CONTRACT TO LEASE
This lease made and entered into this 13th day of April, 1998 by and between
Xxxxxxxxx Development Incorporated with a principal place of business at 0000
Xxxxx 00xx Xxxxxx; City of Quincy; County of Xxxxx; State of Illinois
hereinafter called LESSOR and Spectrian Corporation with a principal place of
business at 000 Xxxx Xxxx Xxxxx; City of Sunnyvale; County of Santa Xxxxx; State
of California hereinafter called the LESSEE.
WITNESSETH
WHEREAS LESSOR is the owner of a building known as 000 Xxxxx Xxxxxx located on
the Southeast corner of Third and Maine Streets, Quincy, Illinois;
WHEREAS LESSEE desires to lease a portion of this building from LESSOR:
NOW THEREFORE in consideration of the rental herein reserved and of the
covenants and conditions hereinafter contained, it is mutually agreed as
follows:
1. Premises - LESSOR hereby leases and demises to LESSEE and LESSEE does hereby
take and accept from LESSOR a portion of 300 Maine described as Suite One and
further described hereinbelow to wit:
The North Two Thousand Seven Hundred Fifty square feet (2,750 sq. ft.)
area (50' x 55') of the Lower Level
as more fully described in Exhibits A and B attached hereto and made a part
hereof hereinafter called the "Premises" TO HAVE AND TO HOLD THE SAME, with
appurtenances, unto the said LESSEE for and during the term and at the rental
hereinafter set forth.
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2. Term - The Original Term of this Lease will be for one (1) year commencing at
the opening of business April 1, 1998 and terminating at the close of business
March 31, 1999 (the expiration date).
3. Option to Renew - LESSOR hereby grants LESSEE one (1) option to renew this
Lease for an additional term of one year commencing at the expiration of the
Original Term upon the same terms and conditions provided herein other than for
an adjustment of rent as set forth herein below. Such renewal option shall be
exercised in writing, delivered to the LESSOR sixty (60) days prior to
expiration of the Original Term or Renewal Term.
4. Rent
a. Original - LESSEE agrees to pay to LESSOR as rental for the demised Premises
during the Original Term of the Lease annually the sum of Thirteen Thousand
Seven Hundred Fifty Dollars ($13,750.00) lawful money of the United State,
payable in twelve (12) equal monthly installments of One Thousand One Hundred
Forty-Five Dollars and Eighty-Three Cents ($1,145.83) in advance on the first
day of each month without demand. Rental payments will be considered delinquent
if not received by LESSOR by the Tenth day of the month and a 5% late charge
shall be added to the monthly rental amount due.
b. Option for the First Renewal Term - LESSEE agrees to pay to LESSOR as rental
for the demised Premises during the First Renewal Term of the Lease annually an
amount equal to the rent paid by LESSEE for the last year of the Original Term
increased by the percentage increase, if any, in the Consumer Price Index, U.S.
City
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Average, Rent Component from the value of such Index for the month of April,
1998, to the value of such Index for the month of March, 1999. Said sum shall be
payable in lawful money of the United States in advance on the first day of each
month without demand.
5. Use - LESSEE shall have the right to occupy and use the Premises for any
lawful purpose within the zoning regulations of the area. No packages, trash or
rubbish, either shipping or receiving, shall be placed or stored in the Entrance
Foyer areas or halls. LESSEE shall have the right to paint a sign identifying
the business name on the interior entrance door or interior window of the
Premises. LESSEE shall be solely responsible for maintaining in good condition
its sign and shall remove it and repair any damage caused by such removal on or
before the Expiration Date of the Original Term or Renewal Term, as applicable.
A directory sign is available on the exterior of the building for placement of a
sign provided by LESSEE. The sign must match the existing signs. Also, a
directory is located at the Main Floor elevator with a listing of building
occupants.
6. Ingress and Egress - LESSOR warrants that access to the Premises shall at all
times be available by concrete or asphalt drive, and a concrete parking lot
shall be available for the building LESSEES' customer parking. Employees of the
building LESSEES' shall utilize municipal parking lots. Delivery trucks shall
park in the spaces at the alley at the south end of the building and will not
enter the main customer parking area.
7. Repairs and Maintenance
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a. LESSEE - LESSEE shall make necessary repairs due to normal usage of interior
and interior equipment such as plumbing fixtures, lighting fixtures, electrical
outlets, and the heating & air conditioning unit maintenance. LESSEE shall
maintain and restore the Premises to the condition of the building when LESSEE
commenced occupancy, and all alterations, additions, or improvements made to or
put upon the Premises shall become the property of the LESSOR and shall remain
upon and be surrendered with the Premises as a part thereof. Notwithstanding
anything aforesaid, LESSEE shall have the right to install and remove from time
to time and at the end or earlier termination of this Lease, LESSEE's trade
fixtures and equipment and business fixtures and equipment, to include, without
limitation, lighting fixtures, office partitions, and furniture. LESSEE shall
promptly repair any damage to the Premises caused by the removal by LESSEE of
any of LESSEE's property therefrom and this covenant shall survive the
expiration or termination of this Lease.
x. XXXXXX - The LESSOR shall maintain and repair the exterior of the building,
its structure, roof, the entrance foyer, elevator, parking lot, landscaping and
utility pipes, wire and lines on the Premises to the point in each case where
LESSEE begins its own use of such utility or service.
8. LESSOR's Right of Access - LESSOR, its agents, servants and employees shall
have the right to enter the Premises during business hours, with reasonable
frequency, and upon reasonable notice for the purpose of inspecting the same to
ascertain whether
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LESSEE is performing the covenants of this Lease, and during business hours or
otherwise in the event of need, under special arrangements with LESSEE for the
purpose of making required repairs, alterations, improvements or additions.
LESSOR shall be allowed to take all material into and upon the Premises that may
be required therefore without the same constituting an eviction of LESSEE in
whole or in part, and, except as otherwise provided, the rent reserved shall in
no way xxxxx while said repairs are being made by reason of reasonable loss or
interruption of the business of LESSEE because of the execution of any such
work. LESSOR agrees to cause as little inconvenience as possible to LESSEE in
connection therewith. During the sixty (60) days preceding the expiration of
this Lease, LESSEE shall permit LESSOR or LESSOR's agents to show the Premises
to prospective tenants with reasonable frequency during business hours on
reasonable notice and to place and keep in one or more conspicuous places upon
the exterior of the Premises, not interfering with LESSEE's use of the Premises,
a notice in the usual form "To Let" and a notice in the usual form "For Sale",
which notices LESSEE shall permit to remain thereon without molestation.
9. Destruction by Fire or Other Causes, Insurance - LESSOR shall provide and
maintain adequate insurance on the Premises against loss or damage by fire,
lightning, tornado or other casualty. LESSEE shall provide all insurance
covering its contents and personalty separately. In the event of damage to or
destruction of the Premises or a portion thereof by fire, or other cause so that
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the Premises cannot in the fair estimate of either party be restored within
sixty (60) days, either party may terminate this Lease by written notice given
thirty (30) days after the event; thereafter neither LESSOR or LESSEE can have
any further rights, duties or obligations under this Lease and rents and other
sums payable by LESSEE for the remainder of the term shall wholly xxxxx. If the
Premises can be restored in sixty (60) working days, LESSOR will undertake
immediately the repair and reconstruction of the Premises at LESSOR's expense
and will complete such work with due and reasonable diligence. During the period
commencing with the date the damage occurred and ending with completion of the
requisite repairs or reconstruction, the rent payable hereunder shall xxxxx and
the obligation of the LESSEE to pay the same shall cease to the extent and in
proportion to the area rendered untenantable by the damage or by the work or
restoration or repair.
10. Liability Insurance - LESSEE shall at all times during the term of this
Lease carry public liability insurance covering the LESSEE's operations, which
insurance shall adequately insure against liability for personal injury or death
and property damage. Current Certificates of Insurance showing evidence of
insurance coverage shall be provided to LESSOR. LESSEE shall indemnify and hold
harmless LESSOR from and against all claims, actions, demands, judgements,
damages, liabilities and expenses suffered by LESSOR including reasonable
attorneys' fees, for death of or bodily injury to any person or for loss of,
damage to or destruction of any property arising on account of any action or
failure to act by
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LESSEE in connection with LESSEE's use of the Premises.
11. Utilities, Taxes - LESSEE shall supply heat for the Premises to maintain an
interior temperature of 34*. LESSEE shall at its own expense pay all charges for
gas, electricity and telephone utilities and services used in connection with
the Premises during the term of this Lease. LESSOR agrees that all such
utilities (including both storm and sanitary sewers) shall be available to the
Premises at the commencement date. LESSOR further covenants and agrees to
provide potable water to the Premises for use by LESSEE and its employees. In
addition, LESSOR shall pay all real estate taxes levied on the Premises.
12. Eminent Domain - If the whole or any part of the Premises shall be taken by
lawful authority for any public or quasi-public use or purpose this Lease shall,
as to the part taken, terminate on the date title shall be acquired, and the
rent reserved shall xxxxx fairly and in proportion to the part so taken and
shall entirely xxxxx if the entire Premises are so taken. In all cases of a
partial taking of the Premises (except a minor street widening not injurious to
the use of the Premises by LESSEE) LESSEE may, at its election, by delivering
written notice to that effect to LESSOR, terminate this Lease and vacate the
Premises, and in that event, the liability of LESSEE for performance of the
Lease shall terminate and come to an end and all rents shall xxxxx.
13. Quiet Enjoyment - LESSOR covenants and agrees that LESSEE shall have the
quiet and peaceful enjoyment and exclusive possession of the Premises during the
term of this Lease.
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14. Covenants - The parties agree that the promises of each to the other
contained herein constitute covenants and conditions to the performance of the
other, and that a breach of one or more of such covenants and conditions shall
constitute a breach of the Lease.
15. Surrender - LESSEE shall quit and surrender the Premises at the expiration
of the term in as good order and condition as they were when LESSEE commenced to
occupancy, ordinary wear and tear, damage by fire, acts of God or other casualty
and repair and replacement obligations defaulted by LESSOR excepted.
16. Notices - Any notice given pursuant to this Lease shall be valid only if
given in writing, and shall be deemed sufficiently given if given by hand
delivery, or by registered or certified mail with sufficient postage attached.
Notices to LESSOR shall be sufficient if given or addressed to the person and
place to or at which payment of rent last preceding the time for notice had been
made and received or to:
Xxxxxxxxx Development Inc.
0000 Xxxxx 00xx Xxxxxx
Xxxxxx, Xxxxxxxx 00000
Notices to LESSEE shall be sufficient if given or addressed to:
Spectrian Corporation
000 Xxxx Xxxx Xxxxx
Xxxxxxxxx, Xxxxxxxxxx 00000
The date of any notice provided for in this Lease shall be the date of deposit
in the U.S. mails with sufficient postage if given by registered or certified
mail, or the date of actual delivery to the above address of the party to be
notified if otherwise given. The person and place to which notice may be given
may be changed from
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time to time by written notice to the other, effective five (5) days after
delivery of such notice.
17. Successors - Covenants and rights herein shall apply to, be binding upon and
inure to the benefit of the parties hereto and their respective successors and
assigns.
18. Headings - Paragraph headings are used herein for identification only and
shall not in any way affect the interpretation of this Lease.
19. Integration - This Lease states the entire agreement between the parties and
replaces all prior and contemporaneous agreements documents and representations
with respect to the subject matter hereof. No alteration, modification,
termination, waiver or release, in whole or in part, shall be effective unless
in writing, signed by a duly authorized representative of each of the parties
hereto or their successors or assigns.
20. Third Party Rights - Nothing in this Lease shall be interpreted as
conferring any rights on any party other than the parties hereto.
IN WITNESS WHEREOF, The parties have hereunto set their hands this 13th day of
April, 1998
XXXXXXXXX DEVELOPMENT INC.
Attest: /s/ Xxxxxx Xxxxxx /s/ Xxx X. Xxxxxxxxxx
------------------------ ----------------------------
Xxxxxx Xxxxxx, Secretary Xxx X. Xxxxxxxxxx, President
SPECTRIAN CORPORATION
Attest: /s/ Xxxxx X. Xxxxxx /s/ Xxxxx X. Xxxxxx
------------------------ ----------------------------
Secretary Chief Financial Officer
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EXHIBIT A
300 MAINE
General Building Specifications
60' x 190' building structure of all steel, flexicore and concrete as follows:
Roof: 24 ga. galvalume standing seam panels insulated with 8"T
fiberglass insulation.
Mansard Fascia: 26 ga. Midnight Bronze painted steel panels.
Exterior Walls: Brick with steel studs, Thermax board backing and
6"T fiberglass insulation between studs.
Windows and Doors: - Exterior windows of 1" insulated glass.
- Exterior and unit entrance doors of 1/4" glass.
- All framing of bronze aluminum framing.
Interior of exterior walls, unit walls and restroom walls: Wall construction of
steel stud, 5/8" firecode drywall, taped and painted with two coats of
latex eggshell paint.
Ceilings: Ceiling height to be 8'. Ceilings to be 2 x 2 suspended
ceilings with white grid.
Floor covering: Entrance corridor to be tiled.
Electric: Electric meter for each leased unit located in Electrical Room.
Lighting provided by 2 x 4 layin fixtures with one switch and duplex outlets.
Telephone hookup available at the Electrical Room.
Heating/Air-Conditioning: Separate heating/cooling systems for each unit.
The second floor will be supplied by roof mounted electric heat pumps.
The main floor and lower level will be supplied by roof split system heat
pumps with the outdoor condensing unit on the roof, the air handling
portion within the suite.
Plumbing: Water provided by city water. 6" sanitary sewer hooked to city sewer.
Public restroom located next to the elevator on the Lower Level.
Leased Premises Suite One Specifications
Carpentry: Interior walls constructed per Exhibit B, painted with two (2)
coats of paint. Suspended ceiling in front 1,370 sq. ft. only.
Plumbing: Restroom to include one (1) water closet. One (1) sink, utility
sink and water heater provided.
Electrical: Lighting provided by 2 x 4 layin fixtures with switches
and duplex outlets installed in the front 1,370 sq. ft. Two tube,
8' fluorescent strip fixtures installed in the 1,380 sq. ft. rear area
Floor Covering: Carpet installed in the front 1,370 sq. ft. office area.
Vinyl tile installed in the rear 1,380 sq. ft. rear area.
Heating/Air Conditioning: Heating and air conditioning provided by electric
roof top air conditioners with thermostats.
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[Graphic of floor plan]
Exhibit B
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