Exhibit 10.3
AMERICAN INDUSTRIAL REAL ESTATE ASSOCIATION
STANDARD INDUSTRIAL/COMMERCIAL SINGLE-TENANT LEASE-NET
(DO NOT USE THIS FORM FOR MULTI-TENANT BUILDINGS)
1. Basic Provisions ("Basic Provisions").
1.1 Parties: This lease ("Lease"), dated for reference purposes only,
March 1, 2000, is made by and between LNR Santa Xxxxx I, LLC, a Delaware limited
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liability company, ("Lessor") and United Defense L.P., a Delaware limited
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partnership, ("Lessor"), (collectively the "Parties," or individually a
"Party").
1.2 Premises: That certain real property, including all improvements
therein are to be provided by Lessor under the terms of its Lease, and commonly
know as N/A located in the County of Santa Xxxxx, State of California, and
generally described as (describe briefly the nature of the property and, if
applicable, the "Project", if the property is located within a Project.) See
Paragraph 50 of the Addendum attached hereto. ("Premises"). (See also Paragraph
2)
1.3 Terms: See Addendum, Paragraph 51 years and N/A months ("Original
Term") commencing N/A ("Commencement Date") and ending N/A. ("Expiration Date").
(See also Paragraph 3) See Addendum, Paragraph 51.
1.4 Early Possession: N/A ("Early Possession Date"). (See also
Paragraph 3.2 and 3.3)
1.5 Base Rent: See Addendum, paragraph 52 per month ("Base Rent"),
payable on the N/A day of each month commencing N/A.
1.6 Base Rent Paid Upon Execution: See Addendum, Paragraph 52 as Base
Rent for the period N/A.
1.7 Security Deposit: None ("Security Deposit"). (See also Paragraph
5).
1.8 Agreed Use: See Addendum, Paragraph 53. (See also Paragraph 6).
1.9 Insuring Party: Lessee is the "Insuring Party" unless otherwise
stated herein. (See also Paragraph 8).
1.10 Real Estate Brokers: (See also Paragraph 15)
(a) Representation: The following real estate brokers (collectively,
the "Brokers") and brokerage relationships exist in this transaction (check
applicable boxes):
[_] Xxxxxxx X. Xxxxxx and Xxxxx Kuttle of CB Xxxxxxx Xxxxx represents
Lessor exclusively ("Lessor's Broker");
[_] Xxxxxxx Xxxxxxx of Colliers International and Xxx Xxxxx of CB
Xxxxxxx Xxxxx represents Lessee exclusively ("Lessee's Broker"); or
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[_] N/A represents Lessor and Lessee ("Dual Agency").
(b) Payment to Brokers: Upon execution and delivery of this Lease by
both Parties, Lessor shall pay to the Broker the fee agreed to in their separate
written agreement (or if there is no such agreement, the sum of N/A % of the
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total Base Rent for the brokerage service rendered by said Broker).
1.11 Guarantor: The obligations of the Lessee under this Lease are to
be guaranteed by N/A ("Guarantor"). (See also Paragraph 37).
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1.12 Addenda and Exhibits: Attached hereto is an Addendum or Addenda
consisting of Paragraphs 50 through 67 and Exhibits all of which constitute a
part of this Lease.
2. Premises
2.1 Letting: Lessor hereby leases to Lessee, and Lessee hereby leases
from Lessor, the Premises, for the term, at the rental, and upon all of the
terms, covenants and conditions set forth in this Lease. Unless otherwise
provided herein, any statement of size set forth in this Lease, or that may have
been used in calculating rental, is an approximation which the Parties agree is
reasonable and the rental based thereon is not subject to revision whether or
not the actual size is more or less.
See Addendum, Paragraph 54.
2.2 Compliance: All applicable laws, covenants or restrictions of
record, building codes, regulations and ordinances are described herein as
("Applicable Requirements.").
3. Term.
3.1 Term: The Commencement Date, Expiration Date and Original Term of
this Lease are as specified in the Addendum Paragraph 51.
4. Rent.
4.1 Rent Defined: All monetary obligations of Lessee to Lessor under
the terms of this Lease (except for the Security Deposit) are deemed to be rent
("Rent").
4.2 Payment: Lessee shall cause payment of Rent to be received by
Lessor in lawful money of the United States, without demand, offset or deduction
(except as specifically permitted in this Lease), on or before the day on which
it is due. Rent for any period during the term hereof which is for less than one
(1) full calendar month shall be prorated based upon the actual number of days
of said month. Payment of Rent shall be made to Lessor at its address stated
herein or to such other persons or place as Lessor may from time to time
designate in writing. Acceptance of a payment which is less than the amount then
due shall not be a waiver of Lessor's rights to the balance of such Rent,
regardless of Lessor's endorsement of any check so stating.
5. Security Deposit.
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6. Use.
6.1 Use: Lessee shall use and occupy the Premises only for the Agreed
Use, and for no other purpose. Lessee shall not use or permit the use of the
Premises in a manner that is unlawful, creates damage, waste or a nuisance, or
that disturbs owners and/or occupants of, or causes damages to neighboring
properties.
6.2 Hazardous Substances.
(a) Reportable Uses Require Consent. The term "Hazardous Substance"
as used in this Lease shall mean any product, substance, or waste whose
presence, use, manufacture, disposal, transportation, or release, either by
itself or in combination with other materials expected to be on the Premises, is
either: (i) potentially injurious to the public health, safety or welfare, the
environment or the Premises, (ii) regulated or monitored by any governmental
authority, or (iii) a basis for potential liability of Lessor to any
governmental agency or third party under any applicable statute or common law
theory. Hazardous Substances shall include, but not be limited to, hydrocarbons,
petroleum, gasoline, and/or crude oil or any products, by-products or fractions
thereof. Lessee shall not engage in any activity in or on the Premises which
constitutes a Reportable Use of Hazardous Substances without the express prior
written consent of Lessor and timely compliance (at Lessee's expense) with all
Applicable Requirements. "Reportable Use" shall mean (i) the installation or use
of any above or below ground storage tank, (ii) the generation, possession,
storage, use, transportation, or disposal of a Hazardous Substance that requires
a permit from, or with respect to which a report, notice, registration or
business plan is required to be filed with, any governmental authority, and/or
(iii) the presence at the Premises of a Hazardous Substance with respect to
which any Applicable Requirements requires that a notice be given to persons
entering or occupying the Premises or neighboring properties. Notwithstanding
the foregoing, Lessee may use any ordinary and customary materials reasonably
required to be used in the normal course of the Agreed Use, so long as such use
is in compliance with all Applicable Requirements, is not a Reportable Use, and
does not expose the Premises or neighboring property to any meaningful risk of
contamination or damage or expose Lessor to any liability therefore. In
addition, Lessor may condition its consent to any Reportable use upon receiving
such additional assurances as Lessor reasonably deems necessary to protect
itself, the public, the Premises, and/or the environment against damage,
contamination, injury and/or liability, including, but not limited to, the
installation, (and removal on or before Lease expiration or termination) of
protective modifications (such as concrete encasements) and/or increasing the
Security Deposit.
(b) Duty to inform Lessor. If Lessee knows, or has reasonable cause
to believe, that a Hazardous Substance has come to be located in, on, under or
about the Premise, other than as previously consented to by Lessor, Lessee shall
immediately give written notice of such fact to Lessor, and provide Lessor with
a copy of any report, notice, claim or other documentation which it has
concerning the presence of such Hazardous Substance.
(c) Lessee Remediation. Lessee shall not cause or permit any
Hazardous Substance to be spilled or released in, on, under, or about the
Premises (including through the plumbing or sanitary sewer system) and shall
promptly, at Lessee's expense, take all investigatory and/or remedial action
reasonably recommended by any governmental body with
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jurisdiction thereof, whether or not formally ordered or required, for the clean
up of any contamination of, and for the maintenance, security and/or monitoring
of the Premises or neighboring properties, that was caused or materially
contributed to by Lessee, or pertaining to or involving any Hazardous Substance
brought onto the Premises during the term of this Lease, by or for Lessee, or
any third party.
6.3 Lessee's Compliance with Applicable Requirements. Except as
otherwise provided in this Lease, Lessee shall, at Lessee's sole expense, fully,
diligently and in a timely manner, materially comply with all Applicable
Requirements, the requirements of any applicable fire insurance underwriter or
rating bureau, and the recommendations of Lessor's engineers and/or consultants
which relate in any manner to the Premises, without regard to whether said
requirements are now in effect or become effective after the Start Date. Lessee
shall, within ten (10) days after receipt of Lessor's written request, provide
Lessor with copies of all permits and other documents which are in Lessee's
possession or control, and other information evidencing Lessee's compliance with
any Applicable Requirements reasonably specified by Lessor, and shall
immediately upon receipt, notify Lessor in writing (with copies of any documents
involved) of any threatened or actual claim, notice, citation, warning,
complaint or report pertaining to or involving the failure of Lessee or the
Premises to comply with any Applicable Requirements.
6.4 Inspection; Compliance. Lessor and Lessor's "Lender" (as defined
in Paragraph 30 below) and consultants shall have the right to enter into
Premises at any time, in the case of an emergency (provided, that Lessor shall
use commercially reasonable efforts to give whatever notice is practical in the
circumstances), and otherwise on 48 hours notice for the purpose of inspecting
the condition of the Premises and for verifying compliance by Lessee with this
Lease. The cost of any such inspections shall be paid by Lessor unless a
violation of Applicable Requirements, or a contamination is found to exist or
the inspection is requested or ordered by a governmental authority. In such
case, Lessee shall upon request reimburse Lessor for the cost of such
inspections, so long as such inspection is reasonably related to the violation
or contamination. See Addendum, Paragraph 55.
7. Maintenance; Repairs, Utility Installations; Trade Fixtures and
Alterations.
7.1 Lessee's Obligations.
(a) In General. Subject to the provisions of Paragraph 6.3 (Lessee's
Compliance with Applicable Requirements), 7.2 (Lessor's Obligations), 9 (Damage
or Destruction), and 14 (Condemnation), Lessee shall, at Lessee's sole expense,
keep the Premises, Utility Installations, and Alterations in good order,
condition and repair (whether or not the portion of the Premises requiring
repairs, or the means of repairing the same, are reasonably or readily
accessible to Lessee, and whether or not the need for such repairs occurs as a
result of Lessee's use, any prior use, the elements or the age of such portion
of the Premises), including, but not limited to, all equipment or facilities,
such as plumbing, heating, ventilating, air-conditioning, electrical, lighting
facilities, boilers, pressure vessels, fire protection system, fixtures, walls
(interior and exterior), foundations, ceilings, roofs, floors, windows, doors,
plate glass, skylights, landscaping, driveways, parking lots, fences, retaining
walls, signs, sidewalks
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and parkways located in, on, or adjacent to the Premises. Lessee, in keeping the
Premises in good order, condition and repair, shall exercise and perform good
maintenance practices, specifically including the procurement and maintenance of
the service contracts required by Paragraph 7.1(b) below. Lessee's obligations
shall include restorations, replacements or renewals when necessary to keep the
Premises and all improvements thereon or a part thereof in good order, condition
and state of repair. Lessee shall, during the term of this Lease, keep the
exterior appearance of the Building in a first-class condition consistent with
the exterior appearance of other similar facilities of comparable usage and size
in the vicinity, including, when necessary the exterior repainting of the
Building.
(b) Service Contracts. Lessee shall, at Lessee's sole expense,
procure and maintain contracts, with copies to Lessor, in customary form and
substance for, and with contractors specializing and experienced in the
maintenance of the following equipment and improvements, if any, if and when
installed on the Premises: (1) HVAC equipment, (ii) boiler, and pressure
vessels, (iii) fire extinguishing systems, including fire alarm and/or smoke
detection, (iv) landscaping and irrigation systems, (v) roof covering and
drains, (vi) driveways and parking lots, (vii) clarifiers (viii) basic utility
feed to the perimeter of the Building, and (ix) any other equipment, if
reasonably required by Lessor. Notwithstanding the foregoing, Lessee shall have
the right to perform the maintenance required hereunder with its own personnel
so long as the maintenance standards required hereunder are observed. In any
event, Lessee shall furnish Lessor, no less frequently than quarterly,
reasonable evidence that the required maintenance is taking place.
7.2 Lessor's Obligations. Subject to the provisions of Paragraph 9
(Damage or Destruction) and 14 (Condemnation), it is intended by the Parties
hereto that Lessor have no obligation, of in any manner whatsoever, to repair
and maintain the Premises, or the equipment therein, all which obligations are
intended to be that of the Lessee. It is the intention of the Parties that the
terms of this Lease govern the respective obligations of the Parties as to
maintenance and repair of the Premises, and they expressly waive the benefit of
any statute now or hereafter in effect to the extent it is inconsistent with the
terms of the Lease.
7.3 Utility Installations; Trade Fixtures; Alterations.
(a) Definitions; Consent Required. The term "Utility Installations"
refers to all floor and window coverings, air lines, power panels, electrical
distribution, security and fire protection systems, communication systems,
lighting fixtures, HVAC equipment, plumbing, and fending in or on the Premises.
The term "Trade Fixtures" shall mean Lessee's machinery and equipment that can
be removed without doing material damage to the Premises. The term "Alterations"
shall mean any modification of the Improvements, other than Utility
Installations or Trade Fixtures, whether by addition or deletion. "Lessee Owned
Alterations and/or Utility Installations" are defined as Alterations and/or
Utility Installations made by Lessee that are not yet owned by Lessor pursuant
to Paragraph 7.4(a). Lessee shall not make any Alterations or Utility
Installations to the Premises without Lessor's prior written consent. However,
Lessee may make Alterations and Utility Installations to the Premises, without
Lessor's prior consent, so long as no one of such Alterations or Utility
Installations exceeds $500,000 in cost. Lessee shall, however, keep Lessor
reasonably informed of the improvements it is making to the Premises, so
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that Lessor may file notices of nonresponsibility in a timely manner. Lessee may
not make any Alterations which reduce the square footage of the improvements on
the Premises.
(b) Consent. Any Alterations or Utility Installations that Lessee
shall desire to make and which require the consent of the Lessor shall be
presented to Lessor in written form with detailed plans. Consent shall be deemed
conditioned upon Lessee's: (i) acquiring all applicable governmental permits,
(ii) furnishing Lessor with copies of both the permits and the plans and
specifications prior to commencement of the work, and (iii) compliance with all
conditions of said permits and other Applicable Requirements in a prompt and
expeditious manner. Any Alterations or Utility Installations shall be performed
in a workmanlike manner with good and sufficient materials. Lessee shall
promptly upon completion furnish Lessor with as-built plan and specifications.
For work which requires Lessor's consent, Lessor may condition its consent upon
Lessee providing a lien and completion bond in an amount equal to one and
one-half times the estimated cost of such Alteration or Utility Installation
and/or upon Lessee's posting an additional Security Deposit with Lessor.
(c) Indemnification. Lessee shall pay, when due, all claims for labor
or materials furnished or alleged to have been furnished to or for Lessee at or
for use on the Premises, which claims are or may be secured by any mechanic's or
materialmen's lien against the Premises, and Lessor shall have the right to post
notices of non-responsibility. If Lessee shall contest the validity of any such
lien, claim or demand, then Lessee shall, at its sole expense defend and protect
itself, Lessor and the Premises against the same and shall pay and satisfy any
such adverse judgment that may be rendered thereon before the enforcement
thereof. If Lessor shall require, Lessee shall furnish a surety bond in an
amount equal to one and one-half times the amount of such contested lien, claim
or demand, indemnifying Lessor against liability for the same. If Lessor elects
to participate in any such action, Lessee shall pay Lessor's attorneys' fees and
costs.
7.4 Ownership; Removal; Surrender; and Restoration.
(a) Ownership. Subject to Lessor's right to require removal or elect
ownership as hereinafter provided, all Alterations and Utility Installations
made by Lessee shall be the property of Lessee, but considered a part of the
Premises. Lessor may, at any time, elect in writing to be the owner of all or
any specified part of the Lessee Owned Alterations and Utility Installations.
Unless otherwise instructed per Paragraph 7.4(b) hereof, all Lessee Owned
Alterations and Utility Installations shall, at the expiration or termination of
the Lease, become the property of Lessor and be surrendered by Lessee with the
Premises.
(b) Removal. By delivery to Lessee of written notice from Lessor not
earlier than ninety (90) and not later than thirty (30) days prior to the end of
the term of this Lease, Lessor may require any or all Lessee Owned Alterations
or Utility Instructions which are constructed after the Commencement Date be
removed by the expiration or termination of this Lease. Lessor may require the
removal at any time of all or any part of any Lessee Owned Alterations or
Utility Installations made without the required consent, which are constructed
after the Commencement Date (or if this Lease is terminated before the end of
such term, then at any time within thirty (30) days after the end of such term).
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(c) Surrender/Restoration. Lessee shall surrender the Premises by the
Expiration Date or any earlier termination date, with all of the improvements,
parts and surfaces thereof broom clean and free of debris, and in good operating
order, condition and state of repair, ordinary wear and tear excepted. "Ordinary
wear and tear" shall not include any damage or deterioration that would have
been prevented by good maintenance practice. Lessee shall repair any damage
occasioned by the installation, maintenance or removal of Trade Fixtures, Lessee
Owned alterations and/or Utility installations, furnishing, and equipment as
well as the removal of any storage tank installed by or for Lessee, and the
removal, replacement, or remediation of any soil, material or groundwater
contaminated by Lessee. Trade Fixtures shall remain the property of Lessee and
shall be removed by Lessee. The failure by Lessee to timely vacate the Premises
pursuant to this Paragraph 7.4(c) without the express written consent of Lessor
shall constitute a holdover under the provisions of Paragraph 26 below.
8. Insurance; Indemnity.
8.1 Payment For Insurance. Lessee shall pay for all Insurance
required under Paragraph 8 except to the extent of the cost attributable to
liability insurance carried by Lessor under Paragraph 8.2(b) in excess of
$2,000,000 per occurrence. Premiums for policy periods commencing prior to or
extending beyond the Lease term shall be prorated to correspond to the Lease
term. Payment shall be made by Lessee to Lessor within ten (10) days following
receipt of an invoice.
8.2 Liability Insurance.
(a) Carried by Lessee. Lessee shall obtain and keep in force a
Commercial General Liability Policy of insurance protecting Lessee and Lessor
against claims for bodily injury, personal injury and property damage based upon
or arising out of the ownership, use, occupancy or maintenance of the Premises
and all areas appurtenant thereto. Such insurance shall be on an occurrence
basis providing single limit coverage in an amount not less than $2,000,000 per
occurrence with an "Additional Insured-Managers or Lessors of Premises
Endorsement" and contain the "Amendment of the Pollution Exclusion Endorsement"
for damage caused by heat, smoke or fumes from a hostile fire. The Policy shall
not contain any intra-insured exclusions as between insured persons or
organizations, but shall include coverage for liability assumed under this Lease
as an "insured contract" for the performances of Lessee's indemnity obligations
under this Lease. The limits of said insurance shall not, however, limit the
liability of Lessee nor relieve Lessee of any obligation hereunder. All
insurance carried by Lessee shall be primary to and not contributory with any
similar insurance carried by Lessor, whose insurance shall be considered excess
insurance only.
(b) Carried by Lessor. Lessor may maintain liability insurance as
described in Paragraph 8.2(a), in addition to, and not in lieu of, the insurance
required to be maintained by Lessee. Lessee shall not be named as an additional
insured therein.
8.3 Property Insurance - Building, Improvements and Rental Value.
(a) Building and Improvements. The Insuring Party shall obtain and
keep in force a policy or policies in the name of Lessor, with loss payable to
Lessor, any groundlessor,
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and to any Lender(s) insuring loss or damage to the Premises. The amount of such
insurance shall be equal to the full replacement cost of the Premises, as the
same shall exist from time to time, but in no event more than the commercially
reasonable and available insurable value thereof. If the coverage is available
and commercially appropriate, such policy or policies shall insure against all
risks of direct physical loss or damage (except the perils of earthquake,
including coverage for debris removal and the enforcement of any Applicable
Requirements requiring the upgrading, demolition, reconstruction or replacement
of any portion of the Premises as the result of a covered loss. Said policy or
policies shall also contain an agreed valuation provision in lieu of any
coinsurance clause, waiver of subrogation, and inflation guard protection
causing an increase in the annual property insurance coverage amount by a factor
of not less than the adjusted U.S. Department of Labor Consumer Price Index for
All Urban Consumers for the city nearest to where the Premises are located. If
such insurance coverage has a deductible clause, the deductible amount shall not
exceed ($50,000) per occurrence, and Lessee shall be liable for such deductible
amount in the event of an insured Loss.
(b) (Rental Value.)
8.4 Lessee's Property/Business Interruption Insurance.
(a) Property Damage. Lessee shall obtain and maintain insurance
coverage on all of Lessee's personal property, Trade Fixtures, and Lessee Owned
Alterations and Utility Installations. Such insurance shall be full replacement
cost coverage with a deductible of not to exceed $50,000 per occurrence. The
proceeds from any such insurance shall be used by Lessee for the replacement of
personal property, Trade Fixtures and Lessee Owned Alterations and Utility
installations. Lessee shall provide Lessor with written evidence that such
insurance is in force.
(b) Business Interruption. Lessee shall obtain and maintain loss of
income and extra expense insurance in amounts as will reimburse Lessee for
direct or indirect loss of earnings attributable to all perils commonly insured
against by prudent lessees in the business of Lessee or attributable to
prevention of access to the Premises as a result of such perils.
(c) No Representation of Adequate Coverage. Lessor makes no
representation that limits or forms of coverage of insurance specified herein
are adequate to cover Lessee's property, business operations or obligations
under this Lease.
8.5 Insurance Policies. Insurance required herein shall be by
companies duly licensed or admitted to transact business in the state where the
Premises are located, and maintaining during the policy term a "General
Policyholders Rating" of at least B+, V, as set forth in the most current issue
of "Best's Insurance Guide." Lessee shall not do or permit to be done anything
which invalidates the required insurance policies. Lessee shall, prior to the
Start Date, deliver to Lessor certified copies of policies of such insurance or
certificates evidencing the existence and amounts of the required insurance. No
such policy shall be cancelable or subject to modification except after thirty
(30) days prior written notice to Lessor. Lessee shall, at least thirty (30)
days prior to the expiration of such policies, furnish Lessor with evidence of
renewals or "insurance binders" evidencing renewal thereof. If Lessor does not
receive such evidence in a timely fashion after five business days notice given
to the Lessee of the need for
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such insurance, then Lessor may order such insurance and change the cost thereof
to Lessee, which amount shall be payable by Lessee to Lessor upon demand. Such
policies shall be for a term of at least one year, or the length of the
remaining term of this Lease, whichever is less. If either Party shall fall to
procure and maintain the insurance required to be carried by it, the other Party
may, but shall not be required to procure and maintain the same.
8.6 Waiver of Subrogation. Without affecting any other rights or
remedies, Lessee and Lessor each hereby release and relieve the other, and waive
their entire right to recover damages against the other, for loss of or damage
to its property arising out of or incident to the perils required to be insured
against herein. The effect of such releases and waivers is not limited by the
amount of insurance carried or required, or by any deductibles applicable
hereto. The Parties agree to have their respective property damage insurance
carriers waive any right to subrogation that such companies may have against
Lessor or Lessee, as the case may be, so long as the insurance is not
invalidated thereby.
8.7 Indemnity. Except for the gross negligence or willful misconduct
of Lessor, its agents, master or ground lessors, partners, and lenders, Lessee
shall indemnify, protect, defend and hold harmless the Premises, Lessor and its
agents, Lessor's master or ground lessor, partners and Lenders, from and against
any and all claims, loss of rents and/or damages, liens, judgments, penalties,
attorneys' and consultants' fees, expenses and/or liabilities arising out of,
involving, or in connection with, the use and/or occupancy of the Premises by
Lessee. If any action or proceeding is brought against Lessor by reason of any
of the foregoing matters, Lessee shall upon notice defend the same at Lessee's
expense by counsel reasonably satisfactory to Lessor and Lessor shall cooperate
with Lessee in such defense. Lessor need not have first paid any such claim in
order to be defended or indemnified.
8.8 Exemption of Lessor from Liability. Lessor shall not be liable
for injury or damage to the person or goods, wares, merchandise or other
property of Lessee's employees, contractors, invitees, customers, or any other
person in or about the Premises, whether such damage or injury is caused by or
results from fire, steam, electricity, gas, water or rain, or from the breakage,
leakage, obstruction or other defects of pipes, fire sprinklers, wires,
appliances, plumbing, HVAC or lighting fixtures, or from any other cause,
whether the said injury or damage results from conditions existing on or arising
upon the Premises or upon other portions of the Building of which the Premises
are a part, or from other sources or places. Lessor shall not be liable for any
damages arising from any act or neglect of any other tenant of Lessor.
Notwithstanding Lessor's negligence or breach of this Lease, Lessor shall under
no circumstances be liable for injury to Lessee's business or for any loss of
income or profit therefrom.
8.9 Earthquake and Flood Insurance. Lessee shall not be required to
obtain earthquake or flood insurance, and Lessor shall not be entitled to pass
through to Lessee the cost of any earthquake or flood insurance which Lessor
obtains.
9. Damage or Destruction.
9.1 Definitions.
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(a) "Premises Partial Damage" shall mean damage or destruction to the
improvements on the Premises, other than Lessee Owned Alterations and Utility
Installations, which can reasonably be repaired in twelve (12) months or less
from the date of the damage or destruction. Lessor shall notify Lessee in
writing within thirty (30) days from the date of the damage or destruction as to
whether or not the damage is Partial or Total.
(b) "Premises Total Destruction" shall mean damage or destruction to
the Premises, other than Lessee Owned Alterations and Utility Installations and
Trade Fixtures, which cannot reasonably be repaired in twelve (12) months or
less from the date of the damage or destruction. Lessor shall notify Lessee in
writing within thirty (30) days from the date of the damage or destruction as to
whether or not the damage is Partial or Total.
(c) "Insured Loss" shall mean the cost to repair or rebuild the
improvements on the Premises, other than Lessee Owned Alterations and Utility
Installations and Trade Fixtures, which was caused by an event required to be
covered by the insurance described in Paragraph 8.3(a), irrespective of any
deductible amounts or coverage limits involved or which Lessor reasonably
determines will not cost in excess of $3,000,000 to repair.
(d) "Replacement Cost" shall mean the cost to repair or rebuild the
improvements owned by Lessor at the time of the occurrence to their condition
existing immediately prior thereto, including demolition, debris removal and
upgrading required by the operation of Applicable Requirements, and without
deduction for depreciation.
(e) "Hazardous Substance Condition" shall mean the occurrence or
discovery of a condition involving the presence of, or a contamination by a
Hazardous Substance as defined in Paragraph 6.2(a), in, on, or under the
Premises.
9.2 Partial Damage - Insured Loss. If a Premises Partial Damage that
is an Insured Loss occurs, then Lessee shall, at Lessee's expense, repair such
damage (including Lessee's Trade Fixtures and Lessee Owned Alterations and
Utility Installations) as soon as reasonably possible and this Lease shall
continue in full force and effect; and Lessor shall make any applicable
insurance proceeds available to Lessee on a reasonable basis for that purpose
subject to customary controls typical in construction lending, including
requirement that the job funds be kept in balance. Notwithstanding the
foregoing, if the required insurance was not in force or the insurance proceeds
are not sufficient to effect such repair, the insuring Party shall promptly
contribute _____ _______ in proceeds (including the deductible which is Lessee's
responsibility) as and when required to complete said repairs.
9.3 Partial Damage - Uninsured Loss. If a Premises Partial Damage
that is not an Insured Loss occurs, unless caused by a negligent or willful act
of Lessee (in which event Lessee shall make the repairs at Lessee's expense),
Lessor may either: (i) repair such damage as soon as reasonably possible at
Lessor's expense, in which event this Lease shall continue in full force and
effect, or (ii) terminate this Lease by giving written notice to Lessee within
sixty (60) days after receipt by Lessor of knowledge of the occurrence of such
damage. Such termination shall be effective sixty (60) days following the date
of such notice. In the event Lessor elects to terminate this Lease, Lessee shall
have the right within ten (10) days after receipt of the termination notice to
give written notice to Lessor or Lessee's commitment to pay for the repair
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of such damage without termination notice to give written notice to Lessor of
Lessee's commitment to pay for the repair of such damage without reimbursement
from Lessor. Lessee shall provide Lessor with said funds or satisfactory
assurance thereof within thirty (30) days after making such commitment. If
Lessee gives such notice, this Lease shall continue in full force and effect,
and Lessor shall proceed to make such repairs as soon as reasonably possible
after the required funds are available and shall be entitled to a reasonable fee
for its efforts. If Lessee does not make the required commitment, this Lease
shall terminate as of the date specified in the termination notice.
9.4 Total Destruction. If a Premises Total Destruction occurs, this
Lease shall terminate sixty (60) days following such Destruction, Lessor shall
be entitled to obtain and retain all insurance proceeds payable on account of
such total destruction; provided, that so long as the amount which Lessor is
able to recover from the insurance carriers is not thereby reduced. Lessee shall
have the right to obtain and retain insurance proceeds payable on account of
damage to its Trade Fixtures and personal property. If the damage or destruction
was caused by the gross negligence or willful misconduct of Lessee, Lessor shall
have the right to recover Lessor's damages from Lessee, except as provided in
Paragraph 8.6. Notwithstanding the foregoing, if Lessee so notifies Lessor
within thirty (30) days after a Premises Total Destruction occurs, Lessee shall
have the right to repair and restore all damage without reimbursement from
Lessor. In such case, Lessee shall provide Lessor with the necessary funds or
satisfactory assurances thereof within thirty (30) days after making such
commitment. If Lessee gives such notice, this Lease shall continue in full force
and effect and Lessee shall proceed to make such repairs as soon as reasonably
possible after the required funds are available. If Lessee does not make the
required commitment, this Lease shall terminate as of the date of Premises Total
Destruction.
9.5 Damage Near End of Term. If at any time during the last six (6)
months of this Lease there is damage for which the cost to repair exceeds one
(1) month's Base Rent, whether or not an insured Loss, Lessor may terminate this
Lease effective sixty (60) days following the date of occurrence of such damage
by giving a written termination notice to Lessee within thirty (30) days after
the date of occurrence of such damage. Notwithstanding the foregoing, if Lessee
at the time has an exercisable option to extend the Lease or to purchase the
Premises, then Lessee may preserve this Lease by, (a) exercising such option and
(b) providing Lessor with any shortage in insurance proceeds (or adequate
assurance thereof) needed to make the repairs on or before the earlier of (i)
the date which is ten days after Lessee's receipt of Lessor's written notice
purporting to terminate this Lease, or (ii) the day prior to the date upon which
such option expires. If Lessee duly exercises such option during such period and
provides Lessor with funds (or adequate assurance thereof) to cover any shortage
in insurance proceeds, Lessor shall, at Lessor's commercially reasonable
expense, repair such damage as soon as reasonably possible and this Lease shall
continue in full force and effect. If Lessee fails to exercise such option and
provide such funds or assurance during such period, then this Lease shall
terminate on the date specified in the termination notice and Lessee's option
shall be extinguished. In the event of such termination, Lessor shall be
entitled to obtain and retain all insurance proceeds payable on account of such
Total Destruction; provided, that so long as the amount which Lessor is able to
recover from the insurance carriers is not thereby reduced, Lessee shall have
the right to obtain and retain insurance proceeds on account of damage to its
Trade Fixtures and personal property.
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9.6 Abatement of Rent; Lessee's Remedies.
(a) Abatement. In the event of Premises Total Destruction
for which Lessee is not responsible under this Lease, the Rent payable by Lessee
for the period required for the repair, remediation or restoration of such
damage shall be abated in proportion to the degree to which Lessee's use of the
Premises is impaired, but not to exceed the proceeds received from the Rental
Value Insurance. All other obligations of Lessee hereunder shall be performed by
Lessee, and Lessor shall have no liability for any such damage, destruction,
remediation, repair or restoration except as provided herein.
9.7 Termination - Advance Payments. Upon termination of
this Lease pursuant to Paragraph 6.2(g) or Paragraph 9, an equitable adjustment
shall be made concerning advance Base Rent and any other advance payments made
by Lessee to Lessor. Lessor shall, in addition, return to Lessee so much of
Lessee's Security Deposit as has not been, or is not then required to be, used
by Lessor.
9.8 Waive Statutes. Lessor and Lessee agree that the terms
of this Lease shall govern the effect of any damage to or destruction of the
Premises with respect to the termination of this Lease and hereby waive the
provisions of any present or future statute to the extent inconsistent herewith.
10. Real Property Taxes.
10.1 Definition of "Real Property Taxes." As used herein,
the term "Real Property Taxes" shall include any form of assessment; real
estate, general, special, ordinary or extraordinary, or rental levy or tax
(other than inheritance, personal income or estate taxes); improvement bond;
and/or license fees imposed upon or levied against any legal or equitable
interest of Lessor in the Premises, Lessor's right to other income therefrom,
and/or Lessor's business of leasing, by any authority having the direct or
indirect power to tax and where the funds are generated with reference to the
Building address and where the proceeds so generated are to be applied by the
city, county or other local taxing authority of a jurisdiction within which the
Premises are located. The term "Real Property Taxes" shall also include any tax,
fee, levy, assessment or charge, or any increase therein, imposed by reasons of
events occurring during the term of this Lease, including but not limited to, a
change in the ownership of the Premises. See Addendum, Paragraph 56.
10.2
(a) Payment of Taxes. Lessee shall pay the Real Property
Taxes applicable to the Premises during the term of this Lease. Subject to
Paragraph 10.2(b), all such payments shall be made prior to any delinquency
date. Lessee shall promptly furnish Lessor with satisfactory evidence that such
taxes have been paid. If any such taxes shall cover any period of time prior to
or after the expiration or termination of this Lease, Lessee's share of such
taxes shall be prorated to cover only that portion of the tax xxxx applicable to
the period that this Lease is in effect, and Lessor shall reimburse Lessee for
any overpayment. If Lessee shall fail to pay any required Real Property Taxes,
Lessor shall have the right to pay the same, and Lessee shall reimburse Lessor
therefore upon demand. See Addendum, Paragraph 56.
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(b) Advance Payment. In the event Lessee incurs a late
charge on any Rent payment two or more times in any twelve month period, Lessor
may, at Lessor's option estimate the current Real Property Taxes and require
that such taxes be paid in advance to Lessor by Lessee, either: (i) in a lump
sum amount equal to the installment due, at least twenty (20) days prior to the
applicable delinquency date, or (ii) monthly in advance with the payment of the
Base Rent. If Lessor elects to require payment monthly in advance, the monthly
payment shall be an amount equal to the amount of the estimated installment of
taxes divided by the number of months remaining before the month in which said
installment becomes delinquent. When the actual amount of the applicable tax
xxxx is known, the amount of such equal monthly advance payments shall be
adjusted as required to provide the funds needed to pay the applicable taxes. If
the amount collected by Lessor is insufficient to pay such Real Property Taxes
when due, Lessee shall pay Lessor, upon demand, such additional sums as are
necessary to pay such obligations. All monies paid to Lessor under this
Paragraph may be intermingled with other monies of Lessor and shall not bear
interest.
10.3 Joint Assessment. If the Premises are not separately
assessed, Lessee's liability shall be an equitable proportion of the Real
Property Taxes for all of the land and improvements included within the tax
parcel assessed, such proportion to be conclusively determined by Lessor from
the respective valuations assigned in the assessor's work sheets or such other
information as may be reasonably available.
10.4 Personal Property Taxes. Lessee shall pay, prior to
delinquency, all taxes assessed against and levied upon Lessee Owned
Alterations, utility Installations, Trade Fixtures, furnishings, equipment and
all personal property of Lessee. When possible, Lessee shall cause such property
to be assessed and billed separately from the real property of Lessor. If any of
the Lessee's said personal property shall be assessed with Lessor's real
property, Lessee shall pay Lessor the taxes attributable to Lessee's property
within ten (10) days after receipt of a written statement.
11. Utilities. Lessee shall pay for all water, gas, heat,
light, power, telephone, trash disposal and other utilities and services
supplied to the Premises, together with any taxes thereon. If any such services
are not separately metered to Lessee, Lessee shall pay a reasonable proportion,
to be determined by Lessor, of all charges jointly metered.
12. Assignment and Subletting.
12.1 Lessor's Consent Required.
(a) Lessee shall not voluntarily or by operation of law
assign, transfer, mortgage or encumber (collectively, "assign or assignment") or
sublet all or any part of Lessee's interest in this Lease or in the Premises
without Lessor's prior written consent. In accordance with Paragraph 36, Lessor
agrees that it consent will not be unreasonably withheld.
(b) An assignment or subletting without consent shall, at
Lessor's option, be a Default curable after notice per Paragraph 13.1(c), or a
noncurable Breach without the necessity of any notice and grace period. If
Lessor elects to treat such unapproved assignment or subletting as a noncurable
Breach, Lessor may either: (i) terminate this Lease, or (ii) upon thirty
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(30) days written notice, increase the monthly Base Rent to one hundred ten
percent (110%) of the Base Rent then in effect. Further, in the event of such
Breach and rental adjustment, the purchase price of any option to purchase the
Premises held by Lessee shall be subject to such adjustment to one hundred ten
percent (110%) or the price previously in effect. Further in the event of such
Breach and rental adjustment, (i) the purchase price of any option to purchase
the Premises held by Lessee shall be subject to such adjustment to one hundred
ten percent (110%) or a price previously in effect, and (ii) all fixed and
non-fixed rental adjustments scheduled during the remainder of the Lease term
shall be increased to One Hundred Ten Percent (110%) of the scheduled adjusted
rent.
(c) Lessee's remedy for any breach of Paragraph 12.1 by
Lessor shall be limited to compensatory damages and/or injunctive relief.
(d) Notwithstanding the foregoing, Lessee shall have the
right, upon prior notice to Lessor, to assign its interest in this Lease or
sublet all or part of the Premises to a transferee (i) whose net worth,
financial condition and ability to pay are sufficient to enable such transferee
to perform all of the obligations of Lessee hereunder (or in the case of a
subletting, all of Lessee's obligations pertaining to that portion of the
Premises which is sublet) and (ii) who uses the Premises for the purposes
permitted in this Lease. Such transfer will not affect the obligations of Lessee
hereunder. See Addendum, Paragraphs 64 and 65.
12.2 Terms and Conditions Applicable to Assignment and
Subletting.
(a) Regardless of Lessor's consent, any assignment or
subletting shall not: (i) be effective without the express written assumption by
such assignee or sublessee of the obligations of Lessee under this Lease; (ii)
release Lessee of any obligations hereunder; or (iii) alter the primary
liability of Lessee for the payment of Rent or the performance of any other
obligations to be performed by Lessee.
(b) Lessor may accept Rent or performance of Lessee's
obligations from any person other than Lessee pending approval or disapproval of
an assignment. Neither a delay in the approval or disapproval of such assignment
nor the acceptance of Rent or performance shall constitute a waiver or estoppel
of Lessor's right to exercise its remedies for Lessee's Default or Breach.
(c) Lessor's consent to any assignment or subletting shall
not constitute a consent to any subsequent assignment or subletting.
(d) In the event of any Default or Breach by Lessee, Lessor
may proceed directly against Lessee, any Guarantors or anyone else responsible
for the performance of Lessee's obligations under this Lease, including any
assignee or sublessee, without first exhausting Lessor's remedies against any
other person or entity responsible therefore to Lessor, or any security held by
Lessor.
(e) Each request for consent to an assignment or subletting
shall be in writing, accompanied by information relevant to Lessor's
determination as to the financial and operational responsibility and
appropriateness of the proposed assignee or sublessee, including but not limited
to the intended use and/or required modification of the Premises, if any,
together
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with a fee of $1,000 as consideration for Lessor's considering and processing
said request. Lessee agrees to provide Lessor with such other or additional
information and/or documentation as may be reasonably requested.
(f) Any assignee of, or sublessee under, this Lease shall,
by reason of accepting such assignment or entering into such sublease, be deemed
to have assumed and agreed to conform and comply with each and every term,
covenant, condition and obligation herein to be observed or performed by Lessee
during the term of said assignment or sublease, other than such obligations as
are contrary to or inconsistent with provisions of an assignment or sublease to
which Lessor has specifically consented in writing.
12.3 Additional Terms and Conditions Applicable to
Subletting. The following terms and conditions shall apply to any subletting by
Lessee of all or any part of the Premises and shall be deemed included in all
subleases under this Lease whether or not expressly incorporated therein:
(a) Lessee hereby assigns and transfers to Lessor all of
Lessee's interest in all Rent payable on any sublease, and Lessor may collect
such Rent and apply same toward Lessee's obligations under this Lease; provided,
however, that until a Breach shall occur in the performance of Lessee's
obligations, Lessee may collect said Rent. Lessor shall not, by reason of the
foregoing or any assignment of such sublease, nor by reason of the collection of
Rent, be deemed liable to the sublessee for any failure of Lessee to perform and
comply with any of Lessee's obligations to such sublessee. Lessee hereby
irrevocably authorizes and directs any such sublessee, upon receipt of a written
notice from Lessor stating that Breach exists in the performance of Lessee's
obligations under this Lease, to pay to Lessor all Rent due and to become due
under the sublease. Sublessee shall rely upon any such notice from Lessor and
shall pay all rents to Lessor without any obligation or right to inquire as to
whether such Breach exists, notwithstanding any claim from Lessee to the
contrary.
(b) In the event of a Breach by Lessee, Lessor may, at its
option, require sublessee to attorn to Lessor, in which event Lessor shall
undertake the obligations of the sublessor under such sublease from the time of
the exercise of said option to the expiration of such sublease; provided,
however, Lessor shall not be liable for any prepaid rents or security deposit
paid by such sublessee to such sublessor or for any prior Defaults or Breaches
of such sublessor.
(c) Any matter requiring the consent of the sublessor under
a sublease shall also require the consent of Lessor.
(d) No sublessee shall further assign or sublet all or any
part of the Premises without Lessor's prior written consent. See Addendum,
Paragraph 64. 13. Default; Breach; Remedies.
13.1 Default; Breach. A "Default" is defined as a failure by
the Lessee to comply with or perform any of the terms, covenants, conditions or
rules under this Lease. A "Breach" is defined as the occurrence of one or more
of the following Defaults, and the failure of Lessee to cure such Default within
any applicable grace period:
15
(a) The abandonment of the Premises; or the vacating of the
Premises without providing a commercially reasonable level of security, or where
the coverage of the property insurance described in Paragraph 8.3 is jeopardized
as a result thereof, or without providing reasonable assurances to minimize
potential vandalism.
(b) The failure of Lessee to make any payment of Rent or
any Security Deposit required to be made by Lessee hereunder, whether to Lessor
or to a third party, when due, to provide reasonable evidence of insurance or
surety bond, or to fulfill any obligation under this Lease which endangers or
threatens life or property, where such failure continues for a period of three
(3) business days following written notice to Lessee.
(c) The failure by Lessee to provide (i) reasonable written
evidence of compliance with Applicable Requirements, (ii) the service contracts,
(iii) the rescission of an unauthorized assignment or subletting, (iv) a
Estoppel Certificate, (v) a required subordination, (vi) any document requested
under Paragraph 42 (easements), or (vii) any other documentation or information
which Lessor may reasonably require of Lessee under the terms of this Lease,
where any such failure continues for a period of ten (10) days following written
notice to Lessee.
(d) a Default by Lessee as to the terms, covenants,
conditions or provisions of this Lease, or of the rules adopted under Paragraph
40 hereof, other than those described in subparagraphs 13.1(a), (b) or (c),
above, where such Default continues for a period of thirty (30) days after
written notice; provided, however, that if the nature of Lessee's Default is
such that more than thirty (30) days are reasonably required for its cure, then
it shall not be deemed to be a Breach if Lessee commences such cure within said
thirty (30) day period and thereafter diligently prosecutes such cure to
completion.
(e) The occurrence of any of the following events: (i) the
making of any general arrangement or assignment for the benefit of creditors;
(ii) becoming a "debtor" as defined in 11 U.S.C. (S). 101 or any successor
statute thereto (unless, in the case of a petition filed against Lessee, the
same is dismissed within sixty (60) days); (iii) the appointment of a trustee or
receiver to take possession of substantially all of Lessee's assets located at
the Premises or of Lessee's interest in this Lease, where possession is not
restored to Lessee within thirty (30) days; or (iv) the attachment, execution or
other judicial seizure of substantially all of Lessee's assets located at the
Premises or of Lessee's interest in this Lease, where such seizure is not
discharged within thirty (30) days; provided, however, in the event that any
provision of this subparagraph 13.1(e) is contrary to any applicable law, such
provision shall be of no force or effect, and not affect the validity of the
remaining provision.
(f) The discovery that any audited financial statement of
Lessee given to Lessor was materially false, or that any unaudited financial
statement of Lessee given to Lessor was materially false except for
unintentional or clerical errors.
(g) If the performance of Lessee's obligations under this
Lease is guaranteed: (i) the death of a Guarantor; (ii) the termination of a
Guarantor's liability with respect to this Lease other than in accordance with
the terms of such guaranty; (iii) a Guarantor's becoming insolvent or the
subject of a bankruptcy filing;
16
13.2 Remedies. If Lessee fails to perform any of its
affirmative duties or obligations, within ten (10) days after written notice (or
in the case of an emergency, without notice (provided, that Lessor shall use
commercially reasonable efforts to give whatever notice is practical in the
circumstances)), Lessor may, at its option, perform such duty or obligation on
Lessee's behalf, including but not limited to the obtaining of reasonably
required bonds, insurance policies, or governmental licenses, permits or
approvals. The costs and expenses of any such performance by Lessor shall be due
and payable by Lessee upon receipt of invoice therefore. If any check given to
Lessor by Lessee shall not be honored by the bank upon which it is drawn,
Lessor, at its option, may require all future payments of rent to be made by
Lessee during the next twelve (12) months to be by cashier's check. In the event
of a Breach, Lessor may, with or without further notice or demand, and without
limiting Lessor in the exercise of any right or remedy which Lessor may have by
reason of such breach:
(a) Terminate Lessee's right to possession of the Premises
by any lawful means, in which case this Lease shall terminate and Lessee shall
immediately surrender possession to Lessor. In such event Lessor shall be
entitled to recover from Lessee: (i) the unpaid Rent which had been earned at
the time of termination; (ii) the worth at the time of the award of the amount
by which the unpaid rent which would have been earned after termination until
the time of award exceeds the amount of such rental loss that the Lessee proves
could have been reasonably avoided; (iii) the worth at the time of award of the
amount by which the unpaid rent for the balance of the term after the time of
award exceeds the amount of such rental loss that the Lessee proves could be
reasonably avoided; and (iv) any other amount necessary to compensate Lessor for
all the detriment proximately caused by the Lessee'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 Premises, expenses of reletting, including necessary
renovation and alteration of the Premises, reasonable attorneys' fees, and that
portion of any leasing commission paid by Lessor in connection with this Lease
applicable to the unexpired term of this Lease. The worth at the time of the
award of the amount referred to in provision (iii) of the immediately preceding
sentence shall be computed by discounting such amount at the discount rate of
the Federal Reserve Bank of the District within which the Premises are located
at the time of award plus one percent (1%). Efforts by Lessor to mitigate
damages caused by Lessee's Breach of this Lease shall not waive Lessor's right
to recover damages under Paragraph 12. If termination of this Lease is obtained
through the provisional remedy of unlawful detainer, Lessor shall have the right
to recover in such proceeding any unpaid Rent and damages as are recoverable
therein, or Lessor may reserve the right to recover all or any part thereof in a
separate suit. If a notice and grace period required under Paragraph 13.1 was
not previously given, a notice to pay rent or quit, or to perform or quit given
to Lessee under the unlawful detainer statute shall also constitute the notice
required by Paragraph 13.1. In such case, the applicable grace period required
by Paragraph 13.1 and the unlawful detainer statute shall run concurrently, and
the failure of Lessee to cure the Default within the greater of the two such
grace periods shall constitute both an unlawful detainer and a Breach of this
Lease entitling Lessor to the remedies provided for in this Lease and/or by said
statute. See Addendum, Paragraph 57.
(b) Continue the Lease and Lessee's right to possession and
recover the Rent as it becomes due, in which event Lessee may sublet or assign,
subject only to reasonable
17
limitations. Acts of maintenance, efforts to relet, and/or the appointment of a
receiver to protect the Lessor's interests, shall not constitute a termination
of the Lessee's right to possession.
(c) Pursue any other remedy now or hereafter available under
the laws or judicial decisions of the state wherein the Premises are located.
The expiration or termination of this Lease and/or the termination of Lessee's
right to possession shall not relieve Lessee from liability under any indemnity
provisions of this Lease as to matters occurring or accruing during the term
hereof or by reason of Lessee's occupancy of the Premises.
13.3 Inducement Recapture. Any agreement for free or abated
rent or other charges, or for the giving or paying by Lessor to or for Lessee of
any cash or other bonus, inducement or consideration for Lessee's entering into
this Lease, all of which concessions are hereinafter referred to as "Inducement
Provisions," shall be deemed conditioned upon Lessee's full and faithful
performance of all of the terms, covenants and conditions of this Lease. Upon
Breach of this Lease by Lessee, any such Inducement provision shall
automatically be deemed deleted from this Lease and of no further force and
effect, and any rent, other charge, bonus, inducement or consideration
theretofore abated, given or paid by Lessor under such an Inducement Provision
shall be immediately due and payable by Lessee to Lessor, notwithstanding any
subsequent cure of said Breach by Lessee. The acceptance by Lessor of Rent or
the cure of the Breach which initiated the operation of this paragraph shall not
be deemed a waiver by Lessor of the provisions of this paragraph unless so
stated in writing by Lessor at the time of such acceptance. Notwithstanding the
foregoing, no Inducement Provision shall be deemed deleted unless (i) the Lessee
does not cure its Default within the time period granted herein and (ii) such
Default is not cured within a further thirty (30) days after Lessor notifies
Lessee of its failure to effect such cure within such cure period.
13.4 Late Charges. Lessee hereby acknowledges that late
payment by Lessee of Rent will cause Lessor to incur costs not contemplated by
this Lease, the exact amount of which will be extremely difficult to ascertain.
Such costs include, but are not limited to, processing and accounting charges,
and late charges which may be imposed upon Lessor by any Lender. Accordingly, if
any Rent shall not be received by Lessor within five (5) days after such amount
shall be due, then, without any requirement for notice to Lessee, Lessee shall
pay to Lessor a one-time late charge equal to ten percent (10%) of such overdue
amount. The Parties hereby agree that such late charge represents a fair and
reasonable estimate of the costs Lessor will incur by reason of such late
payment. Acceptance of such late charge by Lessor shall in no event constitute a
waiver of Lessee's Default or Breach with respect to such overdue amount, nor
prevent the exercise of any of the other rights and remedies granted hereunder.
In the event that a late charge is payable hereunder, whether or not collected,
for three (3) consecutive installments of Base Rent, then notwithstanding any
provision of this Lease to the contrary, Base Rent shall, at Lessor's option,
become due and payable quarterly in advance.
13.5 Interest. Any monetary payment due Lessor hereunder,
other than late charges, not received by Lessor, when due as to scheduled
payments (such as Base Rent) or within thirty (30) days following the date on
which it was due for non-scheduled payment, shall bear interest from the date
when due, as to scheduled payments, or the thirty-first (31/st/) day after it
was due as to non-scheduled payments. The Interest ("Interest") charged shall be
equal to the prime rate reported in the Wall Street Journal as published closest
prior to the date when due plus
18
four percent (4%), but shall not exceed the maximum rate allowed by law.
Interest is payable in addition to the potential late charge provided for in
paragraph 13.4.
13.6 Breach by Lessor.
(a) Notice of Breach. Lessor shall not be deemed in breach
of this Lease unless Lessor fails within a reasonable time to perform an
obligation required to be performed by Lessor. For purposes of this paragraph, a
reasonable time shall in no event be less than thirty (30) days after receipt by
Lessor, and any Lender whose name and address shall have been furnished Lessee
in writing for such purpose, of written notice specifying wherein such
obligation of Lessor has not been performed; provided, however, that if the
nature of Lessor's obligation is such that more than thirty (30) days are
reasonably required for its performance, then Lessor shall not be in breach if
performance is commenced within such thirty (30) day period and thereafter
diligently pursued to completion. See Addendum, Paragraph 58.
(b) Performance by Lessee on Behalf of Lessor. In the event
that neither Lessor nor Lender cures said breach within thirty (30) days after
receipt of said notice, or if having commenced said cure they do not diligently
pursue it to completion, then Lessee may elect to cure said breach at Lessee's
expense and offset from Rent an amount equal to the greater of one month's Base
Rent or the Security Deposit, and to pay an excess of such expense under
protest, reserving Lessee's right to reimbursement from Lessor. Lessee shall
document the cost of said cure and supply said documentation to Lessor. See
Addendum, Paragraph 58.
14. Condemnation. If the Premises or any portion thereof are
taken under the power of eminent domain or sold under the threat of the exercise
of said power (collectively "Condemnation"), this Lease shall terminate as to
the part taken as of the date the condemning authority takes title or
possession, whichever first occurs. If more than ten percent (10%) of any
building portion of the Premises, or more than twenty-five percent (25%) of the
land area portion of the Premises not occupied by any building, is taken by
Condemnation, Lessee may, at Lessee's option, to be exercised in writing within
thirty (30) days after Lessor shall have given Lessee written notice of such
taking (or in the absence of such notice, within ten (10) days after the
condemning authority shall have taken possession) terminates this Lease as of
the date the condemning authority takes such possession. If Lessee does not
terminate this Lease in accordance with the foregoing, this Lease shall remain
in full force and effect as to the portion of the Premises remaining, except
that the Base Rent shall be reduced in proportion to the reduction in utility of
the Premises caused by such Condemnation. Condemnation awards and/or payments
shall be the property of Lessor, whether such award shall be made as
compensation for diminution in value of the leasehold, the value of the part
taken, or for severance damages; provided, however, that Lessee shall be
entitled to any compensation for Lessee's relocation expenses, loss of business
goodwill and/or Trade Fixtures, without regard to whether or not this Lease is
terminated pursuant to the provisions of this Paragraph. All Alterations and
Utility Installations made to the Premises by Lessee, for purposes of
Condemnation only, shall be considered the property of the Lessee and Lessee
shall be entitled to any and all compensation which is payable therefore. In the
event that this Lease is not terminated by reason of the Condemnation, Lessor
shall repair any damage to the Premises caused by such Condemnation. See
Addendum, Paragraph 59.
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15. Brokers' Fee.
15.1 Representation and indemnities of Broker Relationships.
Lessee and Lessor each represent and warrant to the other that it has had no
dealings with any person, firm, broker or finder (other than the Brokers, if any
) in connection with this Lease, and that no one other than said named Brokers
is entitled to any commission or finder's fee in connection herewith. Lessee and
Lessor do each hereby agree to indemnify, protect, defend and hold the other
harmless from and against liability for compensation or charges which may be
claimed by any such unnamed broker, finder or other similar party by reason of
any dealings or actions of the indemnifying Party, including any cost, expenses,
and/or attorney's fees reasonably incurred with respect thereto.
16. Estoppel Certificates.
(a) Each Party (as "Responding Party") shall within ten (10)
days after written notice from the other Party (the "requesting Party") execute,
acknowledge and deliver to the Requesting Party a statement in writing in form
similar to the then most current "Estoppel Certificate" form published by the
American Industrial Real Estate Association, plus such additional information,
confirmation and/or statements as may be reasonably requested by the Requesting
Party and in the case of Lessor, its lender or prospective lender and any
prospective purchaser of the Premises.
(b) If the Responding Party shall fail to execute or deliver
the Estoppel Certificate within such ten day period, the Requesting Party may
execute an Estoppel Certificate stating that: (i) the Lease is in full force and
effect without modification except as may be represented by the Requesting Party
(ii) there are no uncured defaults in the Requesting Party's performance, (iii)
if Lessor is the Requesting Party, not more than one month's Rent has been paid
in advance and (iv) to such other effect as the Responding Party could have been
requested to respond pursuant to paragraph (a) above. Prospective purchasers and
encumbrances may rely upon the Requesting Party's Estoppel Certificate, and the
Responding Party shall be estopped from denying the truth of the facts contained
in said Certificate.
(c) If Lessor desires to finance, refinance, or sell the
Premises, or any part thereof, Lessee and all Guarantors shall deliver to any
potential lender or purchaser designated by Lessor such financial statements as
may be reasonably required by such lender or purchaser, including, but not
limited to, Lessee's financial statements for the past three (3) years. All such
financial statements shall be received by Lessor and such lender or purchaser in
confidence and shall be used only for the purposes herein set forth.
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17. Definition of Lessor. The term "Lessor" as used herein shall mean to
the owner or owners at the time in question of the fee title to the Premises,
or, if this is a sublease, of the Lessee's interest in the prior lease. In the
event of a transfer of Lessor's title or interest in the Premises or this Lease,
Lessor shall deliver to the transferee or assignee (in cash or by credit) any
unused Security Deposit held by Lessor. Except as provided in Paragraph 15, upon
such transfer or assignment and delivery of the Security Deposit, as aforesaid,
the prior Lessor shall be relieved of all liability with respect to the
obligations and/or covenants under this Lease thereafter to be performed by the
Lessor. Subject to the foregoing, the obligations and/or covenants in this Lease
to be performed by the Lessor shall be binding only upon the Lessor as
hereinabove defined. Notwithstanding the above, and subject to the provisions of
Paragraph 20 below, the original Lessor under this Lease, and all subsequent
holders of the Lessor's interest in this Lease shall remain liable and
responsible with regard to the potential duties and liabilities of Lessor
pertaining to Hazardous Substance as outlined in Paragraph 6 above.
18. Severability. The invalidity of any provision of this Lease, as
determined by a court of competent jurisdiction, shall in no way affect the
validity of any other provision hereof.
19. Days. Unless otherwise specifically indicated to the contrary, the word
"days" as used in this Lease shall mean and refer to calendar days.
20. Limitation on Liability. Subject to the provisions of Paragraph 17
above, the obligations of Lessor under this Lease shall not constitute personal
obligation or Lessor, the individual partners of Lessor or its or their
individual partners, directors, officers or shareholders, and Lessee shall look
to the Premises, and to no other assets of Lessor, for the satisfaction of any
liability of Lessor with respect to this Lease, and shall not seek recourse
against the individual partners of Lessor, or its or their individual partners,
directors, officers or shareholders, or any of their personal assets for such
satisfaction.
21. Time of Essence. Time is of the essence with respect to the performance
of all obligations to be performed or observed by the Parties under this Lease.
22. No Prior or Other Agreements; Broker Disclaimer. This Lease contains
all agreements between the Parties with respect to any matter mentioned herein,
and no other prior contemporaneous agreement or understanding shall be
effective.
23. Notices.
23.1 Notice Requirements. All notices required or permitted by the Lease
shall be in writing and may be delivered in person (by hand or by courier) or
may be sent by regular, certified or registered mail or U.S. Postal Service
Express Mail, with postage prepaid, or by facsimile transmission, and shall be
deemed sufficiently given if served in a manner specified in this Paragraph 23.
The addresses noted adjacent to a Party's signature on this Lease shall be that
Party's address for delivery or mailing of notices. Either Party may by written
notice to the other specify a different address for notice, except that upon
Lessee's taking possession of the Premises, the Premises shall constitute
Lessee's address for notice. A copy of all notices to
21
Lessor shall be concurrently transmitted to such party or parties at such
addresses as Lessor may from time to time hereafter designate in writing.
23.2 Date of Notice. Any notice sent by registered or certified mail,
return receipt requested, shall be deemed given on the date of delivery shown on
the receipt card, or if no delivery date is shown, the postmark thereon. If sent
by regular mail the notice shall be deemed given forty-eight (48) hours after
the same is addressed as required herein and mailed with postage prepaid.
Notices delivered by United States Express Mail or overnight courier that
guarantee next day delivery shall be deemed given twenty-four (24) hours after
delivery of the same to the Postal Service or courier. Notices transmitted by
facsimile transmission or similar means shall be deemed delivered upon telephone
confirmation of receipt, provided a copy is also delivered via delivery or mail.
If notice is received on a Saturday, Sunday or legal holiday, it shall be deemed
received on the next business day.
23.3 Waivers. No waiver by Lessor of the Default or Breach of any term,
covenant or condition hereof by Lessee, shall be deemed a waiver of any other,
covenant or condition hereof, or of any subsequent Default or Beach by Lessee of
the same or of any other term, covenant or condition hereof. Lessor's consent
to, or approval of, any act shall not be deemed to render unnecessary the
obtaining of Lessor's consent to, or approval of, any subsequent or similar act
by lessee, or be construed as the basis of an estoppel to enforce the provision
or provisions of this Lease requiring such consent. The acceptance of Rent by
Lessor shall not be a waiver of any Default or Breach by Lessee. Any payment by
Lessee may be accepted by Lessor on account of monies or damage due Lessor,
notwithstanding any qualifying statements or conditions made by Lessee in
connection therewith, which such statements and/or conditions shall be of no
force or effect whatsoever unless specifically agreed to in writing by Lessor at
or before the time of deposit of such payment.
23.4 Recording. Either Lessor or Lessee shall, upon request of the
other, execute, acknowledge and deliver to the other a short form memorandum of
this Lease for recording purposes. The Party requiring recordation shall be
responsible for payment of all fees applicable thereto.
23.5 No Right To Holdover. Lessee has no right to retain possession of
the Premises or any part thereof beyond the expiration or termination of this
Lease. In the event that Lessee holds over, the Base Rent shall be increased to
one hundred fifty percent (150%) of the Base Rent applicable during the month
immediately preceding the expiration or termination. Nothing contained herein
shall be construed as consent by Lessor to any holding over by Lessee.
23.6 Cumulative Remedies. No remedy or election hereunder shall be
deemed exclusive but shall, wherever possible, be cumulative with all other
remedies at law or in equity.
23.7 Covenants and Conditions; Construction of Agreement. All
provisions of this Lease to be observed or performed by Lessee are both
covenants and conditions. In construing this Lease all headings and titles are
for the convenience of the Parties only and shall not be considered a part of
this Lease. Whenever required by context, the singular shall include
22
the plural and vice versa. This Lease shall not be construed as if prepared by
one of the Parties, but rather according to its fair meaning as a whole, as if
both Parties had prepared it.
23.8 Binding Effect. Choice of Law. This Lease shall be binding upon
the parties, their personal representatives, successors and assigns and be
governed by the laws of the State in which the Premises are located. Any
litigation between the Parties hereto concerning this Loan shall be initiated in
the county in which the Premises are located.
24. Subordination; Attornment;. Non-Disturbance.
24.1 Subordination. This Lease and any Option granted hereby shall be
subject and subordinate to any ground lease, mortgage, deed of trust, or other
hypothecation or security device (collectively, "Security Device"), now or
hereafter placed upon the Premises, to any and all advances made on the security
thereof, and to all renewals, modifications, and extensions thereof. Lessee
agrees that to holders of any such Security Devices (in this Lease together
referred to as "Lessor's Lender") shall have no liability or obligation to
perform any of the obligations of Lessor under this Lease (except that Lessor's
Lender shall have the obligation to perform the obligations of Lessor under this
Lease during any period of time after it forecloses or takes a deed in lieu and
for so long thereafter as it owns fee title to the Premises). Any Lender may
elect to have this Lease and/or any Options granted hereby superior to the lien
of its Security Device by giving written notice thereof to Lessee, whereupon
this Lease and such Options shall be deemed prior to such Security Device,
notwithstanding the relative dates of the documentation or recordation thereof.
24.2 Attornment. Subject to the non-disturbance provisions of
Paragraph 30.3, Lessee agrees to attorn to a Lender or any other party who
acquires ownership of the Premises by reason of a foreclosure of a Security
Device, and that in the event of such foreclosure, such new owner shall not: (i)
be liable for any act or omission of any prior lessor or with respect to events
occurring prior to acquisition of ownership (ii) be subject to any offsets or
defenses which Lessee might have against any lessor, or (iii) be bound by
prepayment of more than one (1) month's rent.
24.3 Non-Disturbance. With respect to Security Devices entered into by
Lessor after the execution of this Lease Lessee's subordination of this Lease
shall be subject to receiving a commercially reasonable non-disturbance
agreement (a "Non-Disturbance Agreement") from the Lender which Non-Disturbance
Agreement provides that Lessee's possession of the Premises, and this Lease,
including any options to extend the term hereof, will not be disturbed so long
as Lessee is not in Breach hereof and attorns to the record owner of the
Premises. Further, within sixty (60) days after the execution of this Lease,
Lessee shall use its commercially reasonable efforts to obtain a Non-Disturbance
Agreement from the holder of any pre-existing Security Device which is secured
by its Premises. In the event that Lessor is unable to provide the
Non-Disturbance Agreement within said sixty (60) days then Lessee may, at
Lessees's option, directly contact Lessor leader and attempt to negotiate for
the execution and delivery of a Non-Disturbance Agreement.
24.4 Self-Executing. The agreements contained in this Paragraph 30
shall be effective without the execution of any further documents; provided,
however, that, upon written
23
request from Lessor or a Lender in connection with a sale, financing or
refinancing of the Premises, Lessee and Lessor shall execute such further
writings as may be reasonably required to separately document any subordination,
attornment and/or Non-Disturbance Agreement provided for herein.
25. Attorney's Fees. If any Party or Broker brings an action or
proceeding involving the Premises to enforce the terms hereof or to declare
rights hereunder, the Prevailing Party (as hereafter defined) in any such
proceeding, action, or appeal thereon or their post judgment proceeding, shall
be entitled to reasonable attorneys' fees. Such fees may be awarded in the same
suit or recovered in a separate suit, whether or not such action or proceeding
is pursed to decision or judgment. The term, "Prevailing Party" shall include,
without limitation, a Party who substantially obtains or defeats the relief
sought, as the case may be, whether by compromise, settlement, judgment, or the
abandonment by the other Party of its claim or defense. The attorneys' fees
award shall not be computed in accordance with any court fee schedule, but shall
be such as to fully reimburse all attorneys' fees reasonably incurred. In
addition, Lessor shall be entitled to attorneys' fees, costs and expenses
incurred in the preparation and service of notices of default and consultations
in connection therewith, whether or not a legal action is subsequently commenced
in connection with such Default or resulting breach.
26. Lessor's Access; Showing Premises; Repairs. Lessor and Lessor's
agents shall have the right to enter the Premises at any time, in the case of
the emergency (but Lessor shall give such notice as is practical in the
circumstances) and otherwise on 48 hours notice for the purpose of showing the
same to prospective purchasers, lenders, or lessees, and making such
alterations, repairs, improvements or additions to the Premises as Lessor may
deem necessary. All such activities shall be without abatement of rent or
liability to Lessee. Lessor may at any time place on the Premises any ordinary
"(For Sale)" signs and Lessor may during the last six (6) months of the term
hereof place on the Premises any ordinary "For Lease" signs. Lessee may at any
time place on or about the Premises any ordinary "For Sublease" sign. (See
Addendum, Paragraph 55.)
27. Auction. Lessee shall not conduct, nor permit to be conducted, any
auction upon the Premises without Lessor's prior written consent. Lessor, shall
not be obligated to exercise any standard of reasonableness in determining
wither to permit an auction.
28. Signs. Except for ordinary "For Sublease" signs, Lessee shall not
place any sign upon the Premises without Lessor's prior written consent. All
signs must comply with all Applicable Requirements.
29. Termination; Merger. Unless specifically stated otherwise in
writing by Lessor, the voluntary or other surrender of this Lease by Lessee, the
actual termination or cancellation hereof, or a termination hereof by Lessor for
Breach by Lessee, shall automatically terminate any sublease or lesser estate of
the Premises; provided, however, that Lessor may elect to continue any one or
all existing subtenancies. Lessor's failure within ten (10) days following any
such event to elect to the contrary by written notice to the holder of any such
lesser interest, shall constitute Lessor's election to have such event
constitute the termination of such interest.
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30. Consents. Except as otherwise provided herein, wherever in this
Lease the consent of a Party required to an act by or for the other Party, such
consent shall not be unreasonably withheld or denied. Lessor's actual reasonable
costs and expenses (including, but not limited to, architects, attorneys',
engineers' and other consultants' fees) incurred in the consideration of or
response to, a request by Lessee for any Lessor consent, including, but not
limited to, consents to an assignment, a subletting or the presence or use of a
Hazardous Substance, shall be paid by Lessee upon receipt of an invoice and
supporting documentation therefore. Lessor's consent to any act, assignment or
subletting shall not constitute an acknowledgement that no Default or Breach by
Lessee of this Lease exists. Nor shall such consent be deemed a waiver of any
then existing Default or Breach by Lessee of this Lease exists, nor shall such
consent be deemed a waiver of any then existing Default or Breach, except as may
be otherwise specifically stated in writing by Lessor at the time of such
consent. The failure to specify herein any particular condition to Lessors
consent shall not preclude the imposition by Lessor at the time of consent of
such further or other conditions as are then reasonable with reference to the
particular matter for which consent is being given. In the event that either
Party disagrees with the determination made by the other hereunder and
reasonably requests the reasons for such determination, the determining party
shall furnish its reasons in writing and in reasonable detail within ten (10)
business days following such request. See Addendum, paragraph 57)
31. Guarantor.
31.1 Execution. The Guarantors, if any, shall each execute a guaranty
in the form most recently published by the American Industrial Real Estate
Association, and each such Guarantor shall have the same obligations as Lessee
under this Lease.
31.2 Default. It shall constitute a Default of the Lessee if any
Guarantor fails or refuses, upon request to provide, (a) evidence of the
execution of the guaranty, including the authority of the party signing on
Guarantors behalf to obligate Guarantor, and in the case of a corporate
Guarantor, a certified copy of a resolution of its board of directors
authorizing the making of such guaranty, (b) current financial statements, (c) a
Tenancy Statement, or (d) written confirmation that the guaranty is still in
effect.
32. Quiet Possession. Subject to payment by Lessee of the Rent and
performance of all the convents, conditions and provisions on Lessee's part to
be observed and performed under this Lease, Lessee shall have quiet possession
and quiet enjoyment of the Promises during the term hereof, subject to all
matters of record.
33. Options. See Addendum, Paragraph 51.
33.1 Definition. ("Option") shall mean: (a) the right to extend the
term of or renew this Lease or to extend or renew any lease that Lessee has on
other property of Lessor; (b) the right of first refusal or first offer to lease
either the Premises or other property of Lessor: (c) the right to purchase or
the right of first refusal to purchase the Premises or other property of Lessor.
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33.2 Options Personal To Original Lessee. Each Option granted to Lessee in
this Lease is personal to the original Lessee and cannot be assigned or
exercised by anyone other than said original Lessor and only while the original
Lessee is in full possession of the Premises and, if requested by Lessor, with
Lessee certifying that Lessee has no intention of thereafter assigning or
subletting.
33.3 Multiple Options. In the event that Lessee has any multiple Options to
extend or renew this Lease, a later Option cannot be exercised unless the prior
Options have been validly exercised.
33.4 Effect of Default on Options.
(a) Lessee shall have no right to exercise an Option: (i) during the period
commencing with the giving of any notice of Default and continuing until said
Default is cured, (ii) during the period of time any Rent is unpaid (without
regard to whether notice thereof is given Lessee), (iii) during the time Lessee
is in Breach of this Lease, or (iv) in the event that Lessee has been given
three (3) or more notices, of separate Default, whether or not the Defaults are
cured, during the twelve (12) month period immediately preceding the exercise of
the Option.
(b) The period of time within which an Option may be exercised shall not be
extended or enlarged by reasons of Lessee's inability to exercise an Option
because of the provisions of Paragraph 33.4(a)
(c) An Option shall terminate and be of no further force or effect,
notwithstanding Lessee's due and timely exercise of the Option. If, after such
exercise and prior to the commencement of the extended term, (i) Lessee fails to
pay Rent for a period of thirty (30) days after such Rent becomes due (without
any necessity of Lessor to give notice thereof), (ii) Lessor gives to Lessee
three (3) or more notices of separate Default during any twelve (12) month
period, whether or not the Defaults are cured, or (iii) if Lessee commits a
Breach of this Lease.
34. Multiple Buildings. If the Premises are a part of a group of buildings
controlled by Lessor, Lessee agrees that it will observe all reasonable rules
and regulations which Lessor may make from time to time for the management
safety, and care of said properties, including the care and cleanliness of the
grounds and including the parking, loading and unloading of vehicles, and that
Lessee will pay its fair share of common expenses incurred in connection
therewith.
35. Security Measures. Lessee hereby acknowledges that the rental payable
to Lessor hereunder does not include the cost of guard service or other security
measures, and that Lessor shall have no obligation whatsoever to provide same.
Lessee assumes all responsibility for the protection of the Premises, Lessee,
its agents and Invitees and their property from the acts of third parties.
26
36. Reservations. Lessor reserves to itself the right from time to time to
grant without the consent or joinder of Lessee such easements, rights and
dedications that Lessor deems necessary, and to cause the recordation of parcel
maps and restrictions, so long as such easements, rights, dedications, maps and
restrictions do not unreasonably interfere with the use of the Premises by
Lessee. Lessee agrees to sign and acknowledge any documents reasonably requested
by Lessor to effectuate any such easement rights, dedications, maps or
restrictions.
37. Performance Under Protest. If at any time a dispute shall arise as to
any amount or sum of money to be paid by one Party to the other under the
provisions hereof, the Party against whom to obligation to pay the money is
asserted shall have the right to make payment "under protest" and such payment
shall not be regarded as a voluntary payment and there shall survive the right
of the part of said Party to institute suit for recovery of such sum. If it
shall be adjudged that there was no legal obligation on the part of said Party
to pay such sum or any part thereof, said Party shall be entitled to recover
such sum or so much thereof as it was not legally required to pay.
38. Authority. If either Party hereto is a corporation, trust, limited
liability company, partnership, or similar entity, each individual executing
this Lease on behalf of such entity represents and warrants that he or she is
duly authorized to execute and deliver this Lease on its behalf. Each Party
shall, within thirty (30) days after request, deliver to the other Party
satisfactory evidence of such authority.
39. Conflict. Any conflict between the printed provisions of this Lease and
the typewritten or handwritten provisions shall be controlled by the typewritten
or handwritten provisions.
40. Offer. Preparation of this Lease by either Party or their agent and
submission of the same to the other Party shall not be deemed an offer to lease
to the other Party. This Lease is not intended to be pending until executed and
delivered by all Parties herein.
41. Amendments. This Lease may be modified only in writing, signed by the
Parties in interest at the time of the modification. As long as they do not
materially change Lessee's obligations hereunder, Lessee agrees to make such
reasonable non-monetary modifications to this Lease as may be reasonably
required by a Lender in connection with the obtaining of normal financiering or
refinancing of the Premises.
42. Multiple Parties. If more than one person or entity is named herein as
either Lessor or Lessee, such multiple Parties shall have joint and several
responsibility to comply with the terms of this Lease.
43. Mediation and Arbitration of Disputes. An Addendum requiring the
Mediation and/or the Arbitration of all disputes between the Parties and/or
Brokers arising out of this Lease [_] Is [_] Is not attached to this Lease.
LESSOR AND LESSEE HAVE CAREFULLY READ AND REVIEWED THIS LEASE AND EACH TERM AND
PROVISION CONTAINED HEREIN, AND BY THE EXECUTION OF THIS LEASE SHOW THEIR
INFORMED AND VOLUNTARY CONSENT THERETO. THE PARTIES HEREBY AGREE THAT AT THE
TIME THIS LEASE IS EXECUTED, THE
27
TERMS OF THIS LEASE ARE COMMERCIALLY REASONABLE AND EFFECTUATE THE INTENT AND
PURPOSE OF LESSOR AND LESSEE WITH RESPECT TO THE PREMISES.
--------------------------------------------------------------------------------
ATTENTION: NO REPRESENTATION OR RECOMMENDATION IS MADE BY THE AMERICAN
---------
INDUSTRIAL REAL ESTATE ASSOCIATION OR BY ANY BROKER AS TO THE LEGAL SUFFICIENCY,
LEGAL EFFECT, OR TAX CONSEQUENCES OF THIS LEASE OR THE TRANSACTION TO WHICH IT
RELATES. THE PARTIES ARE URGED TO:
1. SEEK ADVICE OF COUNSEL AS TO THE LEGAL AND TAX CONSEQUENCES OF THIS LEASE.
2. RETAIN APPROPRIATE CONSULTANTS TO REVIEW AND INVESTIGATE THE CONDITION OF THE
PREMISES. SAID INVESTIGATION SHOULD INCLUDE BUT NOT BE LIMITED TO: THE POSSIBLE
PRESENCE OF HAZARDOUS SUBSTANCES, THE ZONING OF THE PREMISES, THE STRUCTURAL
INTEGRITY, THE CONDITION OF THE ROOF AND OPERATING SYSTEMS, AND THE SUITABILITY
OF THE PREMISES FOR LESSEE'S INTENDED USE.
WARNING: IF THE PREMISES IS LOCATED IN A STATE OTHER THAN CALIFORNIA, CERTAIN
PROVISIONS OF THE LEASE MAY NEED TO BE REVISED TO COMPLY WITH THE LAWS OF THE
STATE IN WHICH THE PREMISES IS LOCATED.
--------------------------------------------------------------------------------
The parties hereto have executed this lease at the place and on the dates
specified above their respective signatures.
Executed at: Irvine, California Executed at: York, Pennsylvania
------------------------- ---------------------------
on: March , 2000 on: March , 2000
---------------------------------- -----------------------------------
By Lessor By Lessee
LNR Santa Xxxxx I LLC, Delaware limited United Defense L.P., a Delaware limited
--------------------------------------- ---------------------------------------
liability company partnership
--------------------------------------- ---------------------------------------
By: LEGEND OAKS LIMITED PARTNERSHIP,
--------------------------------
a Delaware limited partnership, its member
------------------------------------------
By: LENNAR LEGEND OAKS Name Printed:Xxxxx Xxxxxx
---------------------------------------- ---------------------
HOLDINGS INC., a Colorado Corporation, Title: Vice President and General
--------------------------------------- --------------------------
its general partner Manager
------------------- -------
28
By: Title: Vice President and General Manager
---------------------------------------- -------------------------------------
Name Printed:
------------------------------
Title: Vice President By:
------------------------------------- ----------------------------------------
Address: 00000 Xxx Xxxxxx Xxxxxx, Xxxxx 000 Name Printed:
---------------------------------- ------------------------------
Xxxxxx, Xxxxxxxxxx 00000 Title: Attention: Xxxx Xxxxx
---------------------------------- -------------------------------------
Address: 0000 Xxxxxxx Xxxxxx
-----------------------------------
Xxxxx Xxxxx, Xxxxxxxxxx 00000
-----------------------------------
Telephohne: (000) 000-0000 Telephohne: (000) 000-0000
--------------------------------- --------------------------------
Facsimile: (000) 000-0000 Facsimile: (000) 000-0000
--------------------------------- ---------------------------------
Federal ID No. Federal ID No.
------------------------------ -----------------------------
Initials
---------- ---------
NOTE: These forms are often modified to meet the changing requirements of law
and industry needs. Always write or call to make sure you are utilizing the most
current form: AMERICAN INDUSTRIAL REAL ESTATE ASSOCIATION, 000 Xx. Xxxxxx
Xxxxxx, Xxxxx 000, Xxx Xxxxxxx, Xxxxxxxxxx 00000. (000) 000-0000. Fax No. (213)
000-0000
ADDENDUM
This is the Addendum to that certain Standard Industrial/Commercial
Single-Tenant Lease -Net dated as of March 1, 2000 between LNR Santa Clare 1,
LLC, a Delaware limited liability company, as Lessor, and United Defense L.P., a
Delaware limited partnership, as Lessee (the "Lease"). All capitalized terms
used in this Addendum without definition shall have the meanings given to them
in the Lease. In the event of any inconsistency between the provisions of this
Addendum and those of the printed portions of the Lease, the provisions of this
Addendum shall control. Nevertheless, this Addendum is part of the Lease for all
purposes, and all references in the Lease to "this Lease" or similar statements
are intended to include reference to this Addendum.
Lessor and Lessee further agree as follows:
50. Property Description. The Premises consist of two parcels of land
located in Santa Xxxxx County, California which are not adjacent. One parcel is
referred to herein as "1205 Xxxxxxx" and the other parcel is referred to herein
as "1450 Xxxxxxx". The legal descriptions of the Premises are contained in
Exhibit A (1205 Xxxxxxx) and Exhibit B (1450 Xxxxxxx) attached hereto and
--------- ---------
incorporated herein by reference. For reference, 1205 Xxxxxxx includes the
property at 328 Xxxxxx and 340 Xxxxxx. The Premises are leased subject to all
matters of record and to all matters which an accurate survey or physical
inspection would reveal. Depending upon the exercise of certain options of
Lessee contained in Paragraph 51, the Premises may at a future date consist of
1205 Xxxxxxx or 1450 Xxxxxxx or both.
51. Term and Options to Extend.
51.1 1205 Xxxxxxx. The term of this Lease as it pertains to 1205
------------
Xxxxxxx begins on March 1, 2000 (the "Commencement Date") and ends October 30,
2011.
(a) Lessee shall have the option to extend the term of this Lease as
it pertains to 1205 Xxxxxxx from November 1, 2011 to October 30, 2016 by giving
Lessor written notice of exercise of its option no earlier than two (2) years
and no later than one (1) year prior to October 30, 2011.
(b) If Lessee duly exercises its option to extend contained in
paragraph (a) above, Lessee shall have the further option to extend the term of
this Lease as it pertains to 1205 Xxxxxxx from November 1, 2016 to October 30,
2021 by giving Lessor written notice of exercise of its option no earlier than
two (2) years and no later then one (1) year prior to October 30, 2016.
51.2. 1450 Xxxxxxx. The term of this Lease as it pertains to 1450
------------
Xxxxxxx begins on the Commencement Date and ends October 30, 2006.
(a) Lessee shall have the option to extend the term of this Lease
as it pertains to 1450 Xxxxxxx from November 1, 2006 to October 30, 2011 by
giving Lessor written notice of exercise of its option no earlier then two (2)
years and no later then one (1) year prior to October 30, 2006.
(b) If Lessee duly exercises its option to extend contained in
paragraph (a) above, Lessee shall have the further option to extend the term of
this Lease as it pertains to 1450 Xxxxxxx from November 1, 2011 to October 30,
2016 by giving Lessor written notice of exercise of its option no earlier than
two (2) years and no later then one (1) year prior to October 30, 2011.
(c) If Lessee duly exercises its option to extend contained in
paragraph (b) above, Lessee shall have the further option to extend the term of
this Lease as it pertains to 1450 Xxxxxxx from November 1, 2016 to October 30,
2021 by giving Lessor written notice of exercise of its option no earlier than
two (2) years and no later than one (1) year prior to October 30, 2016.
51.3 Conditions to Exercise of Options. Certain conditions to exercise
---------------------------------
of the foregoing options are setforth in paragraph 39 of the Lease.
30
51.4 Term. As used herein, "Term" includes any extensions of the term
----
of this Lease which are duly exercised by Lessee.
51.5 Miscellaneous. It is not necessary to exercise an available
-------------
extension option for 1205 Xxxxxxx or for 1450 Xxxxxxx in order to be able to
exercise an available extension option for the other. If this Lease expires as
to 1250 Xxxxxxx or 1450 Xxxxxxx but not the other, then (i) such expiration
shall not affect the provisions of this Lease as they pertain to the other
parcel, which provisions shall continue in full force and effect, subject to all
of the other terms and provisions of this Lease, and (ii) the Premises will be
deemed to consist only of the parcel (1205 Xxxxxxx or 1450 Xxxxxxx, as the case
may be) which continues to be subject to the terms of this Lease.
52. Base Rent.
52.1 Base Rent through September 30, 2001. The Base Rent for the
------------------------------------
Premises shall be payable beginning March 1, 2000 through the expiration or
earlier termination of this Lease. The Base Rent for the period between March 1,
2000 and September 30, 2001 is Two Hundred Sixty-Seven Thousand Forty Dollars
($267,040) per month, payable on the first day of each and every month beginning
on January 1, 2000, in advance.
52.2 Base Rent from October 1, 2001 through October 30, 2011. The Base
-------------------------------------------------------
Rent for the Premises for the period between October 1, 2001 and October 30,
2011 is Three Hundred Thirty-Nine Thousand Two Hundred Nine Dollars ($339,209 )
per month, payable in advance on the first day of each and every month beginning
on October 1, 2001, subject to adjustment in accordance with Paragraph 52.3.
However, if Lessee does not exercise its option contained in Paragraph 51.2(a)
to extend the Term with respect to 1450 Xxxxxxx to October 30, 2011, then the
Base Rent for the period of November 1, 2006 through October 30, 2011 will be
calculated solely with reference to 1205 Xxxxxxx and will be Three Hundred
Thirty-eight Thousand Seventy-Eight Dollars ($338,078) per month, payable in
advance on the first day of each month beginning November 1, 2006, subject to
further adjustment pursuant to Paragraph 52.3.
52.3 Adjustments to Base Rent.
------------------------
(a) On October 1 of each of the years 2002 through 2010 the Base Rent
for the Premises for the twelve (12) month period beginning on such date will
increase by three percent (3%) over the Base Rent for the prior twelve (12)month
period. For example, the monthly Base Rent for the twelve (12) month period
beginning October 1, 2002 will be $349,385.27 and the monthly Base Rent for the
twelve (12) month period beginning October 1, 2003 will be $359,866.83.
(b) However, if Lessee does not exercise its option contained in
Paragraph 51.2(a) to extend the Term with respect to 1450 Xxxxxxx to October 30,
2011, then the increases to Base Rent called for by paragraph (a) above for the
twelve (12) month periods beginning October 1, 2006 and continuing through
October 30, 2010 shall be calculated as if 1450 Xxxxxxx had never been part of
the Premises. By way of example, the Base Rent for the twelve (12) month period
beginning October 1, 2006 would be the Base Rent which would have been payable
for the prior twelve (12) month period with respect to 1205 Xxxxxxx alone,
increased by three percent (3%) per annum. The Base Rent which "would have been
payable with respect to 1205 Xxxxxxx" is eighty-five and ninety-seven hundredths
percent (85.97%) of the Base Rent which was payable with respect to the Premises
(including both 1205 Xxxxxxx and 1450 Xxxxxxx) with respect to such period.
A matrix showing the adjusted Base Rent through October 30, 2011 is
contained on Schedule 1 attached hereto and Incorporated herein by reference.
52.4 Base Rent During Certain Option Periods. The Base Rent payable
---------------------------------------
with respect to the Premises foreach option period described in Paragraphs 51.1
(a) and (b) and 51.2 (b) and (c) shall be ninety-five percent (95%) of the Fair
Rental Value of the Premises which are covered by this Lease during such option
periods. "Fair Rental Value" for purposes of this Lease means the greater of (1)
the Base Rent for the Premises subject to the option as of the date which is
immediately prior to the first day of the option period and (ii) the prevailing
rental rate for premises in the vicinity of the Premises subject to the option
which are zoned and
31
improved in a manner similar to the Premises as of one (1) year prior to the
first day of the option period. Regardless of whether clause (i) or (ii) is
chosen, the Base Rent for each option period shall be increased on each
anniversary of the first day of the option period by an amount equal to three
percent (3%) of the Base Rent for the prior year. In the event that Lessor and
Lessee cannot agree in writing on the Fair Rental Value within thirty (30) days
after exercise of any option by Lessee, the Fair Rental Value shall be
determined in accordance with Paragraph 61.
53. Use. The Agreed Use of the Premises is the uses and purposes for
which the Premises are being used on the date hereof by Lessee, including the
design, development and manufacturing of military vehicles and general research
and development.
54. Condition of Property. Lessor and Lessee acknowledge that because
Lessee has been a lessee of the Premises for many years and Lessor just acquired
the Premises, Lessee has much greater knowledge of the Premises, including the
improvements thereon, than does Lessor. Accordingly, Lessee further acknowledges
that Lessor is making no representation or warranty whatsoever, express or
implied, with respect to the Premises, any improvements thereon, the condition
thereof or the compliance thereof with Applicable Law. Neither Lessor nor Lessee
has any obligation to the other to disclose any fact or condition with respect
to the Premises which such party discovered or may have discovered in connection
with its investigation or occupancy of the Premises prior to the date hereof.
55. Access and Cooperation Regarding Hazardous Substances.
(a) Lessee and FMC Corporation ("FMC"), the prior owner of the
Premises, have been named as a dischargers of Hazardous Substances at the
Premises and adjacent properties by the Regional Water Quality Control Board,
San Francisco Bay Region ("RWQCB") pursuant to the "RWQCB's Site Cleanup
Requirements Order No. 96-024 (the "RWQCB Order). In addition, Lessee and FMC
have entered into a Corrective Action Consent Agreement, dated January 2, 1998,
with the Department of Toxic Substances Control ("DTSC") relating to
investigation and remediation of Hazardous Substances at the Premises and
adjacent properties (the "Consent Agreement"). The RWQCB Order and the Consent
Agreement address certain contaminants detected in soil and groundwater-at the
Promises and adjacent properties ("Existing Contamination"). Nothing in this
Lease shall alter either Lessee's or FMC's obligations under the RWQCB Order or
Consent Agreement, as such documents may be supplemented or amended, or under
any other order or environmental requirement to which Lessee and FMC are
subject. Lessee and FMC shall remain responsible for investigation and
remediation of all Existing Contamination to the extent they were responsible
prior to the date hereof. Lessee acknowledges that FMC has indemnified Lessor
against certain losses and liabilities arising from the Existing Contamination
(the "FMC Indemnity"), as set forth in that certain Right of Entry Agreement and
Easement, between FMC and Lessor, dated December 21, 1999 (the "Right of Entry
Agreement"), and is familiar with the terms and conditions applicable to the FMC
Indemnity. Lessee hereby agrees that it shall conduct its operations on the
Premises in accordance with the FMC Indemnity and the Right of Entry Agreement,
and shall ensure that Lessor's rights and obligations under the FMC Indemnity
and the Right of Entry Agreement are not adversely impacted by Lessee's
operations on and/or use of the Premises. Lessor shall use commercially
reasonable efforts to ensure that FMC's activities will be conducted in a manner
which does not unreasonably interfere with the activities of Lessee on the
Premises.
(b) Investigation and Remediation of Hazardous Substances. Upon
discovery of Hazardous Substances at or on the premises which were released,
used or brought onto the Premises by Lessee (or for Lessee by any third party)
after December 21, 1999, Lessee shall have the option of addressing the
resulting contamination itself, as set forth in Paragraph 6.2(c) of the Lease.
----------------
Lessee must notify Lessor in writing of its intent to do so within 30 days of
such discovery (a "Lessee Remediation Notice"), If Lessee timely delivers the
Lessee Remediation Notice, it shall (i) act promptly to investigate Hazardous
Substance issues, (ii) cooperate with Lessor and promptly furnish to Lessor
copies of the results of all tests performed by or for Lessee and (iii) promptly
remediate any such Hazardous Substances in accordance with applicable law and
this Lease. If no Lessee Remediation Notice is provided in timely fashion to
Lessor, Lessor shall have the option of addressing the resulting contamination
itself, in which case Lessee agrees to reimburse Lessor for all reasonable costs
and expenses incurred by Lessor to investigate, remediate, remove and dispose of
Hazardous Substances released, used or brought onto the Premises by Lessee (or
for Lessee by any third party) after December 21, 1999, and to restore the
Premises
32
following such activities. In the event Lessor elects to address the resulting
contamination itself, it shall do so In a manner which does not unreasonably
interfere with the activities of Lessee on the Premises. If Lessor does not
elect to address the resulting contamination, Lessee shall retain responsibility
for addressing the contamination, as set forth in Paragraph 6.2(c) of the Lease.
----------------
(c) Lessee Indemnification. Lessee and its successors and assigns shall
indemnify, defend by counsel reasonably acceptable to Lessor and hold Lessor,
its successors, assigns, agents, employees, lenders, and other tenants, if any,
harmless from and against any loss, liability, claim, cost, damage, or expense,
including but not limited to lost rents, judgments, penalties, settlement
payments, attorneys' fees and consultants' fees arising out of or involving any
Hazardous Substances released, used or brought onto the Premises by or for
Lessee or any third party after the Commencement Date. Lessee's obligations
shall include, but not be limited to, the effects of any contamination, whether
on the Premises or migrating off the Premises, injury to person, property or the
environment, created or caused by Lessee after the Commencement Date, and the
cost of investigation, removal, disposal, remediation, restoration and/or
abatement, and shall survive the expiration or termination of this Lease. No
termination or expiration of this Lease or any agreement entered into by Lessor
and Lessee shall release Lessee from its obligations under this Lease with
respect to such Hazardous Substances unless specifically so agreed by Lessor in
writing at the time of such agreement.
(d) Remedial Facilities Easement. Lessee acknowledges that, in connection
with the Right of Entry Agreement, FMC and Lessor have entered into that certain
Easement Agreement and Memorandum of Right of Entry, dated December 21, 1999,
granting FMC various easements for remediation facilities on Premises (the
"Remedial Facilities Easement'). Lessee consents to and subordinates its
interest under this Lease to the easements granted under the Remedial Facilities
Easement. In addition, in the event additional investigation or remediation
facilities are required in the future, Lessee hereby consents to the
installation and operation of such facilities and agrees to subordinate its
interest under this Lease to any subsequent easement granted to FMC for such
purpose.
(e) Utilities Easement. Lessee acknowledges that, in connection with the
Purchase Agreement, FMC and Lessor have entered into that certain Temporary
Easement Agreement and that certain Easement Agreement, each dated December 21,
1999, granting FMC various utility easements on Premises (the "Utilities
Easements"). Lessee consents to and subordinates its interest under this Lease
to the easements granted under the Utilities Easement.
56. Notice of Sale by Lessor; Exemption of Lessee from Paying Certain
Property Tax Increases Caused by a Transfer. Lessor may transfer all or part of
its fee interest in the Premises in a transaction which will cause the ad
valorem property taxes on the Premises to increase. If so, Lessor shall so
notify Lessee at least six (6) months prior to the date of such transfer. If
Lessor does not give such notice in timely fashion, then Lessee shall not have
the obligation to pay any increase in such ad valorem property taxes caused by
the transfer for the period of time (i) beginning on the earlier of the date
such notice is given and the date of the transfer and (ii) ending six (6) months
later. The provisions of the foregoing sentence shall be the only remedy to
Lessee should Lessor not give timely notice of its intent to transfer.
57. Lessee Right to Assign or Sublet Following a Breach or Default. If
Lessor elects pursuant to Paragraph 13.2(b) of the Lease to continue the Lease
in effect following a Breach or Default by Lessee, Lessee shall have the right
to assign its interest in the Lease or sublet the Premises, or both, with the
consent of Lessor, which consent shall not be unreasonably withheld.
58. Lender Protection. Notwithstanding the provisions of Paragraph 13.6 of
the Lease, in the event that Lessee has notified Lessor pursuant to such
Paragraph of an obligation which Lessor must fulfill and, at that time, Lessor
has a lender with a security interest in the Premises and Lessee has been
notified of the existence of such security interest, then such lender shall have
a reasonable period of time after receiving notice from Lessee of such
obligation within which to perform or cause to be performed such obligation ,
including time to foreclose upon the Premises if the nature of the obligation is
such that possession of the Premises is reasonably necessary to perform such
obligation.
33
59. Condemnation. Notwithstanding the provisions of Paragraph 14 of the
Lease, (i) Lessee shall be entitled to recover compensation for its relocation
expenses, lost of business goodwill and/or Trade Fixtures only to the extent
that such recovery does not reduce the compensation which Lessor is entitled to
recover on account of such condemnation, (ii) all Alterations and Utility
Installations made to the Premises prior to the date hereof shall, for purposes
of any condemnation, be deemed to be owned solely by Lessor, (iii) all
Alterations and Utility Installations made to the Premises after the date hereof
shall, for purposes of any condemnation, be deemed to be owned solely by Lessee
and (iv) to the extent Lessor has any obligation to repair damage caused by any
condemnation, such obligation shall be limited to the proceeds recovered by
Lessor as a result of the condemnation.
60. No Obligations for Prior Lease. Immediately prior to the date hereof
Lessee was a party to an Amended and Restated Lease Agreement dated as of
October 6, 1997 between FMC Corporation, as landlord, and Lessee, as tenant (as
amended to date, the "Prior Lease"). The interest in the Prior Lease of FMC
Corporation was assigned to Lessor. Lessee and Lessor hereby terminate the Prior
Lease. Except as provided below, Lessee acknowledges that the Prior Lease has
terminated, that neither Lessor nor FMC has any responsibility whatsoever for
the obligations of the landlord thereunder, and that the Prior Lease creates no
obligations between Lessor and Lessee. Without limiting the generality of the
foregoing, Lessee acknowledges that FMC has no obligation under paragraph 23 of
the Prior Lease. Notwithstanding the foregoing, Lessor retains and reserves the
right to obtain reimbursement of the first installment of 1999-2000 real estate
taxes for APN 000-00-000 and 000-00-000 from Lessee under the Prior Lease. Also,
Lessee shall be responsible for the second installment of real estate taxes for
APN 000-00-000, subject to such credit as Lessor receives from FMC Corporation.
Last, Lessee shall pay $1,530.77 which constitutes 0.78% of the second
installment of 1999-2000 taxes for APN 000-00-000 unless it has already paid the
same.
61. Arbitration of Fair Rental Value. In the event the Fair Rental Value is
to be determined in accordance with this Paragraph 61, the judgment for the
award rendered in any arbitration may be entered in any court having
jurisdiction and shall be final and binding between the parties. The arbitration
shall be conducted and determined in the City and County of Santa Clara,
California, in accordance with the then prevailing rules of the American
Arbitration Association or its successor for arbitration of commercial disputes,
except to the extent that the procedures mandated by such rules shall be
modified as follows:
(a) Either party may make demand for arbitration in writing, specifying
therein the name and address of the person to act as the arbitrator on its
behalf. The arbitrator shall be qualified as a real estate appraiser familiar
with the fair market rent of first class, improved industrial space in the Santa
Xxxxx/San Xxxx area. Within fifteen (15) days after the service of the demand
for arbitration, the party not initiating arbitration shall give notice to the
other, specifying the name and address of the person designated by it to act as
arbitrator on its behalf, who shall be similarly qualified. If the party not
initiating arbitration fails to notify the other party of the failing party's
appointment of its arbitrator within the time specified above, then the
arbitrator appointed by the party initiating arbitration shall be the arbitrator
to determine the issue, shall determine Fair Rental Value within fifteen (15)
days after his appointment and shall promptly notify all parties of his
decision.
(b) In the event that two arbitrators are chosen pursuant to paragraph (a)
above, the arbitrators so chosen shall, within fifteen (15) days after the
second arbitrator is appointed determine the Fair Rental Value. If they are
unable to agree within such fifteen (15) day period, they shall appoint a third
arbitrator who shall be a competent and impartial person with qualifications
similar to those required of the first two arbitrators. If they cannot agree
upon such appointment within seven (7) days after the expiration of the fifteen
(15) day period, the third arbitrator shall be selected by the parties
themselves, if they can agree within a further period of fifteen (15) days. If
they cannot, then either party, on behalf of both, may request appointment of
such a qualified person by the then chief judge of the United States District
Court having jurisdiction over the City of Santa Xxxxx, acting in his private
and not in his official capacity, and the other party shall not raise any
question as to such judge's full power and jurisdiction to entertain the
application for and to make the appointment. The three arbitrators shall decide
the dispute, if it has not been previously resolved, by following the procedures
set forth below.
(c) Where an issue cannot be resolved by agreement between the two
arbitrators selected by Lessor and Lessee, or settlement between the parties
during the course of arbitration, the issue shall be resolved by the three
arbitrators within fifteen (15) days of the appointment of the third arbitrator
in accordance with the following procedure. The arbitrator selected by each of
the parties shall state in writing his determination of the Fair
34
Rental Value supported by the reasons therefore with counterpart copies to each
party. The arbitrators shall arrange for a simultaneous exchange of such
proposed resolutions. The role of the third arbitrator shall be to select which
of the two proposed resolutions most closely approximates his determination of
Fair Rental Value. The third arbitrator shall have no right to propose a middle
ground or any modification of either of the two proposed resolutions. The
resolution he chooses as most closely approximating his determination shall
constitute the decision of the arbitrators and be final and binding upon the
parties.
(d) In the event of a failure; refusal or inability of any arbitrator to
act, his successor shall be appointed by him, but in the case of the third
arbitrator, his successor shall be appointed in the same manner as provided for
appointment of the third arbitrator. The arbitrators shall decide the issue
within fifteen (15) days after the appointment of the third arbitrator. Any
decision in which the arbitrator appointed by Lessor and the arbitrator
appointed by Lessee concur shall be binding and conclusive upon the parties.
Each party shall pay the fee and expenses of its respective arbitrator and both
shall share the fee and expenses of the third arbitrator, if any, and the
attorneys' fees and expenses of counsel for the respective parties and of
witnesses shall be paid by the respective party engaging such counsel or calling
such witnesses. The arbitrators shall have the right to consult experts and
competent authorities to obtain factual information or evidence pertaining to a
determination of Fair Rental Value, but any such consultation shall be made in
the presence of both parties with full right on their party to cross-examine.
The arbitrators shall render their decision and award in writing with
counterpart copies to each party. The arbitrators shall have no power to modify
the provisions of this Lease.
62. Improvement Allowance. On or before January 1, 2005, Lessor will
provide to Lessee an improvement allowance of up to $545,680 to enable Lessee to
improve the Premises by constructing Alterations or other permanent
Improvements. This improvement allowance will be paid to Losses by Lessor upon
receipt by Lessor of reasonable evidence that costs equal to the amount of the
improvement allowance have been incurred by Lessee for the foregoing purposes.
At Lessee's request, the amount of the improvement allowance will be paid
directly by Lessor to the contractors and others constructing the Alterations or
other permanent improvements.
63. Covenant to Restrict Use of Property: Environmental Restriction. Lessee
acknowledges that the Premises are subject to that certain Covenant to Restrict
Use of Property: Environmental Restriction, dated August 1, 1996 and recorded on
October 1, 1996 in the official records of Santa Xxxxx County, California as
document number 13466452 (the "Covenant to Restrict Use"). Lessee agrees to
comply with all restrictions on use of the Premises set forth in the Covenant to
Restrict Use. Pursuant to Section 3.04 of the Covenant to Restrict Use, the
following statement is hereby incorporated into this Lease: The land described
herein contains hazardous substances, as defined in Section 26316 of the
California Health and Safety Code, and petroleum hydrocarbons, and is subject to
the requirements of the Water Code and (the Covenant to Restrict Use), which
imposes certain covenants, conditions and environmental restrictions pursuant to
California Civil Code Section 1471 on use of the property described herein. The
provisions of the Covenant to Restrict Use are incorporated herein and made a
part hereof as if set forth in full. This statement is not a declaration that
any hazard exists.
64. Certain Subletting.
(a) In the event Lessee subleases fifty percent (50%) or more of the
leaseable area in that part of the Premises commonly known as "1205 Xxxxxxx"
(not including the property commonly known as "328 Xxxxxx" or "340 Xxxxxx"), or
subleases fifty percent (50%) or more of the rentable area in that portion of
the Promises commonly known as "328 Xxxxxx and 340 Xxxxxx, then Lessor shall
have the right to terminate this Lease as to such portion of the Premises, upon
thirty (30) days prior written notice to Lessee. The portion of the Premises
constituting each of said areas (that is,. "1205 Xxxxxxx" and "328/340 Brokawn")
is not precise, and Lessor and Lessee agree that they will act in good faith and
on a reasonable basis to determine how to separate these two portions of the
Premises should the need arise. In the event they cannot reach agreement within
thirty (30) days after Lessor's notice above, they shall resolve the dispute in
accordance with the arbitration procedures of Paragraph 61.
------------
(b) In the event Lessee wishes to sublet any portion of the Premises it
shall first notify Lessor of (i) the proposed sublessee, (ii) the rent to be
charged and the other material terms of the proposed subletting and (iii) the
space to be sublet. In the event that the proposed subletting, if consummated,
would result in Lessee having thirty percent (30%) or more of the rentable
square footage of the Premises subject to subleases, then Lessor shall
35
have the right to terminate the Lease as to that portion of the Premises then
sublet and then proposed to be sublet, and thus "recapture" such portion, by
notifying Lessee to that effect within twenty (20) days after receiving Lessee's
notice. If Lessor so notifies Lessee, then effective thirty (30) days after the
receipt of the notice by Lessee, this Lease shall terminate as to said portion
of the Premises, Lessee shall deliver the same to Lessor in the condition
required upon termination of this Lease and Lessor shall have the right to use,
occupy and lease the same. In such event, Lessee shall provide Lessor and its
successors, assigns and lessees with reasonable access to said portion of the
Premises and with reasonable parking, and Lessor and Lessee shall cooperate with
one another to separate said portion of the Premises from that portion retained
by Lessee.
Notwithstanding the foregoing, in the event Lessee ever
proposes to sublet thirty percent (30%) or more of the rentable square
footage of the Promises ("30% Premises") in a single sublease and Lessor,
pursuant to its right set forth above, elects not to terminate the Lease as to
---
the 30% Premises, then if Lessee enters into such sublease the sublease of the
30% Premises shall not be deemed to be an outstanding sublease for purposes of
Lessor's right to recapture set forth above. Thus, if such sublease is entered
into, Lessor shall not have the right to terminate such sublease during its term
by reason of the lessor's rights in this Paragraph (b).
(c) In the event Lessor terminates this Lease as to a portion
of the Premises, as provided above, Lessor and Lessee shall treat such
termination as if this Lease had terminated at the end of the term as to such
portion, and thereafter the Base Rent and other charges hereunder shall be
prorated on the basis that the rentable area of that portion of the Premises
which is not terminated bears to the rentable area of the entire Premises on the
date hereof. If Lessor elects to so terminate, it shall not charge Lessee any
additional sum for so doing.
(d) In the event Lessee elects to sublet all or a portion of
the Premises for an amount which exceeds the amount of the Base Rent and Real
Property Taxes fairly allocable to such portion (the amount fairly allocable
shall be the pro rate portion of the Base Rent, based on the square footage
sublet), then Lessee shall pay to Lessor sixty percent (60%) of the amount by
which the rent and other consideration which Lessee receives on account of the
subletting exceeds the sum of (i) the Base Rent and other charges Lessee pays
Lessor for such portion and (ii) Lessee's reasonable out-of-pocket expenses of
subletting.
65. Lessor Rights on Assignment. In the event Lessee wishes to
assign its interest in the Lease, it shall first notify Lessor of (i) the
proposed assignee, (ii) the material terms of the proposed assignment, including
the consideration therefore, and (iii) the effective date proposed for the
assignment. Lessor shall have the right to terminate this Lease, and thus
"recapture" the Premises, by notifying Lessee to that affect within twenty (20)
days after receiving Lessee's notice. If Lessor so notifies Lessee, then
effective thirty (30) days after the receipt of the notice by Lessee, this Lease
shall terminate and Lessee shall deliver the Premises to Lessor in the condition
required upon termination of this Lease. Notwithstanding the foregoing
provisions of this Paragraph 65, Lessor shall not have the right to terminate
this Lease or "recapture" the Premises in the event Lessee's assignment of this
Lease is pursuant to a merger of Lessee or the sale by Lessee of all or
substantially all of it assets.
In the event Lessor does not exercise its option to terminate
the Lease and the Premises, and Lessee assigns its interest in the Lease as
proposed in its notice to Lessor, then Lessee shall pay to Lessor, when it
receives the same, sixty percent (60%) of the amount by which the rent and other
consideration which Lessee receives on account of the assignment exceeds the sum
of (i) the Base Rent and other charges Lessee pays Lessor under the Lease and
(iii) Lessee's reasonable out-of-pocket expenses incurred in connection with the
assignment. In the event Lessee receives a lump sum payment on or about the date
of the assignment, for purposes of determining the amount in clause (i) above,
the Base Rent and other charges payable under the Lease shall be discounted to
present value in the manner contemplated in Section 13.2(a) of the Lease.
---------------
66. Financial Reporting. Concurrently herewith Lessee has
-------------------
delivered to Lessor a letter in the form of Exhibit C sent to Lessor by United
---------
Defense, Inc. ("UDI"), which controls United Defense, L.P. No later than April 1
of each year during the Term, beginning with the year 2001, Lessee shall deliver
to Lessor one of the following: (i) a letter from the chief financial officer of
UDI directed to Lessor in the form of Exhibit C but with respect to its fiscal
---------
year most recently ended, to the effect set forth in Exhibit C for such year; or
---------
(ii) a balance sheet, income statement and statement of changes in financial
condition for Lessee for the fiscal year of Lessee most recently ended,
unaudited but certified by Lessee's chief financial officer as true, correct and
complete in all material respects as of such date.
36
67. Certain Distributions to UDI. Lessee shall promptly
----------------------------
notify Lessor if, at any time during the Term of the Lease, Lessee transfers
twenty-five percent (25%) or more (determined by value) of its assets to UDI or
an entity controlled by or under common control with UDI. Within forty-five (45)
days thereafter Lessor shall have the right by notice to Lessee and UDI,
67.1 if at that time UDI is a corporation which is filing
public reports under Section 12(g) of the Securities Exchange Act of 1934, then
to cause UDI to become the Lessee under this Lease and to assume all of the
obligations of Lessee hereunder in a form, and by documents, reasonably
acceptable to Lessor. If Lessor makes the election under this Section 67.1,
------------
Lessor shall release United Defense, L.P. from all of its obligations under the
Lease from and after the date when UDI becomes the Lessee hereunder; and
67.2 if at that time UDI is not a corporation which is filing
public reports under Section 12(g) of the Securities Exchange Act of 1934, then
to cause UDI to become an additional Lessee hereunder, having joint and several
liability with United Defense, L.P., and to cause UDI to assume all of the
obligations of Lessee hereunder in a form, and by documents, reasonably
acceptable to Lessor. If Lessor makes the election under this Section 67.2,
------------
United Defense, L.P. shall not be released from any of its obligations
hereunder.
No distribution of assets from Lessee to UDI or an entity
controlled by or under common control with UDI shall give Lessor any right to
"recapture" the Premises as provided in Paragraph 65 above.
IN WITNESS WHEREOF, Lessor and Lessee have executed this
Addendum as of the date first above written.
"Lessor" "Lessee"
---------------------------------------------- ---------------------------------
LNR SANTA XXXXX I, LLC, UNITED DEFENSE, L.P.,
a Delaware limited liability company a Delaware limited partnership
---------------------------------------------- ---------------------------------
by: LEGEND OAKS LIMITED PARTNERSHIP,
a Delaware limited partnership,
its member
---------------------------------------------- ---------------------------------
by: LENNAR LEGEND OAKS HOLDINGS, INC.,
a Colorado corporation, by: /s/ Xxxxx X. Xxxxxx
----------------------------
its general partner
Xxxxx X. Xxxxxx
Vice President and General
Manager
---------------------------------------------- ---------------------------------
by: /s/ (illegible)
------------------------
Vice President
---------------------------------------------- ---------------------------------
37
Exhibit A
(1205 Xxxxxxx)
REAL PROPERTY in the City of Santa Xxxxx and the City of San Xxxx,
County of Santa Xxxxx, State of California, described as follows:
ADJUSTED PARCEL A
-----------------
Parcel One:
Beginning at the Intersection of the Southeasterly line of Xxxxxx Road
with the Northeasterly line of that certain 36.481 acre tract of land
described in the Deed from Xxxx Xxxx Xxxxxxx to Southern Pacific
Company, dated November 5, 1925 and recorded November 9, 1925 in
Volume 192 of Official Records, page 370; thence along the
Northeasterly line of said 36,481 acre tract S. 57(degrees) 34' E. 660
feet; thence leaving said Northeasterly line and running S.
77(degrees) 22' 15" E. 295.14 feet to a point on a line parallel with
and distant Northeasterly at right angles 100 feet from said
Northeasterly line of said 36,481 acre tract; thence along said
parallel lines 57(degrees) 34' E. 534.59 feet to a point on the
boundary line common to the cities of Santa Xxxxx and San Xxxx; thence
along said boundary line N. 0(degree) 05' W. 757.38 feet to a point on
the Southwesterly line of Xxxxxxx Avenue as established by Deed from
City of San Xxxx to City of Santa Xxxxx, dated June 24, 1947 and
recorded March 3, 1948 in Book 1575 of Official Records, page 78;
thence along said Southwesterly line of Xxxxxxx Avenue with the
Southeasterly line of Xxxxxx Road; thence along said line of Xxxxxx
Road S. 36(degrees) 49' W. 740.85 feet to the point of beginning and
being a portion of the Stockton Rancho.
Together with Parcel Two, described as follows:
All that certain tract of land situated in the Santa Xxxxx County,
California, and being a portion of that certain Parcel I and Parcel 2
conveyed by the City of San Xxxx, a municipal corporation, to the City
of Santa Xxxxx, a municipal corporation, by Deed recorded on October
19, 1956 in Book 3636 of Official Records, page 632 and 633 therein,
Records of Santa Xxxxx County, California, and being more particularly
described as follows:
Beginning at the point of Intersection of the Northeasterly line of
Xxxxxxx Avenue 100 feet wide, as established by a deed from the City
of San Xxxx, a municipal corporation, to the City of Santa Xxxxx, a
municipal corporation, dated June 24, 1947 and recorded March 3, 1948
in Book 1575 of Official Records, page 78, Santa Xxxxx County Records,
with the Southeasterly line of Xxxxxx Xxxx 00 feet wide; thence
running along said Northeasterly line of Xxxxxxx Avenue S.
57(degrees)39' 16" E. 1267.41 feet to the most Southerly corner of
said Parcel 2; thence leaving said Northeasterly line and running
along the Easterly line of said Parcel 2, N. 0(degree)46' 02" W.
530.58 feet to a point; thence N. 57" 39' 16" W. and parallel with
said Northeasterly line of Xxxxxxx Avenue 279.42 feet to beginning of
a circular curve; thence along said circular curve to the left,
tangent to preceding course with a radius of 900 feet, through a
central angle of 30(degrees)an arc distance of 471.24 feet to end of
curve; thence N. 87(degrees)39' 16 W. 269.78 feet to a point on the
said Southeasterly line of Xxxxxx Road; thence S. 36(degrees) 44' 2O"
W. along the last said Southeasterly line of 189.51 feet to the place
of beginning.
1
Exhibit A (continued)
TOGETHER WITH Parcel Three, described as follows:
Beginning at the Intersection of the Southwesterly line of Xxxxxxx
Avenue, as established by Deed from City of San Xxxx, to City of Santa
Xxxxx, dated June 24, 1947 and recorded March 3, 1948 in Book 1575 of
Official Records, page 78, with the Southeasterly line of Xxxxxx Road;
thence along the Southeasterly line of Xxxxxx Road N. 36(degrees)44'
20" E. 100.28 feet to a point on the Northeasterly line of Xxxxxxx
Avenue as described above; thence S. 57(degrees)34' E. 936.62 feet to
a point; thence S. 0(degree)05" E. 118.59 feet to a point on the
Southwesterly line of Xxxxxxx Avenue as described above; thence N.
57(degrees)34' W. 1007.90 feet to the point of beginning.
EXCEPTING THEREFROM that portion of land quitclaimed to the City of
Santa Xxxxx by Deed recorded May 9, 1968 in Book 8117, page 389,
Official Records, and described as follows:
Beginning at a point where the Southeasterly line of Xxxxxx Xxxx 00
feet in width, intersects the Southerly line of that street designated
as proposed Xxxxxxx Avenue 100 feet in width, on that certain Record
of Survey recorded in Book 116 of Maps, at page 18 therein, in the
Office of the County Recorder, Santa Xxxxx County, California; thence
from said point of beginning S. 87(degrees) 34' E. 17.59 feet along
the aforesaid Southerly line of proposed Xxxxxxx Avenue to a point;
said point being the beginning of a 33.37 foot radius curve to the
left from a tangent bearing N. 87(degrees) 34' W; thence from said
point following said curve through a central angle of 55(degrees) 36'
08" an arc distance of 32.38 feet to a point on the aforesaid
Southeasterly line of Xxxxxx Road; thence N. 36(degrees) 49' 52" E.
17.59 feet, more or less, along said Southeasterly line of Xxxxxx Road
to the point of beginning.
ALSO EXCEPTING THEREFROM that portion of land granted to the City of
Santa Xxxxx by Deed recorded April 4,1995 in Book N810, page 1762,
Official Records, and described as follows:
Being a portion of that certain Parcel 2 conveyed by the City of San
Xxxx, a municipal corporation to the City of Santa Xxxxx, a municipal
corporation, by Deed recorded on October 19, 1956 in Book 3636 of
Official Records, page 632 and 633 therein, Records of Santa Xxxxx
County, California. and being more particularly described as follows:
Commencing at a point where the Southeasterly line of Xxxxxx Xxxx 00
feet in width, intersects the Southerly line of that street designated
as proposed Xxxxxxx Avenue 100 feet in width, on that certain Record
of Survey recorded in Book 116 of Maps, at page 18 therein, in the
Office of the County Recorder, Santa Xxxxx County, California, said
point also being the Northwesterly corner of the portion of land
quitclaimed to the City of Santa Xxxxx by Deed recorded May 9, 1968 in
Book 8117, page 89, Official Records.
Thence South 87(degrees) 35' 06" East 17.59 feet along said Southerly
line of that street designated as proposed Xxxxxxx Avenue to the most
Easterly corner of said portion of land quitclaimed to the City of
Santa Xxxxx and the true point of beginning;
Thence continuing along said Southerly line of that street designated
as proposed Xxxxxxx Avenue the following three courses:
1) South 87(degrees)39'16" East 320.80 feet;
2) Along a curve to the right with a radius of 800 feet through a
central angle of 30(degrees)00' 00" for an arc length of 418.88 feet;
2
3) South 57(degrees)35' 06" East 18.64 feet to the corporate line
dividing the City of Santa Xxxxx and the City of San Xxxx;
3
Exhibit A (continued)
Thence South 00(degrees) 00' 50" East 13.03 feet along said corporate
line to a point 11.00 feet, measured at right angles from said
Southerly line of that street designated as proposed Xxxxxxx Avenue;
Thence Westerly along a line 11,00 feet, measured at right angles from
said Southerly line of that street designated as proposed Xxxxxxx
Avenue the following three courses:
1) North 57" 35' 06" West 25.63 feet;
2) Along a curve to the left with a radius of 789.00 feet through a
central angle of 30(degrees) 00' 00" for an arc length of 413.12 feet;
3) North 87(degrees) 35' 06" West 197.10 feet;
Thence South 86(degrees) 08' 11" West 18.29 feet to a point 13.00 feet
measured at right angles from said Southerly line of that street
designated as proposed Xxxxxxx Avenue;
Thence North 87(degrees) 35' 06" West 109.89' along a line 13.00 feet,
measured at right angles from said street designated as proposed
Xxxxxxx Avenue;
Thence along a curve to the left with a radius of 42.00 feet through a
central angle of 55(degrees) 34' 44" for an arc length of 40.74 feet
to said Southeasterly line of Xxxxxx Road;
Thence North 36(degrees) 50' 10" East 20.31 feet along said
Southeasterly line of Xxxxxx Road to the Southwesterly corner of said
portion of land quitclaimed to the City of Santa Xxxxx;
Thence Easterly along said portion of land quitclaimed to the City of
Santa Xxxxx along a curve to the right with a radius of 33.37 feet
through a central angle of 55(degrees) 34' 44" for an arc length of
32.37 feet to the true point of beginning.
ALSO EXCEPTING THEREFROM Parcel B, described as follows:
Commencing at the intersection of the Southeasterly line of Xxxxxx
Road with the Northeasterly line of that certain 36.481 acre tract of
land described in the Deed from Xxxx Xxxx Xxxxxxx to Southern Pacific
Company, dated November 5. 1925 and recorded November 9, 1925 in
Volume 192 of Official Records, page 370, thence along the
Northeasterly line of said 36.481 acre tract South 57(degrees) 34' 50"
East 660.00 feet; thence leaving said Northeasterly line and running
South 77(degrees) 23' 05" East 295.15 feet to a point on a line
parallel with and distant Northeasterly at right angles 100 feet from
said Northeasterly line of said 36.481 acre tract; thence along said
parallel line South 57(degrees) 34' 50" East 5.36 feet to the True
Point of Beginning;
Thence North 32(degrees)25'09" East 250.12 feet;
Thence North 57(degrees)34'51" West 105.40 feet;
Thence North 8(degrees)45'53" East 270.00 feet;
Thence North 82(degrees)20'17" East 219.28 feet;
Thence South 57(degrees)34'51" East 87.51 feet;
Thence North 32(degrees)25'09" East 444.46 feet to a Point on the
Southwesterly line of Xxxxxxx Avenue, 100 feet wide;
4
EXHIBIT A (continued)
Thence South 57(degrees)34'50" East 122.56 feet along said
Southwesterly line to a point on the easterly line of Parcel 2 as
described in that certain Deed recorded on October 19, 1956 in Book
3636 of Official Records, page 632 and 633, Records of Santa Xxxxx
County;
Thence along said Easterly line South 0(degrees)40'47" East 411.18
feet to the most Southerly corner of said Parcel 2;
Thence North 57(degrees)34'50" West 330.89 feet along the
Southwesterly line of said Parcel 2 to the boundary line common to the
cities of Santa Xxxxx and San Xxxx;
Thence South 0(degrees)05'36" East 875.90 feet along said common
boundary line to a point on said line parallel with and distant
Northeasterly at right angles 100 feet from said Northeasterly line of
said 36.481 acre tract;
Thence North 57(degrees)34'50" West along said parallel line 520.73
feet to the True Point of Beginning.
APN: 230-46-X053, 032
ARB: 000-00-000,032
5
Exhibit B
(1450 Xxxxxxx)
REAL PROPERTY in the City of Santa Xxxxx, County of Santa Xxxxx, State
of California, described as follows:
PARCEL ONE:
All of Lots 2, 3, 4 and 5, as shown on that certain Map entitled Tract
No. 4460, which Map was filed for record in the office of the Recorder
of the County of Santa Xxxxx, State of California on March 8, 1968, in
Book 234 of Maps page(s) 27.
Excepting therefrom those portions of Tract No. 4460, the map of which
is filed in Book 234 of Maps, page 27, Santa Xxxxx County Records,
being more particularly described as follows:
PARCEL A:
Beginning at the South corner of Lot 2, said corner being a point on
the Northwesterly line of Xxxx Street as shown on said map; thence
along to last named line, North 33(0) 28' 10" East 45.58 feet thence
along the are of a tangent curve to the left with a radius of 50.00
feet through a central angle of 43(0) 20' 30" an arc distance of 37.8
feet to a point of reverse curvature; thence along an arc of a curve
to the right with a radius of 60.00 feet through a central angle of
14(0) 05' 39" an arc distance of 14.76 feet to a point of cusp; thence
leaving said Northwesterly line of Xxxx Street and running in a
Southwesterly direction along an arc of a curve to the left, the
tangent of which bears South 62(0) 43' 01" West, with a radius of
60.00 feet through a central angle of 72(0) 35'21" an arc distance of
76.015 feet to a point of reverse curvature; thence along an arc of a
curve to the right with a radius of 50.00 feet through a central angle
of 28(0) 12' 49" an arc distance of 24.62 feet to the intersection
thereof with the Southwesterly line of said Lot 2; thence along the
last named line, South 56(0) 31' 50" East 1.73 feet to the point of
beginning, containing 0.037 of an acre and being a portion of said Lot
2.
PARCEL B:
Beginning at the South corner of Lot 2, said corner being a point on
the Northwesterly line of Xxxx Street as shown on said map; thence
along the last named line, South 33(0) 28' 10" West 13.05 feet; thence
leaving said Northwesterly line at right angles therefrom, South 56(0)
31' 50" East 60.00 feet to the intersection thereof with the
Southeasterly line of said Xxxx Street and the True Point of Beginning
of this description; thence from said true point of beginning along
said Southeasterly line, North 33(0) 28' 10" East 58.63 feet; thence
along the arc of a tangent curve to the right with a radius of 50.00
feet through a central angle of 43(0) 20' 30" an arc distance of 37.82
feet to a point of reverse curvature; thence along the arc of a curve
to the left with a radius of 60.00 feet through a central angle of
14(0) 05' 39" an arc distance of 14.76 feet to a point of cusp; thence
leaving said Southeasterly line of Xxxx Street and running in a
Southwesterly direction along the arc of a curve to the right, the
tangent of which bears South 4(0) 13' 19" West, with a radius of 60.00
feet through a central angle of 72(0) 35' 21' an arc distance of
76.015 feet to a point of reverse curvature; thence along an arc of a
curve to the left with a radius of 50.00 feet through a central angle
of 43(0) 20' 30" an arc distance of 37.82 feet to the true point of
beginning, containing 0.037 of an acre and being a portion of Lot 4 as
said Lot is shown on said map.
1
Exhibit B (continued)
PARCEL TWO:
A portion of Xxxx Street as said street is shown on the map of Tract
No. 4460, recorded in Book 234 of Maps, page 27, Santa Xxxxx County
Records, being more particularly described as follows:
Beginning at the South corner of Lot 2, said corner being a point on
the Northwesterly line of Xxxx Street as shown on said map; thence
along the last named line, North 33(0) 28'10" East 45.58 feet; thence
along the arc of a tangent curve to the left with a radius of 50.00
feet through a central angle of 43(0) 20' 30" an arc distance of 37.82
feet to a point of reverse curvature; thence along the arc of a curve
to the right with a radius of 60.00 feet through a central angle of
14(0) 05' 39" an arc distance of 14.74 feet to the true point of
beginning of this description: thence from said true point of
beginning along the boundary of the Northeasterly terminus of Xxxx
Street, continuing along the arc of the last named curve to the right
with a radius of 60.00 feet through a central angle of 238(0) 29' 42"
an arc distance of 249.75 feet to a point of cusp; thence leaving said
boundary line of Xxxx street and running in a Northwesterly direction
along the arc of a curve to the left, the tangent of which bears North
4(0) 13' 19" East, with a radius of 60.00 feet through a central angle
of 121(0) 30' 18" an arc distance of 127.24 feet to the true point of
beginning.
APN: 000-00-000
2
EXHIBIT C
[date]
LNR Santa Xxxxx 1, LLC
c/o Lennar Partners
Attention: Chief Financial Officer
00000 Xxx Xxxxxx Xxxxxx, Xxxxx 000
Xxxxxx, XX 00000
Re: Standard Industrial/Commercial Single-Tenant Lease - Net
dated as of March 1, 2000 between LNR Santa Xxxxx I, LLC
(Lessor) and United Defense L.P. (Lessee) (the "Lease")
Gentlemen:
This will confirm my advice to you that as of December 31, 1999,
the assets, liabilities and income and/or loss of Lessee were
substantially the same as those reported by United Defense, Inc. (UDI)
with respect to itself (other than the debt which is on UDI's
financial statements only) on its Form 10K report filed with the
Securities and Exchange Commission for the twelve months ended
December 31, 1999. /1/
This letter is intended to satisfy the requirements of Section 66
of the Lease.
Very truly yours,
United Defense Inc.,
a Delaware corporation
By:_______________________________
Its Treasurer
------------------
/1/ Any letter sent to Lessor for any year after 1999 may list such exceptions
to the foregoing statement as the sender of the letter feels are
appropriate.
LENNAR PARTNERS
----------------------------------------------------------------------
March 31, 2000
Xx. Xxxx Xxxxx
UNITED DEFENSE, L.P.
0000 Xxxxxxx Xxxxxx
Xxxxx Xxxxx, Xxxxxxxxxx 00000
Via: Federal Express
Dear Xxxx:
Enclosed is a fully executed lease for your files. Congratulations on
a job well done.
Call me so that we can tie up any loose ends.
Very Truly Yours,
Xxxx Xxxxxx
Vice President
Enclosures
GM:BB
Schedule 1
Adjusted Base Rent through Oct. 30, 2011
Without 14509 parcel from Nov `06 thru Oct `11
Period Parcel Monthly Rent # of Months Total Rent
------ ------ ------------ ----------- ----------
3/1/2000 - 9/30/2001 1205 Xxxxxxx $224,340.00 19 $4,262,460.00
1450 Xxxxxxx $ 42,700.00 19 $ 811,300.00
$267,040.00 $5,073,760.00
10/1/2001 - 9/30/2002 1205 Xxxxxxx $291,629.00 12 $3,499,548.00
1450 Xxxxxxx $ 47,580.00 12 $ 570,960.00
$339,209.00 $4,070,508.00
10/1/2002-9/30/2003 1205 Xxxxxxx $300,377.87 12 $3,604,534.44
1450 Xxxxxxx $ 49,007.40 12 $ 588,088.80
$349,385.27 $4,192,623.24
10/1/2003-9/30/2004 1205 Xxxxxxx $309,389.21 12 $3,712,670.47
1450 Xxxxxxx $ 50,477.62 12 $ 605,731.46
$359,866.83 $4,318,401.94
10/1/2004-9/30/2005 1205 Xxxxxxx $318,670.88 12 $3,824.050.59
1450 Xxxxxxx $ 51,991.95 12 $ 623,903.41
$370,662.83 $4,447,954.00
10/1/2005-9/30/2006 1205 Xxxxxxx $328,231.01 12 $3,938,772.11
1450 Xxxxxxx $ 53,551.71 12 $ 642,620.51
$381,782.72 $ 4,581,392.62
10/1/2006-9/30/2007 1205 Xxxxxxx $338,077.94 12 $ 4,056,935.27
1450 Xxxxxxx $ 55,158.26 1 $ 55,158.26
$393,236.20 $ 4,112,093.53
10/1/2007-9/30/2008 1205 Xxxxxxx $348,220.28 12 $ 4,178,643.33
1450 Xxxxxxx $-- 0 $ --
$348,220.28 $ 4,178,643.33
10/1/2008-9/30/2009 1205 Xxxxxxx $358,666.89 12 $ 4,304,002.63
1450 Xxxxxxx $-- 0 $ --
$358,666.89 $ 4,304,002.63
10/1/2009-9/00-0000 0000 Xxxxxxx $369,426.89 12 $ 4,433,122.70
1450 Xxxxxxx $-- 0 $ --
$369,426.89 $ 4,433,122.70
9/30/2010-10/30/2011 1205 Xxxxxxx $380,509.70 13 $ 4,946,626.08
1450 Xxxxxxx $-- 0 $ --
$380,509.70 $ 4,946,626.08
==============
$48,659,128.06
------------------- ---------------------
Xxxx Xxxxxx Xxxx Xxxxx
Vice President, Acquisitions Facilities Manager
Lennar Partners United Defense L.P., Santa Xxxxx
2
Schedule 1
Adjusted Base Rent through Oct. 30, 2011
Both 1205 & 1450 parcels for entire 140 months:
Period Parcel Monthly Rent # of Months Total Rent
------ ------ ------------ ----------- ----------
3/1/2000 - 9/30/2001 1205 Xxxxxxx $224,340.00 19 $4,262,460.00
1450 Xxxxxxx $ 42,700.00 19 $ 811,300.00
$267,040.00 $5,073,760.00
10/1/2001 - 9/30/2002 1205 Xxxxxxx $291,629.00 12 $3,499,548.00
1450 Xxxxxxx $ 47,580.00 12 $ 570,960.00
$339,209.00 $4,070,508.00
10/1/2002-9/30/2003 1205 Xxxxxxx $300,377.87 12 $3,604,534.44
1450 Xxxxxxx $ 49,007.40 12 $ 588,088.80
$349,385.27 $4,192,623.24
10/1/2003-9/30/2004 1205 Xxxxxxx $309,389.21 12 $3,712,670.47
1450 Xxxxxxx $ 50,477.62 12 $ 605,731.46
$359,866.83 $4,318,401.94
10/1/2004-9/30/2005 1205 Xxxxxxx $318,670.88 12 $3,824.050.59
1450 Xxxxxxx $ 51,991.95 12 $ 623,903.41
$370,662.83 $4,447,954.00
10/1/2005-9/30/2006 1205 Xxxxxxx $328,231.01 12 $3,938,772.11
3
Period Parcel Monthly Rent # of Months Total Rent
------ ------ ------------ ----------- ----------
1450 Xxxxxxx $ 53,551.71 12 $ 642,620.51
$ 381,782.72 $ 4,581,392.62
10/1/2006-9/30/2007 1205 Xxxxxxx $ 338,077.94 12 $ 4,056,935.27
1450 Xxxxxxx $ 55,158.26 1 $ 661,899.13
$ 393,236.20 $ 4,718,834.39
10/1/2007-9/30/2008 1205 Xxxxxxx $ 348,220.28 12 $ 4,178,643.33
1450 Xxxxxxx $ 56,813.01 12 $ 681,756.10
$ 405,033.29 $ 4,860,399.43
10/1/2008-9/30/2009 1205 Xxxxxxx $ 358,666.89 12 $ 4,304,002.63
1450 Xxxxxxx $ 55,517.40 12 $ 702,208.78
$ 417,184.28 $5,006,211.41
10/1/2009-9/00-0000 0000 Xxxxxxx $ 369,426.89 12 $ 4,433,122.70
1450 Xxxxxxx $ 60,272.92 12 $ 723,275.05
$ 429,699.81 $ 5,156,397.75
9/30/2010-10/30/2011 1205 Xxxxxxx $ 380,509.70 13 $ 4,946,626.08
1450 Xxxxxxx $ 62,081.11 13 $ 807,054.41
$ 442.590.81 $ 5,753,680.49
==============
$52,180,163.26
---------------------------- --------------------------------
Xxxx Xxxxxx Xxxx Xxxxx
Vice President, Acquisitions Facilities Manager
Lennar Partners United Defense L.P., Santa Xxxxx
4
