Document:

ex_106210.htm

Exhibit 10.35

 

 

FIFTH AMENDMENT TO MULTI-TENANT OFFICE LEASE

 

This FIFTH AMENDMENT TO MULTI-TENANT OFFICE LEASE (this "Fifth Amendment") dated for reference purposes only as of March 7, 2017 (the "Effective Date'), is entered into by and between LBA REALTY FUND III-COMPANY XII, LLC, a Delaware limited liability company ("Landlord"), and INPHI CORPORATION, a Delaware corporation ("Tenant").

 

R E C I T A L S:

 

A.     Pursuant to that certain Multi-Tenant Office Lease (FSG) dated June 4, 2010 (the "Original Lease"), by and between Landlord and Tenant, as amended by that certain First Amendment to Multi-Tenant Office Lease dated March 7, 2011 (the "First Amendment"), that certain Second Amendment to Multi-Tenant Office Lease dated September 30, 2012 (the "Second Amendment"), that certain Third Amendment to Multi-Tenant Office Lease dated July 31, 2013 (the "Third Amendment"), and that certain Fourth Amendment to Multi-Tenant Office Lease dated August 10, 2016 (the "Fourth Amendment") (the Original Lease, as amended by the First Amendment, Second Amendment, Third Amendment, and Fourth Amendment, is referred to herein as the "Lease"), Tenant currently leases from Landlord (i) those certain premises commonly known as Suite 100 containing approximately 29,090 rentable square feet, (ii) those certain premises commonly known as Suite 180 containing approximately 10,905 rentable square feet, (iii) those certain premises containing approximately 527 rentable square feet and identified as Expansion Space Bin the Second Amendment, and (iv) that certain storage space commonly known as Suite 162 containing approximately 1,675 rentable square feet (collectively, the "Premises") within the building located at 112 South Lakeview Canyon Road, Westlake Village, California (the "Building").

 

B.     The Lease by its terms shall expire December 31, 2017, and the parties desire to extend the Term of the Lease on the following terms and conditions.

 

	 	
			 C.

				
			Capitalized terms not defined herein have the meanings given to such terms in the Lease.

			

 

NOW, THEREFORE, in consideration of the foregoing Recitals, the mutual covenants and agreements contained in this Fifth Amendment and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, Landlord and Tenant hereby agree as follows:

 

AGREEMENT:

 

1.     Combination of Premises Space. That certain portion of the Premises containing approximately 527 rentable square feet and identified as Expansion Space B in the Second Amendment shall become part of Suite 100. Tenant's total Premises shall henceforth be described as follows:

 

	
			Suite 100:

				
			29,617 RSF

			
	 	 
	
			Suite 162:

				
			1,675 RSF

			
	 	 
	
			Suite 180:

				
			10,905 RSF

			
	 	 
	
			TOTAL:

				
			42,197 RSF

			

 

 

 

 

All references in the Lease to the defined term "Premises" shall mean and refer to the above-described Premises consisting of the three enumerated suite numbers above. Tenant's use and occupancy of the Premises shall be in accordance with all of the terms and conditions of the Lease as amended by this Fifth Amendment (the "Amended Lease").

 

2.       Term. Landlord and Tenant acknowledge that Tenant's lease of the Premises is scheduled to expire on December 31, 2017, pursuant to the terms of the Lease. Landlord and Tenant agree to extend the Term for a period of eighty-four (84) months (the "Fifth Amendment Extended Term"), commencing as of January 1, 2018 (the "Fifth Amendment Extended Term Commencement Date"), and continuing through December 31, 2024 (the "New Expiration Date"), on the terms and conditions set forth in the Lease as amended by this Fifth Amendment. The period commencing on July 1, 2017 (the "Rent Adjustment Date") and expiring on the New Expiration Date shall be referred to hereafter as the "Rent Adjustment Term."

 

3.       Monthly Base Rent. Prior to the Rent Adjustment Date, Tenant shall continue to pay monthly installments of Monthly Base Rent for the Premises as provided in the Lease. Notwithstanding anything to the contrary contained in the Lease, commencing as of the Rent Adjustment Date and continuing through the duration of the Rent Adjustment Term, Tenant shall pay installments of Monthly Base Rent for the Premises as set forth below, which payments shall otherwise be made in accordance with the terms of the Lease.

 

 

	
			Period

				
			Monthly Base

			Rent

				
			Monthly Base

			Rent

				
			Monthly Base

			Rent

				
			Monthly Base

			Rent

			
	 	
			Suite 100*

				
			Suite 162

				
			Suite 180*

				
			Total

			
	
			7/1/17 - 7/31/17

				
			$80,558.24

				
			$2,512.50

				
			$29,661.60

				
			$112,732.34

			
	
			8/1/17 - 5/31/18

				
			$0.00

				
			$0.00

				
			$0.00

				
			$0.00

			
	
			6/1/18 - 6/30/18

				
			$80,558.24

				
			$2,512.50

				
			$29,661.60

				
			$112,732.34

			
	
			7/1/18 - 6/30/19

				
			$82,974.99

				
			$2,512.50

				
			$30,551.45

				
			$116,038.94

			
	
			7/1/19 - 6/30/20

				
			$85,464.24

				
			$2,512.50

				
			$31,467.99

				
			$119,444.73

			
	
			7/1/20 - 6/30/21

				
			$88,028.16

				
			$2,512.50

				
			$32,412.03

				
			$122,952.70

			
	
			7/1/21 - 6/30/22

				
			$90,669.01

				
			$2,512.50

				
			$33,384.39

				
			$126,565.90

			
	
			7/1/22 - 6/30/23

				
			$93,389.08

				
			$2,512.50

				
			$34,385.92

				
			$130,287.50

			
	
			7/1/23 - 6/30/24

				
			$96,190.75

				
			$2,512.50

				
			$35,417.50

				
			$134,120.75

			
	
			7/1/24 - 12/31/24

				
			$99,076.47

				
			$2,512.50

				
			$36,480.03

				
			$138,069.00

			

 

*Commencing on the first anniversary of the Rent Adjustment Date and each anniversary of the Rent Adjustment Date thereafter during the Rent Adjustment

 

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Term, Monthly Base Rent payable for Suite 100 and Suite 180 shall increase by three percent (3%) per annum in accordance with and as depicted in the schedule set forth above.

 

4.       Rent Abatement. Provided Tenant is not in default under this Lease beyond any applicable notice and cure period, Landlord hereby agrees to abate in full Tenant's obligation to pay Monthly Base Rent for the Premises during months two (2) through eleven (11) of the Rent Adjustment Term in accordance with and as depicted in the schedule set forth above (i.e., August 1, 2017 - May 31, 2018, during which period, Monthly Base Rent for the Premises shall be

$0.00). During such abatement period, Tenant will still be responsible for the payment of all other monetary obligations under the Lease.

 

5.      Tenant's Percentage and Base Year. Tenant shall continue to pay Additional Rent with respect to the Premises through the day prior to the Rent Adjustment Date in accordance with the terms of the Lease pursuant to the existing base year of 2011 in connection with Suite 100, and the base year of 2013 in connection with Suite 180 and Suite B; provided, however, that the Base Year for the Premises shall be adjusted to 2018 effective as of the Rent Adjustment Date, and Tenant Landlord agree that as of the Rent Adjustment Date, Tenant's Percentage shall be 15.6%. In no event shall Tenant be obligated to pay any Excess Expenses, Excess Taxes, Excess Insurance Costs, or Excess Utilities Cost for the Premises from July 1, 2017 through December 31, 2018.

 

6.      Security Deposit. Within thirty (30) days following the mutual execution of this Fifth Amendment, Tenant shall deposit with Landlord an amount to increase the security deposit (in cash or a letter of credit [in the form of Exhibit K to the Lease], at Tenant's sole option) equal to 100% of last month's rent in an amount equal to $138,069.00 (the "New Security Deposit"), which in all events shall conform to the provisions of Article 6 of the Lease as modified by this Paragraph 6. Landlord and Tenant hereby acknowledge that Landlord currently holds pursuant to the terms of the Lease a cash security deposit in the amount of $92,681.43 (the "Existing Security Deposit"). The Existing Security Deposit shall be applied towards the New Security Deposit, and Tenant shall pay Landlord within said 30-day period above the amount of $45,387.57, which said amount, coupled with the Existing Security Deposit shall total $138,069.00 and serve as the New Security Deposit. Furthermore, Tenant's obligation under the Lease to post a letter of credit, including but not limited to the letter of credit in the amount of $151,268.00 or any other amounts set forth in Article 6 of the Original Lease shall cease and not be applicable or required following the Effective Date, and to the extent the terms and conditions of this Section 6 are inconsistent with the terms and conditions of the Original Lease, the terms and conditions of this Section 6 shall control.

 

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7.      Tenant Improvements. Tenant acknowledges that it is presently in possession of the Premises and is aware of the condition of the Premises. Tenant acknowledges that Landlord shall not be obligated to refurbish or improve the Premises in any manner except as otherwise expressly set forth herein, and except as otherwise expressly set forth in the Lease for improvements or work that is required to be completed by Landlord as a result of a repair, replacement, restoration or maintenance obligations of Landlord specifically set forth under the Lease. Tenant further acknowledges that except as expressly provided in the Lease or this Fifth Amendment, neither Landlord nor any agent of Landlord has made any representation or warranty regarding the condition of the Premises, the improvements, refurbishments, or alterations therein, or the Building or with respect to the functionality thereof or the suitability of any of the foregoing for the conduct of Tenant's business and that all representations and warranties of Landlord, if any, are as set forth in the Lease and this Fifth Amendment. Tenant shall, using Building standard materials, finishes and specifications and/or materials, finishes and specifications that are comparable in quality to those located in the Premises, perform certain improvements to the Premises as reasonably approved by Landlord pursuant to the Alterations provisions of Article 13 of the Lease and this Paragraph 7 (collectively, "Tenant's Work"). Landlord hereby grants to Tenant an allowance of up to $1,044,376.00 ($24.75 per rentable square foot of the Premises) (the "Allowance"). Tenant's Work shall be constructed, and Landlord shall reimburse Tenant the Allowance, in accordance with the terms and conditions set forth in Exhibit B (Work Letter) of the Second Amendment. If Landlord holds the tenant improvement contract, Landlord shall charge a 3% supervision fee against the Allowance. If Tenant holds the tenant improvement contract, Landlord shall not charge any supervision or construction management fee in connection with Tenant's Work. Tenant shall have until June 30, 2019, to use the Allowance. Notwithstanding anything to the contrary contained herein or in the Lease, up to $20.00 per rentable square foot of the Allowance, for a total of $843,940.00, may be utilized by Tenant towards base rental abatement.

 

8.      Signage. Tenant, at Tenant's sole cost and expense, shall have the right to install, in the same location as Tenant's existing exterior sign on the Building facade (as shown on Exhibit A attached hereto), a replacement sign with Tenant's name and logo (including Tenant's colors, and back-lit or illuminated if permitted by the applicable governmental authority) substantially as shown on Exhibit B attached hereto (the "New Exterior Sign"), provided, however, Tenant acknowledges and agrees that the New Exterior Sign shall be no bigger than the size of the existing exterior sign. If Tenant installs a New Exterior Sign, Landlord shall provide Tenant with a signage allowance towards the actual costs of manufacturing and installing the New Exterior Sign not to exceed twenty thousand dollars ($20,000.00) (the "Signage Allowance"). The New Exterior Sign, if any, shall become part of the Tenant's Work. Tenant's Work (including installation of the New Exterior Sign) shall be constructed, and Landlord shall reimburse Tenant the Signage Allowance, in accordance with the terms and conditions set forth in Exhibit B (Work Letter) of the Second Amendment and in accordance with the terms and conditions of Article 12 of the Original Lease.

 

9.      Option to Extend. Landlord hereby grants to Tenant an option ("the "Fifth Amendment Extension Option") to extend the Fifth Amendment Extended Term for an additional period of five (5) years (the "Fifth Amendment Option Term"), on the same terms, covenants, and conditions as provided for in the Lease during the initial Term, except for the Monthly Base Rent, which shall initially be equal to the "fair market rental rate" for the Premises for the Fifth Amendment Option Term as defined and determined in accordance with the provisions of the Fair Market Rental Rate Rider attached to the Original Lease as Rider No. 2, subject to fair market annual rent adjustments, if any, during the Fifth Amendment Option Term. The Fifth Amendment Extension Option must be exercised, if at all, by written notice ("the Fifth Amendment Extension Notice") delivered by Tenant to Landlord no sooner than that date which is twelve (12) months and no later than that date which is nine (9) months prior to the New Expiration Date. Provided Tenant has exercised the Fifth Amendment Extension Option within the times frames and pursuant to the terms set forth herein, the then current Term of the Lease shall be extended by the Fifth Amendment Option Term, and all terms, covenants, and conditions of the Lease shall remain unmodified and in full force and effect, except that the Monthly Base Rent shall be as set forth above, and except that Tenant shall have no further Fifth Amendment Extension Option remaining. The Fifth Amendment Extension Option shall be applicable to the Premises in its entirety, or at Tenant's sole option, for Suite 100 or Suite 180 individually, with or without Suite 162 in either case.

 

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10.     Condition of Premises. Pursuant to Section 1938 of the California Civil Code, Landlord hereby advises Tenant that as of the date of this Amended Lease neither the Premises, the Building nor the Property have undergone inspection by a Certified Access Specialist. Further, pursuant to Section 1938 of the California Civil Code, Landlord notifies Tenant of the following: "A Certified Access Specialist (CASp) can inspect the Premises and determine whether the Premises comply with all of the applicable construction-related accessibility standards under state law. Although California state law does not require a CASp inspection of the Premises, the commercial property owner or lessor may not prohibit the lessee or tenant from obtaining a CASp inspection of the Premises for the occupancy or potential occupancy of the lessee or tenant, if requested by the lessee or tenant. The parties shall mutually agree on the arrangements for the time and manner of any such CASp inspection, the payment of the fees for the CASp inspection, and the cost of making any repairs necessary to correct violations of construction-related accessibility standards within the Premises." Therefore and notwithstanding anything to the contrary contained in the Amended Lease, Landlord and Tenant agree that (a) Tenant may, at its option and at its sole cost, cause a CASp to inspect the Premises and determine whether the Premises complies with all of the applicable construction-related accessibility standards under California law, (b) the parties shall mutually coordinate and reasonably approve of the timing of any such CASp inspection so that Landlord may, at its option, have a representative present during such scheduled inspection, and (c) Tenant shall be solely responsible for the cost of any repairs necessary to correct violations of construction- related accessibility standards within the Premises identified by any such CASp inspection, any and all such alterations and repairs within the Premises to be performed by Tenant in accordance with Article 13 of this Lease. Unless any repair or alterations relate solely to other alterations to the Premises which Tenant is obligated to, or elects to, remove upon the expiration or earlier termination of the Fifth Amendment Extended Term (in which case Tenant shall simultaneously also remove any CASp identified alterations and repairs), Tenant shall have no obligation to remove any repairs or alterations made pursuant to a CASp inspection under this Section 10. In no event shall the foregoing alter or limit Landlord's obligations with respect to any compliance work as may be required to be performed by Landlord under Section 8.1 of the Original Lease or Section 10 of the Second Amendment, including any ADA compliance work.

 

11.     Brokers. Tenant and Landlord represent and warrant to each other that other than Cresa, representing Tenant, no broker, agent or finder, negotiated or was instrumental in negotiating or consummating this Fifth Amendment, and Landlord shall be solely responsible for paying any commissions in connection with this Fifth Amendment. Tenant further agrees to defend, indemnify and hold harmless Landlord from and against any claim for commission or finder's fee by any other person or entity who claims or alleges that they were retained or engaged by Tenant or at the request of Tenant in connection with this Fifth Amendment. Landlord further agrees to defend, indemnify and hold harmless Tenant from and against any claim for commission or finder's fee by any other person or entity who claims or alleges that they were retained or engaged by Landlord or at the request of Landlord in connection with this Fifth Amendment.

 

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12.     Authority. Each signatory of this Fifth Amendment on behalf of each of Landlord and Tenant represents hereby that he or she has the authority to execute and deliver the same on behalf of the party hereto for which such signatory is acting.

 

13.     Representations and Warranties. Tenant hereby represents, warrants, and agrees that: (1) to Tenant's actual knowledge, there exists no breach, default, or event of default by Landlord under the Lease as of the date hereof; (2) the Lease, as amended herein, continues to be a legal, valid, and binding agreement and obligation of Tenant; and (3) Tenant has no current offset or defense to its performance or obligations under the Lease. Landlord hereby represents, warrants, and agrees that: (1) to Landlord's actual knowledge, there exists no breach, default, or event of default by Tenant under the Lease as of the date hereof; and (2) the Lease, as amended herein, continues to be a legal, valid, and binding agreement and obligation of Landlord.

 

14.     No Other Modification. Landlord and Tenant agree that except as otherwise specifically modified in this Fifth Amendment, the Lease has not been modified, supplemented, amended, or otherwise changed in any way and the Lease remains in full force and effect between the parties hereto as modified by this Fifth Amendment. To the extent of any inconsistency between the terms and conditions of the Lease and the terms and conditions of this Fifth Amendment, the terms and conditions of this Fifth Amendment shall apply and govern the parties. This Fifth Amendment may be executed in counterparts, each of which shall be deemed an original, but all of which, together, shall constitute one and the same instrument.

 

[SIGNATURE PAGES TO FOLLOW]

 

6

 

 

 

IN WITNESS WHEREOF, the parties have executed this Fifth Amendment as of the date set forth above.

 

Tenant:

 

INPHI CORPORATION,

a Delaware corporation

 

By: /s/ John S. Edmunds   

Name:   John S. Edmunds 

Title:     CFO                       

 

 

 

 

 

 

 

 

[SIGNATURES CONTINUED ON FOLLOWING PAGE]

 

7

 

 

Landlord:

 

LBA REALTY FUND III-COMPANY XII, LLC,

a Delaware limited liability company

 

By:         LBA Realty Fund III, L.P.,

a Delaware limited partnership, 

its sole Member and Manager

 

	 	
			By:

				
			LBA Management Company III, LLC, 

			a Delaware limited liability company, 

			its General Partner

			

 

By:         LBA Realty LLC,

a Delaware limited liability company,

its Manager

 

By:         LBA Inc.,

a California corporation, 

its Managing Member

 

By: /s/ Steven R. Briggs   

Name:   Steven R. Briggs 

Title:     Authorized Signatory 

 

8

 

 

Exhibit A 

Existing: Exterior Sign

 

 

 

 

 

Exhibit B - Page I

New Exterior Sign

 

 

 

2

 

 

Exhibit B - Page 2 

New Exterior Sign

 

 

 

 

3ex_106211.htm

Exhibit 10.36

 

 

FIRST AMENDMENT TO LEASE

 

This First Amendment to Lease (this "Amendment") is made as of May 28, 2014, by and between Bayland Corporation, a California corporation ("Lessor"), and Inphi Corporation, a Delaware corporation ("Lessee").

 

RECITALS

 

A.     Pursuant to the terms of the Standard Office Lease - Gross between Lessee and Lessor, dated September 20, 2012 (the "Existing Lease"), Lessee leases certain office space consisting of approximately 28,957 rentable square feet on the 3rd floor of the building (the "Existing Premises") located at 2953 Bunker Hill Lane in Santa Clara, California.

 

B.     Lessor and Lessee wish to amend the Existing Lease to provide for, among other things, an expansion of the Premises and an extension of the term. The Existing Lease as amended by this Amendment is referred to herein as the "Lease."

 

C.     Capitalized terms not defined in this Amendment shall have the meanings given to them in the Existing Lease.

 

AGREEMENT

 

NOW, THEREFORE, in consideration of the foregoing recitals and the covenants contained herein, Lessor and Lessee agree as follows.

 

1.     Expansion Premises. Effective as of the Expansion Commencement Date (as defined below), the Premises shall include the entire rentable area located on the 4th floor of the Building, comprising approximately 28,957 rentable square feet (the "Expansion Premises"). From and after the Expansion Commencement Date, all references in the Existing Lease to "Premises" shall mean the Existing Premises and the Expansion Premises. For the avoidance of doubt, all rights of Lessee applicable to the Premises shall apply equally to the Expansion Premises, including, without limitation, 58 (Access), 60 (Non-Disturbance) and 61 (No Relocation); provided, however, the annual original 600 HVAC after-hours usage threshold pursuant to Section 11.3 shall now apply to the entire Premises. (For clarification purposes, an additional after-hours usage of 600 hours will not be granted.)

 

2.     Extension of Term. The term of the Existing Lease currently expires on April 10, 2018 (the "Existing Termination Date"). The term of the Existing Lease is hereby extended through the last day of the sixty-first 61st full calendar month following the Expansion Commencement Date. The te1m of the Lease, as extended by this Amendment is referred to herein as the "Extended Term." All references in the Existing Lease to the Term or the term of the Lease shall mean the Extended Term.

 

1

 

 

3.     Expansion Effective Date. The Expansion Commencement Date shall mean the later of (a) the date on which Lessor tenders possession of the Expansion Premises to Lessee, with all of Lessor's construction obligations "Substantially Completed" as provided in the Construction Rider attached as Exhibit A (the "Construction Rider") or, in the event of any "Lessee Delay," as defined in the Construction Rider, the date on which Lessor could have done so had there been no such Lessee Delay; or (b) the Scheduled Expansion Commencement Date (as defined below); provided, however, if Lessee actually occupies and conducts business in the Expansion Premises prior to such date, the Expansion Commencement Date shall be the first date on which Lessee actually occupies and conducts business in any portion of the Expansion Premises. The parties anticipate that the Expansion Commencement Date will occur on or about July 18, 2014 (the "Scheduled Expansion Commencement Date"); provided, however, that Lessor shall not be liable for any claims, damages or liabilities if the Expansion Premises are not ready for occupancy by the Scheduled Expansion Commencement Date When the Expansion Commencement Date has been established, Lessor and Lessee shall at the request of either party confirm the Expansion Commencement Date in writing.

 

4.        Base Rent.

 

(a)     Expansion Premises. Effective as of Expansion Commencement Date, the Existing Lease shall be amended to provide that the Base Rent for the Expansion Premises is as follows:

 

	
			Months of Extended Term

				
			Monthly Base Rent

			
	
			1

				
			$0.00

			
	
			2-12

				
			$37,553.24

			
	
			13-14

				
			$38,801.34

			
	
			15-24

				
			$73,072.99

			
	
			25-36

				
			$75,265.18

			
	
			37-48

				
			$77,523.13

			
	
			49-60

				
			$79,848.83

			
	
			61-

				
			$82,244.29

			

 

The references to months above are measured from the Expansion Commencement Date and do not refer to calendar months. Accordingly, the changes in Base Rent shown above will take effect on the same day of the month in which the Expansion Commencement Date occurs. (For example, if the Expansion Commencement Date were June 10, 2014, the Base Rent for the Expansion Premises would increase to $37,533.24 on July 10, 2014, would increase to $38,801.34 on June 10, 2015, and would increase to $73,072.99 on August 10, 2015. Accordingly, the Base Rent for the calendar months in which the increase take place will be calculated using the lower Base Rent for the portion of the calendar month prior to the adjustment date and the higher Base Rent for the portion of the calendar month from and after the adjustment date.) Base Rent for the Expansion Premises shall be payable on the first day of each calendar month, provided that Lessee shall pay the Base Rent for the second month ($37,533.24) upon Lessee's execution of this Amendment, which amount shall be applied to Base Rent for the Expansion Premises as it accrues.

 

(b)     Existing Premises. The Base Rent for the Existing Premises shall remain as provided in the Existing Lease through April 10, 2018. Commencing as of April 11, 2018, the Base Rent for the Existing Premises shall as follows:

 

	Months of Term	Monthly Base Rent
	 	 
	4/11/18 - 4/10/19	$70,944.65
	4/ 11/ 19 through expiration of Extended Term	$73,072.99

 

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5.     Base Year. The Base Year for the Expansion Premises shall be the calendar year 2014, and Lessee's Share of Operating Expense Increase for the Expansion Premises shall be 24.71%. (The Base Year for the Existing Premises shall remain the calendar year 2013, and Lessee's Share of Operating Expense Increase for the Existing Premises shall remain 24.71%.) Notwithstanding the foregoing, in no event shall Lessee's obligation to pay Lessee's Share of Operating Expense Increase for the Expansion Premises commence until the first (1st) anniversary of the Expansion Commencement Date.

 

6.     Security Deposit. Concurrently with Lessee's execution of this Amendment, Lessee shall deliver to Lessor Sixty-Three Thousand Five Hundred Thirty-Three and 85/100 Dollars ($63,533.85) as an additional security deposit for Lessee's faithful performance of Lessee's obligations under the Lease. Accordingly, the total security deposit required under the Lease is One Hundred Twenty Thousand Dollars ($120,000).

 

7.     Extension Option. The option to extend the term of the Existing Lease set forth in Section 57 of the Existing Lease shall apply to the Expansion Premises and the Extended Term; provided, however, that Lessee may elect to exercise such option with respect to both the Expansion Premises and the Existing Premises or just the Existing Premises, which election must be made in the notice by which Lessee exercises such option. If such notice does not include such election, such notice shall be deemed Lessee's election to exercise such option with respect to both the Expansion Premises and the Existing Premises. All other provisions of the option to extend set forth in Section 57 of the Existing Lease shall remain the same.

 

8.     Subleasing Improvements. Effective as of the Expansion Commencement Date, Section 12.4(f) of the Existing Lease is amended to provide that, in addition to the costs that Lessee is entitled to deduct before calculating the split of sublease profits between Lessor and Lessee set forth in Section 12.4(f) of the Existing Lease, Lessee shall be entitled to deduct the costs, if any, incurred by Lessee in constructing a common corridor to serve the portion of the Premises that are sublet.

 

9.     No Existing Mortgage. Lessor hereby represents and warrants that the Office Building Project is not encumbered by any deed of trust or mortgage as of the date hereof

 

10.     Parking. Effective as of the Expansion Commencement Date, Section 2.2 of the Existing Lease is amended and restated in its entirety as follows: ''Vehicle Parking: Subject to the rules and regulations attached hereto, and as established by Lessor from time to time, Lessee shall be entitled to rent and use 232 parking spaces in the Office Building Project."

 

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11.     Condition of Expansion Premises. In addition to the requirements set forth in the Construction Rider, Lessor shall deliver the Expansion Premises to Lessee on the Expansion Commencement Date in good condition and repair, including all building systems serving the Expansion Premises. Lessee shall have thirty (30) days after the Expansion Premises Commencement Date to notify Lessor of any failure of the Expansion Premises or the building systems to comply with the foregoing covenant. If Lessee so notifies Lessor, Lessor's sole obligation shall be to correct any violation at Lessor's sole cost and expense in a diligent, timely and good and workmanlike manner.

 

12.     Signage. The initial cost of all directory and suite identification signage for the Expansion Premises shall be borne by Lessor.

 

13.     Brokers. Each party hereby represents and warrants to the other party that it has not had any contact or dealings concerning this Amendment or the Premises with any broker or other person, other than Steve Gibson, Duffy D'Angelo and Dave Schmidt of Colliers International (collectively, "Broker"), who can claim a right to a commission in connection with this transaction and each party agrees to indemnify, defend and hold the other harmless against any costs arising out of a breach of the foregoing representation and warranty. Lessor shall pay the commission due Broker pursuant to a separate agreement between Lessor and Broker

 

14.     Attorneys' Fees. In the event any dispute between the parties hereto should result in litigation or arbitration, the prevailing party shall be reimbursed for all reasonable costs in connection therewith, including, but not limited to, reasonable attorneys' fees. 

 

15.    Continuation of the Lease. Except as expressly amended hereby, the terms and conditions of the Existing Lease shall remain unmodified and in full force and effect. In the event any provision of this Amendment conflicts with the Existing Lease, this Amendment shall control. All references in the Existing Lease to "this Lease" shall be deemed reference to the Existing Lease as amended by this Amendment.

 

16.     Integration. The Existing Lease and this Amendment constitute the entire understanding between the parties with respect to the Premises. No subsequent amendment will be effective unless it is in writing and executed by the parties.

 

17.     Successors and Assigns. The terms of this Amendment are binding upon and shall inure to the benefit of Lessor and Lessee and their respective legal representatives, successors and assigns.

 

18.     Counterparts. This Amendment may be executed in counterparts, each of which when executed and delivered shall be an original.

 

19.     Civil Code Section 1938. Pursuant to California Civil Code Section 1938, Lessor hereby notifies Lessee that neither the Building nor the Premises have been inspected by a Certified Access Specialist.

 

[Signatures pages to follow.]

 

4

 

 

IN WITNESS WHEREOF, Lessor and Lessee have executed this Amendment as of the day and year first written above.

 

 

LESSEE: 

 

 

Inphi Corporation,

a Delaware corporation

 

By: /s/ John S. Edmunds

Name:   John S. Edmunds

Title:    CFO                      

 

 

LESSOR:

 

 

Bayland Corporation,

a California corporation

 

By: /s/ Adam Henderson 

Name:   Adam Henderson

Title:    President               

 

5

 

 

Exhibit A 

 

Construction Rider

 

 

1.        Expansion Improvements. Lessor shall engage Gidel & Kocal Construction ("Contractor") to construct and install in the Expansion Premises the improvements and fixtures provided for in this Construction Rider ("Expansion Improvements"). Upon request by Lessor, Lessee shall designate in writing an individual authorized to act as Lessee's representative with respect to all approvals, directions and authorizations pursuant to this Construction Rider.

 

1.1.     Plans. The Expansion Improvements shall be constructed substantially as shown on the floor plan for the Expansion Premises dated May 12, 2014 ("Expansion Premises Plan"), prepared by James Crawford AIA who has been retained by Lessee as the architect for the Expansion Improvements in the Expansion Premises ("Architect").

 

As soon as may be reasonably practicable after execution and delivery of this Amendment, Lessee will cause the Architect will prepare and deliver to Lessee detailed plans and specifications sufficient to permit the construction of the Expansion Improvements by Lessor's contractor ("Construction Documents"). Lessor will cause Contractor to provide Lessee with a cost estimate for the work shown in the Construction Documents. Lessee and Lessor shall respond to the Construction Documents and cost estimate within three (3) days after receipt thereof, specifying any changes or modifications Lessee or Lessor desires in the Construction Documents. The Architect will then revise the Construction Documents and resubmit them to Lessee and Lessor for their approval and Lessor will cause Contractor to provide Lessee with a revised cost estimate.

Lessee shall approve or disapprove the same within three (3) days after receipt. The revised Construction Documents and cost estimate, as approved by Lessee and Lessor, are hereinafter referred to as the "Final Construction Documents" and "Final Cost Estimate," respectively.

 

Additional interior decorating services and advice on the furnishing and decoration of the Premises, such as the selection of fixtures, furnishings or design of mill work, shall be provided by Lessee at its expense, but shall be subject to the reasonable approval of Lessor.

 

1.2.     Construction. Upon approval by Lessor and Lessee of the Final Construction Documents and the Final Cost Estimate, Lessor shall cause Contractor to proceed with commercially reasonable diligence to cause the Expansion Improvements to be Substantially Completed on or prior to the Scheduled Expansion Commencement Date, in a good and workmanlike manner in accordance with the Final Construction Documents and in compliance with applicable law, including obtaining all permits and governmental approvals as may be required. The Expansion Improvements shall be deemed to be "Substantially Completed" when (i) the Expansion Improvements have been completed in a good and workmanlike manner in accordance with the Final Construction Documents and in compliance with applicable law; (ii) Lessor has received either a final inspection approval or Temporary Certificate of Occupancy from the City of Santa Clara; and, (iii) the Expansion Premises are in broom clean condition, except for finishing details, minor omissions, decorations and mechanical adjustments of the type normally found on an architectural "punch list " (The definition of Substantially Completed shall also define the terms "Substantial Completion" and "Substantially Complete.")

 

 

 

 

Following Substantial Completion of the Expansion Improvements and before Lessee takes possession of the Expansion Premises (or as soon thereafter as may be reasonably practicable and in any event within thirty (30) days after Substantial Completion), Lessor and Lessee shall inspect the Expansion Premises and jointly prepare a "punch list" of agreed items of construction remaining to be completed. Lessor shall cause Contractor to complete the items set forth in the punch list as soon as commercially reasonably possible. Lessee shall reasonably cooperate with and accommodate Lessor and Contractor in completing the items on the punch list, provided that in the completion of such items, Lessor shall make commercially reasonable efforts to minimize any interference with Lessee's occupancy of the Expansion Premises.

 

1.3.     Cost of Expansion Improvements. Lessor shall contribute up to $579,140 ("TI Allowance") toward the cost of the design (including preparation of space plans and Construction Documents), construction and installation of the Expansion Improvements. In addition, if the Tenant Improvements require any tenting of the existing light fixtures in the Expansion Premises, any seismic upgrades to the sprinkler system in the Expansion Premises or any code compliance upgrades to the base building improvements, Lessor shall pay the costs of such tenting, seismic and code compliance upgrades ("Tenting and Upgrade Obligations"). The balance, if any, of the cost of the Expansion Improvements ("Additional Cost") shall be paid by Lessee. Lessee shall pay Lessor 50% of the Additional Cost based upon the Final Cost Estimate prior to the commencement of construction of the Expansion Improvements. The balance of the actual Additional Cost shall be paid to Lessor upon Substantial Completion of the Expansion Improvements, within ten (10) days after receipt of Lessor's invoice therefor. Lessor will use commercially reasonable care in preparing the cost estimates, but they are estimates only and do not limit Lessee's obligation to pay for the actual Additional Cost of the Expansion Improvements, whether or not it exceeds the estimated amounts. Lessor will cause the Contractor to solicit bids for the three major trades (i.e., mechanical, electrical and plumbing) from at least two subcontractors for each trade. If the actual cost of the Expansion Improvements is less than the TI Allowance of

$579,140, up to $57,914 (which represents 10% of the TI Allowance) of the balance may be applied by Lessor to the cost of performing the Tenting and Upgrade Obligations. Any remaining balance shall be applied to Base Rent as and when it comes due.

 

1.4.     Changes. If Lessee requests any change, addition or alteration in or to any Final Construction Documents that is reasonably acceptable to Lessor ("Changes"), Lessee shall cause the Architect to prepare additional Plans implementing such Change. Lessee shall pay the cost of preparing additional Plans to the extent such cost exceeds the TI Allowance. As soon as practicable after the completion of such additional Construction Documents, Lessor shall obtain from the Contractor the estimated cost of the Changes. Within three (3) working days after receipt of such cost estimate, Lessee shall notify Lessor in writing whether Lessee approves the Change. If Lessee approves the Change, Lessor shall proceed with the Change and Lessee shall be liable for any Additional Cost resulting from the Change. If Lessee fails to approve the Change within such three

(3) day period, construction of the Expansion Improvements shall proceed as provided in accordance with the original Construction Documents.

 

1.5.     Delays. Lessee shall be responsible for, and shall pay to Lessor, any and all costs and expenses incurred by Lessor in connection with any delay in the commencement or completion of any Expansion Improvements and any increase in the cost of Expansion Improvements caused by (i) Lessee's failure to submit information to the Architect or approve any Construction Documents or cost estimates within the time periods required herein, (ii) any delays in obtaining any items or materials constituting part of the Expansion Improvements requested by Lessee, (iii) any Changes, or (iv) any other delay requested or caused by Lessee (collectively, "Lessee Delays

 

 

 

 

2.     Delivery of Premises. Upon Substantial Completion of the Expansion Improvements, Lessor shall deliver possession of the Expansion Premises to Lessee. If Lessor has not Substantially Completed the Expansion Improvements and tendered possession of the Expansion Premises to Lessee on or before the Scheduled Expansion Commencement Date specified in Section 3 of the Amendment to which this Construction Rider is attached, or if Lessor is unable for any other reason to deliver possession of the Premises to Lessee on or before such date, then, except as provided in the Lease, neither Lessor nor its representatives shall be liable to Lessee for any damage resulting from the delay in completing such construction obligations or delivering possession to Lessee and this Amendment shall remain in full force and effect unless and until it is terminated under the express provisions of Section 3 of the Amendment. If any delays in Substantially Completing the Expansion Improvements are attributable to Lessee Delays, then the Premises shall be deemed to have been Substantially Completed and delivered to Lessee on the date on which Lessor could have Substantially Completed the Premises and tendered the Premises to Lessee but for such Lessee Delays.

 

3.     Access to Premises. Lessor shall allow Lessee and Lessee's representatives to enter the Expansion Premises at least ten (10) days prior to the Expansion Commencement Date to permit Lessee to make the Expansion Premises ready for its use and occupancy, and Lessee shall not be liable for payment of Rent for the Expansion Premises during such period of early occupancy; however, all other terms and conditions of this lease amendment shall be in full force and effect. Lessee and its representatives shall not interfere with Lessor or Contractor in completing the Expansion Improvements.

 

Except to the extent of Lessor's gross negligence or willful misconduct, Lessee agrees that Lessor shall not be liable in any way for any injury, loss or damage which may occur to any of Lessee's property placed upon or installed in the Expansion Premises prior to the Commencement Date, the same being at Lessee's sole risk, and Lessee shall be liable for all injury, loss or damage to persons or property arising as a result of such entry into the Expansion Premises by Lessee or its representatives.

 

4.     Ownership of Expansion Improvements. All Expansion Improvements, whether installed by Lessor or Lessee, shall become a part of the Premises, shall be the property of Lessor and, subject to the provisions of the Lease, shall be surrendered by Lessee with the Expansion Premises, without any compensation to Lessee, at the expiration or termination of the Lease in accordance with the provisions of the Lease. Notwithstanding any provision of the Existing Lease to the contrary, Lessee shall not be obligated to remove any of the Expansion Improvements at the expiration of the term of the Lease.

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