking spaces without the consent of Landlord. Landlord shall have the right to terminate this Parking Agreement with respect to any parking spaces that Tenant desires to sublet or assign its rights thereto. | |
7. | Landlord hereby reserves the right to enter into a management agreement or lease with another entity for the operation of the Parking Facility (“Operator”). In such event, Tenant, upon request of Landlord, shall enter into a parking agreement upon substantially the same terms hereunder with the Operator and pay the Operator the monthly charge established hereunder, and Landlord shall have no liability for claims arising through acts or omissions of the Operator. It is understood and agreed that the identity of the Operator may change from time to time during the Term. In connection therewith, any parking lease or agreement entered into between Tenant and any Operator shall be freely assignable by such Operator or any successors thereto. |
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EXHIBIT H
ASBESTOS NOTIFICATION
This Exhibit is attached to and made a part of the Lease by and between EOP-PENINSULA OFFICE PARK,
L.L.C., a Delaware limited liability company (“Landlord”) and XXXX.XXX ONLINE, a California
corporation (“Tenant”) for space in the Building located at 0000 Xxxxxx Xxxxx, Xxx Xxxxx,
Xxxxxxxxxx.
Asbestos-containing materials (“ACMs”) were historically commonly used in the construction of
commercial buildings across the country. ACMs were commonly used because of their beneficial
qualities; ACMs are fire-resistant and provide good noise and temperature insulation.
Some common types of ACMs include surfacing materials (such as spray-on fireproofing, stucco,
plaster and textured paint), flooring materials (such as vinyl floor tile and vinyl floor sheeting)
and their associated mastics, carpet mastic, thermal system insulation (such as pipe or duct wrap,
boiler wrap and cooling tower insulation), roofing materials, drywall, drywall joint tape and
drywall joint compound, acoustic ceiling tiles, transite board, base cove and associated mastic,
caulking, window glazing and fire doors. These materials are not required under law to be removed
from any building (except prior to demolition and certain renovation projects). Moreover, ACMs
generally are not thought to present a threat to human health unless they cause a release of
asbestos fibers into the air, which does not typically occur unless (1) the ACMs are in a
deteriorated condition, or (2) the ACMs have been significantly disturbed (such as through abrasive
cleaning, or maintenance or renovation activities).
It is possible that some of the various types of ACMs noted above (or other types) are present
at various locations in the Building. Anyone who finds any such materials in the Building should
assume them to contain asbestos unless those materials are properly tested and found to be
otherwise. In addition, under applicable law, certain of these materials are required to be
presumed to contain asbestos in the Building because the Building was built prior to 1981 (these
materials are typically referred to as “Presumed Asbestos Containing Materials” or “PACM”). PACM
consists of thermal system insulation and surfacing material found in buildings constructed prior
to 1981, and asphalt or vinyl flooring installed prior to 1981. If any thermal system insulation,
asphalt or vinyl flooring or surfacing materials are found to be present in the Building, such
materials must be considered PACM unless properly tested and found otherwise. In addition,
Landlord has identified the presence of certain ACMs in the Building. For information about the
specific types and locations of these identified ACMs, please contact the Building manager. The
Building Manager maintains records of the Building’s asbestos information including any Building
asbestos surveys, sampling and abatement reports. This information is maintained as part of
Landlord’s asbestos Operations and Maintenance Plan (“O&M Plan”).
The O&M Plan is designed to minimize the potential of any harmful asbestos exposure to any
person in the Building. Because Landlord is not a physician, scientist or industrial hygienist,
Landlord has no special knowledge of the health impact of exposure to asbestos. Therefore,
Landlord hired an independent environmental consulting firm to prepare the Building’s O&M Plan.
The O&M Plan includes a schedule of actions to be taken in order to (1) maintain any building ACMs
in good condition, and (2) to prevent any significant disturbance of such ACMs. Appropriate
Landlord personnel receive regular periodic training on how to properly administer the O&M Plan.
The O&M Plan describes the risks associated with asbestos exposure and how to prevent such
exposure. The O&M Plan describes those risks, in general, as follows: asbestos is not a
significant health concern unless asbestos fibers are released and inhaled. If inhaled, asbestos
fibers can accumulate in the lungs and, as exposure increases, the risk of disease (such as
asbestosis and cancer) increases. However, measures taken to minimize exposure and consequently
minimize the accumulation of fibers, can reduce the risk of adverse health effects.
The O&M Plan also describes a number of activities which should be avoided in order to prevent
a release of asbestos fibers. In particular, some of the activities which may present a health
risk (because those activities may cause an airborne release of asbestos fibers) include moving,
drilling, boring or otherwise disturbing ACMs. Consequently, such activities should not be
attempted by any person not qualified to handle ACMs. In other words, the approval of Building
management must be obtained prior to engaging in any such activities. Please contact the Building
manager for more information in this regard. A copy of the written O&M Plan for the Building is
located in the Building Management Office and, upon your request, will be made available to tenants
for you to review and copy during regular business hours.
Because of the presence of ACM in the Building, we are also providing the following warning, which
is commonly known as a California Proposition 65 warning:
WARNING: This building contains asbestos, a chemical known to the State of California to
cause cancer.
Please contact the Building manager with any questions regarding the contents of this Exhibit
H.
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