000 XXXX XXXXXXXXX XXXXXX
LEASE EXTENSION
1997
This Lease Extension is entered into in Santa Barbara, California, by and
between J. Xxxxxxx Xxxxxx ("Landlord") and Veeco Instruments, Inc., a Delaware
corporation ("Tenant").
Background:
a. This is an extension of a lease dated July 1993, originally between
Lambda (Santa Xxxxxxx) Inc. as Landlord and Veeco Instruments, Inc. as Tenant,
for property at 000 Xxxx Xxxxxxxxx Xxxxxx, Xxxxx Xxxxxxx, Xxxxxxxxxx.
Landlord and Tenant both wish to extend the lease, with certain revised
terms and conditions as set forth below.
1. Existing Lease Terms. The parties hereby confirm the existing lease
terms as entered into by themselves or their predecessors in interest, as set
forth in the attached copies:
a. Original Lease, dated July 1993, referred to above.
b. Lease Renewal, dated July 1993, extending the Lease to June 30,
1997.
c. Lease Renewal, undated, extending lease term to June 30, 1998.
Except as modified below, such agreement shall apply between the parties
to this Lease Extension.
2. Term. The term of the Lease shall be extended to June 30, 2003.
3. Rent.
3.1 Base Rent. Base rent shall increase as of July 1, 1998 to Twenty
Nine Thousand One Hundred Forty Dollars and Ten Cents ($29,140.10) per month,
payable in advance on the first day of the calendar month.
The current rent, through June 30, 1998, is Twenty Eight Thousand
Nineteen Dollars and Thirty Three Cents ($28,019.33) per month.
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3.2 Additional Rent. In addition to the Base Rent provided for in
Paragraph 3.1 above, Tenant shall pay to Landlord all operating expenses
associated with the Premises. "Operating Expenses" include, but are not limited
to, the following costs associated with the Premises: Real and personal property
taxes, maintenance and repair costs, insurance premiums for all risk and
earthquake coverage on the improvements and for public liability insurance, and
the cost of all utilities.
4. Base Rent Adjustment. The Base Rent shall be increased annually
throughout the term of the Lease. The annual increase shall be the greater of
(a) the increase in CPI as determined below or (b) four percent (4%). The first
such adjustment shall be made on July 1, 1999.
The CPI computation shall be based on the Consumer Price Index for
Urban Wage Earners and Clerical Workers Los Angeles/Anaheim/Riverside Area
Average, Subgroup "All Items", 1982-1984 = 100. The base CPI shall be the CPI as
of July, 1, 1998.
5. Security Deposit. The security deposit shall be $29,941. The security
deposit shall be increased annually so that the security deposit on hand is
always equal to the current monthly rent then applicable.
6. Use. The Premises shall be used and occupied only for general office,
manufacturing and assembly consistent with current zoning.
7. Condition of the Property. Tenant accepts the Property in its condition
as of the execution of this Lease Extension.
8. Obligations of Landlord and Tenant.
8.1 Landlord shall maintain the foundations and structural portions
of the building.
8.2 Tenant shall perform all other building and common area
maintenance and repairs including roof, utilities, real estate taxes and
insurance.
9. Additional Terms.
9.1 Landlord agrees to pave the vacant land area adjacent to the
building and stripe for additional Tenant parking within thirty (30) days after
Tenant's execution of this Lease Extension.
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9.2 Landlord shall provide to Tenant an allowance of up to Fifty
Thousand Dollars ($50,000) for actual third party costs incurred by Tenant
toward replacement of carpeting and paint on interior of entry and office space,
subject to Landlord's reasonable approval. Tenant shall submit a proposal to
Landlord, with bids, for Landlord's advance written approval as to cost and
quality, which shall not be unreasonably withheld.
9.3 Tenant shall have the right to sublet the Premises subject to
Landlord's reasonable approval.
10. Broker Representation. The parties acknowledge that Pacifica
Commercial Realty ("Broker") represents the Landlord.
11. Broker Participation. The parties warrant to Broker and to each other
that they have dealt with no real estate Broker in connection with this
transaction other than Pacifica Commercial Realty, and that no other Broker is
entitled to any commission on account of this Proposal.
12. Miscellaneous. Tenant does not have any options to extend this Lease.
IN WITNESS WHEREOF, the parties have signed this Lease Extension as of
November 1, 1997.
/s/ Xxxxxxx Xxxxxx
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J. Xxxxxxx Xxxxxx
TENANT:
Veeco Instruments, Inc.,
a Delaware corporation
By: /s/ Xxxx X. Xxxx, Xx.
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