EXHIBIT 10.3
NOTE: Information in this document marked with an "[*]" has been omitted and
filed separately with the Commission. Confidential treatment has been requested
with respect to the omitted portions.
AGREEMENT OF SUBLEASE
By and Between
CORNING PROPERTY MANAGEMENT CORPORATION
As Sublandlord
and
AVANEX CORPORATION
As Subtenant,
Dated: July 31, 2003
Premises:
0000 Xxxxx Xxxxx Xxxx
Painted Post,
Steuben County, New York
Tax Parcel No:
TABLE OF CONTENTS
PAGE
ARTICLE I. THE DEMISED PREMISES AND SUBTENANT'S PERMITTED USE.......................................... 1
Section 1.01 Demised Premises.......................................................................... 1
Section 1.02 Subtenant's Permitted Use................................................................. 1
ARTICLE II. CONDITION OF DEMISED PREMISES............................................................... 2
ARTICLE III. TERM........................................................................................ 2
ARTICLE IV. RENT AND SECURITY DEPOSIT................................................................... 2
Section 4.01 Base Rent................................................................................. 2
Section 4.02 Additional Rent/Payment of Operating Expenses............................................. 3
Section 4.03 Taxes..................................................................................... 3
Section 4.04 Sublandlord's Casualty Insurance.......................................................... 4
Section 4.05 Place of Payment.......................................................................... 4
Section 4.06 Late Fee.................................................................................. 4
Section 4.07 Security Deposit.......................................................................... 4
ARTICLE V. ALTERATIONS, SIGNS.......................................................................... 5
Section 5.01 Alterations to the Demised Premises....................................................... 5
Section 5.02 Mechanic's Liens.......................................................................... 5
Section 5.03 Signs..................................................................................... 6
Section 5.04 Insurance Covering Subtenant's Alterations................................................ 6
ARTICLE VI. REPAIRS, COMPLIANCE, SURRENDER.............................................................. 6
Section 6.01 Repairs and Maintenance................................................................... 6
Section 6.02 Compliance................................................................................ 6
Section 6.03 Sublandlord Repairs....................................................................... 7
Section 6.04 Surrender of Premises..................................................................... 7
Section 6.05 Subtenant Facility Contracts.............................................................. 8
Section 6.06 Sublandlord Service Contracts............................................................. 8
ARTICLE VII. SERVICEs.................................................................................. 8
Section 7.01 Utility Service........................................................................... 8
Section 7.02 Liability of Sublandlord with Respect to Utilities........................................ 8
Section 7.03 Culinary Service.......................................................................... 9
Section 7.04 Security Service.......................................................................... 9
ARTICLE VIII. ENVIRONMENTAL MATTERS..................................................................... 9
Section 8.01 Definitions............................................................................... 9
Section 8.02 Environmental Requirements/Hazardous Materials............................................ 10
Section 8.03 Indemnification by Sublandlord............................................................ 11
Section 8.04 Indemnification by Subtenant.............................................................. 12
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ARTICLE IX. TRANSFER OF INTEREST BY SUBTENANT........................................................... 12
Section 9.01 Assignment or Sublet...................................................................... 12
ARTICLE X. TRANSFER OF INTEREST OF SUBLANDLORD......................................................... 13
Section 10.01 Sale of Demised Premises.................................................................. 13
ARTICLE XI. DESTRUCTION AND INSURANCE................................................................... 13
Section 11.01 Rent Abatement; Sublease Termination...................................................... 13
Section 11.02 Waiver of Subrogation..................................................................... 14
Section 11.03 Casualty Insurance........................................................................ 14
Section 11.04 Liability Insurance....................................................................... 14
ARTICLE XII. CONDEMNATION.............................................................................. 15
ARTICLE XIII. INDEMNITY, LIABILITY AND INSURANCE........................................................ 15
Section 13.01 Subtenant's Indemnity..................................................................... 15
Section 13.02 Sublandlord's Indemnity................................................................... 16
Section 13.03 General Provisions with Respect to Insurance.............................................. 16
ARTICLE XIV. COVENANT OF QUIET ENJOYMENT............................................................... 17
ARTICLE XV. DEFAULTS & REMEDIES....................................................................... 17
Section 15.01 Defaults.................................................................................. 17
Section 15.02 Sublandlord Remedies...................................................................... 18
Section 15.03 Sublandlord Default....................................................................... 19
ARTICLE XVI. ESTOPPEL CERTIFICATE...................................................................... 20
ARTICLE XVII. RIGHT OF ACCESS........................................................................... 20
Section 17.01 Sublandlord's Rights...................................................................... 20
Section 17.02 Sublandlord's Covenants................................................................... 21
ARTICLE XVIII. PROVISIONS REGARDING MASTER LEASE......................................................... 21
Section 18.01 Subject to Master Lease................................................................... 21
Section 18.02 Conflict with Master Lease................................................................ 21
ARTICLE XIX. INTERPRETATION, NOTICE, MISCELLANEOUS..................................................... 21
Section 19.01 Interpretation............................................................................ 21
Section 19.02 Construing Various Words and Phrases...................................................... 22
Section 19.03 Entire Agreement.......................................................................... 22
Section 19.04 Communications............................................................................ 22
Section 19.05 Method of Payment......................................................................... 23
Section 19.06 Successors and Assigns.................................................................... 23
Section 19.07 Responsibility of Subtenant............................................................... 23
Section 19.08 Brokerage................................................................................. 24
Section 19.09 Applicable Law............................................................................ 24
Section 19.10 Consent to Assignment..................................................................... 24
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EXHIBITS
EXHIBIT A-1 - Legal Description
EXHIBIT A-2 - Demised Premises
EXHIBIT A-3 - Excluded Equipment (Assets Owned by Sublandlord, Used by
Subtenant)
EXHIBIT A-4 - IT Assets
EXHIBIT A-5 - Contracts Administered by Sublandlord, Costs Reimbursed by
Subtenant
EXHIBIT B - Option to Renew Sublease
EXHIBIT C - Culinary Services
EXHIBIT D - Security Services
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SUBLEASE
This SUBLEASE, dated July 31, 2003, is made by and between Corning
Property Management Corporation ("Sublandlord"), a Delaware corporation, and
Avanex Corporation ("Subtenant"), a Delaware corporation.
WHEREAS, the parties have entered into a Share Acquisition and Asset
Purchase Agreement dated May 12, 2003 (the "Purchase Agreement"), pursuant to
which Subtenant has agreed to purchase and Sublandlord shall has agreed to sell
Subtenant certain assets of Sublandlord's business located on the Demised
Premises (as defined below), as well as certain other assets; and
WHEREAS, The Steuben County Industrial Development Agency ("SCIDA") as
tenant entered into a Lease Agreement dated December 1, 2001, as amended from
time to time with Corning Incorporated (as property owner or "Parent") and
thereafter entered into a Leaseback Agreement, as amended from time to time with
Parent dated December 1, 2001 ("Master Lease"); and
WHEREAS, Parent assigned the Master Lease to Sublandlord by that
certain Assignment and Assumption Agreement between Parent and Sublandlord dated
as of December 1, 2001; and
WHEREAS, the Subtenant desires to continue to conduct the businesses
conducted at the Demised Premises prior to the effective date of the Purchase
Agreement and Sublandlord desires to sublease the Demised Premises to Subtenant
for such purpose, pursuant to the terms of this Sublease.
NOW, THEREFORE, the parties hereto, for themselves, their successors
and assigns, hereby covenant as follows:
ARTICLE I. THE DEMISED PREMISES AND SUBTENANT'S PERMITTED USE
Section 1.01 Demised Premises.
Sublandlord hereby subleases to Subtenant, and Subtenant hires from
Sublandlord, subject to the terms, conditions and provisions contained in this
Sublease, certain real property located at 9676 Xxxx Xxxxx Drive, Painted Post,
Steuben, County, New York, which real property is further described on EXHIBIT
A-1 attached hereto, together with all of Sublandlord's buildings (the
"Buildings") and improvements, located thereon, all as shown on EXHIBIT A-2
attached hereto (collectively, the "Demised Premises" or "Premises"). Equipment
identified on EXHIBIT A-3 shall be used by Subtenant during the Sublease Term
and shall remain the property of Sublandlord. Subtenant covenants that it shall
use such equipment for the purpose and manner it is intended, shall keep the
equipment in good condition and shall repair such equipment as necessary at its
own expense, costs related to reasonable wear and tear excluded. Information
Technology Assets that have been, or will be transferred to Subtenant, are
identified on EXHIBIT A-4.
Section 1.02 Subtenant's Permitted Use.
Subtenant may use and occupy the Demised Premises for the manufacturing
of electronic and/or optical products using processes comparable to the
manufacturing currently conducted on the Demised Premises and for associated
research and development, office, parking and other legal related uses and for
no other use whatsoever. Subtenant's use and occupancy of the Demised
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Premises shall in no way adversely affect the qualification of the Demised
Premises as a "project" as such quoted term is defined in Section 854 of Article
18-A of the General Municipal Law of The State of New York (the "Act").
ARTICLE II. CONDITION OF DEMISED PREMISES
Notwithstanding anything to the contrary in this Sublease, Sublandlord
warrants and represents that as of the Commencement Date (as defined in Article
III below), (i) the Demised Premises will be in good condition and repair and
the electrical, mechanical, HVAC, plumbing, elevator and other systems serving
the Demised Premises will be in good condition and repair; and (ii) the Demised
Premises shall conform to all requirements of covenants, conditions,
restrictions and encumbrances ("CC&R's"), all underwriter's requirements, and
all rules, regulations, statutes, ordinances, laws and building codes,
(collectively, "Laws") applicable thereto. Subtenant shall not be required to
construct or pay the cost of complying with any CC&R's, underwriter's
requirements or Laws requiring construction of improvements in the Premises
which are properly capitalized under general accounting principles, unless such
compliance is necessitated solely because of Subtenant's particular use of the
Demised Premises. Subtenant's acceptance of the Demised Premises shall not be
deemed a waiver of Subtenant's right to have defects in the Demised Premises
repaired at Sublandlord's sole expense. Subtenant shall give notice to
Sublandlord whenever any such defect becomes reasonably apparent, and
Sublandlord shall repair such defect as soon as practicable. Sublandlord also
hereby assigns to Subtenant all warranties with respect to the Premises, which
would reduce Subtenant's maintenance obligations hereunder and shall cooperate
with Subtenant to enforce all such warranties. Except as otherwise expressly
provided in this Sublease, Subtenant accepts possession of the Demised Premises
in its "as is" condition as of the date of this Sublease. SCIDA makes no
representations or warranties to the condition of or title to the Demised
Premises.
ARTICLE III. TERM
The initial term of this Sublease ("Initial Term") shall commence as of
the date of this Sublease (the "Commencement Date") and shall continue until
July 31, 2005 at 11:59 p.m. So long as Subtenant is not then in Default as
defined in Section 15.01 hereof, Subtenant shall have two (2) two (2) year
options to renew this Sublease on the terms and conditions of EXHIBIT B attached
hereto. (Each such additional two-year period hereinafter referred to as a
"Renewal Term"). The Initial Term and all renewals thereof shall together be
referred to as the "Term". Subtenant hereby agrees that if it fails to surrender
the Premises at the end of the Term, or any renewal thereof, (i) all of the
terms of this Sublease shall continue on a month-to-month basis until terminated
by either party by not less than thirty (30) days prior written notice to the
other; (ii) Subtenant will be liable to Sublandlord for any and all damages
which Sublandlord shall suffer by reason thereof; and (iii) Subtenant will
indemnify Sublandlord against all claims and demands made by any succeeding
subtenants against Sublandlord, founded upon delay by Sublandlord in delivering
possession of the Premises to such succeeding subtenant.
ARTICLE IV. RENT AND SECURITY DEPOSIT
Section 4.01 Base Rent.
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During the Initial Term, Subtenant shall pay base rent (the "Base Rent") to
Sublandlord at the annual rate of $[*], which Base Rent shall be paid annually
on the Commencement Date and each anniversary thereof.
Section 4.02 Additional Rent/Payment of Operating Expenses.
Wherever it is provided in this Sublease that Subtenant is required to
make any payment other than Base Rent to Sublandlord, the payment shall be
deemed to be "Additional Rent" and all remedies applicable to the non-payment of
Base Rent shall also be applicable to the nonpayment of Additional Rent. As used
herein the word "Rent" shall mean, collectively, Base Rent and Additional Rent.
Subtenant agrees to pay, as Additional Rent, the following: (i) Subtenant's
portion of Major Capital Repairs as provided in Section 6.01 below, and (ii)
Sublandlord's out-of-pocket costs for third party contracts maintained by
Sublandlord (including, without limitation, those contained on EXHIBIT A-5
attached hereto) with respect to Sublandlord's repair and maintenance
obligations set forth in Section 6.03 hereof, (iii) Sublandlord's charges for
the Culinary Services pursuant to Section 7.03 hereof, and (iv) Sublandlord's
charges for the Security Services pursuant to Section 7.04 hereof (collectively,
the "Sublandlord Operating Expense Charges"). Sublandlord shall provide an
invoice to Subtenant for Sublandlord Operating Expense Charges no more
frequently than once per calendar month. Subtenant shall reimburse Sublandlord
for the invoiced amount of Sublandlord's Operating Expense Charge no later than
thirty (30) days following Subtenant's receipt thereof. Upon request,
Sublandlord shall promptly provide Subtenant with back-up information regarding
the Sublandlord Operating Expense Charges. The parties shall cooperate in good
faith to resolve any disputes regarding invoiced amounts.
Section 4.03 Taxes.
A. As used in this Sublease, the term "Real Property Taxes" shall
mean all taxes, assessments, water, sewer, or other rents and charges, excises,
levies, fees (including, without limitation, licenses, permits, inspections,
authorizations and similar fees), and all other governmental charges, whether
general or special, ordinary or extraordinary, foreseen or unforeseen, which are
imposed against all or any portion of the Demised Premises during the Term. If,
at any time during the Term, the methods of taxation prevailing on the
Commencement Date shall be altered, modified, or changed, in whole or in part,
so that in lieu of, or as an addition to, or as a substitute for the whole or
any part of the Real Property Taxes, there shall be levied, assessed or imposed
on the Demised Premises any new taxes, assessments, levies, impositions, charges
or special assessments, then all such taxes, assessments, levies, impositions,
charges or special assessments shall be deemed to be included within the term
Real Property Taxes.
B. Subtenant shall pay, on the first day of each month 1/12th of
the annual Real Property Taxes paid by Sublandlord for the fiscal tax year the
applicable month occurs.
C. If, at any time during the Term, a tax on Rent or other tax,
however described, is assessed, levied or imposed upon the Demised Premises or
against Sublandlord under the laws of the State of New York or any political
subdivision thereof, in lieu of, or as a substitute in whole or in part for, the
Real Property Taxes referred to in Section 4.03.A, then the same shall be deemed
included in the term "Real Property Taxes.
[*] Certain information on this page has been omitted and filed separately with
the Commission. Confidential treatment has been requested with respect to the
omitted portions.
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D. Real Property Taxes which accrue partially prior to the
Commencement Date and subsequent to the expiration or termination of this
Sublease shall be equitably apportioned so that Subtenant shall pay only such
portion of such Real Property Taxes as shall be attributable to the portion of
any such fiscal tax year occurring during the Term.
E. Notwithstanding anything to the contrary in this Sublease, the
definition of "Real Property Taxes" shall not include taxes, assessments, or
governmental levies on Sublandlord's income, or with respect to any inheritance
or estate planning or with respect to any improvements or services not made
available for Subtenant's use or that do not otherwise benefit Subtenant. In no
event shall Subtenant be responsible or liable in any manner for any payment,
clawback, charge, expense, reimbursement or liability associated with any tax
abatements or tax benefits granted to Sublandlord or any Affiliate of
Sublandlord (as defined in the Purchase Agreement).
F. Not withstanding anything to the contrary in the Sublease or
any other document, Subtenant's agreement to pay Real Property Taxes shall in no
way relieve, discharge or reduce Sublandlord's obligation to make payments under
that Certain Payment-in-Lieu-of-Tax-Agreement, dated as of December 1, 2001, by
and between Sublandlord (as assignee of Parent) and SCIDA, as amended from time
to time (the "PILOT Agreement").
Section 4.04 Sublandlord's Casualty Insurance.
Subtenant shall pay, on a monthly basis at the same time as
monthly payments of Base Rent are due, 1/12th of the annual insurance premium
paid by Sublandlord for the casualty insurance policy referenced in Section
11.03(a).
Section 4.05 Place of Payment.
Rent shall be payable by Subtenant to Sublandlord to the
attention of President, Corning Property Management Corporation, at the address
set forth in Section 19.04(C) hereof or at any other place designated by notice
given by Sublandlord to Subtenant pursuant to Section 19.04.
Section 4.06 Late Fee.
Any Rent payment that is not made when due shall be subject to
a late fee equal to five percent (5%) of the amount not paid when due for each
month or portion thereof from the due date to the date of payment.
Section 4.07 Security Deposit.
No later than five (5) business days after execution of the
Lease, Subtenant will provide a security deposit in the amount of $[*] in
readily available funds payable to Sublandlord (the "Deposit"). The Deposit
provided herein shall be considered as security for the payment and performance
by Subtenant of all Subtenant's obligations covenants, conditions and agreements
under this Lease. In the event of any default by Subtenant hereunder,
Sublandlord shall have the right, but shall not be obligated, to apply all or
any portion of the Deposit to cure such default, in which event Subtenant shall
be obligated to promptly Deposit with Sublandlord that portion of the Deposit
used to cure the default. In the event Subtenant fails to perform its
obligations, said Deposit shall not be
[*] Certain information on this page has been omitted and filed separately with
the Commission. Confidential treatment has been requested with respect to the
omitted portions.
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deemed liquidated damages, and application of the Deposit to reduce Subtenant's
damages shall not preclude Sublandlord from recovering additional damages
incurred by Sublandlord. The Deposit (or any remaining portion after proceeds
have been applied by Sublandlord to a default of Subtenant hereunder as
permitted herein) shall be returned by Sublandlord to Subtenant within thirty
(30) days of the Lease termination. If Sublandlord assigns or transfers its
interest in the Premises, Sublandlord shall deliver or credit the Security
Deposit to Sublandlord's successor in interest in the Premises and thereupon be
relieved of further responsibility with respect to the Security Deposit so long
as such assignee or transferee expressly agrees in writing to return such
Security Deposit to Subtenant in accordance with this Section 4.07.
ARTICLE V. ALTERATIONS, SIGNS
Section 5.01 Alterations to the Demised Premises.
Upon prior notice to Sublandlord, Subtenant shall have the right to
perform any nonstructural alterations, installations, additions, improvements or
capital replacements to the Demised Premises (collectively "Alterations")
costing less than $[*] per project. Subtenant shall not perform any structural
Alterations or any Alterations costing more than $[*] per project without
obtaining the prior written consent of Sublandlord, which consent shall not be
unreasonably withheld, conditioned or delayed. Any Alterations shall be
performed at Subtenant's sole expense, in a good and workmanlike manner and in
compliance with all laws applicable to the Demised Premises. Upon substantial
completion of any Alterations, Subtenant shall provide Sublandlord with a copy
of any as-built plans of the Alterations that it has obtained at Subtenant's
sole costs and expense. Any approval of Sublandlord shall not be construed as an
opinion as to whether the Alterations will comply with applicable laws or be
sufficient for Subtenant's purposes and Sublandlord shall have no liability
therefore. Notwithstanding anything to the contrary contained in this Section
5.01, Sublandlord acknowledges that Subtenant shall not be required to provide
Sublandlord notice or obtain Sublandlord's consent in the event Subtenant is
relocating its personal property, including its equipment or machinery
("Subtenant's Equipment Relocation") notwithstanding the amount of the cost of
Subtenant's Equipment Relocation. Any such alterations or Subtenant's Equipment
Relocation shall not result in the use and operation of the Demised Premises to
fail to qualify as a "project" under the Act.
Section 5.02 Mechanic's Liens.
No alteration performed by Subtenant pursuant to this Sublease, shall
be deemed to be for the immediate use and benefit of the Sublandlord. If any
mechanic's or materialman's lien is filed against the Demised Premises as a
result of any Alterations made by Subtenant, or any other work or act of
Subtenant, Subtenant shall discharge same, by payment or bonding, within thirty
(30) days from receiving notice of the filing of the lien. If Subtenant shall
fail to discharge the lien within such thirty (30) day period, Sublandlord may,
in its sole discretion, in addition to any other legal or equitable remedies
available to Sublandlord, bond or pay the lien or claim for the account of
Subtenant and Subtenant shall be obligated to reimburse Sublandlord for all
reasonable costs and expenses incurred by Sublandlord in doing so, including
reasonable attorney's fees, bond premiums and any reasonable expenses incident
to litigation with respect to any bond and any action brought to
[*] Certain information on this page has been omitted and filed separately with
the Commission. Confidential treatment has been requested with respect to the
omitted portions.
5
either foreclose or enforce the lien, within ten (10) days after Subtenant's
receipt of a detailed invoice therefore.
Section 5.03 Signs.
A. Subtenant may erect signs on the Demised Premises in a manner
and location as reasonably determined by Subtenant to be necessary, provided
that Subtenant obtains any necessary permits and licenses prior to installing
such signs. Subtenant shall install its signs at its own expense and shall
remove them at the termination of this Sublease. Any damage to improvements
located on the Demised Premises as a result of the installation or removal of
Subtenant's signs shall be promptly repaired at the expense of Subtenant.
B. Subtenant shall obtain and pay for all permits and licenses
relating to signs permitted, by this Section 5.03. Copies of all such permits
and licenses shall be delivered to Sublandlord promptly upon receipt by
Subtenant.
Section 5.04 Insurance Covering Subtenant's Alterations.
Subtenant shall not commence performing any Alterations unless prior
thereto Subtenant shall obtain, or cause its contractor(s) to obtain, (and
during the performance of such work keep in force) commercial general liability
insurance and worker's compensation insurance to cover every contractor to be
employed and builder's risk insurance. The policies shall be in amounts approved
by Sublandlord, in Sublandlord's reasonable discretion, shall be non-cancelable
without thirty (30) days' notice to Sublandlord and the commercial general
liability insurance policy shall name Sublandlord as an additional insured.
ARTICLE VI. REPAIRS, COMPLIANCE, SURRENDER
Section 6.01 Repairs and Maintenance. [*]
Section 6.02 Compliance.
Subtenant shall, at its sole expense, with respect to its particular
use of the Demised Premises, observe and comply promptly with all present and
future legal requirements relating to the Demised Premises, including without
limitation, (i) all Laws, including but not limited to State of New York
building codes and environmental laws and Steuben County Health Department rules
and regulations; (ii) securing and complying with all permits, licenses, or
other required authorizations. Subtenant shall not be required to pay for or
perform any improvements or incur any capitals expenditures to comply with any
Laws hereunder except to the extent such legal requirements are caused by
Subtenant's particular use of the Demised Premises or as a result of Subtenant's
installation of improvements therein. If Subtenant fails to comply with its
obligations under Section 6.01 above or this Section 6.02, then after ten (10)
business days notice and opportunity to cure, and provided that Subtenant has
not commenced a cure and is not diligently prosecuting such cure, Sublandlord
may, but shall have no obligation to, proceed to have such work performed as
Sublandlord shall determine, in its sole discretion, is necessary to comply with
the requirements of
[*] Certain information on this page has been omitted and filed separately with
the Commission. Confidential treatment has been requested with respect to the
omitted portions.
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Section 6.01, above or this Section 6.02. Within ten (10) days after Sublandlord
renders a xxxx for such repairs, Subtenant shall reimburse Sublandlord for the
cost of making such repairs or costs associated with compliance.
Section 6.03 Sublandlord Repairs.
Sublandlord shall make, at its sole cost and expense, all repairs to
the building structure, including the roof structure, roof, load bearing walls
and foundation, and underground utility conduits as well as all Major Capital
Repairs (whether required as a result of a change in Laws that is not a
Subtenant obligation hereunder or otherwise) and the Excluded Equipment
identified on EXHIBIT A-3 subject to Subtenant's obligation to reimburse
Sublandlord for a portion of Major Capital Repairs as provided in Subsection
6.01 above. In addition, Sublandlord shall be responsible for all repairs,
maintenance and replacement to the generators at the Premises, the fire
suppression sprinkler system, air compressors, central vacuum system, HVAC
systems and controls, Premises lighting controls, kitchen equipment installed in
the cafeteria, cooling towers and boilers, water softening systems, docks and
levelers, electrical systems to the local point of distribution (such as a xxxx
bar or breaker panel), grease traps, sewer systems, fire and security systems
and controls, and pest control. Sublandlord shall provide to Subtenant
reasonable prior notice and shall use reasonable efforts to access the Premises
and implement the repairs without material disruption of Subtenant's use
hereunder. No notice is required should Sublandlord desire to make repairs under
emergency circumstances.
Section 6.04 Surrender of Premises.
Upon the expiration or other termination of this Sublease, Subtenant
shall quit and surrender the Demised Premises broom clean, and in the same
condition the Demised Premises were in at the Commencement Date, except for
normal wear and tear, casualty and condemnation and Hazardous Substances for
which Subtenant is not liable under the terms of this Sublease. Any and all
Alterations shall be the property of the Sublandlord, except that (i) Subtenant
shall be entitled to remove any of its trade fixtures, equipment and personal
property, provided that Subtenant repairs any damage to the Demised Premises
caused by such removal and (ii) Subtenant shall be required to remove any
Alterations which Sublandlord expressly requires Subtenant to remove as a
condition of Sublandlord approving any such Alterations.
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Section 6.05 Subtenant Facility Contracts.
It is the intent that the service contracts listed on EXHIBIT A-6
attached hereto be assigned to Subtenant as of the Commencement Date or that
Subtenant shall enter into its own contracts with the applicable vendor
("Subtenant Service Contracts"). Whether or not such assignment is completed by
the Commencement Date, Subtenant agrees that it as of the Commencement Date,
Subtenant shall be solely responsible, financially and otherwise, for the
Subtenant Service Contracts, provided that in no event shall Subtenant be liable
in any respect for any obligations under the Subtenant Service Contracts to the
extent applicable to events, activities or circumstances arising prior to the
Commencement Date. Payment terms shall be negotiated between Subtenant and each
vendor identified on EXHIBIT A-6. Nothing contained in this Section 6.05 shall
require Subtenant to keep any or all of the Subtenant Service Contracts in
effect during the Term or to maintain a contract with any particular vendor. All
such decisions in this regard shall be at the sole discretion of Subtenant.
Section 6.06 Sublandlord Service Contracts.
EXHIBIT A-5 identifies the repair and maintenance service contracts
that are currently administered by Sublandlord with respect to certain of the
Sublandlord repair and maintenance responsibilities, including but not limited
to those identified on Section 6.03 hereof ("Sublandlord Service Contracts").
Sublandlord shall have the right to charge Subtenant the out-of-pocket costs of
the Sublandlord Service Contracts pursuant to Section 4.02 hereof. Sublandlord
shall have the right to change vendors or re-negotiate the Sublandlord Service
Contracts, provided, however, that if the change of any vendor or contract
results in a material increase in the cost of the service covered by such
contract, Sublandlord shall consult with Subtenant with respect to such
contract, and Subtenant shall have the right, on thirty (30) days advance
written notice to Sublandlord, to assume in writing the repair and maintenance
responsibilities relating to such contract under Section 6.01, and upon such
assumption, Sublandlord shall no longer have the corresponding responsibility
under Section 6.03 and shall not charge Subtenant for such contract under
Section 4.02 hereof.
ARTICLE VII. SERVICES
Section 7.01 Utility Service.
Subtenant shall pay for all utility service charges applicable to the
Demised Premises during the Term, including any and all electric, gas, water,
pure water, sewer and telephone charges, and trash removal.
Section 7.02 Liability of Sublandlord with Respect to Utilities.
Sublandlord shall not be liable for any interruption or failure in the
supply of utility services to the Demised Premises, unless such interruption or
failure is caused by the negligent affirmative acts of Sublandlord. In the event
of any interruption or failure of any utility services to the Demised Premises
caused by circumstances beyond the control of Subtenant that continues for a
period of sixty (60) days or more and is not caused by damage or casualty to the
Premises (which time period shall not commence until Subtenant has provided
written notice to Landlord of such interruption or failure), Subtenant shall
have the right to terminate this Sublease by providing notice to Sublandlord no
later than ten (10) days following expiration of such thirty (30) day period.
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Section 7.03 Culinary Service.
Attached as EXHIBIT C is a description of the culinary services that
Subtenant has asked Sublandlord to provide and which Sublandlord is willing to
provide (the "Culinary Services") to enable food and beverages to be purchased
by Subtenant employees employed at and visitors to the Premises. Subtenant has
agreed to pay to Sublandlord on a monthly basis, an amount reasonably allocated
to Subtenant to subsidize Sublandlord's projected costs associated with managing
the provision of these services as noted in EXHIBIT C. (The subsidy may be
adjusted annually.) Sublandlord will provide the Culinary Services to Subtenant
for the Term of this Lease Agreement, provided, however, either party may
terminate the delivery or receipt of Culinary Services by providing at least
ninety (90) days advance written notice, provided, however, that Sublandlord
shall not have the right to terminate this service during the initial two (2)
year term if it is still maintaining such cafeteria services for its own
benefit.
Section 7.04 Security Service.
Attached as EXHIBIT D is a description of the security services that
Subtenant has asked Sublandlord to provide and which Sublandlord is willing to
provide (the "Security Services"). Subtenant has agreed to pay to Sublandlord on
monthly basis, an amount to subsidize Sublandlord's projected costs associated
with providing the Security Services as noted in EXHIBIT D. (The subsidy may be
adjusted annually to reflect cost increases to Sublandlord in the provision of
such services.) Costs for any additional services or any upgrade or modification
to the Security Services shall be provided at a reasonable cost that is agreed
upon by the Parties. Sublandlord will provide the Security Services to Subtenant
for the Term of this Lease Agreement, provided, however, Subtenant may terminate
the delivery or receipt of Security Services by providing at least one hundred
(180) days advance written notice.
ARTICLE VIII. ENVIRONMENTAL MATTERS
Section 8.01 Definitions
The terms set forth below shall have the following meanings:
"Environment" means all air, surface water, groundwater, surface and
subsurface soil, fish, wildlife, biota, flora, wetlands and all other natural
resources.
"Environmental Claims" mean any and all actions, suits, orders, claims,
liens, notices, investigations, proceedings or complaints, whether any of the
foregoing are administrative, judicial or otherwise, related to any
Environmental Law that have been brought, issued, asserted or alleged by: i) a
federal, state or local agency or body or a citizen or citizen group for
compliance, injunctive relief, damages (including but not limited to natural
resource damages), penalties, removal, response, remedial or other action
pursuant to an Environmental Law related to the presence of a Hazardous
Substance, contamination, pollution or a condition at, in, under, on or about
the Demised Premises or related to waste or material sent for treatment,
storage, recycling or disposal from the Demised Premises; and/or ii) a third
party seeking damages and/or injunctive relief related to actual or alleged
personal injury, medical monitoring, wrongful death, and/or property damage
resulting from construction, operation or maintenance of one or more of the
Assets and/or the Release or threatened Release of a Hazardous Substance, or
contamination, pollution or a condition, at, in, under, on or about the Demised
Premises or for a violation of an Environmental Law.
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"Environmental Laws" means all current and future federal, state and
local laws, statutes, ordinances, codes, permits, licenses, orders, approvals,
rules, regulations and common law relating to the protection of the Environment
and/or governing the use, handling, generation, treatment, recycling, storage,
manufacture, transportation or disposal of Hazardous Substances, including
without limitation, as amended: the Comprehensive Environmental Response,
Compensation and Liability Act, 42 U.S.C. Sections 9601 et seq.; the Resource
Conservation and Recovery Act, 42 U.S.C. Sections 6901 et seq.; the Federal
Water Pollution Control Act, 33 U.S.C. Sections 1251 et seq.; the Toxic
Substances Control Act, 15 U.S.C. Sections 2601 et seq.; the Emergency Planning
and Community Right-To-Know Act, 42 U.S.C. Sections 11001 et seq.; all
comparable State and local laws, statutes, codes and ordinances; and all rules
and regulations promulgated under any of the foregoing.
"Hazardous Substances" means, without regard to amount or
concentration, petroleum, petroleum distillates, petroleum products, mineral
oil, natural gas, radioactive materials and substances, asbestos,
polychlorinated biphenyls ("PCBs"), radon and any materials or substances which
are regulated under or defined as, or otherwise included in the definition of,
"hazardous substances", "hazardous materials", "solid wastes", "waste water",
"hazardous wastes", "toxic substances", "toxic pollutants", "regulated
materials", "pollutants" or "contaminants" in any applicable Environmental Law,
and constituents and degradation products of any of the foregoing.
"Release" means any spilling, leaking, pumping, pouring, emitting,
emptying, discharging, injecting, escaping, migrating, leaching, dumping or
disposing of a Hazardous Substance into the environment, including without
limitation, the abandonment, discarding, burying or disposal of barrels,
containers and other receptacles containing any Hazardous Substances.
Section 8.02 Environmental Requirements/Hazardous Materials
A. Subtenant's use and occupancy of the Demised Premises shall at
all times be in strict compliance with all federal, state and local laws, rules,
regulations, orders, guidelines, ordinances and standards, as they may now or
hereafter exist, relating in any way to the protection of human health, safety,
the environment and natural resources.
B. If Subtenant becomes aware of a Release (as defined under
Environmental Laws), threat of a Release or the presence of any Hazardous
Substance (as defined under Environmental Laws) causing contamination of the
Demised Premises or surrounding areas or adjacent properties or otherwise posing
an imminent risk to human health and safety, Subtenant shall immediately notify
Sublandlord in writing thereof. Subtenant shall take all necessary steps to
ensure that any future activities by Subtenant do not exacerbate the Release,
threat of a Release or the presence of Hazardous Substance. Subtenant shall
remedy and mitigate all threats to public health or the environment relating to
such presence or Release, or threat thereof to the extent such Release, threat
of Release or presence of Hazardous Substances is caused by Subtenant or its
Affiliates, agents, employees, contractors, representatives, sublessees or
invitees (collectively, "Subtenant Parties"). If Subtenant shall fail to take
the measures described above, or shall fail to comply with the requirements of
any Environmental Laws, Sublandlord may give such notice and/or cause such work
to be performed at the Demised Premises or surrounding areas, and/or take any
and all other actions as Sublandlord shall deem necessary to restore the Demised
Premises or surrounding areas to the condition in which they existed as of the
date of this Sublease, provided that Sublandlord gives Subtenant ten (10) days
advance written notice of Sublandlord's intent to take such actions (except in
cases of emergency where no such notice shall be required) and Subtenant has not
commenced
10
such actions and is not diligently prosecuting such actions to completion. Such
actions by Sublandlord shall not affect Subtenant's obligation under this
Sublease.
C. Subtenant shall not allow the Demised Premises to be used for
the storing or handling of explosive, radioactive, dangerous, or offensive
materials, or any Hazardous Substance during the term hereof except such
materials as used or produced by Subtenant in the ordinary course of its
business and which are utilized, stored and handled in accordance with
applicable state and federal law. The Subtenant shall, in conducting any
activity or business on the Demised Premises, comply with all Environmental
Laws. The Subtenant shall, if requested by Sublandlord, notify Sublandlord in
writing, no more often than once every calendar year during the Term, that it
has complied with all Environmental Laws.
D. Subtenant shall assume full control over the resolution of any
claim, litigation, expense, fine or loss attributable to its breach of this
paragraph (the "Environmental Matter") with the full cooperation of the
Sublandlord. Subtenant shall diligently proceed with the resolution of such
Environmental Matter in good faith.
E. Subtenant shall be responsible for all costs incurred in
complying with Environmental Laws applicable to its use and operations on the
Demised Premises and any remedial costs arising from or relating to its breach
of the obligations contained in this Section 8.
F. The indemnities and obligations of Sublandlord and Subtenant
contained in this Article VIII shall survive the expiration or earlier
termination of the Sublease.
Section 8.03 Indemnification by Sublandlord.
A. Upon and after the Commencement Date, Sublandlord shall, and
hereby does agree, at its sole cost and expense, to defend, indemnify, protect
and save harmless Subtenant, its directors, officers, employees, successors and
assigns (collectively "Subtenant's Group") from and against any and all damages,
losses, liabilities, obligations, penalties, claims, litigation, demands,
defenses, judgments, suits, actions, proceedings, costs, disbursements and/or
expenses (including without limitation, reasonable attorneys', expert witness
and consultant fees and disbursements, whether incurred as the result of a third
party claim or a claim to enforce this Agreement) (collectively "Loss and
Expense") which may be imposed upon, incurred by or asserted or awarded against
any member or all of Subtenant's Group resulting from or arising out of any of
the following:
1. Sublandlord's noncompliance with, or violation of,
any Environmental Law or this Article 8 with regard to the Demised Premises.
2. Sublandlord's continued investigation, monitoring
and/or remediation of a Hazardous Substance, contamination, pollution or other
environmental condition existing at the Demised Premises prior to or as of the
Commencement Date.
3. Any Environmental Claim under Environmental Laws
currently in effect or which come into effect after the Commencement Date,
related to the presence of a Hazardous Substance, Release, contamination,
pollution or other environmental condition existing at the Demised Premises
prior to or as of the Commencement Date or wastes or materials sent from the
Demised Premises prior to or as of the Commencement Date, even if such
Environmental Claim is not asserted until after the Commencement Date.
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4. Any Release of a Hazardous Substance at, in, on,
under or about the Demised Premises prior to or as of the Commencement Date,
even if such Release is not discovered until after the Commencement Date,
including the extent to which such Release continues on and after the
Commencement Date, and any Hazardous Substances which migrate through the soils
or groundwater of the Demised Premises at any time during the Term, except to
the extent the existence of such Hazardous Substances is caused by any Subtenant
Parties.
Section 8.04 Indemnification by Subtenant
A. Upon and after the Commencement Date, Subtenant shall, and
hereby does agree, at its sole cost and expense, to defend, indemnify, protect
and save harmless Sublandlord, its directors, officers, employees, successors
and assigns (collectively "Sublandlord's Group") forever (except as otherwise
provided below) from and against any and all Loss and Expense which may be
imposed upon, incurred by or asserted or awarded against any member or all of
Sublandlord's Group resulting from or arising out of any of the following(to the
extent not a liability of Sublandlord under Section 8.02 hereof or under the
Purchase Agreement):
1. Subtenant's noncompliance with, or violation of, any
Environmental Law or this Article 8, with regard to its use of the Demised
Premises.
2. Any Environmental Claim under Environmental Laws
currently in effect or which come into effect after the Commencement Date,
related to the presence of a Hazardous Substance, contamination, pollution or
other condition which is (i) created or which wholly arises at the Demised
Premises during the Term or wastes or materials sent from the Demised Premises
during the Term and (ii) caused by the actions of, or failure to act by, the
Subtenant.
3. Any Release of a Hazardous Substance at, in, on,
under or about the Demised Premises which Release (i) occurs during the Term and
(ii) is caused by the actions of, or failure to act by, the Subtenant, but
excluding any Releases of a Hazardous Substance which occurred prior to or as of
the Commencement Date.
4. Any affirmative action by Subtenant which increases,
enhances or exacerbates a prior or existing Release about which Subtenant had
prior knowledge, to the extent of such enhancement or exacerbation.
ARTICLE IX. TRANSFER OF INTEREST BY SUBTENANT
Section 9.01 Assignment or Sublet
A. Subtenant shall not, without obtaining Sublandlord's and
SCIDA's prior written consent, which consent shall not be unreasonably withheld
or delayed, and if not granted or denied within twenty (20) days, shall be
deemed granted: (i) assign, delegate, sublet, convey, mortgage, pledge, encumber
or otherwise transfer (voluntarily or involuntarily) Subtenant's interest in
this Sublease or the Demised Premises or any part thereof; (ii) allow any
transfer of or any lien upon Subtenant's interest in this Sublease or the
Demised Premises or any part thereof; or (iii) permit the use or occupancy of
the Demised Premises or any part thereof by any person or entity other than
Subtenant.
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B. If, without the consent of Sublandlord and SCIDA, this
Sublease is assigned or delegated, or the Demised Premises or any part thereof
is sublet or occupied by anyone other than Subtenant, Sublandlord may elect to
treat such assignment, sublet, occupation or change of control as void under the
terms of this Sublease and treat Subtenant as in material breach of this
Sublease.
C. Subtenant shall defend, indemnify and hold harmless
Sublandlord against any and all Loss and Expense arising from any claims by a
proposed or putative assignee or sub-subtenant or by any broker or other person
claiming commission or similar compensation in connection with a proposed or
putative assignment or sublease.
ARTICLE X. TRANSFER OF INTEREST OF SUBLANDLORD
Section 10.01 Sale of Demised Premises
In the event of a sale or conveyance by Sublandlord of its interest in
the Demised Premises, the same shall operate to release Sublandlord from any
future liability upon any of the covenants or conditions herein contained in
favor of Subtenant and, in such event, Subtenant agrees to look solely to the
successor in interest of Sublandlord in and to this Sublease for the performance
of the covenants and conditions herein contained in favor of Subtenant.
ARTICLE XI. DESTRUCTION AND INSURANCE
Section 11.01 Rent Abatement; Sublease Termination.
A. If the Demised Premises and/or access thereto shall be
partially or totally damaged or destroyed by fire or any other insured casualty
(a "Casualty"), Sublandlord may, but shall not be obligated to, subject to
Subtenant's rights under Paragraph (c) hereof, promptly repair the damage and
restore and rebuild the Demised Premises and/or access thereto as nearly as may
be reasonably practical to its condition and character immediately prior to such
damage or destruction, with reasonable diligence after Sublandlord receives
notice of the Casualty.
B. If the Demised Premises and/or access thereto shall be
partially or totally damaged or destroyed by a Casualty, the Rent shall be
abated to the extent that the Demised Premises or Equipment shall have been
rendered unusable by Subtenant for its purposes from the date of such damage
until the Demised Premises shall be substantially repaired, restored or rebuilt.
Should Subtenant reoccupy a portion of the Demised Premises for the conduct of
its business during the period that the repair, restoration or rebuilding is in
progress and prior to the date that the same are made completely tenantable, all
Rent allocable to such portion (including, without limitation, all Additional
Rent) shall be payable by Subtenant from the date of such occupancy to the date
the Demised Premises are made tenantable.
C. In the case of a Casualty, either party may, at its option,
terminate this Sublease and the term and estate hereby granted, by giving a
written termination notice to the other party within sixty (60) days after
notifying party has actual knowledge of the Casualty; provided, however, that
Subtenant shall have up to one hundred twenty (120) days after the termination
notice is given within which to fully vacate the Demised Premises.
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D. The provisions of this Section 11.01 shall be considered an
express agreement governing any case of damage or destruction of the Demised
Premises by a Casualty.
Section 11.02 Waiver of Subrogation.
A. Notwithstanding anything to the contrary contained herein,
Sublandlord and Subtenant each hereby releases the other, its officers,
directors, employees and agents, from liability or responsibility (to the other
or anyone claiming through or under them by way of subrogation or otherwise) for
any loss or damage to property which is required to be covered by the insurance
policies referenced in Section 11.03, even if such fire or other casualty shall
have been caused by the fault or negligence of the other party, or anyone for
whom such party may be responsible. However, this release shall apply only to
loss or damage actually recovered from the insurance company (or which would
have been recoverable had the required policy been maintained), plus any
deductible amounts under such policies.
B. Sublandlord and Subtenant each agree that any fire and
extended coverage insurance policies carried by each of them respectively and
covering the Demised Premises or their contents will include a clause or
endorsement as set forth in Subsection 11.02.A above.
Section 11.03 Casualty Insurance.
A. Sublandlord shall, at all times during the Term, maintain in
effect a policy or policies of all risk insurance covering the Buildings in an
amount equal to one hundred percent (100%) of the full replacement cost thereof,
subject to reimbursement of the premiums for such insurance by Tenant pursuant
to Section 4.04 hereof. Subtenant shall comply with any reasonable
recommendations made by Sublandlord's insurance carrier.
B. Subtenant shall, at all times during the Term and at its sole
expense, maintain all risk insurance covering Subtenant's personal property,
including inventory, in an amount equal to one hundred percent (100%) of the
full replacement cost thereof.
Section 11.04 Liability Insurance.
Subtenant shall, at all times during the Term and at its sole expense,
maintain a Commercial General Liability Insurance Policy on an occurrence basis
with a minimum limit of liability in the amount of $[*]. Subtenant will name
Sublandlord as an additional insured on Subtenant's Commercial General Liability
Insurance Policy and Subtenant's Commercial General Liability Insurance Policy
will be a primary policy and not contributing with, or in excess of, any
coverage that Sublandlord may carry.
[*] Certain information on this page has been omitted and filed separately with
the Commission. Confidential treatment has been requested with respect to the
omitted portions.
14
ARTICLE XII. CONDEMNATION
A. If all the Demised Premises are taken by eminent domain (a
"Taking"), this Sublease shall terminate when Subtenant is required to vacate
the Demised Premises.
B. If a partial Taking results in so much of the Demised Premises
being taken as to render the remaining portion of the Demised Premises
unsuitable for Subtenant's continued use and occupancy as reasonably determined
by Subtenant (hereinafter for the purposes of this Article XII "Material Partial
Taking"), then Subtenant may, by delivering written notice to Sublandlord within
sixty (60) days after Subtenant receives written notice of the Material Partial
Taking, elect to terminate this Sublease as of the date Subtenant is required to
vacate the portion of the Demised Premises so taken.
C. If a partial Taking does not result in a Material Partial
Taking, then this Sublease shall not be terminated and Sublandlord shall, to the
extent of any Taking proceeds actually received by Sublandlord, and to the
extent reasonably practical, proceed with all reasonable dispatch to do such
work that may be reasonably required to restore what remains of the Demised
Premises as nearly as may be to its condition prior to the Taking.
D. Sublandlord shall be entitled to any and all proceeds
resulting from any Taking with respect to Sublandlord's interest in the Demised
Premises.
ARTICLE XIII. INDEMNITY, LIABILITY AND INSURANCE
Section 13.01 Subtenant's Indemnity.
Subtenant hereby indemnifies and agrees to save harmless Sublandlord
from and against any and all Loss and Expense which:
A. Results from any default, breach, violation or non-performance
of this Sublease or any provision of this Sublease by Subtenant.
B. Arises from injury to person or property or loss of life
sustained in or about the Demised Premises relating to the use or occupancy of
the Demised Premises by Subtenant, or any Subtenant Parties.
C. Results from the negligent or improper construction of any
Alterations made by or at the direction of Subtenant or the failure of Subtenant
or any Subtenant Parties to obtain any necessary permit, consent or other
approval in connection with the making of any Alterations.
D. Relates to any matter described in Article XIII.
Subtenant shall defend any actions, suits and proceedings which may be
brought against Sublandlord with respect to the foregoing or in which
Sublandlord may be impleaded. Subtenant shall pay, satisfy and discharge any
judgments, orders and decrees, which may be recovered against Sublandlord in
connection with the foregoing. Subtenant's indemnification liability under this
Sublease shall survive the expiration or other termination of this Sublease.
15
Section 13.02 Sublandlord's Indemnity.
Sublandlord hereby indemnifies and agrees to save harmless Subtenant
from and against any and all Loss and Expense which:
A. Results from any default, breach, violation or non-performance
of this Sublease or any provision of this Sublease by Sublandlord.
B. Arises from injury to person or property or loss of life
sustained in or about the Demised Premises relating to the use or occupancy of
the Demised Premises by Sublandlord, or Sublandlord's agents, contractors or
employees.
C. Results from the negligent or improper construction of any
Alterations made by or at the direction of Sublandlord or the failure of
Sublandlord to obtain any necessary permit, consent or other approval in
connection with the making of any Alterations.
D. Relates to any matter described in Section 8.02.
Sublandlord shall defend any actions, suits and proceedings, which may
be brought against Subtenant with respect to the foregoing or in which Subtenant
may be impleaded. Sublandlord shall pay, satisfy and discharge any judgments,
orders and decrees, which may be recovered against Subtenant in connection with
the foregoing. Sublandlord's indemnification liability under this Sublease shall
survive the expiration or other termination of this Sublease.
Notwithstanding anything to the contrary in this Section 13.02, except
to the extent of the gross negligence or willful misconduct of Sublandlord, or
any breach by Sublandlord of its obligations under this Sublease, Sublandlord
shall not be responsible or liable to Subtenant, or to those claiming by,
through or under Subtenant, for any loss or damage which may be occasioned by or
through the acts or omissions of persons occupying space adjoining the Premises
or any part of the premises adjacent to or connecting with the premises, or
otherwise, or for any loss or damage resulting to Subtenant, or those claiming
by, through or under Subtenant, or its property, from the breaking, bursting,
stoppage or leaking of electrical cable and wires, or water, gas, sewer or steam
pipes. To the maximum extent permitted by law, Subtenant agrees to use and
occupy the Premises at Subtenant's own risk.
Section 13.03 General Provisions with Respect to Insurance.
A. Upon the execution of this Sublease and no less than five (5)
business days before any insurance policy which Subtenant is required to carry
shall expire, Subtenant shall deliver to Sublandlord certificates for all
insurance which Subtenant is required to carry under the terms of this Sublease.
The renewal or replacement policy or certificate shall be delivered by Subtenant
to Sublandlord by certified mail, return receipt requested. If Subtenant fails
to give Sublandlord a copy of any required certificate of insurance within ten
(10) business days after written notice and demand therefore is given by
Sublandlord to Subtenant, in addition to the remedies provided in Article XV
below, Sublandlord may obtain and pay for that insurance coverage, in which
event the cost of such insurance coverage, together with interest at the
Interest Rate shall be due and payable by Subtenant as Additional Rent
immediately upon demand.
B. All insurance policies required to be carried under this
Sublease by or on behalf of either party (i) shall be issued by insurance
companies licensed to do business in the State of New
16
York, and maintaining during the policy term a "General Policyholders Rating" of
at least A-, as set forth in the most current issue of "Best's Insurance Guide"
and (ii) shall provide that (and any certificate evidencing the existence of any
insurance policies, shall certify that) unless Sublandlord shall have been given
thirty (30) days' written notice of any cancellation, the insurance shall not be
canceled and shall continue in full force and effect.
ARTICLE XIV. COVENANT OF QUIET ENJOYMENT
Sublandlord covenants that provided a "Default" (as defined in Article
XV below) has not occurred under this Sublease, Subtenant shall at all times
during the Sublease Term peaceably and quietly have, hold and enjoy the Demised
Premises, without any interruption or disturbance.
ARTICLE XV. DEFAULTS & REMEDIES
Section 15.01 Defaults.
Any of the following shall constitute a "Default" under this Sublease:
A. Subtenant shall fail to pay any installment of Rent when the
same shall be due and payable, and such failure shall continue for a period of
ten (10) days after receipt by Subtenant of written notice thereof from
Sublandlord; or
B. If Subtenant shall fail to maintain the insurance coverage
required by this Sublease or Subtenant shall fail to timely deliver a copy of
any certificate of insurance required hereunder and such default shall continue
for a period of ten business (10) days after written notice is given by
Sublandlord to Subtenant specifying such default; or default shall be made with
respect to any assignment of this Sublease or subletting of the Demised Premises
as provided in Article IX hereof; or default shall be made with respect to
Subtenant's obligation to make certifications as provided in Article XVI
hereof(such notice provided herein constituting a second notice in addition to
that provided for in Article XVI); or
C. Subtenant shall fail to perform any of the other covenants,
conditions and agreements herein contained on Subtenant's part to be performed
and such failure shall continue for a period of thirty (30) days after receipt
by Subtenant of notice in writing from Sublandlord specifying in detail the
nature of such failure, except that if within the thirty (30) day period
Subtenant commences and thereafter proceeds diligently to remedy the violation
or failure within a reasonable period of time, Subtenant shall not be in default
hereunder.
D. Subtenant shall file a voluntary petition in bankruptcy or
shall be adjudicated a bankrupt or insolvent or shall file any petition or
answer seeking any reorganization, arrangement, composition, readjustment,
liquidation, dissolution or similar relief under the present or any future
federal bankruptcy act or any other present or future applicable federal, state
or other stature or law, or shall seek or consent to or acquiesce in the
appointment of any trustee, receiver or liquidator of Subtenant or of all or any
substantial part of its properties or of the Demised Premises; or
E. If within sixty (60) days after the commencement of any
proceeding against Subtenant seeking any reorganization, arrangement
composition, readjustment, liquidation, dissolution or similar relief under the
present or any future federal bankruptcy act or any other present or future
applicable
17
federal, state or other statute or law, such proceeding shall not have been
dismissed, or if, within sixty (60) days after the appointment, without the
consent or acquiescence of Subtenant of any trustee, receiver or liquidator of
Subtenant, or of all or any substantial part of its properties or of the Demised
Premises, such appointment shall not have been vacated or stayed on appeal or
otherwise, or if, within sixty (60) days after the expiration of any such stay,
such appointment shall not have been vacated.
F. The abandonment of the Demised Premises by Subtenant at any
time following delivery of possession of the Demised Premises to Subtenant.
Section 15.02 Sublandlord Remedies.
A. After the occurrence of a Default, Sublandlord may, at its
option, give Subtenant a notice of election to end the Term upon a date
specified in such notice, which date shall not be less than five (5) days after
the date such notice is given to Subtenant, and upon the date specified in such
notice, this Sublease and the Term shall cease and any and all other right,
title and interest of Subtenant hereunder shall likewise cease without further
notice or lapse of time, as fully and with like effect as if the entire Term had
elapsed, but Subtenant shall continue to be liable to Sublandlord as hereinafter
provided.
B. Upon any termination of this Sublease pursuant to Section
15.02(A) or at any time thereafter, Sublandlord may, in addition to and without
prejudice to any other rights and remedies Sublandlord shall have at law or in
equity, re-enter the Demised Premises and recover possession thereof and
dispossess any or all occupants of the Demised Premises in the manner prescribed
by the statute relating to summary proceedings, or similar statutes; but
Subtenant in such case shall remain liable to Sublandlord as hereinafter
provided.
C. Upon any termination of this Sublease pursuant to Section
15.02(A), (i) the Rent shall become due thereupon and be paid up to the time of
such reentry, expiration and/or dispossession; and (ii) Subtenant or the legal
representatives of Subtenant shall also pay Sublandlord as damages for the
failure of Subtenant to observe and perform Subtenant's covenants herein
contained, any deficiency between the Rent hereby reserved and/or covenanted to
be paid and the net amount, if any, of the rents collected on account of any
sublease or subleases of the Demised Premises entered into by Sublandlord for
each month of the period which would otherwise have constituted the balance of
the Term. When determining the balance of the Term for the purposes of this
Section 15.02(c), it will be assumed that Subtenant would, on the date the
Sublease is terminated by Sublandlord, have exercised its election to terminate
or not renew the Sublease pursuant to Article III. Any such damages shall be
paid in monthly installments by Subtenant on the first day of each month, and
any suit brought to collect the amount of the deficiency for any month shall not
prejudice in any way the fight of Sublandlord to collect the deficiency for any
subsequent month by a similar proceeding.
D. In the event of the occurrence of a Default, or a threatened
breach by Subtenant of any of the agreements, terms, covenants or conditions of
this Sublease on Subtenant's part to be performed, Sublandlord shall have the
right to enjoin such Default or threatened breach by Subtenant.
E. If Subtenant shall fail to perform or observe any term or
condition in this Sublease, and shall not cure such failure within ten (10)
business days after Sublandlord notifies Subtenant of such failure or shall have
not commenced a cure during such time period and be diligently prosecuting such
cure to completion, Sublandlord may, but shall not be obligated to, cure such
failure by Subtenant under this Sublease. Whenever Sublandlord so elects to
cure, all costs and expenses incurred by
18
Sublandlord, including reasonable attorneys' fees, shall be considered Rent
hereunder and shall be paid by Subtenant to Sublandlord within five (5) days of
demand, together with interest at the Interest Rate.
F. No acceptance by Sublandlord of a lesser sum than the Rent, or
any charge then due shall be deemed to be other than on account of the earliest
installment of such Rent or charge due, nor shall any endorsement or statement
on any check or any letter accompanying any check or payment as Rent or other
charge be deemed as an accord and satisfaction, and Sublandlord may accept such
check or payment without prejudice to Sublandlord's right to recover the balance
of such installment or pursue any other remedy in this Sublease provided.
G. Any failure of Sublandlord to complain of any act or omission
on the part of Subtenant, no matter how long the same may continue, shall not be
deemed to be a waiver by Sublandlord of any of its rights hereunder. No waiver
by Sublandlord at any time, express or implied, of any breach of any provision
of this Sublease shall be deemed a waiver of a breach of any other provision of
this Sublease or a consent to any subsequent breach of the same or any other
provision. No covenant term or condition of this Sublease shall be deemed to
have been waived by Sublandlord, unless such waiver is acknowledged in writing
by Sublandlord.
H. Each right and remedy provided for in this Sublease shall be
cumulative and shall be in addition to every other right or remedy provided for
in this Sublease or now or hereafter existing at law or in equity or by statute
or otherwise, and the exercise or beginning of the exercise by Sublandlord of
any one or more of the rights or remedies provided for in this Sublease, or now
or hereafter existing in law or in equity, shall not preclude the simultaneous
or later exercise by Sublandlord of any or all other available rights or
remedies Sublandlord may elect. In no event shall either party be liable to the
other for consequential or incidental damages. In the event of any default of
Subtenant hereunder, Sublandlord shall act reasonably to mitigate its damages.
I. In the event Subtenant shall default more than two times by
failing to pay Rent when due, the five percent (5%) late fee referenced in
Section 4.06 shall be increased to ten percent (10%) to compensate Sublandlord
for additional administrative costs related to multiple breaches of this
Sublease by Subtenant.
J. If a judicial remedy is necessary to enforce or interpret any
provision of the Sublease, the prevailing party shall be entitled to reasonable
attorneys' fees, costs and other expenses, in addition to any other relief to
which is available under the terms of this Sublease.
Section 15.03 Sublandlord Default.
In the event Sublandlord fails to perform any of its obligations under
this Sublease and (except in case of emergency posing an immediate threat to
persons or property, in which case no prior notice shall be required) fails to
cure such default within thirty (30) days after written notice from Subtenant
specifying the nature of such default where such default could reasonably be
cured within said thirty (30) day period, or fails to commence such cure within
said thirty (30) day period and thereafter continuously with due diligence
prosecute such cure to completion where such default could not reasonably be
cured within said thirty (30) day period, then Subtenant may: (i) proceed in
equity or at law to compel Sublandlord to perform its obligations and/or to
recover damages proximately caused by such failure to perform (except to the
extent Subtenant has waived its right to damages resulting from injury to person
or damage to property as provided herein); or (ii) cure any
19
default of Sublandlord at Sublandlord's cost. If Subtenant at any time by reason
of Sublandlord's default reasonably pays any sum or does any act that requires
the payment of any sum, the sum paid by Subtenant shall be immediately due from
Sublandlord to Subtenant at the time the sum is paid. Any and all rights and
remedies herein created for Subtenant shall be cumulative and use of one remedy
shall not be taken to exclude or waive the right to the use of another and
Subtenant shall have the remedies available to Subtenant under applicable law.
ARTICLE XVI. ESTOPPEL CERTIFICATE
At any time within ten business (10) days after request by Sublandlord
or Subtenant ("Requesting Party"), by written instrument, duly executed and
acknowledged, the other party ("Certifying Party") shall certify to the
Requesting Party, any purchaser, lender, potential subtenant, potential assignee
of this Sublease or any other person specified by the Requesting Party, the
following:
A. Whether this Sublease is in full force and effect and has not
been assigned, modified, supplemented or amended (except to the extent such
writings are set forth);
B. Whether all conditions under this Sublease required to be
satisfied by the Requesting Party have been satisfied (or stating those that
have not been satisfied);
C. That there are no defenses or offsets against the enforcement
of this Sublease by the Requesting Party (or stating those claimed by the
Certifying Party);
D. The amount of advance rental, if any, paid by Subtenant and
the date to which such rental has been paid; and
E. Such other terms, covenants and conditions which the
Requesting Party, any proposed sub-subtenant or any other party requesting the
certificate shall reasonably require.
ARTICLE XVII. RIGHT OF ACCESS
Section 17.01 Sublandlord's Rights.
Sublandlord shall be entitled to:
A. Upon one (1) day advance oral notice, inspect the Demised
Premises during business hours after notice to Subtenant and with no notice in
the event of an emergency;
B. Upon one (1) day advance oral notice, show, through its
agents, employees and/or other representatives, the Demised Premises during
normal business hours to persons wishing to purchase the same, and, after an
Event of Default by Subtenant or either party's notice of intent not to renew
this Sublease, to persons wishing to rent the same;
C. Through its agents, employees and/or other representatives, to
place notices on the front of the Demised Premises or any part thereof
reasonably acceptable to Subtenant, offering the Demised Premises for sale, and,
after an Event of Default by Subtenant or either party's notice of intent not to
renew this Sublease, for rent; and
20
D. Inspect the Demised Premises at will if Subtenant has vacated
and abandoned the Demised Premises.
E. Access to and continued use of the Demised Premises, at any
time without notice, for the purpose of repairing Sublandlord's equipment
identified on EXHIBIT A-3. Sublandlord shall provide Subtenant one (1) day
advance oral notice prior to inspections and routine maintenance of such
equipment. Sublandlord shall use its best efforts to minimize disruption to
Subtenant's operations during such access.
Section 17.02 Sublandlord's Covenants.
If Sublandlord enters the Demised Premises, Sublandlord shall do so
with due regard for the business being conducted in the Demised Premises by
Subtenant. No entry by Sublandlord shall unreasonably interfere with the conduct
of Subtenant's business operations. During any entry in the Demised Premises,
Sublandlord shall comply with all reasonable security and health and safety
requirements of Subtenant.
ARTICLE XVIII. PROVISIONS REGARDING MASTER LEASE
Section 18.01 Subject to Master Lease.
A. This Sublease shall be subject and subordinate to the terms of
the Master Lease. Subtenant affirmatively agrees it shall not violate any term
or condition of the Master Lease or the PILOT Agreement or any other document or
instrument executed in connection with SCIDA.
B. Sublandlord agrees to keep the Master Lease in full force and
effect for the benefit of Subtenant, except with respect to (i) a mutual
agreement of the Subtenant and Sublandlord to terminate this Sublease (or
terminate the Master Lease and enter in to a direct lease) and (ii)
Sublandlord's termination of this Sublease in accordance with the terms and
conditions of this Sublease.
C. The subleasing of the Demised Premises shall in no way relieve
Sublandlord from its obligations under the Master Lease or PILOT Agreement; and
SCIDA's Unassigned Right under the Master Lease shall remain in full force and
effect.
Section 18.02 Conflict with Master Lease.
In the event of any conflict between the terms of this Sublease and the
terms of the Master Lease, as between Sublandlord and Subtenant only, the terms
of this Sublease shall prevail.
ARTICLE XIX. INTERPRETATION, NOTICE, MISCELLANEOUS
Section 19.01 Interpretation.
A. If any provision of this Sublease or the application thereof
to any person or circumstance shall to any extent be invalid or unenforceable,
the remainder of this Sublease, or the application of such provision to persons
or circumstances other than those to which it is invalid or
21
unenforceable, shall not be affected thereby, and each provision of this
Sublease shall be valid and be enforced to the fullest extent permitted by law.
B. The captions and headings used throughout this Sublease are
for convenience of reference only and shall not affect the interpretation of
this Sublease.
C. This Sublease may be executed in several counterparts; but the
counterparts shall constitute but one and the same instrument.
D. Wherever a requirement is imposed on any party hereto, it
shall be deemed that such party shall be required to perform such requirement at
its own expense unless it is specifically otherwise provided herein.
E. The singular includes the plural and the plural includes the
singular.
F. All exhibits referred to in this Sublease are attached to this
Sublease and are considered part of this Sublease.
Section 19.02 Construing Various Words and Phrases.
A. Wherever it is provided herein that a party may perform an act
or do anything, it shall be construed that the party may, but shall not be
obligated to, so perform or so do.
B. The following words and phrases shall be construed as follows:
1. "At any time" shall be construed as, "at any time or
from time to time".
2. "Any" shall be construed as "any and all".
3. "Including" shall be construed as "including but not
limited to".
Section 19.03 Entire Agreement.
This Sublease contains the entire agreement between the parties with
respect to its subject matter and cannot be changed, modified or amended unless
such change, modification or amendment is in writing and executed by the party
against which the enforcement of the change, modification or amendment is
sought.
Section 19.04 Communications.
No notice, request, consent, approval, waiver or other communication
under this Sublease shall be effective unless it is in writing and is mailed by
registered or certified mail, return receipt requested, or sent by facsimile
with confirmation of receipt, or delivered personally, including by reputable
overnight courier, addressed:
A. If to Sublandlord, to the address designated as Sublandlord's
Notice Address, or such other address as Sublandlord designates by giving notice
thereof to Subtenant; and
B. If to Subtenant, to the address designated as Subtenant's
Notice Address, or such other address as Subtenant shall designate by giving
notice thereof to Sublandlord.
22
C. Sublandlord's Notice Addresses:
Corning Property Management Corporation
c/o Corning Incorporated
Attn.: Secretary
Xxx Xxxxxxxxxx Xxxxx
Xxxxxxx, Xxx Xxxx 00000
Facsimile Number: 000-000-0000
Corning Property Management Corporation
c/o Corning Incorporated
Attn: President
Xxx Xxxxxxxxxx Xxxxx
XX-XX-00
Xxxxxxx, Xxx Xxxx 00000
Facsimile Number: 000-000-0000
D. Subtenant's Notice Address:
Avanex Corporation
00000 Xxxxxxxxxxxx Xxxxxx
Xxxxxxx, XX 00000, XXX
Attention: Chief Executive Officer
Facsimile Number: 000-000-0000
E. Steuben County Industrial Development Agency Notice Address:
7234 Rout 54 North
XX Xxx 000
Xxxx, Xxx Xxxx 00000-0000
Notices shall be delivered by hand or by United States certified or
registered mail, postage prepaid, return receipt requested, or by a nationally
recognized overnight air courier service. Notices shall be considered to have
been given upon the earlier to occur of actual receipt or refusal to accept
delivery.
Section 19.05 Method of Payment.
Except as herein otherwise expressly provided, all amounts payable
under this Sublease shall be payable in good funds of the United States of
America which at the time legal tender for public and private debts.
Section 19.06 Successors and Assigns.
Subject to the provisions hereof, this Sublease shall bind and inure to
the benefit of the parties and their respective successors, representatives,
heirs and assigns.
Section 19.07 Responsibility of Subtenant.
Any restriction on or requirement imposed upon Subtenant hereunder
shall be deemed to extend to Subtenant's subtenants, concessionaires and
licensees and it shall be Subtenant's
23
obligation to cause the foregoing persons to comply with such restriction or
requirement. Nothing contained in this Section 18.07 shall be deemed to
authorize any such subtenants, concessionaires or licensees except as provided
in Section 9.01.
Section 19.08 Brokerage.
Subtenant represents and warrants and it has not dealt with any broker
relating to this Sublease, and Subtenant agrees to indemnify and save
Sublandlord harmless from any claims made by any broker claiming to have dealt
with Subtenant. Sublandlord represents and warrants that it has not dealt with
any broker relating to this Sublease, and Sublandlord agrees to indemnify and
save Subtenant harmless from any claims made by any broker claiming to have
dealt with Sublandlord. The terms and provisions of this Section 18.08 shall
survive the expiration or other termination of this Sublease.
Section 19.09 Applicable Law.
This Sublease, and the rights and obligations of the parties hereto,
shall be interpreted and construed in accordance with the laws of the State of
New York.
Section 19.10 Consent to Assignment.
Pursuant to Section 6.3 of the Master Lease, this Sublease shall be
effective upon obtaining the written consent of SCIDA, and it is hereby
acknowledged by Sublandlord and Subtenant (by the execution of this Sublease)
that the giving of SCIDA's consent to this Sublease (i) shall not make SCIDA or
its agent, a party to this Sublease, (ii) shall not be deemed approval of any
improvements, if any, to be made or given in connection with this Sublease, and
(iii) shall in no way relieve Sublandlord from its obligations under the Master
Lease and PILOT Agreement.
[SIGNATURE PAGE FOLLOWS]
24
IN WITNESS WHEREOF, Sublandlord and Subtenant have caused this
Sublease to be executed by their duly authorized officers.
SUBLANDLORD:
CORNING PROPERTY MANAGEMENT
CORPORATION
By: /s/________________________________
Its: Secretary
SUBTENANT:
AVANEX CORPORATION
By: /s/ XXXXX XXXXXXX
-----------------------------------
Its: Chief Financial Officer
25
EXHIBIT A-1
LEGAL DESCRIPTION
ALL THAT TRACT OR PARCEL OF LAND situate in the Town of Xxxxx, County of Steuben
and State of New York; bounded and described as follows:
Beginning at a point on the southerly boundary of the lands conveyed to Corning
Enterprises, Inc. by deed recorded in the Liber 1046 of Deeds Page 527 (Schedule
32 therein), 820.71 feet easterly from the southwesterly corner of said
conveyance and the southeasterly corner of said conveyance and the southeasterly
corner of lands conveyed to Corning Glass Works by "Xxxxxxx" by deed recorded in
the Liber 792 of Deeds, Page 948;
Thence through the lands of Corning Enterprises, Inc. the following nine (9)
courses and distances:
1. N.22 degrees 00'29" W., a distance of 894.75 feet;
2. N.2 degrees 16'26" E., a distance of 667.16 feet to a point on the
southerly boundary of a proposed roadway;
3. Easterly along said proposed roadway on a curve to the left with a
radius of 603.00 feet an arc distance of 286.52 feet (producing a chord
of N. 77 degrees 46'08" E., 283.83 feet) to a point of tangency;
4. N. 64 degrees 09'24" E., along said proposed roadway, 812.29 feet to a
point on the westerly boundary of a proposed extension of Xxxxxx Xxxx
Drive;
5. Thence S. 25 degrees 59'36" E., along the last mentioned highway, 32.13
feet to a point of curvature;
6. Thence southeasterly along said proposed highway on a curve to the left
with a radius of 812.50 feet, an arc distance of 464.90 feet (producing
a chord of S. 42 degrees 14'08" E., 458.59 feet) to a point of
tangency;
7. Thence S. 58 degrees 37'39" E. a distance of 428.58 feet to a point of
curvature;
8. Thence southeasterly and southerly along a curve to the right with a
radius of 687.50 feet, an arc distance of 778.63 feet (producing a
chord of S. 26 degrees 10'56" E., 737.68 feet) to a point of tangency;
9. Thence S. 6 degrees 15'47" W. continuing along said proposed highway,
722.86 feet to a point on said southerly boundary of lands of Corning
Enterprises, Inc. and a northern boundary of other lands of Corning,
Inc.;
Thence N. 87 degrees 50'17" W., along the last mentioned boundary, 1635.58
feet to the point or place of beginning;
Being 69.987 acres of land, more or less.
26
EXHIBIT A-2
DEMISED PREMISES
The land described in Exhibit A-1 and the building and other
improvements located thereon.
27
EXHIBIT A-3
EXCLUDED EQUIPMENT
28
THIS PAGE IS INTENTIONALLY LEFT BLANK
1
Exhibit A-3
Assets Owned by Sublandlord, Used by Subtenant (i.e., Excluded Equipment)
ASSET IN LTD
LOC DEPT CLASS ID ASSET DESCRIPTION SERVICE LIFE P CUSTODIAN PROJECT ID TAG COST DPR NBV
--- ---- -------- ------ ---------------------------- ------- ---- -- --------- ---------- ---------- ---- --- -----
[*] [*] AUDIOVIS [*] AUDITORIUM MICROPHONE [*] [*] P [*] [*] [*] [*] -
[*] [*] AUDIOVIS [*] TARGET VISION SYSTEM [*] [*] P [*] [*] [*] [*] [*] [*]
[*] [*] AUDIOVIS [*] ENVOY PROJECTION SCREEN [*] [*] P [*] [*] [*] [*] [*] [*]
LUMA PROJECTION
[*] [*] AUDIOVIS [*] SCREEN [*] [*] P [*] [*] [*] [*] [*] [*]
CRESTRON TOUCH
[*] [*] AUDIOVIS [*] SCREEN [*] [*] P [*] [*] [*] [*] [*] [*]
[*] [*] BUILD [*] HVAC INSTALLATION [*] [*] R [*] [*] [*] [*] [*] [*]
[*] [*] BUILD [*] RC3 PH II UNIT HEATER [*] [*] P [*] [*] [*] [*] [*] [*]
[*] [*] BUILD [*] RC3 PH II VAV BOXES [*] [*] P [*] [*] [*] [*] [*] [*]
[*] [*] BUILD [*] RC3 PH II OPERABLE WALLS [*] [*] P [*] [*] [*] [*] [*] [*]
[*] [*] COMPEQ [*] INTERNAL CLOCK SYSTEM [*] [*] P [*] [*] [*] [*] [*] [*]
[*] [*] COMPEQ [*] INTERNAL CLOCK SYSTEM ADD [*] [*] P [*] [*] [*] [*] [*] [*]
[*] [*] COMPEQ [*] ATA DATA COLLECTION TERMIALS [*] [*] P [*] [*] [*] [*]
[*] [*] ENVRCNTL [*] HAZARDOUS WASTE "BUILDING" [*] [*] P [*] [*] [*] -
[*] [*] FF [*] PTD:PATIO FURNITURE [*] [*] P [*] [*] [*] [*] [*] [*]
[*] [*] FF [*] RECEPTION AREA [*] [*] P [*] [*] [*] [*] [*] [*]
REFRIGERATORS FOR
[*] [*] FF [*] CAFE [*] [*] P [*] [*] [*] [*] [*] [*]
[*] [*] FF [*] RC3 CAFE CONDIMENT COUNTER [*] [*] P [*] [*] [*] [*] [*] [*]
[*] [*] FF [*] RC3 CAFE CASHIER COUNTER [*] [*] P [*] [*] [*] [*] [*] [*]
[*] [*] FF [*] RC3 CAFE DELI EXTENSION [*] [*] P [*] [*] [*] [*] [*] [*]
[*] [*] FF [*] RC3 CAFE PIZZA SLIDE/COUNTER [*] [*] P [*] [*] [*] [*] [*] [*]
[*] [*] FF [*] RC3 PH II LOCKERS [*] [*] P [*] [*] [*] [*] [*] [*]
[*] [*] FF [*] FLOOR LECTERN [*] [*] P [*] [*] [*] [*] [*] [*]
[*] Certain information on this page has been omitted and filed separately with
the Commission. Confidential treatment has been requested with respect to the
omitted portions.
1
Exhibit A-3 (continued)
ASSET IN LTD
LOC DEPT CLASS ID ASSET DESCRIPTION SERVICE LIFE P CUSTODIAN PROJECT ID TAG COST DPR NBV
--- ---- ---------- ----- ---------------------------- ------- ---- --- --------- ---------- ---------- ---- --- ---
[*] [*] FF [*] PODIUM LECTERN [*] [*] P [*] [*] [*] [*] [*] [*]
[*] [*] FORMING [*] SS SINK W/ FAUCET [*] [*] P [*] [*] [*] -
[*] [*] FORMING [*] NEW HVAC FOR ROOM 121 [*] [*] P [*] [*] [*] -
[*] [*] LEASEHOLD [*] MPA BOSCH STRUCTURAL WALL [*] [*] P [*] [*] [*] [*] [*] [*]
[*] [*] LEASEHOLD [*] MEZZANNINE, FREE STANDING [*] [*] P [*] [*] [*] [*] [*] [*]
[*] [*] MAINTEQ [*] SWITCHGEAR [*] [*] P [*] [*] [*] [*] [*] [*]
PHONE&NETWORK
WIRING/MFG
[*] [*] MISCEQ [*] AREA [*] [*] P [*] [*] [*] [*]
[*] [*] MISCEQ [*] PTD_97 NETWORK/PHONE EQPT [*] [*] P [*] [*] [*] [*] [*] [*]
[*] [*] MISCEQ [*] PALLET RACKS STOREROOM [*] [*] P [*] [*] [*] [*] [*] [*]
[*] [*] MISCEQ [*] FLOW THROUGH RACKS STOREROOM [*] [*] P [*] [*] [*] [*] [*] [*]
[*] [*] MISCEQ [*] FIBER RACKS STOREROOM [*] [*] P [*] [*] [*] [*] [*] [*]
[*] [*] MISCEQ [*] SHELVING STOREROOM [*] [*] P [*] [*] [*] [*] [*] [*]
[*] [*] OUTSIDESTR [*] MCC GAS STORAGE BUILDING [*] [*] P [*] [*] [*] [*] [*]
[*] [*] PHOTONICEQ [*] PTD-TRANSFORMERS [*] [*] P [*] [*] [*] [*] [*] -
[*] [*] PHOTONICEQ [*] PTD-TRANSFORMERS [*] [*] P [*] [*] [*] [*] [*] -
[*] [*] PHOTONICEQ [*] FINISHED GOODS STORAGE [*] [*] P [*] [*] [*] [*] [*] [*]
[*] [*] PHOTONICEQ [*] FINISHED GOODS STORAGE-ADDL [*] [*] P [*] [*] [*] [*] [*] [*]
RC3 PH II PUMPS &
[*] [*] SERVICE [*] ACCESSORIES [*] [*] P [*] [*] [*] [*] [*] [*]
RC3 PH II ULTRA VIOLET
[*] [*] SERVICE [*] SYSTEM [*] [*] P [*] [*] [*] [*] [*] [*]
RC3 PH II WATER TRETMNT
[*] [*] SERVICE [*] SYSTEM [*] [*] P [*] [*] [*] [*] [*] [*]
[*] Certain information on this page has been omitted and filed separately with
the Commission. Confidential treatment has been requested with respect to the
omitted portions.
2
Exhibit A-3 (continued)
ASSET IN LTD
LOC DEPT CLASS ID ASSET DESCRIPTION SERVICE LIFE P CUSTODIAN PROJECT ID TAG COST DPR NBV
--- ---- -------- ----- --------------------------- ------- ---- --- --------- ---------- ---- ---- --- ---
[*] [*] SERVICE [*] RC3 PH II WATER SOFTNER [*] [*] P [*] [*] [*] [*] [*] [*]
[*] [*] SERVICE [*] RC3 PH II HOT WATER HEATERS [*] [*] P [*] [*] [*] [*] [*] [*]
[*] [*] SOFTWARE [*] METASSYS SOFTWARE [*] [*] P [*] [*] [*] [*] [*] -
[*] Certain information on this page has been omitted and filed separately with
the Commission. Confidential treatment has been requested with respect to the
omitted portions.
3
EXHIBIT A-4
IT ASSETS
EQUIPMENT THAT HAS BEEN OR WILL BE TRANSFERRED TO SUBTENANT
ASSET TYPE FUNCTION COMMENTS
------------------------- ------------------------------ -------------------------------------------------------------------
Intel Server(Miniblind) Mgmt/SMS Server Will be transferred to CPT to be included within the sale to Avanex
Intel Server(Stingray) Domain Controller Will be transferred to CPT to be included within the sale to Avanex
Intel Server(Raven) Shutdown Will be transferred to CPT to be included within the sale to Avanex
Will be transferred to CPT to be included within the sale to Avanex
Intel Server(Triangle) Shutdown Will be transferred to CPT to be included within the sale to Avanex
Intel Server(Lampshade) Windchill Will be transferred to CPT to be included within the sale to Avanex
Intel Server(Whirlpool) PS ESD database Will be transferred to CPT to be included within the sale to Avanex
Intel Server(Eclipse) PS ESD application Will be transferred to CPT to be included within the sale to Avanex
Intel Server(Clover) PS ESD development application Will be transferred to CPT to be included within the sale to Avanex
Intel Server(Xxxxxx) PS ESD Barcode application Will be transferred to CPT to be included within the sale to Avanex
Will be transferred to CPT to be included within the sale to Avanex
Intel Server(Europa) MES Quality system Will be transferred to CPT to be included within the sale to Avanex
Intel Server(Xxxx) Cognos Reporting Will be transferred to CPT to be included within the sale to Avanex
Intel Server(Coffeetable) MES development database Will be transferred to CPT to be included within the sale to Avanex
Voice Telephones sets Were transferred to CPT to be included within the sale to Avanex
Network 24 port 10/100 copper switch Already transferred to CPT to be included within the sale to Avanex
Network 24 port 10/100 copper switch Already transferred to CPT to be included within the sale to Avanex
Network 24 port 10/100 copper switch Already transferred to CPT to be included within the sale to Avanex
Network 24 port 10/100 copper switch Already transferred to CPT to be included within the sale to Avanex
Network 24 port 10/100 copper switch Already transferred to CPT to be included within the sale to Avanex
Network 24 port 10/100 copper switch Already transferred to CPT to be included within the sale to Avanex
Network 24 port 10/100 copper switch Already transferred to CPT to be included within the sale to Avanex
Network 24 port 10/100 copper switch Already transferred to CPT to be included within the sale to Avanex
Network 24 port 10/100 copper switch Already transferred to CPT to be included within the sale to Avanex
Network 24 port 10/100 copper switch Already transferred to CPT to be included within the sale to Avanex
Network 24 port 10/100 copper switch Already transferred to CPT to be included within the sale to Avanex
Network 24 port 10/100 copper switch Already transferred to CPT to be included within the sale to Avanex
Network 24 port 10/100 copper switch Already transferred to CPT to be included within the sale to Avanex
Network 24 port 10/100 copper switch Already transferred to CPT to be included within the sale to Avanex
Network 24 port 10/100 copper switch Already transferred to CPT to be included within the sale to Avanex
1
EXHIBIT A-4 (CONTINUED)
ASSET TYPE FUNCTION COMMENTS
------------------------- ------------------------------ --------------------------------------------------------------------
Network 24 port 10/100 copper switch Already transferred to CPT to be included within the sale to Avanex
Network 24 port 10/100 copper switch Already transferred to CPT to be included within the sale to Avanex
Network 24 port 10/100 copper switch Already transferred to CPT to be included within the sale to Avanex
Network 24 port 10/100 copper switch Already transferred to CPT to be included within the sale to Avanex
Network 24 port 10/100 copper switch Already transferred to CPT to be included within the sale to Avanex
Network 24 port 10/100 copper switch Already transferred to CPT to be included within the sale to Avanex
Network 24 port 10/100 copper switch Already transferred to CPT to be included within the sale to Avanex
Network 24 port 10/100 copper switch Already transferred to CPT to be included within the sale to Avanex
Network 24 port 10/100 copper switch Already transferred to CPT to be included within the sale to Avanex
Network 24 port 10/100 copper switch Already transferred to CPT to be included within the sale to Avanex
Network 24 port 10/100 copper switch Already transferred to CPT to be included within the sale to Avanex
Network 24 port 10/100 copper switch Already transferred to CPT to be included within the sale to Avanex
Network 24 port 10/100 copper switch Already transferred to CPT to be included within the sale to Avanex
Network 24 port 10/100 copper switch Already transferred to CPT to be included within the sale to Avanex
Network 24 port 10/100 copper switch Already transferred to CPT to be included within the sale to Avanex
Catalyst 12-port Gig Ethernet
Network Switch Already transferred to CPT to be included within the sale to Avanex
Catalyst 12-port Gig Ethernet
Network Switch Already transferred to CPT to be included within the sale to Avanex
Catalyst 12-port Gig Ethernet
Network Switch Already transferred to CPT to be included within the sale to Avanex
Network 9-slot chassis Already transferred to CPT to be included within the sale to Avanex
Network Power Supply Already transferred to CPT to be included within the sale to Avanex
Network Power Supply Already transferred to CPT to be included within the sale to Avanex
Network Sup2 Already transferred to CPT to be included within the sale to Avanex
Network PFC Already transferred to CPT to be included within the sale to Avanex
Network MSFC Already transferred to CPT to be included within the sale to Avanex
Network 16-port Gig-Eth Mod Already transferred to CPT to be included within the sale to Avanex
Network 16-port Gig-Eth Mod Already transferred to CPT to be included within the sale to Avanex
Network Switch Fabric Module Already transferred to CPT to be included within the sale to Avanex
Network 16-port Gig-Eth Mod Already transferred to CPT to be included within the sale to Avanex
Network 48-port 10/100 RJ-45 Already transferred to CPT to be included within the sale to Avanex
Network 9-slot chassis Already transferred to CPT to be included within the sale to Avanex
Network Power Supply Already transferred to CPT to be included within the sale to Avanex
Network Power Supply Already transferred to CPT to be included within the sale to Avanex
Network Supervisor 1A Already transferred to CPT to be included within the sale to Avanex
2
EXHIBIT A-4 (CONTINUED)
ASSET TYPE FUNCTION COMMENTS
------------------------- ------------------------------ --------------------------------------------------------------------
Network PFC Already transferred to CPT to be included within the sale to Avanex
Network 24-port 100FX MT-RJ Already transferred to CPT to be included within the sale to Avanex
Network 24-port 100FX MT-RJ Already transferred to CPT to be included within the sale to Avanex
Network 24-port 100FX MT-RJ Already transferred to CPT to be included within the sale to Avanex
Network 24-port 100FX MT-RJ Already transferred to CPT to be included within the sale to Avanex
Network 24-port 100FX MT-RJ Already transferred to CPT to be included within the sale to Avanex
Network 24-port 100FX MT-RJ Already transferred to CPT to be included within the sale to Avanex
Network 9-slot chassis Already transferred to CPT to be included within the sale to Avanex
Network Power Supply Already transferred to CPT to be included within the sale to Avanex
Network Power Supply Already transferred to CPT to be included within the sale to Avanex
Network Sup1A with PFC Already transferred to CPT to be included within the sale to Avanex
Network PFC Already transferred to CPT to be included within the sale to Avanex
Network 24-port 100FX MT-RJ Already transferred to CPT to be included within the sale to Avanex
Network 24-port 100FX MT-RJ Already transferred to CPT to be included within the sale to Avanex
Network 24-port 100FX MT-RJ Already transferred to CPT to be included within the sale to Avanex
Network 24-port 100FX MT-RJ Already transferred to CPT to be included within the sale to Avanex
Network 24-port 100FX MT-RJ Already transferred to CPT to be included within the sale to Avanex
Network 24-port 100FX MT-RJ Already transferred to CPT to be included within the sale to Avanex
Network 24-port 100FX MT-RJ Already transferred to CPT to be included within the sale to Avanex
Network 9-slot chassis Already transferred to CPT to be included within the sale to Avanex
Network Power Supply Already transferred to CPT to be included within the sale to Avanex
Network Power Supply Already transferred to CPT to be included within the sale to Avanex
Network Sup1A with PFC Already transferred to CPT to be included within the sale to Avanex
Network PFC Already transferred to CPT to be included within the sale to Avanex
Network 24-port 100FX MT-RJ Already transferred to CPT to be included within the sale to Avanex
Network 24-port 100FX MT-RJ Already transferred to CPT to be included within the sale to Avanex
Network 24-port 100FX MT-RJ Already transferred to CPT to be included within the sale to Avanex
Network 24-port 100FX MT-RJ Already transferred to CPT to be included within the sale to Avanex
Network 24-port 100FX MT-RJ Already transferred to CPT to be included within the sale to Avanex
Network 24-port 100FX MT-RJ Already transferred to CPT to be included within the sale to Avanex
Network 24-port 100FX MT-RJ Already transferred to CPT to be included within the sale to Avanex
Network 9-slot chassis Already transferred to CPT to be included within the sale to Avanex
Network Power Supply Already transferred to CPT to be included within the sale to Avanex
3
EXHIBIT A-4 (CONTINUED)
ASSET TYPE FUNCTION COMMENTS
------------------------- ------------------------------ --------------------------------------------------------------------
Network Power Supply Already transferred to CPT to be included within the sale to Avanex
Network Sup1A with PFC Already transferred to CPT to be included within the sale to Avanex
Network PFC Already transferred to CPT to be included within the sale to Avanex
Network 24-port 100FX MT-RJ Already transferred to CPT to be included within the sale to Avanex
Network 100BaseFX MM Ethernet Already transferred to CPT to be included within the sale to Avanex
Network 24-port 100FX MT-RJ Already transferred to CPT to be included within the sale to Avanex
Network 24-port 100FX MT-RJ Already transferred to CPT to be included within the sale to Avanex
Network 9-slot chassis Already transferred to CPT to be included within the sale to Avanex
Network Power Supply Already transferred to CPT to be included within the sale to Avanex
Network Power Supply Already transferred to CPT to be included within the sale to Avanex
Network Supervisor 1A Already transferred to CPT to be included within the sale to Avanex
Network PFC Already transferred to CPT to be included within the sale to Avanex
Network 24-port 100FX MT-RJ Already transferred to CPT to be included within the sale to Avanex
Network 24-port 100FX MT-RJ Already transferred to CPT to be included within the sale to Avanex
Network 24-port 100FX MT-RJ Already transferred to CPT to be included within the sale to Avanex
Network 24-port 100FX MT-RJ Already transferred to CPT to be included within the sale to Avanex
Network 9-slot chassis Already transferred to CPT to be included within the sale to Avanex
Network Power Supply Already transferred to CPT to be included within the sale to Avanex
Network Power Supply Already transferred to CPT to be included within the sale to Avanex
Network Sup Already transferred to CPT to be included within the sale to Avanex
Network PFC Already transferred to CPT to be included within the sale to Avanex
Network 24-port 100FX MT-RJ Already transferred to CPT to be included within the sale to Avanex
Network 24-port 100FX MT-RJ Already transferred to CPT to be included within the sale to Avanex
Network 24-port 100FX MT-RJ Already transferred to CPT to be included within the sale to Avanex
Network 24-port 100FX MT-RJ Already transferred to CPT to be included within the sale to Avanex
Network 24-port 100FX MT-RJ Already transferred to CPT to be included within the sale to Avanex
Network Phone PTD_97 NETWORK/PHONE EQPT Will be transferred to CPT to be included within the sale to Avanex
Network Phone EPP NETWORK EXPANSION Will be transferred to CPT to be included within the sale to Avanex
Midrange(PT41)(4100) MES (Promis) Will be transferred to CPT to be included within the sale to Avanex
Midrange(PT109)(4100) MES (Pathworks) Will be transferred to CPT to be included within the sale to Avanex
Midrange(SW800)(Disk Cab) MES (Promis) Will be transferred to CPT to be included within the sale to Avanex
Midrange(2 GS-80) Shutdown Will be transferred to CPT to be included within the sale to Avanex
Midrange(6 FiberChannel
SAN cabinets) Shutdown Will be transferred to CPT to be included within the sale to Avanex
Midrange(Star Coupler) MES (Promis) Will be transferred to CPT to be included within the sale to Avanex
4
EXHIBIT A-4 (CONTINUED)
ASSET TYPE FUNCTION COMMENTS
------------------------- ------------------------------ --------------------------------------------------------------------
Midrange(SW800)(Disk Cab) MES (Promis) Will be transferred to CPT to be included within the sale to Avanex
Midrange(UPS) Shutdown Will be transferred to CPT to be included within the sale to Avanex
Intel Server(Aftershock) Scientific research Already transferred to CPT to be included within the sale to Avanex
Intel Server(Dustorm) Scientific research Already transferred to CPT to be included within the sale to Avanex
Intel Server(Earthquake) Scientific research Already transferred to CPT to be included within the sale to Avanex
Intel Server(Hardrain) Scientific research Already transferred to CPT to be included within the sale to Avanex
5
Exhibit A-5
Contracts Administered by Sublandlord, Costs reimbursed by Subtenant
METHODOLOGY
-----------
DESCRIPTION OF CONTACT AMOUNT OF ACCOUNT TO BE SERVICE AVANEX VIA PLANT OCCUPANT
VENDOR WORK PERSON XXXXX XX # XXX # XX # XX XXXXXXX TO DATE OWNER DIRECT CPM COMMENTS RESPONSIBILITIES
------------------------------------------------------------------------------------------------------------------------------------
TECH.- weekly testing
4/1/13 duration/ frequency
to verification through
[*] Generators [*] [*] [*] [*] [*] [*] 3/31/04 [*] [*] Metasys histories,
visual inspections,
CPM lamp tests
------------------------------------------------------------------------------------------------------------------------------------
Weekly SME audits
of riser pressures,
P.I.V. valve
Plant positions.
[*] Sprinkler [*] [*] [*] [*] [*] [*] 6/1/03- [*] [*] Tech. Files
Sys. 5/31/04 inspection reports,
impairment reports to
CPM Risk Logic
------------------------------------------------------------------------------------------------------------------------------------
SME- Daily SME
4/1/03 to audits of
to delivery
[*] Compressors [*] [*] [*] [*] [*] [*] 4/1/04 [*] [*] pressures, oil
level, run and
CPM [*] load hrs.
------------------------------------------------------------------------------------------------------------------------------------
SME-collection
[*] Central Vac. [*] [*] [*] [*] [*] [*] Blanket [*] [*] system emptied
WO. CPM weekly
------------------------------------------------------------------------------------------------------------------------------------
TECH.- supervise
completion of
twice-monthly
P.M. task
6/1/02 schedules,
Environmental to coordinate
[*] Controls [*] [*] [*] [*] [*] 5/31/03 [*] [*] programming
changes,
hardware repairs,
maintenance,
CPM track by work order
------------------------------------------------------------------------------------------------------------------------------------
TECH- perform
[*] Kitchen Repair [*] [*] [*] [*] [*] [*] Blanket [*] [*] low-level
WO. CPM repairs
------------------------------------------------------------------------------------------------------------------------------------
[*] Certain information on this page has been omitted and filed separately with
the Commission. Confidential treatment has been requested with respect to the
omitted portions.
1
Exhibit A-5 (continued)
METHODOLOGY
-----------
DESCRIPTION OF CONTACT AMOUNT OF ACCOUNT TO BE SERVICE AVANEX VIA PLANT OCCUPANT
VENDOR WORK PERSON XXXXX XX # XXX # XX # XX XXXXXXX TO DATE OWNER DIRECT CPM COMMENTS RESPONSIBILITIES
------------------------------------------------------------------------------------------------------------------------------------
TECH. OR
SME-perform
daily U.V.
system audits,
Chemical pressure-wash
Maint. of [*] [*] [*] [*] [*] [*] 12/31/02- [*] [*] filter banks,
[*] Cooling Tower 12/31/03 verify lamp
& Boilers operation,
Ultraviolet
intensities,
CPM [*] conductivity, etc.
------------------------------------------------------------------------------------------------------------------------------------
TECH.-
coordinate
events,
Critical activities,
Component 5/10/03 safety
[*] Electrical [*] [*] [*] [*] [*] [*] to [*] [*] training,
Maintenance 5/10/04 orient
contractor,
track by work
CPM [*] order
------------------------------------------------------------------------------------------------------------------------------------
TECH. AND SME
perform minor
repairs,
Overhead adjustments,
Doors. Dock For Year assist
[*] levelers, [*] [*] [*] [*] [*] [*] 2003 [*] [*] contractor to
Dock Locks accomplish PMs
and repairs,
track by work
CPM [*] order
------------------------------------------------------------------------------------------------------------------------------------
TECH.-manage
[*] Pest Control [*] [*] [*] [*] [*] [*] For Year [*] [*] customer
2003 CPM complaints
------------------------------------------------------------------------------------------------------------------------------------
[*] Sewers & [*] [*] [*] [*] [*] [*] Blanket [*] [*]
Drains Work WO. CPM
------------------------------------------------------------------------------------------------------------------------------------
[*] Certain information on this page has been omitted and filed separately with
the Commission. Confidential treatment has been requested with respect to the
omitted portions.
2
TECH.- schedule
inspections,
assist
contractor
February activities,
[*] Fire/Security 2003 to coordinate
Systems [*] [*] [*] [*] [*] January [*] [*] improvements,
31, 2004 additions,
file inspection
certificates,
impairment
CPM [*] reports to Risk
Logic, track by
work order
------------------------------------------------------------------------------------------------------------------------------------
SME assist
[*] Elevator 3/1/2003 maintenance
Maint. [*] [*] [*] [*] [*] to [*] [*] events,
3/1/2004 inspections,
track by work
CPM order
------------------------------------------------------------------------------------------------------------------------------------
TECH./SME-
coordinate
maintenance
schedules,
events,
activities,
safety
training,
orient
contractor to
accomplish
tasks, track by
HVAC, Boiler, work order.
Pump, Water For Year Perform daily/
[*] Softener, [*] [*] [*] [*] [*] [*] 2003 [*] [*] monthly
Chiller Maint. equipment
inspections
internally.
Verify
equipment
operation,
report
deficiencies,
anomalies.
Accompany
contractor
during rooftop
CPM activities.
------------------------------------------------------------------------------------------------------------------------------------
[*] Consumptive [*] [*] [*]
Water Permit CPM [*]
------------------------------------------------------------------------------------------------------------------------------------
[*] Certain information on this page has been omitted and filed separately with
the Commission. Confidential treatment has been requested with respect to the
omitted portions.
3
EXHIBIT A-6
SUBTENANT RESPONSIBILITIES
OPERATIONAL COSTS, REPAIR AND MAINTENANCE SERVICE CONTRACTS
METHODOLOGY
-----------
DESCRIPTION CONTACT PHONE AMOUNT ACCOUNT TO BE SERVICE AVANEX VIA PLANT OCCUPANT
VENDOR OF WORK PERSON NO # REQ.# PO # OF PO CHARGED TO DATE OWNER DIRECT CPM COMMENTS RESPONSIBILITIES
------------------------------------------------------------------------------------------------------------------------------------
TECH- daily system
12/17/01 operation monitoring
to by keypad, alarms
[*] UPS (3160) [*] [*] [*] [*] [*] [*] 12/16/03 CPM [*] [*] [*] tied to Metasys
------------------------------------------------------------------------------------------------------------------------------------
TECH.- daily system
operation monitoring
8/10/01 by keypad, alarms
[*] UPS (3100) [*] [*] [*] [*] [*] [*] to 8/09/03 CPM [*] [*] [*] tied to Metasys
-----------------------------------------------------------------------------------------------------------------------------------
TECH.- daily system
operation monitoring
by keypad,
1/1/01 to UNMONITORED by
[*] FE 10 KVA [*] [*] [*] [*] 1/1/04 CPM [*] [*] [*] Metasys
------------------------------------------------------------------------------------------------------------------------------------
Storage
[*] Trailers [*] Avanex [*] [*]
------------------------------------------------------------------------------------------------------------------------------------
Vibration
[*] Analysis [*] [*] [*] [*] n/a Avanex [*] [*]
------------------------------------------------------------------------------------------------------------------------------------
TECH.- prepare and
ship, record as
PPE needed, track by
[*] testing [*] Avanex [*] [*] work order
------------------------------------------------------------------------------------------------------------------------------------
Equip /
[*] Office Moves [*] [*] Avanex [*] [*]
------------------------------------------------------------------------------------------------------------------------------------
Offsite 2/1/03 to
[*] Storage [*] [*] [*] [*] [*] [*] 6/30/03 Avanex [*] [*] [*]
------------------------------------------------------------------------------------------------------------------------------------
Process SME- Daily pressure/
[*] Gases [*] [*] Avanex [*] [*] level audits
------------------------------------------------------------------------------------------------------------------------------------
Monthly meter resets
by TECH., daily
meter readings by
SME, consumption
Gas / reductions
Elect Blanket programmed through
[*] Utilities [*] [*] [*] [*] [*] [*] WO. CPM [*] [*] Metasys
------------------------------------------------------------------------------------------------------------------------------------
[*] Piping [*] [*] [*] Blanket
WO. Avanex [*] [*]
------------------------------------------------------------------------------------------------------------------------------------
[*] Electric [*] [*] [*]
Contractor Avanex
------------------------------------------------------------------------------------------------------------------------------------
Fork Truck,
Yale 5-year,Blanket SME-perform operator
ERP030TGN3 P.O. Avanex [*] [*] inspections
[*] 6TE078 [*] [*] [*] [*]
------------------------------------------------------------------------------------------------------------------------------------
Fork Lifts
[*] / Racks [*] [*] [*] [*] [*] [*] Blanket P.O. Avanex [*] [*]
------------------------------------------------------------------------------------------------------------------------------------
[*] Certain information on this page has been omitted and filed separately with
the Commission. Confidential treatment has been requested with respect to the
omitted portions.
1
EXHIBIT A-6 (CONTINUED)
METHODOLOGY
-----------
DESCRIPTION CONTACT PHONE AMOUNT OF ACCOUNT TO BE SERVICE AVANEX VIA PLANT OCCUPANT
VENDOR OF WORK PERSON NO# REQ.# PO # PO CHARGED TO DATE OWNER DIRECT CPM COMMENTS RESPONSIBILITIES
------------------------------------------------------------------------------------------------------------------------------------
Office
[*] Furniture /
Moves [*] [*] Avanex [*] [*]
------------------------------------------------------------------------------------------------------------------------------------
3/1/03 to
[*] Custodial [*] [*] [*] [*] [*] 12/31/03 Avanex [*] [*] [*]
------------------------------------------------------------------------------------------------------------------------------------
Inside
Plant
Maint./Landsc 7/17/00 to
[*] aping/Lawn [*] [*] [*] [*] [*] [*] 7/17/01 Avanex [*] [*]
------------------------------------------------------------------------------------------------------------------------------------
SME- Unload, transport
salt with forktruck,
fill system, monitor
inventories, notify
Blanket tech. at reorder time,
[*] Solar Salt [*] [*] [*] [*] [*] [*] WO. Avanex [*] [*] [*] track by work order
------------------------------------------------------------------------------------------------------------------------------------
Perform emergency
treating of
Jiffy Melt Blanket walkways, track by
[*] Salt [*] [*] [*] [*] [*] [*] WO. Avanex [*] [*] work order
------------------------------------------------------------------------------------------------------------------------------------
Waste
[*] Removal [*] Avanex [*] [*]
------------------------------------------------------------------------------------------------------------------------------------
[*] Metal Waste [*] Avanex [*] [*]
------------------------------------------------------------------------------------------------------------------------------------
[*] Contractor [*] [*] [*] Avanex [*] [*]
------------------------------------------------------------------------------------------------------------------------------------
Corrugated
[*] Waste [*] [*] [*] [*] Avanex [*] [*]
------------------------------------------------------------------------------------------------------------------------------------
Non-Haz.
Waste Blanket
[*] Removal [*] [*] [*] [*] [*] [*] WO. Avanex [*] [*]
------------------------------------------------------------------------------------------------------------------------------------
Janitorial
[*] Supplies [*] [*] Avanex [*] [*]
------------------------------------------------------------------------------------------------------------------------------------
Engineering
[*] Services [*] [*] Avanex [*] [*]
------------------------------------------------------------------------------------------------------------------------------------
External
grounds
[*] maintenance [*] [*] [*] Blanket Avanex [*] [*] [*]
------------------------------------------------------------------------------------------------------------------------------------
Snow
[*] Removal [*] [*] [*] Blanket Avanex [*] [*] [*]
------------------------------------------------------------------------------------------------------------------------------------
[*] Certain information on this page has been omitted and filed separately with
the Commission. Confidential treatment has been requested with respect to the
omitted portions.
2
EXHIBIT B
OPTION TO RENEW SUBLEASE
X. Xxxxx of Option: Sublandlord hereby grants to Subtenant two (2)
option(s) (the "Option(s)") to extend the term of this Sublease, each for an
additional term of two (2) years, commencing when the then-existing term
expires, upon the terms and conditions set forth in this Exhibit.
B. Exercise of Option: Subtenant may exercise such option by giving
Sublandlord written notice of its intention not less than one hundred eighty
(180) days prior to the expiration of the then-existing term of this Sublease.
C. Extended Term Rent: If this Option is exercised, the basic rent for the
Demised Premises shall become the then current fair market monthly rent ("Fair
Market Rent") for the Demised Premises as of the commencement date of the
applicable extended term, as determined by the agreement of the parties or, if
the parties cannot agree within sixty (60) days prior to the commencement of
such extended term, then by an appraisal. All other terms and conditions
contained in the Sublease, as the same may be amended from time to time by the
parties in accordance with the provisions of the Sublease, shall remain in full
force and effect and shall apply during the Option term.
D. Appraisal: If it becomes necessary to determine the fair market rental
value for the Demised Premises by appraisal, real estate appraiser(s), all of
whom shall be members of the American Institute of Real Estate Appraisers and
who have at least five (5) years experience appraising office space located in
the vicinity of the Demised Premises shall be appointed and shall act in
accordance with the following procedures:
(i) If the parties are unable to agree on the Fair Market Rent within the
allowed time, either party may demand an appraisal by giving written notice to
the other party, which demand to be effective must state the name, address and
qualifications of an appraiser selected by the party demanding an appraisal (the
"Notifying Party"). Within ten (10) days following the Notifying Party's
appraisal demand, the other party (the "Non-Notifying Party") shall either
approve the appraiser selected by the notifying party or select a second
properly qualified appraiser by giving written notice of the name, address and
qualification of said appraiser to the Notifying Party. If the Non-Notifying
Party fails to select an appraiser within the ten (10) day period, the appraiser
selected by the Notifying Party shall be deemed selected by both parties and no
other appraiser shall be selected. If two appraisers are selected, they shall
select a third appropriately qualified appraiser. If the two appraisers fail to
select a third qualified appraiser, the third appraiser shall be appointed by
the then presiding judge of the county where the Demised Premises are located
upon application by either party.
(ii) If only one appraiser is selected, that appraiser shall notify the
parties in simple letter form of its determination of the Fair Market Rent for
the Demised Premises within thirty (30) days following his selection, which
appraisal shall be conclusively determinative and binding on the parties as the
appraised Fair Market Rent.
(iii) If multiple appraisers are selected, the appraisers shall meet not
later than twenty (20) days following the selection of the last appraiser. At
such meeting the appraisers shall attempt to determine the Fair Market Rent for
the Demised Premises as of the commencement date of the extended term by the
agreement of at least two (2) of the appraisers.
1
(iv) If two (2) or more of the appraisers agree on the Fair Market Rent for
the Demised Premises at the initial meeting, such agreement shall be
determinative and binding upon the parties hereto and the agreeing appraisers
shall, in simple letter form executed by the agreeing appraisers, forthwith
notify both Sublandlord and Subtenant of the amount set by such agreement. If
multiple appraisers are selected and two (2) appraisers are unable to agree on
the Fair Market Rent for the Demised Premises, all appraisers shall submit to
Sublandlord and Subtenant an independent appraisal of the Fair Market Rent for
the Demised Premises in simple letter form within twenty (20) days following
appointment of the final appraiser. The parties shall then determine the Fair
Market Rent for the Demised Premises by averaging the appraisals; provided that
any high or low appraisal, differing from the middle appraisal by more than ten
percent (10%) of the middle appraisal, shall be disregarded in calculating the
average.
(v) The appraisers' determination of Fair Market Rent shall be based on
rental of space of the same age, construction, size and location as the Demised
Premises with the improvements installed therein at Sublandlord's expense and
shall take into account Subtenant's obligations to pay additional rent under
this Sublease. In determining Fair Market Rent, the appraisers shall not
consider any alterations installed in the Demised Premises at Subtenant's
expense.
(vi) If only one appraiser is selected, then each party shall pay one-half
of the fees and expenses of that appraiser. If three appraisers are selected,
each party shall bear the fees and expenses of the appraiser it selects and
one-half of the fees and expenses of the third appraiser.
2
EXHIBIT C
CULINARY SERVICES
OPERATIONS
- Culinary Services is responsible for purchasing and maintaining all small
wears, food products, supplies and temporary labor.
- Utilities and refuse removal will be provided by Avanex.
- During the duration of this agreement, Culinary Services will have
exclusive use of all food service equipment. In the event that this
agreement is cancelled, discussions between Avanex and Corning will take
place to determine use of equipment.
- Culinary Services will provide service of a well balanced, wholesome and
nourishing menu:
- Sample menu attached
- Hours of operation 7 a.m. - 2 p.m. (Mon - Fri)
- Culinary Services will provide a continental breakfast along with hot
breakfast sandwiches (grab n go) from 7a.m. - 10 a.m. (Mon - Fri)
- Culinary Services will provide daily lunch specials from 10:30 a.m. - 1:30
p.m. (Mon - Fri) which include:
- Soup, Salad Bar, Hot Entrees, Deli, Pizza, Grill Items (Grab n
Go), Desserts, Assorted Beverages
- Culinary Services will manage vending services with commission to be
credited.
CATERING
- Catering will be provided by Culinary Services to Avanex at cost.
SANITATION
- Culinary Services will comply with all requirements of the NYS Department
of Health
- Culinary Services will comply with all OSHA requirements.
- Culinary Services will utilize a third-party sanitation/safety auditing
service (Steritech), to ensure compliance of all food safety and sanitation
regulations.
PEOPLE
- Culinary Services will employ and train all food service employees at an
adequate level to operate the food service operation, and to maintain the
level of expectations.
FINANCIALS
- Based on current program and staffing our projected annual subsidy is $[*].
- THIS NUMBER INCLUDES:
- (1) Corning Incorporated Employee - Salary & Benefits
- (2) Contract employees
- Purchase of food and beverages
- Credited vending commissions
- Register receipts
- All other miscellaneous expenses associated with the operation
- All cost associated with the Avanex operation will be tracked separately by
Culinary Services and included in the P&L summary.
- Culinary will invoice Avanex on a monthly basis for any net loss.
[*] Certain information on this page has been omitted and filed separately with
the Commission. Confidential treatment has been requested with respect to the
omitted portions.
1
EXHIBIT D
SECURITY SERVICES
Service Level Agreement
Corning Incorporated Security Operations
Avanex
July 7, 2003
Restricted
Corning Security Operations will provide essential security services to Avanex
for access control and alarm monitoring, technical security systems maintenance,
lockshop services, central security services, and security officer staffing.
BUDGET
- Charges for Corning Security services for the first six (6) months will be
$[*] per period. Thereafter, charges will be adjusted to $[*] per period
for the remaining 2004 fiscal year.
ACCESS CONTROL / ALARM MONITORING SERVICES
- Avanex will be provided a separate access control system that will be
administrated by the Corning Security Operations System Administrator.
- The Host will be administered by the Corning Security Operations
Systems Administrator.
- Avanex will pay for all associated licensing fees.
- Security system workstations will be positioned at Corning Central
Security and at the Avanex Xxxxx facility.
- Access history reports will have a defined approval path through
the assigned Security Operations supervisor.
- Proximity Card Technology
- Card stock will be ordered from Motorola by Corning Security
Operations.
- The proximity card technology will drive the E-Labor process for
Avanex employees.
- Initial Avanex Employee Badging Process for the EPP Location Only
- Corning Security will build the Avanex badge template.
- Badging the Avanex employees will be a 2-3 week process.
- Corning will badge all Avanex employees during the initial badge
production process for $[*]. Thereafter, lost or broken badges will
be replaced free of charge. However, new badge requests will be
charged at the rate of $[*] per badge, after the badge project is
complete.
- A digital camera provided by Avanex will be utilized, on site,
after the initial badging project for all subsequent badge
requirements.
- Initial badge equipment issue will include a standard badge clip.
- Additional badge accessories will be purchased by Avanex.
- Any changes to the badge design after the initial badging project
will result in an additional project cost.
[*] Certain information on this page has been omitted and filed separately with
the Commission. Confidential treatment has been requested with respect to the
omitted portions.
- Initial Badging Timeline
- July 2nd - Reserve room in the EPP Facility, set up equipment.
- Wk. of July 7th - Plant communications and sign-up.
- Wk. of July 14th - On-site badging begins.
- Monday through Wednesday (7/14 - 7/16) Badge Room hours: 8am -
5pm
- Thursday (7/17) Badge Room hours: 7am- 3:30pm
- Friday (7/18) Badge Room hours: 7am - 3:30pm
- July 21st Badge Room hours: 8am-4pm to do catch-up badging for
those who may have missed their scheduled appointment. July 21st
will be the last day Security Operations provides "in-plant"
badging.
- Estimated Costs
- Server Set-Up Fee - $[*]
- Initial Badging - $[*]
- Server Back-Up and Maintenance- $[*]
TECHNICAL SECURITY SYSTEMS MAINTENANCE
- Routine maintenance of the current configurations for access control, alarm
monitoring, and CCTV systems is included in the annualized charges.
- Any costs created by Avanex customer-driven project(s), expansion(s),
change(s), including new devices, must be paid to Corning using normal
charge-out rates. This includes accidental and deliberate destruction
of Corning equipment.
- Digital video history reports/requests will have a defined approval
path through the assigned Security Operations supervisor.
LOCKSHOP
- Routine maintenance for all existing BEST cores will be provided.
- Any costs created by Avanex customer-driven project(s), expansion(s),
change(s), including new devices must be paid to Corning at an hourly rate
of $[*]. This includes accidental and deliberate destruction of Corning
equipment.
- There will be no support provided for furniture keys.
- Two new keys will be provided for each newly installed core; broken or lost
keys will be replaced at the rate of $[*] per key.
CENTRAL SECURITY SERVICES
- Will provide:
- 24X7 alarm monitoring and access control support.
- Emergency dispatch and response to the Avanex Xxxxx facility.
- [*] emergency number will be maintained until Corning IT Services
provides a new prefix.
Priority alarms monitored will be:
- Fire, Medical, and Perimeter alarms.
- Employee abuse of security detection systems may result in increased
charges by Corning to Avanex.
- Will not provide:
- Central Security will not be responsible for Avanex employee phone
transfers.
- Corning Security will not provide vehicle unlock or vehicle jump-start
services.
- Production / Process Alarms are NOT included in the scope.
[*] Certain information on this page has been omitted and filed separately with
the Commission. Confidential treatment has been requested with respect to the
omitted portions.
2
- Methods of medical transport will be:
- Major Medical - via ambulance.
- Minor Medical - via personal owned vehicle or cab.
SECURITY OFFICER SERVICES
Will provide:
- Contingent employees will be provided by Corning Security Operations to
accommodate 24X7 staffing.
- Staffing will consist of 168 regularly scheduled hours per week.
- Officers will be state licensed and trained in Basic First Aid and
Defibrillator use.
- Security officer services will be strictly security related and managed by
Corning Security supervision.
- Uniforms will be provided by Corning Security and will remain consistent
with Corning standards.
- Facility-mandated training beyond the scope required by Corning Security
Operations will be paid for by Avanex - this will include incurred overtime
as well.
- Avanex will pay for security requirements beyond the normal security
schedule (i.e.: social functions, special projects etc.) at an hourly rate
of $[*].
- Proprietary replacements for emergent / last-minute notifications will be
billed at an hourly rate of $[*] (for Non-Holiday scheduling).
- There will be two cross-trained contingents. Cross-training will be billed
at the hourly rate of $[*]. Training time will take two weeks per person.
- Routine alarm monitoring will be conducted by the on-site security
officer(s).
Will not provide:
- Reception / Administrative breaks.
- Paycheck distribution.
- Managing recognition systems.
- Facility support work such as:
- snow removal
- mail sorting
- receiving dock management
- Corning Security will not provide vehicle unlock or vehicle jump-start
services.
- Investigative follow-up services, post initial Security response, unless
specifically requested by Avanex in writing, and agreed upon by Corning
Corporate Security. Thereafter, Avanex will be billed at the hourly rate of
$[*]. Travel expenses, if incurred outside the Corning, NY area, will also
be paid by Avanex. Such investigations will be directed by Corning
Corporate Security with the resolutions/findings formally reported back to
Avanex.
[*] Certain information on this page has been omitted and filed separately with
the Commission. Confidential treatment has been requested with respect to the
omitted portions.
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