Document:

Exhibit 10.33

 

AGREEMENT REGARDING

LEASE

 

This

AGREEMENT REGARDING LEASE (“Agreement”), dated for reference purposes and

effective as of February 14, 2003, is made and entered into by and among

PACIFIC PLAZA CARMEL VALLEY LLC, a California limited liability company

(“Landlord”), JNI CORPORATION, a Delaware corporation (“JNI”), and IOMEGA

CORPORATION, a Delaware corporation (“Iomega”), with reference to the following

facts:

 

RECITALS

 

1.                                       Landlord and JNI are parties to that certain

Office Lease dated July 11, 2000, as amended by that certain First Amendment to

Lease dated November 6, 2001,  for the

lease of those certain premises situated in the building known as Building A

and located at 10955 Vista Sorrento Parkway in the City of San Diego, County of

San Diego, State of California, being a portion of the Project known as Pacific

Plaza at Torrey Hills, which is more particularly described in the Lease.

 

2.                                       Landlord, JNI and Iomega now desire to

provide for further amendments to the Lease, to provide for the assignment by

JNI of its interest in the Lease, as amended, to Iomega, to provide for the

assumption by Iomega of certain of the obligations of JNI under the Lease, as

amended, and to provide for the release of JNI from certain liability under the

Lease, as amended, upon the terms and conditions set forth herein.

 

NOW THEREFORE, FOR VALUABLE CONSIDERATION,

THE RECEIPT AND SUFFICIENCY OF WHICH IS HEREBY ACKNOWLEDGED, LANDLORD, JNI AND

IOMEGA HEREBY AGREE AS FOLLOWS:

 

1.                                       Amendment of Lease.   On the terms and conditions

hereinafter set forth, at the Closing (as hereinafter defined) Landlord and JNI

shall amend and restate the Lease in its entirety effective as of the Effective

Date (as hereinafter defined) on the terms and conditions of the Second Amended

and Restated Lease, attached hereto as Exhibit “A” and incorporated by

reference herein (the “Second Amended and Restated Lease’). Landlord and JNI

shall execute and deliver to each other at the Closing the Second Amended and

Restated Lease. The Lease, as amended by the First Amendment to Lease and the

Second Amended and Restated Lease, is hereinafter referred to as the “Lease”.

 

2.                                       Assignment and Assumption of Lease/Release of

JNI.  On the terms and conditions hereinafter set

forth, at the Closing (as hereinafter defined) 

JNI shall assign to Iomega as of the Effective Date (as hereinafter

defined) all of JNI’s right, title and interest under the Lease and Iomega

shall assume the Lease and agree to perform the obligations of JNI thereunder

from and after the Effective Date on the terms and conditions of the Assignment

of Lease attached hereto, marked Exhibit “B”, and incorporated herein by

reference (the “Assignment of Lease”).The obligations of JNI and Iomega under

the Assignment of Lease are contingent upon Landlord’s approval of the

assignment of the Lease to Iomega by Landlord’s execution and delivery of the

Consent to Assignment of Lease and Release (“Consent to Assignment of Lease”)

in the form attached to the Assignment of Lease, including the provisions thereof

releasing JNI from certain liabilities under the Lease.  JNI and Iomega shall execute and deliver to

each other at the Closing the Assignment of Lease.   JNI and Iomega acknowledge that Landlord is required to obtain

the prior approval of it’s lender (“Landlord’s Lender”) to its Consent to

Assignment of Lease and the  Second

Amended and Restated Lease.  All rents

and other charges payable under the Restated Lease shall be prorated between

JNI and Iomega as of the Closing as provided in the Assignment of Lease. The

parties acknowledge that in accordance with the terms of the Assignment of

Lease, attached hereto, in no event shall Iomega be held liable or responsible

for, or incur any responsibility or successorship liability for, any action or

inaction, failure or conduct, or breach of duty by JNI or anyone employed by or

acting on behalf of JNI. Iomega assumes no responsibility for the actions or

inactions, duties, liabilities, or alleged liabilities of JNI and no obligation

arising under the Lease from

 

1

 

any

event, matter or duty occurring on any date prior to the Effective Date of the

Assignment  shall create any obligation

or liability of Iomega.

 

3.                                       Payments by JNI to Landlord . JNI shall pay to Landlord the amount of

Two Hundred Forty-three Thousand Three Hundred Thirteen Dollars ($243,313) (the

“Tenant Improvement Fund Contribution”), as a contribution by JNI to the Tenant

Improvement Fund (as defined in the Lease) to be made available by Landlord to

Iomega, together with the Tenant Improvement Allowance, to construct Tenant’s

Improvement Work pursuant to the Lease. In addition, JNI shall pay to Landlord

the amount of One Hundred Fifty-four Thousand Five Hundred Eighty-nine Dollars

and 70/100 Cents ($154,589.70)(the “Advance Base Rent Payment”),

representing  an advance payment of Base

Rent (as defined in the Lease) due under the Lease for the period from March 1,

2003 through June 30, 2003, of Two Hundred Ninety-five Thousand Thirty-one and

05/100 Dollars ($295,031.05), less a credit of One Hundred Forty Thousand Four

Hundred Forty-one and 35/100 Dollars ($140,441.35) for the cash security

deposit held by Landlord.  Additionally,

JNI shall pay to Landlord the amount (“Lease Modification Payment”) payable by

JNI to Landlord under the Lease Modification Agreement dated February 14, 2003,

between Landlord and JNI. The  Tenant

Improvement Fund Contribution, Advance Base Rent Payment and Lease Modification

Payment shall be paid by JNI by delivery to Landlord at the Closing of three

(3)  bank or cashiers checks payable to

Landlord in the amount of the Tenant Improvement Fund Contribution,  the Advance Base Rent Payment and the Lease

Modification Payment, respectively.

 

4.                                       Payment by JNI to Iomega.  JNI

shall pay to Iomega the amount of One Million Two Hundred Sixteen Thousand Six

Hundred Forty-two and 20/100 Dollars ($1,216,642.20) (the “Lease Assumption

Payment”). The Lease Assumption Payment shall be paid by JNI by delivery to

Iomega at the Closing of a bank or cashiers check payable to Iomega in the

amount of the Lease Assumption Payment.

 

5.                                       Payment of Commissions to Brokers.  At

the Closing, as hereinafter defined, JNI shall pay to CB Richard Ellis, Inc.,

the real estate agent representing Iomega 

(“Iomega Broker”), the sum of Two Hundred Four Thousand Forty-nine

Dollars and Seventeen Cents ($204,049.17) (“Iomega Broker Fee”) and to Kelley

Commercial, the real estate broker representing JNI (“JNI Broker”), the sum of

Fifty-one Thousand Twelve and 29/100 Dollars ($51,012.29) (“JNI Broker

Fee”)(collectively, the “Brokers Fees”). 

The Brokers Fees shall be paid by JNI by delivery to the Iomega Broker

and the JNI Broker of a bank or cashiers checks payable to them in the amount

of the Iomega Broker Fee and JNI Broker Fee, respectively.  JNI, Iomega

 and Landlord represent and warrant to each other that they have had no

dealings with any real estate broker or agent, other than the JNI Broker and

Iomega Broker in connection with the transactions contemplated by this

Agreement, and that it knows of no other real estate broker or agent who is

entitled to any commission or finder’s fee in connection with this transaction.

JNI, Iomega and Landlord agree to indemnify and hold harmless each other from

and against any and all claims, demands, losses, liabilities, lawsuits,

judgments, costs and expenses (including, without limitation, attorneys’ fees

and costs) with respect to any leasing commission or equivalent compensation

alleged to be owing on account of their respective dealings with any real

estate broker or agent other than the JNI Broker or the Iomega Broker in

connection with the transactions contemplated by this Agreement. JNI, Iomega

and Landlord   acknowledges that neither

Landlord or Iomega shall have any obligation to pay any commission to the

Iomega Broker or the JNI Broker in connection with the transactions

contemplated by this Agreement, except as provided in the preceding sentence.

 

6.                                       Closing.  The closing of the

transactions contemplated by this Agreement (the “Closing”) shall take place at

the office of Landlord at 4350 La Jolla Village Drive, Suite 150, San Diego,

CA  92122. The Closing shall be at 10:00

o’clock a.m. on the date which is the later of (a)  February 21, 2003, or (ii) such other date as may be mutually

approved in writing by the parties (the “Closing Date”) . In the event the

Closing has not occurred on or before February 27, 2003, this Agreement shall

terminate and the parties shall be released from all obligations hereunder

arising after the date of such termination.

 

7.                                       Representations and Warranties

 

(a)                                  Representations and Warranties of JNI.  In

order to induce Iomega and Landlord to perform their respective obligations

under this Agreement, JNI hereby represents and warrants to Iomega and

 

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Landlord

as follows: (i) JNI is a corporation, duly organized, validly existing and in

good standing under the laws of the State of Delaware; (ii) JNI has all

necessary right, power, authority, and legal capacity to enter into this

Agreement and to perform its obligations pursuant to this Agreement; (iii) each

of the persons executing on behalf of JNI is authorized to do so; (iv) JNI is

not in default of it’s obligations under the Lease; and (v) to the best of the

actual knowledge of JNI, Landlord is not in default in the performance of its

obligations under the Lease. Concurrently with the execution of this Agreement,

JNI shall deliver to Landlord and Iomega an original certificate of the

secretary of Tenant certifying the adoption of resolutions by the board of

directors of JNI approving the terms and conditions of this Agreement and

authorizing the persons executing  this

Agreement to execute same for and on behalf of JNI.

 

(b)                                 Representations and Warranties of Iomega.  In

order to induce JNI and Landlord to perform their respective obligations under

this Agreement, Iomega hereby represents and warrants to JNI and Landlord as

follows: (i) Iomega is a corporation, duly organized, validly existing and in

good standing under the laws of the State of Delaware; (ii) Iomega has all

necessary right, power, authority, and legal capacity to enter into this

Agreement and to perform its obligations pursuant to this Agreement; and (iii)

each of the persons executing on behalf of Iomega is authorized to do so.  Concurrently with the execution of this

Agreement, Iomega shall deliver to Landlord an original certificate of the

secretary of Iomega certifying the adoption of resolutions by the board of

directors of Iomega approving the terms and conditions of this Agreement and

authorizing the persons executing this Agreement to execute same for and on

behalf of Iomega.

 

(c)                                  Representations and Warranties of Landlord.  In

order to induce Iomega and JNI to perform their respective obligations under

this Agreement, Landlord hereby represents and warrants to Iomega and JNI as

follows: (i) Landlord is a limited liability company, duly organized, validly

existing and in good standing under the laws of the State of California; (ii)

Landlord has all necessary right, power, authority, and legal capacity to enter

into this Agreement and to perform its obligations pursuant to this

Agreement;  (iii) each of the persons

executing on behalf of Landlord is authorized to do so; and (iv) to the best of

Landlord’s actual knowledge, JNI is not in default in the performance of its

obligations under the Lease. 

Concurrently with the execution of this Agreement, Landlord shall

deliver to JNI and Iomega an original certificate of the secretary of Coast

Income Properties, Inc.(“Coast”), the manager of Coast Pacific Plaza LLC, the

manager of Landlord, certifying the adoption of resolutions by the board of

directors of Coast approving the terms and conditions of this Agreement and

authorizing the persons executing this Agreement to execute same for and on

behalf of Landlord.

 

8.                                       Conditions Precedent to Performance and

Closing .  The respective obligations of Landlord, JNI

and Iomega under this Agreement are subject to the satisfaction, at or before the

Closing, of all of the conditions set out below in this Section 8. A party may

waive in writing any or all of these conditions, in whole or in part, to the

extent such condition is for the benefit of the waiving party; provided,

however, that no such waiver of condition shall constitute a waiver by the

waiving party of any of its rights or remedies, at law or in equity, if any

party shall be in default of any of its representations, warranties or

covenants under this Agreement.

 

(a)                                  Performance by Landlord. 

Landlord shall have performed, satisfied and complied with all

covenants, agreements and conditions required by this Agreement to be performed

or complied with by Landlord on or before the Closing Date.

 

(b)                                 Performance by JNI.  JNI

shall have performed, satisfied and complied with all covenants, agreements and

conditions required by this Agreement to be performed or complied with by JNI

on or before the Closing Date.

 

(c)                                  Performance by Iomega. 

Iomega shall have performed, satisfied and complied with all covenants,

agreements and conditions required by this Agreement to be performed or

complied with by Iomega on or before the Closing Date.

 

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(d)                                 Approval of Landlord’s Lender. Landlord’s Lender shall have issued to

Landlord it’s written approval and consent, in form reasonably acceptable to

Landlord, of the terms of the Second Amended and Restated Lease and the

Assignment of Lease (the “Lender’s Consent”).

 

(e)                                  Subordination, Non-disturbance and Attornment

Agreement. Landlord’s Lender

and Iomega shall have entered into a subordination, non-disturbance and

attornment agreement, in form reasonably acceptable to Landlord’s Lender and

Iomega, (“SNDA “) containing the provisions provided in the Lease.

 

(f)                                    Certificates Insurance. Iomega shall have delivered to Landlord

certificates of insurance of the type provided for in Section 5.5 of the Lease

(the “Insurance Certificates”).

 

(g)                                 Closing of Lease Modification Agreement.  The

concurrent Closing of the transactions contemplated under the Lease

Modification Agreement dated February _14, 2003 (the “Lease Modification

Agreement”), between JNI, Landlord and 

PPCV BLDGS B & C, LLC, a California limited liability company

(“PPCV”) relating to the Office Lease dated  July 11, 2000 between 

PPCV, an affiliate of Landlord and successor in interest to Landlord,

and JNI, for the lease of those certain premises located at 10945 Vista

Sorrento Parkway, San Diego, California (the “Building B Lease”).

 

9.                                       Consummation of the Transaction.  The

consummation of the transactions contemplated herein, the Closing, shall occur

at the place, on the date and at the time as specified in Section 6 above. The

obligations of the parties at the Closing are as follows:

 

(a)                                  JNI’s Obligation at Closing.  At

the Closing, JNI shall deliver or cause to be delivered to the party entitled

thereto: (i) triplicate originals of the Second Amended and Restated Lease

dated as of the Closing Date duly executed by JNI; (ii) triplicate originals of

the Assignment of Lease dated as of the Closing Date duly executed by JNI;

(iii) a bank or cashier’s check payable to Landlord in the amount of the Tenant

Improvement Fund Contribution; and (iv) a bank or cashier’s check payable to

Landlord in the amount of the Lease Modification Costs Payment; (v) a bank or

cashier’s check payable to Iomega in the amount of the Lease Assumption

Payment; (v) a bank or cashier’s check payable to JNI Broker in the amount of

the JNI Broker Fee; and (vi) a bank or cashier’s check payable to Iomega Broker

in the amount of the Iomega Broker Fee.

 

(b)                                 Iomega’s Obligation at Closing.  At

the Closing, Iomega shall deliver or cause to be delivered to the party

entitled thereto:(i) triplicate originals of the Assignment of Lease  dated as of the Closing Date duly executed

by Iomega; (ii) duplicate originals of the SNDA duly executed by Iomega; (iii)

originals of the Insurance Certificates.

 

(c)                                  Landlord’s Obligation at Closing.  At

the Closing, Landlord shall deliver or cause to be delivered to the party

entitled thereto: (i) triplicate originals of the Second Amended and Restated

Lease dated as of the Closing Date duly executed by Landlord; (ii) triplicate

originals of the Assignment of Lease dated as of the Closing Date with the

Consent to Assignment of Lease  attached

thereto the duly executed by Landlord; (iii) duplicate originals of the SNDA

duly executed by Landlord; and (iv) the Lender’s Consent.

 

 

10.                                 Effective Date.  For

the purposes of this Agreement, the term “Effective Date” shall mean the

Closing Date.

 

11.                                 General Provisions.

 

(a)                                  Effect of Headings; Exhibits.  The

subject headings of the Sections of this Agreement are included for purposes of

convenience only and shall not affect the construction or interpretation of any

of its provisions.  All exhibits to this

Agreement are incorporated herein in their entirety.

 

4

 

(b)                                 Entire Agreement; Modification; Waiver. 

This Agreement, together with the exhibits attached hereto and  any other agreements referenced herein,

constitutes the entire agreement between the parties pertaining to the subject

matter contained in it.  This

Agreement,, together with the exhibits attached hereto and  any other agreements referenced herein,

supersede all prior and contemporaneous agreements (other than those entered

into by writing simultaneously with this Agreement), representations, and

understandings of the parties.  No

supplement, modification, or amendment of this Agreement shall be binding

unless executed in writing by all parties. 

No waiver of any of the provisions of this Agreement shall be deemed, or

shall constitute, a waiver of any other provisions, whether or not similar, nor

shall any waiver constitute a continuing waiver.  No waiver shall be binding unless executed in writing by the

party making the waiver.

 

(c)                                  Counterparts. 

This Agreement may be executed in one or more counterparts, each of

which shall be deemed an original, but all of which together shall constitute

one and the same instrument.

 

(d)                                   Parties-in-Interest.  Nothing in this Agreement, whether express

or implied, is intended to confer any rights or remedies under or by reason of

this Agreement on any persons other than the parties to it and their respective

successors and assigns.  Nothing in this

Agreement is intended to relieve or discharge the obligation or liability of

any third person to any party to this Agreement, nor shall any provision give

any third person any right of subrogation or action over or against any party

to this Agreement.

 

(e)                                  Assignment.  This Agreement shall be

binding on and shall inure to the benefit of the parties to it and their

respective heirs, legal representatives, successors, and assigns; provided,

however, no party may assign any of its rights under this Agreement without the

prior written consent of the other parties. Any assignment by any party of any

of its rights under this Agreement, without such prior written consent, shall

be null and void and of no force or effect and shall constitute a default by

the assigning party under this Agreement.

 

(f)                                    Recovery of Litigation Costs.  If

any legal action or arbitration or other proceedings is brought for the

enforcement of this Agreement, or because of an alleged dispute, breach,

default, or misrepresentation in connection with any of the provisions of this

Agreement, the successful or prevailing party or parties shall be entitled to

recover reasonable attorneys’ fees and other costs incurred in that action or

proceeding, in addition to any other relief to which it or they may be

entitled.

 

(g)                                 Nature and Survival of Representations and

Covenants.  All representations, warranties, covenants,

and agreements of the parties contained in this Agreement, or in any

instrument, certificate, opinion, or other writing provided for in it, shall

survive the Closing.

 

(h)                                   Severability.  Each term, covenant, condition, or provision

of this Agreement shall be viewed as separate and distinct, and in the event

that any such term, covenant, condition or provision shall be held by a court

of competent jurisdiction to be invalid, the remaining provisions shall

continue in full force and effect.

 

(i)                                       Necessary Acts.  Each party to this Agreement agrees to

perform any further acts and execute and deliver any further documents that may

be reasonably necessary to carry out the provisions of this Agreement.

 

(j)                                     Notices.  Service of all notices under

this Agreement shall be sufficient if given personally or mailed to the party

involved at its respective address hereinafter set forth, or to such address as

such party may provide in writing from time to time.  Any such notice mailed to such address shall be effective three

(3) days after the date it is deposited in the United States mail, duly

addressed, and with postage prepaid:

 

	

  NOTICE TO LANDLORD:

  	

   

  	

  PACIFIC PLAZA CARMEL

  VALLEY LLC

  
	

   

  	

   

  	

  c/o Coast Income

  Properties, Inc.

  
	

   

  	

   

  	

  Attn: Thomas G. Blake,

  President

  

 

5

 

	

   

  	

   

  	

  4350 La Jolla Village

  Drive, Suite 150

  
	

   

  	

   

  	

  San Diego, California  92122

  
	

   

  	

   

  	

   

  
	

  NOTICE TO JNI:

  	

   

  	

  JNI Corporation

  
	

   

  	

   

  	

  Attn: Paul Kim, Chief

  Financial Officer

  
	

   

  	

   

  	

  10945 Vista Sorrento

  Parkway

  
	

   

  	

   

  	

  San Diego, CA 92130

  
	

   

  	

   

  	

   

  
	

  NOTICE TO IOMEGA:

  	

   

  	

  Iomega Corporation

  
	

   

  	

   

  	

  Attn: General Counsel

  
	

   

  	

   

  	

  4435 Eastgate Mall

  
	

   

  	

   

  	

  San Diego, CA, CA 92121

  

 

(k)                                  Gender; Number. Whenever the context of this Agreement

requires, the masculine gender includes the feminine or neuter, and the

singular number includes the plural.

 

(l)                                     Time of Essence. 

Time is of the essence in the performance of all obligations under this

Agreement.

 

[Balance of page intentionally left blank]

 

6

 

IN WITNESS WHEREOF, the

parties to this Agreement have duly executed it effective as of the date  first above-written.

 

 

	

  “Landlord”

  	

  “JNI”

  
	

   

  	

   

  
	

  PACIFIC PLAZA CARMEL

  VALLEY LLC,

  a California limited liability company

  	

  JNI CORPORATION, a

  Delaware corporation,

  
	

  By: COAST PACIFIC PLAZA LLC, a California

  	

  By:

  	

   

  	

   

  
	

  limited liability company, Its Manager

  	

  Name: 

  	

  John Stiska

  
	

  By: COAST INCOME PROPERTIES, INC.,

  a California corporation, Its Manager

  	

  Its:

  	

  Chairman of the Board

  
	

   

  	

   

  
	

  By:

  	

   

  	

   

  	

  By:

  	

   

  	

   

  
	

   

  	

  Thomas G. Blake, President

  	

  Name:

  	

  Paul Kim

  
	

   

  	

  Its:

  	

  Chief Financial Officer

  
	

   

  	

   

  
	

   

  	

   

  
	

  “Iomega”

  	

   

  
	

   

  	

   

  
	

  IOMEGA CORPORATION, a

  Delaware

  corporation

  	

   

  
	

   

  	

   

  
	

  By:

  	

   

  	

   

  	

   

  
	

  Name:

  	

  Anna Aguirre

  	

   

  
	

  Its:

  	

  Vice President, Human

  Resources

  	

   

  
	

   

  	

  and Facilities

  	

   

  
											

 

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EXHIBIT

“A”

 

AMENDED

AND RESTATED LEASE

 

[ATTACHED]

 

8

 

ASSIGNMENT

AND ASSUMPTION OF LEASE

 

THIS ASSIGNMENT AND ASSUMPTION OF LEASE (this “Assignment”) dated for

reference and effective as of February 27, 2003 (the “Effective Date”), is made

and entered into by and between JNI Corporation, a Delaware corporation

(“Assignor”), and Iomega Corporation, a Delaware corporation (“Assignee”), with

reference to the following facts.

 

RECITALS

 

A.                                   Assignor, as Tenant, and PACIFIC PLAZA CARMEL

VALLEY LLC, a California limited liability company, as Landlord, are parties to

that certain Office Lease dated July 11, 2000, as amended by that certain First

Amendment to Lease dated November 6, 2001, and that certain Second Amended and

Restated Lease dated February 27, 2003 (collectively, the “Lease”), for the

lease of those certain premises consisting of the entire second and third

floors of the building known as Building A and located at 10955 Vista Sorrento

Parkway in the City of San Diego, County of San Diego, State of California,

being a portion of the Project known as Pacific Plaza at Torrey Hills, which is

more particularly described in the Lease.

 

B.                                      Assignor desires to assign and transfer to

Assignee, as of the Effective Date, certain of Assignor’s rights, title and

interests in and to, and obligations under the Lease, and Assignee desires to

assume, as of the Effective Date, certain of Assignor’s rights, title,

interests and obligations in, to and under the Lease as set forth herein.

 

NOW, THEREFORE, FOR GOOD AND VALUABLE CONSIDERATION, THE RECEIPT AND

ADEQUACY OF WHICH IS HEREBY ACKNOWLEDGED, THE PARTIES HERETO AGREE AS FOLLOWS:

 

1.                                       Assignment.   Assignor hereby grants,

transfers, conveys, bargains, assigns and delegates to Assignee as of the

Effective Date, all of its rights, title and interests in, to and under the

Lease.

 

2.                                       Assumption.                            Assignee hereby accepts such assignment and

delegation by Assignor and agrees to assume as of the Effective Date, the

obligations of Assignor under the Lease accruing on or after the Effective

Date. In no event shall Iomega be held liable or responsible for, or incur any

responsibility or successorship liability for, any action or inaction, failure

or conduct, or breach of duty by JNI or anyone employed by or acting on behalf

of JNI. Iomega assumes no responsibility for the actions or inactions, duties,

liabilities, or alleged liabilities of JNI. No obligation arising under the

Lease from any event, matter or duty occurring on any date prior to the

Effective Date of this Assignment  shall

create any obligation or liability of Assignee.

 

3.                                       Indemnification. 

Assignor shall indemnify, defend and hold harmless Assignee and anyone

employed by or acting on behalf of Assignee from and against any and all

liabilities, fines, penalties, losses, damages, costs and expenses (including,

without limitation, reasonable attorneys’ fees and costs, as incurred),

demands, causes of action, claims or judgments (collectively “Claims”) arising

under the Lease from any event, matter or duty occurring on any date prior to

the Effective Date of this Assignment.

 

4.                                       Notices.   Service of all notices to

Assignee under the Lease from and after the date of this Assignment shall be as

follows, until changed pursuant to the provisions of the Lease:

 

Notice to Assignee:                                      Iomega Corporation

Attn: General Counsel

 

9

 

4435 Eastgate Mall

San Diego, CA, CA 92121

 

5.                                       Survival.  This Assignment and the

provisions hereof shall inure to the benefit of and

 be

binding upon the parties to this Assignment and their respective successors,

heirs and permitted assigns.

 

IN WITNESS WHEREOF, the parties hereto have executed this Assignment as

of the date first set forth above.

 

	

  “Assignor”

  	

   

  	

   

  	

  “Assignee”

  	

   

  
	

   

  	

   

  	

   

  	

   

  	

   

  
	

  JNI CORPORATION, a

  Delaware

  corporation,

  	

   

  	

  IOMEGA CORPORATION, a

  Delaware corporation 

  
	

   

  	

   

  	

   

  	

  By:

  	

   

  	

   

  
	

  By:

  	

   

  	

   

  	

   

  	

  Name:

  	

  Anna Aguirre

  	

   

  
	

  Name:

  	

  John Stiska

  	

   

  	

  Its:

  	

  Vice President, Human

  Resources and Facilities

  
	

  Its:

  	

  Chairman of the Board

  	

   

  	

   

  	

   

  
	

   

  	

   

  	

   

  	

   

  
	

   

  	

   

  	

   

  	

   

  	

   

  
	

  By:

  	

   

  	

   

  	

   

  	

   

  	

   

  
	

  Name:

  	

  Paul Kim

  	

   

  	

   

  	

   

  	

   

  
	

  Its:

  	

  Chief Financial Officer

  	

   

  	

   

  	

   

  	

   

  
										

 

 

CONSENT

TO ASSIGNMENT OF LEASE AND RELEASE

 

PACIFIC PLAZA CARMEL VALLEY,

LLC, a California limited liability company, the Landlord under the Lease

described in the foregoing Assignment and Assumption of Lease, hereby consents

to the assignment  of the Lease by

Assignee to Assignor upon the terms and conditions thereof. Landlord acknowledges

and agrees that, in accordance with the terms of the Assignment of Lease above,

in no event shall Assignee be held liable or responsible for, or incur any

responsibility or successorship liability for, any action or inaction, failure

or conduct, or breach of duty by Assignor or anyone employed by or acting on

behalf of Assignor. Assignee assumes no responsibility for the actions or

inactions, duties, liabilities, or alleged liabilities of Assignee and no

obligation arising under the Lease from any event, matter or duty occurring on

any date prior to the Effective Date of the Assignment  shall create any obligation or liability of

Assignee. Landlord hereby releases Assignor from any obligation or liability

under the Lease after the Effective Date of the Assignment, except to the

extent accruing

 

[Balance of page intentionally left blank]

 

10

 

on or before the Effective Date of the

Assignment or arising from the acts or omissions of Assignor, its employees, agents,

servants or contractors, on or before the Effective Date of the Assignment .

 

	

  Dated: 

  	

   

  	

  , 2003

  	

  “Landlord”

  
	

  .

  	

   

  
	

   

  	

  PACIFIC PLAZA CARMEL

  VALLEY, LLC, a California limited

  
	

   

  	

  liability company

  
	

   

  	

  By:

  	

  Coast Pacific Plaza, LLC,

  a California

  
	

   

  	

   

  	

  limited liability company,

  Its Manager

  
	

   

  	

   

  	

  By:

  	

   

  	

  Coast Income Properties,

  Inc,. a

  
	

   

  	

   

  	

   

  	

  California corporation,

  Its Manager

  
	

   

  	

   

  	

   

  
	

   

  	

   

  	

   

  	

  By:

  	

   

  
	

   

  	

   

  	

   

  	

  Thomas G. Blake, President

  

 

11EXHIBIT 10.5

 

 

 

 

March
27, 2003

 

 

 

Mr. Alexander P. Coleman

Dresdner Kleinwort Capital

75 Wall Street, 34th Floor

New York, NY 10005

 

Re:  March 31, 2003, Interest Payment

and Amendment to CapitalSource Loan Agreement

 

Dear Alex:

 

This letter agreement concerns
the interest payment (the “Interest Payment”) of $856,665 that is due on March
3l, 2003, from Gardenburger, Inc. (“Gardenburgcr”), to Dresdner Kleinwort
Benson Private Equity Partners LP (“Dresdner”) under the terms of the Amended
and Restated Convertible Subordinated Note, dated January 10, 2002, between Gardenburger and Dresdner (the
“Note”).

 

Dresdner and Gardenburger
agree to the following:

 

1.             Gardenburger
will pay $430,000  to Dresdner on
March 31, 2003.

 

2.             The unpaid amount of the Interest Payment (approximately
$426,665) will bear interest at a rate of 10 percent, in accordance with
Section 2 of the Note, beginning on March 31, 2003, until it is paid in full,
as  provided below.

 

3.             By no later than June 30, 2003, Gardenburger will pay
the unpaid balance of the Interest Payment, plus accrued interest on such
amount referred to in paragraph 2, to Dresdner.

 

4.             The deferral of one-half the Interest Payment as agreed
above will not constitute an Event of Default under the Note; however, any
failure to make any payments referenced herein shall constitute an Event of
Default.

 

 

 

 

Gardenburger also hereby
notifies Dresdner that it intends to amend the Revolving Credit and Term Loan
Agreement, dated as of January 10, 2002, between Gardenburger and CapitaISource
Finance LLC, to reduce the minimum fixed charge ratio allowed under the
agreement from 1.25:1 to 1.125:1.  By
signing in the space provided below, Dresdner will agree in a separate writing
to consent to this amendment to the CapitalSource loan agreement subject to
review of final documentation.

 

Nothing contained herein
shall constitute a waiver of  or
consent by Dresdner to any existing Event of Default that heretofore has
occurred or hereafter occurs, or modify any term of the Note or the Purchase
Agreement (as defined in the Note), except as expressly set forth herein.

 

Please contact me if you
have any questions or comments.

 

	
   

  	
   

  	
   

  
	
   

  	
  Very truly yours,

  
	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  /s/

  	
  Scott C. Wallace

  
	
   

  	
   

  	
  Scott C. Wallace

  
	
   

  	
   

  	
  Chairman, President and CEO

  
	
   

  	
   

  	
  Gardenburger, Inc.

  
	
   

  	
   

  	
   

  
	
  Dresdner Kleinwort Benson

  	
   

  	
   

  
	
  Private Equity Partners LP

  	
   

  	
   

  
	
   

  	
   

  	
   

  

 

	
  By:

  	
  Dresdner Kleinwort Capital LLC, its General
  Partner

  
	
  By:

  	
  Private Equity Employees LLC, its General Partner

  

 

	
  By:

  	
  /s/Alexander P. Coleman

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  Alexander P. Coleman

  
	
   

  	
   

  
	
  Its:

  	
  Managing Investment Partner

  
	
   

  	
   

  

 

 

 

2

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