EXHIBIT 10.29
AMENDMENT TO STANDARD INDUSTRIAL/COMMERCIAL SINGLE-TENANT
LEASE - NET,
BETWEEN
THE XXXXXX FAMILY TRUST
AND
DIGITAL THEATER SYSTEMS, INC.
This amendment (First Amendment), effective as of the date of the last
party to sign hereto, is made and entered into by and between the Xxxxxx Family
Trust (hereinafter "Lessor") and Digital Theater Systems, Inc. (hereinafter
"Lessee").
WHEREAS, Lessor and Lessee entered into a Standard
Industrial/Commercial Single Tenant Lease-Net (hereinafter "Lease") on September
8, 1997 for the lease of Lessor's Premises located at 0000 Xxxxxxxx Xxxxx,
Xxxxxx Xxxxx, Xxxxxxxxxx 00000 (hereinafter the "Premises"); and
WHEREAS, on April 2, 2002, Lessee exercised it option to extend the
term of the Lease by an additional five (5) years with the Lease expiring on
October 31, 2007; and
WHEREAS, Lessor and Lessee hereby wish to amend the Lease to provide
Lessee with: (i) two (2) additional options to extend the Lease on the Premises
for an additional sixty (60) months each and (ii) a Right of First Refusal to
Purchase the Premises.
NOW, THEREFORE, the parties hereto mutually agree as follows:
1. Paragraph 1.12 of the Lease is hereby amended and restated in
its entirety to read as follows:
1.12 ADDENDA AND EXHIBITS. Attached hereto is the First Amendment
consisting of Paragraphs 50 through 63, all of which
constitute a part of this Lease.
2. The first full paragraph of Paragraph 51 of the Lease is
hereby amended and restated in its entirety to read as follows:
A. OPTION(S) TO EXTEND
Provided that Lessee is not in breach of any term or condition
of the Lease, Xxxxxx xxxxx grants to Lessee the option to extend the term of
this Lease for three (3) additional sixty (60)
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month periods(s) commencing when the prior term expires upon each and all of the
following terms and conditions:
3. Paragraph 51 A (iv) i. (a) of the Lease is hereby amended and
restated in its entirety to read as follows:
(a) On October 1, 2003, April 1, 2005, October 1, 2006, April 1,
2008, October 1, 2009, April 1, 2011, October 1, 2012, April 1, 2014, October 1,
20015 and April 1, 2017, the monthly rent payable under paragraph 1.5 ("Base
Rent") of the attached Lease shall be adjusted by the change, if any, from the
Base Month specified below, in the Consumer Price Index of the Bureau of Labor
Statistics of the US Department of Labor for (Urban Wage Earners and Clerical
Workers) for Los Angeles, Riverside, Orange County California. All Items
(1982-84 = 100), herein referred to as "C.P.I." Notwithstanding the foregoing,
in no event shall the adjusted Base Rent be less than a three percent (3%) per
annum increase, nor greater than a five percent (5%) per annum increase above
the Base Rent then in effect at the time of the adjustment. The sum so
calculated shall be the new Base Rent until the next adjustment in Base Rent.
Should the Bureau of Labor Statistics discontinue the publication of the Index
or publish the same less frequently, or alter the same in some other manner,
Lessor and Lessee shall adopt a mutually acceptable substitute index or
procedure, which reasonably reflects consumer price increases.
4. Add a Paragraph 63 to the Lease that will read as follows:
63. RIGHT OF FIRST REFUSAL. Lessor shall not, at any time prior to
the expiration of the term of this Lease, sell the Premises, or any interest
therein, without first giving written notice to Lessee. This Notice of Sale
shall include the exact and complete terms of the proposed sale and shall have
attached thereto a copy of the bona fide offer and counter offer duly executed
by the Lessor and prospective purchaser. Lessee shall then have ten (10)
business days to give written notice to Lessor of Lessee's exercise of Lessee's
right to purchase the Premises, on the same terms, price and conditions set
forth in the Notice of Sale. If Lessee declines to exercise its Right of First
Refusal and the terms and conditions of the offer are modified by more than five
percent (5%), or if there is a material change in any seller financing offered,
or in the event that the sale is not consummated within 180 days of the date of
the Notice of Sale, then Lessee's right of first refusal shall reapply to said
transaction.
5. This First Amendment does not delete, terminate or replace any
provision of Lease except as specifically provided herein.
6. All capitalized terms not otherwise defined in this First
Amendment shall have the meaning as specified in the Lease.
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IN WITNESS WHEREOF the parties hereto, through their authorized agents,
have executed this First Amendment to be effective as of the date first written
above.
XXXXXX FAMILY TRUST DIGITAL THEATER SYSTEMS, INC.
(LESSOR) (DTS) (LESSEE)
By: /s/ Xxxxx Xxxxxx By: /s. Xxx Xxxxxxxx
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Name: Xxxxx Xxxxxx Name: Xxx Xxxxxxxx
Title: Lessor/Owner Title: President, Chief Executive Officer
Date: 11-18-2002 Date: 10/29/02
By:________________________________ By: /s/ Xxx Xxxxxxx
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Name:______________________________ Name: Xxx Xxxxxxx
Title: Lessor/Owner Title: Chairman
Date:______________________________ Date:____________________________________
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