Document:

Exhibit

Exhibit 10.35
SEVENTH AMENDMENT TO LEASE
This SEVENTH AMENDMENT TO LEASE (this "Amendment")  is made effective as of June 1, 2012 (the "Effective Date"), by and between KBSII FOUNTAINHEAD, LLC, a Delaware limited liability company ("Landlord"), and THE UNIVERSITY OF  PHOENIX,  INC., an Arizona corporation  ("Tenant").
RECITALS
A.Landlord and Tenant are parties to that certain Fountainhead Office Park Lease, dated June 29, 2009, as amended by that certain First Amendment to Lease, dated August 11, 2009, that certain Second Amendment to Lease, dated November 2, 2009, that certain Third Amendment to Lease, dated February 19, 2010, that certain Fourth Amendment to Lease, dated March 11, 2011, that certain Fifth Amendment to Lease, dated August 3, 2011 (the "Fifth Amendment"), and that certain Sixth Amendment to Lease, dated December 22, 2011 (as so amended, the "Lease") pursuant to which Landlord leases to Tenant and Tenant leases from Landlord certain real property and improvements thereon located at 1625 Fountainhead Parkway, Tempe, Arizona 85282 and 1601 Fountainhead Parkway, Tempe, Arizona 85282 (collectively, the "Premises").
B.The parties now wish to amend the Lease as of the Effective Date subject to and on the terms and conditions set forth below.
AMENDMENT
1.    Defined Terms. Terms in this Amendment shall have the same meaning as such terms have in the Lease and Work Letter unless otherwise noted in this Amendment.
2.    Lease Amendments.
(a)    Section l(f) of the Lease is hereby deleted in its entirety and replaced with the following:
		
	"(f)
	PREMISES AREA:    Four Hundred Forty-Five Thousand Nine Hundred Fifty-Seven (445,957) rentable square feet."

(b)    Section l(j) of the Lease is hereby deleted in its entirety.
(c)    Section 1(k) of the Lease is hereby deleted in its entirety and replaced with the following:
		
	"(k)
	BASE MONTHLY RENT

	
		
	Months
	Base Monthly Rent *

	 
	 

	6/1/11-8/31/11
	$323,212.62

	9/1/11-8/31/12
	$855,865.81

	
		
	9/1/12-8/31/13
	$877,262.46

	9/1/13-8/31/14
	$899,194.02

	9/1/14-8/31/15
	$921,673.87

	9/1/15-8/31/16
	$944,715.71

	9/1/16-8/31/17
	$968,333.61

	9/1/17-8/31/18
	$992,541.95

	9/1/18-8/31/19
	$1,017,355.50

	9/1/19-8/31/20
	$1,042,789.38

	9/1/20-8/31/21
	$1,068,859.12

	9/1/21-8/31/22
	$1,095,580.60

	9/1/22-8/31/23
	$1,122,970.11

	 
	 

	*plus applicable taxes

(d)    Section l(r) of the Lease is hereby deleted in its entirety.
(e)    Landlord and Tenant acknowledge and agree that: (i) the Premises has been re-measured in accordance with the terms of Section R-1 of Exhibit "K" to the Lease and the parties accept and confirm the Premises Area as set forth in Paragraph 2(a) above; (ii) based on the calculation of the rentable square footage of the Premises Area in accordance with the terms of the Lease, in accordance with the terms of Section 2(b) of the Work Letter, Tenant is entitled to an additional amount of Two Hundred Forty-One Thousand Forty-Five and No/100 Dollars ($241,045.00) as TI Improvement Allowance (the "Remaining Tenant Allowance"); and (iii) Tenant shall be entitled to apply the Remaining Tenant Allowance against either: (1) the cost of any improvements made by Tenant to the Premises; or (2) Base Monthly Rent payable by Tenant to Landlord under the Lease.
(f)    Landlord and Tenant acknowledge and agree that: (i) Tenant has satisfied the terms and conditions of Section 2(a) of the Fifth Amendment in their entirety; (ii) as a result of the adjustment to the rentable square footage of the Premises Area, Tenant owes Landlord back Base Monthly Rent in the amount of $136,936.36 for the months of June 1, 2011 through May 1, 2012 (the "Back Rent"); (iii) the Rent Credit shall be reduced by the Back Rent and such reduced amount shall be referred to herein as the Reduced Rent Credit; (iv) Tenant shall be entitled to apply the Reduced Rent Credit against Base Monthly Rent payable by Tenant to Landlord under the Lease for June 2012 and July 2012; and (v) following the date as of which Tenant shall have applied the Reduced Rent Credit against Base Monthly Rent payable by Tenant to Landlord under the Lease in accordance with the terms of Paragraph 2(f)(v) above, Landlord shall have satisfied its obligation under Paragraph 2(a) of the Fifth Amendment to provide Tenant with a One Million Dollar ($1,000,000.00) rent credit.
(g)    Landlord and Tenant acknowledge and agree that, notwithstanding anything to the contrary contained in the Lease, including, without limitation, the provisions of Section 13 of the Lease, the respective obligations of Landlord and Tenant relating to the matters specifically identified on Exhibit "A" attached hereto and incorporated   herein  by  this  reference  shall  be  as  set  forth  on  such  Exhibit "A".

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Notwithstanding the foregoing, if Tenant fails to maintain and repair any element of the Premises which is denoted as "Tenant Responsibility" on Exhibit "A" attached hereto (other than Janitorial Services which shall remain Tenant's obligation in all events) in a first class manner as reasonably determined by Landlord, then, except as otherwise provided below, if Tenant shall fail to correct such deficient repair or maintenance within ten (10) business days following receipt of written demand from Landlord specifying the deficient repair or maintenance ("Landlord's Notice"), Landlord may enter upon the Premises and make such repairs and/or maintenance, and may thereupon assume responsibility for the continued maintenance and repair of such Tenant Responsibility item(s) for the duration of the Lease, with the reasonable costs of such maintenance and repairs performed by Landlord to be included in Expenses in accordance with the Lease. Notwithstanding the foregoing, if the nature of such deficient repair or maintenance is such that the correction takes longer than ten (10) business days following receipt of Landlord's Notice, Landlord shall not have the rights set forth above if Tenant is using commercially reasonable and diligent efforts to correct such deficient repair or maintenance and actually corrects such deficient repair or maintenance within a reasonable time following receipt of Landlord's Notice.
3.    Brokerage. Landlord and Tenant each represent and warrant to the other that neither has dealt with any real estate broker or agent in connection with this Amendment or its negotiation. Landlord and Tenant each agree to indemnify, defend and hold the other harmless for, from and against any cost, expense or liability (including attorneys' fees) for any compensation, commission or fees claimed by any real estate broker or agent in connection with this Amendment or its negotiation as a result of the action of the indemnifying party.
4.    Fees and Costs. If any suit, action, arbitration or other proceeding, including, without limitation, an appellate proceeding, is instituted in connection with any controversy, dispute, default or breach arising out of this Amendment, the prevailing or non-defaulting party shall be entitled to recover from the losing or defaulting party all reasonable fees, costs and expenses (including the reasonable fees and expenses of attorneys, paralegals and witnesses) incurred in connection with the prosecution or defense of such proceeding, whether or not the proceeding is prosecuted to a final judgment or determination; provided, however, if there is no clear prevailing party, such fees, costs and expenses shall be borne as determined by the applicable fact finder.
5.    Successors and Assigns. This Amendment shall be binding upon and inure to the benefit of the parties hereto and their respective successors and assigns.
6.    Ratification. Landlord and Tenant each hereby reaffirm its rights and obligations under the Lease as modified by this Amendment. In the event of a conflict or ambiguity between the Lease and this Amendment, the terms and provisions of this Amendment shall control.
7.    Counterparts. This Amendment may be executed in several counterparts each of which when executed and delivered is an original, but all of which together shall constitute one instrument.

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IN WITNESS WHEREOF, Landlord and Tenant have each executed this Amendment on the dates written below their names.

LANDLORD:
KBSII FOUNTAINHEAD, LLC, a
Delaware limited liability company
		
	By:
	KBS Capital Advisors, LLC, a

Delaware limited liability company,
its authorized agent

By:  /s/ Brent Carroll
Name:  Brent Carroll 8/1/12
Its:  Senior Vice President
TENANT:
THE UNIVERSITY OF PHOENIX, INC.,
an Arizona corporation

By: /s/ Colette Temmink
Name: Colette Temmink
Title: VP. Real Estate & Facilities
7/16/12

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Exhibit "A"
[see attached]

5Exhibit

Exhibit 10.36
LANDLORD CONSENT TO SUBLEASE
This LANDLORD CONSENT TO SUBLEASE (this "Consent") is made and entered into as of November 20, 2013, by and among KBSII FOUNTAINHEAD, LLC, a Delaware limited liability company ("Landlord"), and THE UNIVERSITY OF PHOENIX, INC., an Arizona corporation ("Tenant"), with reference to the facts set forth in the Recitals below.
RECITALS:
A.Landlord and Tenant are parties to that certain Fountainhead Corporate Park Lease dated June 29, 2009 (the "Original Lease"), by and between Landlord and Tenant, as amended by that certain First Amendment to Lease dated August 11, 2009, that certain Second Amendment to Lease dated November 2, 2009, that certain Third Amendment to Lease dated February 19, 2010, that certain Fourth Amendment to Lease dated March 11, 2011, that certain Fifth Amendment to Lease dated August 3, 2011, that certain Sixth Amendment to Lease dated December 22, 2011, and by that certain Seventh Amendment to Lease dated June 1, 2012 (collectively, the "Prior Amendments"). The Original Lease, as amended by the Prior Amendments, is hereinafter referred to as the "Lease". Pursuant to the Lease, Tenant leases from Landlord parking spaces on the fifth (5th) and sixth (6th) floors of the parking garage located at 1625 Fountainhead Parkway, Tempe, Arizona (the "Parking Spaces").
B.Tenant desires to sublease to Tempe Fountainhead Corporate, LLC, a Delaware limited liability company ("Subtenant"), not more one hundred fifty (150) of Tenant's parking spaces (the "Sublease Spaces"), pursuant to the provisions of that certain Temporary Parking License Agreement between Tenant and Subtenant dated as of November 18, 2013 (the "Sublease"), a copy of which is attached hereto as Exhibit "A".
C.Tenant desires to obtain Landlord's consent to the Sublease, and Landlord desires to grant consent to the Sublease, under the terms and conditions set forth herein.
D.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 Consent and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, Landlord, Tenant and Subtenant hereby agree as follows:
AGREEMENT:
1.    Consent. Landlord hereby consents to the Sublease by Tenant to Subtenant of the Sublease Spaces on the following terms and conditions (which terms and conditions are hereby approved by Landlord and Tenant by virtue of their execution of this Consent):
A.    Landlord's consent is not intended, and shall not be construed (i) to modify or otherwise affect any of the provisions of the Lease, or to release Tenant from any of its obligations and duties under the Lease, (ii) as a waiver of any of Landlord's rights under the

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Lease, (iii) as an authorization or a consent by Landlord to any assignment of the interest of Tenant in the Lease or to the further subleasing of the Premises or the Sublease Spaces, or (iv) as binding or obligating Landlord in any manner whatsoever with respect to any of the covenants, undertakings, representations, warranties or agreements contained in the Sublease between Tenant and Subtenant, notwithstanding anything to the contrary contained therein.
B.    It is a condition to Landlord's consent to the Sublease that: (i) Subtenant's use of the Sublease Spaces and the Sublease will be subject and subordinate to the Lease and to  all mortgages which are secured, in whole or in part, by the Premises; (ii) in the event Tenant is in default under the Lease beyond any applicable notice and cure periods set forth in the Lease, Landlord may enforce the provisions of the Sublease directly against Subtenant; (iii) in the event of termination of the Lease for any reason whatsoever, including, without limitation, a voluntary surrender by Tenant, or any default by Tenant, or in the event of any re-entry or repossession of the Premises by Landlord, Landlord may, at its option, either (a) terminate the Sublease and Subtenant's use of the Sublease Spaces, or (b) take over all of the right, title and interest of Tenant, as sublessor, under the Sublease, in which case the Subtenant will attorn to Landlord, but that nevertheless Landlord will not (1) be liable for any previous act or omission of Tenant under the Sublease, (2) be subject to any defense or offset previously accrued in favor of the Subtenant against Tenant, or (3) be bound by any previous prepayment by Subtenant of more than one month's rent, (iv) Subtenant shall name Landlord as an additional insured on all policies of commercial general liability insurance maintained by Subtenant with respect to the Sublease Spaces; and (v) the Sublease shall not be modified without Landlord's prior written consent and any modification without such consent shall be null and void. Tenant acknowledges and agrees that the effectiveness of this Consent is expressly conditioned upon Tenant's payment of the non­refundable fee and attorney's fees to Landlord.
C.    Subtenant's address for notices with respect to the Sublease Spaces is as follows:

Tempe Fountainhead Corporate, LLC
c/o CBRE, Inc.
1620 W. Fountainhead Parkway, Suite 210
Tempe, AZ 85282
D.    Tenant and Subtenant expressly acknowledge that the forwarding of this Consent to Tenant and Subtenant by Landlord is not an express or implied approval of the Sublease. Landlord, in its sole discretion, retains the right to disapprove of the Sublease until such time as this Consent has been signed by all of the parties hereto.
2.    Condition of Sublease Spaces. Tenant and Subtenant further acknowledge that except as expressly provided in the Lease and this Consent, neither Landlord nor any agent of Landlord has made any representation or warranty regarding the condition of the Sublease Spaces or with respect to the functionality thereof or the suitability of any of the foregoing for the conduct of Tenant's and Subtenant's business and that all representations and warranties of Landlord, if any, are as set forth in the Lease and this Consent.

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3.    Reaffirmation of Lease. Tenant represents and warrants that to its actual knowledge (i) the Lease is in full force and effect; (ii) the Lease has not been assigned, encumbered, modified, extended or supplemented except as otherwise set forth herein; (iii) Tenant knows of no defense or counterclaim to the enforcement of the Lease; (iv) Tenant is not entitled to any reduction, offset or abatement of the rent payable under the Lease; and (v) Landlord is not in default of any of its obligations or covenants, and has not breached any of its representations or warranties under the Lease.
4.    Notices. All notices provided by Tenant and Subtenant to Landlord pursuant to the Lease shall be sent to the following addresses:
KBSII Fountainhead, LLC 
c/o CB Richard Ellis
313 Camelback Road, Suite 325
Phoenix, Arizona 85016 
Attn: Lease Administrator
5.    Brokers. Tenant and Subtenant represent and warrant to Landlord that they are not aware of any brokers or finders, representing any of the parties, who may claim a fee or commission in connection with the consummation of the transactions contemplated by this Sublease. If any claims for brokers' or finders' fees in connection with the transactions contemplated by this Sublease arise, then Tenant and Subtenant, jointly and severally, agree to indemnify, protect, hold harmless and defend Landlord (with counsel satisfactory to Landlord) from and against any such claims if they shall be based upon any statement, representation or agreement made by Tenant or Subtenant.
6.    Authority. Each signatory of this Consent on behalf of Tenant and Subtenant 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.
7.    No Other Modification. Landlord and Tenant agree that except as otherwise specifically modified in this Consent, 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 Consent. To the extent of any inconsistency between the terms and conditions of the Lease and the terms and conditions of this Consent, the terms and conditions of this Consent shall apply and govern the parties. This Consent 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. The parties hereto agree that the signature of any party transmitted by facsimile or email shall have binding effect as though such signature were delivered as an original.

[NO FURTHER TEXT ON PAGE; SIGNATURES ON FOLLOWING PAGE]

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IN WITNESS WHEREOF, the parties have executed this Consent as of the date first set forth above.
	
			
	LANDLORD:

KBSII FOUNTAINHEAD, LLC.
a Delaware limited liability company

	 
	 
	 

	 
	By:
	KBS Capital Advisors LLC,
a Delaware limited liability company,
its authorized agent

By:    /s/ Brent C. Carroll   
Name:    Brent C. Carroll   
Title:    SVP   

	
			
	TENANT:
	 
	SUBTENANT:

	 
	 
	 

	THE UNIVERSITY OF PHOENIX, INC.,
an Arizona corporation

By:    /s/ Beth Gambaro   
Name:    Beth Gambaro   
Title:    Senior Director of Facilities   
	 
	TEMPE FOUNTAINHEAD CORPORATE,
LLC, a Delaware limited liability company

By:    /s/ Authorized Signatory   
Name:    Authorized Signatory   
Title:    Investment Director, Asset Management   

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