EXHIBIT 10.16
THIRD AMENDMENT TO LEASE AGREEMENT
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(PARCELS 3, 4 AND 8)
THIS THIRD AMENDMENT TO LEASE AGREEMENT OF JULY 17, 1985 ("Third
Amendment") is entered into this 10th day of October, 1994, pursuant to
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a minute order adopted by the City Council of the City of Long Beach on the 12th
day of July, 1994, by and between the CITY OF LONG BEACH, a municipal
corporation ("Landlord"), and XXXXXX LONG BEACH ASSOCIATES, a California Limited
Partnership ("Developer").
Recitals:
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A. On July 17, 1985, a lease was entered into between the Landlord and
Developer (the "Lease"); and
B. On July 22, 1988, a Parcel Map No. 16960, in Book 208, Pages 92 through
100 of Parcel Maps was recorded in the Office of the County Recorder of Los
Angeles County, State of California; and
C. On January 24, 1989, the Lease was amended and subdivided by a First
Amendment to Lease in accordance with Subsection 7.6 of said Lease between
Landlord and Developer in order to establish three (3) separate ground leases
between Landlord and Developer, as follows:
Parcels 1 and 2 - Phase 1 of the development
Parcels 5 and 6 - Phase 2 of the development
Parcels 3, 4 and 8 - Phase 3 of the development
D. On December 28, 1990, the subdivided Lease for Parcels 3, 4 and 8 was
further amended by a Second Amendment to Lease (the Lease plus all amendments
are hereafter collectively referred to as the "Lease") in order to recognize and
clarify certain issues
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arising out of a development agreement entered into between the parties in
September 1990; and
E. The parties now desire to further amend the Lease for Parcels 3, 4 and
8 to provide for payment of past due rental and adjustments to rental payable by
Developer thereunder.
THE PARTIES AGREE as follows:
Section 1. Payment of Past Due Rental. Landlord and Developer
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acknowledge that the initial Ground Rent payable pursuant to Subsection 3.1.1 of
the Lease is past due for the months of August, 1993 through April, 1994 (the
"past due rental"). Landlord hereby agrees to accept the amount of $137,620.35
as payment in full of Ground Rent for all amounts due to Landlord through July
1, 1994, and any and all other delinquent amounts are waived and forgiven. Said
payment shall be made to Landlord upon the first to occur of: (a) commencement
of payment of subtenant rent under the sublease of Parcel 2 to Devry, Inc. or
(b) March 1, 1995. In the event that the past due rental is not fully paid prior
to November 1, 1994, Developer agrees that any past due rental not paid after
that date shall accrue interest at seven percent (7%) per annum until fully
paid.
Section 2. Adjustment to Initial Ground Rent. Subsection 3.1.1 of the
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Lease is hereby amended to read as follows:
"3.1.1. Amount of Ground Rent. Developer shall pay as initial
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Ground Rent for Parcels 3, 4 and 8 of the Parcel Map, the following amounts
during the following periods from July 1, 1994 through June 30, 1999:
3.1.1.1 for the period from July 1, 1994 through June
30, 1995, the sum of Fifty Thousand
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Dollars ($50,000.00);
3.1.1.2 For the period from July 1, 1995 through June 30, 1996, the
sum of Seventy-five Thousand Dollars ($75,000.00);
3.1.1.3 For the period from July 1, 1996 through June 30, 1997, the
sum of Seventy-five Thousand Dollars ($75,000.00);
3.1.1.4 For the period from July 1, 1997 through June 30, 1998, the
sum of Seventy-five Thousand Dollars ($75,000.00); and
3.1.1.5 For the period from July 1, 1998 through June 30, 1999, the
sum of One Hundred Thousand Dollars ($100,000.00)."
Section 3. Reactivation of Lease Ground Rent. Subsection 3.1.3 of the
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Lease is hereby amended to read as follows:
"3.1.3 Payment of Ground Rent. The obligation to pay Ground Rent
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shall commence upon July 1, 1999, or upon the commencement of payment of
subtenant rent to Developer from either Parcel 3 or Parcel 4, whichever occurs
first. In the event that subtenant rent is received from Parcel 3 and not
Parcel 4, the Ground Rent shall be reduced by 63.11 percent (63.11%). In the
event that subtenant rent is received from Parcel 4 and not Parcel 3, the Ground
Rent shall be reduced by 36.89 percent (36.89%)."
Section 4. Suspension of Ground Rent for Parcel 8. During such period of
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time that Parcel 8 shall be used for parking purposes, no Ground Rent shall be
due or paid for Parcel 8.
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Section 5. Use of Parcel 8. Section 8.7 of the Lease is hereby amended
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to read in its entirety as follows:
"8.7. Use of Parcel 8. Parcel 8 will be used only for aviation
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uses as described in Sections 8.2, 8.3, 8.5, Exhibits 'K' and 'L,' provided
that in the event approval from the Federal Aviation Administration is
obtained, Parcel 8 may be used for automobile parking."
Section 6. Amendment to Legal Description. The legal description
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attached as Exhibit "A" to this Third Amendment shall replace Exhibit "A" to the
Lease.
Section 7. Amendment to the Site Map. The Site Map attached as Exhibit
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"B" to this Third Amendment shall replace Exhibit "B" to the Lease.
Section 8. Except as stated in this Third Amendment, the Lease shall
remain in full force and effect.
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LANDLORD AND DEVELOPER have executed this Third Amendment as of the date
provided above.
CITY OF LONG BEACH, a
municipal corporation
October 10, 1994 By [signature]
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Assistant City Manager
EXECUTED PURSUANT
CITY TO SECTION 301 OF
THE CITY CHARTER.
XXXXXX LONG BEACH ASSOCIATES,
a California Limited
Partnership
September 26, 1994 By: XXXXXX INDUSTRIES, A
------------ California Corporation,
General Partner
By /s/ Xxxxxxxx X. XxXxxxxx
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Title XXXXXXXX X. XxXXXXXX
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EXECUTIVE VICE PRESIDENT
DEVELOPER AND SECRETARY
Approved as to form this 3rd day of October, 1994.
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XXXX X. XXXXXXX, City Attorney
By [signature]
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Principal Deputy
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CALIFORNIA ALL-PURPOSE ACKNOWLEDGMENT
State of California
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County of Los Angeles
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On 9/26/94 before me, Xxxxxxx X. Xxxxxx, Notary Public
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DATE NAME, TITLE OF OFFICER - E.G., "XXXX XXX, NOTARY PUBLIC"
personally appeared Xxxxxxxx X. XxXxxxxx
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NAME(S) OF SIGNER(S)
[X] personally known to me - OR - [_] proved to me on the basis of satisfactory
evidence to be the person(s) whose name(s)
is/are subscribed to the within instrument
and acknowledged to me that he/she/they
executed the same in his/her/their
authorized capacity(ies), and that by
his/her/their signature(s) on the
[SEAL APPEARS HERE] instrument the person(s), or the entity
upon behalf of which the person(s) acted,
executed the instrument.
WITNESS my hand and official seal.
/s/ Xxxxxxx X. Xxxxxx
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SIGNATURE OF NOTARY
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Though the data below is not required by law, it may prove valuable to persons
relying on the document and could prevent fraudulent reattachment of this form.
CAPACITY CLAIMED BY SIGNER DESCRIPTION OF ATTACHED DOCUMENT
[_] INDIVIDUAL
[_] CORPORATE OFFICER
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TITLE(S) TITLE OR TYPE OF DOCUMENT
[_] PARTNER(S) [_] LIMITED
[_] GENERAL
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NUMBER OF PAGES
[_] ATTORNEY-IN-FACT
[_] TRUSTEE(S)
[_] GUARDIAN/CONSERVATOR
[_] OTHER:
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DATE OF DOCUMENT
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SIGNER IS REPRESENTING: ----------------------------------
NAME OF PERSON(S) OR ENTITY(IES) SIGNER(S) OTHER THAN NAMED ABOVE
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LEGAL DESCRIPTION
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XXXXXX AIRPORT CENTER
LEASE PARCEL 4
Parcel 4 of Parcel Map No. 16960, in the City of Long Beach, County of Los
Angeles, State of California, as per map recorded in Book 208, Pages 92 to 100,
inclusive, of Parcel Maps, in the office of the County Recorder of said County.
Along with that portion of Parcel 8 of said Parcel Map No. 16960, lying
southeasterly of the following described line:
Beginning at the most northerly corner of said Parcel 4; thence along the
northeasterly prolongation of the most northwesterly line of said Parcel 4
North 44 degrees, 37 minutes, 27 seconds East 99.00 feet to a point in the
northeasterly line of said Parcel 8.
EXCEPT the northeasterly 11.00 feet of said Lot 8.
Containing 291,484 square feet or 6.69 acres.
LEGAL DESCRIPTION
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XXXXXX AIRPORT CENTER
LEASE PARCEL 8
That portion of Parcel 8 of Parcel Map No. 16960, in the City of Long Beach,
County of Los Angeles, State of California, as per map recorded in Book 208,
Pages 92 to 100, inclusive, of Parcel Maps, in the office of the County Recorder
of said County, lying northwesterly of the following described line:
Beginning at the most northerly corner of said Parcel 4; thence along the
northeasterly prolongation of the most northwesterly line of said Parcel 4
North 44 degrees, 37 minutes, 27 seconds East 99.00 feet to a point in the
northeasterly line of said Parcel 8.
Along with the northeasterly 62.00 feet of Parcel 3 of said
Parcel Map No. 16960.
EXCEPT the northeasterly 11.00 feet of said Lot 8.
Containing 163,979 square feet or 3.76 acres.
[SEAL APPEARS HERE]
EXHIBIT A PREPARED CHECKED LEASE XX. XXXXXXX XX.
X. XXXXX X. XXXXXX X-0000
[MAP OF XXXXXX AIRPORT CENTER
LEASE AT LONG BEACH AIRPORT]
[SEAL APPEARS HERE]
EXHIBIT B PREPARED CHECKED LEASE NO. DRAWING NO.
X. XXXXX X. XXXXXX A-1572
