FIRST AMENDMENT TO LEASE
This first amendment to lease ("Amendment") is made this 15th day of November,
1995 by and between Great Oaks Interests, a California Limited partnership
having an address at 00000 X. Xx Xxxx Xxxx., Xxxxx 000, Xxxxxxxxx, Xxxxxxxxxx
00000 ("Landlord") and Komag Incorporated, a Delaware corporation having its
principal place of business at 000 X. Xxxxxxxx Xxxxx Xxxxxxxx, Xxxxxxxxxx 00000
("Tenant").
WITNESSETH
WHEREAS Landlord and Tenant entered into a lease dated August 4, 1995 (the
"Lease") for the building at 0000 Xxxxxxxxxx Xxxxxxx to be constructed on that
certain 13.54 acre site on the south side of Automation Parkway in San Xxxx
("Premises"); and
WHEREAS effective the date of this Amendment, Landlord and Tenant wish to modify
the Lease to (i) limit Landlord's obligation to reimburse Tenant for the costs
of constructing the Building Shell, (ii) the change the timing of Landlord's
reimbursement to Tenant of such costs, (iii) to set forth the final square
footage of the Building, and (iv) to set forth the final Base Monthly Rent;
NOW, THEREFORE, in order to effect the intent of the parties as set forth above
and for good and valuable consideration exchanged between the parties, the Lease
is amended as follows:
1. Landlord and Tenant have agreed that Landlord's obligation to pay the costs
associated with the construction of the Building Shell shall be limited as
provided herein. Total Project Costs (as defined in Exhibit "B" of the Lease)
shall be fixed at the sum of Fourteen Million and No/100 Dollars
($14,000,000.00). This amount has been determined with reference to Exhibit "B"
of the Lease as follows:
Project Cost Item Amount
(i) Land cost $5,036,913 (13.54 acres, $8.54 psf)
(v) Interest $537,518 (1 year - 9.75%)
(vi) Loan fees $231,000 (1.75% of $13,200,000)
(vii) Real estate taxes: $123,331 (1 year - land only)
(ix) Lease commission: $597,849 ($3.00 psf)
Total $6,526,611
Total to be paid to Tenant $7,473,389
for items (ii), (iii), (viii) & (x)
Landlord shall pay the loan fees, real estate taxes and lease commission
directly to the party owed as such amounts become due. In lieu of Landlord
making progress payments to Tenant during the construction of the Building
Shell, Landlord shall pay Tenant on the Commencement Date, the sum of Seven
Million Four Hundred Seventy Three Thousand Three Hundred Eighty Nine and No/100
Dollars ($7,473,389) to reimburse Tenant for Landlord's agreed share of the
balance of the costs to construct the Building Shell. Tenant agrees to pay, at
Tenant's expense, any additional costs necessary to complete the Building Shell
in substantial conformance with the building shell plans attached as Exhibit "C"
to the Lease.
2. Base Monthly Rent has been determined based on the formula contained in
Exhibit "B," the Total Project Costs of $14,000,000 and the best available
financing rate of 8% interest, 20 year amortization to be the sum of One Hundred
Forty Thousand Five Hundred Twenty One and 93/100 Dollars ($140,521.93).
3. Final square footage of the Building is agreed by Landlord and Tenant to be
199,293 square feet.
4. All defined terms shall have the same meanings as in the Lease, except as
otherwise stated in this Amendment.
5. Except as hereby amended, the Lease and all of the terms, covenants and
conditions thereof shall remain unmodified and in full force and effect. In the
event of any conflict or inconsistency between the terms and provisions of this
Amendment and the terms and provisions of the Lease, the terms and provisions of
this Amendment shall prevail.
IN WITNESS WHEREOF, the parties hereto have set their hands to this Amendment as
of the day and date first above written.
Landlord Tenant
Great Oaks Interests, Komag Incorporated,
a California limited partnership a Delaware corporation
By: ___________________________ By: _____________________________
Its: General Partner Its: VP & CFO
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