Document:

Exhibit 10.16

 

SECOND AMENDMENT TO SUBLEASE

 

THIS SECOND AMENDMENT TO SUBLEASE (this “Second Amendment”) is made as of the 28th day of April, 2000 by and between VARIAN,
INC., a Delaware corporation (“Sublessor”), and COMMUNICATIONS
& POWER INDUSTRIES, INC., a Delaware corporation (“Sublessee”).

 

W I  T  N  E  S  S
E  T  H:

 

WHEREAS, Varian Associates, Inc., a Delaware
corporation (“Varian Associates”), and Sublessee entered into that
certain Sublease (Building 4, Palo Alto) dated August 10, 1995, a Memorandum of
Sublease (Building 4, Palo Alto) having been recorded August 10, 1995, as
Instrument No. 12979123, Records of Santa Clara County, California
(collectively, the “CPI Sublease”), whereby Sublessee subleased from
Varian Associates a portion of the building located at 3120 Hansen Way, Palo
Alto, California, and commonly referred to as Building 4 (“Building 4”), (the “Subleased
Premises”);

 

WHEREAS, Sublessor, Sublessee, Varian Associates and
Varian Realty Inc., a California corporation (“Varian Realty”) entered
into that certain First Amendment to Sublease, Subordination, Non-Disturbance
and Attornment Agreement dated for reference purposes only as of April 2, 1999
(the “First Amendment” and,
together with the CPI Sublease, the “Sublease”) pursuant to which Sublessee
acknowledged among other things that (1) Varian Associates and Varian Realty
had subleased all of Building 4 to Sublessor (the “Varian, Inc. Sublease”),
(2) the interest of Varian Associates and Varian Realty as the sublessor
in and to the CPI Sublease was assigned to Sublessor, and (3) the CPI Sublease
was amended to, among other things, subordinate the CPI Sublease to the Varian,
Inc. Sublease;

 

WHEREAS, Sublessee and Sublessor desire to further
amend the Sublease to provide for the exchange of a portion of the Subleased
Premises for other space occupied by Sublessor in Building 4;

 

NOW
THEREFORE, in
consideration of the agreements of Sublessor and Sublessee set forth in this
Second Amendment and other good and valuable consideration, the receipt and
adequacy of which are hereby acknowledged, Sublessor and Sublessee agree as
follows:

 

1.             Exchange
of Space and Subleased Premises. Not later than June 12, 2000 (the “Effective Date”), Sublessee shall return to Sublessor the stockroom area
consisting of approximately 760 square feet of space (the “Returned Space”) in exchange for the paint booth area presently occupied by
Sublessor and consisting of approximately 545 square feet of space (the “Replacement Space”). The Returned Space and the Replacement Space are more
particularly identified on the plan attached hereto as Schedule 2. From
and after the Effective Date, the total square footage comprising the Subleased
Premises thereafter shall be approximately 48,854 square feet (as is more
particularly identified on the plan attached hereto as Exhibit A), and
all

 

1

 

references contained in the Sublease to Exhibit A
shall be deemed to refer to the Exhibit A attached to this Second
Amendment. Not later than the Effective Date, Sublessee shall satisfy all
requirements in Section 12.11 of the Sublease (captioned “Yield Up”) in
connection with its surrender of the Returned Space to Sublessor.

 

2.             Annual
Rent Rate Schedule. The Rent shall be adjusted as of the Effective Date, in
accordance with the Annual Rent Rate Schedule, to reflect the new square footage
of the Subleased Premises.

 

3.             Failure
to Deliver Returned Space. Sublessee acknowledges that the failure of
Sublessee to surrender to Sublessor the Returned Space in the condition
required by the Sublease will cause Sublessor to incur certain costs and
expenses, the exact amounts of which are extremely difficult or impractical to
fix. Such costs and expenses will include, without limitation, accounting
expenses and costs attributable to administrative delays and inefficiencies in
coordinating Sublessor’s taking possession of and moving into the Returned
Space. Therefore, in the event Sublessee fails to deliver the Returned Space to
Sublessor on or before the Effective Date, Sublessee shall pay to Sublessor as
liquidated damages for such failure (and not as a penalty) the amount of $2,622.00
per month ($3.45 per square foot multiplied by 760 square feet) (the “Holdover Damages”) until such time as Sublessee actually delivers
the Returned Space to Sublessee in the condition required by the Sublease.
Payment of the Holdover Damages shall be calculated for the period commencing
on May 1, 2000 and ending on the date the Returned Space is actually
surrendered to Sublessor in the condition required by the Sublease. Holdover
Damages shall be in addition to the Rent under the Annual Rent Rate Schedule.
Sublessee and Sublessor agree that the Holdover Damages represents a reasonable
estimate of the costs and expenses that Sublessor will incur if, on or before
the Effective Date, Sublessee fails to surrender the Returned Space in the
condition required and is fair compensation to Sublessor for the anticipated loss
Sublessor would suffer by reason of such failure. In no event shall this
provision for a late charge be deemed to grant to Sublessee a grace period or
extension of time within which to surrender the Returned Space, nor shall
Sublessor be precluded from exercising any other remedies that it has under the
Sublease or applicable law, including the right to obtain possession of the
Returned Space in accordance with applicable law.

 

4.             The
Sublease. Except as specifically amended by the First Amendment and this
Second Amendment, Sublessor and Sublessee agree that all the provisions and conditions
of the Sublease are and shall continue in full force and effect.

 

5.             Incorporation
of Exhibits. Schedule 2 and Exhibit A, as attached to this Second
Amendment, are incorporated into this Second Amendment and form a part of this
Second Amendment.

 

2

 

IN WITNESS
WHEREOF, Sublessor
and Sublessee have caused this Second Amendment to be duly executed as of the
day and year first written above.

 

	
   

  	
  “SUBLESSOR”

  
	
   

  	
   

  
	
   

  	
  Varian, Inc.,

  
	
   

  	
  a Delaware corporation

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Mark A. Johnson

  	
   

  
	
   

  	
   

  
	
   

  	
  Name:

  	
  MARK A. JOHNSON

  	
   

  
	
   

  	
   

  
	
   

  	
  Its:

  	
  DIRECTOR
  OF CORPORATE FACILITIES

  	
   

  
	
   

  	
   

  
	
   

  	
  “SUBLESSEE”

  
	
   

  	
   

  
	
   

  	
  Communications & Power
  Industries, Inc.,

  a Delaware corporation

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Michael Kraus

  	
   

  
	
   

  	
   

  
	
   

  	
  Name:

  	
  Michael Kraus

  	
   

  
	
   

  	
   

  
	
   

  	
  Its:

  	
  Facilities Mng

  	
   

  
					

 

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SCHEDULE 2

 

 

 

EXHIBIT AQuickLinks
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Exhibit 10.227    
    

CONSULTING CONTRACT  

        THIS CONTRACT made as of the 1st day of April 2004 by and between Prospect Medical Holding, Inc. ("Prospect Medical"), a Delaware
Corporation, having offices at 6083 Bristol Parkway, Culver City, California and The Equity Group Inc. ("Equity"), a New York Corporation, having offices at 800 Third Avenue, New York, New
York. 

        WHEREAS,
Prospect Medical desires to secure the services of Equity as a consultant and Equity desires to provide such services to Prospect Medical; 

        NOW,
THEREFORE, in consideration of the mutual promises contained herein, the parties hereto agree as follows: 

        1.     Equity
hereby agrees that it will render financial public relations/investor relations services to Prospect Medical. These services were fully outlined in a Proposal to
Prospect Medical dated January 12, 2004, which is attached hereto and incorporated. 

        2.     The
Term of this Contract shall commence on April 1, 2004 and shall continue, unless terminated by Prospect Medical or Equity in accordance with Paragraph 9
hereof. 

        3.     (a)
In consideration of the services to be rendered and performed by Equity during the term of this Contract, Prospect Medical will pay Equity six thousand dollars
($6,000) at the beginning of a each month of Year 1. If the Contract is not terminated at the end of the first year in accordance with Paragraph 9 hereof, Prospect Medical will pay Equity seven
thousand dollars ($7,000) per month at the beginning of each month of Year 2; and, if not terminated at the end of the second year in accordance with Paragraph 9 hereof, Prospect Medical will
pay Equity eight thousand dollars ($8,000) per month at the beginning of each month of Year 3. 

        (b)   As
noted in the Proposal dated January 12, 2004, it is expected that the fees quoted above will approximate the fee structure and time commitment were we billing
Prospect Medical on an hourly basis; periodically we will review this with Prospect Medical. 

        (c)   Equity
shall also be reimbursed for all reasonable and necessary out-of-pocket expenses incurred in the performance of its duties, upon
presentation of monthly statements. Any item in excess of $500 shall be pre-approved in advance by Prospect Medical. 

        (d)   In
the event Equity, arranges for a financing, acquisition, merger, corporate sale, business combination or similar such transaction for Prospect Medical or in the event
Equity introduces Prospect Medical to any of the above transactions through an intermediary, including but not limited to investment banking firms, brokers, etc., (with such arrangements and
introductions possibly occurring in the course of Equity's financial public relations activities), Equity shall, prior to or within a reasonable time after, making introduction on behalf of the
Company, indicate to the Company, in writing, that it intends to make or has made an introduction and each party to which the introduction will or has been made which Equity determines might qualify
Equity to receive an additional fee pursuant to the terms of this Contract. Equity shall be entitled to compensation under this Section where Equity was the primary party arranging or introducing the
applicable transaction, and not where the Company, either directly or indirectly, had already been introduced to the transaction through other sources. The Company may at any time direct Equity to
refrain from proceeding with such introductions or transactions if required by the Company's strategic business plan. Equity's efforts on behalf of the Company shall be non-exclusive and
the Company may engage other investment bankers, brokers, finders, consultants and advisors to arrange for transactions of the types described above, and the Company shall at all times control the
timing and process of developing, negotiating and implementing transactions of the types described above.    In such case(s), Prospect Medical shall pay a separate and additional fee to
Equity at the time of closing of such transaction(s), in accordance with applicable industry standards and mutually agreed upon by Equity and Prospect Medical prior to such closing(s), along with such
other reasonable terms and conditions as the parties may agree upon." 

 

        4.     Equity
will use its best efforts to perform these services for Prospect Medical consistent with and recognizing Equity's commitments and obligations to other businesses
for which it performs services. 

        5.     Equity
agrees that neither it nor its employees or agents will during the term of this Contract, or at any time thereafter, disclose or divulge or use, directly or
indirectly, for its own benefit, any confidential information, data, trade secrets, etc. relating to the business of Prospect Medical learned in connection with its work for Prospect Medical. The
provisions of this paragraph shall survive the termination of this Contract, and shall continue until such information, data, trade secrets, etc., becomes public knowledge through no fault of Equity
or any of its employees or agents. 

        6.     As
a consultant for Prospect Medical, Equity must at all times rely upon the accuracy and completeness of the information supplied to Equity by officers, directors,
agents and employees of Prospect Medical. Prospect Medical hereby agrees that in the event that Equity or any of its officers, directors, agents or employees is a party or is threatened to be made a
party to or is involved in any action, suit or proceeding, whether civil, criminal, administrative or investigative (hereinafter a "proceeding"), or to the extent that Equity or any such indemnified
person is a witness in any proceeding, by reason of the fact that Equity is or was serving as a consultant to Prospect Medical, whether the basis of such proceeding is alleged action or inaction in
such capacity as a consultant or in any other capacity while serving as a consultant, Equity or any such person shall be indemnified and held harmless by Prospect Medical, to the fullest extent
permitted by applicable law, against all costs, charges, expenses, liabilities and losses (including attorneys' fees, judgments, fines, or penalties and amounts paid or to be paid in settlement)
reasonably incurred or suffered by Equity or any such person in connection therewith, and such indemnification shall continue as to Equity or any such person after Equity has ceased to be a consultant
to Prospect Medical and shall inure to the benefit of the successors, heirs, executors and administrators or such persons; provided, however, that Prospect Medical shall not be required to indemnify
Equity or any such person if Equity or any such person, as the case may be, was guilty of negligence or misconduct. Equity or any such indemnified party shall have the right to be paid by Prospect
Medical the expenses incurred in defending any such proceeding in advance of its final disposition. This right to indemnification and the right to payment of expenses incurred in defending a
proceeding in advance of its final disposition shall not be exclusive of any other right which Equity may have. 

        7.     Equity
agrees to indemnify, hold harmless and defend Prospect Medical, its directors, officers, employees and agents from and against any and all claims, actions,
proceedings, losses, liabilities, costs and expenses (including, without limitation, reasonable attorneys' fees) incurred by any of them in connection with or as the result of any negligence or
misconduct by Equity or any of its directors, officers, employees or agents, in connection with the performance of Equity's services pursuant to this Contract. Equity shall advance payment for the
reasonable expenses (including attorneys' fees and expenses) incurred by Prospect Medical and any and all such indemnified persons in defending any and all such proceedings in advance of the final
disposition thereof, after presentation of invoices indicating in reasonable detail the work performed. The right of indemnification and the right to have Equity advance the payment of expenses
incurred in defending any and all proceedings in advance of its final disposition shall not be exclusive of any other right which Prospect Medical and any and all such indemnified persons may have. 

        8.     In
the event an action or proceeding is commenced with respect to this Contract, the prevailing party shall be entitled to receive payment from the other party of its
reasonable legal fees and expenses. 

        9.     This
Contract shall continue to be in effect for successive one-year periods, except that it may be terminated by Prospect Medical or Equity on any yearly
anniversary date of the commencement of services, upon 30 days prior written notice to such effect. In the event Prospect Medical or Equity 

2

 

elects
to terminate this Contract: (a) Prospect Medical shall be obligated to pay to Equity fees and expense reimbursements with respect to the period through the date of such termination and
(b) the provisions of Paragraphs 5, 6, 7 and 8 shall survive such termination and continue in full force and effect. 

        10.   This
Contract will not be assigned (including by operation of law) by either party hereto and shall be interpreted under the laws of the State of New York. 

IN
WITNESS WHEREOF, the parties hereto have executed this Contract on the date above written. 

	THE EQUITY GROUP INC.	 	PROSPECT MEDICAL HOLDINGS, INC.
	 	 	 
	By:	 	By:
	 	 	 
	/s/  ROBERT GOLDSTEIN      
 Robert Goldstein

President	 	/s/  JACOB Y. TERNER, M.D.      
 Jacob Y. Terner, M.D.

Chief Executive Officer
	 	 	 

3

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Exhibit 10.227

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