Document:

SUBLEASE AGREEMENT

 

 

                THIS SUBLEASE AGREEMENT

(“Sublease”) is entered into as of this 2nd day of August 2002, by and between

The Titan Corporation, a Delaware corporation (“Sublandlord”), and SureBeam

Corporation, a Delaware corporation (“Subtenant”).

 

RECITALS

 

A.            Sublandlord is the tenant under that certain Office

Building Lease by and between Embassy Tower Limited Partnership, as landlord

(“Master Landlord”), and Sublandlord, as tenant, dated May 17, 2000 (such

lease, as it may be amended from time to time, the “Master Lease”), for certain

space located at 9300 Underwood Avenue, Omaha, Douglas County, Nebraska 68114

(the “Premises”).

 

B.            Subtenant wishes to sublease a portion of the Premises

from Sublandlord.

 

 

                Now, therefore, for good and

valuable consideration, the receipt and sufficiency of which are hereby

acknowledged, the parties hereby agree as follows:

 

1.             Basic

Sublease Information.

 

The

information set forth in this Section (the “Basic Sublease Information”) is

intended to supplement and/or summarize the provisions set forth in the balance

of this Sublease.  Each reference in

this Sublease to any of the terms set forth below shall mean the respective

information set forth next to such term as amplified, construed or supplemented

by the particular Section(s) of the Sublease pertaining to such

information.  In the event of a conflict

between the provisions of this Section and the balance of the Sublease, the

balance of the Sublease shall control.

 

	

  Sublandlord:

  	

   

  	

  The Titan Corporation, a Delaware corporation

  
	

   

  	

   

  	

   

  
	

  Sublandlord’s

  Address  for Notices:

  	

   

  	

  The Titan Corporation 

  3033 Science Park Road 

  San Diego, CA 92122 

  Attn: Real Estate 

  (858) 552 - 9500

  
	

   

  	

   

  	

   

  
	

  Subtenant:

  	

   

  	

  SureBeam Corporation, a Delaware corporation

  
	

   

  	

   

  	

   

  
	

  Subtenant’s

  Address  for Notices:

  	

   

  	

  SureBeam

  Corporation  

  9276 Scranton Road, Suite 600  

  San Diego, CA 92121  

  Attn: Jerry Nelson 

  (858) 795-6234

  
	

   

  	

   

  	

   

  
	

  Subdemised

  Premises:

  	

   

  	

  Approximately

  3,947 aggregate square feet

  
	

   

  	

   

  	

   

  
	

  Building:

  	

   

  	

  Embassy Tower

  

 

 

1

 

	

   

  	

   

  	

   

  
	

  Permitted Use:

  	

   

  	

  As specified in Section 3 of the Master Lease as general office.

  
	

   

  	

   

  	

   

  
	

  Base Rent:

  	

   

  	

  Six Thousand Four Hundred, Thirteen Dollars and

  Eighty Cents ($6,413.80) per month (except for any partial month during the

  term of this Sublease, in which case Base Rent for such month shall be

  pro-rated based on the number of days in that month), or $19.25 per rentable

  square foot per year.

  
	

   

  	

   

  	

   

  
	

  Commencement Date:

  	

   

  	

  The term of the Sublease shall commence on August 2,

  2002  (the “Commencement Date”).

  
	

   

  	

   

  	

   

  
	

  Expiration Date:

  	

   

  	

  The Expiration Date shall be May 31, 2003, or

  such earlier date, if any, on which the Master Lease is terminated or expires

  or this Sublease is terminated pursuant to the terms herein.

  
	

   

  	

   

  	

   

  
	

  Subtenant’s Insurance:

  	

   

  	

  Specified and as required in Sections 12 and 14 of

  the Master Lease.

  
	

   

  	

   

  	

   

  
	

  Security Deposit:

  	

   

  	

  Six Thousand Four Hundred, Thirteen Dollars and

  Eighty Cents ($6,413.80) payable in accordance with Section 15 hereof.

  

 

2.             Sublease.

 

Sublandlord hereby subleases to Subtenant, and

Subtenant hereby subleases from Sublandlord, the Subdemised Premises upon all

of the terms, covenants and conditions in this Sublease.

 

3.             Delivery

Condition.

 

Subtenant

acknowledges that it takes possession of the Subdemised Premises in its “as is”

condition, and further acknowledges that Sublandlord has made no

representations or warranties of any kind or nature, whether express or

implied, with respect to the Subdemised Premises, the remainder of the

Premises, the common areas, or the Building, nor has Sublandlord agreed to

undertake or perform any modifications, alterations, or improvements to the

Subdemised Premises, the remainder of the Premises, the common areas or the

Building which would inure to Subtenant’s benefit.

 

                4.             Term.

 

4.1           Term.  The term (the “Term”) of this Sublease  shall

commence on the Commencement Date, and shall end on the Expiration Date.

 

4.2           Surrender.  Subtenant shall, on or before the Expiration

Date, remove all personal property, furniture, trade fixtures and other

equipment, provided that the removal of the same does not adversely affect the

Building structure or any Building operating system or is not prohibited by the

Master Lease, and that Subtenant promptly repairs any damage to the Building

structure or its operating systems caused by such removal pursuant to the

requirements of the Master Lease.  In

the event that Subtenant fails to remove any such items as required by this

Section 4.2 by the Expiration 

 

2

 

Date, all such items

remaining on the Subdemised Premises after the Expiration Date shall be deemed

abandoned and Sublandlord may dispose of such items as it sees fit, without

liability to Subtenant.  Subtenant shall

also be responsible for the removal, on or before the Expiration Date, of all

alterations as required under the Master Lease installed by Subtenant pursuant

to this Sublease and shall be responsible for any associated repair or

restoration of the Subdemised Premises required under the Master Lease.  In all other respects, Subtenant shall

deliver the Subdemised Premises broom clean, in its condition as of the

Commencement Date, reasonable wear and tear and casualty excepted.  In no event shall Subtenant remove any of

the plumbing, electrical, data lines, and HVAC system(s), except as otherwise

required pursuant to this Section 4.2.

 

Subtenant shall

vacate and deliver possession of the Subdemised Premises free of all liens,

charges or encumbrances resulting from any act or omission on Subtenant’s part,

and free and clear of any and all violations of any law, rule or regulation of

any federal, state, municipal or other agency or authority by reason of

Subtenant’s actions or failures to fulfill any of its obligations under this

Sublease (“Violations”).  Subtenant shall

indemnify Sublandlord against any and all loss, expense, damage, costs or

attorneys’ fees arising out of Violations occurring any time on or after the

Commencement Date.  The voluntary or

other surrender of this Sublease by Subtenant, or a mutual cancellation

thereof, shall not automatically terminate any sub-subleases or

sub-subtenancies or other agreements by which Subtenant has granted rights to

third parties to all or any part of the Subdemised Premises, but shall, at the

option of Sublandlord, either (1) terminate all or any existing sub-subleases

or sub-subtenancies or such other agreements, or (2) operate as an assignment

to Sublandlord of any or all such sub-subleases or sub-subtenancies or such

other agreements.

 

4.3           Holding Over.  If Subtenant remains in possession of the

Subdemised Premises after the Expiration Date, such occupancy shall constitute

a tenancy at sufferance, and Subtenant shall be obligated to pay 150% of the

rental installments as specified in Section 5 of this Sublease and Subtenant

shall be liable to Sublandlord for any and all claims, damages, liabilities,

costs and expenses (including attorneys’ fees and expenses) incurred by

Sublandlord and arising out of Subtenant’s failure to timely surrender the

Subdemised Premises in accordance with the requirements of this Sublease,

including, without limitation those incurred by Sublandlord arising under the

Master Lease.

 

5.             Rent.

 

As

used in this Sublease, the term “Rent” shall include (1) Base Rent and (2) all

other amounts which Subtenant is obligated to pay under the terms of this

Sublease.

 

5.1           Rent.  Base Rent is as specified in Section 1

(Basic Sublease Information).  Base Rent

shall be paid by Subtenant to the Master Landlord for the Sublandlord  as set forth in Section 4 of the Master

Lease and as subsequently amended or modified. Subtenant shall also be solely

responsible for any and all increases in Rent or any added cost or charge which

has arisen solely because of Subtenant’s tenancy in the Subdemised Premises,

including, without limitation, any and all heat, water and sewer charges,

electric and other utility charges, as well as any other service charges

required by the Master Lease and relating to the Subdemised Premises and/or

Subtenant’s occupation thereof that are not already then covered by the Base

Rent (as defined in the Master Lease), or Operating Expenses (as defined in the

Master Lease) passed through to Sublandlord under the Master Lease.

 

                                5.2           [INTENTIONALLY

OMITTED]

 

3

 

5.3           Manner of Payment.  All Rent or other payment due from Subtenant

to Sublandlord hereunder shall be paid in lawful money of the United States,

without any prior demand therefor and without any deduction or setoff

whatsoever, at the Master Landlord’s 

address pursuant to Section 4 of the Master Lease or such other place as

Sublandlord and/or Master landlord shall from time to time designate

(including, without limitation, by wire transfer of immediately available funds

to an account specified by Sublandlord) by written notice provided to Subtenant

at least five (5) days prior to the date on which such Rent or other amount

first becomes payable.

 

                6.             Use

and Compliance With Laws.

 

Subtenant shall use the Subdemised Premises for the Permitted Use (as specified

in the Basic Sublease Information) during the Term of this Sublease, and for no

other use or uses.  Subtenant shall not

engage in any activities prohibited by the Master Lease.  Subtenant shall not use or store flammable

or hazardous materials on the Subdemised Premises, except to the extent

normally used in the ordinary course of business with respect to the Permitted

Use unless such materials are specifically prohibited in the Lease.  Subtenant shall not perform any act or carry

on any practice which may injure the Subdemised Premises or cause any offensive

odors or noises that constitute a nuisance or menace to any other tenant or

tenants of the Building or the Premises or other persons, and in no event shall

any noises or odors be emitted from the Subdemised Premises.  Nothing shall be done upon or about the

Subdemised Premises which shall be unlawful, improper, or contrary to any law,

ordinance, regulation or requirement of any public authority or insurance

inspection or rating bureau or similar organization having jurisdiction and

Subtenant shall be in compliance at all times with all such laws, ordinances,

regulations and requirements.  Subtenant

shall observe and comply with, and shall cause its employees, agents and

invitees to observe and comply with the restrictions set forth in this

Sublease.  Subtenant agrees to comply

with all rules and regulations that Master Landlord has made or may hereafter

from time to time make for the Building and/or the Premises.  Sublandlord shall not be liable to Subtenant

or any party claiming through Subtenant in any way for damage caused by the

failure of any of the other tenants of the Building to comply with such similar

or other covenants in their leases or of such rules and regulations.

 

                7.             Insurance.

                                Subtenant shall obtain at its sole expense the

insurance required under Section 14 of the Master Lease effective as of the

Commencement Date.  Additionally,

Subtenant shall name Sublandlord and Master Landlord as additional insureds, in

their capacity as Master Landlord and Sublandlord, and shall furnish

Sublandlord on or before the Commencement Date with certificates of insurance

from its insurer, with respect to such insurance, which certificates shall

state that such insurance shall not be cancelled unless thirty (30) days prior

written notice shall have been given to Master Landlord and Sublandlord.

 

                8.             Assignment

and Subletting.

 

                                Subtenant shall

not directly or indirectly, voluntarily or by operation of law, sell, assign,

encumber, pledge or otherwise transfer or hypothecate any of its interest in or

rights with respect to the Subdemised Premises or Subtenant’s leasehold estate

hereunder (collectively, “Assignment”), or permit all or any portion of the

Subdemised Premises to be occupied by anyone (whether pursuant to a license,

concession or otherwise) other than Subtenant or sublet all or any portion of

the Subdemised Premises, without the prior written consent of Master Landlord

and Sublandlord.

 

4

 

                9.             Alterations.

 

                                Subtenant shall not make or suffer to

be made any alterations, additions or improvements to the Subdemised Premises,

including, without limitation, those related to electrical cabling and/or

systems, plumbing, data cabling, HVAC systems, or modifications to existing

finishes, without the prior written consent of Master Landlord, as required

under the Master Lease, and of Sublandlord. 

Additionally, Subtenant shall be subject to the standards for repairs

and alterations set forth in the Master Lease.

 

                10.          Repairs and Maintenance.

 

10.1         Subtenant’s Responsibility.  Subtenant shall be responsible for the

maintenance and repair of the Subdemised Premises in accordance with the

provisions of the Master Lease.

 

10.2         Sublandlord’s Responsibility.  As between the parties to this Sublease,

Sublandlord shall have no responsibility or liability to the Subtenant or

anyone claiming through Subtenant, for the Subdemised Premises including,

without limitation, the roof, roof covering, foundation, subfloors, building

structural components, major building systems (plumbing, electrical and

heating, air conditioning and ventilation systems), and exterior walls of the

Subdemised Premises.

 

                11.          Default.

 

Subtenant shall be subject to the same default provisions as specified

in Sections 17 and 18 and the applicable portions of Exhibit C of the Master

Lease as if it were the tenant thereunder, and Sublandlord shall have all the

remedies specified therein, as if it were Master Landlord, including, without

limitation, the right to terminate the Sublease and right to perform

Subtenant’s obligations under this Sublease at Subtenant’s cost.  Notwithstanding the foregoing, Subtenant

shall only be entitled to one-half (1/2) of the cure period for a default, if

any, provided for under the Master Lease.

 

                12.          Indemnity.

 

                                In addition to

such indemnities as may be provided for in the Master Lease, Subtenant agrees

to indemnify and hold Sublandlord and its affiliates, officers, agents,

servants, employees and independent contractors (individually a “Sublandlord

Party” and collectively, “Sublandlord Parties”) harmless against all loss,

damage, liability, or expense suffered or claimed against any Sublandlord

Party, by any person or entity (i) caused by or otherwise arising from, in

whole or in part, any breach or default by Subtenant of any covenant or

obligation it has hereunder (including but not limited to all covenants or

obligations of the tenant under the Master Lease assumed by Subtenant pursuant

to the terms of this Sublease), or (ii) caused by or in connection with

anything owned or controlled by Subtenant, or (iii) resulting from any act,

failure to act, or negligence of Subtenant or its employees, agents or

invitees, or (iv) resulting from any nuisance suffered on the Subdemised

Premises, except for damage or injury to third parties or property resulting

from the proven gross negligence of Sublandlord, Landlord or their respective

employees, agents, representatives, successors or assigns.  Subtenant further agrees to indemnify

Sublandlord and hold Sublandlord harmless from all losses, damages, liabilities

and expenses which Sublandlord may incur, or for which Sublandlord may be

liable to Master Landlord, arising from the acts or omissions of Subtenant

which are or are alleged to be defaults of Sublandlord under the Master Lease

or are the subject matter of any indemnity or hold 

 

5

 

harmless of

Sublandlord, as tenant, to Master Landlord under the Master Lease.  The obligations of Subtenant to indemnify

Sublandlord and/or the Sublandlord Parties and/or hold the Sublandlord and/or

the Sublandlord Parties harmless in this Section 12 and elsewhere herein shall

survive the expiration or other termination of this Sublease.

 

                13.          Master

Lease.

 

                13.1         Master

Lease.  Notwithstanding anything in

this Sublease to the contrary, the rights of Subtenant shall be subject to and

limited by the terms and conditions contained in the Master Lease between

Sublandlord and Master Landlord as applicable to tenant thereunder, as they may

be amended from time to time. 

Sublandlord shall have the right to amend the Master Lease from time to

time without the consent of Subtenant provided that any such amendment shall

not adversely affect Subtenant’s ability to continue its then current

operations in the Subdemised Premises, increase any of the rental or other

payments required to be made by Subtenant hereunder or otherwise materially and

adversely change Subtenant’s rights and obligations hereunder.  Sublandlord shall endeavor to give Subtenant

notice of any amendment to the Master Lease, but the failure to give such

notice shall not affect the validity of such amendment or its applicability to

Subtenant, except that Subtenant shall have no obligation to comply with the

terms of any such amendment until it has received a copy.  Any rights granted to Subtenant herein which

are limited by the Master Lease shall be deemed to be so limited by this

Sublease.

 

                                13.2         No

Violation.  Notwithstanding anything

in this Sublease to the contrary, Subtenant shall not commit or permit to be

committed any act or omission which shall violate any term or condition of the

Master Lease.  Subtenant shall indemnify

and hold harmless Sublandlord from and against any loss, liability, claim, cost

or expense (including reasonable attorneys’ fees) incurred by Sublandlord as a

result of any termination or attempted termination by Sublandlord or Master

Landlord of the Master Lease resulting from any such act or omission by Subtenant.

                13.3         [Intentionally Deleted]

 

                13.4         Termination of Master Lease.  If the Master Lease terminates for any

reason prior to the expiration or other termination of this Sublease, this

Sublease shall terminate concurrently therewith without any liability of Sublandlord

to Subtenant and, except for any Subtenant obligations hereunder arising on or

prior to the termination of this Sublease, following Subtenant’s surrender in

compliance with Section 4.2 hereof, Subtenant’s obligations hereunder shall

terminate, except with respect to any indemnification or hold harmless

obligations of Subtenant, which shall survive such termination.

 

                13.5         Incorporation of Master Lease.  Notwithstanding any other provision of this

Sublease to the contrary, this Sublease and Subtenant’s rights under this

Sublease shall at all times be subject to all of the terms, covenants, and

conditions of the Master Lease (a copy of which agreement, as currently in

effect, Subtenant hereby represents that it has received), with the same force

and effect as if fully set forth herein, and except as otherwise expressly

provided for herein, Subtenant shall keep, observe and perform or cause to be

kept, observed and performed, faithfully all those terms, covenants and

conditions of Sublandlord as tenant under the Master Lease with respect to the

Subdemised Premises.  Except as

otherwise provided hereby, the terms, conditions, rights and responsibilities

of the Master Lease are incorporated herein by reference, and Sublandlord shall

have the rights and responsibilities with respect to the Subtenant that the

Master Landlord has with respect to Sublandlord 

 

6

 

pursuant to the

Master Lease, and Subtenant shall have the rights and responsibilities with

respect to Sublandlord that Sublandlord has with respect to the Master Landlord

pursuant to the Master Lease.  However,

to the extent that the Master Lease requires or obligates Master Landlord to

maintain, repair, restore, or otherwise expend any money or take any action to

preserve and maintain all or any portion of the Subdemised Premises or to

furnish any services to the Subdemised Premises, such obligation shall not pass

to Sublandlord by reason of this Sublease and shall remain with the Master

Landlord.  Subject to the first sentence

of this Section 13.5, with respect to the relationship between the Sublandlord

and the Subtenant, the terms, covenants and conditions of this Sublease shall

control with respect to any conflict or inconsistency between the terms,

covenants and conditions contained herein and the terms, covenants and

conditions of the Master Lease. 

Notwithstanding the foregoing, the following sections of the Master

Lease are hereby excluded from application to or incorporation within this

Sublease:  Sections 4(a), 4(d), 4(e), 6,

19, 21, 23(h), 23(j) and 24, as well as provisions contained in Exhibit C which

pertain to the matters dealt with in the referenced provisions.

 

14.          Parking.

 

                                Parking spaces

(if any) shall be used in accordance with the terms of the Master Lease,

particularly Section 25 to the Master Lease. 

Sublandlord makes no representation or warranty concerning the

availability of parking spaces, whether free of charge or otherwise.

 

15.          Security

Deposit.

 

                                Upon execution of this Sublease,

Subtenant shall deposit with Sublandlord the sum of Six Thousand Four Hundred,

Thirteen Dollars and Eighty Cents ($6,413.80) as a security deposit either in

cash or in the form of a Letter of Credit acceptable to and approved by

Sublandlord, for the performance by Subtenant of the provisions of this

Sublease (the “Security Deposit”). 

Sublandlord shall have the right but not the obligation to use the

Security Deposit, or any portion thereof, to cure any breach or default of

Subtenant or to compensate Sublandlord for damages sustained as a result of any

breach or default by Subtenant hereunder. 

In the event Sublandlord in its sole discretion so utilizes all or a

portion of the Security Deposit from time to time, Subtenant shall within five

(5) days of notice from Sublandlord restore the Security Deposit to its

original amount.  If no breach or

default of Subtenant exists and no amounts are owing from Subtenant to

Sublandlord as of the expiration of the Term, Sublandlord shall return any

Security Deposit then held by Sublandlord to Subtenant within sixty (60) days

of such expiration.

 

16.          Brokers.

 

                                Subtenant represents that it has

dealt with no broker or agent in connection with this Sublease and Subtenant

shall hold Sublandlord harmless from any and all liability, loss, damage,

expense, claim action, demand, suit or obligation arising out of or relating to

a breach by Subtenant of such representation.

 

17.          Counterparts.

 

                                This Sublease

may be executed in one or more counterparts, each of which shall constitute one

and the same instrument.

 

7

 

18.          Governing

Law.

 

                                This Sublease

shall be governed by and construed and enforced in accordance with the laws of

the State of Nebraska, except with respect to the choice-of-law provisions

thereof.

 

19.          Waivers;

Amendments.

 

                                No failure or

delay by any party hereto in exercising any right, power or privilege hereunder

shall operate as a waiver thereof, nor shall any single or partial exercise

thereof preclude any other or further exercise thereof or the exercise of any

other right, power or privilege. The rights and remedies provided herein shall

be cumulative and not exclusive of any rights or remedies provided by law. Any

provision of this Sublease may be waived if, but only if, such waiver is in

writing and is signed by the party against whom the enforcement of such waiver

is sought. No waiver of any provision of this Sublease, in any one or more

instances, shall be deemed to be, or construed as, a further or continuing

waiver of any such provision. This Sublease may not be amended, modified or

supplemented other than by a written instrument signed by each party hereto.

 

20.          Entire

Agreement.

 

                                This Sublease

constitutes the entire agreement and understanding among the parties hereto and

supercedes any and all prior agreements and understandings, written or oral,

relating to the subject matter hereof.

 

21.          Severability.

 

                                Any term or

provision of this Sublease which is invalid or unenforceable in any

jurisdiction shall, as to such jurisdiction, be ineffective to the extent of

such invalidity or unenforceability without rendering invalid or unenforceable

the remaining terms and provisions of this Sublease or affecting the validity

or enforceability of any of the terms or provisions of this Sublease in any

other jurisdictions, it being intended that all rights and obligations of the

parties hereunder shall be enforceable to the fullest extent permitted by law.

 

 

 

[Signature page

follows]

 

 

8

 

IN

WITNESS WHEREOF, this Sublease shall be deemed to have been executed and

delivered as of the date first set forth above.

 

	

   

  	

  SUBLANDLORD:

  
	

   

  	

   

  
	

   

  	

  THE TITAN CORPORATION, 

  a Delaware corporation

  
	

   

  	

   

  
	

   

  	

  By:

  	

   

  
	

   

  	

  Name:

  	

   

  
	

   

  	

  Title:

  	

   

  
	

   

  	

   

  
	

   

  	

   

  
	

   

  	

  SUBTENANT:

  
	

   

  	

   

  
	

   

  	

  SUREBEAM CORPORATION, 

  a Delaware corporation

  
	

   

  	

   

  
	

   

  	

  By:

  	

   

  
	

   

  	

  Name:

  	

   

  
	

   

  	

  Title:

  	

   

  

 

 

 

9

 

EXHIBIT A

 

DESCRIPTION OF

SUBDEMISED PREMISES

 

[See attached.]

 

 

10SUBLEASE AGREEMENT

 

 

                THIS SUBLEASE AGREEMENT

(“Sublease”) is entered into as of this 2nd day of August, 2002, by and between

The Titan Corporation, a Delaware corporation (“Sublandlord”), and SureBeam

Corporation, a Delaware corporation (“Subtenant”)

 

RECITALS

 

A.            Sublandlord is the

tenant under that certain Lease by and between COOPERATIVE REAL ESTATE

INVESTMENT COMPANY (CREIC), (Limited Liability Company) duly registered as per

SAUDI LAW, as landlord (“Master Landlord”), and Sublandlord, as tenant, dated

January 15, 2001 corresponding to 20/10/1421 (such lease, as it may be amended

from time to time, the “Master Lease”), for certain space consisting of

approximately 133 square meters and located at King Fahed Road, North to King

Fahed Library, Olaya Area, Riyadh, Kingdom of Saudi Arabia, in the building

commonly known as Abraj Atta’awuneya (the “Premises”).

 

B.            Subtenant wishes to

sublease a portion of the Premises from Sublandlord.

 

 

                Now, therefore, for good and

valuable consideration, the receipt and sufficiency of which are hereby

acknowledged, the parties hereby agree as follows:

 

1.             Basic Sublease Information.

 

The

information set forth in this Section (the “Basic Sublease Information”) is

intended to supplement and/or summarize the provisions set forth in the balance

of this Sublease.  Each reference in

this Sublease to any of the terms set forth below shall mean the respective

information set forth next to such term as amplified, construed or supplemented

by the particular Section(s) of the Sublease pertaining to such

information.  In the event of a conflict

between the provisions of this Section and the balance of the Sublease, the

balance of the Sublease shall control.

 

	

  Sublandlord:

  	

   

  	

  The Titan

  Corporation, a Delaware corporation

  
	

   

  	

   

  	

   

  
	

  Sublandlord’s

  Address  for Notices:

  	

   

  	

  The Titan

  Corporation 

  3033 Science Park Road 

  San Diego, CA 92122 

  Attn: Real Estate 

  (858) 552 - 9500

  
	

   

  	

   

  	

   

  
	

  Subtenant:

  	

   

  	

  SureBeam

  Corporation, a Delaware corporation

  
	

   

  	

   

  	

   

  
	

  Subtenant’s Address  for

  Notices:

  	

   

  	

  SureBeam Corporation  

  9276 Scranton Road, Suite 600  

  San Diego, CA 92121  

  Attn: Jerry Nelson 

  (858) 795-6234  

  

 

 

1

 

	

   

  	

   

  	

   

  
	

  Premises:

  	

   

  	

  Approximately

  133 square meters.

  
	

   

  	

   

  	

   

  
	

  Building:

  	

   

  	

  Abraj

  Atta’awuneya 

  King Fahed Road, North to King Fahed Library 

  Olaya Area, Riyadh 

  Kingdom of Saudi Arabia

  
	

   

  	

   

  	

   

  
	

  Permitted

  Use:

  	

   

  	

  As specified

  in Clause I  1. of the Master Lease as private

  office.

  
	

   

  	

   

  	

   

  
	

  Base Rent:

  	

   

  	

  Ninety

  Thousand Saudi Riyals (SR 90,000) annually in accordance with Section 5

  hereof.

  
	

   

  	

   

  	

   

  
	

  Commencement

  Date:

  	

   

  	

  The term of

  the Sublease shall commence on August 2, 2002 (such later date, the

  “Commencement Date”).

  
	

   

  	

   

  	

   

  
	

  Expiration

  Date:

  	

   

  	

  The

  Expiration Date shall be February 14, 2003, or such earlier date, if any, on

  which the Master Lease is terminated or expires or this Sublease is

  terminated pursuant to the terms herein.

  
	

   

  	

   

  	

   

  
	

  Subtenant’s

  Insurance:

  	

   

  	

  Specified

  and as required in Clause XI 7. of the Master Lease.

  
	

   

  	

   

  	

   

  
	

  Security

  Deposit:

  	

   

  	

  Eighteen Thousand Saudi Riyals as set forth in Clause

  IV of the Master Lease and Section 14 hereof.

  

 

2.             Sublease.

 

Sublandlord

hereby subleases to Subtenant, and Subtenant hereby subleases from Sublandlord,

the Premises upon all of the terms, covenants and conditions in this Sublease.

 

3.             Delivery Condition.

 

Subtenant acknowledges that it takes

possession of the Premises in its “as is” condition, and further acknowledges

that Sublandlord has made no representations or warranties of any kind or

nature, whether express or implied, with respect to the Premises, the remainder

of the Premises, the common areas, or the Building, nor has Sublandlord agreed

to undertake or perform any modifications, alterations, or improvements to the

Premises, the remainder of the Premises, the common areas or the Building which

would inure to Subtenant’s benefit.

 

                4.             Term.

 

4.1           Term.  The term (the “Term”) of this Sublease  shall

commence on the Commencement Date, and shall end on the Expiration Date.

 

4.2           Surrender.  Subtenant shall, on or before the Expiration

Date, remove all personal property, furniture, trade fixtures and other

equipment, provided that the removal of the same does not adversely affect the

Building structure or any Building operating system or is not prohibited by the

Master Lease, and that Subtenant promptly repairs any damage to the Building

structure or its 

 

2

 

operating systems caused by such removal pursuant to the requirements

of the Master Lease.  In the event that

Subtenant fails to remove any such items as required by this Section 4.2 by the

Expiration Date, all such items remaining on the Premises after the Expiration

Date shall be deemed abandoned and Sublandlord may dispose of such items as it

sees fit, without liability to Subtenant. 

Subtenant shall also be responsible for the removal, on or before the

Expiration Date, of all alterations as required under the Master Lease

installed by Subtenant pursuant to this Sublease and shall be responsible for

any associated repair or restoration of the Premises required under the Master

Lease.  In all other respects, Subtenant

shall deliver the Premises broom clean, in its condition as of the Commencement

Date, reasonable wear and tear and casualty excepted.  In no event shall Subtenant remove any of the plumbing,

electrical, data lines, and HVAC system(s), except as otherwise required

pursuant to this Section 4.2.

 

Subtenant shall vacate and deliver possession

of the Premises free of all liens, charges or encumbrances resulting from any

act or omission on Subtenant’s part, and free and clear of any and all

violations of any law, rule or regulation of any federal, state, municipal or

other agency or authority by reason of Subtenant’s actions or failures to

fulfill any of its obligations under this Sublease (“Violations”).  Subtenant shall indemnify Sublandlord

against any and all loss, expense, damage, costs or attorneys’ fees arising out

of Violations occurring any time on or after the Commencement Date.  The voluntary or other surrender of this

Sublease by Subtenant, or a mutual cancellation thereof, shall not

automatically terminate any sub-subleases or sub-subtenancies or other

agreements by which Subtenant has granted rights to third parties to all or any

part of the Premises, but shall, at the option of Sublandlord, either (1)

terminate all or any existing sub-subleases or sub-subtenancies or such other

agreements, or (2) operate as an assignment to Sublandlord of any or all such

sub-subleases or sub-subtenancies or such other agreements.

 

4.3           Holding

Over.  If Subtenant remains in

possession of the Premises after the Expiration Date, such occupancy shall

constitute a tenancy at sufferance, and Subtenant shall be obligated to pay

200% of the rental installments as specified in Section 5 of this Sublease and

Subtenant shall be liable to Sublandlord for any and all claims, damages,

liabilities, costs and expenses (including attorneys’ fees and expenses)

incurred by Sublandlord and arising out of Subtenant’s failure to timely

surrender the Premises in accordance with the requirements of this Sublease,

including, without limitation those incurred by Sublandlord arising under the

Master Lease.

 

5.             Rent.

 

As used in this Sublease, the term “Rent”

shall include (1) Base Rent and (2) all other amounts which Subtenant is

obligated to pay under the terms of this Sublease.

 

5.1           Rent.  The current Base Rent is as specified in

Section 1 (Basic Sublease Information), which Sublandlord and Subtenant hereby

acknowledge that Subtenant has tendered payment and for the current “lease

period”.  Any rents or other charges

pursuant to this Sublease shall be paid by Subtenant to the Master Landlord for

the Sublandlord as due, in advance, without offset or deductions, within one

week of the Due Date.  Base Rent for any

partial calendar year of the Term, to the extent applicable, shall be pro-rated

based on the number of days in that month falling within the Term.  Subtenant shall also be solely responsible

for any and all increases in Rent or any added cost or charge which has arisen

solely because of Subtenant’s tenancy in the Premises, including, without

limitation, any and all heat, water and sewer charges, electric and other

utility charges, as well as any other service charges required by the Master

Lease and relating to the Premises and/or Subtenant’s 

 

3

 

occupation thereof that are not already then covered by the Base Rent

(as defined in the Master Lease), Operating Expenses (as defined in the Master

Lease) or Tax Expenses (as defined in the Master Lease) passed through to

Sublandlord under the Master Lease.

 

                                5.2           [INTENTIONALLY OMITTED]

 

5.3           Manner

of Payment.  All Rent or other

payment due from Subtenant to Sublandlord hereunder shall be paid in lawful

money of the United States, without any prior demand therefor and without any

deduction or setoff whatsoever, at the Master Landlord’s address pursuant to

the Master Lease and Clause IX 15. thereof or such other place as Sublandlord

and/or Master Landlord shall from time to time designate (including, without

limitation, by wire transfer of immediately available funds to an account

specified by Sublandlord) by written notice provided to Subtenant at least five

(5) days prior to the date on which such Rent or other amount first becomes

payable.

 

                6.             Use

and Compliance With Laws.

 

Subtenant shall use the

Premises for the Permitted Use (as specified in the Basic Sublease Information)

during the Term of this Sublease, and for no other use or uses.  Subtenant shall not engage in any activities

prohibited by the Master Lease. 

Subtenant shall not use or store flammable or hazardous materials on the

Premises, except to the extent normally used in the ordinary course of business

with respect to the Permitted Use unless such materials are specifically

prohibited in the Lease.  Subtenant

shall not perform any act or carry on any practice which may injure the

Premises or cause any offensive odors or noises that constitute a nuisance or

menace to any other tenant or tenants of the Building or the Premises or other

persons, and in no event shall any noises or odors be emitted from the

Premises.  Nothing shall be done upon or

about the Premises which shall be unlawful, improper, or contrary to any law,

ordinance, regulation or requirement of any public authority or insurance

inspection or rating bureau or similar organization having jurisdiction and

Subtenant shall be in compliance at all times with all such laws, ordinances,

regulations and requirements.  Subtenant

shall observe and comply with, and shall cause its employees, agents and

invitees to observe and comply with the restrictions set forth in this

Sublease.  Subtenant agrees to comply

with all rules and regulations that Master Landlord has made or may hereafter

from time to time make for the Building and/or the Premises.  Sublandlord shall not be liable to Subtenant

or any party claiming through Subtenant in any way for damage caused by the

failure of any of the other tenants of the Building to comply with such similar

or other covenants in their leases or of such rules and regulations.

 

                7.             Insurance.

                                Subtenant

shall obtain at its sole expense the insurance required under the Master Lease

effective as of the Commencement Date. 

Additionally, Subtenant shall name Sublandlord and Master Landlord as

additional insureds, in their capacity as Master Landlord and Sublandlord, and

shall furnish Sublandlord on or before the Commencement Date with certificates

of insurance from its insurer, with respect to such insurance, which

certificates shall state that such insurance shall not be cancelled unless

thirty (30) days prior written notice shall have been given to Master Landlord

and Sublandlord.

 

                8.             Assignment

and Subletting.

 

4

 

                                Subtenant shall not directly or indirectly,

voluntarily or by operation of law, sell, assign, encumber, pledge or otherwise

transfer or hypothecate any of its interest in or rights with respect to the

Premises or Subtenant’s leasehold estate hereunder (collectively,

“Assignment”), or permit all or any portion of the Premises to be occupied by

anyone (whether pursuant to a license, concession or otherwise) other than

Subtenant or sublet all or any portion of the Premises, without the prior

written consent of Master Landlord and Sublandlord.

 

                9.             Alterations.

 

                                Subtenant shall not make or suffer to

be made any alterations, additions or improvements to the Premises, including,

without limitation, those related to electrical cabling and/or systems,

plumbing, data cabling, HVAC systems, or modifications to existing finishes,

without the prior written consent of Master Landlord, as required under the

Master Lease, and of Sublandlord. 

Additionally, Subtenant shall be subject to the standards for repairs

and alterations set forth in the Master Lease.

 

                10.          Repairs

and Maintenance.

 

10.1         Subtenant’s

Responsibility.  Subtenant shall be

responsible for the maintenance and repair of the Premises in accordance with

the provisions of the Master Lease.

 

10.2         Sublandlord’s

Responsibility.  As between the

parties to this Sublease, Sublandlord shall have no responsibility or liability

to the Subtenant or anyone claiming through Subtenant, for the Premises

including, without limitation, the roof, roof covering, foundation, subfloors,

building structural components, major building systems (plumbing, electrical

and heating, air conditioning and ventilation systems), and exterior walls of

the Premises.

 

                11.          Default.

 

Subtenant shall be subject to

the same default and termination provisions as specified in Clause X of the Master Lease as if it were

the tenant thereunder, and Sublandlord shall have all the remedies specified

therein, as if it were Master Landlord, including, without limitation, the

right to terminate the Sublease and right to perform Subtenant’s obligations

under this Sublease at Subtenant’s cost. 

Notwithstanding the foregoing, Subtenant shall only be entitled to

one-half (1/2) of the cure period for a default, if any, provided for under the

Master Lease.

 

                12.          Indemnity.

 

                                In addition to

such indemnities as may be provided for in the Master Lease, Subtenant agrees

to indemnify and hold Sublandlord and its affiliates, officers, agents,

servants, employees and independent contractors (individually a “Sublandlord

Party” and collectively, “Sublandlord Parties”) harmless against all loss,

damage, liability, or expense suffered or claimed against any Sublandlord

Party, by any person or entity (i) caused by or otherwise arising from, in

whole or in part, any breach or default by Subtenant of any covenant or obligation

it has hereunder (including but not limited to all covenants or obligations of

the tenant under the Master Lease assumed by Subtenant pursuant to the terms of

this Sublease), or (ii) caused by or in connection with anything owned or

controlled by Subtenant, or (iii) resulting from any act, failure to act, or

negligence of Subtenant or its employees, agents or invitees, or (iv) resulting

from any nuisance suffered on the Premises, except for damage or 

 

5

 

injury to third

parties or property resulting from the proven gross negligence of Sublandlord,

Landlord or their respective employees, agents, representatives, successors or

assigns.  Subtenant further agrees to

indemnify Sublandlord and hold Sublandlord harmless from all losses, damages,

liabilities and expenses which Sublandlord may incur, or for which Sublandlord

may be liable to Master Landlord, arising from the acts or omissions of

Subtenant which are or are alleged to be defaults of Sublandlord under the

Master Lease or are the subject matter of any indemnity or hold harmless of

Sublandlord, as tenant, to Master Landlord under the Master Lease.  The obligations of Subtenant to indemnify

Sublandlord and/or the Sublandlord Parties and/or hold the Sublandlord and/or

the Sublandlord Parties harmless in this Section 12 and elsewhere herein shall

survive the expiration or other termination of this Sublease.

 

                13.          Master

Lease.

 

                13.1         Master Lease.  Notwithstanding anything in this Sublease to

the contrary, the rights of Subtenant shall be subject to and limited by the

terms and conditions contained in the Master Lease between Sublandlord and

Master Landlord as applicable to tenant thereunder, as they may be amended from

time to time.  Sublandlord shall have

the right to amend the Master Lease from time to time without the consent of

Subtenant provided that any such amendment shall not adversely affect

Subtenant’s ability to continue its then current operations in the Premises,

increase any of the rental or other payments required to be made by Subtenant

hereunder or otherwise materially and adversely change Subtenant’s rights and

obligations hereunder.  Sublandlord

shall endeavor to give Subtenant notice of any amendment to the Master Lease,

but the failure to give such notice shall not affect the validity of such

amendment or its applicability to Subtenant, except that Subtenant shall have

no obligation to comply with the terms of any such amendment until it has

received a copy.  Any rights granted to

Subtenant herein which are limited by the Master Lease shall be deemed to be so

limited by this Sublease.

 

                13.2         No Violation.  Notwithstanding anything in this Sublease to

the contrary, Subtenant shall not commit or permit to be committed any act or

omission which shall violate any term or condition of the Master Lease.  Subtenant shall indemnify and hold harmless

Sublandlord from and against any loss, liability, claim, cost or expense

(including reasonable attorneys’ fees) incurred by Sublandlord as a result of

any termination or attempted termination by Sublandlord or Master Landlord of

the Master Lease resulting from any such act or omission by Subtenant.

                13.3         [Intentionally

Omitted].

 

                13.4         Termination of

Master Lease.  If the Master Lease

terminates for any reason prior to the expiration or other termination of this

Sublease, this Sublease shall terminate concurrently therewith without any

liability of Sublandlord to Subtenant and, except for any Subtenant obligations

hereunder arising on or prior to the termination of this Sublease, following

Subtenant’s surrender in compliance with Section 4.2 hereof, Subtenant’s

obligations hereunder shall terminate, except with respect to any

indemnification or hold harmless obligations of Subtenant, which shall survive

such termination.

 

                13.5         Incorporation of

Master Lease.  Notwithstanding any

other provision of this Sublease to the contrary, this Sublease and Subtenant’s

rights under this Sublease shall at all times be subject to all of the terms,

covenants, and conditions of the Master Lease (a copy of which agreement, as

currently in effect, Subtenant hereby represents that it has received), with

the same force and effect 

 

6

 

as if fully set forth herein, and except as

otherwise expressly provided for herein, Subtenant shall keep, observe and

perform or cause to be kept, observed and performed, faithfully all those

terms, covenants and conditions of Sublandlord as tenant under the Master Lease

with respect to the Premises.  Except as

otherwise provided hereby, the terms, conditions, rights and responsibilities

of the Master Lease are incorporated herein by reference, and Sublandlord shall

have the rights and responsibilities with respect to the Subtenant that the

Master Landlord has with respect to Sublandlord pursuant to the Master Lease,

and Subtenant shall have the rights and responsibilities with respect to

Sublandlord that Sublandlord has with respect to the Master Landlord pursuant

to the Master Lease.  However, to the

extent that the Master Lease requires or obligates Master Landlord to maintain,

repair, restore, or otherwise expend any money or take any action to preserve

and maintain all or any portion of the Premises or to furnish any services to

the Premises, such obligation shall not pass to Sublandlord by reason of this

Sublease and shall remain with the Master Landlord.  Subject to the first sentence of this Section 13.5, with respect

to the relationship between the Sublandlord and the Subtenant, the terms, covenants

and conditions of this Sublease shall control with respect to any conflict or

inconsistency between the terms, covenants and conditions contained herein and

the terms, covenants and conditions of the Master Lease.  Notwithstanding the foregoing, the following

sections of the Master Lease are hereby excluded from application to or

incorporation within this Sublease:  The

provision for automatic renewal in Clause II. 

Subtenant shall NOT have the right to automatically renew this Sublease

pursuant to the provisions set forth in Clause II of the Master Lease.

 

15.          Security Deposit.

 

                                 Sublandlord and Subtenant hereby acknowledge that Subtenant has

tendered payment and shall continue to tender payment of the Security Deposit

as set forth in Clause IV of the Master Lease. 

Upon expiration of the Master Lease, Sublandlord shall forward payment

to Subtenant within thirty (30) days of receipt from Master Landlord any

refunded Security Deposit amounts it has received pursuant to Clause IV of the

Master Lease.

 

 

16.          Brokers.

 

                Subtenant

represents that it has dealt with no broker or agent in connection with this

Sublease and Subtenant shall hold Sublandlord harmless from any and all

liability, loss, damage, expense, claim action, demand, suit or obligation arising

out of or relating to a breach by Subtenant of such representation.

 

17.          Counterparts.

 

                                This Sublease

may be executed in one or more counterparts, each of which shall constitute one

and the same instrument.

 

18.          Governing Law.

 

                                This Sublease

shall be governed by and construed and enforced in accordance with the laws of

the Kingdom

of Saudi Arabia, except with

respect to the choice-of-law provisions thereof.

 

7

 

19.          Waivers; Amendments.

 

                                No failure or

delay by any party hereto in exercising any right, power or privilege hereunder

shall operate as a waiver thereof, nor shall any single or partial exercise

thereof preclude any other or further exercise thereof or the exercise of any

other right, power or privilege. The rights and remedies provided herein shall

be cumulative and not exclusive of any rights or remedies provided by law. Any

provision of this Sublease may be waived if, but only if, such waiver is in

writing and is signed by the party against whom the enforcement of such waiver

is sought. No waiver of any provision of this Sublease, in any one or more

instances, shall be deemed to be, or construed as, a further or continuing

waiver of any such provision. This Sublease may not be amended, modified or

supplemented other than by a written instrument signed by each party hereto.

 

20.          Entire Agreement.

 

                                This Sublease

constitutes the entire agreement and understanding among the parties hereto and

supercedes any and all prior agreements and understandings, written or oral,

relating to the subject matter hereof.

 

21.          Severability.

 

                                Any term or

provision of this Sublease which is invalid or unenforceable in any

jurisdiction shall, as to such jurisdiction, be ineffective to the extent of

such invalidity or unenforceability without rendering invalid or unenforceable

the remaining terms and provisions of this Sublease or affecting the validity

or enforceability of any of the terms or provisions of this Sublease in any

other jurisdictions, it being intended that all rights and obligations of the

parties hereunder shall be enforceable to the fullest extent permitted by law.

 

 

 

[Signature page follows]

 

8

 

IN

WITNESS WHEREOF, this Sublease shall be deemed to have been executed and

delivered as of the date first set forth above.

 

	

   

  	

  SUBLANDLORD:

  
	

   

  	

   

  
	

   

  	

  THE TITAN

  CORPORATION, 

  a Delaware corporation

  
	

   

  	

   

  
	

   

  	

  By: 

  	

   

  
	

   

  	

  Name:

  	

   

  
	

   

  	

  Title:

  	

   

  
	

   

  	

   

  
	

   

  	

   

  
	

   

  	

  SUBTENANT:

  
	

   

  	

   

  
	

   

  	

  SUREBEAM

  CORPORATION, 

  a Delaware Corporation

  
	

   

  	

   

  
	

   

  	

  By: 

  	

   

  
	

   

  	

  Name:

  	

   

  
	

   

  	

  Title:

  	

   

  

 

 

9

 

EXHIBIT A

 

DESCRIPTION OF PREMISES

 

[SEE ATTACHED.]

 

 

10

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