BUILD-TO-SUIT LEASE
BY AND BETWEEN
INHALE 000 XXXXXXXXXX XXXX, X.X.
A CALIFORNIA LIMITED PARTNERSHIP, AS
LANDLORD
AND
INHALE THERAPEUTIC SYSTEMS INC.,
A DELAWARE CORPORATION, AS
TENANT
000 XXXXXXXXXX XXXX
XXX XXXXXX, XX 00000
BUILD-TO-SUIT LEASE
THIS BUILD-TO-SUIT LEASE ("LEASE") is made and entered into as of
September __, 2000 by and between INHALE 000 XXXXXXXXXX XXXX, L.P., a California
limited partnership ("LANDLORD"), and INHALE THERAPEUTIC SYSTEMS INC., a
Delaware corporation ("TENANT").
RECITALS
A. CONTRIBUTION AGREEMENT. Tenant and Landlord entered into that
certain Contribution Agreement dated as of September __, 2000 (the "Contribution
Agreement") pursuant to which, among other things: (i) Tenant agreed to
contribute, and Landlord agreed to accept, inter alia, that certain real
property situated at 000 Xxxxxxxxxx Xxxx, Xxx Xxxxxx, Xxxxxxxxxx, as partially
improved by Tenant (the "REAL PROPERTY"); and (ii) the parties agreed to enter
into this Lease as of the date of closing under the Contribution Agreement. The
Real Property is more particularly described in EXHIBIT A attached hereto and
incorporated herein by this reference.
B. BUILD-TO-SUIT. Pursuant to this Lease and the plans, specifications,
and other documents required hereby, Landlord will construct and/or complete
certain improvements on the Real Property, including (i) two connected
four-story buildings containing an aggregate of approximately 390,000 square
feet, consisting of approximately 171,965 square feet of rentable area and two
lower stories primarily of parking for the foregoing buildings as well as for
adjacent property currently leased and occupied by Contributor located at 000
Xxxxxxxxxx Xxxx; (ii) site improvements; and (iii) certain other improvements.
C. DEFINITIONS. Unless the context otherwise specifies or requires for
the purpose of this Lease, all words and phrases having their initial letters
capitalized herein shall have the meanings set forth below:
AFFILIATE OF TENANT: shall have the meaning assigned in
Section 13.1(b).
APPROVED PLANS: shall have the meaning assigned in Section
1(a) in the Work Letter.
BASE BUILDING WORK: Base Building Work for Building 1, as
defined in Section 1(h) of the Work Letter, and Base
Building Work for Building 2, as defined in Section 1(i)
of the Work Letter.
BUILDING CORES: shall have the meaning assigned in Section
1(j) of the Work Letter.
BUILDING COST: shall have the meaning assigned in Section
18.2.
BUILDING SHELLS: shall have the meaning assigned in Section
1(k) of the Work Letter.
1.
BUILDING 1: shall have the meaning assigned in Section
1.1(a)(ii).
BUILDING 2: shall have the meaning assigned in Section
1.1(a)(ii).
BUILDING 2 SUBSTANTIAL COMPLETION: shall mean the date of
Tenant's receipt of the Certificate of Substantial Completion
of the Base Building Work for Building 2.
BUILDINGS: shall have the meaning assigned in Section 1.1(a).
CERTIFICATE OF SUBSTANTIAL COMPLETION: shall have the meaning
assigned in Section 1(l) of the Work Letter.
COMMON AREAS: shall mean the Interior and Exterior Common
Areas, collectively, as indicated in Section 1.1(a)(x).
COSMETIC ALTERATIONS: shall have the meaning assigned in
Section 9.1.
DATE OF SUBSTANTIAL COMPLETION: shall have the meaning
assigned in Section 1(o) of the Work Letter.
EFFECTIVE DATE: shall have the meaning assigned in Section
2.1.
EXTERIOR COMMON AREAS: shall have the meaning assigned in
Section 1.1(a)(viii).
FAIR MARKET RENTAL: shall have the meaning assigned in Section
3.1(d).
HAZARDOUS MATERIALS: shall have the meaning assigned in
Section 11.4(a).
HVAC: shall have the meaning assigned in Section 7.2(a).
IMPROVEMENTS: shall have the meaning assigned in Section
1.1(a)(vii).
INTERIOR COMMON AREAS: shall have the meaning assigned in
Section 1.1(a)(ix).
LANDLORD: shall have the meaning assigned in the Introduction.
LEASE YEAR: shall have the meaning assigned in Section 7.3.
LEASE: shall have the meaning assigned in the Introduction.
MINIMUM RENTAL: shall have the meaning assigned in Section
3.1(c).
OPERATING EXPENSES: shall have the meaning assigned in Section
7.2(a).
PARKING LEASE: shall have the meaning assigned in Section
1.1(a).
PERMITTED TRANSFER: shall have the meaning assigned in Section
13.1(b).
2.
PHASE 1A: shall have the meaning assigned in Section
1.1(a)(iii).
PHASE 1B: shall have the meaning assigned in Section
1.1(a)(iv).
PHASE 2A: shall have the meaning assigned in Section
1.1(a)(v).
PHASE 2B: shall have the meaning assigned in Section
1.1(a)(vi).
PHASE 1 RENT COMMENCEMENT DATE: shall have the meaning
assigned in Section 3.1(a).
PHASE 2A RENT COMMENCEMENT DATE: shall have the meaning
assigned in Section 3.1(b).
PHASE 2B RENT COMMENCEMENT DATE: shall have the meaning
assigned in Section 3.1(b).
PHASE 2B EXPANSION OPTION: shall have the meaning assigned in
Section 1.2.
PREMISES: shall have the meaning assigned in Section 1.1(a).
PREVAILING PARTY: shall have the meaning assigned in Section
19.5.
PROJECT: shall have the meaning assigned in Section
1.1(a)(vii).
REAL PROPERTY: shall have the meaning assigned in Recital A.
RENT COMMENCEMENT DATE: shall mean any of the Phase 1 Rent
Commencement Date, Phase 2A Rent Commencement Date or Phase 2B
Rent Commencement Date, all as defined in Section 3.1.
REQUESTING PARTY: shall have the meaning assigned in Section
17.3.
REQUIREMENTS: shall have the meaning assigned in Section 11.3.
RESPONDING PARTY: shall have the meaning assigned in Section
17.3.
SECURITY DEPOSIT: shall have the meaning assigned in Section
18.1.
SHELL FINAL: shall have the meaning in Section 1(u) of the
Work Letter.
SITE PLAN: shall have the meaning assigned in Section
1.1(a)(ii).
SUBSTANTIAL COMPLETION OF BASE BUILDING WORK: shall have the
meaning assigned in Section 1(w) of the Work Letter.
TENANT: shall have the meaning assigned in the Introduction.
TENANT IMPROVEMENTS: shall have the meaning assigned in
Section 1(y) of the
3.
Work Letter.
TENANT IMPROVEMENT ALLOWANCE: shall have the meaning assigned
in Section 4(b) of the Work Letter.
TENANT'S OPERATING COST SHARE: shall refer, collectively, to
Tenant's Building 1 Operating Cost Share, Tenant's Exterior
Common Area Cost Share and Tenant's Building 2 Operating Cost
Share, as described in Section 7.1(a)(iv).
TENANT'S BUILDING 1 OPERATING COST SHARE: shall have the
meaning assigned in Section 7.1(a)(i).
TENANT'S EXTERIOR COMMON AREA OPERATING COST SHARE: shall have
the meaning assigned in Section 7.1(a)(i).
TENANT'S BUILDING 2 OPERATING COST SHARE: shall have the
meaning assigned in Section 7.1(a)(ii).
TENANT'S WORK: shall have the meaning assigned in Section
1(aa) of the Work Letter.
TERM: shall have the meaning assigned in Section 2.1.
TERMINATION DATE: shall have the meaning assigned in Section
2.1.
USEABLE SQUARE FEET: shall have the meaning in Section 1(cc)
of the Work Letter.
WORK LETTER: shall have the meaning assigned in Section
5.1(a).
THE PARTIES AGREE AS FOLLOWS:
1. PROPERTY.
1.1 LEASE OF PREMISES.
(a) BUILDINGS, PROPERTY, IMPROVEMENTS. Subject to the Parking
Lease dated as of September ____, 2000 (the "PARKING LEASE") by and between
Landlord and Tenant, Landlord leases to Tenant and Tenant leases from Landlord,
on the terms, covenants and conditions hereinafter set xxxxx, Xxxxx 0X, Xxxxx
0X, and Phase 2A (all as defined below and referred to collectively herein as
the "PREMISES"). The Premises, together with Phase 2B, are to be constructed by
Landlord in accordance with Article 5 hereof and EXHIBIT C attached hereto; and
will be located in two connected four-story buildings containing an aggregate of
approximately 390,000 square feet, consisting of approximately 171,965 square
feet of rentable area for office and laboratory research and development and two
lower stories primarily of parking (collectively, the "BUILDINGS" and each a
"BUILDING"). The Buildings are being constructed or will be constructed on the
Real Property in connection with the Project.
4.
(i) The Real Property is located at 000 Xxxxxxxxxx
Xxxx in the City of San Xxxxxx, County of San Mateo, State of California.
(ii) The location of the Real Property is, and the
location of the Buildings on the Real Property is intended to be, substantially
as shown on the site plans attached hereto as EXHIBIT B (the "SITE PLAN"); the
first BUILDING to be constructed ("BUILDING 1") is being constructed on the Real
Property in the location depicted on the Site Plan, and the second BUILDING to
be constructed ("BUILDING 2") shall be constructed on the Real Property in the
location depicted on the Site Plan.
(iii) The term "PHASE 1A" shall refer to that portion
of Building 1 consisting of approximately 39,077 rentable square feet (37,703
usable square feet) located on the fourth floor and the approximately 964
rentable square feet (930 usable square feet) located on the second floor and
shown on the Site Plan.
(iv) The term "PHASE 1B" shall refer to that portion
of Building 1 consisting of approximately 39,876 rentable square feet (38,474
usable square feet) located on the third floor and shown on the Site Plan.
(v) The term "PHASE 2A" shall refer to that portion
of Building 2 consisting of approximately 45,574 rentable square feet (43,972
useable square feet) located on the third floor and shown on the Site Plan.
(vi) The term "PHASE 2B" shall refer to that portion
of Building 2 consisting of approximately 46,474 rentable square feet (44,840
useable square feet) located on the fourth floor and shown on the Site Plan.
(vii) The Buildings and the other improvements to be
constructed on the Real Property in connection with the Project, including the
Common Areas (defined below), are sometimes referred to collectively herein as
the "IMPROVEMENTS." The "PROJECT," when completed, will consist of the Real
Property and the Improvements.
(viii) The parking areas (whether inside or outside
the Buildings), courtyard, driveways, sidewalks, landscaped areas and other
portions of the Project, including any areas leased under the Parking Lease,
that lie outside the exterior walls of the Buildings to be constructed on the
Real Property, as depicted in the Site Plan and as hereafter modified by
Landlord from time to time in accordance with the provisions of this Lease, are
sometimes referred to herein as the "EXTERIOR COMMON AREAS."
(ix) The term "INTERIOR COMMON AREAS" shall refer to
the interior lobby, elevators, stairwells, utility risers, and any mechanical
rooms located outside any tenant's premises in the Buildings.
(x) The term "COMMON AREAS" shall refer collectively
to the Exterior Common Areas and the Interior Common Areas
(b) USE OF COMMON AREAS. As an appurtenance to Tenant's
leasing of the Premises pursuant to Section 1.1(a), Landlord hereby grants to
Tenant, for the benefit of Tenant
5.
and its employees, suppliers, shippers, customers and invitees, during the
Term of this Lease, the non-exclusive right to use, in common with others
entitled to such use, (i) those portions of the Common Areas improved from
time to time for use as parking areas, driveways, courtyard, sidewalks,
landscaped areas, lobbies, elevators, stairwells, utility risers, any
mechanical rooms located outside any tenant's premises, or for other common
purposes, and (ii) all access easements and similar rights and privileges
relating to or appurtenant to the Property and created or existing from time
to time under any access easement agreements, declarations of covenants,
conditions and restrictions, or other written agreements now or hereafter of
record with respect to the Property, subject however to the rights granted
under the Parking Lease and any limitations applicable to such rights and
privileges under applicable law, under this Lease and/or under the written
agreements creating such rights and privileges.
1.2 PHASE 2B EXPANSION OPTION. So long as Inhale Therapeutic Systems,
Inc. (or a transferee of a Permitted Transfer) is the Tenant hereunder as of its
exercise of the option granted herein, Tenant shall have the option to lease
Phase 2B from Landlord (the "PHASE 2B EXPANSION OPTION") upon the terms and
conditions set forth in this Lease, subject to the following conditions:
(a) The Phase 2B Expansion Option shall be exercised by
written notice of its irrevocable election to exercise the Phase 2B Expansion
Option ("EXERCISE NOTICE") given to Landlord by Tenant at any time prior to, but
no later than, three (3) business days following the date of Building 2
Substantial Completion. Upon Tenant's giving of the Exercise Notice, Phase 2B
shall be deemed added to the Premises.
(b) In the event that Tenant shall not have given the Exercise
Notice by Substantial Completion of the Base Building Work, Landlord may lease
Phase 2B to a third party for a term not to exceed three years and not later
than six (6) months prior to the end of the term of such third party lease,
Landlord shall notify Tenant of the availability of Phase 2B. Tenant may
exercise the Phase 2B Expansion Option, at any time prior to, but no later than,
thirty days following its receipt of Landlord's notice of availability, by
giving the Exercise Notice; provided that the Minimum Rental for Phase 2B in
such event shall be the lower of (i) $3.60 per rentable square foot per month,
which amount shall be subject to a two percent (2%) annual increase on each
anniversary of the date of Building 2 Substantial Completion, commencing in
2001, or (ii) the then Fair Market Rental (as determined pursuant to the
mechanism described in Section 3.1(d). In such event, Landlord shall have no
obligation to provide any tenant improvement allowance.
(c) Notwithstanding anything to the contrary contained herein,
if Tenant is in default beyond any applicable notice and cure periods, under any
obligation to pay amounts when due and/or any of the other material terms,
covenants or conditions of this Lease at the time Tenant exercises the Phase 2B
Expansion Option, Landlord shall have, in addition to all of Landlord's other
rights and remedies provided in this Lease, the right to terminate such Phase 2B
Expansion Option upon written notice to Tenant, and Landlord shall be free to
lease Phase 2B to any other third party or parties for any term and condition.
6.
2. TERM.
2.1 TERM. The term of this Lease (as it may be extended from time to
time, the "TERM") shall commence upon mutual execution of this Lease by Landlord
and Tenant (the "EFFECTIVE DATE") and shall terminate on the date that is one
day prior to the sixteenth anniversary of the Phase 1 Rent Commencement Date (as
it may be extended pursuant to Section 2.6, below, the "TERMINATION DATE").
2.2 EARLY POSSESSION. Provided Tenant's activities do not unduly
interfere with or delay the Base Building Work, Tenant shall have the
non-exclusive right to enter the Property from and after the date hereof for the
purposes of performing Tenant's Work. Such entry shall be subject to and upon
all of the terms and conditions of this Lease and of the Work Letter attached
hereto as EXHIBIT C (including, but not limited to, conditions relating to the
maintenance of required insurance), except that Tenant shall have no obligation
to pay Minimum Rental or Operating Expenses for any period prior to the
applicable Rent Commencement Date as determined under Section 3.1; such early
possession shall not advance or otherwise affect the applicable Rent
Commencement Date. Upon Substantial Completion of the Base Building Work for
each Phase, Tenant shall be entitled to the exclusive possession of the
Premises.
2.3 DELAY IN POSSESSION. Except to the extent caused by a material
default by Landlord of its obligations set forth in this Lease, Landlord shall
not be liable for any damages caused by any delay in the completion of the
Improvements, nor shall any such delay affect the validity of this Lease or the
obligations of Tenant hereunder.
2.4 ACKNOWLEDGEMENT OF RENT COMMENCEMENT. Promptly following each of
the Phase 1 Rent Commencement Date, the Phase 2A Rent Commencement Date and the
Phase 2B Rent Commencement Date, Landlord and Tenant shall execute a written
acknowledgement of the applicable Rent Commencement Date, Termination Date and
related matters, substantially in the form attached hereto as EXHIBIT E (with
appropriate insertions), which acknowledgement shall be deemed to be
incorporated herein by this reference. Notwithstanding the foregoing
requirement, the failure of either party to execute any such written
acknowledgement shall not affect the determination of the applicable Rent
Commencement Date, Termination Date and related matters in accordance with the
provisions of this Lease.
2.5 HOLDING OVER. If Tenant holds possession of the Premises or any
portion thereof after the Term of this Lease with Landlord's written consent,
then except as otherwise specified in such consent, Tenant shall become a tenant
from month to month at one hundred and two percent (102%) of the rental and
otherwise upon the terms herein specified for the period immediately prior to
such holding over and shall continue in such status until the tenancy is
terminated by either party upon not less than one hundred twenty (120) days
prior written notice. If Tenant holds possession of the Premises or any portion
thereof after the Term of this Lease without Landlord's written consent, then
Landlord in its sole discretion may elect (by written notice to Tenant) to have
Tenant become a tenant either from month to month or at will, at one hundred
fifty percent (150%) of the rental (prorated on a daily basis for an at-will
tenancy, if applicable) and otherwise upon the terms herein specified for the
period immediately prior to such holding over, or may elect to pursue any and
all legal remedies available to Landlord under applicable law with respect to
such holding over by Tenant. Tenant shall indemnify and
7.
hold Landlord harmless from any loss, damage, claim, liability, cost or
expense (including reasonable attorneys' fees) resulting from any delay by
Tenant in surrendering the Premises or any portion thereof (except to the
extent such delay is with Landlord's prior written consent), including, but
not limited to, any claims made by a succeeding tenant by reason of such
delay. Acceptance of rent by Landlord following expiration or termination of
this Lease shall not constitute a renewal of this Lease.
2.6 OPTIONS TO EXTEND TERM. Tenant shall have the option to extend the
Term of this Lease, at the Minimum Rental set forth in Section 3.1(b) and (c),
below, and otherwise upon all the terms and provisions set forth herein with
respect to the initial term of this Lease, for up to two (2) additional periods
of ten (10) years each, the first commencing upon the expiration of the initial
term hereof and the second commencing upon the expiration of the first extended
term, if any. Exercise of such option with respect to the first such extended
term shall be by written notice to Landlord at least eighteen (18) months prior
to the expiration of the initial term hereof, exercise of such option with
respect to the second extended term, if the first extension option has been duly
exercised, shall be by written notice to Landlord at least eighteen (18) months
prior to the expiration of the first extended term hereof. If Tenant is in
material default hereunder, beyond any applicable notice and cure periods, on
the date of such notice or on the date any extended term is to commence, then
the exercise of the option shall be of no force or effect, the extended term
shall not commence and this Lease shall expire at the end of the then current
term hereof (or at such earlier time as Landlord may elect pursuant to the
default provisions of this Lease). If Tenant properly exercises one or more
extension options under this Section, then all references in this Lease (other
than in this Section 2.6) to the "term" of this Lease shall be construed to
include the extension term(s) thus elected by Tenant. Except as expressly set
forth in this Section 2.6, Tenant shall have no right to extend the Term of this
Lease beyond its prescribed term.
3. RENTAL.
Tenant shall cause payment of Minimum Rental and other rent or charges to be
received by Landlord on the first calendar day of each month of the Term of this
Lease in lawful money of the United States, without offset or deduction, except
as specifically provided herein. All amounts payable by Tenant hereunder shall
be deemed "Rent."
3.1 MINIMUM RENTAL.
(a) COMMENCEMENT OF RENTAL OBLIGATIONS FOR PHASE 1. Tenant's
Minimum Rental and Operating Expense obligations with respect to Phase 1A and
Phase 1B shall commence on September ___, 2000 ("PHASE 1 RENT COMMENCEMENT
DATE") and shall end on the Termination Date, unless sooner terminated or
extended as hereinafter provided.
(b) COMMENCEMENT OF RENTAL OBLIGATIONS FOR PHASES 2A AND 2B.
Tenant's Minimum Rental and Operating Expense obligations with respect to Phase
2A shall commence on the earlier of occupancy or the day after the date of
Building 2 Substantial Completion (the "PHASE 2A RENT COMMENCEMENT DATE") and
shall end on the Termination Date, unless sooner terminated or extended as
hereinafter provided. In the event Tenant exercises its option to lease Phase
2B, Tenant's Minimum Rental and Operating Expense obligations with respect to
8.
Phase 2B shall commence on the earlier of occupancy or the day after the date of
Building 2 Substantial Completion (the "PHASE 2B RENT COMMENCEMENT DATE") and
shall end on the Termination Date, unless sooner terminated or extended as
hereinafter provided.
(c) RENTAL XXXXXXX XXX XXXXX 0X, XXXXX 0X, XXXXX 2A, AND
PHASE 2B: ANNUAL INCREASES. Tenant shall pay to Landlord as minimum rental
for the following Phases, in advance, without deduction, offset, notice or
demand, on or before the respective Rent Commencement Date and on or before
the first day of each subsequent calendar month of the Term of this Lease,
the following amounts per month, subject to adjustment in accordance with the
terms of this Section 3.1 ("MINIMUM RENTAL"):
(i) PHASE 1A AND 1B. Beginning on the Phase 1 Rent
Commencement Date, Tenant shall pay Minimum Rental for Phase 1 in an amount
equal to $287,701.20 ($3.60 per sq. ft. multiplied by 79,917), provided that
Tenant shall be entitled to a rent credit in the amount of $46,444 per month (to
be prorated for partial months) until such time as Tenant shall have completed
Tenant's Work in Phase 1B (but in any event not later than April 1, 2001), as
defined in and in accordance with the terms and conditions of the Work Letter.
(ii) XXXXX 0X. Beginning on the Phase 2A Rent
Commencement Date, Tenant shall pay Minimum Rental for Phase 2A in an amount
equal to $164,066.40 ($3.60 per sq. ft. multiplied by 45,574).
(iii) PHASE 2B. In the event that Tenant shall have
exercised its Phase 2B Expansion Option, then beginning on the Phase 2B Rent
Commencement Date, Tenant shall pay Minimum Rental for Phase 2B in an amount
equal to $167,306.40 ($3.60 per sq. ft. multiplied by 46,474).
(iv) ANNUAL INCREASES. On the anniversary of each of
the Phase 1 Rent Commencement Date, the Phase 2A Rent Commencement Date and the
Phase 2B Rent Commencement Date (assuming Tenant exercises its Phase 2B
Expansion Option), the then current Minimum Rental for the relevant Phase shall
be increased by two percent (2%).
(v) PARTIAL MONTHS. If the obligation to pay Minimum
Rental hereunder commences on other than the first day of a calendar month or if
the Term of this Lease terminates on other than the last day of a calendar
month, the Minimum Rental for such first or last month of the Term of this
Lease, as the case may be, shall be prorated based on the number of days the
Term of this Lease is in effect during such month. If an increase in Minimum
Rental becomes effective on a day other than the first day of a calendar month,
the Minimum Rental for that month shall be the sum of the two applicable rates,
each prorated for the portion of the month during which such rate is in effect.
(d) RENTAL AMOUNTS DURING FIRST EXTENDED TERM. If Tenant
properly exercises its right to extend the Term of this Lease pursuant to
Section 2.6 hereof, the Minimum Rental during the first year of the first
extended term shall be equal to one hundred percent (100%) of the fair market
rental value (as defined below), determined as of the commencement of such
extended term in accordance with this paragraph. Upon Landlord's receipt of a
proper notice of Tenant's exercise of its option to extend the Term of this
Lease, the parties shall have
9.
thirty (30) days in which to agree on the Fair Market Rental at the
commencement of the first extended term for the uses permitted hereunder. If
the parties agree on such Fair Market Rental, they shall execute an amendment
to this Lease stating the amount of the applicable minimum monthly rental
(including the indexed amounts applicable during subsequent years of the
first extended term as described above in Section 3.1(c)(iv)). If the parties
are unable to agree on such rental within such thirty (30) day period, then
within thirty (30) days after the expiration of such period each party, at
its cost and by giving notice to the other party, shall appoint a real estate
appraiser with at least five (5) years experience appraising similar
commercial properties in the County in which the Property is located to
appraise and set the Fair Market Rental for the Premises at the commencement
of the first extended term in accordance with the provisions of this Section
3.1(d). If either party fails to appoint an appraiser within the allotted
time, the single appraiser appointed by the other party shall be the sole
appraiser. If an appraiser is appointed by each party and the two appraisers
so appointed are unable to agree upon a Fair Market Rental within thirty (30)
days after the appointment of the second, the two appraisers shall appoint a
third similarly qualified appraiser within ten (10) days after expiration of
such 30-day period; if they are unable to agree upon a third appraiser, then
either party may, upon not less than five (5) days notice to the other party,
apply to the Presiding Judge of the Superior Court of the County in which the
Property is located for the appointment of a third qualified appraiser. Each
party shall bear its own legal fees in connection with appointment of the
third appraiser and shall bear one-half of any other costs of appointment of
the third appraiser and of such third appraiser's fee. The third appraiser,
however selected, shall be a person who has not previously acted for either
party in any capacity. Within thirty (30) days after the appointment of the
third appraiser, the third appraiser shall set the Fair Market Rental for the
first extended term by selecting the appraised value determined by the first
two appraisers which is closest to his own determination, and shall so notify
the parties, which determination shall be binding on the parties and shall be
enforceable in any further proceedings relating to this Lease. For purposes
of this Section 3.1(d), the "FAIR MARKET RENTAL" of the Premises shall be
determined with reference to the then prevailing market rental rates for
properties in the City of San Xxxxxx with improvements and common area
improvements comparable to those then existing in the Premises and paid for
by Landlord, either directly or through the payment of the Tenant Improvement
Allowance (as defined in Section 4(b) of the Work Letter attached hereto as
Exhibit C) to Tenant.
(e) RENTAL AMOUNTS DURING SECOND EXTENDED TERM. If Tenant
properly exercises its right to a second extended Term of this Lease pursuant to
Section 2.6 hereof, the Minimum Rental during such second extended term shall be
determined in the same manner provided in the preceding paragraph for the first
extended term (including the rental increase provision for years after the first
year of such second extended term), except that the determination shall be made
as of the commencement of the second extended term.
3.2 LATE CHARGE. If Tenant shall fail to pay, when the same is due and
payable (after giving effect to any applicable notice and cure period), any rent
or other amounts due Landlord hereunder, such unpaid amounts shall bear interest
for the benefit of the Landlord at a rate equal to the lesser of ten percent
(10%) per annum or the maximum rate permitted by law, from the date due to the
date of payment. Tenant further acknowledges that late payment of rent will
cause Landlord to incur certain costs not contemplated by this Lease, the exact
amount of such costs being extremely difficult and impractical to determine with
certainty. For this reason, in addition to interest, if Tenant shall fail to pay
(which for purposes of this paragraph, "pay" shall
10.
mean actual receipt of the payment by Landlord) any installment of rent by
the fifth (5th) day of the calendar month for which such installment is due,
a late charge equal to five percent (5%) of the overdue installment of rent
automatically shall be due without further notice, and shall be in addition
to all other sums due. The parties agree that this additional late charge
represents a fair and reasonable estimate of the costs Landlord will incur by
reason of late payment by Tenant
4. PARKING.
Landlord and Tenant agree that the Common Areas of the Property shall
include not less than 690 parking spaces. Commencing on the Effective Date and
continuing until the Phase 1 Rent Commencement Date, at no additional charge,
Tenant may use up to 300 spaces for parking. At no additional charge, following
the Phase 1 Rent Commencement Date Tenant shall be entitled to 230 spaces;
following the Phase 2A Rent Commencement Date Tenant shall be entitled to an
additional 131 spaces; and, provided Tenant exercises the Phase 2B Expansion
Option, following the Phase 2B Rent Commencement Date Tenant shall be entitled
to an additional 139 spaces constituting the remaining spaces on the Common
Areas, all of which shall be subject to the Parking Lease. Tenant acknowledges
that during the construction of the Base Building Work for Building 2, the
available number of parking spaces may be diminished by a much as 100 spaces,
and Tenant shall have no right to a reduction in Minimum Rental as a result.
5. CONSTRUCTION.
5.1 CONSTRUCTION OF IMPROVEMENTS.
(a) BASE BUILDING WORK; PERFORMANCE AND PAYMENT. Landlord
shall, at Landlord's cost and expense (except as otherwise provided herein and
in EXHIBIT C, construct BASE BUILDING WORK as defined in and in accordance with
the terms and conditions of the WORK LETTER attached hereto as EXHIBIT C (the
"WORK LETTER"). Landlord shall use its best efforts to complete such
construction promptly, diligently and within the applicable time periods set
forth in the Estimated Construction Schedule attached hereto as EXHIBIT D and
incorporated herein by this reference, as such schedule may be modified from
time to time in accordance with the WORK LETTER, subject to the effects of any
delays caused by Tenant or any other circumstances beyond Landlord's reasonable
control (excluding any financial inability), and subject to the provisions of
Section 2.3 above. Tenant may cause the Tenant Improvements therein to be
constructed concurrently with Landlord's construction of the Base Building
Improvements provided such construction does not unduly interfere with
Landlord's construction of the Base Building Improvements.
(b) TENANT'S WORK. Tenant shall, at Tenant's cost and expense
(except as otherwise provided herein and in EXHIBIT C), promptly and diligently
construct Tenant's Work as defined in and in accordance with the terms and
conditions of the WORK LETTER. Landlord shall provide the Tenant Improvement
Allowance as described in the Work Letter. All Tenant's Work shall comply with
all applicable laws and shall be completed in conformance with the APPROVED
PLANS as defined in the Work Letter.
(c) COMPLIANCE WITH LAW. Landlord warrants to Tenant that the
Base Building Work and any other improvements constructed by Landlord from time
to time shall not
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violate any applicable law, building code, regulation or ordinance in effect
on the applicable Rent Commencement Date or at the time such improvements are
placed in service. If it is determined that any of these warranties have been
violated, then it shall be the obligation of the Landlord, after written
notice from Tenant, to correct the condition(s) constituting such violation
promptly, at Landlord's sole cost and expense.
6. TAXES.
6.1 PERSONAL PROPERTY. Tenant shall be responsible for and shall pay
prior to delinquency all taxes and assessments levied against or by reason of
(a) any and all alterations, additions and items installed or placed on or in
the Premises and taxed as personal property rather than as real property, and/or
(b) all personal property, trade fixtures and other property placed by Tenant on
or about the Premises. Upon request by Landlord, Tenant shall furnish Landlord
with satisfactory evidence of Tenant's payment thereof. If it any time during
the Term of this Lease any of said alterations, additions or personal property,
whether or not belonging to Tenant, shall be taxed or assessed as part of the
Property, then such tax or assessment shall be paid by Tenant to Landlord within
thirty (30) days after presentation by Landlord of copies of the tax bills in
which such taxes and assessments are included and shall, for the purposes of
this Lease, be deemed to be personal property taxes or assessments under this
Section 6.1.
6.2 REAL PROPERTY.
(a) REAL PROPERTY TAXES. Commencing with the Phase 1 Rent
Commencement Date and continuing for each calendar year, or tax year at
Landlord's option (such "tax year" being a period of twelve (12) consecutive
calendar months for which the applicable taxing authority levies or assesses
real property taxes), for the balance of the Lease Term, Tenant shall pay to
Landlord the amount of all real property taxes levied and assessed for any such
year upon the Premises. Notwithstanding the foregoing, prior to the date of
Building 2 Substantial Completion, Tenant be responsible for all real property
taxes levied and assessed during such period upon the Project. Such sum for any
partial year of the Lease Term shall be prorated on the basis of the number of
days of such partial year. Payment shall be made in the following manner: Tenant
shall pay to Landlord as Operating Expenses, the amount of all real property
taxes levied and assessed upon the Premises including improvements and the
underlying realty for any calendar year to be paid either: (i) monthly in
accordance with Article 7 below; or (ii) at Landlord's option, for any tax year,
within thirty (30) days after Landlord gives notice to Tenant of the amount of
such real property taxes payable by Tenant (or not less than thirty (30) days
prior to delinquency, whichever is later). Landlord also shall provide Tenant
with a copy of the applicable tax xxxx or tax statement from the taxing
authority. In addition to any other amounts due from Tenant to Landlord, if
Tenant fails to pay the real property taxes to Landlord as herein required,
Tenant shall pay to Landlord the amount of any interest, penalties or late
charges caused by Tenant's late payment.
(b) PROTESTS. If the Premises are separately assessed, Tenant
shall have the right, by appropriate proceedings, to protest or contest in good
faith any assessment or reassessment of real property taxes, any special
assessment, or the validity of any real property taxes or of any change in
assessment or tax rate; provided, however, that prior to any such challenge
Tenant must either (a) pay the taxes alleged to be due in their entirety and
seek a
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refund from the appropriate authority, or (b) post bond in an amount
sufficient to insure full payment of the real property taxes. In any event,
upon a final determination with respect to such contest or protest, Tenant
shall promptly pay all sums found to be due with respect thereto. In any such
protest or contest, Tenant may act in its own name, and at the request of
Tenant, Landlord shall cooperate with Tenant in any way Tenant may reasonably
require in connection with such contest or protest, including signing such
documents as Tenant reasonably shall request, provided that such cooperation
shall be at no expense to Landlord and shall not require Landlord to attend
any appeal or other hearing. Any such contest or protest shall be at Tenant's
sole expense, and if any penalties, interest or late charges become payable
with respect to the real property taxes as a result of such contest or
protest, Tenant shall pay the same.
(c) REFUNDS. If Tenant obtains a refund as the result of
Tenant's protest or contest and subject to Tenant's obligation to pay Landlord's
costs (if any) associated therewith, Tenant shall be entitled to such refund to
the extent it relates to the Premises during the Lease Term.
(d) OTHER TAXES. If at any time during the Lease Term under
the laws of the United States Government, state, county or city, or any
political subdivision thereof in which the Premises are situated, a tax or
excise on rent or any other tax however described is levied or assessed by any
such political body against Landlord on account of rentals payable to Landlord
hereunder, such tax or excise shall be considered "REAL PROPERTY TAXES" for the
purposes of this Section 6.2, excluding, however, from such tax or excise any
amount assessed against Landlord as state or federal income tax.
(e) TAX AND INSURANCE ESCROWS. To the extent required by any
lender of Landlord, Tenant shall timely pay all tax and insurance impound
payments due on the Premises.
7. OPERATING EXPENSES.
7.1 PAYMENT OF OPERATING EXPENSES.
(a) TENANT'S OPERATING COST SHARE.
(i) Commencing on the Phase 1 Rent Commencement Date
through the date of Building 2 Substantial Completion, Tenant shall pay to
Landlord, at the time and in the manner hereinafter set forth, as additional
rental: (i) an amount equal to one hundred percent (100%) of the Operating
Expenses defined in Section 7.2 applicable to the Buildings (excluding any
construction or construction-related costs or capital improvement costs for
Building 2) ("TENANT'S BUILDING 1 OPERATING COST SHARE"), and (ii) an amount
equal to 100% of the Operating Expenses attributable to the all Exterior Common
Areas ("TENANT'S EXTERIOR COMMON AREA OPERATING COST SHARE").
(ii) Commencing on the date of Building 2 Substantial
Completion, Tenant shall pay to Landlord, at the time and in the manner
hereinafter set forth, as additional rental: (i) an amount equal to one hundred
percent (100%) of the Operating Expenses defined in Section 7.2 applicable to
Building 1, (ii) an amount equal to forty-nine and three hundredths percent
(49.03%) of the Operating Expenses applicable to Building 2 ("TENANT'S BUILDING
2 OPERATING COST SHARE"), and (iii) Tenant's Exterior Common Area Operating Cost
Share shall
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be reduced to an amount equal to seventy-three and three tenths percent
(73.30%) of the Operating Expenses attributable to the Common Areas.
(iii) In the event Tenant exercises the Phase 2B
Expansion Option, commencing on the Phase 2B Rent Commencement Date, Tenant's
Building 2 Operating Cost Share shall be increased to 100% of the Operating
Costs attributable to Building 2, and Tenant's Exterior Common Area Operating
Cost Share shall be increased to 100% of the Operating Expenses attributable to
the all Exterior Common Areas.
(iv) The term "TENANT'S OPERATING COST SHARE" shall
refer collectively to Tenant's Building 1 Operating Cost Share, Tenant's
Exterior Common Area Operating Cost Share and Tenant's Building 2 Operating Cost
Share, as they may be in effect from time to time.
(b) ADJUSTMENT OF SHARE FOLLOWING CHANGE SIZE OF PREMISES. If
at any time the size of the Premises changes, then Tenant's Operating Cost Share
for the Building in which the change has occurred shall be adjusted to be equal
to the percentage determined by dividing the gross square footage of the
Premises in such Building as they exist from time to time by the gross square
footage of the relevant Building, and the Tenant's Exterior Common Area
Operating Cost Share shall be equitably adjusted accordingly.
7.2 DEFINITION OF OPERATING EXPENSES.
(a) INCLUSIONS. Subject to the exclusions and provisions
hereinafter contained, the term "OPERATING EXPENSES" shall mean the total costs
and expenses incurred by Landlord or Tenant for operation and maintenance of the
Buildings and the Property, including, without limitation, costs and expenses of
(i) insurance premiums for insurance carried by Landlord pursuant to Section
12.1 (which may include, at Landlord's option, flood, earthquake or
environmental remediation insurance), insurance deductibles, provided that any
increase in premiums for flood, earthquake or environmental remediation coverage
which is in excess of twenty five percent of the previous years' premium shall
not be included in Operating Expenses; (ii) the operation, repair and
maintenance of the Building Shells and Common Areas in a first class condition
including but not limited to sidewalks, parking areas, curbs, roads, driveways,
lighting standards, landscaping, sewers, water, gas and electrical distribution
systems and facilities, drainage facilities, and all signs, both illuminated and
non-illuminated that are now or hereafter in the Buildings and on the Property;
(iii) all Common Area utilities and services not separately metered to Tenant;
(iv) real and personal property taxes and assessments or substitutes therefor
levied or assessed against the Property or any part thereof, including (but not
limited to) any possessory interest, use, business, license or other taxes or
fees, any taxes imposed directly on rents or services, any assessments or
charges for police or fire protection, housing, transit, open space, street or
sidewalk construction or maintenance or other similar services from time to time
by any governmental or quasi-governmental entity, and any other new taxes on
landlords in addition to taxes now in effect; (v) supplies, equipment, utilities
and tools used in the operation and maintenance of the Property; (vi) capital
improvements to the Property, the Improvements or the Buildings including,
without limitation, all structural, roof, HVAC (defined as heating, ventilation,
and air conditioning equipment and fixtures related thereto) serving the Common
Areas, plumbing and electrical systems costing Seventy-five Thousand dollars
($75,000) or less,
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provided that the cost of all other capital improvements shall be amortized
over the useful life of any such capital improvement (calculated in
accordance with GAAP) and included in Operating Expenses; (vii) property
management fees; (viii) market rate lease costs for equipment, and (ix) any
other costs (including, but not limited to, any parking or utilities fees or
surcharges) allocable to or paid by Landlord, as owner of the Property,
Buildings or Improvements, pursuant to any applicable laws, ordinances,
regulations or orders of any governmental or quasi-governmental authority or
pursuant to the terms of any declaration of covenants, conditions and
restrictions now or hereafter affecting the Property or any other property
over which Tenant has non-exclusive use rights as contemplated in Section
1.1(b) hereof.
(b) EXCLUSIONS. Notwithstanding anything to the contrary
contained in this Lease, the following shall not be included within Operating
Expenses:
(i) Leasing commissions, attorneys' fees, costs,
disbursements, and other expenses incurred in connection with negotiations or
disputes with tenants, or in connection with leasing, renovating or improving
space for tenants or other occupants or prospective tenants or other occupants
of the Property;
(ii) The cost of any service sold to any tenant
(including Tenant) or other occupant for which Landlord is entitled to be
reimbursed as an additional charge or rental over and above the basic rent and
operating expenses payable under the lease with that tenant;
(iii) Any depreciation on the Buildings or on any
other improvements on the Property;
(iv) Expenses in connection with services or other
benefits of a type that are not offered or made available to Tenant but that are
provided to another tenant of the Property or of any other property owned by
Landlord;
(v) Costs incurred due to Landlord's violation of any
terms or conditions of this Lease or of any other lease relating to the
Buildings or to any other portion of the Property;
(vi) Overhead profit increments paid to any
subsidiary or affiliate of Landlord for services other than management on or to
the Property, or for supplies or other materials to the extent that the cost of
the services, supplies or materials exceeds the cost that would have been paid
had the services, supplies or materials been provided by unaffiliated parties on
a competitive basis;
(vii) All interest, loan fees and other carrying
costs related to any mortgage or deed of trust, and all rental and other amounts
payable under any ground or underlying lease, or above market lease payments
under any lease for any equipment ordinarily considered to be of a capital
nature (except janitorial equipment which is not affixed to the Buildings and/or
equipment the costs of which, if purchased, would be considered an amortizable
Operating Expense under the provisions above, notwithstanding the capital nature
of such equipment;
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(viii) Any compensation paid to clerks, attendants or
other persons in commercial concessions operated by Landlord;
(ix) Advertising and promotional expenditures;
(x) Any costs, fines or penalties incurred due to
violations by Landlord of any governmental rule or authority or of this Lease or
any other lease of any portion of the Property or any other property owned by
Landlord, or due to Landlord's gross negligence or willful misconduct;
(xi) Management fees in excess of five (5%) percent
of all other Operating Expenses, provided that no management fees shall be
included within the definition of Operating Expenses in circumstances where
Tenant's Security Deposit is required to be larger than an amount equal to three
months Minimum Rent, subject to the Landlord's lender's right to reinstate such
management fee pursuant to Section 7.7, below;
(xii) Costs for sculpture, paintings or other objects
of art, and for any insurance thereon or extraordinary security in connection
therewith other than that provided in connection with the initial construction
of the Buildings or the Common Area improvements on the Property;
(xiii) Wages, salaries or other compensation paid to
any executive employees above the grade of building manager;
(xiv) The cost of containing, removing or otherwise
remediating any contamination of the Property (including the underlying land and
groundwater) by any toxic or Hazardous Materials (as defined in Section 11.4(a),
below) for which Landlord is responsible under Section 11.4, below; and
(xv) Premiums for earthquake, environmental
remediation or flood insurance coverage other than as permitted under Section
7.2(a), above.
(xvi) Operating Expenses shall not include any costs
attributable to the work for which Landlord is required to pay under Article 5
or EXHIBIT C, nor any costs attributable to the initial construction of the
Buildings or of Common Area improvements on the Property.
7.3 DETERMINATION OF OPERATING EXPENSES. During the last month of each
calendar year of the Term of this Lease ("LEASE YEAR"), or as soon thereafter as
practical, Landlord shall provide Tenant notice of Landlord's estimate of the
Operating Expenses for the ensuing Lease Year or applicable portion thereof. On
or before the first day of each month during the ensuing Lease Year or
applicable portion thereof, beginning on the Phase I Rent Commencement Date,
Tenant shall pay to Landlord Tenant's Operating Cost Share of the portion of
such estimated Operating Expenses allocable (on a pro rata basis) to such month;
PROVIDED, HOWEVER, that if such notice is not given in the last month of a Lease
Year, Tenant shall continue to pay on the basis of the prior year's estimate, if
any, until the month after such notice is given. If at any time or times it
appears to Landlord that the actual Operating Expenses will vary from Landlord's
estimate by
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more than four percent (4%), Landlord may, by notice to Tenant, revise its
estimate for such year and subsequent payments by Tenant for such year shall
be based upon such revised estimate.
7.4 FINAL ACCOUNTING FOR LEASE YEAR.
(a) ANNUAL STATEMENT. Within ninety (90) days after the close
of each Lease Year, or as soon after such 90-day period as practicable, Landlord
shall deliver to Tenant a statement of Tenant's Operating Cost Share of the
Operating Expenses for such Lease Year prepared by Landlord from Landlord's
books and records, which statement shall be final and binding on Landlord and
Tenant (except as provided in Section 7.4(b)). If on the basis of such statement
Tenant owes an amount that is more or less than the estimated payments for such
Lease Year previously made by Tenant, Tenant or Landlord, as the case may be,
shall pay the deficiency to the other party within thirty (30) days after
delivery of the statement. Failure or inability of Landlord to deliver the
annual statement within such ninety (90) day period shall not impair or
constitute a waiver of Tenant's obligation to pay Operating Expenses, or cause
Landlord to incur any liability for damages.
(b) AUDIT RIGHTS. At any time within one hundred twenty (120)
days after receipt of Landlord's annual statement of Operating Expenses as
contemplated in Section 7.4(a), Tenant shall be entitled, upon reasonable
written notice to Landlord and during normal business hours at Landlord's office
or such other places as Landlord shall designate, to inspect and examine those
books and records of Landlord relating to the determination of Operating
Expenses for the immediately preceding Lease Year covered by such annual
statement or, if Tenant so elects by written notice to Landlord, to request an
independent audit of such books and records. The independent audit of the books
and records shall be conducted by a certified public accountant acceptable to
both Landlord and Tenant or, if the parties are unable to agree, by a certified
public accountant appointed by the Presiding Judge of the County Superior Court
in which the Property is located upon the application of either Landlord or
Tenant (with notice to the other party). In either event, such certified public
accountant shall be one who is not then employed in any capacity by Landlord or
Tenant. The audit shall be limited to the determination of the amount of
Operating Expenses for the subject Lease Year, and shall be based on generally
accepted accounting principles and tax accounting principles, consistently
applied. If it is determined, by mutual agreement of Landlord and Tenant or by
independent audit, that the amount of Operating Expenses billed to or paid by
Tenant for the applicable Lease Year was incorrect, then the appropriate party
shall pay to the other party the deficiency or overpayment, as applicable,
within thirty (30) days after the final determination of such deficiency or
overpayment. All costs and expenses of the audit shall be paid by Tenant unless
the audit shows that Landlord overstated Operating Expenses for the subject
Lease Year by more than five percent (5%), in which case Landlord shall pay all
costs and expenses of the audit. Each party agrees to maintain the
confidentiality of the findings of any such audit.
7.5 PRORATION. If the Rent Commencement Date for Phase I, Phase 2A or
2B falls on a day other than the first day of a Lease Year or if this Lease
terminates on a day other than the last day of a Lease Year, then the amount of
Operating Expenses payable by Tenant with respect to such first or last partial
Lease Year shall be prorated on the basis which the number of days during such
Lease Year in which this Lease is in effect bears to 365. The termination of
this
17.
Lease shall not affect the obligations of Landlord and Tenant pursuant to
Section 7.4 to be performed after such termination.
7.6 RESERVE ACCOUNT. Tenant shall each month, commencing on the Phase 1
Rent Commencement Date and on the first day of each calendar month thereafter of
the Lease term, deposit into a segregated, interest bearing bank account in a
federally insured bank or savings institute an amount equal to one percent (1%)
of the monthly rent due for that month, to provide for future replacements to
improvements and fixtures within the Premises (the "RESERVE ACCOUNT"); provided
that if at any time the amount held in the Reserve Account is equal to the
product of thirty six months times the amount of the monthly contribution,
Tenant's obligation to make additional deposits shall be temporarily suspended.
Tenant's obligation to make such deposits shall resume at such time as the
amount in the Reserve Account drops below such amount. The Reserve Account shall
remain the property of Tenant, but disbursements from the Reserve Account shall
be made only by joint check executed by Landlord and Tenant upon the mutual
consent of Landlord and Tenant, which consent shall not be unreasonably
withheld, delayed or conditioned. Landlord shall, within ten (10) days after
receipt of a written request, either sign any such check or convey in writing to
Tenant any objections to signing the check, and shall thereafter diligently work
with Tenant to resolve any differences with regard to the disbursement.
Notwithstanding the foregoing, if Tenant, pursuant to the Lease, is required to
make certain repairs, improvements, or replacements to the Premises or Common
Area but fails to do so within the time allowed hereunder (subject to any
applicable cure period), then Landlord, as provided under the Lease, may make
such repairs, improvements, or replacements, and may disburse funds from the
Reserve Account, without Tenant's consent or signature on the disbursement
check(s), to pay for the cost of the repairs, improvements, or replacements. Any
amount in the Reserve Account remaining at the expiration of the Lease shall
remain the property of Tenant.
7.7 PROPERTY MANAGEMENT FEE. Tenant shall pay to Landlord, as an
Operating Expense, a monthly fee ("Management Fee") to cover costs of property
management services in an amount not to exceed two and one-half percent (2 1/2%)
of the Operating Expenses for the Premises, whether or not the Operating
Expenses are paid or incurred by Landlord or Tenant, and whether or not Landlord
incurs fees payable to any third party to provide such services and without
regard to the actual costs incurred by Landlord for such services. Upon the
closing of a loan providing permanent financing for the Project and the
reduction in the Security Deposit to $1,375,000 pursuant to Section 18.1 hereof,
the Management Fee shall be increased to five percent (5%). In the event that
the lender in such financing has consented to a reduction in the Security
Deposit to a sum other than $1,375,000, then the Management Fee shall be
proportionately increased (i.e., by way of example only, if such lender requires
that the Security Deposit not be reduced below $2,750,000 and the Security
Deposit is actually reduced to such amount, then the Management Fee will be
increased to three and three-fourths percent (3 3/4%)). Notwithstanding the
foregoing, in the event that any lender succeeds to Landlord's interest in the
Property in the event of Landlord's default in its obligations to such lender,
the Management Fee shall be five percent (5%).
18.
8. UTILITIES.
8.1 PAYMENT. Commencing with the Phase 1 Rent Commencement Date and
thereafter throughout the Term of this Lease, Tenant shall pay, before
delinquency, all charges for water, trash collection, gas, heat, light,
electricity, power, sewer, telephone, alarm system, janitorial and other
services or utilities supplied to or consumed in or with respect to the
Premises, including any taxes on such services and utilities, and Tenant's
Operating Cost Share of all charges for water, gas, heat, light, electricity,
power, sewer, telephone, alarm system, janitorial and other services or
utilities supplied to or consumed in or with respect to the Common Areas. It is
the intention of the parties that to the extent feasible, all services provided
to the Premises (as opposed to the Common Areas) shall be separately metered to
the Premises.
8.2 INTERRUPTION. There shall be no abatement of rent or other charges
required to be paid hereunder and Landlord shall not be liable in damages or
otherwise for interruption or failure of any service or utility furnished to or
used with respect to the Premises because of accident, making of repairs,
alterations or improvements, severe weather, difficulty or inability in
obtaining services or supplies, labor difficulties or any other cause, except
the gross negligence of willful misconduct of Landlord, its employees and/or
agents.
9. ALTERATIONS.
9.1 RIGHT TO MAKE ALTERATIONS. Tenant shall make no alterations,
additions or improvements to the Premises, other than interior non-structural
alterations ("COSMETIC ALTERATIONS") costing less than One Hundred Thousand
Dollars ($100,000) in the aggregate during any twelve (12) month period, without
the prior written consent of Landlord, which consent shall not be unreasonably
withheld, delayed or conditioned, and if Tenant so requests, Landlord shall
specify whether Landlord intends to require that Tenant remove such Cosmetic
Alterations (or any specified portions thereof) upon expiration or termination
of this Lease. Landlord's failure to respond within fifteen (15) days of
Tenant's request or notice to Landlord shall be deemed Landlord's consent to
allow the Cosmetic Alterations to remain with the Premises at the end of the
Lease Term. Tenant shall provide to Landlord copies of any plans submitted to
any governmental agency in connection with the construction of any Cosmetic
Alterations, within thirty (30) days of such submittal. All alterations,
additions and improvements shall be completed with due diligence in a
first-class, workmanlike manner, in compliance with plans and specifications
approved in writing by Landlord and in compliance with all applicable laws,
ordinances, rules and regulations, and to the extent Landlord's consent is not
otherwise required hereunder for such alterations, additions or improvements,
Tenant shall give prompt written notice thereof to Landlord. With respect to all
proposed alterations (other than Cosmetic Alterations or otherwise), Tenant
shall provide Landlord with a cost estimate to perform the alterations, a set of
plans and specifications for the proposed work, and a set of final "as built"
plans of the work actually performed. Tenant shall cause any contractors engaged
by Tenant for work in the Buildings or on the Property to maintain public
liability and property damage insurance, and other customary insurance, with
such terms and in such amounts as Landlord may reasonably require, naming as
additional insureds Landlord and any of its partners, shareholders, property
managers and lenders designated by Landlord for this purpose, and shall furnish
Landlord with certificates of insurance or other evidence that such coverage is
in effect. Notwithstanding any other provisions of this Section 9.1, under no
circumstances shall
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Tenant make any structural alterations or improvements, or any changes to the
roof or equipment installations on the roof, or any substantial changes or
alterations to the building systems, except Cosmetic Alterations, without
Landlord's prior written consent (which consent shall not be unreasonably
withheld, delayed or conditioned). Landlord's failure to respond within
fifteen (15) days following Tenant's request shall be deemed approval.
Landlord shall receive no fee for supervision, profit, overhead or general
conditions, but shall be entitled to be reimbursed by Tenant for any
reasonable costs incurred by Landlord in connection with its retention of
third parties to assist in its review of Tenant's request for consent in
connection with any alterations, additions or improvements constructed or
installed by Tenant under this Lease after completion of the initial Tenant's
Work for each Phase.
9.2 TITLE TO ALTERATIONS. All alterations, additions and improvements
installed in, on or about the Premises at Tenant's expense shall belong to
Tenant during the Lease Term and upon expiration or earlier termination shall
become part of the Property and shall become the property of Landlord, unless
Landlord elects (at the time it grants consent to installation) to require
Tenant to remove the same upon the termination of this Lease; PROVIDED HOWEVER,
that the foregoing shall not apply to Tenant's movable furniture and equipment
and trade fixtures. Tenant shall promptly repair any damage caused by its
removal of any such alterations, additions and improvements, furniture,
equipment or trade fixtures. Landlord shall not be entitled to require removal
unless Landlord specified its intention to do so at the time of granting of
Landlord's consent to the requested alterations, additions or improvements.
Notwithstanding any other provisions of this Article 9, however, under no
circumstances shall Tenant have any obligation to remove from the Buildings or
the Property, at the expiration or termination of this Lease, any of the
Tenant's Work or Base Building Work.
9.3 TENANT FIXTURES AND PERSONAL PROPERTY. Subject to Section 9.2 and
to Section 9.5, Tenant may install, remove and reinstall trade fixtures without
Landlord's prior written consent, except that installation and removal of any
fixtures which are affixed to the Buildings or the Property or which affect the
exterior or structural portions of the Buildings or the building systems shall
require Landlord's written approval, which approval shall not be unreasonably
withheld, delayed or conditioned.
9.4 NO LIENS. Tenant shall at all times keep the Premises free from all
liens and claims of any contractors, subcontractors, materialmen, suppliers or
any other parties employed either directly or indirectly by Tenant in
construction work on the Buildings or the Property. Tenant may contest any claim
of lien, but only if, prior to such contest, Tenant either (i) posts security in
the amount of the claim, plus estimated costs and interest, or (ii) records a
bond of a responsible corporate surety in such amount as may be required to
release the lien from the Buildings and the Property no later than the thirtieth
day following recordation of such lien. Tenant shall indemnify, defend and hold
Landlord harmless against any and all liability, loss, damage, cost and other
expenses, including, without limitation, reasonable attorneys' fees, arising out
of claims of any lien for work performed or materials or supplies furnished at
the request of Tenant or persons claiming under Tenant. Tenant shall at no time
voluntarily place any fixture filing or otherwise grant a security interest in
any alterations, additions or improvements installed in, on or about the
Premises.
20.
9.5 SIGNS. Tenant shall have the sole right to display its corporate
name and logo on the exterior of the Buildings. Tenant shall have the right to
its proportionate share of monument signage, in proportion to the ratio between
the rentable square footage in Tenant's Premises and the total rentable square
footage on the Property, subject to all restrictions and requirements of
applicable law and of any covenants, conditions and restrictions.
10. MAINTENANCE AND REPAIRS.
10.1 TENANT'S OBLIGATION FOR MAINTENANCE.
(a) GOOD ORDER, CONDITION AND REPAIR.
(i) Once Building 1 has been delivered to Tenant, in
addition to Tenant's obligation to pay Tenant's Operating Cost Share as required
by Section 7.1, during any period in which Tenant leases the entire Building 1,
Tenant, at its sole cost and expense, shall keep and maintain in good and
sanitary order, in a first class condition and repair, such Building and every
part thereof, wherever located, including, but not limited to the structural
components of the Building, the roof, signs, exterior, interior, walls, ceiling,
electrical system, plumbing system, telephone and communications systems of such
Building, all the HVAC equipment and related mechanical systems serving such
Building (for which equipment and systems Tenant shall enter into a service
contract with a person or entity reasonably acceptable to Landlord), all doors,
door checks, windows, plate glass, door fronts, plumbing and sewage and other
utility facilities, fixtures, lighting, wall surfaces, floor surfaces and
ceiling surfaces of such Building and all other interior repairs, foreseen and
unforeseen, subject to Tenant's right to require Landlord to take over such
maintenance and repair obligations pursuant to Section 10.1(b), below.
(ii) If Tenant exercises its Phase 2B Expansion
Option, upon Landlord's delivery of Building 2 to Tenant, in addition to
Tenant's obligation to pay Tenant's Operating Cost Share as required by Section
7.1, during any period in which Tenant leases the entire Building 2, Tenant, at
its sole cost and expense, shall keep and maintain in good and sanitary order,
in a first class condition and repair, Building 2 and every part thereof,
wherever located, including, but not limited to the structural components of
Building 2, the roof, signs, exterior, interior, walls, ceiling, electrical
system, plumbing system, telephone and communications systems of such Building,
all the HVAC equipment and related mechanical systems serving such Building (for
which equipment and systems Tenant shall enter into a service contract with a
person or entity reasonably acceptable to Landlord), all doors, door checks,
windows, plate glass, door fronts, plumbing and sewage and other utility
facilities, fixtures, lighting, wall surfaces, floor surfaces and ceiling
surfaces of such Building and all other interior repairs, foreseen and
unforeseen, subject to Tenant's right to require Landlord to take over such
maintenance and repair obligations pursuant to Section 10.1(b), below.
(iii) During any period in which Tenant leases all of
both Buildings 1 and 2, Tenant shall keep and maintain in good and sanitary
order, in a first class condition and repair all Common Areas and every part
thereof, subject to Tenant's right to require Landlord to take over such
maintenance and repair obligations pursuant to Section 10.1(b), below.
21.
(iv) In the event Tenant shall fail to exercise its
Phase 2B Expansion Option by the date described in Section 1.2(a), and during
any period during the Lease Term in which Tenant leases less than an entire
Building, Tenant's repair and maintenance obligation shall be limited to (i) the
repair and maintenance of the interior of the Premises (being defined as the
floor surfaces, ceiling, interior wall surfaces, electrical, plumbing, HVAC
equipment exclusively serving the Premises and telephone and communications
systems within such interior), and (ii) the payment of Tenant's Operating Cost
Share, as required by Section 7.1.
(b) TENANT'S OPTION TO REQUIRE LANDLORD TO MAINTAIN AND REPAIR
BOTH BUILDINGS AND COMMON AREAS. During any period in which Tenant leases all of
both Building 1 and Building 2, Tenant may, at its option, to be exercised by
written notice to Landlord, require Landlord to take over the maintenance and
repair of both Building 1 and Building 2 and all Common Areas, in which event
Tenant's repair and maintenance obligation shall be limited to (i) the repair
and maintenance of the interior of the Premises (being defined as the floor
surfaces, ceiling, interior wall surfaces, electrical, plumbing, HVAC equipment
exclusively serving the Premises, telephone and communications systems within
such interior), and (ii) the payment of Tenant's Operating Cost Share, as
required by Section 7.1. Additionally, Operating Expenses shall under those
circumstances include the actual costs to Landlord of any third party property
management firm engaged by Landlord to manage the Buildings, up to a maximum
amount equal to five percent (5%) of Operating Expenses.
(c) LANDLORD'S REMEDY. If Tenant, after notice from Landlord,
fails to make or perform promptly any repairs or maintenance which are the
obligation of Tenant hereunder, Landlord shall have the right, but shall not be
required, to enter the Buildings and make the repairs or perform the maintenance
necessary to restore the Buildings to good and sanitary order, in a first class
condition and repair. In such case, immediately on demand from Landlord, the
cost of such repairs shall be due and payable by Tenant to Landlord.
(d) CONDITION UPON SURRENDER. At the expiration or sooner
termination of this Lease, Tenant shall surrender the Premises, including any
additions, alterations and improvements thereto, broom clean, in good and
sanitary order, in a first class condition and repair, free from Hazardous
Materials caused to be present by Tenant, its agents or invitees (it being
understood and agreed that Tenant shall have no responsibility for Hazardous
Materials that have migrated onto the Property through the air, water or soils),
ordinary wear and tear excepted, and delivered free of radioactive licenses or
other restrictions on use, first, however, removing all goods and effects of
Tenant and all fixtures and items required to be removed or specified to be
removed at Landlord's election pursuant to this Lease, and repairing any damage
caused by such removal. Tenant expressly waives any and all interest in any
personal property and trade fixtures not removed from the Premises by Tenant at
the expiration or termination of this Lease, agrees that any such personal
property and trade fixtures may, at Landlord's election, be deemed to have been
abandoned by Tenant, and authorizes Landlord (at its election and without
prejudice to any other remedies under this Lease or under applicable law) to
remove and either retain, store or dispose of such property at Tenant's cost and
expense, and Tenant waives all claims against Landlord for any damages resulting
from any such removal, storage, retention or disposal.
10.2 LANDLORD'S OBLIGATION FOR MAINTENANCE.
22.
(a) GOOD ORDER, CONDITION AND REPAIR. In the event that either
(i) Tenant shall have elected not to exercise the Phase 2B Expansion Option by
the date described in Section 1.2(a), or (ii) Tenant shall have exercised its
option to require Landlord to take over maintenance and repair of both the
Buildings and the Common Area pursuant to Section 10.1(b), above, Landlord, at
its cost and expense, but subject to Tenant's obligation to pay the Tenant's
Operating Cost Share as required by Section 7.1, shall keep and maintain in good
and sanitary order, in a first class condition and repair, all Common Areas and
each such Building and every part thereof, wherever located, including, but not
limited to the structural components of the Buildings, the roof, signs,
exterior, interior, walls, ceiling, electrical system, plumbing system,
telephone and communications systems of each such Building, all the HVAC
equipment and related mechanical systems serving each such Building, all doors,
door checks, windows, plate glass, door fronts, plumbing and sewage and other
utility facilities, fixtures, lighting, wall surfaces, floor surfaces and
ceiling surfaces of each such Building and all other interior repairs, foreseen
and unforeseen, (except the interior of the Premises and the systems designated
for Tenant's exclusive use required to be repaired and maintained by Tenant as
required by Section 10.1(a)(iv) above).
(b) NO ABATEMENT. There shall be no abatement of rent and no
liability of Landlord by reason of any injury to or interference with Tenant's
business arising from the making of any repairs, alterations or improvements in
or to any portion of the Premises or Common Areas, or in or to improvements,
fixtures, equipment and personal property therein.
(c) LANDLORDS' RIGHT OF ENTRY FOR REPAIRS. Landlord and
Landlord's agents shall have the right to enter upon the Premises, or any part
thereof, for the purpose of performing any repairs or maintenance Landlord is
permitted to make pursuant to this Lease, and of ascertaining the condition of
the Premises or whether Tenant is observing and performing Tenant's obligations
hereunder, all without unreasonable interference from Tenant or Tenant's agents.
Except for emergency maintenance or repairs, the right of entry contained in
this Section shall be exercisable at reasonable times, at reasonable hours and
on reasonable notice (which shall not be less than twenty-four (24) hours.
11. USE OF PROPERTY.
11.1 PERMITTED USE. Subject to Sections 11.3, and 11.4 hereof, Tenant
shall use the Premises solely for an office and laboratory research and
development facility, including (but not limited to) storage and use of small
laboratory animals, and other lawful purposes reasonably related to or
incidental to such specified uses (subject in each case to receipt of all
necessary approvals from the City and County in which the Property is located
and other governmental agencies having jurisdiction over the Buildings and uses
therein), and for no other purpose.
11.2 NO NUISANCE. Tenant shall not use the Premises for or carry on or
permit upon the Premises or any part thereof any offensive, noisy or dangerous
trade, business, manufacture, occupation, odor or fumes, or any nuisance or
anything against public policy, nor commit or allow to be committed any waste
in, on or about the Premises. Tenant shall not do or permit anything to be done
in or about the Premises, nor bring nor keep anything therein, which will in any
way cause the Premises to be uninsurable with respect to the insurance required
by this
23.
Lease or with respect to standard fire and extended coverage insurance with
vandalism, malicious mischief and riot endorsements.
11.3 COMPLIANCE WITH LAWS. Tenant shall not use the Premises or
permit the Premises to be used in whole or in part for any purpose or use
that is in violation of any applicable laws, ordinances, regulations or rules
of any governmental agency or public authority. Tenant shall keep the
Premises equipped with all safety appliances required by law, ordinance or
insurance on the Premises, or any order or regulation of any public
authority, because of Tenant's particular use of the Premises. Tenant shall
procure at its costs all licenses and permits required for Tenant's use of
the Premises. Tenant shall use the Premises in strict accordance with all
applicable ordinances, rules, laws and regulations and shall comply, at its
expense, with all requirements of all governmental authorities now in force
or which may hereafter be in force pertaining to the use of the Premises by
Tenant, including, without limitation, regulations applicable to noise,
water, soil and air pollution, and making such structural and nonstructural
alterations and additions thereto as may be required from time to time by
such laws, ordinances, rules, regulations and requirements of governmental
authorities or insurers of the Premises (collectively, "REQUIREMENTS")
because of Tenant's construction of improvements in or other particular use
of the Premises. The judgment of any court, or the admission by Tenant in any
proceeding against Tenant, that Tenant has violated any law, statute,
ordinance or governmental rule, regulation or requirement shall be conclusive
of such violation as between Landlord and Tenant.
11.4 ENVIRONMENTAL MATTERS.
(a) DEFINITION OF HAZARDOUS MATERIALS. For purposes of this
Lease, "HAZARDOUS MATERIALS" shall mean the substances included within the
definitions of the term "hazardous substance" under (i) the Comprehensive
Environmental Response, Compensation and Liability Act of 1980, as amended, 42
U.S.C. xx.xx. 9601 et seq., and the regulations promulgated thereunder, as
amended, (ii) the California Xxxxxxxxx-Xxxxxxx-Xxxxxx Hazardous Substance
Account Act, California Health & Safety Code xx.xx. 25300 et seq., and
regulations promulgated thereunder, as amended, (iii) the Hazardous Materials
Release Response Plans and Inventory Act, California Heath & Safety Code xx.xx.
2-5500 et seq., and regulations promulgated thereunder, as amended, and (iv)
petroleum; "HAZARDOUS WASTE" shall mean (i) any waste listed as or meeting the
identified characteristics of a "hazardous waste" under the Resource
Conservation and Recovery Act of 1976, 42 U.S.C. xx.xx. 6901 et seq., and
regulations promulgated pursuant thereto, as amended (collectively, "RCRA"),
(ii) any waste meeting the identified characteristics of "hazardous waste,"
"extremely hazardous waste" or "restricted hazardous waste" under the California
Hazardous Waste Control Law, California Health & Safety Code xx.xx. 25 100 et
seq., and regulations promulgated pursuant thereto, as amended (collectively,
the "CHWCL"), and/or (iii) any waste meeting the identified characteristics of
"medical waste" under California Health & Safety Code xx.xx. 25015-25027.8, and
regulations promulgated thereunder, as amended; and "HAZARDOUS WASTE FACILITY"
shall mean a hazardous waste facility as defined under the CHWCL.
(b) TENANT'S OBLIGATIONS RE: HAZARDOUS SUBSTANCES.
24.
(i) Tenant shall not cause or permit any Hazardous
Material or hazardous waste to be brought upon, kept, stored or used in or about
the Premises without the prior written consent of Landlord, which consent shall
not be unreasonably withheld, delayed or conditioned, except that Tenant, in
connection with its permitted use of the Premises as provided in Section 11.1,
may keep, store and use materials that constitute Hazardous Materials which are
customary for such permitted use, PROVIDED such Hazardous Materials are kept,
stored and used in quantities which are customary for such permitted use and are
kept, stored and used in full compliance with clauses (ii) and (iii) immediately
below.
(ii) Tenant shall comply with all applicable laws,
rules, regulations, orders, permits, licenses and operating plans of any
governmental authority with respect to the receipt, use, handling, generation,
transportation, storage, treatment and/or disposal of Hazardous Materials or
wastes by Tenant or its agents or employees.
(iii) Tenant shall not (A) operate on or about the
Premises any facility required to be permitted or licensed as a hazardous waste
facility or for which interim status as such is required, nor (B) store any
hazardous wastes on or about the Premises for ninety (90) days or more, nor (C)
conduct any other activities on or about the Premises that could result in the
Premises being deemed to be a "hazardous waste facility" (including, but not
limited to, any storage or treatment of Hazardous Materials or hazardous wastes
which could have such a result).
(iv) Tenant shall comply with all applicable laws,
rules, regulations, orders and permits relating to underground storage tanks
installed by Tenant or its agents or employees or at the request of Tenant
(including any installation, monitoring, maintenance, closure and/or removal of
such tanks) as such tanks are defined in California Health & Safety Code ss.
25281(x), including, without limitation, complying with California Health &
Safety Code xx.xx. 25280-25299.7 and the regulations promulgated thereunder, as
amended. Upon request by Landlord, Tenant shall furnish to Landlord copies of
all registrations and permits issued to or held by Tenant from time to time for
any and all underground storage tanks located on or under the Property.
Notwithstanding the foregoing, Tenant shall not install any underground storage
tanks at the Property without Landlord's prior written consent, which Landlord
may withhold in its reasonable discretion.
(v) Tenant shall not keep any trash, garbage, waste
or other refuse on the Premises except in sanitary containers and shall
regularly and frequently remove the same from the Premises. Tenant shall keep
all incinerators, containers or other equipment used for the storage or disposal
of such matter in a clean and sanitary condition. Tenant shall properly dispose
of all sanitary sewage and shall not use the sewage disposal system of the
Buildings for the disposal of anything except as permitted by any governmental
entity.
(vi) At reasonable times and upon reasonable prior
notice, prior to the expiration or earlier termination of the Lease Term,
Landlord shall have the right to conduct (a) an annual hazardous waste
investigation of the Premises and (b) if Landlord has reasonable cause to
believe that any contamination exists on, in, under, or around the Buildings or
the Premises, such other tests of the Premises and the Buildings as Landlord may
deem necessary or desirable to demonstrate whether contamination has occurred as
a result of Tenant's use of the
25.
Premises. Tenant shall be solely responsible for and shall defend, indemnify
and hold the Landlord, its agents and contractors harmless from and against
any and all claims, demands or actions, arising out of or in connection with
any removal, clean up, restoration and materials required hereunder to return
the Premises and any other property of whatever nature to their condition
existing prior to the time of any such contamination caused by Tenant, its
employees or agents. Landlord shall pay for the cost of the annual
investigation and other tests of the Premises, unless it has been determined
that Tenant, its employees or agents have caused contamination of the
Premises with Hazardous Materials, in which case Tenant shall bear such
costs. Tenant shall pay the reasonable costs required to perform or conduct
any closure study, exit audit or similar investigation required by then
applicable laws.
(vii) Tenant shall surrender the Premises at the
expiration or earlier termination of this Lease free of any Hazardous Materials
caused to be present by Tenant, its employees or agents and free and clear of
all judgments, liens or encumbrances relating thereto and, at its own cost and
expense, shall repair all damage and clean up or perform any remedial action
necessary relating to any Hazardous Materials caused to be present by Tenant,
its employees or agents. Tenant, at its sole cost and expense, shall, following
Landlord's request, remove any alterations or improvements that may be
contaminated or contain Hazardous Materials caused to be present by Tenant, its
employees or agents.
(c) TENANT'S INDEMNITY. Tenant shall indemnify, defend and
hold Landlord harmless from and against any and all claims, losses (including,
but not limited to, loss of rental income and diminution in value), damages,
liabilities, costs, legal fees and expenses of any sort arising out of or
relating to (A) any failure by Tenant to comply with any provisions of this
Section 11.4, or (B) any receipt, use handling, generation, transportation,
storage, treatment, release and/or disposal of any Hazardous Material or waste
or any radioactive material or radiation on or about the Premises as a proximate
result of Tenant's use of the Premises or as a result of any intentional or
negligent acts or omissions of Tenant or of any agent, employee, vendor or
invitee of Tenant.
(d) SURVIVAL. The provisions of this Section 11.4 shall
survive the termination of this Lease.
12. INSURANCE AND INDEMNITY.
12.1 LANDLORD'S INSURANCE. During the Lease Term, Landlord shall keep
and maintain, or cause to be kept and maintained, as part of Operating Expenses,
a policy or policies of insurance on the Buildings insuring the same against
loss or damage by the following risks: fire and extended coverage, vandalism,
malicious mischief, sprinkler leakage (if sprinklers are required in the
Buildings under applicable building code provisions, or are installed by Tenant
in the absence of such requirement) in amounts not less than ninety percent
(90%) of Full Replacement Value of the Buildings, (including both the Base
Building Work and the Tenant Improvements), or the amount of such insurance
Landlord's lender requires Landlord to maintain. The term "Full Replacement
Value" shall mean actual replacement cost, including changes required by new
building codes or ordinances (exclusive of the cost of excavation, foundations
and footings). Such insurance shall show, as a loss payee in respect of the
Premises, Landlord, Tenant and any ground lessor or mortgagee of Landlord
required to be named pursuant
26.
to its mortgage documents, as their interests may appear. Landlord, subject
to availability thereof and, as part of Operating Expenses, shall further
insure as Landlord deems appropriate coverage against flood, earthquake,
environmental remediation, loss or failure of building equipment, rental loss
for a period of eighteen (18) months for periods of repair or rebuild,
workmen's compensation insurance and fidelity bonds for employees employed to
perform services. Notwithstanding the foregoing, Landlord may, but shall not
be deemed required to, provide insurance as to any improvements installed by
Tenant or which are in addition to the Tenant Improvements, provided that
such coverage does not duplicate coverages maintained by Tenant. Landlord, as
part of the Operating Expenses, shall further carry General Liability with
General Aggregate Amount & Per Occurrence Limit insurance with a single loss
limit of not less than Five Million Dollars ($5,000,000) for death or bodily
injury, or property damage with respect to the Property.
12.2 TENANT'S INSURANCE.
(a) COMMERCIAL GENERAL LIABILITY INSURANCE. During the Lease
Term, Tenant shall keep and maintain, or cause to be kept and maintained, at
Tenant's sole cost and expense, a policy or policies of Commercial General
Liability insurance, showing, as an additional insured in respect of the
Premises, Landlord, Tenant, any management company retained by Landlord to
manage the Premises, any ground lessor and any lender of Landlord required to be
named pursuant to its loan documents. Such policy shall insure against any and
all claims, demands or actions for injuries to persons, loss of life and damage
to property occurring upon, in or about the Premises (including coverage for
liability caused by independent contractors of Tenant or subtenants of Tenant
working in or about the Premises), with minimum coverage in an amount not less
than a Five Million Dollars ($5,000,000) combined single limit with respect to
all bodily injury, death or property damage in any one accident or occurrence.
In the event of a claim, action or demand relating to the Premises, the amount
of any deductible or self-insured retention and/or any award in excess of the
policy limits shall be the sole responsibility of Tenant.
(b) TENANT'S RISK. Tenant assumes the risk of damage to any
fixtures, goods, inventory, merchandise and equipment, and Landlord shall not be
liable for injury to Tenant's business or any loss of income therefrom relative
to such damage except as more particularly heretofore set forth within this
Lease. Tenant at Tenant's cost may carry such insurance as Tenant desires for
Tenant's protection with respect to personal property of Tenant, business
interruption or other coverages.
(c) OTHER INSURANCE. In addition to all other insurance
required to be carried by Tenant hereunder, Tenant, throughout the Lease Term,
shall provide and keep in force at Tenant's sole cost and expense the following:
(i) Xxxxxxx'x Compensation insurance to the full
extent required under the laws of the State of California;
(ii) Insurance on Tenant's equipment, personal
property and other contents in, on or about the Premises insuring against loss
or damage by all risks covered by
27.
"special form" coverage, in amounts equal to ninety percent (90%) of their
full replacement value;
(iii) During the period of construction of the
Tenant's Work as described under Section 5.1 and Exhibit C and any other
construction by Tenant, Builder's All Risk Insurance with Completed Operations
Coverage, in such amounts and with such deductibles and other terms as Landlord
and/or the construction lender may reasonably require; and
(iv) Other nonduplicative insurance required by
Landlord, in types and amounts consistent with commercially reasonable practice.
12.3 INSURERS; PRIMARY INSURANCE. All policies of insurance provided
for herein shall be on an occurrence basis and shall be issued by insurance
companies with a general policy holder's rating of not less than A- and a
financial rating of not less than Class XV as rated in the most current
available "Best's" Insurance Reports. Such insurance companies shall be
qualified to do business in the State of California. All such policies
carried by Tenant shall name Landlord, any ground lessor and any lender (or
its successors and assigns) as additional insureds, and shall be for the
mutual and joint benefit and protection of Landlord, Tenant, any ground
lessor and Landlord's first mortgagee or beneficiary. All public liability
and property damage policies carried by Tenant shall contain a provision that
Landlord, although named as an insured, nevertheless shall be entitled to
recovery under said policies for any loss occasioned to it, its servants,
agents and employees by reason of the negligence of Tenant. As often as any
such policy shall expire or terminate, renewal or additional policies shall
be procured and maintained by Tenant in like manner and to like extent. All
policies of insurance must contain a provision that the company writing said
policy will give to Landlord thirty (30) days notice in writing in advance of
any cancellation or lapse. All public liability, property damage and other
casualty policies carried by Tenant shall be written as primary policies, not
contributing with and not in excess of coverage which Landlord may carry.
Tenant shall, upon request from Landlord from time to time, immediately
deliver to Landlord copies of all insurance policies (including the
declarations pages) in effect with respect to the Premises. All liability
policies shall contain endorsements for cross-liability, fire, legal
liability, broad form contractual liability, employer's automobile
non-ownership, products completed operation coverage and dram shop liability,
as applicable.
12.4 BLANKET POLICY. Notwithstanding anything to the contrary
contained within this Section 12, Tenant's obligations to carry the insurance
provided for herein may be brought within the coverage of a so-called blanket
policy or policies of insurance carried and maintained by Tenant; provided,
however, that Landlord, any ground lessor and any lender shall be named as an
additional insured thereunder as their interests appear, the coverage
afforded Landlord will not be reduced or diminished by reason of the use of
such blanket policy of insurance, and the requirements set forth herein are
otherwise satisfied.
12.5 DEDUCTIBLES. The deductible amounts, if any, with respect to all
insurance, which Tenant is required to maintain hereunder, shall not exceed
Twenty Thousand Dollars ($20,000) per claim or occurrence. The amount of the
deductibles, if any, within this limitation shall be a business decision by
Tenant; under no circumstances shall Landlord be required to reimburse Tenant
for the amount of any deductible incurred by Tenant in connection with any
insured
28.
event, except to the extent the event resulting in the claim was caused by
Landlord's or Landlord's agents' gross negligence or willful misconduct.
12.6 CERTIFICATES. Upon the execution and delivery of this Lease and
thereafter not less than thirty (30) days prior to the expiration dates of the
expiring policies theretofore maintained, Tenant shall deliver to Landlord
certificates of insurance with respect to the policies of insurance required by
this Lease or duplicate originals of all such policies. Landlord, upon
reasonable notice, may inspect and copy any policies of insurance, and any
records relating thereto kept and maintained by Tenant.
12.7 ADJUSTMENT IN THE EVENT OF LOSS. Except as otherwise provided
herein, all insurance proceeds payable with respect to any damage or destruction
to the Premises (but not with respect to Tenant's personal property, it being
understood that insurance proceeds allocable to Tenant's personal property shall
be payable directly to Tenant) shall be payable to Landlord and Tenant, jointly,
to be held in an interest bearing account. If Tenant and Landlord undertake to
repair said damage in accordance with Article 15 below, the proceeds shall be
made available to Tenant as to the Tenant Improvements and to Landlord as to the
Base Building Work and Common Area used to fund the reconstruction. In all other
events, the proceeds shall be the sole property of Landlord except otherwise
expressly provided herein. Landlord shall be entitled to compromise, adjust or
settle any and all claims with respect to insurance carried by it covering the
Premises. Each party agrees to execute and deliver to the other party such
releases, endorsements and other instruments as the other party reasonably may
require in order to compromise, adjust or settle any insurance claim which such
other party shall be entitled to compromise, adjust or settle pursuant to this
paragraph and to enable the other party or its designee to collect such
insurance proceeds as are payable in respect of such claim.
12.8 PRORATION UPON TERMINATION. If any of the insurance required to be
carried by Tenant hereunder is still in effect at the termination of this Lease,
Landlord may elect to terminate such insurance, or Landlord shall reimburse
Tenant for the pro rata portion of the premium paid by Tenant for such insurance
based upon the number of days remaining unexpired in such insurance.
12.9 WAIVER OF SUBROGATION. To the extent permitted by law and without
affecting the coverage provided by insurance required to be maintained
hereunder, Landlord and Tenant each waive any right to recover against the other
with respect to (i) damage to property, (ii) damage to the Premises or any part
thereof, or (iii) claims arising by reason of any of the foregoing, but only to
the extent that any of the foregoing damages and claims under clauses (i)-(iii)
hereof are covered, and only to the extent of such coverage, by casualty
insurance actually carried by either Landlord or Tenant. This provision is
intended to waive fully, and for the benefit of each party, any rights and
claims which might give rise to a right of subrogation in any insurance carrier.
Each party shall procure a clause or endorsement on any casualty insurance
policy denying to the insurer rights of subrogation against the other party to
the extent rights have been waived by the insured prior to the occurrence of
injury or loss. Coverage provided by insurance maintained by Tenant shall not be
limited, reduced or diminished by virtue of the subrogation waiver herein
contained.
29.
12.10 INDEMNIFICATION.
(a) TENANT'S INDEMNIFICATION OBLIGATIONS. Tenant shall
indemnify, defend, and hold Landlord and its lenders, agents, employees,
directors, officers, managers, members, partners, affiliates, independent
contractors, and property managers (collectively, "LANDLORD'S AGENTS" or
"AGENTS") harmless from and against any and all claims, demands, liability,
loss or damage, whether for injury to or death of persons or damage to real
or personal property, arising out of or in connection with the Premises,
Tenant's use of the Premises, any activity, work, or other thing done,
permitted, or suffered by Tenant in or about the Buildings, or arising from
any reason or cause whatsoever in connection with the use or occupancy of the
Premises by any party during the Term of this Lease, except to the extent
that the event giving rise to the claim, demand, liability, loss or damage
was caused by the gross negligence or willful misconduct of Landlord or
Landlord's Agents. Tenant shall further indemnify, defend, and hold Landlord
and Landlord's Agents harmless against and from any and all claims arising
from any breach or default in the performance of any obligation on Tenant's
part to be performed under the terms of this Lease, or arising from any act
or negligence of Tenant or any officer, agent, employee, guest, or invitee of
Tenant, and from and against all costs, attorney's fees, expenses, and
liabilities incurred as a result of any such claim or any action or
proceeding brought thereon. In any case, action, or proceeding brought
against Landlord or Landlord's Agents by reason of any such claim, Tenant,
upon notice from Landlord, shall defend the same at Tenant's expense by
counsel reasonably satisfactory to Landlord. Tenant, as a material part of
the consideration to Landlord, hereby assumes all risk of damage to property
or injury to persons in, upon, or about the Premises from any cause arising
prior to the later of the termination of this Lease or the date Tenant has
performed all obligations under Section 10.1(d) and is no longer in
possession of the Premises (except for such damage or injury caused by
Landlord's or Landlord's Agents' willful misconduct or gross negligence), and
Tenant hereby waives all claims in respect thereof against Landlord and
Landlord's Agents. Tenant's obligation to indemnify under this paragraph
shall include attorney's fees, investigation costs, and other reasonable
costs, expenses, and liabilities incurred by Landlord and Landlord's Agents.
If the ability of Tenant to use the Premises or the Buildings is interrupted
for any reason, Landlord and Landlord's Agents shall not be liable to Tenant
for any loss or damages occasioned by such loss of use, except to the extent
such loss or damages is caused by Landlord's or its Agents' willful
misconduct or gross negligence.
(b) LANDLORD'S INDEMNIFICATION OBLIGATIONS. Landlord shall
indemnify, defend and hold Tenant and its members, partners, shareholders,
officers, directors, agents and employees harmless from any and all liability
for injury to or death of any person, or loss of or damage to the property of
any person, and all actions, claims, demands, costs (including, without
limitation, reasonable attorneys' fees), damages or expenses of any kind arising
therefrom which may be brought or made against Tenant or which Tenant may pay or
incur, to the extent such liabilities or other matters arise in, on or about the
Premises by reason of the gross negligence or willful misconduct or omission by
Landlord or Landlord's Agents. Landlord shall further indemnify, defend, and
hold Tenant and its members, partners, shareholders, officers, directors, agents
and employees harmless against and from any and all claims arising from any
breach or default in the performance of any obligation on Landlord's part to be
performed under the terms of this Lease, and from and against all costs,
attorney's fees, expenses, and liabilities incurred as a result of any such
claim or any action or proceeding brought thereon. In any case, action, or
proceeding brought against Tenant or its members, partners, shareholders,
officers, directors,
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agents and employees by reason of any such claim, Landlord, upon notice from
Tenant, shall defend the same at Landlord's expense by counsel reasonably
satisfactory to Tenant.
12.11 LIMITATION ON LANDLORD LIABILITY. Neither Landlord nor Landlord's
Agents shall be liable for loss or damage to any property by theft or otherwise,
or for any injury to or damage to persons or property resulting from fire,
explosion, falling plaster, steam, gas, electricity, water, or rain which may
leak from any part of the Buildings or from the pipes, appliances, or plumbing
works therein or from the roof, street, or subsurface or from any other place
resulting from dampness or any other cause whatsoever, except to the extent
caused by the gross negligence or willful misconduct of Landlord or Landlord's
Agents. Neither Landlord nor Landlord's Agents, shall be liable for interference
with or loss of business by Tenant. Tenant shall give prompt written notice to
Landlord in case of fire or accidents in the Premises or in the Buildings or of
defects therein or in the fixtures or equipment belonging to Landlord. If
Landlord is in default of this Lease, and as a consequence, Tenant recovers a
money judgment against Landlord, the judgment shall be satisfied only out of the
proceeds of sale received on execution of the judgment and levy against the
right, title, and interest of Landlord in the Premises, and out of rent or other
income from the Premises receivable by Landlord or out of the consideration
received by Landlord from the sale or other disposition of all or any part of
Landlord's right, title, and interest in the Premises. Landlord's Agents shall
not be personally liable for any deficiency except to the extent liability is
based upon willful misconduct. If Landlord is a partnership, joint venture, or
limited liability company, the partners or members of such partnership or
limited liability company, as the case may be, shall not be personally liable
and no partner or member of Landlord (or of any affiliated entity) shall be sued
or named as a party in any suit or action, or service of process be made against
any partner or member of Landlord (or of any affiliated entity), except as may
be necessary to secure jurisdiction of the partnership, joint venture, or
limited liability company or to the extent liability is caused by willful
misconduct. If Landlord is a corporation, the shareholders, directors, officers,
employees, and/or agents of such corporation shall not be personally liable and
no shareholder, director, officer, employee, or agent of Landlord shall be sued
or named as a party in any suit or action, or service of process be made against
any shareholder, director, officer, employee or agent of Landlord, except as may
be necessary to secure jurisdiction of the corporation. No partner, member,
shareholder, director, employee, or agent of Landlord (or of any affiliated
entity) shall be required to answer or otherwise plead to any service of process
and no judgment will be taken or writ of execution levied against any partner,
shareholder, director, employee, or agent of Landlord.
13. SUBLEASE AND ASSIGNMENT.
13.1 ASSIGNMENT AND SUBLEASE OF BUILDING.
(a) CONSENT REQUIRED. Except in connection with a Permitted
Transfer, Tenant shall neither voluntarily nor by operation of law assign, sell,
encumber, pledge or otherwise transfer all or any part of Tenant's leasehold
estate hereunder, or permit any other person (excepting Tenant's agents and
employees) to occupy the Premises or any portion thereof, without Landlord's
prior written consent, which consent shall be not be unreasonably withheld,
delayed or conditioned. Consent by Landlord to one or more assignments of this
Lease or to one or more sublettings of the Premises shall not constitute a
waiver of Landlord's right to require
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consent to any subsequent assignment, subletting or other transfer. If Tenant
is a corporation, unincorporated association or partnership, the transfer,
assignment or hypothecation of any stock or interest in such corporation,
association or partnership in the aggregate in excess of twenty-five percent
(25%) of all outstanding stock or interests, or liquidation thereof, shall be
deemed an assignment within the meaning and provisions of this section and
the sale of all or substantially all of the assets of Tenant shall be deemed
an assignment within the meanings and provisions of this section. The
foregoing sentence shall not apply to: (i) any corporation or partnership
which is a reporting company under the Securities Exchange Act of 1934 (the
"1934 Act") or (ii) a sale to an entity with a net worth, as designated in
its most recent financial statement (no older than 3 months), equal to or
greater than Tenant's net worth on the Effective Date. Tenant shall reimburse
Landlord for all of Landlord's reasonable costs and attorneys' fees incurred
in conjunction with the processing and documentation of any required consent
to assignment, subletting, transfer, change of ownership or hypothecation of
this Lease or Tenant's interest in and to the Premises, not to exceed one
thousand dollars ($1000) per request plus reasonable out-of-pocket expenses
payable to third parties. Any purported sublease or assignment of Tenant's
interest in this Lease requiring but not having received Landlord's consent
thereto (to the extent such consent is required hereunder) shall be void.
(b) PERMITTED TRANSFERS. Notwithstanding the foregoing, (i)
any bona fide financing or capitalization, including a public offering of the
common stock of Tenant, shall not be deemed to be an assignment hereunder; and
(ii) Tenant shall have the right to assign this Lease or sublet the Buildings,
or any portion thereof, without Landlord's consent, to any Affiliate of Tenant,
or to any entity which results from a merger, reorganization or consolidation
with Tenant, or to any entity which acquires substantially all of the stock or
assets of Tenant as a going concern (hereinafter each a "PERMITTED TRANSFER").
For purposes of the preceding sentence, an "AFFILIATE" of Tenant shall mean any
entity in which Tenant owns at least a twenty five percent (25%) equity
interest, any entity which owns at least a twenty five percent (25%) equity
interest in Tenant and/or any entity which is related to Tenant by a chain of
ownership interests involving at least twenty five percent (25%) equity interest
at each level in the chain. Landlord shall have no right to terminate this Lease
in connection with, and shall have no right to any sums or other economic
consideration resulting from, any Permitted Transfer. The transferee under such
Permitted Transfer shall be and remain subject to all of the terms and
provisions of this Lease.
(c) CONSENT REQUIRED. Landlord's consent may be based upon a
determination that the same type, class, nature and quality of business,
services, management and financial soundness of ownership shall exist after the
proposed assignment or subletting and, provided further, that each and every
covenant, condition and obligation imposed upon Tenant by this Lease and each
and every right, remedy and benefit afforded Landlord by this Lease and the
underlying purpose of this Lease is not thereby impaired or diminished. The
determination by Landlord as to whether consent will be granted in any specific
instance may be based on, without limitation, the following factors, which shall
be in Landlord's reasonable discretion: (a) whether the transferee's use of the
Premises will be compatible with the provisions of this Lease; (b) the financial
capacity of the transferee; (c) the business reputation of the transferee; (d)
the quality and type of the business operations of the transferee; and (e) the
business experience of the proposed transferee. This list of factors is not
intended to be exclusive, and Landlord may rely on such other basis for judgment
as may apply from time to time.
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(d) PROCEDURE TO OBTAIN CONSENT. If Tenant desires at any time
to assign this Lease or to sublet the Premises or any portions thereof, it first
shall notify Landlord of its desire to do so and shall submit in writing to
Landlord (i) the name and legal composition of the proposed subtenant or
assignee; (ii) the nature of the proposed subtenant's or assignee's business to
be carried on in the Premises; (iii) the terms and provisions of the proposed
sublease or assignment and all transfer documents relating to the proposed
transfer; and (iv) such reasonable business and financial information as
Landlord may request concerning the proposed subtenant or assignee. Any request
for Landlord's approval of a sublease or assignment shall be accompanied with a
check in such reasonable amount as Landlord shall advise for the cost of review
and preparation, including reasonable attorneys' fees, of any documents relating
to such proposed transfer, not to exceed one thousand dollars ($1000) for each
transfer plus reasonable out-of-pocket expenses payable to third parties. The
provisions and conditions of any proposed sublease or assignment must not be
inconsistent with any provision of this Lease, and must address all matters
contained in this Lease. In addition, the transferee must expressly assume all
of the obligations of Tenant under this Lease. Notwithstanding the assumption of
the obligations of this Lease by the transferee, no subletting or assignment,
even with the consent of Landlord, shall relieve Tenant of its continuing
obligation to pay the rent and perform all the other obligations to be performed
by Tenant hereunder. The obligations and liability of Tenant hereunder shall
continue notwithstanding the fact that Landlord may accept rent and other
performance from the transferee. The acceptance of rent by Landlord from any
other person shall not be deemed to be a waiver by Landlord of any provision of
this Lease or to be a consent to any assignment or subletting.
13.2 RIGHTS OF LANDLORD: EFFECT OF LANDLORD'S CONSENT. Consent by
Landlord to one or more assignments of this Lease, or to one or more sublettings
of the Buildings or any portion thereof, or collection of rent by Landlord from
any assignee or sublessee, shall not operate to exhaust Landlord's rights under
this Article 13, nor constitute consent to any subsequent assignment or
subletting. No assignment of Tenant's interest in this Lease and no sublease
shall relieve Tenant of its obligations hereunder, notwithstanding any waiver or
extension of time granted by Landlord to any assignee or sublessee, or the
failure of Landlord to assert its rights against any assignee or sublessee, and
regardless of whether Landlord's consent thereto is given or required to be
given hereunder. In the event of a default by any assignee, sublessee or other
successor of Tenant in the performance of any of the terms or obligations of
Tenant under this Lease, Landlord may proceed directly against Tenant without
the necessity of exhausting remedies against any such assignee, sublessee or
other successor.
13.3 ADVERTISING. In no event shall Tenant display on or about the
Premises any signs for the purpose of advertising the Premises for assignment,
subletting or other transfer of rights.
13.4 WRITING REQUIRED. Each Permitted Transfer, permitted assignment or
sublease shall be consummated by an instrument in writing executed by the
transferor and transferee in form satisfactory to Landlord. Each assignee and
subtenant shall agree in writing for the benefit of the Landlord herein to
assume all obligations of Tenant hereunder which are applicable to the space
subject to the assignment or sublease and any associated common areas, including
the payment of all amounts due or to become due under this Lease directly to the
Landlord. At least one executed copy of such written instrument shall be
delivered to the Landlord.
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13.5 TRANSFER PREMIUMS. If Tenant assigns or sublets its rights under
this Lease, Tenant shall pay to Landlord as additional rent, after Tenant has
recovered any relevant leasing commissions, costs of tenant improvements and
other expenses of the assignment or sublease, the unamortized (over the Term of
the Lease) costs of any tenant improvements consented to by Landlord paid for by
Tenant prior to such Transfer, one-half (1/2) of all such excess consideration
due and payable to Tenant from said assignment or sublease to the extent said
consideration exceeds the rent or a pro rata portion of the rent, in the event
only a portion of the Premises is sublet or assigned.
14. RIGHT OF ENTRY AND QUIET ENJOYMENT.
14.1 RIGHT OF ENTRY. Landlord and its authorized representatives shall
have the right to enter the Buildings at any time during the Term of this Lease
during normal business hours when accompanied by a representative of Tenant and
upon not less than twenty-four (24) hours prior notice, except in the case of
emergency (in which event no notice and no accompaniment shall be required and
entry may be made at any time), for the purpose of inspecting and determining
the condition of the Buildings or for any other proper purpose including,
without limitation, to make repairs, replacements or improvements which Landlord
may be entitled to make hereunder, to show the Buildings to prospective
purchasers, lenders and investors, to show the Buildings to prospective tenants
(but only during the final eighteen (18) months of the Term of this Lease), and
to post notices of nonresponsibility. Landlord shall not be liable for
inconvenience, annoyance, disturbance, loss of business, quiet enjoyment or
other damage or loss to Tenant by reason of making any repairs or performing any
work upon the Premises or by reason of erecting or maintaining any protective
barricades in connection with any such work, and the obligations of Tenant under
this Lease shall not thereby be affected in any manner whatsoever, PROVIDED,
HOWEVER, Landlord shall use its best reasonable efforts to minimize the
inconvenience to Tenant's normal business operations caused thereby.
14.2 QUIET ENJOYMENT. Landlord covenants that Tenant, upon paying the
rent and performing its obligations hereunder and subject to all the terms and
conditions of this Lease, shall peacefully and quietly have, hold and enjoy the
Premises throughout the Term of this Lease, or until this Lease is terminated as
provided by this Lease.
15. CASUALTY AND TAKING.
15.1 DAMAGE OR DESTRUCTION.
(a) TERMINATION RIGHTS. If the Buildings, or the Common Areas
necessary for Tenant's use and occupancy of the Premises, are damaged or
destroyed in whole or in part under circumstances in which (i) repair and
restoration is permitted under applicable governmental laws, regulations and
building codes then in effect and (ii) repair and restoration reasonably can be
completed within a period of one (1) year (or, in the case of an occurrence
during the last year of the Term of this Lease, within a period of sixty (60)
days) following the date of the occurrence, then Landlord, as to the Base
Building Work and Common Areas and the Tenant Improvements, shall commence and
complete, with all due diligence and as promptly as is reasonably practicable
under the conditions then existing, all such repair and restoration as may be
required to return the affected portions of the Property to a condition
comparable to that
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existing immediately prior to the occurrence. In the event of damage or
destruction the repair of which is not permitted under applicable
governmental laws, regulations and building codes then in effect, or if such
damage or destruction (despite being repaired to the extent then permitted
under applicable governmental laws, regulations and building codes) would
materially impair Tenant's ability to conduct its business in the Premises,
then either party may terminate this Lease as of the date of the occurrence
by giving written notice to the other within sixty (60) days after the date
of the occurrence; if neither party timely elects such termination, or if
such damage or destruction after being repaired would not materially impair
Tenant's ability to conduct its business in the Premises, then this Lease
shall continue in full force and effect, except that there shall be an
equitable adjustment in monthly Minimum Rental and of Tenant's Operating Cost
Share, based upon the extent to which Tenant's ability to conduct its
business in the Premises is impaired, and Landlord shall restore the Common
Areas and Base Building Work and Tenant Improvements to a complete
architectural whole and to a functional condition. In the event of damage or
destruction which cannot reasonably be repaired within one (1) year (or, in
the case of an occurrence during the last twenty-four (24) months of the Term
of this Lease, within a period of sixty (60) days) following the date of the
occurrence, then either Landlord or Tenant, at its election, may terminate
this Lease as of the date of the occurrence by giving written notice to the
other within thirty (30) days after the date of the occurrence; if neither
party timely elects such termination, then this Lease shall continue in full
force and effect and Landlord shall repair and restore applicable portions of
the Property in accordance with the first sentence of this Section
15.1.Landlord and Tenant agree that the terms of this Lease shall govern the
effect of any damage to or destruction of the Project with respect to
termination of this Lease and hereby waive the provisions of any present or
future statute to the extent inconsistent herewith.
(b) LIMITATIONS ON PARTIES' OBLIGATIONS. The obligations of
Landlord pursuant to Section 15.1(a) are subject to the following limitations:
(i) If the occurrence results from a peril which
is required to be insured pursuant to Section 12.1(c) above, the obligations
of Landlord shall not exceed the amount of insurance proceeds received from
insurers (or, in the case of any failure to maintain required insurance,
proceeds that reasonably would have been available if the required insurance
had been maintained) by reason of such occurrence, plus the amount of the
permitted deductible (PROVIDED that Landlord shall be obligated to use its
best efforts to recover any available proceeds from the insurance which it is
required to maintain pursuant to the provisions of Article 12, and, if such
proceeds (including, in the case of a failure to maintain required insurance,
any proceeds that reasonably would have been available) are insufficient,
either party may terminate the Lease unless the other party promptly elects
and agrees, in writing, to contribute the amount of the shortfall; and
(ii) If the occurrence results from a peril which is
not required to be insured pursuant to Article 12 above and is not actually
insured, Landlord shall be required to repair and restore the Base Building Work
and Common Areas and Tenant Improvements to the extent necessary for Tenant's
continued use and occupancy of the Buildings, PROVIDED that Landlord's
obligation to repair and restore shall not exceed an amount equal to ten percent
(10%) of the replacement cost of the Base Building Work and Common Area
improvements and ten percent (10%) of the replacement cost of the Tenant
Improvements; if the cost to repair and
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restore exceeds such amount, then Landlord may terminate this Lease unless
the Tenant promptly elects and agrees, in writing, to contribute the amount
of the shortfall.
(c) ENTITLEMENT TO INSURANCE PROCEEDS. If this Lease is
terminated pursuant to the foregoing provisions of this Section 15.1 following
an occurrence which is a peril actually insured or required to be insured
against pursuant to Article 12, Landlord and Tenant agree (and any Lender shall
be asked to agree) that such insurance proceeds, after repayment of the loan,
shall be allocated between Landlord and Tenant in a manner which fairly and
reasonably reflects their respective ownership rights under this Lease, as of
the termination or expiration of the Term of this Lease, with respect to the
improvements, fixtures, equipment and other items to which such insurance
proceeds are attributable.
(d) ABATEMENT OF RENT. From and after the date of an
occurrence resulting in damage to or destruction of the Buildings or of the
Common Areas necessary for Tenants use and occupancy of the Buildings, and
continuing until the earlier of the date repair and restoration thereof are
completed or the date on which rental loss insurance payments cease, there shall
be an equitable abatement of Minimum Rental and of Tenant's Operating Cost Share
of Operating Expenses based upon the degree to which Tenant's ability to conduct
its business in the Buildings is impaired.
15.2 CONDEMNATION.
(a) TERMINATION RIGHTS. If during the Term of this Lease the
Property or Improvements or any substantial part of either, is taken by eminent
domain or by reason of any public improvement or condemnation proceeding, or in
any manner by exercise of the right of eminent domain (including any transfer in
avoidance of an exercise of the power of eminent domain), then (i) this Lease
shall terminate as to the entire affected Premises at Landlord's election by
written notice given to Tenant within sixty (60) days after the taking has
occurred, and (ii) this Lease shall terminate as to the entire affected Premises
at Tenant's election, by written notice given to Landlord within thirty (30)
days after the nature and extent of the taking have been finally determined, if
the portion of the Premises taken is of such extent and nature as substantially
to handicap, impede or permanently impair Tenant's use of the balance of the
Premises, and (iii) this Lease shall remain in full force and effect as to the
remaining portion of the Premises. If Tenant elects to terminate this Lease, as
to the affected Premises, Tenant shall also notify Landlord of the date of
termination, which date shall not be earlier than thirty (30) days nor later
than ninety (90) days after Tenant has notified Landlord of Tenant's election to
terminate, except that this Lease shall terminate on the date of taking if such
date falls on any date before the date of termination designated by Tenant. If
neither party elects to terminate this Lease as hereinabove provided, this Lease
shall continue in full force and effect (except that there shall be an equitable
abatement of Minimum Rental and of Tenant's Operating Cost Share of Operating
Expenses based upon the degree to which Tenant's ability to conduct its business
in the Premises is impaired), Landlord shall restore the Base Building Work and
Common Area and Tenant Improvements to a complete architectural whole and a
functional condition and as nearly as reasonably possible to the condition
existing before the taking. In connection with any such restoration, Landlord
shall use its best efforts (including, without limitation, any necessary
negotiation or intercession with its lender, if any) to ensure that any
severance damages or other condemnation awards intended to provide compensation
for rebuilding or restoration costs are
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promptly collected and made available to Tenant and Landlord subject only, to
such payment controls as either party or its lender may reasonably require in
order to ensure the proper application of such proceeds toward the
restoration of the Improvements. Each party waives the provisions of Code of
Civil Procedure Section 1265.130, allowing either party to petition the
Superior Court to terminate this Lease in the event of a partial condemnation
of the Buildings or Property.
(b) LIMITATIONS ON PARTIES' OBLIGATIONS. The obligations of
Landlord pursuant to Section 15.2(a) are subject to the following limitations:
(i) Landlord's obligation to repair and restore shall
not exceed, net of any condemnation awards or other proceeds available for and
allocable to such restoration as contemplated in Section 15.2(a), an amount
equal to ten percent (10%) of the replacement cost of the Base Building Work and
Common Area improvements and an amount equal to ten percent (10%) of the
replacement cost of the Tenant Improvements; if the replacement cost exceeds
such amount, then Landlord may terminate this Lease unless Tenant promptly
elects and agrees, in writing, to contribute the amount of the shortfall; and
(ii) If this Lease is terminated pursuant to the
foregoing provisions of this Section 15.2, or if this Lease remains in effect
but any condemnation awards or other proceeds become available as compensation
for the loss or destruction of any of the Improvements, then Landlord and Tenant
agree (and any Property lender shall be asked to agree) that such proceeds shall
be allocated between Landlord and Tenant, respectively, in the respective
proportions in which Landlord and Tenant would have shared, under Section
15.1(c), the proceeds of any insurance proceeds following loss or destruction of
the applicable Improvements by an insured casualty.
15.3 RESERVATION OF COMPENSATION. Landlord reserves, and Tenant waives
and assigns to Landlord, all rights to any award or compensation for damage to
the Improvements and the Property, but not the leasehold estate created hereby,
accruing by reason of any taking in any public improvement, condemnation or
eminent domain proceeding or in any other manner by exercise of the right of
eminent domain or of anything lawfully done by public authority, except that (a)
Tenant shall be entitled to any and all compensation or damages expressly
awarded to Tenant on account of Tenant's loss of the leasehold estate and
Tenant's moving expenses, trade fixtures and equipment and any leasehold
improvements installed by Tenant in the Buildings at its own sole expense, but
only to the extent Tenant would have been entitled to remove such items at the
expiration of the Term of this Lease and then only to the extent of the then
remaining unamortized value of such improvements computed on a straight-line
basis over the Term of this Lease, and (b) any condemnation awards or proceeds
described in Section 15.2(b)(ii) shall be allocated and disbursed in accordance
with the provisions of Section 15.2(b)(ii), notwithstanding any contrary
provisions of this Section 15.3.
15.4 RESTORATION OF IMPROVEMENTS. In connection with any repair or
restoration of Improvements following a casualty or taking as hereinabove set
forth, the party responsible for such repair or restoration shall, to the extent
possible, return such Improvements to a condition substantially equal to that
which existed immediately prior to the casualty or taking. To the extent such
party wishes to make material modifications to such Improvements, such
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modifications shall be subject to the prior written approval of the other
party (not to be unreasonably withheld, delayed or conditioned), except that
no such approval shall be required for modifications that are required by
applicable governmental authorities as a condition of the repair or
restoration, unless such required modifications would substantially impair or
impede Tenant's conduct of its business in the Buildings (in which case any
such modifications in Base Building Work shall require Tenant's consent, not
unreasonably withheld, delayed or conditioned) or would materially affect the
exterior appearance, the structural integrity or the mechanical or other
operating systems of the Buildings (in which case any such modifications
shall require Tenant's consent, not to be unreasonably withheld, delayed or
conditioned).
16. DEFAULT.
16.1 EVENTS OF DEFAULT. The occurrence of any of the following shall
constitute an event of default on the part of Tenant:
(a) NONPAYMENT. Failure to pay, when due, any amount payable
to Landlord hereunder, such failure continuing for a period of five (5) business
days after written notice of such failure;
(b) OTHER OBLIGATIONS. Failure to perform any obligation,
agreement or covenant under this Lease other than those matters specified in
subsection (a) hereof, such failure continuing for thirty (30) days after
written notice of such failure; PROVIDED, HOWEVER, that if such failure is
curable in nature but cannot reasonably be cured within such 30-day period, then
Tenant shall not be in default if, and so long as, Tenant promptly (and in all
events within such 30-day period) commences such cure and thereafter diligently
pursues such cure to completion; and PROVIDED FURTHER HOWEVER, that any such
notice shall be in lieu of, and not in addition to, any notice required under
California Code of Civil Procedure Section 1161 et seq., as amended from time to
time. Notwithstanding the foregoing, if any such failure on the part of Tenant
affects or threatens to affect the health or safety of others, or would result
in the destruction of property, Tenant shall immediately begin to cure and shall
use its diligent and best efforts in pursuing said cure to completion (it being
understood and agreed that Landlord shall not be entitled to exercise any remedy
to terminate this Lease unless and until such failure shall have continued for
thirty (30) days after written notice of such failure);
(c) GENERAL ASSIGNMENT. A general assignment by Tenant for the
benefit of creditors;
(d) BANKRUPTCY. The filing of any voluntary petition in
bankruptcy by Tenant, or the filing of an involuntary petition by Tenant's
creditors, which involuntary petition remains undischarged for a period of sixty
(60) days. In the event that under applicable law the trustee in bankruptcy or
Tenant has the right to affirm this Lease and continue to perform the
obligations of Tenant hereunder, such trustee or Tenant shall, in such time
period as may be permitted by the bankruptcy court having jurisdiction, cure all
defaults of Tenant hereunder outstanding as of the date of the affirmance of
this Lease and provide to Landlord such adequate assurances as may be necessary
to ensure Landlord of the continued performance of Tenant's obligations under
this Lease. Specifically, but without limiting the generality of the foregoing,
such adequate assurances must include assurances that the Buildings continue to
be operated
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only for the use permitted hereunder. The provisions hereof are to assure
that the basic understandings between Landlord and Tenant with respect to
Tenant's use of the Premises and the benefits to Landlord therefrom are
preserved, consistent with the purpose and intent of applicable bankruptcy
laws;
(e) RECEIVERSHIP. The employment of a receiver appointed by
court order to take possession of substantially all of Tenants assets or its
interest in the Buildings, if such receivership remains undissolved for a period
of sixty (60) days;
(f) ATTACHMENT. The attachment, execution or other judicial
seizure of all or substantially all of Tenant's assets or its interest in the
Buildings, if such attachment or other seizure remains undismissed or
undischarged for a period of sixty (60) days after the levy thereof; or
(g) INSOLVENCY. The admission by Tenant in writing of its
inability to pay its debts as they become due, the filing by Tenant of a
petition seeking any reorganization or arrangement, composition, readjustment,
liquidation, dissolution or similar relief under any present or future statute,
law or regulation, the filing by Tenant of an answer admitting or failing timely
to contest a material allegation of a petition filed against Tenant in any such
proceeding or, if within sixty (60) days after the commencement of any
proceeding against Tenant seeking any reorganization or arrangement,
composition, readjustment, liquidation, dissolution or similar relief under any
present or future statute, law or regulation, such proceeding shall not have
been dismissed.
16.2 REMEDIES UPON TENANT'S DEFAULT.
(a) RE-ENTRY; TERMINATION. Upon the occurrence of any event of
default described in Section 16.1 hereof, Landlord, in addition to and without
prejudice to any other rights or remedies it may have, shall have the immediate
right to re-enter the Buildings or any part thereof and repossess the same,
expelling and removing therefrom all persons and property (which property may be
stored in a public warehouse or elsewhere at the cost and risk of and for the
account of Tenant). In addition to or in lieu of such re-entry, and without
prejudice to any other rights or remedies it may have, Landlord shall have the
right either (i) to terminate this Lease and recover from Tenant all damages
incurred by Landlord as a result of Tenant's default, as hereinafter provided,
or (ii) to continue this Lease in effect and recover rent and other charges and
amounts as they become due.
(b) CONTINUATION OF LEASE. Even if Tenant has breached this
Lease and abandoned the Buildings, this Lease shall continue in effect for so
long as Landlord does not terminate Tenant's right to possession and Landlord
may enforce all of its rights and remedies under this Lease, including the right
to recover rent as it becomes due, and Landlord, without terminating this Lease,
may exercise all of the rights and remedies of a lessor under California Civil
Code Section 1951.4 (lessor may continue lease in effect after lessee's breach
and abandonment and recover rent as it becomes due, if lessee has right to
sublet or assign, subject only to reasonable limitations), or any successor Code
section. Acts of maintenance, preservation or efforts to relet the Buildings or
the appointment of a receiver upon application of
39.
Landlord to protect Landlord's interests under this Lease shall not
constitute a termination of Tenant's right to possession.
(c) REMEDIES. If Landlord terminates this Lease pursuant to
this Section 16.2, Landlord shall have all of the rights and remedies of a
landlord provided by Section 1951.2 of the Civil Code of the State of
California, or any successor Code section, which remedies include Landlord's
right to recover from Tenant (i) the worth at the time of award of the unpaid
rent and additional rent and Tenant's Operating Cost Share of Operating
Expense which had been earned at the time of termination, (ii) the worth at
the time of award of the amount by which the unpaid rent and additional rent
and Tenant's Operating Cost Share of Operating Expense which would have been
earned after termination until the time of award exceeds the amount of such
rental loss that Tenant proves could have been reasonably avoided, (iii) the
worth at the time of award of the amount by which the unpaid rent and
additional rent and Tenant's Operating Cost Share of Operating Expense for
the balance of the Term after the time of award exceeds the amount of such
rental loss that Tenant proves could be reasonably avoided, and (iv) any
other amount reasonably necessary to compensate Landlord for all the
detriment proximately caused by Tenant's failure to perform its obligations
under this Lease or which in the ordinary course of things would be likely to
result therefrom, including, but not limited to, the cost of recovering
possession of the Buildings, expenses of reletting, including necessary
repair, renovation and alteration of the Buildings, reasonable attorneys'
fees, and other reasonable costs. The "worth at the time of award" of the
amounts referred to in clauses (i) and (ii) above shall be computed by
allowing interest at twelve percent (12%) per annum from the date such
amounts accrued to Landlord. The "worth at the time of award" of the amounts
referred to in clause (iii) above shall be computed by discounting such
amount at one percentage point above the discount rate of the Federal Reserve
Bank of San Francisco at the time of award.
16.3 REMEDIES CUMULATIVE. All rights, privileges and elections or
remedies of Landlord contained in this Article 16 are cumulative and not
alternative to the extent permitted by law and except as otherwise provided
herein.
16.4 LANDLORD'S DEFAULT. Landlord shall not be deemed to be in default
of this Lease unless Landlord fails within a reasonable time (or the time
specified herein, if applicable) to perform an obligation required to be
performed by it. Tenant agrees to give Landlord and any lender designated by
Landlord notice of any Landlord default, and a reasonable opportunity to cure
such default.
17. SUBORDINATION, ATTORNMENT AND SALE.
17.1 SUBORDINATION TO MORTGAGE. This Lease, and any sublease entered
into by Tenant under the provisions of this Lease, shall be subject and
subordinate to any ground lease, mortgage, deed of trust, sale/leaseback
transaction or any other hypothecation for security now or hereafter placed upon
the Buildings, the Property, or any of them, and the rights of any assignee of
Landlord or of any ground lessor, mortgagee, trustee, beneficiary or leaseback
lessor under any of the foregoing, and to any and all advances made on the
security thereof and to all renewals, modifications, consolidations,
replacements and extensions thereof; PROVIDED, HOWEVER, that such subordination
in the case of any future ground lease, mortgage, deed of trust, sale/leaseback
transaction or any other hypothecation for security placed upon the Buildings,
the
40.
Property, or any of them shall be conditioned on Tenant's receipt from the
ground lessor, mortgagee, trustee, beneficiary or leaseback lessor of a
Non-Disturbance Agreement in a form reasonably acceptable to Tenant (i)
confirming that so long as Tenant is not in material default hereunder beyond
any applicable cure period (for which purpose the occurrence of any event of
default under Section 16.1 hereof shall be deemed to be "material"), Tenant's
rights hereunder shall not be disturbed by such person or entity and (ii)
agreeing that the benefit of such Non-Disturbance Agreement shall be
transferable to any transferee under a Permitted Transfer and to any other
assignee or subtenant that is acceptable to the ground lessor, mortgagee,
trustee, beneficiary or leaseback lessor at the time of transfer. Tenant
agrees to execute such other commercially reasonable documentation as may be
required by an institutional lender to evidence such subordination and to
attorn to any such ground lessor, mortgagee, trustee, beneficiary or
leaseback lessor in the event such party succeeds to Landlord's interest
hereunder and agrees to recognize this Lease. Moreover, Tenant's obligations
under this Lease shall be conditioned on Tenant's receipt within thirty (30)
days after mutual execution of this Lease, from any existing ground lessor,
mortgagee, trustee, beneficiary or leaseback lessor currently owning or
holding a security interest in the Property, of a Non-Disturbance Agreement
in a form reasonably acceptable to Tenant confirming (i) that so long as
Tenant is not in material default hereunder beyond any applicable cure
period, Tenant's rights hereunder shall not be disturbed by such person or
entity and (ii) agreeing that the benefit of such Non-Disturbance Agreement
shall be transferable to any transferee under a Permitted Transfer and to any
other assignee or subtenant that is acceptable to the ground lessor,
mortgagee, trustee, beneficiary or leaseback lessor at the time of transfer.
If any mortgagee, trustee, beneficiary, ground lessor, sale/leaseback lessor
or assignee elects in writing to have this Lease be an encumbrance upon the
Property prior to the lien of its mortgage, deed of trust, ground lease or
leaseback lease or other security arrangement and gives notice thereof to
Tenant, this Lease shall be deemed prior thereto, whether this Lease is dated
prior or subsequent to the date thereof or the date of recording thereof.
Tenant, and any sublessee, shall execute such documents as may reasonably be
requested by any mortgagee, trustee, beneficiary, ground lessor,
sale/leaseback lessor or assignee to evidence the subordination herein set
forth, subject to the conditions set forth above, or to make this Lease prior
to the lien of any mortgage, deed of trust, ground lease, leaseback lease or
other security arrangement, as the case may be. Upon any default by Landlord
in the performance of its obligations under any mortgage, deed of trust,
ground lease, leaseback lease or assignment, Tenant (and any sublessee)
shall, notwithstanding any subordination hereunder, attorn to the mortgagee,
trustee, beneficiary, ground lessor, leaseback lessor or assignee thereunder
upon demand and become the tenant of the successor in interest to Landlord,
at the option of such successor in interest, and shall execute and deliver
any instrument or instruments confirming the attornment herein provided for.
17.2 SALE OF LANDLORD'S INTEREST. Upon sale, transfer or assignment of
Landlord's entire interest in the Buildings and the Property, Landlord shall be
relieved of its obligations hereunder with respect to liabilities accruing from
and after the date of such sale, transfer or assignment.
17.3 ESTOPPEL CERTIFICATES. Tenant or Landlord (the "RESPONDING PARTY")
as applicable, shall at any time and from time to time, within ten (10) days
after written request by the other party (the "REQUESTING PARTY"), execute,
acknowledge and deliver to the Requesting Party a certificate in writing
stating: (i) that this Lease is unmodified and in full force and effect,
41.
or if there have been any modifications, that this Lease is in full force and
effect as modified and stating the date and the nature of each modification;
(ii) the date to which rental and all other sums payable hereunder have been
paid; (iii) that the Requesting Party is not in default in the performance of
any of its obligations under this Lease, that the certifying party has given
no notice of default to the Requesting Party and that no event has occurred
which, but for the expiration of the applicable time period, would constitute
an event of default hereunder, or if the responding party alleges that any
such default, notice or event has occurred, specifying the same in reasonable
detail; and (iv) such other matters as may reasonably be requested by the
Requesting Party or by any institutional lender, mortgagee, trustee,
beneficiary, ground lessor, sale/leaseback lessor or prospective purchaser of
the Property, or prospective sublessee or assignee of this Lease. Any such
certificate provided under this Section 17.3 may be relied upon by any
lender, mortgagee, trustee, beneficiary, assignee or successor in interest to
the Requesting Party, by any prospective purchaser, by any purchaser on
foreclosure or sale, by any grantee under a deed in lieu of foreclosure of
any mortgage or deed of trust on the Property, by any subtenant or assignee,
or by any other third party. Failure to execute and return within the
required time any estoppel certificate requested hereunder, if such failure
continues for five (5) days after a second written request by the Requesting
Party for such estoppel certificate, shall be deemed to be an admission of
the truth of the matters set forth in the form of certificate submitted to
the Responding Party for execution.
18. SECURITY.
18.1 DEPOSIT. Upon execution of this Lease, Tenant shall deposit with
Landlord the sum of $5,500,000. Upon the closing of a loan providing permanent
financing for the Project, the amount of such deposit shall be reduced to
$1,375,000, provided only that (i) Tenant is not then in default under any of
the terms or conditions of this Lease, and no event has occurred which, with the
passage of time or the giving of notice or both would constitute a default, and
(ii) the lender in such financing has consented to such reduction in security
deposit. At Tenant's election, in lieu of a cash security deposit, Tenant may
provide one or more irrevocable letters of credit in amounts described above,
payable to Landlord, and issued by an institution and in form reasonably
satisfactory to Landlord. Such sums or the Letter of Credit (individually and
collectively, the "SECURITY DEPOSIT") shall be held by Landlord as security for
the faithful performance of all of the terms, covenants, and conditions of this
Lease to be kept and performed by Tenant during the Term hereof; provided that
if at any time Tenant shall have maintained an investment grade credit rating of
BBB or better for a consecutive twelve month period, Landlord shall return the
Security Deposit to Tenant. If Tenant defaults with respect to any provision of
this Lease, including, without limitation, the provisions relating to the
payment of rental and other sums due hereunder, Landlord shall have the right,
but shall not be required, to use, apply or retain all or any part of the
Security Deposit for the payment of rental, unreimbursed Operating Expenses or
any other amount which Landlord may spend or become obligated to spend by reason
of Tenant's default or to compensate Landlord for any other loss or damage which
Landlord may suffer by reason of Tenant's default. Landlord may also apply the
Security Deposit toward costs incurred to repair damages to the Premises or to
clean and bring the Premises to good order, condition and repair during its
Lease Term and upon expiration or sooner termination of this Lease. If any
portion of the Security Deposit is so used or applied, Tenant shall, within five
(5) days after written demand therefor, deposit cash with Landlord in an amount
sufficient to restore the Security Deposit to its original amount and Tenant's
failure to do
42.
so shall be a material breach of this Lease. Landlord shall be required to
keep any deposit under this Section separate from Landlord's general funds in
an interest bearing account reasonably acceptable to Tenant, and Tenant shall
be entitled to the interest thereon, to be paid to Tenant when and if the
Security Deposit is refundable to Tenant. If Tenant fully and faithfully
performs every provision of this Lease to be performed by it, the Security
Deposit, or any balance thereof, together with all accrued interest, shall be
returned to Tenant or, at Landlord's option, to the last assignee of Tenant's
interest hereunder, at the expiration of the Term of this Lease and after
Tenant has vacated the Premises. In the event of termination of Landlord's
interest in this Lease, Landlord shall transfer all deposits then held by
Landlord under this Section to Landlord's successor in interest, whereupon
Tenant agrees to release Landlord from all liability for the return of such
deposit or the accounting thereof.
18.2 PLEDGE OF SECURITY DEPOSIT. The Security Deposit may be pledged by
Landlord as additional collateral to any lender having a security interest in
the Property. The lender may use, apply or retain all or any part of the
Security Deposit for the payment of Building Costs, but only in the event that
lender shall have notified Landlord and Tenant that such Building Costs remain
unpaid and the parties shall have failed within thirty (30) days following
receipt of such notice to cure such nonpayment. For purposes of this Section,
"BUILDING COST(S)" shall mean any and all costs actually incurred in
constructing the Base Building Work, Common Area and the related site
improvements including, but not limited to, costs for demolition, grading,
utility fees, architectural and engineering fees, permits, surveys, appraisals,
insurance, legal and accounting fees, development overhead, construction
management, blueprinting, equity fees, construction lender, permanent lender and
mortgage banker fees, interest carry, site improvements, off-site improvements
and tenant improvements. If any portion of the Security Deposit is so applied,
upon the Phase I Rent Commencement Date, Tenant shall deposit cash with Landlord
in an amount sufficient to restore the Security Deposit to its original amount,
and Tenant's failure to do so shall constitute a material breach of this Lease.
It is expressly understood and agreed by Landlord and Tenant that nothing in
this Section shall change the parties' responsibilities for the payment of
Building Costs, as set forth on the Work Letter, and that in the event the
lender applies the Security Deposit to the payment of Building Costs which are
the responsibility of Landlord, Landlord shall promptly reimburse Tenant for all
such costs.
19. MISCELLANEOUS.
19.1 NOTICES. All notices, consents, waivers and other communications
which this Lease requires or permits either party to give to the other shall be
in writing and shall be deemed given when delivered personally (including
delivery by private courier or express delivery service) or three (3) days after
deposit in the United States mail, registered or certified mail, postage
prepaid, assessed to the parties at their respective addresses as follows:
To Tenant: 000 Xxxxxxxxxx Xxxx
Xxx Xxxxxx, XX 00000
Attn: Xxxxxxx Xxxxx-Xxxxxx, Vice President
with a copy to: 000 Xxxxxxxxxx Xxxx
Xxx Xxxxxx, XX 00000
Attn: Xxxxxx X. Xxxxxxxx, Esq.
43.
and with a copy to: Xxxxxx Godward LLP
Xxx Xxxxxxxx Xxxxx, 00xx Xxxxx
Xxx Xxxxxxxxx, XX 00000-0000
Attn: Xxxx X. Xxxx, Esq.
To Landlord: Inhale 000 Xxxxxxxxxx Xxxx L.P.
c/o Bernardo Property Advisors, Inc.
00000 Xxxx Xxxxxxxx Xx., Xxxxx 000
Xxx Xxxxx, XX 00000
Attn: Xxxx X. Gold
with a copy to: Xxxxxxx Xxxxxx XxXxxxx Xxxxx
2100 Symphony Towers
000 X Xxxxxx
Xxx Xxxxx, XX 00000
Attn: Xxxxx X. Xxxxx, Esq.
or to such other address as may be contained in a notice at least fifteen (15)
days prior to the address change from either party to the other given pursuant
to this Section. Rental payments and other sums required by this Lease to be
paid by Tenant shall be delivered to Landlord at Landlord's address provided in
this Section, or to such other address as Landlord may from time to time specify
in writing to Tenant, and shall be deemed to be paid only upon actual receipt.
19.2 SUCCESSORS AND ASSIGNS. The obligations of this Lease shall run
with the land, and this Lease shall be binding upon and inure to the benefit of
the parties hereto and their respective successors and assigns, except that the
original Landlord named herein and each successive Landlord under this Lease
shall be liable only for obligations accruing during the period of its ownership
of the Property, and any liability for obligations accruing after termination of
such ownership shall terminate as of the date of such termination of ownership
and shall pass to the successor lessor.
19.3 NO WAIVER. The failure of Landlord to seek redress for violation,
or to insist upon the strict performance, of any covenant or condition of this
Lease shall not be deemed a waiver of such violation, or prevent a subsequent
act which would originally have constituted a violation from having all the
force and effect of an original violation.
19.4 SEVERABILITY. If any provision of this Lease or the application
thereof is held to be invalid or unenforceable, the remainder of this Lease or
the application of such provision to persons or circumstances other than those
as to which it is invalid or unenforceable shall not be affected thereby, and
each of the provisions of this Lease shall be valid and enforceable, unless
enforcement of this Lease as so invalidated would be unreasonable or grossly
inequitable under all the circumstances or would materially frustrate the
purposes of this Lease.
19.5 LITIGATION BETWEEN PARTIES. In the event of any litigation or
other dispute resolution proceedings between the parties hereto arising out of
or in connection with this Lease, the prevailing party shall be reimbursed for
all reasonable costs, including, but not limited to, reasonable accountants'
fees and attorneys' fees, incurred in connection with such proceedings
44.
(including, but not limited to, any appellate proceedings relating thereto)
or in connection with the enforcement of any judgment or award rendered in
such proceedings. "PREVAILING PARTY" within the meaning of this Section shall
include, without limitation, a party who dismisses an action for recovery
hereunder in exchange for payment of the sums allegedly due, performance of
covenants allegedly breached or consideration substantially equal to the
relief sought in the action.
19.6 SURRENDER. A voluntary or other surrender of this Lease by Tenant,
or a mutual termination thereof between Landlord and Tenant, shall not result in
a merger but shall, at the option of Landlord, operate either as an assignment
to Landlord of any and all existing subleases and subtenancies, or a termination
of all or any existing subleases and subtenancies. This provision shall be
contained in any and all assignments or subleases made pursuant to this Lease.
19.7 INTERPRETATION. The provisions of this Lease shall be construed as
a whole, according to their common meaning, and not strictly for or against
Landlord or Tenant. The captions preceding the text of each Section and
subsection hereof are included only for convenience of reference and shall be
disregarded in the construction or interpretation of this Lease.
19.8 ENTIRE AGREEMENT. This written Lease, together with the exhibits
hereto, the Agreement of Limited Partnership of Inhale 000 Xxxxxxxxxx Xxxx, L.P.
dated as of September __, 2000 (the "Partnership Agreement") and the
Contribution Agreement, contains all the representations and the entire
understanding between the parties hereto with respect to the subject matter
hereof. Except as to the agreements contained in the Partnership Agreement and
in the Contribution Agreement and their respective related exhibits, any prior
correspondence, memoranda or agreements are replaced in total by this Lease and
the exhibits hereto. This Lease may be modified only by an agreement in writing
signed by each of the parties.
19.9 GOVERNING LAW. This Lease and all exhibits hereto shall be
construed and interpreted in accordance with and be governed by all the
provisions of the laws of the State of California.
19.10 NO PARTNERSHIP. The relationship created by this lease between
Landlord and Tenant is solely that of a lessor and lessee. Nothing contained in
this Lease shall be construed as creating any type or manner of partnership,
joint venture or joint enterprise with or between Landlord and Tenant. Neither
party is the agent or representative of the other, except as expressly set forth
in the Agreement of Limited Partnership of Inhale 000 Xxxxxxxxxx Xxxx, L.P.
19.11 FINANCIAL INFORMATION. From time to time Tenant shall promptly
provide directly to prospective lenders and purchasers of the Property
designated by Landlord such financial information pertaining to the financial
status of Tenant as Landlord may reasonably request; PROVIDED, Tenant shall be
permitted to provide such financial information in a manner which Tenant deems
reasonably necessary to protect the confidentiality of such information. In
addition, from time to time, Tenant shall provide Landlord with such financial
information pertaining to the financial status of Tenant as Landlord may
reasonably request. Landlord agrees that all financial information supplied to
Landlord by Tenant shall be treated as confidential material, and shall not be
disseminated to any party or entity (including any entity affiliated with
45.
Landlord) without Tenant's prior written consent, except that Landlord shall
be entitled to provide such information, subject to reasonable precautions to
protect the confidential nature thereof, (i) to Landlord's partners and
professional advisors, solely to use in connection with Landlord's execution
and enforcement of this Lease, and (ii) to prospective lenders and/or
purchasers of the Property, solely for use in connection with their bona fide
consideration of a proposed financing or purchase of the Property, PROVIDED
that such prospective lenders and/or purchasers are not then engaged in
businesses directly competitive with the business then being conducted by
Tenant. For purposes of this Section, without limiting the generality of the
obligations provided herein, it shall be deemed reasonable for Landlord to
request copies of Tenant's most recent audited annual financial statements,
or, if audited statements have not been prepared, unaudited financial
statements for Tenant's most recent fiscal year, accompanied by a certificate
of Tenant's chief financial officer that such financial statements fairly
present Tenant's financial condition as of the date(s) indicated.
Notwithstanding any other provisions of this Section 19.11, during any period
in which Tenant has outstanding a class of publicly traded securities and is
filing with the Securities and Exchange Commission, on a regular basis, Forms
10Q and 10K and any other periodic filings required under the Securities
Exchange Act of 1934, as amended, it shall constitute sufficient compliance
under this Section 19.11 for Tenant to furnish Landlord with copies of such
periodic filings substantially concurrently with the filing thereof with the
Securities and Exchange Commission.
Landlord and Tenant recognize the need of Tenant to maintain the
confidentiality of information regarding its financial status and the need of
Landlord to be informed of, and to provide to prospective lenders and purchasers
of the Property financial information pertaining to, Tenant's financial status.
Landlord and Tenant agree to cooperate with each other in achieving these needs
within the context of the obligations set forth in this Section.
19.12 COSTS. Notwithstanding anything to the contrary contained in this
Lease, if Tenant requests the consent of Landlord under any provision of this
Lease for any act that Tenant proposes to do hereunder, including, without
limitation, assignment or subletting of the Buildings or any portion thereof,
Tenant shall, as a condition to doing any such act and the receipt of such
consent, reimburse Landlord promptly for any and all reasonable costs and
expenses incurred by Landlord in connection therewith (including, without
limitation, reasonable attorneys' fees) up to a maximum of $1,000 per request.
19.13 TIME. Time is of the essence of this Lease, and of every term and
condition hereof.
19.14 BROKERS. There are no brokers entitled to a commission in
connection with this Lease except BT Commercial, who will be paid by Landlord
pursuant to a separate agreement. Each party represents and warrants that no
other broker participated in the consummation of this Lease and agrees to
indemnify, defend and hold the other party harmless against any liability, cost
or expense, including, without limitation, reasonable attorneys' fees, arising
out of any claims for brokerage commissions or other similar compensation in
connection with any conversations, prior negotiations or other dealings by the
indemnifying party with any other person making such claim.
46.
19.15 MEMORANDUM OF LEASE. At any time during the Term of this
Lease, either party, at its sole expense, shall be entitled to record a
memorandum of this Lease and, if either party so elects, both parties agree
to cooperate in the preparation, execution, acknowledgement and recordation
of such document in reasonable form.
19.16 CORPORATE AUTHORITY. Each person signing this Lease on behalf of
Tenant or Landlord warrants that he or she is fully authorized to do so and, by
so doing, to bind the entity on whose behalf he or she is signing.
19.17 EXECUTION AND DELIVERY. This Lease may be executed in one or more
counterparts and by separate parties on separate counterparts, but each such
counterpart shall constitute an original and all such counterparts together
shall constitute one and the same instrument.
19.18 SURVIVAL. Without limiting survival provisions which would
otherwise be implied or construed under applicable law, the provisions of
Sections 2.5, 7.4, 9.2, 9.3, 9.4, 11.4, 12.10, 12.11, 19.5 and 19.11 hereof
shall survive the termination of this Lease with respect to matters occurring
prior to the expiration of this Lease.
19.19 WAIVER OF JURY TRIAL. The parties hereto shall, and they hereby
do, waive trial by jury in any action or proceeding or counterclaim brought by
either of the parties hereto against the other on any matters arising out of or
in any way connected with this Lease.
19.20 EXCLUSIVITY. Landlord agrees that it shall not, during the Term
of this Lease or any period during which Tenant occupies all or any portion of
the Premises, lease or allow the use or occupancy of any portion of the Premises
or the Buildings to or by any party which is a competitor of Tenant.
19.21 TENANT'S REMEDIES. Except to the extent expressly provided
herein, no event or occurrence during the Lease Term is intended to allow Tenant
the right to surrender or terminate this Lease or to relieve Tenant from any of
its obligations hereunder, and Tenant waives any rights now or hereafter
conferred upon it by statute or otherwise (except for rights conferred herein)
to surrender or terminate this Lease or to claim any abatement or suspension of
Rent or other sums payable hereunder.
19.22 SECURITY MEASURES. Tenant acknowledges that the Rent payable to
Landlord hereunder does not and will not include the cost of guard service or
other security services and that Landlord shall have no obligation whatsoever to
provide same. Tenant agrees that Landlord shall xxxx no responsibility for the
protection of the Premises, Tenant, its agents and invitees or their property
from the acts of third parties.
47.
IN WITNESS WHEREOF, the parties hereto have executed this Lease as of the day
and year first set forth above.
"Landlord" "Tenant"
INHALE 000 XXXXXXXXXX XXXX, L.P., INHALE THERAPEUTIC SYSTEMS, INC.
a California limited partnership a Delaware corporation
By SciMed Prop III, a California By:
corporation, its General Partner ----------------------------------
Name:
--------------------------------
Title:
-------------------------------
By: By:
--------------------------------- ----------------------------------
Name: Name:
------------------------------- --------------------------------
Title: Title:
------------------------------ -------------------------------
By: By:
--------------------------------- ----------------------------------
Name: Name:
------------------------------- --------------------------------
Title: Title:
------------------------------ -------------------------------
EXHIBIT A
Property Legal Description
All that certain real property in the State of California, County of San
Mateo, City of San Xxxxxx more particularly described as follows:
ALL LANDS LYING WITHIN THE EXTERIOR BOUNDARIES OF THAT MAP ENTITLED
"REVERSION TO ACREAGE OF THE LANDS OF XXXXX ELECTRONICS LYING WITHIN THE
COUNTY OF SAN MATEO, BEING PARCELS 1,2,3 AND 4 AS SHOWN ON THAT CERTAIN
PARCEL MAP FILED IN VOLUME 51 OF PARCEL MAPS AT PAGE 71 RECORDS OF SAN
MATEO," FILED IN THE OFFICE OF THE COUNTY RECORDER OF SAN MATEO COUNTY, STATE
OF CALIFORNIA, ON OCTOBER 6, 1986 IN VOLUME 58 OF PARCEL MAPS AT PAGE 13.
ASSESSOR'S PARCEL NOS. 000-000-000 JOINT PLAN NOS. 046-002-020-22A
000-000-000 046-002-020-22-01A
046-002-020-22-02A
046-002-020-22-03A
046-002-020-23A
046-002-020-23-01A
EXHIBIT B
SITE PLAN
(ATTACHED)
EXHIBIT B
[MAP]
SITE PLAN
DRAWING TITLE
INHALE B4-EXT-PH
000 XXXXXXXXXX XXXX
XXX XXXXXX, XX
EXHIBIT C
WORK LETTER
This Work Letter ("WORK LETTER") constitutes part of the Build-to-Suit
Lease dated as September __, 2000 (the "LEASE") between INHALE 000 XXXXXXXXXX
XXXX. L.P., a California limited partnership ("LANDLORD"), and Inhale
Therapeutic Systems, Inc., a Delaware corporation ("TENANT"). The terms of this
Work Letter are incorporated in the Lease for all purposes.
1. DEFINED TERMS.
As used in this Work Letter, the following capitalized terms have the
following meanings:
(a) APPROVED PLANS: Approved Tenant Improvement Plans for Phase 1A,
Approved Tenant Improvement Plans for Phase 1B, Approved Tenant Improvement
Plans for Phase 2A, Approved Tenant Improvement Plans for Phase 2B, Approved
Base Building Work Plans for Building 1 and Approved Base Building Work Plans
for Building 2.
(b) APPROVED TENANT IMPROVEMENT PLANS FOR BUILDING 1: Approved Tenant
Improvement Plans for Phase 1A (Plans and specifications prepared by the
Architect for the Tenant Improvements in Phase 1A and approved by both Landlord
and Tenant, and listed in the attached Schedule C-3 hereto), Approved Tenant
Improvement Plans for Phase 1B, as defined in Section 2(b), below.
(c) APPROVED TENANT IMPROVEMENT PLANS FOR BUILDING 2: Plans and
specifications to be prepared by the Architect for the Tenant Improvements in
Phase 2A and 2B (provided Tenant has exercised the Phase 2B Expansion Option) in
Building 2 and to be approved by both Landlord and Tenant, with the
understanding that the Tenant Improvements for Building 2 will be similar in
size, quality and materials as the Tenant Improvements for Building 1.
(d) APPROVED BASE BUILDING WORK PLANS FOR BUILDING 1: Plans and
specifications prepared by the Architect for the Base Building Work in Building
1 and approved by both Landlord and Tenant, and listed in the attached Schedule
C-1 and C-2 hereto.
(e) APPROVED BASE BUILDING WORK PLANS FOR BUILDING 2: Plans and
specifications to be prepared by the Architect for the Base Building Work in
Building 2 and to be approved by both Landlord and Tenant, with the
understanding that the Building Shell and Building Core for Building 2 will be
similar in size, quality and materials as the Building Shell and Building Core
for Building 1.
(f) ARCHITECT: Xxxxxx Xxxxxx Architects.
(g) ASSIGNED CONSTRUCTION CONTRACTS: See definition in Section 2(f)
hereof.
1
(h) BASE BUILDING WORK FOR BUILDING 1: The Building Core for Building
1, Building Shell for Building 1 and Site Improvements, as described by the
Approved Base Building Plans listed in the attached Schedules C-1 and C-2.
(i) BASE BUILDING WORK FOR BUILDING 2: The Building Core and Building
Shell to be more fully described by the Approved Base Building Plans to be
prepared by Architect and approved by Landlord and Tenant.
(j) BUILDING CORES: The core of Building 1, as more fully defined in
Schedule C-2, and the core for Building 2 to be more fully described by the
Approved Base Building Work Plans for Building 2 to be prepared by Architect and
approved by Landlord and Tenant.
(k) BUILDING SHELLS: The shell of Building 1, as more fully defined in
Schedule C-1, and the shell for Building 2 to be more fully described by the
Approved Base Building Work Plans for Building 2 to be prepared by Architect and
approved by Landlord and Tenant.
(l) CERTIFICATE OF SUBSTANTIAL COMPLETION: the written certificate
signed by Architect with respect to each Phase, certifying that: (i) the
completion of the Base Building Work for such Phase has been completed (except
for Punch List Work), in good and workmanlike condition, in compliance with all
applicable Requirements, and in conformance with the Approved Plans for such
Base Building Work, and (ii) a Shell Final, or its equivalent, has been received
from all required governmental authorities.
(m) CHANGE ORDER: See definition in Section 2(g)(ii) hereof.
(n) COST OF IMPROVEMENT: See definition in Section 2(e) hereof.
(o) DATE OF SUBSTANTIAL COMPLETION: the date of issuance of The
Certificate of Substantial Completion.
(p) DEFINITIONS: Capitalized terms not otherwise defined in this Work
Letter shall have the definitions set forth in the Lease.
(q) GENERAL CONTRACTOR: South Bay Construction, Xxxxxxx and Xxxxxxx, or
any other general contractor selected by Tenant from the list attached as
SCHEDULE C-4, or any other general contractor selected by Tenant with the
approval of Landlord, which consent shall not be unreasonably withheld, delayed
or conditioned, and all of which are further subject to any approval of Lender
required by Lender.
(r) IMPROVEMENTS: The Building Cores, Building Shells, Site
Improvements, Tenant Improvements and other improvements shown on the Approved
Plans from time to time and to be constructed on the Property pursuant to the
Lease and this Work Letter.
(s) LANDLORD DELAY: Any of the following types of delay in the
completion of construction of the Improvements:
(i) Any delay resulting from Landlord's failure to furnish, in
a timely manner, information requested by Tenant in Landlord's possession or
under Landlord's control or by the
2
Architect or General Contractor for Tenant's Work in connection with the
design or construction of the Improvements; or
(ii) Any material delay of any other kind or nature caused by
Landlord (or Landlord's contractors, agents or employees).
(t) PUNCH LIST WORK: Minor corrections of construction or decoration
details, and minor mechanical adjustments, that are required in order to cause
any applicable portion of the Improvements as constructed to conform to the
Approved Plans in all material respects and that do not materially interfere
with Tenant's use or occupancy of the Premises.
(u) SHELL FINAL: Approval from the City of San Xxxxxx confirming that
Building Shell and Site Improvements have been completed with required
Government Approvals.
(v) SITE IMPROVEMENTS: The parking areas, driveways, landscaping and
other improvements to the Common Areas of the Property that are depicted on
EXHIBIT B to the Lease (as the same may be modified pursuant to the process of
development and approval of the Approved Plans) and more specifically described
in SCHEDULE C- 1 attached to this Work Letter.
(w) SUBSTANTIAL COMPLETION OF BASE BUILDING WORK: Shall mean, with
respect to each Phase, the completion of the Base Building Work for such Phase
(except for Punch List Work), in good and workmanlike condition, in compliance
with all applicable Requirements, and in conformance with the Approved Plans for
such Base Building Work, and the receipt of a Shell Final, or its equivalent,
from all required governmental authorities as certified in a writing signed by
Architect.
(x) TENANT DELAY: Any of the following types of delay in the completion
of construction of the Base Building Work:
(i) Any delay resulting from Tenant's failure to furnish, in a
timely manner, information requested by Landlord or by the Architect or General
Contractor for Base Building Work in connection with the design or construction
of the Base Building Work, or from Tenant's failure to approve in a timely
manner any matters requiring approval by Tenant;
(ii) Any delay resulting from Change Orders, including any
delay resulting from the need to revise any drawings or obtain further
governmental approvals as a result of any Change Order; or
(iii) Any material delay of any other kind or nature caused by
Tenant (or Tenant's contractors, agents or employees).
(y) TENANT IMPROVEMENTS: The improvements to or within the Premises,
other than improvements constituting part of the Base Building Work, shown on
the Approved Plans from time to time and to be constructed by Tenant pursuant to
the Lease and this Work Letter, including (but not limited to) the improvements
to Building 1 described on SCHEDULE C-3 attached to this Work Letter.
(z) TENANT IMPROVEMENT ALLOWANCE: See definition in Section 4(b)
hereof.
3
(aa) TENANT'S WORK: All of the Improvements other than those
constituting BASE BUILDING WORK, and such other materials and improvements as
Tenant deems necessary or appropriate for Tenant's use and occupancy of the
Premises.
(bb) UNAVOIDABLE DELAYS: Delays due to acts of God, acts of public
agencies, labor disputes, strikes, fires, freight embargoes, rainy or stormy
weather, inability to obtain supplies, materials, fuels or permits, delays of
contractors or subcontractors, or other causes or contingencies beyond the
reasonable control of Landlord or Tenant, as applicable.
(cc) USEABLE SQUARE FEET: Useable Square Feet shall mean, with respect
to Xxxxx 0X, 38,633 square feet; with respect to Phase 1B, 38,474 square feet;
with respect to Xxxxx 0X, 43,972 square feet; and with respect to Phase 2B,
44,840 square feet.
(dd) WORK DEADLINES: The target dates for performance listed in the
Estimated Construction Schedule attached as EXHIBIT D to the Lease.
2. PLANS, COST OF IMPROVEMENTS AND CONSTRUCTION.
Landlord and Tenant shall comply with the procedures set forth in this
Section 2 in preparing, delivering and approving matters relating to the
Improvements.
(a) APPROVED PLANS FOR BASE BUILDING WORK FOR BUILDING 1. Tenant and
Landlord have approved the Approved Base Building Work Plans for Building 1.
(b) APPROVED PLANS FOR BASE BUILDING WORK FOR BUILDING 2. Tenant and
Landlord shall cooperate with Architect in the development of the plans and
specifications for the Base Building Work for Building 2 (once such plans and
specifications are approved by Landlord and Tenant, the "APPROVED BASE BUILDING
WORK PLANS FOR BUILDING 2"), with the understanding that the Building Shell and
Building Core for Building 2 will be similar in size, quality and materials as
the Building Shell and Building Core for Building 1.
(c) APPROVED PLANS AND WORKING DRAWINGS FOR TENANT'S WORK FOR BUILDING
1. Tenant and Landlord have approved the Approved Tenant Improvement Plans for
Xxxxx 0X. Tenant and Landlord shall cooperate with Architect in the development
of the plans and specifications for the Tenant's Work for Phase 1B (once such
plans and specifications are approved by Landlord and Tenant, the "APPROVED
TENANT IMPROVEMENT PLANS FOR PHASE 1B"), with the understanding that the Tenant
Improvements for Phase 1B will be similar in size, quality and materials as the
Tenant Improvements for Xxxxx 0X
(x) APPROVED PLANS AND WORKING DRAWINGS FOR TENANT'S WORK FOR BUILDING
2. Tenant and Landlord shall cooperate with Architect in the development of the
plans and specifications for the Tenant's Work for Building 2 (once such plans
and specifications are approved by Landlord and Tenant, the "APPROVED TENANT
IMPROVEMENT PLANS FOR BUILDING 2"), with the understanding that the Tenant
Improvements for Building 2 will be similar in size, quality and materials as
the Tenant Improvements for Building 1.
(e) COST OF IMPROVEMENTS. "COST OF IMPROVEMENTS" shall mean, with
respect to any item or component for which a cost must be determined in order to
allocate such cost, or an
4
increase in such cost, to Base Building Work and/or Tenant's Work pursuant to
this Work Letter or pursuant to the Lease, the sum of the following (unless
otherwise agreed in writing by Landlord and Tenant with respect to any
specific item or component or any category of items or components): (i) all
sums paid to contractors or subcontractors for labor and materials furnished
in connection with construction of such item or component; (ii) all costs,
expenses, payments, fees and charges (other than penalties) paid or incurred
to or at the direction of any city, county or other governmental or
quasi-governmental authority or agency which are required to be paid in order
to obtain all necessary governmental permits, licenses, inspections and
approvals relating to construction of such item or component; (iii)
engineering and architectural fees for services rendered in connection with
the design and construction of such item or component (including, but not
limited to, the applicable Architect for such item or component and an
electrical engineer, mechanical engineer and civil engineer); (iv) sales and
use taxes; (v) testing and inspection costs; (vi) the cost of power, water
and other utility facilities and the cost of collection and removal of debris
required in connection with construction of such item or component; and (vii)
all other "hard" costs incurred in the construction of such item or component
in accordance with the Approved Plans and this Work Letter.
(f) CONSTRUCTION OF BASE BUILDING WORK. Tenant shall assign the
following construction contracts and Landlord shall assume such construction
contracts: (Phase 1 Shell and Site Construction) dated 3/14/00 between Tenant
and Xxxxxxx & Xxxxxxx, (Phase 1 Core) dated 8/24/99 between Tenant and South Bay
Construction, (Phase 1 Shell and Site Design) dated 3/16/99 between Tenant and
Xxxxxx Xxxxxx Architects, and (Phase 1 Core Design) dated 7/18/00 between Tenant
and Xxxxxx Xxxxxx Architects (the "ASSIGNED CONSTRUCTION CONTRACTS"). Upon
receipt of such permits and approvals, Landlord shall, at Landlord's sole
expense (except as otherwise provided in the Lease or in this Work Letter),
diligently construct and complete the Improvements constituting BASE BUILDING
WORK substantially in accordance with the Approved Base Building Work Plans,
subject to Unavoidable Delays and Tenant Delays (if any). Such construction
shall be performed in a neat and workmanlike manner and shall conform to all
applicable governmental codes, laws and regulations in force at the time such
work is completed.
(g) CHANGES.
(i) BY LANDLORD. If Landlord determines at any time that
changes in Base Building Final Working Drawings or in any other aspect of the
Approved Plans relating to any item of BASE BUILDING WORK are required as a
result of applicable law or governmental requirements, or at the insistence of
any other third party whose approval may be required with respect to the
Improvements, or as a result of unanticipated conditions encountered in the
course of construction, then Landlord shall promptly (A) advise Tenant of such
circumstances and (B) cause revised Approved Plans and/or Base Building Final
Working Drawings, as applicable, reflecting such changes to be prepared by
Architect.
(ii) BY TENANT. If Tenant at any time desires any changes,
alterations or additions to the Approved Plans or Base Building Final Working
Drawings with respect to any of BASE BUILDING WORK, Tenant shall submit a
detailed written request to Landlord specifying such changes, alterations or
additions (a "CHANGE ORDER"). Upon receipt of any such request, Landlord shall
notify Tenant within five (5) business days of (A) whether the matters proposed
5
in the Change Order are approved by Landlord (which approval shall not be
unreasonably withheld, delayed or conditioned, and Landlord's failure to
respond within such five (5) business days period shall be deemed Landlord's
approval), (B) Landlord's estimate of the number of days of delay, if any,
which shall be caused by such Change Order if implemented (including, without
limitation, delays due to the need to obtain any revised plans or drawings
and any governmental approvals), and (C) Landlord's estimate of the increase
or decrease, if any, which shall occur in the Cost of Improvement for the
items or components affected by such Change Order if such Change Order is
implemented (including, but not limited to, any costs of compliance with laws
or governmental regulations that become applicable because of the requested
Change Order). If Tenant notifies Landlord in writing, within five (5)
business days after receipt of such notice, of Tenant's approval of the
Change Order (including the estimated delays and cost increases or decreases,
if any, described in the notice), then Landlord shall cause such Change Order
to be implemented and Tenant shall be responsible for all costs or cost
increases, resulting from or attributable to the Change Order, subject to the
provisions of Section 4 hereof. If Tenant fails to notify Landlord in writing
of its approval of such Change Order within said five (5) business day
period, then such Change Order shall be deemed to be withdrawn and shall be
of no further effect.
(h) With respect to all matters requiring Landlord's Approval herein,
Landlord's failure to respond within fifteen (15) days following Tenant's
request shall be deemed approval.
3. COMPLETION.
(a) Notwithstanding any other provisions of this Work Letter or of the
Lease, if Substantial Completion of any of the Base Building Work is delayed
beyond the applicable Work Deadline reflected in Exhibit D to the Lease as a
result of any Tenant Delay, then the applicable Rent Commencement Date pursuant
to Section 3.1 of the Lease shall be accelerated, day for day, by the number of
days by which such Tenant Delay delayed completion of the portions of Base
Building Work beyond such applicable Work Deadline. In the event Landlord
determines that the Rent Commencement Date should be advanced in accordance with
the foregoing, Landlord shall notify Tenant within five (5) business days of
commencement of the Tenant Delay purporting to cause the delay in completion.
Any dispute between Landlord and Tenant as to the existence or duration of
Tenant Delay shall be decided by the Architect.
(b) When Landlord believes the Base Building Work for any Phase is
complete subject only to completion of Punch List Work, it shall so notify
Architect and if Architect concurs, Architect shall issue to Tenant Substantial
Completion Certificate for the Base Building Work for such Phase.
(c) At any time within thirty (30) days after delivery of the
Substantial Completion Certificate, Tenant shall be entitled to submit one or
more lists to Landlord specifying Punch List Work to be performed on the
applicable Improvements constituting Base Building Work, and upon receipt of
such list(s), Landlord shall diligently complete such Punch List Work at
Landlord's sole expense. In the event of any dispute as to completion of any
item or component of Base Building Work, the Certificate of the Architect shall
be conclusive. Promptly after receipt by Tenant of the Certificate of
Substantial Completion, Landlord shall cause the
6
recordation of a Notice of Completion (as defined in Section 3093 of the
California Civil Code) with respect to relevant Base Building Work.
4. PAYMENT OF COSTS.
(a) BASE BUILDING WORK. Except as otherwise expressly provided in this
Work Letter or by mutual written agreement of Landlord and Tenant, the cost of
construction of BASE BUILDING WORK for each Phase shall be borne by Landlord at
its sole cost and expense, including any costs or cost increases incurred as a
result of Unavoidable Delays, governmental requirements or unanticipated
conditions.
(b) TENANT'S WORK; TENANT IMPROVEMENT ALLOWANCE. Except as otherwise
expressly provided in this Work Letter or by mutual written agreement of
Landlord and Tenant, the cost of construction of the Tenant Improvements shall
be borne by Tenant, PROVIDED that Landlord shall provide Tenant a tenant
improvement allowance for each Phase equal to $125 per Useable Square Foot in
such Phase (the "TENANT IMPROVEMENT ALLOWANCE"). Landlord shall pay the Tenant
Improvement Allowance periodically, following demand by Tenant and submittal of
appropriate documentation reflecting the Cost of the Tenant Improvements in such
Phase. If the entire Tenant Improvement Allowance is not used toward the costs
of Tenant's Work, Tenant shall not receive a credit of such unused portion of
the Tenant Improvement Allowance
(c) APPROVAL OF BUDGET FOR TENANT'S WORK. Notwithstanding anything to
the contrary set forth elsewhere in this Work Letter, Landlord shall not have
any obligation to fund to Tenant any portion of the Tenant Improvement Allowance
until Landlord shall have reasonably approved, in writing, the project budget
for the Tenant's Work (an "Approved Budget"). Landlord agrees that such approval
shall not be unreasonably withheld, delayed or conditioned. Attached hereto as
SCHEDULE C-5 is an Approved Budget for the portion of the Tenant's Work relating
to Xxxxx 0X. If Tenant submits to Landlord a construction budget for any
Tenant's Work which shows that the cost of Tenant's Work shall exceed the amount
of the Tenant Improvement Allowance (a "Deficiency"), Tenant shall pay a pro
rata share of any sums requested in a "Funding Request" (as defined below). If
there exists a Deficiency for any Tenant Work (by reason of cost overruns or
Tenant Changes, as defined below), Landlord's obligation to expand or disburse
any portion of the Tenant Improvement Allowance shall be limited, for each Fund
Request, to an amount equal to (a) the total amount due under the Fund Request
multiplied by (b) a fraction, the numerator of which is the undisbursed balance
of the Tenant Improvement Allowance at the commencement of such Tenant's Work
and the denominator of which is the Approved Budget for such Tenant's Work. In
the alternative, if required by Lender, Tenant agrees to fund the Deficiency
into a cash collateral account pledged to the Lender from which disbursements
shall be made following full disbursement of the Tenant Improvement Allowance.
Tenant shall have until the loan from which the Tenant Improvement Allowance is
funded is no longer available to Landlord (through no fault or default of
Landlord) to expend the unused portion of the Tenant Improvement Allowance,
after which date landlord's obligation to fund such costs shall expire.
(d) FUNDING REQUESTS. Upon submission by Tenant to Landlord of a
statement (a "Funding Request") setting forth the total amount requested
(including any Deficiency which may exist) and a reasonably detailed summary of
the work preformed (which may be satisfied by
7
a copy of an AIA standard form Application for Payment (G 702) executed by
the General Contractor and by the Architect) accompanied by lien releases for
the General Contractor and the subcontractors with respect to the prior
advance and such other documentation which may be required by the lender of
Landlord ("Lender"), within thirty (30) business days following receipt by
Landlord of a Funding Request and the accompanying materials, shall advance
to Tenant the amount set forth in the Funding Request; provided, however,
that with respect to any Funding Requests subject to reduction in accordance
with Section 4(c). Landlord shall advance to Tenant the amount calculated in
accordance with section 4(c). Tenant shall not make more than one Funding
Request in any thirty (30) day period, and any Funding Request (other than
the Final Funding Request) shall be for an amount not less than fifty
thousand dollars ($50,000.00).
(e) USE OF THE TENANT IMPROVEMENT ALLOWANCE. The Tenant Improvement
Allowance may be used solely for the payment of Cost of Improvements.
Nothwithstanding the foregoing, the Tenant Improvement Allowance shall not be
used for the payment of i) personal property, equipment or specialty trade
fixtures unique to the business of Tenant (which shall not be deemed to include,
in any event, laboratory benches and casework or other laboratory furniture);
ii) any work performed by specialty contractors such as data cabling, telephone
and data equipment, audio/visual equipment, office furniture systems or security
systems; iii) any permitting or construction costs associated therewith specific
to the business of Tenant (such as FDA licensing requirements); (iv) charges and
expenses for changes to the Approved Plans which have not been approved by
Landlord; (v) wages, labor and overhead for overtime and premium time; (vi)
additional costs and expenses incurred on account of any contractor's default or
construction defects; (vii) offsite management or other general overhead costs
of Tenant; (vii) costs for which Tenant has a right of reimbursement from others
(including, without limitation, insurers and warranties); or (viii) the cost of
bringing the Property into compliance with applicable environmental laws, or
other statutes, laws, rules and regulations. The Tenant Improvement Allowance
shall in no event be used to purchase any office furniture, tabletop laboratory
equipment, telephone equipment, personal property or other non-building system
equipment of Tenant. Landlord is under no obligation to bear any portion of the
cost for any of Tenant's Work except to the extent of the Tenant Improvement
Allowance.
5. TENANT'S WORK.
Tenant shall construct and install in the respective Phase the Tenant's
Work, substantially in accordance with the Approved Tenant Improvement Plans or,
with respect to Tenant's Work not shown on the Approved Tenant Improvement
Plans, substantially in accordance with plans and specifications prepared by
Tenant and approved in writing by Landlord (which approval shall not be
unreasonably withheld, delayed or conditioned). Tenant's Work may be performed
concurrently with Landlord's performance of the Base Building Work, provided
that Tenant's Work does not unreasonably interfere with the Base Building Work.
Tenant's Work shall be performed in accordance with, and shall in all respects
be subject to, the terms and conditions of the Lease (to the extent not
inconsistent with this Work Letter), and shall also be subject to the following
conditions:
(a) CONTRACTOR REQUIREMENTS. The contractor engaged by Tenant for
Tenant's Work, and any subcontractors, shall be duly licensed in California.
8
(b) COSTS AND EXPENSES OF TENANT'S WORK. Subject to Landlord's payment
or reimbursement obligations under Section 4(b) hereof with respect to the
Tenant Improvement Allowance, Tenant shall promptly pay all costs and expenses
arising out of the performance of Tenant's Work (including the costs of permits)
and shall furnish Landlord with evidence of payment on request.
(c) INDEMNIFICATION. Tenant shall indemnify, defend (with counsel
satisfactory to Landlord) and hold Landlord harmless from all suits, claims,
actions, losses, costs and expenses (including, but not limited to, claims for
workers' compensation, attorneys' fees and costs) based on personal injury or
property damage or contract claims (including, but not limited to, claims for
breach of warranty) arising from the performance of Tenant's Work. Tenant shall
repair or replace (or, at Landlord's election, reimburse Landlord for the cost
of repairing or replacing) any portion of the Improvements and/or any of
Landlord's real or personal property or equipment that is damaged, lost or
destroyed in the course of or in connection with the performance of Tenant's
Work.
(d) INSURANCE. Tenant's contractors shall obtain and provide to
Landlord certificates evidencing workers' compensation, public liability and
property damage insurance in amounts and forms and with companies satisfactory
to Landlord.
(e) RISK OF LOSS. All materials, work, installations and decorations of
any nature brought onto or installed in the Premises, by or at the direction of
Tenant before the commencement of Tenant's rental payment obligations with
respect to the applicable Building shall be at Tenant's risk, and neither
Landlord nor any party acting on Landlord's behalf shall be responsible for any
damage, loss or destruction thereof.
(f) CONDITION OF TENANT'S WORK. All work performed by Tenant shall be
performed in a good and workmanlike manner, shall be free from defects in
design, materials and workmanship, and shall be completed in compliance with the
plans approved by Landlord for such work in all material respects and in
compliance with all applicable governmental laws, ordinances, codes and
regulations in force at the time such work is completed. All materials and
equipment furnished by Tenant shall be new or like new,
(g) LANDLORD'S APPROVAL. Any approval or consent by Landlord shall in
no way obligate Landlord in any manner whatsoever in respect of the finished
product designed and/or constructed by Tenant. Any deficiency in design or
construction of the Tenant's Work, although the same has prior approval of
Landlord, shall be solely the responsibility of Tenant.
6. NO AGENCY.
Nothing contained in this Work Letter shall make or constitute either
Landlord or Tenant as the agent of the other.
7. SURVIVAL.
Without limiting survival provisions that would otherwise be implied or
construed under applicable law, the provisions of Section 5(c) of this Work
Letter shall survive the termination of the Lease with respect to matters
occurring prior to expiration of the Lease.
9
8. TENANT'S AUTHORIZED REPRESENTATIVE.
Tenant designates Xxxxxxx Xxxxx-Xxxxxx, Xxxxxx Makes and Xxxxxxx Xxxxxx
(collectively and individually, "Tenant's Authorized Representative") as the
person authorized to approve all plans, drawings, change orders and approvals
pursuant to this Work Letter. Landlord shall not be obligated to respond to or
act upon any such item until such item has been signed or initialed by Tenant's
Authorized Representative.
9. LANDLORD'S AUTHORIZED REPRESENTATIVE.
Landlord designates Xxxx X. Gold, Xxxx X. Xxxxxxxx and Xxxx X. Xxxxxx
(collectively and individually, "Landlord's Authorized Representative") as the
person authorized to approve all plans, drawings, change orders and approvals
pursuant to this Work Letter. Tenant shall not be obligated to respond to or act
upon any such item until such item has been signed or initialed by Landlord's
Authorized Representative.
10. SUBJECT TO LEASE.
This Work Letter is subject in all respects to the terms and conditions
of the Lease.
11. LENDER REQUIREMENTS.
This Work Letter is subject to the requirements of Lender. Tenant
agrees to cooperate with Landlord, at no material cost to Tenant and without
materially adversely affecting Tenant's rights or obligations hereunder, in
meeting Lender's requirements and in obtaining any required Lender approvals.
12. MERGER.
All understanding and agreements, oral and written, heretofore made
between the parties hereto and relating to the matters covered herein are merged
in this Work Letter, which, along with the Lease and its exhibits, the
Partnership Agreement, and the documents referenced therein and contemplated
thereby, fully and completely expresses the agreement between Landlord and
Tenant with regard to the matters set forth in this Work Letter.
13. MISCELLANEOUS.
All references in this Work Letter to a number of days shall be
construed to refer to calendar days, unless otherwise specified herein. In all
instances where a party's approval is required, if no written notice of
disapproval is given within the applicable time period, at the end of that
period such party shall be deemed to have given approval and the next succeeding
time period shall commence. If any item requiring approval is disapproved by a
party in a timely manner, the procedure for preparation of that item and
approval shall be repeated.
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IN WITNESS WHEREOF, the parties have executed this Work Letter
concurrently with and as of the date of the Lease.
LANDLORD TENANT
INHALE 000 XXXXXXXXXX XXXX. L.P., a INHALE THERAPEUTIC SYSTEMS INC.
California limited partnership a Delaware corporation
By:
-------------------------------
By: SciMed Prop III, a California Name:
corporation, its General Partner -----------------------------
Title:
----------------------------
By:
-----------------------------
By: Name:
------------------------------- -----------------------------
Name: Title:
----------------------------- ----------------------------
Title:
-----------------------------
By:
-------------------------------
Name:
-----------------------------
Title:
----------------------------
SCHEDULE C-1 TO WORK LETTER
DEFINITION OF BUILDING SHELL AND SITE IMPROVEMENTS
The "BUILDING SHELL" for Building 1 and the Site Improvements referred to in the
Work Letter to which this SCHEDULE C-1 is attached shall consist of work
described in the following plans:
(attached)
EXHIBIT C-1 TO WORK LETTER
XXXXXX-XXXXXX ARCHITECTS
Document Log
Inhale, Xxxx. 0, Xxxxxxxx, Xx-0, 00000
Shell and Site Improvements
==============================================
CP-4, CP-4, Struct. P.C. 2nd P.C.C.
Construction Set Plan Check Comments Revised
SHT. NO. SHEET NAME (11-11-99) (12-3-99) (2-7-00) (2-15-00)
======================================================================================================
A0 Cover Sheet and Project Data x x
------------------------------------------------------------------------------------------------------
A0.1 Code Compliance x x
------------------------------------------------------------------------------------------------------
A0.2 Title 24, Energy Compliance x x
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C-1 Existing Topography & Proposed x x
Site Plan
------------------------------------------------------------------------------------------------------
C-2 Site Grading Plan x x
------------------------------------------------------------------------------------------------------
C-3 Sewer/Water & Storm Drain x x
------------------------------------------------------------------------------------------------------
C-3.1 On-Siote Fire System Plan x
------------------------------------------------------------------------------------------------------
C-4 Grading / Utility Plan Details x x
------------------------------------------------------------------------------------------------------
X-0 Xxxxxxxxxx Xxxx Xxxxxx Improvements x x
------------------------------------------------------------------------------------------------------
------------------------------------------------------------------------------------------------------
L1.1 Entry Plaza & Courtyard Layout Plan x x
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L1.2 Entry Plaza & Courtyard Layout Plan x x
------------------------------------------------------------------------------------------------------
L2.1 Plaza & Courtyard Layout Plan x x
------------------------------------------------------------------------------------------------------
L2.2 Landscape Hardscape Details x x
------------------------------------------------------------------------------------------------------
L2.3 Landscape Hardscape Details x x
------------------------------------------------------------------------------------------------------
L3.1 Irrigation Plan x x
------------------------------------------------------------------------------------------------------
L4.1 Irrigation Details x x
------------------------------------------------------------------------------------------------------
L4.2 Drip Irrigation Details x x
------------------------------------------------------------------------------------------------------
L5.1 Planting Plan x x
------------------------------------------------------------------------------------------------------
L6.1 Planting Details x x
------------------------------------------------------------------------------------------------------
------------------------------------------------------------------------------------------------------
A1.0 Overall Site Plan x x
------------------------------------------------------------------------------------------------------
------------------------------------------------------------------------------------------------------
A2.1.1.0 Overall Floor Plan-Level 1 x x
------------------------------------------------------------------------------------------------------
A2.1.1.1 Xxxxx 0 , Xxxxx 0, Xxxxx Plan x x
------------------------------------------------------------------------------------------------------
------------------------------------------------------------------------------------------------------
A2.1.2.0 Overall Floor Plan-Level 2 x x
------------------------------------------------------------------------------------------------------
A2.1.2.1 Xxxxx 0 , Xxxxx 0, Xxxxx Plan x x
------------------------------------------------------------------------------------------------------
------------------------------------------------------------------------------------------------------
A2.1.3.0 Overall Floor Plan-Level 3 x x
------------------------------------------------------------------------------------------------------
A2.1.3.1 Xxxxx 0 , Xxxxx 0, Xxxxx Plan x x
------------------------------------------------------------------------------------------------------
------------------------------------------------------------------------------------------------------
A2.1.4.0 Overall Floor Plan-Level 4 x x
------------------------------------------------------------------------------------------------------
A2.1.4.1 Xxxxx 0 , Xxxxx 0, Xxxxx Plan x x
------------------------------------------------------------------------------------------------------
------------------------------------------------------------------------------------------------------
A2.1.5.0 Overall Floor Plan Penthouse Level x x
------------------------------------------------------------------------------------------------------
A2.1.5.1 Phase 1 , Penthouse Level, Floor Plan x x
------------------------------------------------------------------------------------------------------
------------------------------------------------------------------------------------------------------
A2.1.6.0 Overall Floor Plan - Roof Level x x
------------------------------------------------------------------------------------------------------
------------------------------------------------------------------------------------------------------
A2.1.7.0 Not Used
------------------------------------------------------------------------------------------------------
------------------------------------------------------------------------------------------------------
A2.1.7.1 Enlarged Plans - Exterior Walls x x
------------------------------------------------------------------------------------------------------
A2.1.7.2 Enlarged Plans - Lobby Core x x
------------------------------------------------------------------------------------------------------
A2.1.7.3 Enlarged Plans and Sections - Stair No. 2 x x
------------------------------------------------------------------------------------------------------
A2.1.7.4 Enlarged Plans and Sections - Stair No. 3 x x
------------------------------------------------------------------------------------------------------
A2.1.7.5 Sections - Stair No. 1 x x
------------------------------------------------------------------------------------------------------
------------------------------------------------------------------------------------------------------
A3.0 Not Used
------------------------------------------------------------------------------------------------------
A3.1 Door,Window, Wall Type & Mtg Hght Sched. x x
------------------------------------------------------------------------------------------------------
A3.1a Fire Rated System Details x
------------------------------------------------------------------------------------------------------
A3.2 Exterior Window Schedule x x
------------------------------------------------------------------------------------------------------
------------------------------------------------------------------------------------------------------
A4.0 Not Used
------------------------------------------------------------------------------------------------------
A4.1 Building Sections x x
------------------------------------------------------------------------------------------------------
A4.2 Wall Sections x x
------------------------------------------------------------------------------------------------------
A4.3 Wall Sections x x
------------------------------------------------------------------------------------------------------
A4.4 Wall Sections x x
------------------------------------------------------------------------------------------------------
A4.5 Wall Sections x x
------------------------------------------------------------------------------------------------------
A4.6 Wall Sections x x
------------------------------------------------------------------------------------------------------
------------------------------------------------------------------------------------------------------
A5.0 Overall Exterior Elevations x x
------------------------------------------------------------------------------------------------------
A5.1 Enlarged Exterior Elevations x x
------------------------------------------------------------------------------------------------------
A5.2 Enlarged Exterior Elevations x x
------------------------------------------------------------------------------------------------------
1
EXHIBIT C-1 TO WORK LETTER
XXXXXX-XXXXXX ARCHITECTS
Document Log
Inhale, Xxxx. 0, Xxxxxxxx, Xx-0, 00000
Shell and Site Improvements
==============================================
CP-4, CP-4, Struct. P.C. 2nd P.C.C.
Construction Set Plan Check Comments Revised
SHT. NO. SHEET NAME (11-11-99) (12-3-99) (2-7-00) (2-15-00)
======================================================================================================
A6.0 Not Used
------------------------------------------------------------------------------------------------------
A6.1 Exterior Details - Site x x
------------------------------------------------------------------------------------------------------
A6.2 Exterior Details - Site and Parking x x
------------------------------------------------------------------------------------------------------
A6.3 Exterior Details - x x
------------------------------------------------------------------------------------------------------
A6.4 Exterior Details - x x x
------------------------------------------------------------------------------------------------------
A6.5 Exterior Details - x x
------------------------------------------------------------------------------------------------------
A6.6 Exterior Details - x x x
------------------------------------------------------------------------------------------------------
A6.7 Exterior Details - Plan x x
------------------------------------------------------------------------------------------------------
A6.8 Exterior Details - Roof x x x x
------------------------------------------------------------------------------------------------------
------------------------------------------------------------------------------------------------------
A7.0 Not Used
------------------------------------------------------------------------------------------------------
A7.1 Not Used
------------------------------------------------------------------------------------------------------
------------------------------------------------------------------------------------------------------
A8.0 Not Used
------------------------------------------------------------------------------------------------------
A8.1 Interior Details x x
------------------------------------------------------------------------------------------------------
A8.2 Not Used
------------------------------------------------------------------------------------------------------
A8.3 Not Used
------------------------------------------------------------------------------------------------------
A8.4 Not Used
------------------------------------------------------------------------------------------------------
------------------------------------------------------------------------------------------------------
S2.1.1.0p Pile Plan x x x
------------------------------------------------------------------------------------------------------
S2.1.1.0pc Pile Cap Plan x x x
------------------------------------------------------------------------------------------------------
S2.1.1.0 Xxxxx 0, Xxxx Plan x x x
------------------------------------------------------------------------------------------------------
S2.1.2.0 Xxxxx 0, Xxxxxxx Xxxx x x x
------------------------------------------------------------------------------------------------------
S2.1.3.0 Xxxxx 0, Xxxxxxx Xxxx x x x x
------------------------------------------------------------------------------------------------------
S2.1.4.0 Xxxxx 0, Xxxxxxx Xxxx x x x x
------------------------------------------------------------------------------------------------------
S2.1.5.0 Roof Framing Plan x x x
------------------------------------------------------------------------------------------------------
S2.1.6.0 Penthouse Framing Plan x x x
------------------------------------------------------------------------------------------------------
------------------------------------------------------------------------------------------------------
S3.1.1 Braced Frame Elevations x x x x
------------------------------------------------------------------------------------------------------
------------------------------------------------------------------------------------------------------
S4.1.1 General Notes & Typical Concrete Details x x x
------------------------------------------------------------------------------------------------------
------------------------------------------------------------------------------------------------------
S5.1.1 Concrete Details x x x
------------------------------------------------------------------------------------------------------
S5.1.2 Pile Cap Details x x x
------------------------------------------------------------------------------------------------------
S5.1.3 Concrete Slab Details x x x
------------------------------------------------------------------------------------------------------
------------------------------------------------------------------------------------------------------
S7.1.1 Metal Deck Details x x x
------------------------------------------------------------------------------------------------------
S7.1.2 Typical Steel Framing Details x x x x
------------------------------------------------------------------------------------------------------
S7.1.3 Steel Column Details x x x
------------------------------------------------------------------------------------------------------
S7.1.4 Steel Details x x x x
------------------------------------------------------------------------------------------------------
S7.1..5 Miscellaneous Steel Details x x x
------------------------------------------------------------------------------------------------------
S7.1.6 Miscellaneous Steel Details x x
------------------------------------------------------------------------------------------------------
------------------------------------------------------------------------------------------------------
P1.0 Overall Site Plan Plumging/Process Piping x
------------------------------------------------------------------------------------------------------
P2.1.1.1 Xxxxx 0, Xxxxx 0, Xxxxxxxx Plan x
------------------------------------------------------------------------------------------------------
P2.1.2.1 Xxxxx 0, Xxxxx 0, Xxxxxxxx Plan x
------------------------------------------------------------------------------------------------------
P2.1.3.1 Xxxxx 0, Xxxxx 0, Xxxxxxxx Plan x
------------------------------------------------------------------------------------------------------
P2.1.4.1 Xxxxx 0, Xxxxx 0, Xxxxxxxx Plan x
------------------------------------------------------------------------------------------------------
P2.1.5.1 Xxxxx 0, Xxxxx 0, Xxxxxxxx Plan x
------------------------------------------------------------------------------------------------------
------------------------------------------------------------------------------------------------------
E0.1 One Line Diagram, Details & Schedules x x
------------------------------------------------------------------------------------------------------
E1.0 Site Power Plan x x
------------------------------------------------------------------------------------------------------
E1.1 Site Lighting Plan x x
------------------------------------------------------------------------------------------------------
E2.1 Phase 1, Level 1, Lighting Plan x x
------------------------------------------------------------------------------------------------------
E2.2 Phase 1, Level 2, Lighting Plan x x
------------------------------------------------------------------------------------------------------
------------------------------------------------------------------------------------------------------
PK1 Not Used
------------------------------------------------------------------------------------------------------
PK1.1 Fire Truck Turning Radius Study x x
------------------------------------------------------------------------------------------------------
PK1.2 Fire Truck Turning Radius Study x x
------------------------------------------------------------------------------------------------------
PK1.3 Fire Truck Turning Radius Study x x
------------------------------------------------------------------------------------------------------
PK2 Not Used
------------------------------------------------------------------------------------------------------
PK3 Sign Schedule Details x x
------------------------------------------------------------------------------------------------------
PK4 Striping Details x x
------------------------------------------------------------------------------------------------------
PK5 Typical Details x x
------------------------------------------------------------------------------------------------------
PK6 Control Lane Plans & Details x x
------------------------------------------------------------------------------------------------------
2
EXHIBIT C-1 TO WORK LETTER
XXXXXX-XXXXXX ARCHITECTS
Document Log
Inhale, Xxxx. 0, Xxxxxxxx, Xx-0, 00000
Shell and Site Improvements
==============================================
CP-4, CP-4, Struct. P.C. 2nd P.C.C.
Construction Set Plan Check Comments Revised
SHT. NO. SHEET NAME (11-11-99) (12-3-99) (2-7-00) (2-15-00)
======================================================================================================
General Conditions - AIA A201 x x
------------------------------------------------------------------------------------------------------
------------------------------------------------------------------------------------------------------
Materials List
------------------------------------------------------------------------------------------------------
Temporary Materials List
------------------------------------------------------------------------------------------------------
Structural Outline Specifications
------------------------------------------------------------------------------------------------------
------------------------------------------------------------------------------------------------------
------------------------------------------------------------------------------------------------------
DIVISION 1 GENERAL REQUIREMENTS
------------------------------------------------------------------------------------------------------
1010 Summary of the Work x x
------------------------------------------------------------------------------------------------------
1020 Allowances x x
------------------------------------------------------------------------------------------------------
1026 Unit Prices
------------------------------------------------------------------------------------------------------
1028 Applications for Payment
------------------------------------------------------------------------------------------------------
1030 Alternates x x
------------------------------------------------------------------------------------------------------
1045 Cutting and Patching x
------------------------------------------------------------------------------------------------------
1049 Supporting from Building Structure x x
------------------------------------------------------------------------------------------------------
1300 Submittals x x
------------------------------------------------------------------------------------------------------
1400 Quality Control x x
------------------------------------------------------------------------------------------------------
1430 Mock-Ups x x
------------------------------------------------------------------------------------------------------
1500 Construction Facilities & Temporary x x
Controls
------------------------------------------------------------------------------------------------------
1540 Site Security & Safety x x
------------------------------------------------------------------------------------------------------
1600 Materials & Equipment x x
------------------------------------------------------------------------------------------------------
1640 Hazardous Materials x x
------------------------------------------------------------------------------------------------------
1700 Contract Closeout x x
------------------------------------------------------------------------------------------------------
1900 Colors x x
------------------------------------------------------------------------------------------------------
------------------------------------------------------------------------------------------------------
DIVISION 2 SITE WORK
------------------------------------------------------------------------------------------------------
Outline Specifications
------------------------------------------------------------------------------------------------------
2050 Demolition
------------------------------------------------------------------------------------------------------
0000 Xxxxxxxxx x x
------------------------------------------------------------------------------------------------------
2211 Site Grading x x
------------------------------------------------------------------------------------------------------
2226 Structural Excavation & Backfilling x x
------------------------------------------------------------------------------------------------------
2235 Vapor Barrier & Sand Cushion x x
------------------------------------------------------------------------------------------------------
2300 Piling x x
------------------------------------------------------------------------------------------------------
2520 Site Concrete x x
------------------------------------------------------------------------------------------------------
2525 Specialty Walkway Paving and x x
Surfacing
------------------------------------------------------------------------------------------------------
2530 Sanitary Sewer
------------------------------------------------------------------------------------------------------
2630 Storm Drainage
------------------------------------------------------------------------------------------------------
2700 Site Utilities x x
------------------------------------------------------------------------------------------------------
2726 Trench Drains x x
------------------------------------------------------------------------------------------------------
2727 Site Drainage x x
------------------------------------------------------------------------------------------------------
2505/2745 Asphaltic Concrete Paving x x
------------------------------------------------------------------------------------------------------
2753 Portland Cement Concrete Paving
------------------------------------------------------------------------------------------------------
2770 Curbs and Gutters
------------------------------------------------------------------------------------------------------
2810 Irrigation Systems x x
------------------------------------------------------------------------------------------------------
2830 Retaining Walls
------------------------------------------------------------------------------------------------------
2920 Soil Preparation x x
------------------------------------------------------------------------------------------------------
2950 Trees, Plants, and Groundcovers x x
------------------------------------------------------------------------------------------------------
2970 Landscape Maintenance x x
------------------------------------------------------------------------------------------------------
------------------------------------------------------------------------------------------------------
DIVISION 3 CONCRETE
------------------------------------------------------------------------------------------------------
3100 Concrete Formwork x x
------------------------------------------------------------------------------------------------------
3200 Concrete Reinforcement x x
------------------------------------------------------------------------------------------------------
3300 Cast-in-Place Concrete x x
------------------------------------------------------------------------------------------------------
3410 Glass Fiber Reinforced Concrete Panels x x
------------------------------------------------------------------------------------------------------
3450 Architectural Precast Concrete
------------------------------------------------------------------------------------------------------
3455 Glass Fiber Reinforced Concrete x x
Wall Panels
------------------------------------------------------------------------------------------------------
3600 Concrete Tests and Inspections x x
------------------------------------------------------------------------------------------------------
3
EXHIBIT C-1 TO WORK LETTER
XXXXXX-XXXXXX ARCHITECTS
Document Log
Inhale, Xxxx. 0, Xxxxxxxx, Xx-0, 00000
Shell and Site Improvements
==============================================
CP-4, CP-4, Struct. P.C. 2nd P.C.C.
Construction Set Plan Check Comments Revised
SHT. NO. SHEET NAME (11-11-99) (12-3-99) (2-7-00) (2-15-00)
======================================================================================================
DIVISION 4 MASONRY
------------------------------------------------------------------------------------------------------
4220 Concrete Unit Masonry
------------------------------------------------------------------------------------------------------
4400 Stone
------------------------------------------------------------------------------------------------------
------------------------------------------------------------------------------------------------------
DIVISION 5 METALS
------------------------------------------------------------------------------------------------------
5120 Structural Steel x x
------------------------------------------------------------------------------------------------------
5310 Steel Decking x x
------------------------------------------------------------------------------------------------------
5440 Light Gauge Framing x x
------------------------------------------------------------------------------------------------------
5445 Metal Wall Panels
------------------------------------------------------------------------------------------------------
5500 Metal Fabrications x x
------------------------------------------------------------------------------------------------------
5510 Metal Stairs x x
------------------------------------------------------------------------------------------------------
5800 Expansion Control
------------------------------------------------------------------------------------------------------
5805 Expansion Joint Covers x x
------------------------------------------------------------------------------------------------------
5999 Miscellaneous Metals x x
------------------------------------------------------------------------------------------------------
------------------------------------------------------------------------------------------------------
DIVISION 6 WOOD & PLASTICS
------------------------------------------------------------------------------------------------------
6100 Rough Carpentry x x
------------------------------------------------------------------------------------------------------
6200 Finish Carpentry x x
------------------------------------------------------------------------------------------------------
------------------------------------------------------------------------------------------------------
DIVISION 7 THERMAL & MOISTURE PROTECTION
------------------------------------------------------------------------------------------------------
7100 Waterproofing & Dampproofing
------------------------------------------------------------------------------------------------------
7130 Below Grade Waterproofing x x
------------------------------------------------------------------------------------------------------
7142 Rubberized Asphalt Membrane x x
Waterproofing
------------------------------------------------------------------------------------------------------
7145 Crystallization Waterproofing x x
------------------------------------------------------------------------------------------------------
7200 Insulation x x
------------------------------------------------------------------------------------------------------
7240 Exterior Insulation Finish System (EIFS) x x
------------------------------------------------------------------------------------------------------
7400 Factory Formed Metal Panel System x x
------------------------------------------------------------------------------------------------------
7410 Composite Aluminum Building Panels
------------------------------------------------------------------------------------------------------
7450 Mineral Fiber Siding x x
------------------------------------------------------------------------------------------------------
7511 Built-up Roofing (Metal Deck) x x
------------------------------------------------------------------------------------------------------
7610 Metal Roofing x x
------------------------------------------------------------------------------------------------------
7600 Flashing & Sheet Metal x x
------------------------------------------------------------------------------------------------------
7700 Roof Accessories x x
------------------------------------------------------------------------------------------------------
7810 Sparyu Applied Fire Resistive Coating x x
------------------------------------------------------------------------------------------------------
7815 Intumescent Coatings x x
------------------------------------------------------------------------------------------------------
7840 Firesstoppping and Smokeseals x x
------------------------------------------------------------------------------------------------------
7915 Compression Seals x x
------------------------------------------------------------------------------------------------------
7920 Sealants & Caulking x x
------------------------------------------------------------------------------------------------------
------------------------------------------------------------------------------------------------------
DIVISION 8 DOORS & WINDOWS
------------------------------------------------------------------------------------------------------
8100 Hollow Metal Doors & Frames x x
------------------------------------------------------------------------------------------------------
8200 Wood Doors x x
------------------------------------------------------------------------------------------------------
8300 Special Doors x x
------------------------------------------------------------------------------------------------------
8499 Exterior Aluminum door & Glass Systems x x
------------------------------------------------------------------------------------------------------
8710 Finish Hardware x x
------------------------------------------------------------------------------------------------------
8800 Glazing x x
------------------------------------------------------------------------------------------------------
------------------------------------------------------------------------------------------------------
DIVISION 9 FINISHES
------------------------------------------------------------------------------------------------------
9290 Drywall Systems x x
------------------------------------------------------------------------------------------------------
9300 Ceramic Tile
------------------------------------------------------------------------------------------------------
9900 Painting x x
------------------------------------------------------------------------------------------------------
------------------------------------------------------------------------------------------------------
DIVISION 10 SPECIALTIES
------------------------------------------------------------------------------------------------------
10210 Louvers x x
------------------------------------------------------------------------------------------------------
10430 Exterior Signs
------------------------------------------------------------------------------------------------------
10440 Interior Signs
------------------------------------------------------------------------------------------------------
10999 Miscellaneous Specialties
------------------------------------------------------------------------------------------------------
4
EXHIBIT C-1 TO WORK LETTER
XXXXXX-XXXXXX ARCHITECTS
Document Log
Inhale, Xxxx. 0, Xxxxxxxx, Xx-0, 00000
Shell and Site Improvements
==============================================
CP-4, CP-4, Struct. P.C. 2nd P.C.C.
Construction Set Plan Check Comments Revised
SHT. NO. SHEET NAME (11-11-99) (12-3-99) (2-7-00) (2-15-00)
======================================================================================================
------------------------------------------------------------------------------------------------------
DIVISION 11 EQUIPMENT
------------------------------------------------------------------------------------------------------
11150 Parking Control Equipment x x
------------------------------------------------------------------------------------------------------
11160 Loading Dock Equipment x x
------------------------------------------------------------------------------------------------------
11170 Waste Handling Equipment
------------------------------------------------------------------------------------------------------
------------------------------------------------------------------------------------------------------
DIVISION 12 FURNISHINGS
------------------------------------------------------------------------------------------------------
------------------------------------------------------------------------------------------------------
------------------------------------------------------------------------------------------------------
DIVISION 13 SPECIAL CONSTRUCTION
------------------------------------------------------------------------------------------------------
------------------------------------------------------------------------------------------------------
------------------------------------------------------------------------------------------------------
DIVISION 14 CONVEYING SYSTEMS
------------------------------------------------------------------------------------------------------
14240 Passenger Elevators (2- 4 stops) x x
------------------------------------------------------------------------------------------------------
14245 Freight Elevators (1-3 stops)
------------------------------------------------------------------------------------------------------
14600 Jib Crane & Hoist x x
------------------------------------------------------------------------------------------------------
14610 Davit System
------------------------------------------------------------------------------------------------------
------------------------------------------------------------------------------------------------------
DIVISION 15 MECHANICAL (Design by Xxxxxx)
------------------------------------------------------------------------------------------------------
Outline Mechanicl Equipment
Specifications
------------------------------------------------------------------------------------------------------
15400 Plumbing x x
------------------------------------------------------------------------------------------------------
15500 Heating, Ventilating, & Air Conditioning
------------------------------------------------------------------------------------------------------
------------------------------------------------------------------------------------------------------
DIVISION 16 ELECTRICAL (Xxxxxxxxx & Light)
------------------------------------------------------------------------------------------------------
Outline Electrical Specifications
------------------------------------------------------------------------------------------------------
16010 Electrical General Provisions x x
------------------------------------------------------------------------------------------------------
16050 Basic Materials and Methods x x
------------------------------------------------------------------------------------------------------
16195 Electrical Identification
------------------------------------------------------------------------------------------------------
16250 Automatic Transfer Switches
------------------------------------------------------------------------------------------------------
16400 Service and Distribution
------------------------------------------------------------------------------------------------------
16500 Lighting
------------------------------------------------------------------------------------------------------
16620 Emergency Generators
------------------------------------------------------------------------------------------------------
16721 Fire Alarm/Life Safety System
------------------------------------------------------------------------------------------------------
16900 Electrical Controls
------------------------------------------------------------------------------------------------------
16901 Electrical Sensing and Measurement
------------------------------------------------------------------------------------------------------
16920 Motor Control Centers
------------------------------------------------------------------------------------------------------
16950 Testing Requirements
------------------------------------------------------------------------------------------------------
16960 Short Circuit Analysis and Coordination
------------------------------------------------------------------------------------------------------
5
SCHEDULE C-2 TO WORK LETTER
DEFINITION OF BUILDING CORE
The "BUILDING CORE" for Building 1 as defined in the Work Letter to which
this SCHEDULE C-2 is attached shall consist of work described in the
following plans: (attached)
EXHIBIT C-2 TO WORK LETTER
XXXXXX-XXXXXX ARCHITECTS
Documents Log
Inhale, Xxxx. 0, Xxxxxxxx, Xx-0, 00000
Tenant Improvements
========================================
Design Progress Plan
Development Print Check Bld Set
SHT. NO. SHEET NAME (10-29-99) (12-7-99) (1-7-00) (2-28-00)
==================================================================================================
ARCHITECTURAL
==================================================================================================
A0 Cover Sheet and Project Data x x x x
--------------------------------------------------------------------------------------------------
A0.1 Code Compliance x x x x
--------------------------------------------------------------------------------------------------
A0.2 Phase A, Level-4, Code Compliance x x x
--------------------------------------------------------------------------------------------------
A0.3 Title 24 Code Compliance
--------------------------------------------------------------------------------------------------
--------------------------------------------------------------------------------------------------
A1.0 Overall Site Plan R R
--------------------------------------------------------------------------------------------------
--------------------------------------------------------------------------------------------------
A2.1.1.1 Phase A , Level 1, Floor Plan x x x x
--------------------------------------------------------------------------------------------------
--------------------------------------------------------------------------------------------------
A2.1.2.1 Xxxxx X , Xxxxx 0, Xxxxx Plan x x x x
--------------------------------------------------------------------------------------------------
--------------------------------------------------------------------------------------------------
A2.1.3.1 Xxxxx X , Xxxxx 0, Xxxxx Plan x
--------------------------------------------------------------------------------------------------
--------------------------------------------------------------------------------------------------
A2.1.3.1r Phase A, Level 3, Reflected Ceiling Plan x
--------------------------------------------------------------------------------------------------
--------------------------------------------------------------------------------------------------
A2.1.4.1 Phase A , Level 4, Floor Plan x x x x
--------------------------------------------------------------------------------------------------
A2.1.4.2 Phase A , Xxxxx 0, Xxxx X, Xxxxx Xxxx x x x x
--------------------------------------------------------------------------------------------------
A2.1.4.3 Xxxxx X , Xxxxx 0, Xxxx X, Xxxxx Plan x x x x
--------------------------------------------------------------------------------------------------
A2.1.4.4 Phase X , Xxxxx 0, Xxxx X, Xxxxx Plan x x x x
--------------------------------------------------------------------------------------------------
--------------------------------------------------------------------------------------------------
A2.1.5.1 Phase A , Penthouse Level, Floor Plan x x x x
--------------------------------------------------------------------------------------------------
--------------------------------------------------------------------------------------------------
A2.1.7.1 Not Used
--------------------------------------------------------------------------------------------------
A2.1.7.2 Phase A, Enlarged Plans, Lobby Core x x x x
--------------------------------------------------------------------------------------------------
A2.1.7.3 Enlarged Plans - Stairs No. 2 & 3 x x x x
--------------------------------------------------------------------------------------------------
--------------------------------------------------------------------------------------------------
A2.1.4.2c Xxxxx X , Xxxxx 0, Xxxx A, Casework Plan x x x
--------------------------------------------------------------------------------------------------
A2.1.4.3c Phase A , Level 4, Area B, Casework Plan x x x
--------------------------------------------------------------------------------------------------
A2.1.4.4c Phase A , Level 4, Area C, Casework Plan x x x
--------------------------------------------------------------------------------------------------
--------------------------------------------------------------------------------------------------
A2.1.4.2q Xxxxx X , Xxxxx 0, Xxxx A, Equipment Plan x x
--------------------------------------------------------------------------------------------------
A2.1.4.3q Xxxxx X , Xxxxx 0, Xxxx B, Equipment Plan x x
--------------------------------------------------------------------------------------------------
--------------------------------------------------------------------------------------------------
A2.1.4.1f Phase A, Level 4, Finish Plan x x x
--------------------------------------------------------------------------------------------------
A2.1.4.2f Xxxxx X , Xxxxx 0, Xxxx A, Finish Plan x x x
--------------------------------------------------------------------------------------------------
A2.1.4.3f Phase A , Level 4, Area B, Finish Plan x x x
--------------------------------------------------------------------------------------------------
A2.1.4.4f Phase A , Level 4, Area C, Finish Plan x x x
--------------------------------------------------------------------------------------------------
--------------------------------------------------------------------------------------------------
A2.1.7.1f Not Used
--------------------------------------------------------------------------------------------------
A2.1.7.2f Phase A, Lobby Core, Finish Plans x x x
--------------------------------------------------------------------------------------------------
A2.1.7.3f Stairs No. 2 & 3 Finish Plans x x x
--------------------------------------------------------------------------------------------------
1
EXHIBIT C-2 TO WORK LETTER
XXXXXX-XXXXXX ARCHITECTS
Documents Log
Inhale, Xxxx. 0, Xxxxxxxx, Xx-0, 00000
Tenant Improvements
========================================
Design Progress Plan
Development Print Check Bld Set
SHT. NO. SHEET NAME (10-29-99) (12-7-99) (1-7-00) (2-28-00)
==================================================================================================
A2.1.4.1r Phase A, Level 4, Reflected Ceiling Plan x x x
--------------------------------------------------------------------------------------------------
A2.1.4.2r Xxxxx X , Xxxxx 0, Xxxx A, RCP x x
--------------------------------------------------------------------------------------------------
A2.1.4.3r Phase A , Level 4, Area B, RCP x x
--------------------------------------------------------------------------------------------------
A2.1.4.4r Phase A , Level 4, Area C, RCP x x
--------------------------------------------------------------------------------------------------
--------------------------------------------------------------------------------------------------
A2.1.7.1r Not Used
--------------------------------------------------------------------------------------------------
A2.1.7.2r Phase A, Lobby Core, Reflected Ceiling x x
Plan
--------------------------------------------------------------------------------------------------
A2.1.7.3r Stairs No. 2 & 3 Refl. Ceiling x x
--------------------------------------------------------------------------------------------------
--------------------------------------------------------------------------------------------------
A3.0 Not Used
--------------------------------------------------------------------------------------------------
A3.1 Door & Window Schedule x x x x
--------------------------------------------------------------------------------------------------
A3.2 Partition Types x x x
--------------------------------------------------------------------------------------------------
A3.3 Casework Schedule x x x
--------------------------------------------------------------------------------------------------
A3.4 Penetration Details x x x
--------------------------------------------------------------------------------------------------
A3.5.1 Equipment Matrix
--------------------------------------------------------------------------------------------------
--------------------------------------------------------------------------------------------------
A4.0 Not Used
--------------------------------------------------------------------------------------------------
A4.1 Wall Sections x x x
--------------------------------------------------------------------------------------------------
A4.2 Wall Details x x x x
--------------------------------------------------------------------------------------------------
A4.3 Not Used x
--------------------------------------------------------------------------------------------------
A4.4 Not Used x
--------------------------------------------------------------------------------------------------
A4.5 Not Used x
--------------------------------------------------------------------------------------------------
--------------------------------------------------------------------------------------------------
A7.0 Not Used
--------------------------------------------------------------------------------------------------
A7.1 Interior Sections x x x x
--------------------------------------------------------------------------------------------------
A7.2 Interior Sections x x x x
--------------------------------------------------------------------------------------------------
A7.3 Interior Elevations x x x
--------------------------------------------------------------------------------------------------
A7.4 Interior Elevations x x x
--------------------------------------------------------------------------------------------------
--------------------------------------------------------------------------------------------------
A8.0 Not Used
--------------------------------------------------------------------------------------------------
A8.1 Interior Details - Doors & Windows x x x
--------------------------------------------------------------------------------------------------
A8.2 Interior Details -Partitions x x x
--------------------------------------------------------------------------------------------------
A8.3 Interior Details - Finishes & Exterior x x x
Details - Roofing
--------------------------------------------------------------------------------------------------
A8.4 Ineterior Details - Ceiling x x x
--------------------------------------------------------------------------------------------------
A8.5 Interior Details - Casework x x x
--------------------------------------------------------------------------------------------------
A8.6 Interior Details - Miscellaneous x x x
--------------------------------------------------------------------------------------------------
--------------------------------------------------------------------------------------------------
STRUCTURAL
--------------------------------------------------------------------------------------------------
S2.1.4.1 Framing Plan, Xxxxx 0, Xxxxx A x x
--------------------------------------------------------------------------------------------------
S2.1.5.1 Roof Framing Plan x x
--------------------------------------------------------------------------------------------------
S7.1.6 Misc. Details x x
--------------------------------------------------------------------------------------------------
--------------------------------------------------------------------------------------------------
2
EXHIBIT C-2 TO WORK LETTER
XXXXXX-XXXXXX ARCHITECTS
Documents Log
Inhale, Xxxx. 0, Xxxxxxxx, Xx-0, 00000
Tenant Improvements
========================================
Design Progress Plan
Development Print Check Bld Set
SHT. NO. SHEET NAME (10-29-99) (12-7-99) (1-7-00) (2-28-00)
==================================================================================================
MECHANICAL
--------------------------------------------------------------------------------------------------
M-0.1 Mechanical Equipment Schedule x x x x
--------------------------------------------------------------------------------------------------
MT-24 Mechanical Titel-24 Compliance x x
--------------------------------------------------------------------------------------------------
--------------------------------------------------------------------------------------------------
M2.1.2.2 Phase A, Level 2, Area A, Mechanical Plan x x
--------------------------------------------------------------------------------------------------
--------------------------------------------------------------------------------------------------
M2.1.4.1 Phase A, Level 4, Mechanical Plan x x x
--------------------------------------------------------------------------------------------------
M2.1.4.2 Phase A, Level 4, Area A, Mechanical Plan x x
--------------------------------------------------------------------------------------------------
M2.1.4.3 Xxxxx X, Xxxxx 0, Xxxx X, Mechanical Plan x x
--------------------------------------------------------------------------------------------------
M2.1.4.4 Phase A, Level 4, Area C, Mechanical Plan x x
--------------------------------------------------------------------------------------------------
M2.1.7.2 Enlarged Mechanical Lobby Core Plans x
--------------------------------------------------------------------------------------------------
--------------------------------------------------------------------------------------------------
M2.1.5.1 Phase A, Penthouse Level, Mechanical Plan x x x x
--------------------------------------------------------------------------------------------------
--------------------------------------------------------------------------------------------------
M3.1 Mechanical Sections & Details x x x
--------------------------------------------------------------------------------------------------
--------------------------------------------------------------------------------------------------
--------------------------------------------------------------------------------------------------
--------------------------------------------------------------------------------------------------
--------------------------------------------------------------------------------------------------
--------------------------------------------------------------------------------------------------
PLUMBING
--------------------------------------------------------------------------------------------------
P0 General x x
--------------------------------------------------------------------------------------------------
--------------------------------------------------------------------------------------------------
P2.1.1.1 Phase A, Level 1, Piping Plan x x
--------------------------------------------------------------------------------------------------
P2.1.2.1 Phase A, Level 2, Piping Plan x x
--------------------------------------------------------------------------------------------------
--------------------------------------------------------------------------------------------------
P2.1.3.1 Phase A, Level 3, Piping Plan x x
--------------------------------------------------------------------------------------------------
P2.1.3.2 Phase A, Level 3, Area A, Piping Plan x x
--------------------------------------------------------------------------------------------------
P2.1.3.3 Phase A, Level 3, Area B, Piping Plan x x
--------------------------------------------------------------------------------------------------
--------------------------------------------------------------------------------------------------
P2.1.4.1 Phase A, Level 4, Piping Plan x x
--------------------------------------------------------------------------------------------------
P2.1.4.2 Phase A, Level 4, Area A, Piping Plan x x
--------------------------------------------------------------------------------------------------
P2.1.4.3 Phase A, Level 4, Area B, Piping Plan x x
--------------------------------------------------------------------------------------------------
--------------------------------------------------------------------------------------------------
P2.1.5.1 Phase A, Penthouse Level, Piping Plan x x
--------------------------------------------------------------------------------------------------
--------------------------------------------------------------------------------------------------
P3.1 Enlarged Toilet Core Plans, Isometric, Riser x x
--------------------------------------------------------------------------------------------------
P4.1 Partial 4th Flr. Plan, Mechanical Room x x x
and Detail
--------------------------------------------------------------------------------------------------
P6.1 Details x x
--------------------------------------------------------------------------------------------------
--------------------------------------------------------------------------------------------------
P2.1 Partial Third Floor Plan Mechanical x
Room and detail piping
--------------------------------------------------------------------------------------------------
P2.1.3.1 Partial Third Floor Plan - Piping x
--------------------------------------------------------------------------------------------------
P2.1.3.2 Partial Third Floor Plan Piping x
--------------------------------------------------------------------------------------------------
P2.1.3.3 Partial Third Floor Plan - Piping x
--------------------------------------------------------------------------------------------------
P2.1.3.4 Partial Third Floor Plan - Piping x
--------------------------------------------------------------------------------------------------
--------------------------------------------------------------------------------------------------
3
EXHIBIT C-2 TO WORK LETTER
XXXXXX-XXXXXX ARCHITECTS
Documents Log
Inhale, Xxxx. 0, Xxxxxxxx, Xx-0, 00000
Tenant Improvements
========================================
Design Progress Plan
Development Print Check Bld Set
SHT. NO. SHEET NAME (10-29-99) (12-7-99) (1-7-00) (2-28-00)
==================================================================================================
ELECTRICAL
--------------------------------------------------------------------------------------------------
E0.1 Legend, Titel 24 and Schedules x x
--------------------------------------------------------------------------------------------------
E0.2 One Line Diagram x x
--------------------------------------------------------------------------------------------------
--------------------------------------------------------------------------------------------------
E2.1.1.1 Phase A, Level 1, Electrical Plan x x
--------------------------------------------------------------------------------------------------
E2.1.2.1 Phase A, Level 2, Electrical Plan x x x
--------------------------------------------------------------------------------------------------
E2.1.3.1 Phase A, Level 3, Electrical Plan x x x
--------------------------------------------------------------------------------------------------
--------------------------------------------------------------------------------------------------
E2.1.4.1 Phase A, Level 4, Electrical Plan x x x
--------------------------------------------------------------------------------------------------
E2.1.4.2 Xxxxx X, Xxxxx 0, Xxxx X, Electrical Plan x x
--------------------------------------------------------------------------------------------------
E2.1.4.3 Xxxxx X, Xxxxx 0, Xxxx X, Electrical Plan x x
--------------------------------------------------------------------------------------------------
E2.1.4.4 Xxxxx X, Xxxxx 0, Xxxx X, Electrical Plan x x
--------------------------------------------------------------------------------------------------
--------------------------------------------------------------------------------------------------
E2.1.5.1 Phase A, Penthouse Level, Electrical Plan x x
--------------------------------------------------------------------------------------------------
--------------------------------------------------------------------------------------------------
E6.0 Panel Schedules x x
--------------------------------------------------------------------------------------------------
--------------------------------------------------------------------------------------------------
Interior Xxxxx 0, Xxxxx 0, Power Plan x
--------------------------------------------------------------------------------------------------
2nd Floor Power Plan x
--------------------------------------------------------------------------------------------------
3rd Floor Power Plan x
--------------------------------------------------------------------------------------------------
--------------------------------------------------------------------------------------------------
4
EXHIBIT C-2 TO WORK LETTER
XXXXXX-XXXXXX ARCHITECTS
Documents Log
Inhale, Xxxx. 0, Xxxxxxxx, Xx-0, 00000
Tenant Improvements
========================================
Design Progress Plan
Development Print Check Bld Set
SHT. NO. SHEET NAME (10-29-99) (12-7-99) (1-7-00) (2-28-00)
==================================================================================================
General Conditions -AIA 111, AIA A201 x
--------------------------------------------------------------------------------------------------
--------------------------------------------------------------------------------------------------
DIVISION 1 GENERAL REQUIREMENTS
--------------------------------------------------------------------------------------------------
1010 Summary of the Work x
--------------------------------------------------------------------------------------------------
1018 Owner Furnished Equipment x
--------------------------------------------------------------------------------------------------
1020 Allowances x
--------------------------------------------------------------------------------------------------
1030 Alternates x
--------------------------------------------------------------------------------------------------
1045 Cutting and Patching x
--------------------------------------------------------------------------------------------------
1049 Supporting from Building Structure x
--------------------------------------------------------------------------------------------------
1300 Submittals x
--------------------------------------------------------------------------------------------------
1400 Quality Control x
--------------------------------------------------------------------------------------------------
1430 Mock-Ups x
--------------------------------------------------------------------------------------------------
1500 Construction Facilities & Temporary x
Controls
--------------------------------------------------------------------------------------------------
1540 Site Security & Safety x
--------------------------------------------------------------------------------------------------
1600 Materials & Equipment x
--------------------------------------------------------------------------------------------------
1640 Hazardous Materials x
--------------------------------------------------------------------------------------------------
1700 Contract Closeout x
--------------------------------------------------------------------------------------------------
1900 Colors x
--------------------------------------------------------------------------------------------------
--------------------------------------------------------------------------------------------------
DIVISION 2 SITE WORK
--------------------------------------------------------------------------------------------------
2070 Selective Demolition x
--------------------------------------------------------------------------------------------------
2831 Chain Link Fence and Gate x
--------------------------------------------------------------------------------------------------
--------------------------------------------------------------------------------------------------
DIVISION 3 CONCRETE
--------------------------------------------------------------------------------------------------
3320 Leveling Topping x
--------------------------------------------------------------------------------------------------
--------------------------------------------------------------------------------------------------
DIVISION 4 MASONRY
--------------------------------------------------------------------------------------------------
--------------------------------------------------------------------------------------------------
DIVISION 5 METALS
--------------------------------------------------------------------------------------------------
5999 Miscellaneous Metals x
--------------------------------------------------------------------------------------------------
--------------------------------------------------------------------------------------------------
DIVISION 6 WOOD & PLASTICS
--------------------------------------------------------------------------------------------------
6200 Finish Carpentry x
--------------------------------------------------------------------------------------------------
6410 Custom Casework x
--------------------------------------------------------------------------------------------------
6640 FRP Panels x
--------------------------------------------------------------------------------------------------
--------------------------------------------------------------------------------------------------
DIVISION 7 THERMAL & MOISTURE PROTECTION
--------------------------------------------------------------------------------------------------
7200 Insulation x
--------------------------------------------------------------------------------------------------
7510 Repairs to Existing Built-up x
Bituminous Roofing
--------------------------------------------------------------------------------------------------
7600 Flashing & Sheet Metal x
--------------------------------------------------------------------------------------------------
7840 Firesstoppping and Smokeseals x
--------------------------------------------------------------------------------------------------
7920 Sealants & Caulking x
--------------------------------------------------------------------------------------------------
--------------------------------------------------------------------------------------------------
DIVISION 8 DOORS & WINDOWS
--------------------------------------------------------------------------------------------------
8100 Hollow Metal Doors & Frames x
--------------------------------------------------------------------------------------------------
8305 Access Doors x
--------------------------------------------------------------------------------------------------
8710 Finish Hardware x
--------------------------------------------------------------------------------------------------
8800 Glazing x
--------------------------------------------------------------------------------------------------
5
EXHIBIT C-2 TO WORK LETTER
XXXXXX-XXXXXX ARCHITECTS
Documents Log
Inhale, Xxxx. 0, Xxxxxxxx, Xx-0, 00000
Tenant Improvements
========================================
Design Progress Plan
Development Print Check Bld Set
SHT. NO. SHEET NAME (10-29-99) (12-7-99) (1-7-00) (2-28-00)
==================================================================================================
--------------------------------------------------------------------------------------------------
DIVISION 9 FINISHES
--------------------------------------------------------------------------------------------------
9290 Drywall Systems x
--------------------------------------------------------------------------------------------------
9500 Acoustical Treatment x
--------------------------------------------------------------------------------------------------
9600 Stone Flooring x
--------------------------------------------------------------------------------------------------
9650 Resilient Flooring x
--------------------------------------------------------------------------------------------------
9680 Carpeting x
--------------------------------------------------------------------------------------------------
9800 Special Coatings x
--------------------------------------------------------------------------------------------------
9900 Painting x
--------------------------------------------------------------------------------------------------
--------------------------------------------------------------------------------------------------
DIVISION 10 SPECIALTIES
--------------------------------------------------------------------------------------------------
10100 Markerboard and Tackboard x
--------------------------------------------------------------------------------------------------
10150 Metal Toilet Partitions x
--------------------------------------------------------------------------------------------------
10260 Corner Guards x
--------------------------------------------------------------------------------------------------
10441 Accessibility and Safety Signage x
--------------------------------------------------------------------------------------------------
10520 Fire Extinguisher Cabinets and x
Accessories
--------------------------------------------------------------------------------------------------
10605 Mesh Partitions x
--------------------------------------------------------------------------------------------------
--------------------------------------------------------------------------------------------------
DIVISION 11 EQUIPMENT
--------------------------------------------------------------------------------------------------
11132 Projection Screens x
--------------------------------------------------------------------------------------------------
11455 Appliances x
--------------------------------------------------------------------------------------------------
00000 Xxxxxxxxxx Equipment x
--------------------------------------------------------------------------------------------------
--------------------------------------------------------------------------------------------------
DIVISION 12 FURNISHINGS
--------------------------------------------------------------------------------------------------
12500 Window Treatment x
--------------------------------------------------------------------------------------------------
--------------------------------------------------------------------------------------------------
DIVISION 13 SPECIAL CONSTRUCTION
--------------------------------------------------------------------------------------------------
--------------------------------------------------------------------------------------------------
--------------------------------------------------------------------------------------------------
DIVISION 14 CONVEYING SYSTEMS
--------------------------------------------------------------------------------------------------
--------------------------------------------------------------------------------------------------
DIVISION 15 MECHANICAL (Design by Xxxxxx)
--------------------------------------------------------------------------------------------------
15400 Plumbing x
--------------------------------------------------------------------------------------------------
--------------------------------------------------------------------------------------------------
DIVISION 16 ELECTRICAL (Xxxxxxxxx & Light)
--------------------------------------------------------------------------------------------------
16010 Electrical General Provisions x
--------------------------------------------------------------------------------------------------
16050 Basic Materials and Methods x
--------------------------------------------------------------------------------------------------
--------------------------------------------------------------------------------------------------
6
SCHEDULE C-3 TO WORK LETTER
DEFINITION OF TENANT IMPROVEMENTS
The TENANT IMPROVEMENTS FOR BUILDING 1 referred to in the Work Letter to
which this SCHEDULE C-2 are described by the following plans: (attached)
EXHIBIT C-3 TO WORK LETTER
XXXXXX-XXXXXX ARCHITECTS
Document Log
Inhale, Xxxx. 0, Xxxxxxxx, Xx-0, 00000
Core Improvements
=============================================
Design Progress Plan
Development Print Check Bld set
SHT. NO. SHEET NAME (10-29-99) (12-7-99) (1-7-00) (2-28-00)
=====================================================================================================
ARCHITECTURAL
=====================================================================================================
A0 Cover Sheet and Project Data x x x x
-----------------------------------------------------------------------------------------------------
A0.1 Code Compliance x x x x
-----------------------------------------------------------------------------------------------------
A0.2 Phase A, Level-4, Code Compliance x x x
-----------------------------------------------------------------------------------------------------
A0.3 Title 24 Code Compliance
-----------------------------------------------------------------------------------------------------
-----------------------------------------------------------------------------------------------------
A1.0 Overall Site Plan R x
-----------------------------------------------------------------------------------------------------
-----------------------------------------------------------------------------------------------------
A2.1.1.1 Phase A , Level 1, Floor Plan x x x x
-----------------------------------------------------------------------------------------------------
-----------------------------------------------------------------------------------------------------
A2.1.2.1 Xxxxx X , Xxxxx 0, Xxxxx Plan x x x x
-----------------------------------------------------------------------------------------------------
-----------------------------------------------------------------------------------------------------
A2.1.3.1 Xxxxx X , Xxxxx 0, Xxxxx Plan x
-----------------------------------------------------------------------------------------------------
-----------------------------------------------------------------------------------------------------
A2.1.3.1r Phase A, Level 3, Reflected Ceiling Plan x
-----------------------------------------------------------------------------------------------------
-----------------------------------------------------------------------------------------------------
A2.1.4.1 Phase A , Level 4, Floor Plan x x x x
-----------------------------------------------------------------------------------------------------
A2.1.4.4 Phase X , Xxxxx 0, Xxxx X, Xxxxx Plan x x x x
-----------------------------------------------------------------------------------------------------
-----------------------------------------------------------------------------------------------------
A2.1.5.1 Phase A , Penthouse Level, Floor Plan x x x x
-----------------------------------------------------------------------------------------------------
-----------------------------------------------------------------------------------------------------
A2.1.7.2 Phase A, Enlarged Plans, Lobby Core x x x x
-----------------------------------------------------------------------------------------------------
A2.1.7.3 Enlarged Plans - Stairs No. 2 & 3 x x x x
-----------------------------------------------------------------------------------------------------
-----------------------------------------------------------------------------------------------------
A2.1.4.1f Phase A, Level 4, Finish Plan x x x
-----------------------------------------------------------------------------------------------------
A2.1.4.4f Phase A , Level 4, Area C, Finish Plan x x x
-----------------------------------------------------------------------------------------------------
-----------------------------------------------------------------------------------------------------
A2.1.7.2f Phase A, Lobby Core, Finish Plans x x x
-----------------------------------------------------------------------------------------------------
A2.1.7.3f Stairs No. 2 & 3 Finish Plans x x x
-----------------------------------------------------------------------------------------------------
1
EXHIBIT C-3 TO WORK LETTER
XXXXXX-XXXXXX ARCHITECTS
Document Log
Inhale, Xxxx. 0, Xxxxxxxx, Xx-0, 00000
Core Improvements
=============================================
Design Progress Plan
Development Print Check Bld set
SHT. NO. SHEET NAME (10-29-99) (12-7-99) (1-7-00) (2-28-00)
=====================================================================================================
A2.1.4.1r Phase A, Level 4, Reflected Ceiling Plan x x x
-----------------------------------------------------------------------------------------------------
A2.1.4.4r Phase A , Level 4, Area C, RCP x x
-----------------------------------------------------------------------------------------------------
-----------------------------------------------------------------------------------------------------
A2.1.7.2r Phase A, Lobby Core, Reflected Ceiling Plan x x
-----------------------------------------------------------------------------------------------------
A2.1.7.3r Stairs No. 2 & 3 Refl. Ceiling x x
-----------------------------------------------------------------------------------------------------
-----------------------------------------------------------------------------------------------------
A3.1 Door & Window Schedule x x x x
-----------------------------------------------------------------------------------------------------
A3.2 Partition Types x x x
-----------------------------------------------------------------------------------------------------
A3.4 Penetration Details x x x
-----------------------------------------------------------------------------------------------------
-----------------------------------------------------------------------------------------------------
A4.1 Wall Sections x x x
-----------------------------------------------------------------------------------------------------
A4.2 Wall Details x x x x
-----------------------------------------------------------------------------------------------------
A7.2 Interior Sections x x x x
-----------------------------------------------------------------------------------------------------
-----------------------------------------------------------------------------------------------------
A8.1 Interior Details - Doors & Windows x x x
-----------------------------------------------------------------------------------------------------
A8.2 Interior Details -Partitions x x x
-----------------------------------------------------------------------------------------------------
A8.3 Interior Details - Finishes & Exterior x x x
Details - Roofing
-----------------------------------------------------------------------------------------------------
A8.4 Interior Details - Ceiling x x x
-----------------------------------------------------------------------------------------------------
-----------------------------------------------------------------------------------------------------
STRUCTURAL
-----------------------------------------------------------------------------------------------------
S2.1.4.1 Framing Plan, Xxxxx 0, Xxxxx A x x
-----------------------------------------------------------------------------------------------------
S2.1.5.1 Roof Framing Plan x x
-----------------------------------------------------------------------------------------------------
S7.1.6 Misc. Details x x
-----------------------------------------------------------------------------------------------------
-----------------------------------------------------------------------------------------------------
2
EXHIBIT C-3 TO WORK LETTER
XXXXXX-XXXXXX ARCHITECTS
Document Log
Inhale, Xxxx. 0, Xxxxxxxx, Xx-0, 00000
Core Improvements
=============================================
Design Progress Plan
Development Print Check Bld set
SHT. NO. SHEET NAME (10-29-99) (12-7-99) (1-7-00) (2-28-00)
=====================================================================================================
MECHANICAL
-----------------------------------------------------------------------------------------------------
M-0.1 Mechanical Equipment Schedule x x x x
-----------------------------------------------------------------------------------------------------
MT-24 Mechanical Titel-24 Compliance x x
-----------------------------------------------------------------------------------------------------
-----------------------------------------------------------------------------------------------------
M2.1.2.2 Phase A, Level 2, Area A, Mechanical Plan x x
-----------------------------------------------------------------------------------------------------
-----------------------------------------------------------------------------------------------------
M2.1.4.1 Phase A, Level 4, Mechanical Plan x x x
-----------------------------------------------------------------------------------------------------
M2.1.4.2 Phase A, Level 4, Area A, Mechanical Plan x x
-----------------------------------------------------------------------------------------------------
M2.1.4.4 Phase A, Level 4, Area C, Mechanical Plan x x
-----------------------------------------------------------------------------------------------------
M2.1.7.2 Enlarged Mechanical Lobby Core Plans x
-----------------------------------------------------------------------------------------------------
-----------------------------------------------------------------------------------------------------
M2.1.5.1 Phase A, Penthouse Level, Mechanical Plan x x x x
-----------------------------------------------------------------------------------------------------
-----------------------------------------------------------------------------------------------------
M3.1 Mechanical Sections & Details x x x
-----------------------------------------------------------------------------------------------------
-----------------------------------------------------------------------------------------------------
-----------------------------------------------------------------------------------------------------
-----------------------------------------------------------------------------------------------------
-----------------------------------------------------------------------------------------------------
-----------------------------------------------------------------------------------------------------
PLUMBING
-----------------------------------------------------------------------------------------------------
P0 General x x
-----------------------------------------------------------------------------------------------------
-----------------------------------------------------------------------------------------------------
P2.1.1.1 Phase A, Level 1, Piping Plan x x
-----------------------------------------------------------------------------------------------------
P2.1.2.1 Phase A, Level 2, Piping Plan x x
-----------------------------------------------------------------------------------------------------
-----------------------------------------------------------------------------------------------------
P2.1.4.1 Phase A, Level 4, Piping Plan x x
-----------------------------------------------------------------------------------------------------
-----------------------------------------------------------------------------------------------------
P6.1 Details x x
-----------------------------------------------------------------------------------------------------
-----------------------------------------------------------------------------------------------------
3
EXHIBIT C-3 TO WORK LETTER
XXXXXX-XXXXXX ARCHITECTS
Document Log
Inhale, Xxxx. 0, Xxxxxxxx, Xx-0, 00000
Core Improvements
=============================================
Design Progress Plan
Development Print Check Bld set
SHT. NO. SHEET NAME (10-29-99) (12-7-99) (1-7-00) (2-28-00)
=====================================================================================================
ELECTRICAL
-----------------------------------------------------------------------------------------------------
E0.1 Legend, Titel 24 and Schedules x x
-----------------------------------------------------------------------------------------------------
E0.2 One Line Diagram x x
-----------------------------------------------------------------------------------------------------
-----------------------------------------------------------------------------------------------------
E2.1.1.1 Phase A, Level 1, Electrical Plan x x
-----------------------------------------------------------------------------------------------------
E2.1.2.1 Phase A, Level 2, Electrical Plan x x x
-----------------------------------------------------------------------------------------------------
E2.1.3.1 Phase A, Level 3, Electrical Plan x x x
-----------------------------------------------------------------------------------------------------
-----------------------------------------------------------------------------------------------------
E2.1.4.1 Phase A, Level 4, Electrical Plan x x x
-----------------------------------------------------------------------------------------------------
E2.1.4.4 Xxxxx X, Xxxxx 0, Xxxx X, Electrical Plan x x
-----------------------------------------------------------------------------------------------------
-----------------------------------------------------------------------------------------------------
E2.1.5.1 Phase A, Penthouse Level, Electrical Plan x x
-----------------------------------------------------------------------------------------------------
-----------------------------------------------------------------------------------------------------
E6.0 Panel Schedules x x
-----------------------------------------------------------------------------------------------------
-----------------------------------------------------------------------------------------------------
-----------------------------------------------------------------------------------------------------
-----------------------------------------------------------------------------------------------------
4
EXHIBIT C-3 TO WORK LETTER
XXXXXX-XXXXXX ARCHITECTS
Document Log
Inhale, Xxxx. 0, Xxxxxxxx, Xx-0, 00000
Core Improvements
=============================================
Design Progress Plan
Development Print Check Bld set
SHT. NO. SHEET NAME (10-29-99) (12-7-99) (1-7-00) (2-28-00)
=====================================================================================================
General Conditions -AIA 111, AIA A201 x
-----------------------------------------------------------------------------------------------------
-----------------------------------------------------------------------------------------------------
DIVISION 1 GENERAL REQUIREMENTS
-----------------------------------------------------------------------------------------------------
1010 Summary of the Work x
-----------------------------------------------------------------------------------------------------
1018 Owner Furnished Equipment x
-----------------------------------------------------------------------------------------------------
1020 Allowances x
-----------------------------------------------------------------------------------------------------
1030 Alternates x
-----------------------------------------------------------------------------------------------------
1045 Cutting and Patching x
-----------------------------------------------------------------------------------------------------
1049 Supporting from Building Structure x
-----------------------------------------------------------------------------------------------------
1300 Submittals x
-----------------------------------------------------------------------------------------------------
1400 Quality Control x
-----------------------------------------------------------------------------------------------------
1430 Mock-Ups x
-----------------------------------------------------------------------------------------------------
1500 Construction Facilities & Temporary
Controls
-----------------------------------------------------------------------------------------------------
1540 Site Security & Safety x
-----------------------------------------------------------------------------------------------------
1600 Materials & Equipment x
-----------------------------------------------------------------------------------------------------
1640 Hazardous Materials x
-----------------------------------------------------------------------------------------------------
1700 Contract Closeout x
-----------------------------------------------------------------------------------------------------
1900 Colors x
-----------------------------------------------------------------------------------------------------
-----------------------------------------------------------------------------------------------------
DIVISION 2 SITE WORK
-----------------------------------------------------------------------------------------------------
2070 Selective Demolition x
-----------------------------------------------------------------------------------------------------
2831 Chain Link Fence and Gate x
-----------------------------------------------------------------------------------------------------
-----------------------------------------------------------------------------------------------------
DIVISION 3 CONCRETE
-----------------------------------------------------------------------------------------------------
3320 Leveling Topping x
-----------------------------------------------------------------------------------------------------
-----------------------------------------------------------------------------------------------------
DIVISION 4 MASONRY
-----------------------------------------------------------------------------------------------------
-----------------------------------------------------------------------------------------------------
DIVISION 5 METALS
-----------------------------------------------------------------------------------------------------
5999 Miscellaneous Metals x
-----------------------------------------------------------------------------------------------------
-----------------------------------------------------------------------------------------------------
DIVISION 6 WOOD & PLASTICS
-----------------------------------------------------------------------------------------------------
6200 Finish Carpentry x
-----------------------------------------------------------------------------------------------------
6640 FRP Panels x
-----------------------------------------------------------------------------------------------------
-----------------------------------------------------------------------------------------------------
DIVISION 7 THERMAL & MOISTURE PROTECTION
-----------------------------------------------------------------------------------------------------
7200 Insulation x
-----------------------------------------------------------------------------------------------------
7510 Repairs to Existing Built-up x
Bituminous Roofing
-----------------------------------------------------------------------------------------------------
7600 Flashing & Sheet Metal x
-----------------------------------------------------------------------------------------------------
7840 Firesstoppping and Smokeseals x
-----------------------------------------------------------------------------------------------------
7920 Sealants & Caulking x
-----------------------------------------------------------------------------------------------------
-----------------------------------------------------------------------------------------------------
DIVISION 8 DOORS & WINDOWS
-----------------------------------------------------------------------------------------------------
8100 Hollow Metal Doors & Frames x
-----------------------------------------------------------------------------------------------------
8305 Access Doors x
-----------------------------------------------------------------------------------------------------
8710 Finish Hardware x
-----------------------------------------------------------------------------------------------------
8800 Glazing x
-----------------------------------------------------------------------------------------------------
-----------------------------------------------------------------------------------------------------
5
EXHIBIT C-3 TO WORK LETTER
XXXXXX-XXXXXX ARCHITECTS
Document Log
Inhale, Xxxx. 0, Xxxxxxxx, Xx-0, 00000
Core Improvements
=============================================
Design Progress Plan
Development Print Check Bld set
SHT. NO. SHEET NAME (10-29-99) (12-7-99) (1-7-00) (2-28-00)
=====================================================================================================
DIVISION 9 FINISHES
-----------------------------------------------------------------------------------------------------
9290 Drywall Systems X
-----------------------------------------------------------------------------------------------------
9500 Acoustical Treatment X
-----------------------------------------------------------------------------------------------------
9600 Stone Flooring X
-----------------------------------------------------------------------------------------------------
9650 Resilient Flooring X
-----------------------------------------------------------------------------------------------------
9680 Carpeting X
-----------------------------------------------------------------------------------------------------
9800 Special Coatings X
-----------------------------------------------------------------------------------------------------
9900 Painting X
-----------------------------------------------------------------------------------------------------
-----------------------------------------------------------------------------------------------------
DIVISION 10 SPECIALTIES
-----------------------------------------------------------------------------------------------------
10260 Corner Guards X
-----------------------------------------------------------------------------------------------------
10441 Accessibility and Safety Signage X
-----------------------------------------------------------------------------------------------------
10520 Fire Extinguisher Cabinets and X
Accessories
-----------------------------------------------------------------------------------------------------
10605 Mesh Partitions X
-----------------------------------------------------------------------------------------------------
-----------------------------------------------------------------------------------------------------
DIVISION 11 EQUIPMENT
-----------------------------------------------------------------------------------------------------
-----------------------------------------------------------------------------------------------------
DIVISION 12 FURNISHINGS
-----------------------------------------------------------------------------------------------------
12500 Window Treatment X
-----------------------------------------------------------------------------------------------------
-----------------------------------------------------------------------------------------------------
DIVISION 13 SPECIAL CONSTRUCTION
-----------------------------------------------------------------------------------------------------
-----------------------------------------------------------------------------------------------------
-----------------------------------------------------------------------------------------------------
DIVISION 14 CONVEYING SYSTEMS
-----------------------------------------------------------------------------------------------------
-----------------------------------------------------------------------------------------------------
DIVISION 15 MECHANICAL (Design by Xxxxxx)
-----------------------------------------------------------------------------------------------------
15400 Plumbing x
-----------------------------------------------------------------------------------------------------
-----------------------------------------------------------------------------------------------------
DIVISION 16 ELECTRICAL (Xxxxxxxxx & Light)
-----------------------------------------------------------------------------------------------------
16010 Electrical General Provisions X
-----------------------------------------------------------------------------------------------------
16050 Basic Materials and Methods X
-----------------------------------------------------------------------------------------------------
-----------------------------------------------------------------------------------------------------
6
SCHEDULE C-4 TO WORK LETTER
APPROVED CONTRACTORS
Xxxxxxx & Slette4n
South Bay Construction
DPR Construction, Inc.
XL Construction Corp.
Devcon Construction
Xxxxx Xxxxx Construction
Hathaway Xxxxxxxxx Construction
Dome Construction
San Xxxx Construction
Xxxxx Construction
Technical Builders
Mai Industries
XX Xxxx Co.
Swinerton
Webcor Builders
SCHEDULE C-5 TO WORK LETTER
APPROVED BUDGET FOR TENANT'S WORK (PHASE 1)
(ATTACHED)
EXHIBIT X-0
Xxxxx 0X Xxxxxx Improvement Budget
Design (soft costs) $299,665
Construction $4,463,904
Contingency $65,556
----------
TOTAL TI BUDGET $4,829,125
Phase 0 - 0xx Xxxxx 000 $ 125 $ 116,250
Xxxxx 0 - 0xx Xxxxx 37,703 $ 125 $ 4,712,875
38,633 $ 4,829,125
EXHIBIT D
ESTIMATED CONSTRUCTION SCHEDULE
Phase 1A Certificate of Substantial Completion by September 1, 2000
Phase 1B Certificate of Substantial Completion by September 1, 2000
Phase 2A Certificate of Substantial Completion by September 1, 2001
Phase 2B Assuming Tenant exercises its Phase 2B Expansion Option:
Certificate of Substantial Completion by September 1, 2001
EXHIBIT E
ACKNOWLEDGMENT OF RENT COMMENCEMENT DATE
This Acknowledgment is executed as of __________________________, by
____________________________, a _____________________ ("LANDLORD"), and
________________________________, a _____________________ ("TENANT"), pursuant
to Section 2.4 of the Build-to-Suit Lease dated between Landlord and Tenant (the
"LEASE") covering premises located at 000 Xxxxxxxxxx Xxxx, Xxx Xxxxxx, XX 00000
(the "PROPERTY").
Landlord and Tenant hereby acknowledge and agree as follows:
1. Xxx [Xxxxx 0X, Xxxxx 0X, Xxxxx 0X, Xxxxx 2B] Rent Commencement Date
under the Lease is ______________________.
2. The termination date under the Lease shall be ___________________,
subject to any applicable provisions of the Lease for extension or early
termination thereof.
EXECUTED as of the date first set forth above.
LANDLORD TENANT
INHALE 000 XXXXXXXXXX XXXX. L.P., INHALE THERAPEUTIC SYSTEMS INC.,
a California limited partnership a Delaware corporation
By: SciMed Prop III, a California By:
corporation, its General Partner --------------------------------
Name:
------------------------------
Title:
-----------------------------
By: By:
-------------------------------- --------------------------------
Name: Name:
------------------------------ ------------------------------
Title: Title:
----------------------------- -----------------------------
By:
--------------------------------
Name:
------------------------------
Title:
-----------------------------
TABLE OF CONTENTS
PAGE
1. PROPERTY.................................................................................................4
1.1 Lease of Premises..................................................................................4
(a) Buildings, Property, Improvements.............................................................4
(b) Use of Common Areas...........................................................................5
1.2 Phase 2B Expansion Option..........................................................................6
2. TERM.....................................................................................................7
2.1 Term...............................................................................................7
2.2 Early Possession...................................................................................7
2.3 Delay In Possession................................................................................7
2.4 Acknowledgement of Rent Commencement...............................................................7
2.5 Holding Over.......................................................................................7
2.6 Options To Extend Term.............................................................................8
3. RENTAL...................................................................................................8
3.1 Minimum Rental.....................................................................................8
(a) Commencement of Rental Obligations for Phase 1................................................8
(b) Commencement of Rental Obligations for Phases 2A and 2B.......................................8
(c) Rental Amounts for Xxxxx 0X, Xxxxx 0X, Xxxxx 2A, and Phase 2B: Annual Increases..............9
(d) Rental Amounts During First Extended Term.....................................................9
(e) Rental Amounts During Second Extended Term...................................................10
3.2 Late Charge.......................................................................................10
4. PARKING.................................................................................................11
5. CONSTRUCTION............................................................................................11
5.1 Construction of Improvements......................................................................11
(a) Base Building Work; Performance and Payment..................................................11
(b) Tenant's Work................................................................................11
(c) Compliance with Law..........................................................................11
6. TAXES...................................................................................................12
6.1 Personal Property................................................................................12
6.2 Real Property....................................................................................12
(a) Real Property Taxes..........................................................................12
(b) Protests.....................................................................................12
(c) Refunds......................................................................................13
(d) Other Taxes..................................................................................13
(e) Tax and Insurance Escrows....................................................................13
7. OPERATING EXPENSES......................................................................................13
7.1 Payment of Operating Expenses.....................................................................13
(a) Tenant's Operating Cost Share................................................................13
(b) Adjustment of Share Following Change Size of Premises........................................14
7.2 Definition Of Operating Expenses..................................................................14
(a) Inclusions...................................................................................14
(b) Exclusions...................................................................................15
7.3 Determination Of Operating Expenses...............................................................16
7.4 Final Accounting For Lease Year...................................................................17
(a) Annual Statement.............................................................................17
(b) Audit Rights.................................................................................17
7.5 Proration.........................................................................................17
7.6 Reserve Account...................................................................................18
7.7 Property Management Fee...........................................................................18
8. UTILITIES...............................................................................................18
8.1 Payment...........................................................................................18
8.2 Interruption......................................................................................19
9. ALTERATIONS; SIGNS......................................................................................19
9.1 Right To Make Alterations..........................................................................19
9.2 Title To Alterations...............................................................................20
9.3 Tenant Fixtures and Personal Property..............................................................20
9.4 No Liens...........................................................................................20
9.5 Signs..............................................................................................20
10. MAINTENANCE AND REPAIRS.................................................................................20
10.1 Tenant's Obligation For Maintenance................................................................20
ii.
(a) Good Order, Condition And Repair................................................................21
(b) Tenant's Option to Require Landlord to Maintain and Repair Both Buildings and Common Areas......21
(c) Landlord's Remedy...............................................................................22
(d) Condition Upon Surrender........................................................................22
10.2 Landlord's Obligation For Maintenance...........................................................22
(a) Good Order, Condition And Repair................................................................22
(b) No Abatement....................................................................................23
(c) Landlords' Right of Entry for Repairs...........................................................23
11. USE OF PROPERTY......................................................................................23
11.1 Permitted Use..................................................................................23
11.2 No Nuisance....................................................................................23
11.3 Compliance With Laws...........................................................................23
11.4 Environmental Matters..........................................................................24
(a) Definition of Hazardous Materials.........................................................24
(b) Tenant's Obligations Re: Hazardous Substances.............................................24
(c) Tenant's Indemnity........................................................................26
(d) Survival..................................................................................26
12. INSURANCE AND INDEMNITY..............................................................................26
12.1 Landlord's Insurance...........................................................................26
12.2 Tenant's Insurance.............................................................................27
12.3 Insurers; Primary Insurance....................................................................28
12.4 Blanket Policy.................................................................................28
12.5 Deductibles....................................................................................28
12.6 Certificates...................................................................................28
12.7 Adjustment in the Event of Loss................................................................29
12.8 Proration Upon Termination.....................................................................29
12.9 Waiver Of Subrogation..........................................................................29
12.10 Indemnification................................................................................29
(a) Tenant's Indemnification Obligations......................................................29
iii.
(b) Landlord's Indemnification Obligations....................................................30
12.11 Limitation on Landlord Liability...............................................................30
13. SUBLEASE AND ASSIGNMENT..............................................................................31
13.1 Assignment And Sublease Of Building............................................................31
(a) Consent Required..........................................................................31
(b) Permitted Transfers.......................................................................32
(c) Consent Required..........................................................................32
(d) Procedure to Obtain Consent...............................................................32
13.2 Rights Of Landlord: Effect of Landlord's Consent..............................................33
13.3 Advertising....................................................................................33
13.4 Writing Required...............................................................................33
13.5 Transfer Premiums..............................................................................33
14. RIGHT OF ENTRY AND QUIET ENJOYMENT...................................................................34
14.1 Right Of Entry.................................................................................34
14.2 Quiet Enjoyment................................................................................34
15. CASUALTY AND TAKING..................................................................................34
15.1 Damage or Destruction..........................................................................34
(a) Termination Rights....................................................................34
(b) Limitations on Parties' Obligations...................................................35
(c) Entitlement to Insurance Proceeds.....................................................35
(d) Abatement of Rent.....................................................................36
15.2 Condemnation...................................................................................36
(a) Termination Rights....................................................................36
(b) Limitations on Parties' Obligations...................................................36
15.3 Reservation Of Compensation....................................................................37
15.4 Restoration Of Improvements....................................................................37
16. DEFAULT..............................................................................................38
16.1 Events Of Default..............................................................................38
(a) Nonpayment............................................................................38
(b) Other Obligations.....................................................................38
iv.
(c) General Assignment....................................................................38
(d) Bankruptcy............................................................................38
(e) Receivership..........................................................................38
(f) Attachment............................................................................39
(g) Insolvency............................................................................39
16.2 Remedies Upon Tenant's Default.................................................................39
(a) Re-entry; Termination.................................................................39
(b) Continuation of Lease.................................................................39
(c) Remedies..............................................................................39
16.3 Remedies Cumulative............................................................................40
17. SUBORDINATION, ATTORNMENT AND SALE...................................................................40
17.1 Subordination To Mortgage......................................................................40
17.2 Sale of Landlord's Interest....................................................................41
17.3 Estoppel Certificates..........................................................................41
18. SECURITY.............................................................................................42
18.1 Deposit........................................................................................42
18.2 Pledge of Security Deposit.....................................................................43
19. MISCELLANEOUS........................................................................................43
19.1 Notices........................................................................................43
19.2 Successors And Assigns.........................................................................44
19.3 No Waiver......................................................................................44
19.4 Severability...................................................................................44
19.5 Litigation Between Parties.....................................................................44
19.6 Surrender......................................................................................45
19.7 Interpretation.................................................................................45
19.8 Entire Agreement...............................................................................45
19.9 Governing Law..................................................................................45
19.10 No Partnership.................................................................................45
19.11 Financial Information..........................................................................45
19.12 Costs..........................................................................................46
v.
19.13 Time...........................................................................................46
19.14 Brokers........................................................................................46
19.15 Memorandum of Lease............................................................................46
19.16 Corporate Authority............................................................................46
19.17 Execution and Delivery.........................................................................47
19.18 Survival.......................................................................................47
19.19 Waiver of Jury Trial...........................................................................47
vi.
EXHIBITS
Exhibit A Real Property Description
Exhibit B Site Plan
Exhibit C Work Letter
Exhibit D Estimated Construction Schedule
Exhibit E Acknowledgment of Rent Commencement Date
