Document:

exhibit_10-21.htm

 

Exhibit 10.21

 

FOURTH AMENDMENT TO LEASE

           This Fourth Amendment to Lease (the “Amendment”) is entered into as of this 15th day of June, 2009 to be effective as of July 1, 2009 (the “Effective Date”), by and between CONEXANT SYSTEMS, INC., a Delaware corporation (“Landlord”), and NEWPORT FAB, LLC, a Delaware limited liability company doing business as Jazz Semiconductor (“Tenant”), with respect to the following:

RECITALS

           A.           Landlord is the landlord and Tenant is the tenant pursuant to that certain written Lease dated March 12, 2002 by and between Landlord and SpecialtySemi, Inc. (“Original Tenant”), as amended by a First Amendment to Lease dated May 1, 2004, that certain Second Amendment to Lease dated December 31, 2005 and that certain Third Amendment to Lease dated September 26, 2006 (collectively the “Lease”).  Tenant has succeeded to the interest of Original Tenant under the Lease.  The Lease covers certain premises consisting of approximately 68,277 rentable square feet as depicted on Exhibit “B” to the Lease (the “Leased Premises”) located in a building known as Building 501 and commonly referred to as “Half Dome” (the “Building”) with a street address of 4311 Jamboree Road, Newport Beach, California.

           B.           Tenant desires to lease that portion of the data center located in the Building (the “Data Center Space”) designated on Exhibit A hereto as “Jazz Data Center” consisting of approximately 748 rentable square feet, and Landlord is willing to consent thereto but only on the terms and conditions set forth herein.

 

AGREEMENT

              NOW, THEREFORE, IN CONSIDERATION OF the foregoing Recitals and for other good and valuable consideration, the receipt and adequacy of which are hereby acknowledged, Landlord and Tenant hereby agree as follows:

1.            Capitalized Terms.  Capitalized terms used herein and not otherwise defined shall have the meanings given to such terms in the Lease.

2.            Data Center Space.

              (a)           Effective as of 12:01 a.m. on the Effective Date, the term "Leased Premises" as used in the Lease shall include the Data Center Space.  From and after the Effective Date, Tenant shall comply, with respect to the Data Center Space, with all of its obligations under the Lease as amended hereby with respect to the Leased Premises, except that Expense Rent for the Data Center Space shall be payable in accordance with subparagraph (b) below.

              (b)           Tenant shall pay to Landlord, monthly in advance commencing on August 1, 2009, as Expense Rent for the Data Center Space, the amount of $15,167 per month, which amount is calculated as set forth in Exhibit B hereto.

              (c)           The Term of the Lease with respect to the Data Center Space shall be co-terminous with the Lease Term; provided, however, upon written notice from Tenant given to Landlord, if at all, at least ninety (90) days prior to Tenant’s desired termination date or from Landlord to Tenant given, if at all, at least twelve (12) months prior to Landlord’s desired termination date (in whichever case, a “Termination Notice”), either party may terminate the Lease Term with respect to (only) the Data Center Space as of the date specified in the Termination Notice (which date, if Tenant delivers the Termination Notice, must be at least ninety (90) days after such Termination Notice is given and, if Landlord delivers the Termination Notice, must be at least twelve (12) months after the Termination Notice is given, in order for such Termination Notice to be effective).  If a Termination Notice is timely and properly given pursuant to the immediately preceding sentence (it being acknowledged and agreed that Tenant may deliver a Termination Notice after Landlord delivers a Termination Notice, in which case Tenant’s Termination Notice shall control if the date specified for termination therein is earlier than the date specified in Landlord’s Termination Notice), then the Lease Term with respect to (only) the Data Center Space shall terminate at 11:59 p.m. on the day specified in the Termination Notice.  Upon any early termination of the Lease Term with respect to the Data Center Space pursuant to this subparagraph, the same shall be surrendered on the early termination date in the same condition in which Tenant is required to surrender the Leased Premises pursuant to Section 2.5 of the Lease, except that Tenant shall not be required to repair or replace any stained or damaged ceiling tiles, wall coverings and floor coverings, unless such stain or damage to ceiling tiles, wall coverings or floor coverings were the result solely of Tenant’s activities in the Data Center Space or were caused by the removal of Tenant’s equipment, trade fixtures, furniture, supplies, wall decorations and/or other personal property.

  

  

  

 

3.           Demising of Data Center Space.  Landlord shall be responsible for demising the Data Center Space, including without limitation with respect to installing a controlled access system (“Landlord’s Work”).  Landlord shall deliver to Tenant for approval an estimate of the costs of performing Landlord’s Work, which Tenant shall approve or disapprove within three (3) business days after receipt thereof, with Tenant’s failure to approve or disapprove the same within such three (3) business day period being deemed Tenant’s approval thereof.  If Tenant timely disapproves the estimated costs of performing Landlord’s Work, Landlord shall have no obligation to commence Landlord’s Wok until Tenant’s approval is received or deemed received in accordance with the immediately preceding sentence.  The costs incurred by Landlord for Landlord’s Work approved or deemed approved by Tenant as aforesaid shall be payable by Tenant to Landlord as additional rent under the Lease within thirty (30) days after Landlord’s demand therefore.  Notwithstanding anything to the contrary reflected on Exhibit A hereto, Tenant shall be responsible for providing all racks, cabinets and other equipment for its use of the Data Center Space.  Any other work Tenant desires to perform in the Data Center Space shall be Tenant’s responsibility, both as to performance and cost.  Tenant acknowledges and agrees that Landlord’s Work will be performed prior to the delivery of possession of the Data Center Space to Tenant.

4.           Brokers.  Tenant represents that it has not dealt with any broker, agent or finder in connection with this Amendment, and that no such other broker, agent or finder has any claim under, by or through Tenant for a commission or fee in connection with this Amendment.

5.           Lease in Effect.  Landlord and Tenant acknowledge and agree that the Lease, except as amended by this Amendment, remains unmodified and in full force and effect in accordance with its terms.

6.           Entire Agreement.  This Amendment embodies the entire understanding between Landlord and Tenant with respect to the subject matter hereof and can be changed only by an instrument in writing executed by both Landlord and Tenant.

7.           Conflict of Terms.  In the event that there is any conflict or inconsistency between the terms and conditions of the Lease and those of this Amendment, the terms and conditions of this Amendment shall control and govern the rights and obligations of the parties.

  

  

  

      

IN WITNESS WHEREOF, the undersigned have entered into this Amendment to be effective as of the date first above written.

	
LANDLORD:

 

CONEXANT SYSTEMS, INC., a Delaware 

corporation

 

By: /s/ J.L. CISNEROS

 

Title: Manager Facilities &Corporate Real 

Estate

	
TENANT:

 

NEWPORT FAB, LLC, a Delaware limited 

liability company doing business as Jazz 

Semiconductor

 

By: /s/ NABIL AL ALI

 

Title: VP Operationsexhibit_10-22.htm

 

Exhibit 10.22

FIFTH AMENDMENT TO LEASE

(Half Dome)

 

This Fifth Amendment to Lease (this “Amendment”) is dated for reference purposes as of December 8, 2010, and is entered into by and between UPTOWN NEWPORT LP, a Delaware limited partnership (“Landlord”), and NEWPORT FAB, LLC, a Delaware limited liability company doing business as Jazz Semiconductor (“Tenant”), with respect to the following:

 

RECITALS:

 

A.           Conexant Systems, Inc., a Delaware corporation (the “Original Landlord”), and SpecialtySemi, Inc., a Delaware corporation (the “Original Tenant”), entered into that certain written Lease dated March 12, 2002, as amended by that certain First Amendment to Lease dated May 1, 2004, that certain Second Amendment to Lease dated December 31, 2005, that certain Third Amendment to Lease dated September 26, 2006 (the “Third Amendment”), and that certain Fourth Amendment to Lease dated as of June 15, 2009 (collectively, the “Lease”). Tenant has succeeded to the interest of the Original Tenant under the Lease. The Lease covers certain premises (the “Leased Premises”) known as Building 501 and commonly referred to as the “Half Dome” (the “Building”) with a street address of 4311 Jamboree Road, Newport Beach, California. Capitalized terms used herein shall have the meanings given them in the lease unless otherwise defined herein.

 

B.           Landlord is currently under contract to purchase the Leased Premises from the Original Landlord. If the closing of such purchase (the “Closing”) occurs, Landlord will succeed to the interest of the Original Landlord under the Lease.

 

C.           If the Closing occurs, Landlord and Tenant wish to amend the Lease in certain respects, as provided in this Amendment.

 

AGREEMENT

 

NOW, THEREFORE, IN CONSIDERATION of the foregoing Recitals and for other good and valuable consideration, the receipt and adequacy of which are hereby acknowledged, Landlord and Tenant hereby agree as follows, effective immediately upon the Closing (as evidenced by the recordation of a grant deed executed by the Original Landlord conveying the Leased Premises to Landlord (the “Effective Date”):

 

1.             Definition of Expense Rent Modified. Commencing as of the Effective Date, and for the balance of the Lease term, as same may be extended, the definition of “Expenses” as set forth in Section 1.1(o) of the Lease is hereby modified as follows:

 

(a)           Subsection (ii) thereof is deleted in its entirety and replaced with the following:

 

“(ii)All costs and expenses paid or incurred by Landlord in providing services to Tenant as described in this Lease, except that the management fee shall be fixed at Nineteen Thousand Eight Hundred and 36/1 00ths Dollars ($19,800.36) annually, payable in monthly installments of One Thousand Six Hundred Fifty and 03/1 00ths Dollars ($1,650.03) (based upon approximately $.29 per square foot of Leased Premises per month).”

 

(b)           Subsection (iii) thereof is deleted in its entirety and replaced with the following:

 

“(iii) Base rent in the agreed fixed annual sum of Two Hundred Two Thousand Nine Hundred Eighty Dollars ($202,980.00), payable in monthly installments of Sixteen Thousand Nine Hundred Fifteen Dollars ($16,915.00).”

  

  

  

 

2.             Replacement of Relocation Provisions with Lease Termination Provision. Section 4 of the Third Amendment is hereby deleted in its entirety and replaced with the following:

 

        “4.            Early Lease Termination. Landlord shall have the right to terminate this Lease upon delivery of written notice to Tenant (the “Lease Termination Notice”). The Lease Termination Notice shall specify the date of termination of the Lease (the “Early Termination Date”), which shall not be less than six (6) months from the date of delivery of the Lease Termination Notice to Tenant; provided, in no event shall the Early Termination Date be earlier than January 1, 2014. In consideration of the right of Landlord to terminate the Lease early, concurrently with Tenant’s vacation of the Lease Premises in accordance with the requirements specified in the Lease on or before the Early Termination Date specified in the Lease Termination Notice, Landlord shall pay to Tenant a “Lease Termination Fee” calculated as follows:

 

If the Early Termination Date occurs in January, 2014, the Lease Termination Fee shall be Three Millions Dollars ($3,000,000.00). For each month after January, 2014 until the month that the Early Termination Date occurs, the Lease Termination Fee shall be reduced by Twenty-Two Thousand Dollars ($22,000.00).

 

Tenant shall not be entitled to receive a Lease Termination Fee if the Lease is lawfully terminated by Landlord following a default of Tenant under the Lease (i.e., a default which under the terms of the Lease or under applicable law, would legally permit Landlord to declare a termination of the Lease, e.g., Tenant’s failure to pay rent, application of Lease provisions providing for termination rights following a damage or destruction of the Premises or following a governmental agency’s exercise of the right of eminent domain with respect to the Leased Premises, etc.). Notwithstanding the foregoing, if Landlord has delivered to Tenant a Lease Termination Notice specifying a Lease Termination Date that will occur on or after March 13, 2016 and Tenant has not timely exercised its right to extend the term of the Lease in accordance with Article 15 of the Lease, the Lease Termination Fee shall be equal to the product of Fifty Thousand Dollars ($50,000.00) and the number of months in the original Lease term that follows the Lease Termination Date (partial months to be prorated).”

 

3.             Estoppel Certificate. Concurrently herewith Tenant shall deliver to Landlord an Estoppel Certificate in the form attached hereto as Exhibit “B”.

 

4.             Concurrent Execution of El Capitan Lease Amendment. The legal effectiveness of this Amendment is expressly conditioned upon the concurrent execution of that certain Sixth Amendment to Lease of even date herewith between Landlord and Tenant with respect to the leased premises located at 4321 Jamboree Road, Newport Beach, California (known as “Buildings 503 and 505”).

 

5.             Lease in Effect. Landlord and Tenant acknowledge and agree that the Lease, except as amended by this Amendment, remains unmodified and in full force and effect in accordance with its terms.

 

6.             Entire Agreement. This Amendment embodies the entire understanding between Landlord and Tenant with respect to the subject matter hereof and can be changed only by an instrument in writing executed by both Landlord and Tenant.

 

7.             Effectiveness of Amendment. Notwithstanding anything to the contrary contained herein, this Amendment shall not be deemed effective and the Lease shall not be deemed modified as provided herein unless and until Landlord has acquired legal title to the Leased Premises, as evidenced by a recorded grant deed executed by Original Landlord in favor of Landlord which includes the Leased Premises.

 

  

  

  

 

8.             Waiver and Release of Claims. The Original Landlord has asserted various alleged breaches of the Lease by Tenant and/or the Original Tenant of the Lease and has asserted that such alleged breaches provide a basis for termination of the Lease and/or termination of Tenant’s and/or Original Tenant’s options to extend the Lease pursuant to Article 15 of the Lease. Tenant and Original Tenant deny that such alleged breaches have occurred and deny that such alleged breaches provide a basis for termination of the Lease and/or termination of Tenant’s and/or Original Tenant’s options to extend the Lease. Landlord and Tenant hereby agree as follows:

 

(a)           Landlord hereby acknowledges, agrees and affirms that Tenant has succeeded to the interest of Original Tenant under the Lease, that Tenant has the options to extend the term of the Lease specified in Article 15 of the Lease (the “Extension Options”), and hereby forever waives, releases and disclaims any claims by the Original Landlord that any purported breaches by Tenant under the Lease prior to the Effective Date provide a basis for Landlord to terminate the Lease or to terminate Tenant’s Extension Options. Landlord further affirms that Tenant is hereby deemed to be an assignee for which Landlord’s and Original Landlord’s consent to assignment of the Lease was properly obtained, and that no dissolution, merger, consolidation or other reorganization of Tenant or Original Tenant occurring prior to the date of this Amendment shall constitute any basis for Landlord to terminate the Lease or the Extension Options. Nothing herein shall constitute a waiver of the obligation of Tenant to comply with the provisions of Article 7 of the Lease with respect to any future assignments or transfers by Tenant as provided therein.

 

(b)           With respect to Landlord’s waiver in Section 8(a) above, Landlord expressly, voluntarily and knowingly waives, abandons and relinquishes all rights, protections and benefits afforded by Section 1542 of the Civil Code of the State of California and any comparable language in other jurisdictions, and Landlord so understands and acknowledges the significance of such specific waiver as follows:

 

“A general release does not extend to claims which the creditor does not know or suspect to exist in his or her favor at the time of executing the release, which if known by him or her must have materially affected his or her settlement with the debtor.”

 

IN WITNESS WHEREOF, Landlord and Tenant have executed this Amendment as of the date first set forth above.

 

	Landlord: 

UPTOWN NEWPORT LP,

 a Delaware limited partnership

By:   G&I VI Newport Corp.,

a Delaware corporation, general partner

By:  /s/  JEAN MARIE APRUZZESE

Title: Vice President

	Tenant: 

NEWPORT FAB, LLC, a Delaware limited  

liability company doing business as Jazz 

Semiconductor

 

By:  /s/ RAFI MOR

Title:  Senior VP & General Manager

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