Document:

CONSENT AND AGREEMENT

Exhibit

10.52

 

SUBLEASE

CONSENT AND AGREEMENT

 

This Sublease Consent and Agreement (“Agreement”)

dated for reference purposes only as February 7, 2002, is made by and

among SQUARE 24 ASSOCIATES, a District of Columbia limited partnership (d.b.a.

SQUARE 24 ASSOCIATES, L.P.) (“Landlord”),  ZAMBA CORPORATION, a Delaware corporation (“Tenant”),

and PARK PLACE CAPITAL CORPORATION, a California corporation (“Subtenant”).

 

RECITALS:

 

A.            Landlord

and Tenant are parties to that certain Office Lease dated as of September 14,

1998 (the “Original Master Lease”), by and between Landlord and The

Quicksilver Group (“Quicksilver”) for certain premises within that

certain building commonly known as “Hacienda West”, located at 3875 Hopyard

Road, Pleasanton, California (the “Original Premises”), as more

particularly described in the Original Master Lease.

 

B.            Quicksilver

and Racotek, Inc., a Delaware corporation (“Racotek”), entered into that

certain Agreement and Plan of Merger and Reorganization dated as of July 6,

1998 (the “Assignment”) in which Quicksilver was merged into Racotek,

and Racotek assumed all of Quicksilver’s interest under the Lease.  Racotek subsequently changed its name to

Zamba Corporation, a Delaware corporation.

 

C.            The

Original Master Lease was amended by that certain First Amendment to Lease

dated as of October 15, 1998 (the “First Amendment”), and that certain

Second Amendment to Lease dated as of December 21, 2000 (the “Second

Amendment”), pursuant to which, among other things, the parties added

additional space (the “Expansion Space”) to the Original Premises and

extended the term of the Original Master Lease.  The Original Premises, together with the Expansion Space, is

collectively referred to herein as the “Premises”.  The Original Master Lease, as amended by the

Assignment, the First Amendment and the Second Amendment, is referred to herein

as the “Master Lease”.

 

D.            Tenant

desires to sublease all of the Premises (the “Subleased Premises”) to

Subtenant in accordance with that certain sublease (the “Sublease”)

dated January 9, 2002, between Tenant and Subtenant, a copy of which is

attached hereto as Exhibit A.

 

E.             Landlord

is willing to agree to consent to the Sublease upon the terms and conditions of

this Agreement.

 

AGREEMENT:

 

NOW, THEREFORE, in consideration of the foregoing and

the covenants, promises and undertakings set forth herein, and for other good

and valuable consideration, the receipt and sufficiency of which is hereby

acknowledged, the parties hereto agree as follows:

 

1.          Landlord’s Consent. 

Landlord hereby consents to the Sublease in the form attached hereto as

Exhibit A.  The Sublease shall not

be amended or modified without the prior

 

 

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written consent of Landlord. 

This consent is granted only upon the terms and conditions of this

Agreement, and Tenant and Subtenant hereby agree to each of such terms and

conditions.

 

2.          Master Lease.

 

2.1              The Sublease shall be subject and

subordinate at all times to the Master Lease and to all of its provisions,

covenants and conditions.  Landlord

shall not be bound or estopped in any way by any of the terms, covenants, or

conditions of the Sublease, nor shall any provision of the Sublease or this

Agreement operate as an express or implied consent to or approval or

ratification by Landlord of any specific provisions of the Sublease or as an

endorsement, representation or warranty of any kind by Landlord regarding the

Premises, Tenant, the Master Lease or any other matter, all of which are

expressly disclaimed.  In case of any

conflict between the provisions of the Master Lease and the provisions of the

Sublease, as between Landlord and Tenant, the provisions of the Master Lease

shall prevail unaffected by the Sublease. 

Tenant and Subtenant agree that the Sublease is hereby amended to

conform to the terms and conditions of this Agreement.

 

2.2              Notwithstanding any provision of

the Sublease to the contrary, including, without limitation, anything contained

in the paragraphs entitled “Rent”, “Operating Expenses” and “Miscellaneous”,

nothing contained in the Sublease shall alter, amend, expand or reduce any of

the obligations of Landlord or Tenant under the Master Lease, nor impose on

Landlord any obligation to provide notice to, or obtain consent from, Subtenant

with respect to amendments, defaults, waivers or any other matters pertaining

to the Master Lease or the Premises. 

Except to the extent the Sublease becomes a direct lease between

Landlord and Subtenant pursuant to Section 4.1 below, all communications

with Landlord regarding the Master Lease, the Premises, the Sublease or

Subtenant shall be recognized by Landlord only if made by Tenant, not

Subtenant, including without limitation, requests for approvals as required

under the Master Lease and requests for any service to be supplied by Landlord

to the Subleased Premises.  Tenant

consents that Landlord may elect to communicate directly with Subtenant

regarding Subtenant’s occupancy of the Subleased Premises or the Sublease

without any implied waiver of this provision. 

Tenant shall indemnify, protect, defend and hold Landlord harmless from

any liability of, or claim against Landlord by Subtenant which arises from

Tenant’s failure to timely provide notice to Landlord of requests made by

Subtenant to Tenant, as the sublandlord under the Sublease.

 

2.3              Notwithstanding any provision to

the contrary contained in the paragraph entitled “Operating Expenses” of the

Sublease, Tenant and Subtenant acknowledge and agree that, pursuant to Section

13 of the Schedule to the Original Master Lease, the Base Year for the Original

Premises is 1998, and, pursuant to Section 9 of the Second Amendment, the Base

Year for the Expansion Space is 2001.

 

3.          Relationship with Landlord.

 

3.1              Except as otherwise provided by

law, nothing contained in this Agreement or the Sublease shall be deemed to

create privity of contract between Landlord and Subtenant, to make Subtenant a

third party beneficiary of the provisions of the Master Lease, or to create or

permit any direct right of action by Subtenant against Landlord for breach of

the covenant of quiet enjoyment or any other covenant of Landlord under the

Master Lease. Landlord shall have no obligations nor incur any liability to

Subtenant with respect to any warranties of any nature,

 

2

 

whether pursuant to the Master Lease or the Sublease, or otherwise,

including, without limitation, any warranties respecting use, compliance with

zoning, construction, or fitness of the Subleased Premises for Subtenant’s

purposes.

 

3.2              Tenant and Subtenant acknowledge

that, pursuant to Section 4 of the Sublease, Subtenant is required to pay the

rental amounts required thereunder directly to Landlord.  Such payments to Landlord shall satisfy and

discharge Subtenant’s obligation for the payment of rent under the Sublease to

the full extent of such payments made to Landlord.

 

4.          Termination of Master Lease.

 

4.1              Any termination of the Master

Lease for any reason shall constitute, without further act or deed, a

termination of the Sublease, provided that Landlord shall have the option, at

its sole election, to:

 

(a)           elect by written notice to continue

the Sublease solely with respect to the Subleased Premises without any

additional or further agreement of any kind on the part of Subtenant and with

the same force and effect as if Landlord, as landlord, and Subtenant, as

tenant, had entered into a lease as of the effective date of such expiration,

termination or surrender of the Master Lease for a term equal to the then

unexpired term of the Sublease, and containing the same terms and conditions as

those contained in the Sublease (except as specifically provided in this

Agreement), in which event Landlord shall assume Tenant’s obligations as

sublandlord thereunder and Subtenant shall attorn to Landlord as landlord on

such terms and conditions.

 

(b)           enter into a lease directly with

Subtenant for the balance of the term remaining under the Sublease, for the

same consideration and upon the same terms and conditions as in the

Sublease.  If Landlord exercises such

option, Landlord and Subtenant shall enter into a new lease directly between

Landlord and Subtenant upon such terms and conditions.

 

4.2              If Landlord elects to proceed

under either Sections 4.1(a) or 4.1(b) above, in no event shall Landlord

be:

 

(a)           bound by or liable for any rent paid

by Subtenant to Tenant; or any security deposit paid by Subtenant to Tenant

that is not transferred to Landlord;

 

(b)           liable for any act or omission of

Tenant or for any default of Tenant under the Sublease which occurred prior to

Landlord’s assumption;

 

(c)           subject to any defenses or offsets

that Subtenant may have against Tenant which arose prior to Landlord’s

assumption; or

 

(d)           bound by any changes or modifications

made to the Sublease without the written consent of Landlord.

 

5.          Non-Release of Tenant.  Nothing contained in this Agreement or the Sublease, including,

without limitation, Subtenant’s obligation to pay Landlord directly, shall be

deemed to alter the primary liability of Tenant to pay the Rent and perform all

of Tenant’s obligations under the Master Lease (including, without limitation,

the payment of all bills rendered by Landlord for

 

3

 

charges incurred by Subtenant for services and materials supplied to

the Subleased Premises), nor release Tenant from its obligations under the

Master Lease, nor waive any rights that Landlord may now have or later acquire

against Tenant under the Master Lease, except to the extent of Rent received by

Landlord from Subtenant.  The acceptance

of any sums by Landlord from Subtenant or any third party shall not be deemed a

waiver by Landlord of Tenant’s obligation to pay Rent or any other amounts as

provided in the Master Lease.  The

performance of any obligation required of Tenant under the Master Lease by

Subtenant or any third party shall not be deemed a waiver by Landlord of

Tenant’s duty to perform such obligation. 

Any act or omission by Subtenant or any of its agents, employees or

invitees in, on, or about the Premises or the Building, or any act by Subtenant

or any of its agents, employees or invitees pursuant to the terms and

conditions of the Sublease, shall constitute the act or omission of

Tenant.  Any sums that may be payable

under the Master Lease by virtue of any act or omission of Subtenant shall be

the obligation of Tenant to pay and discharge in accordance with the terms of

the Master Lease.

 

6.             Further

Transfers.  The consent of Landlord

is limited solely to the Sublease.  Any assignment

of the Master Lease or the Sublease or further subletting of any part of the

Premises shall be subject to Landlord’s consent as provided in the Master

Lease.  Landlord may consent in its

absolute and sole discretion to subsequent subleases and assignments of the

Sublease or any amendments or modifications to the Sublease without notifying

Tenant or anyone else liable under the Master Lease, and without obtaining

their consent.  No such action by

Landlord will relieve those persons from any liability to Landlord or otherwise

with regard to the Subleased Premises, and Tenant and Subtenant waive any

provision of California law to the contrary, including without limitation

Sections 2787 to 2855, inclusive, of the California Civil Code.  In addition, no provision of the Sublease or

this Agreement shall limit Landlord’s right, in the event of a proposed future

assignment or subletting of any portion of the Premises, including the

Subleased Premises, to recapture such portion of the Premises, including the

Subleased Premises, affected by that proposed assignment or subletting, as

provided in Section 17.F) of the Master Lease, or to receive any payment

required under Section 17.E of the Master Lease, and, without limiting the

generality of any of any other provision of this Agreement relating to the

Sublease, no provision of the Sublease pertaining to sharing of excess rentals

or profits on further subletting shall in any way diminish or affect Landlord’s

rights under Section 17 of the Master Lease.

 

7.            Conditions to Landlord’s Consent.  Landlord’s consent to the Sublease is

expressly conditioned on the following:

 

7.1            Prior to the Subtenant’s taking

occupancy of the Subleased Premises, Tenant shall deliver to Landlord

certificates of insurance evidencing Subtenant’s compliance with Section 8

of the Master Lease and indicating that Landlord is named as an additional

insured on such policies.

 

7.2            In accordance with Section 17.A of

the Master Lease, Tenant shall pay all of Landlord’s attorneys’ fees and other

expenses incurred in connection with Landlord’s consent to the Sublease and

this Agreement within ten (10) days following Tenant’s receipt of an invoice.

 

7.3            Tenant shall pay to Landlord as and

when required under the Master Lease, the amounts set forth in Section 17.E of

the Master Lease regarding Excess Rent.

 

4

 

7.4             Subtenant shall waive to the extent

permitted by law, any claims it may have against Landlord or its officers,

directors, employees or agents for business interruption or damage to property

sustained by Subtenant as the result of any act or omission of Landlord, its

agents or employees, as set forth in Section 8.A of the Master Lease.

 

7.5             Subtenant shall indemnify, defend

and hold harmless Landlord and its officers, directors, employees and agents

against any claim by any third party for injury to any person or damage to or

loss of any property occurring in or around the Project and arising from the

use of the Premises or from any other act or omission, negligence or

intentional misconduct of Subtenant, its employees, agents or invitees, or

Subtenant’s breach of its obligations under the Sublease or this Agreement, as

set forth in Section 8.B of the Master Lease. 

Subtenant’s obligations under this Section shall survive the termination

of the Sublease.

 

8.            Representations of Tenant and Subtenant.

 

8.1            Tenant and Subtenant represent and

warrant to Landlord that a true copy of the Sublease, and all agreements

relating to Subtenant’s use and occupancy of the Subleased Premises, and all

exhibits, addendum, amendments, modifications and supplements thereto, is

attached hereto as Exhibit A.

 

8.2            Tenant and Subtenant represent and

warrant to Landlord that, except as set forth in the Sublease and Bill of Sale

attached hereto as Exhibit A, Subtenant is not paying to Tenant any rent,

additional rent or other consideration whatsoever in connection with the

Sublease and/or Subtenant’s use and/or occupancy of the Subleased Premises or

any portion thereof (including, but not limited to, payments for Tenant’s

assets, trade fixtures, equipment and/or other personal property, goodwill,

intangible property and/or any capital stock or other equity ownership of

Tenant).

 

8.3            Tenant and Subtenant represent and

warrant to Landlord that Tenant has provided Subtenant with a complete copy of

the Master Lease, and Subtenant further represents and warrants to Landlord

that Subtenant is familiar with the provisions thereof.

 

8.4             Tenant and Subtenant represent and

warrant that Landlord will not be liable for any brokerage commission or

finder’s fee in connection with the consummation of the Sublease or this

Agreement.  Tenant and Subtenant,

jointly and severally, shall protect, indemnify, defend and hold Landlord

harmless from and against any claims for any such commissions, fees or costs,

and for all costs, expenses and liabilities incurred in connection with such

claims, including, without limitation, attorneys’ fees and costs.

 

9.           Miscellaneous.

 

9.1             Should any party to this Agreement

bring an action against another party, by reason of or alleging the failure of

the other party to comply with any or all of its obligations hereunder, whether

for declaratory or other relief, then the party which prevails in such action

shall be entitled to its reasonable attorneys’ fees and expenses related to

such action, in addition to all other recovery or relief.  A party shall be deemed to have prevailed in

any such action (without limiting the generality of the foregoing) if such

action is dismissed upon the payment by the other party of the sums allegedly

due or the performance of obligations allegedly not complied with, or if such

party obtains substantially the relief sought by it in the action,

 

5

 

 irrespective of whether such

action is prosecuted to judgment. 

Attorneys’ fees shall include, without limitation, fees incurred in

discovery, contempt proceedings, and bankruptcy litigation.  The non-prevailing party shall also pay the

attorneys’ fees and costs incurred by the prevailing party in any post-judgment

proceedings to collect and enforce the judgment.  The covenant in the preceding sentence is separate and several

and shall survive the merger of this provision into any judgment on this Agreement.

 

9.2.            Promptly upon Landlord’s request,

Tenant and Subtenant shall execute and deliver such further customary documents

and/or instruments and perform such further customary acts as may be required

to give full effect to the transaction herein contemplated.

 

9.3             Capitalized terms used but not

defined herein shall have the respective meanings ascribed to them in the

Master Lease.  Captions to the

paragraphs and sections in this Agreement are included for convenience only and

do not modify any of the terms of this Agreement.  No one party shall be deemed to have drafted this Agreement and

it shall be construed according to its fair meaning and not against any

party.  All indemnity obligations under

this Agreement and any other provision hereof the survival of which is

necessary to its enforcement shall survive the expiration or earlier

termination of the Sublease and this Agreement.

 

9.4             LANDLORD, TENANT AND SUBTENANT EACH

ACKNOWLEDGES THAT IT HAS HAD THE ADVICE OF COUNSEL OF ITS CHOICE WITH RESPECT TO

ITS RIGHTS TO TRIAL BY JURY UNDER THE CONSTITUTIONS OF THE UNITED STATES AND

THE STATE OF CALIFORNIA.  EACH PARTY

EXPRESSLY AND KNOWINGLY WAIVES AND RELEASES ALL SUCH RIGHTS TO TRIAL BY JURY IN

ANY ACTION, PROCEEDING OR COUNTERCLAIM BROUGHT BY EITHER PARTY AGAINST THE

OTHER ON ANY MATTERS ARISING OUT OF OR IN ANY WAY RELATED TO, EITHER DIRECTLY

OR INDIRECTLY, THIS AGREEMENT, OR THE SUBJECT MATTER HEREOF, SUBTENANT’S USE OR

OCCUPANCY OF THE SUBLEASED PREMISES, AND/OR ANY CLAIM FOR INJURY OR DAMAGE.

 

Landlord’s Initials                       Tenant’s Initials                         Subtenant’s

Initials                           

 

9.5              Landlord’s consent hereunder shall

not be effective until Landlord has received a copy of this Agreement, fully

executed with original signatures of Tenant and Subtenant thereon.

 

9.6              If any provision of this Agreement

shall be invalid, unenforceable or ineffective for any reason whatsoever, all

other provisions hereof shall be and remain in effect.

 

9.7              This Agreement is the entire

agreement between the parties with respect to the subject matter hereof, and no

alteration, modification or interpretation hereof shall be binding unless in

writing and signed by all parties. This Agreement shall be construed and

enforced in accordance with the laws of the State of California. This Agreement

may be executed and delivered in any number of counterparts, each of which so

executed and delivered shall be deemed to be an original and all of which shall

constitute one and the same instrument.

 

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IN WITNESS WHEREOF, the parties hereto have executed

this Agreement on the date set forth above.

 

	

  LANDLORD:

  
	

   

  
	

  SQUARE

  24 ASSOCIATES,

  a District of Columbia limited partnership

  (d.b.a. Square 24 Associates, L.P.)

  
	

   

  
	

  By:

  	

  Carr Real Estate

  Services, L.L.C., a Delaware limited liability company

  
	

  Its:

  	

  General Partner

  
	

  By:

  	

  Carr Real Estate

  Services Partnership, a Delaware partnership 

  
	

  Its:

  	

  Sole Member

  
	

  By:

  	

  Carr Realty,

  L.P., a Delaware limited partnership 

  
	

  Its:

  	

  Managing Partner

  
	

  By:

  	

  CarrAmerica

  Realty Corporation, a Maryland corporation 

  

  
	

  Its:

  	

  General Partner

  
	

   

  	

   

  
	

   

  	

   

  
	

  By:

  	

   

  	

  /s/ Philip L.

  Hawkins

  
	

   

  	

  Philip L.

  Hawkins 

  
	

  Its:

  	

  Chief Operating

  Officer 

  
							

 

	

  TENANT:

  	

   

  	

  SUBTENANT:

  	

   

  
	

   

  	

   

  	

   

  	

   

  
	

  ZAMBA

  CORPORATION, a

  	

   

  	

  PARK

  PLACE CAPITAL 

  	

   

  
	

  Delaware corporation

  	

   

  	

  CORPORATION, 

  

  	

   

  
	

   

  	

   

  	

  a California corporation 

  	

   

  
	

   

  	

   

  	

   

  	

   

  
	

  By:

  	

  /s/ Michael Carrel

  	

   

  	

   

  	

   

  	

   

  
	

   

  	

   

  	

   

  	

  By: 

  	

  /s/ Jon Daurio

  	

   

  
	

  Name: 

  	

  Michael Carrel

  	

   

  	

   

  	

   

  	

   

  
	

   

  	

   

  	

  Name:

  	

  Jon Daurio

  	

   

  
	

  Title:

  	

  CFO

  	

   

  	

   

  	

   

  	

   

  
	

   

  	

   

  	

   

  	

  Title:

  	

  EVP

  	

   

  
										

 

7CORNISH & CAREY COMMERCIAL

CORNISH & CAREY COMMERCIAL

 

 

ONCOR INTERNATIONAL

 

 

SUBLEASE

 

 

 

	

   

  	

   

  	

   

  	

  Exhibit 10.53

  
	

   

  	

   

  	

   

  	

   

  
	

   

  	

   

  	

   

  	

   

  
	

   

  	

   

  	

   

  	

   

  
	

  Sublessor:

  	

  Zamba Corporation

  a Delaware Corporation 

  	

  Subleased

  Premises:

  	

  3875

  Hopyard Road, Suite 345

  Pleasanton, CA  94588

  
	

   

  	

   

  	

   

  	

   

  
	

  Sublessee:

  	

  Park Place Capital Corporation

  	

   

  	

   

  
	

   

  	

   

  	

   

  	

   

  
	

   

  	

   

  	

  Date:

  	

  January

  9, 2002

  

 

1.             Parties:

This Sublease is made and entered into as of

January 9, 2002, by and between Zamba Corporation (Sublessor), and Park Place

Capital Corporation (Sublessee), under the Master Lease dated September 14,

1998, the First Amendment dated October 15, 1998, Second Amendment dated

December 21, 2000, between Square 24 Associates (d.b.a. Square 24 Associates

LP), as (Lessor) and Sublessor under this Sublease as (Lessee.)  A copy of the Master Lease is attached

hereto as Exhibit “A” and incorporated herein by this reference.

 

2.             Provisions

Constituting Sublease:

 

2.1.          This Sublease is subject to all of the terms and conditions

of the Master Lease. Sublessee hereby assumes and agrees to perform all of the

obligations of Lessee under the Master Lease to the extent said obligations

apply to the Subleased Premises and Sublessee’s use of the common areas, except

as specifically set forth herein. Sublessor hereby agrees to cause Lessor,

under the Master Lease, to perform all of the obligations of Lessor thereunder

to the extent said obligations apply to the Subleased Premises and Sublessee’s

use of the common areas. Sublessee shall not commit or permit to be committed

on the Subleased Premises or on any other portion of the Project any act or

omission which violates any term or condition of the Master Lease. Except to

the extent waived or consented to in writing by the other party or parties

hereto who are affected thereby, neither of the parties hereto will, by renegotiation

of the Master Lease, assignment, subletting, default or any other voluntary

action, avoid or seek to avoid the observance or performance of the terms to be

observed or performed hereunder by such party but, will at all times, in good

faith assist in carrying out all the terms of this Sublease and in taking all

such action as may be necessary or appropriate to protect the rights of the

other party or parties hereto who are affected thereby against impairment.

Nothing contained in this Section 2.1 or elsewhere in this Sublease shall

prevent or prohibit Sublessor from assigning its interest in this Sublease or

subletting the Premises to any other third party.

 

3.             Premises:

Sublessor leases to Sublessee and Sublessee

leases from Sublessor the Subleased Premises “as-is” upon all of the terms,

covenants and conditions contained in this Sublease. The Subleased Premises

consist of approximately 6,201± square feet, per the Master Lease document,

located at 3875 Hopyard Road, Suite 345, Pleasanton, California 94588 as shown

and described in Exhibit “B”.

 

4.             Rent:

Upon execution of this Agreement, Sublessee

shall deposit into a mutually agreeable escrow account as Rent for the

Subleased Premises the sum of Twenty-four Thousand One Hundred Eighty-Three and

90/100 Dollars ($24,183.90), representing the first month’s rent and one months

rent to be left in the escrow account for the balance of the sublease

term.  Thereafter, rent shall be in

accordance with the following schedule:

 

	

  Months

  	

   

  	

  Amount Square Foot

  	

   

  	

  FULL SERVICE

  
	

  2 — 11

  	

   

  	

  $

  12,091.95

  	

   

  	

   

  
	

  12-22

  	

   

  	

  $

  12,402.00

  	

   

  	

   

  

 

 

5976

WEST LAS POSITAS BOULEVARD, SUITE 120, PLEASANTON, CA 94588 · (925) 467-0900

FAX (925) 467-0911

 

 

The rental amount shall be paid, without

deductions, offset, prior notice or demand each month to the escrow account to

be used for the next month’s rent payment. 

All interest shall go directly to the Sublessee.  If the commencement date or the termination

date of the Sublease occurs on a date other than the first day or the last day,

respectively, of a calendar month, then the Rent for such partial month shall

be prorated and the prorated Rent shall be payable on the Sublease commencement

date or on the first day of the calendar month in which the Sublease

termination date occurs, respectively.

 

All costs for setting up the escrow account

or monthly costs associated with the escrow account or payment for direct

deposit to the Landlord for month rental payments shall be solely the

responsibility of the Sublessee.

 

Final decision on the process of rent and

operating expense pass through payments by Sublessee to Sublandlord or direct

payment to Landlord via assignment of payment or escrow account is subject to

Landlord’s approval.

 

5.             Operating

Expenses:

Per the Master Lease and First and Second

Amendments, Sublessee shall assume a Base Year 2001.

 

6.             Security

Deposit:

Upon execution of this Agreement, Sublessee

shall pay to Sublessor an equivalent of the last month’s rent, equal to

$12,402.00 as a noninterest bearing Security Deposit. In the event Sublessee

has performed all of the terms and conditions of this Sublease during the term

hereof, Sublessor shall return to Sublessee, within ten (10) days after

Sublessee has vacated the Subleased Premises, the Security Deposit less any

sums due and owing to Sublessor.

 

7.             Rights of

Access and Use:

 

7.1.          Use:

Sublessee shall use the

Subleased Premises only for those purposes permitted in the Master Lease,

unless Sublessor and Master Lessor consent in writing to other uses prior to

the commencement thereof.

 

8.             Sublease

Term:

 

8.1.          Sublease Term:

The Sublease Term shall be

for the period commencing on February 1, 2002, and continuing through November

30, 2003.  In no event shall the

Sublease Term extend beyond the Term of the Master Lease.

 

8.2.          Inability to Deliver Possession:

In the event Sublessor is

unable to deliver possession of the Subleased Premises at the commencement of

the term, Sublessor shall not be liable for any damage caused thereby nor shall

this Sublease be void or voidable, but Sublessee shall not be liable for Rent

until such time as Sublessor offers to deliver possession of the Subleased

Premises to Sublessee, but the term hereof shall not be extended by such delay.

If Sublessee, with Sublessor’s consent, takes possession prior to commencement

of the term, Sublessee shall do so subject to all the covenants and conditions

hereof and shall pay Rent for the period ending with the commencement of the

term at the same rental as that prescribed for the first month of the term

prorated at the rate of 1/30th thereof per day. In the event Sublessor has been

unable to deliver possession of the Subleased Premises within 30 days from the

commencement date, Sublessee, at Sublessee’s option, may terminate this

Sublease.

 

9.             Notices:

All notices, demands, consents and approvals

which may or are required to be given by either party to the other hereunder

shall be given in the manner provided in the Master Lease at the addresses

shown below. Sublessor shall notify Sublessee of any Event of Default under the

Master Lease, or of any other event of which Sublessor has actual knowledge

which will impair Sublessee’s ability to conduct its normal business at the

Subleased Premises, as soon as reasonably practicable following Sublessor’s

receipt of notice from the Lessor of an Event of Default or actual knowledge of

such impairment.

 

	

  Sublessor’s Address:

  	

  Zamba Corporation

  Attn: Legal

  3033 Excelsior Boulevard

  Suite 200

  Minneapolis, MN  55416

  	

  Sublessee’s Address:

  Park Place Capital Corporation

  Attn: Jon R. Daurio, Esq.

  101 Innovation Dr. #210

  Irvine, CA  92612 

  	

   

  
	

  Phone Number:

  	

  (952) 844-3126

  	

  Phone Number:

  	

  (949) 509-4603

  
	

  Fax Number:

  	

  (952) 832-9383

  	

  Fax Number:

  	

  (949) 717-3076

  

 

2

 

10.           Broker Fee:

Upon execution of the Sublease, Sublessor

shall pay Cornish & Carey Commercial, a licensed real estate broker, fees

set forth in a separate agreement between Sublessor and Broker.

 

11.           Broker

Representation:

The only Brokers involved in this Sublease

are Cornish & Carey Commercial representing Sublessor and Saca Commercial

representing  Sublessee.  Saca Commercial shall receive a commission

equal to four percent (4%) of the total Sublease consideration and Cornish and

Carey Commercial shall receive a commission equal to three (3%) of the total

Sublease consideration.

 

12.           Compliance

With Americans With Disabilities Act:

o Sublessor  o Sublessee shall be

responsible for the installation and cost of any and all improvements,

alterations or other work required on or to the Subleased Premises or to any

other portion of the property and/or building of which the Subleased Premises

are a part, required or reasonably necessary because of: (1) Sublessee’s use of

the Subleased Premises or any portion thereof; (2) the use by a Sublessee by

reason of assignment or sublease; or (3) both, including any improvements,

alterations or other work required under the Americans With Disabilities Act of

1990. Compliance with the provisions of this Section 8 shall be a condition of

Sublessor granting its consent to any assignment or Sublease of all or a

portion of this Sublease and the Subleased Premises described in this Sublease.

 

13.           Compliance

With Nondiscrimination Regulations:

It is understood that it is illegal for Sublessor to refuse to

display or sublease the Subleased Premises or to assign, surrender or sell the

Master Lease, to any person because of race, color, religion, national origin,

sex, sexual orientation, marital status or disability.

 

14.           Toxic

Contamination Disclosure:

Sublessor and Sublessee each acknowledge that

they have been advised that numerous federal, state, and/or local laws,

ordinances and regulations (Laws) affect the existence and removal, storage,

disposal, leakage of and contamination by materials designated as hazardous or

toxic (Toxics). Many materials, some utilized in everyday business activities

and property maintenance, are designated as hazardous or toxic.

 

Some of the Laws require that Toxics be

removed or cleaned up by landowners, future landowners or former landowners

without regard to whether the party required to pay for “clean up” caused the

contamination, owned the property at the time the contamination occurred or

even knew about the contamination. Some items, such as asbestos or PCBs, which

were legal when installed, now are classified as Toxics and are subject to

removal requirements. Civil lawsuits for damages resulting from Toxics may be

filed by third parties in certain circumstances.

 

Sublessor and Sublessee each acknowledge that

Broker has no specific expertise with respect to environmental assessment or

physical condition of the Subleased Premises, including, but not limited to,

matters relating to: (i) problems which may be posed by the presence or

disposal of hazardous or toxic substances on or from the Subleased Premises,

(ii) problems which may be posed by the Subleased Premises being within the

Special Studies Zone as designated under the Alquist-Priolo Special Studies

Zone Act (Earthquake Zones), Section 2621-2630, inclusive of California Public

Resources Code, and (iii) problems which may be posed by the Subleased Premises

being within a HUD Flood Zone as set forth in the U.S. Department of Housing

and Urban Development “Special Flood Zone Area Maps,” as applicable.

 

Sublessor and Sublessee each acknowledge that

Broker has not made an independent investigation or determination of the

physical or environmental condition of the Subleased Premises, including, but

not limited to, the existence or nonexistence of any underground tanks, sumps,

piping, toxic or hazardous substances on the Subleased Premises. Sublessee

agrees that it will rely solely upon its own investigation and/or the

investigation of professionals retained by it or Sublessor, and neither

Sublessor nor Sublessee shall rely upon Broker to determine the physical and

environmental condition of the Subleased Premises or to determine whether, to

what extent or in what manner, such condition must be disclosed to potential

sublessees, assignees, purchasers or other interested parties.

 

3

 

15.           Signage and

Building Security:

At Sublessee’s sole cost and expense and

subject to approval by Landlord, Sublessor shall transfer to Sublessee all

rights to signage and building security.

 

16.           Rent

Abatement and Damages to Personal Property:

In the event Sublessor, pursuant to the terms

of the Master Lease, is entitled to and receives rent abatement, then to the

extent such rent abatement affects the Subleased Premises, Sublessee shall be

entitled to rent abatement in an amount that the net rentable area of the

Subleased Premises bears to the total net rentable area of the Master Lease,

and only to the extent any such abatement applies to the Sublease Term.  In addition, any amounts paid or credited to

Sublessor under the terms of the Master Lease for damage to personal property

shall be credited to Sublessee, subject to the same limitations set forth

above.

 

	

  Sublessor:

  	

  ZAMBA CORPORATION

  	

   

  
	

   

  	

   

  
	

  By: 

  	

  /s/ Michael Carrel

  	

  Date:

  	

  1/20/02

  
	

   

  	

  Michael Carrel — Chief Financial

  Officer

  	

   

  
	

   

  	

   

  
	

  Sublessee:  PARK PLACE CAPITAL CORPORATION

  	

   

  
	

   

  	

   

  
	

  By: 

  	

  /s/ Jon Daurio

  	

  Date: 

  	

  1/28/02

  
	

   

  	

   

  
					

 

NOTICE TO SUBLESSOR AND SUBLESSEE: CORNISH

& CAREY COMMERCIAL, IS NOT AUTHORIZED TO GIVE LEGAL OR TAX ADVICE; NOTHING

CONTAINED IN THIS SUBLEASE OR ANY DISCUSSIONS BETWEEN CORNISH & CAREY

COMMERCIAL AND SUBLESSOR AND SUBLESSEE SHALL BE DEEMED TO BE A REPRESENTATION

OR RECOMMENDATION BY CORNISH & CAREY COMMERCIAL, OR ITS AGENTS OR EMPLOYEES

AS TO THE LEGAL EFFECT OR TAX CONSEQUENCES OF THIS DOCUMENT OR ANY TRANSACTION

RELATING THERETO. ALL PARTIES ARE ENCOURAGED TO CONSULT WITH THEIR INDEPENDENT

FINANCIAL CONSULTANTS AND/OR ATTORNEYS REGARDING THE TRANSACTION CONTEMPLATED

BY THIS PROPOSAL.

 

4

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