EXHIBIT 10.25


 


DAIMLER
COMMERCE PARTNERS, L.P.

2008 INDUSTRIAL REAL ESTATE LEASE


 


This Lease is entered
into by DAIMLER COMMERCE PARTNERS, L.P., a California Limited Partnership by
its General Partner, CONIFER INVESTMENTS, INC. (LANDLORD) and SRS LABS, INC., a
California Corporation (TENANT) on the following terms and conditions:


 


RECITALS


 


A.            LANDLORD is a California Limited
Partnership which owns the industrial building located at 2905 to 2917 Daimler
Street, Santa Ana, California. The General Partner of the LANDLORD is Conifer
Investments, Inc., a California Corporation. The principal place of
business of the LANDLORD is located at 2905 South Daimler Street, Santa Ana,
California 92705-5810.


 


B.            TENANT is a California Corporation
with its principal place of business located at 2909 South Daimler Street,
Santa Ana, California 92705-5810.


 


C.            On June 1,1994. LANDLORD and
TENANT entered into a three year written lease for the premises located at 2909
South Daimler Street, Santa Ana, California consisting of approximately 11,700
square feet. The lease commenced on June 1,1994 and terminated on May 31,
1997. The June 1, 1994 lease was entitled DAIMLER COMMERCE PARTNERS, L.P.
INDUSTRIAL REAL ESTATE LEASE and consisted of thirteen (13) pages and two
exhibit pages and was a Multi-Tenant Net Form published by the
Southern California Chapter of the Society of Industrial and Office Realtors.


 


D.            On June 1,1997 the LANDLORD and
TENANT entered into a new lease for the premises located at 2909 South Daimler
Street, Santa Ana, California with the lease premises consisting of
approximately 23,400 square feet, with the lease term to be for three years
commencing on June 1,1997 and terminating on May 31,2000, with an
option to extend the lease for two years commencing June 1,2000 and ending
May 31,2002.  The terms and
conditions of the lease were set forth in the June 1,1994 lease as
modified by a two page document entitled Lease Terms and Conditions dated May 31,
1997 with the lease term commencing on June 1,1997. (“the 1997 Lease”)


 


E.             On May 31,2000 the TENANT
exercised its option to extend the 1997 lease for the premises located at 2909
South Daimler Street, Santa Ana. California for a two year period as provided
in the 1997 Lease.


 


F.             On May 31,2002 the TENANT
entered into a new lease for the premises located at 2909 South Daimler Street,
Santa Ana, California with the lease premises to consisting of approximately
23,400 square feet, with the lease term to be for three years commencing on June I,
2002 and terminating on May 01,2005, with an option to extend the lease
for three years commencing on June 1, 2005 and ending May 31,2008.
The terms and conditions of the lease were set forth in the June 1, 1994
lease as modified by a two page document entitled Lease Terms and Conditions
dated May 31,2002 with the lease term commencing on June 1,2002. (“the
2002 Lease”)


 


G.            LANDLORD and TENANT are desirous of
entering into a new lease for the premises located at 2909 South Daimler
Street, Santa Ana, California with the lease premises consisting of
approximately 23,400 square feet, with the lease to be for five years
commencing on June I, 2008 and terminating on May 31,2013, with an
option to extend the lease for an additional three year term commencing on June 1,
2013 and terminating on May 31,2016. (‘‘the 2008 Lease”)


 


2008
LEASE TERMS AND CONDITIONS


 


LANDLORD and TENANT
hereby enter intothe2008 Lease of the premises located at 2909 South Daimler
Street, Santa Ana California 92705-5810 on the following terms and conditions.


 


ARTICLE
I: TERMS OF LEASE


 


The LANDLORD and TENANT
hereby agree that the terms and conditions of this lease shall be the same
terms and conditions as the DAIMLER COMMERCE PARTNERS, L.P. INDUSTRIAL REAL
ESTATE LEASE dated June 1,1994 that was entered into by the LANDLORD and
TENANT for the leased premises located at 2909 South Daimler Street, Santa Ana,
California 92705-5810 and as modified herein. The June 1, 1994 Lease
consists of thirteen (13) pages and two exhibit 


 

















 


pages entitled
“Daimler Commerce Partners, L. P. Industrial Real Estate Lease” with the
subheading of “Multi-Tenant Net Form” published by the Southern California
Chapter of the Society of Industrial and Office Realtors, Inc., is
attached hereto as Exhibit “A” and is incorporated herein with the following
modifications:


 


Section 1.01: Date of Lease:
June 1,2008


 


Section 1.04: Property:
The Property is approximately 23,400 square feet located at 2909 South Daimler
Street. Santa Ana, California 92705-5810.


 


Section 1.05:
Lease Term: Five (5) years and zero (0) months beginning June 1, 2008
and terminating on May 31,2013.


 


Section 1.12a: Base Rent:
The base rental rate for the period of June 1, 2008 through May 31,
201 1 shall be $.85 per square feet per month which is a base monthly rental
rate of $19,890%0 per month. Commencing June 1,201 1 and continuing
through May 31, 2013 the base monthly rent shall be $.89 per square feet
per month which is a base monthly rental rate of $20,826.00’ber month.


 


Section 1.12b: Other
Periodic Payments: The Lease is a Triple
Net (NNN) lease with TENANT’S pro rata share of common area expenses being 50%
of the total building size of 46,800 square feet (Section 4.05). Other
Tenant expenses include Real Property Taxes (Section 4.02); Utilities (Section 4.03);
Insurance Premiums (Section 4.04); and Conditions of Property,
Maintenance, Repairs and Alterations (Article Six).


 


Section 1.14a:
Tenant Improvement Allowance: This
section of the June I, 1994 lease is deleted from this lease.


 


Section 1.14b: Lease
Cancellation: This section of the June 1,
1994 lease is deleted from this lease.


 


Section 1.15: Other Terms of
Lease: The other t e n s and
conditions of the June 1,1994 Lease that are not modified by the above
referenced sections are incorporated into this lease by the LANDLORD and TENANT
as if set forth in detail herein. A copy of the June 1,1994 Lease is
attached hereto as Exhibit 1 and is incorporated herein by reference and
is made a part of this lease.


 


ARTICLE
16 OPTION TO EXTEND THE LEASE


 


Section 16.01: Option to
Renew Lease: The TENANT Is granted
an option to extend the lease for three (3) additional years commencing on
June 1, 2013 and terminating on May 31, 2016. In order to exercise
the option to extend the lease the TENANT must be in full compliance with all
of the terms and conditions of the lease on the date of the exercise of the
option to extend the lease and on the termination date of the original term of
this lease. In order to exercise the option to extend the lease the TENANT
shall notify the LANDLORD in writing of the exercise of the option to extend
the lease at least six (6) months prior to the termination date of the
original term of this lease which is May 31,2013.


 


Section 16.02: Base Rental
Rate: In the event the TENANT
extends the lease for the three (3) year period of time, the lease shall
be extended on the same terms and conditions as this lease with the exception
that the base monthly rental rate shall be $.91 per square foot per month plus
the Triple Net (NNN) terms of the lease. with the new base monthly rental rate
of $21,294.00 per month commencing on June I, 201 3 and continuing each
month thereafter through May 31,2016.


 


	
   

  	
   

  	
   

  	
  LANDLORD

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  DAIMLER
  COMMERCE PARTNERS 

  L.P., a CALIFORNIA LIMITED 

  PARTNERSHIP

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Dated:

  	
  May 31, 2008

  	
   

  	
   

  	
  /s/ Misako Yuen

  
	
   

  	
   

  	
   

  	
  By:

  	
  Misako Yuen, 

  President of 

  Conifer Investments Inc., its 

  General Partner

  



 


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  TENANT

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  SRS LABS,
  INC.

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Dated:

  	
  May 27, 2008

  	
   

  	
   

  	
  /s/ Ulrich E. Gottschling

  
	
   

  	
   

  	
   

  	
  By:

  	
  Ulrich E. Gottschling 

  Chief Financial Officer

  



 


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