Document:

Exhibit 10.12

 

LEASE AGREEMENT

 

Between

 

TRIQUINT OPTOELECTRONICS, INC.

 

And

 

CYOPTICS, INC.

 

 

REFERENCE PAGE

 

	
Property:
    	
 
    	
An   approximately 137 acre parcel legally described on Exhibit A attached   hereto (“Property”).
    
	
 
    	
 
    	
 
    
	
Property Address: 
    	
 
    	
9999   Hamilton Blvd. 
   Breiningsville, PA 
    
	
 
    	
 
    	
 
    
	
Landlord:
    	
 
    	
TriQuint Optoelectronics, Inc.
    
	
 
    	
 
    	
 
    
	
Landlord’s Address:
    	
 
    	
2300   NE Brookwood Parkway 
   Hillsboro, OR 97124
    
	
 
    	
 
    	
 
    
	
Tenant:
    	
 
    	
CYOptics, Inc.
    
	
 
    	
 
    	
 
    
	
Tenant’s Address:
    	
 
    	
7360   Windsor Drive 
   Allentown, PA 18106
    
	
 
    	
 
    	
 
    
	
Lease Execution Date:
    	
 
    	
April 29,   2005
    
	
 
    	
 
    	
 
    
	
Building(s):
    	
 
    	
The   structures erected on the Property consisting of +/- 375,000 rentable square   feet, either interconnected or free-standing, and as more fully depicted on   Exhibit A-2 hereto.
    
	
 
    	
 
    	
 
    
	
Premises:
    	
 
    	
That   portion of the Buildings depicted on Exhibits A-2 through A-13 attached   hereto, consisting of approximately 89,769 rentable square feet (exclusive of   Tenant’s pro rata share of the common areas).
    
	
 
    	
 
    	
 
    
	
Permitted Use:
    	
 
    	
Research &   Development, engineering, microelectronic manufacturing, and related office &   warehouse. See also Paragraph 1(b) hereof.
    
	
 
    	
 
    	
 
    
	
Initial Term: 
    	
 
    	
Beginning   on the Commencement Date and ending on the Termination Date (unless sooner   terminated or extended pursuant to the Lease).
    
	
 
    	
 
    	
 
    
	
Renewal Term(s):
    	
 
    	
One   (1) additional five (5) year period or Five additional two (2) year   periods, commencing on that calendar day immediately following the expiration   of the Initial Term, and each additional term, which are subject to the terms   and conditions in Paragraph 6 hereof.
    

 

 

	
Commencement Date:
    	
 
    	
April 29,   2005
    
	
 
    	
 
    	
 
    
	
Termination Date: 
    	
 
    	
March 31,   2007
    
	
 
    	
 
    	
 
    
	
Annual Base Rent:
    	
 
    	
One   Million Two Hundred Thousand Dollars ($1,200,000)
    
	
 
    	
 
    	
 
    
	
Additional Rent:
    	
 
    	
All   sums other than Annual Base Rent which Tenant is obligated to pay to Landlord   from time to time pursuant to the terms of this Lease, including Tenant’s   Operating Expense.
    
	
 
    	
 
    	
 
    
	
Tenant’s Proportionate Share:
    	
 
    	
See   Paragraph 6(d) hereof. 
    
	
 
    	
 
    	
 
    
	
Monthly Installment of Rent:
    	
 
    	
$100,000.00
    
	
 
    	
 
    	
 
    
	
Guarantor:
    	
 
    	
TriQuint   Semiconductor, Inc., subject to the terms and conditions in Paragraph 7   hereof.
    
	
 
    	
 
    	
 
    
	
Real Estate Broker Due Commission:
    	
 
    	
NONE
    

 

The Reference Page information is incorporated into and made a part of the Lease. In the event of any conflict between any Reference Page information and the Lease, the Lease shall control. The Lease includes Exhibits “A” through “E” all of which are made a part hereof.

 

 

	
LANDLORD:
    	
 
    	
TENANT:
    
	
 
    	
 
    	
 
    
	
TRIQUINT   OPTOELECTRONICS, INC.
    	
 
    	
CYOPTICS, INC.
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
/s/   Ed Coringrato
    
	
 
    	
 
    	
 
    
	
By:
    	
 
    	
 
    	
By:   Ed Coringrato
    
	
 
    	
 
    	
 
    	
 
    
	
Title:
    	
 
    	
 
    	
Title:   President and CEO
    
	
 
    	
 
    	
 
    	
 
    
	
Date:
    	
 
    	
 
    	
Date:   April 29, 2005
    

 

 

LEASE

 

AGREEMENT OF LEASE (“Lease”) made this 29th day of April 2005, by and between TriQuint Optoelectronics, Inc., a Delaware corporation (“Landlord”), party of the first part, and CyOptics, Inc., a Delaware corporation (“Tenant”), party of the second part.

 

WITNESSETH THAT, for and in consideration of the rents, covenants and agreements herein contained and intending to be legally bound hereby, the parties hereto covenant and agree as follows:

 

Landlord hereby leases to Tenant and Tenant hereby leases from Landlord the Premises set forth and described on the Reference Page. The Reference Page, including all terms defined thereon, is hereby incorporated as part of this Lease.

 

1.                           USE AND RESTRICTIONS ON USE.

 

(a)                       The Premises shall be used and occupied by Tenant only in conformity with law and for the use specified in Reference Data hereon and as further described in Paragraph 1(b) hereinbelow (the “Permitted Use”), and for such other lawful purposes as may be incidental thereto, all to the extent permitted by applicable zoning regulations, subject to the Rules and Regulations attached hereto or as amended from time to time by Landlord. Any violation of these provisions shall be considered a breach of this Lease by Tenant, and Landlord shall have the right to exercise any or all remedies provided herein in the event of a breach of this Lease. Tenant shall not use or permit any use of the Premises other than the use described in Paragraph 1(b) hereinbelow that would create any safety hazard which would be dangerous to the Premises, the Building, the Property or the occupants of same, which would be disturbing to the other tenants or occupants of the Property, or which would cause any increase in premium for any insurance which Landlord may then have in effect with respect to the Property generally. In case of a breach of this covenant, in addition to all other remedies of Landlord hereunder, Tenant agrees to pay to Landlord as Additional Rent any and all increases in premiums for insurance carried by Landlord on the Property (or any portions thereof) so caused by such other use by Tenant. Tenant shall promptly comply with all governmental orders, directives for the correction, prevention and abatement of any violations or nuisances arising out of Tenant’s specific use of the Premises, but not its mere occupancy thereof, all at Tenant’s sole expense and shall comply with all laws, ordinances, regulations and requirements of the municipal, county, state and federal, governments and any and all departments thereof having jurisdiction over the Building and the Property relating to such use. Tenant shall at its own cost and expense obtain any and all licenses and permits necessary for any such use. The parking of automobiles, trucks or other vehicles in the areas not specifically designated for such, and the outside storage of any property are prohibited without Landlord’s prior written consent. If, as a result of any change in the governmental laws, ordinances and regulations, the Property must be altered to lawfully accommodate Tenant’s specific use thereof; such alterations shall be made only with the consent of Landlord, but the entire cost thereof shall be borne by Tenant; provided that the necessity of Landlord’s consent shall in no way create any liability against Landlord for failure of Tenant to comply, or alter the Property to comply, with such laws, ordinances and regulations. Tenant shall not permit any objectionable or unpleasant odors, smoke, dust, gas, noise or vibrations to emanate from the Premises, or take any other action which would constitute a nuisance or would disturb or endanger any other tenants of

 

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the Property, or unreasonably interfere with such tenants’ use of their respective premises. Tenant shall, not receive, store or otherwise handle any product, material or merchandise which is explosive or highly flammable. Tenant shall not permit the Premises to be used for any purpose (including, without limitation, the storage of merchandise) in any manner which would render Landlord’s and/or Tenant’s insurance thereon void.

 

(b)                      Anything to the contrary contained in this Lease and the Hazardous Materials Addendum hereto notwithstanding, Landlord acknowledges that Tenant will be using the Premises for an optoelectronic device epitaxy and wafer fabrication operation, and that such use is specifically permitted hereunder. Landlord further acknowledges that the storage and use of highly toxic, explosive, flammable, and corrosive gases and chemicals are required in connection with such use, and that such use generates odors, noise, and vibrations, all of which are permitted. In the storage, use, and disposal of such chemicals and gases, Tenant agrees to obtain any and all licenses and permits and to abide by all governmental regulations. Tenant also agrees to use all necessary precautions to prevent the use of these chemicals and gases from disturbing or endangering any of the other tenants of the Property In the event of a chemical leak and/or spill, Tenant agrees to have the appropriate detection and alarm systems per governmental regulations to alert all tenants of the Property to the emergency situation.

 

2.                           PREMISES.

 

(a)                       In consideration of the obligation of Tenant to pay Rent as herein provided, Landlord hereby lets to Tenant and Tenant takes and hires from Landlord the Premises comprised of the areas as outlined as “Leased Premises by Tenant” on Exhibits A-2 through A-13 attached hereto and made a part hereof, to have and to hold for the Term, subject to the terms, covenants and conditions of this Lease, together with, appurtenant to the Premises, the right to use in common with Landlord and other tenants, occupants and visitors to the Building, the common lobbies, hallways, loading areas, and other common areas, all as designated as “Property Common Area” on Exhibits A-2 through A-13 hereto, subject to Landlord’s reasonable rules and regulations.

 

(b)                      Tenant shall also have the right to use and exclusively occupy that portion of Building 4 as outlined as “Temporary Premises” on Exhibits A-12.1 and A-12.2 hereto, and hereinafter referred to as the Temporary Premises. Until such time that Tenant vacates Building 4 in its entirety, Building 4 shall be incorporated for the purpose of this Lease as part of the Premises.

 

(c)                       Tenant shall have the right to use, in common with Landlord and other tenants of the Buildings, the areas outlined as “Tenant Use Area” on Exhibits A-2 through A-13 hereto. Tenant’s use of such areas, which shall not be considered part of the Premises hereunder, shall be subject to reasonable rules and regulations determined by Landlord’ from time to time governing coordination of use by Landlord and tenants of the Buildings. It is understood that Landlord may terminate Tenant’s use of such areas by reasonable advance notice to Tenant in the event Landlord, leases such areas to another tenant.

 

(d)                      Tenant shall have the right to use during the Term hereof the areas outlined as “Unrestricted Tenant Access Area” on Exhibits A-2 through A-13 hereto, together with the gas delivery area adjacent to the “CUP” identified on Exhibit A-3 hereto, for purposes of maintaining, repairing, and

 

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replacing utilities, equipment, and other facilities serving the Premises and Tenant’s operations therein, tenant shall have the right at all times to access the Unrestricted Tenant Access Area, and the same shall not be considered part of the Premises hereunder.

 

3                              TERM.

 

(a)                       The Term of this Lease shall be as indicated on the Reference Page. Unless sooner terminated in accordance with the terms hereof or extended pursuant to Paragraph 6 herein, the term of this Lease shall end without the necessity for notice from either party on the Termination Date.

 

(b)                      Landlord and Tenant shall each have the right to terminate Tenant’s use of all or any portion of the Temporary Premises by providing the other party prior written notice. Landlord shall be obligated to provide Tenant a minimum of 120 days notice to vacate that portion of Building 4 as depicted on Exhibits A-12.1 and A-12.2 as “Area 1,” and 60 day’s notice to vacate any other portion of the Temporary Premises. In the event Landlord provides the aforesaid notice to vacate Area 1, Tenant may extend the term of its use of Area I by an additional 30 days by notifying Landlord at least 20 days prior to the expiration of the first 120 day period, of Tenants intention to extend.

 

4.                           RENT.

 

(a)                       Tenant agrees to pay to Landlord the Annual Base Rent and Additional Rent (“Rent”) in equal consecutive monthly installments on or before the first day of each full calendar month during the Term. Rent for any period during the Term which is less than one frill month shall be a prorated portion of the monthly installment of Rent based upon the actual number of calendar days in such month. Said Rent shall be paid to Landlord, without deduction or offset and without notice or demand at Landlord’s address, as set forth on the Reference Page, or to such other person or at such other place as Landlord may from time to time designate in writing.

 

(b)                      Tenant recognizes that late payment of any Rent or other sum due hereunder will result in administrative expense to Landlord, the extent of which additional expense is extremely difficult and economically impractical to ascertain. Tenant therefore agrees that, if Rent or any other sum is due and payable pursuant to this Lease, and when such amount remains due and unpaid ten (10) calendar days after said amount is due, such amount shall be increased by a late charge in an amount equal to the greater of: (a) $50.00, or (b) a sum equal to 5% of the unpaid Rent or other payment. The amount of the late charge to be paid by Tenant shall be, reassessed and added to Tenant’s obligation for each successive monthly period until paid. The provisions of this paragraph in no way relieve Tenant of the obligations to pay Rent or other payments on or before the date on which they are due, nor do the terms of this paragraph in any way affect Landlord’s remedies pursuant to Paragraph 23 of this Lease.

 

(c)                       Tenant shall pay interest to Landlord at the Overdue Interest Rate (as defined below) on account of (i) all overdue installments of Annual Base Rent and payments of Additional Rent due on a regular basis from the tenth day from the due date thereof to the date of payment, and (ii) on all payments of Additional Rent that are not payable to Landlord hereunder on a regular basis from the date of demand for payment until the date of payment. Upon default by Tenant in the payment of Additional Rent or

 

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other sums payable hereunder, Landlord shall be entitled to all rights and remedies to which it would be entitled in default of the payment of Annual Base Rent. As used herein, the term “Overdue interest Rate” shall mean three percent (3%) per annum over the “prime” interest rate quoted from time to time by Bank of America, or its successor, or such other national bank with offices in Philadelphia as may be selected by Landlord (any of such being referred to herein as the “Bank”), as its “prime” rate of interest.

 

(d)                      No security or guaranty, which may now or hereafter be furnished to Landlord for the payment of Rent or the performance of Tenant’s other obligations under this Lease shall in any way constitute a bar to the recovery of the Premises or defense to any action in unlawful detainer or to any other action which Landlord may bring for a breach of any of the terms, covenants or Conditions of this Lease.

 

5.                           PROPERTY OPERATING COSTS.

 

Tenant shall pay for all utilities and services directly relating to its use and occupancy of the Premises during the Initial Term. Landlord shall be responsible for all other utilities-and services for the remainder of the Buildings. The parties agree to reasonably cooperate with each other in an effort to minimize utility and other operating costs, and to explore the feasibility of separately metering utilities. Anything to the contrary in the foregoing notwithstanding, the parties agree to allocate the utility and other operating costs as set forth on Exhibit “D” attached hereto (the “Cost Allocation”). Each party shall be responsible for the total amount of all cost items allocated to it on the Cost Allocation, which shall not be limited by the estimated amounts set forth thereon. Without limiting the generality of the foregoing:

 

(a)                       Landlord’s Portion of Property Operating Cost

 

Landlord shall contract and pay for all costs and expenses of items defined in the Cost Allocation as Landlord Costs, as well as costs and expenses of completing Landlord’s repair and maintenance obligations set forth in Paragraph 10 hereof. If Tenant uses the Premises for any purpose other than for what the Premises were designed, Tenant shall reimburse Landlord for 100% of any increased insurance costs arising out of such other use by Tenant.

 

(b)                       Operating Cost to be Shared between Landlord and Tenant

 

Shared Costs shall be apportioned between Landlord and Tenant in accordance with the dollar amounts listed in the Cost Allocation, under the heading “Shared Costs”, with the following exceptions:

 

(i)                If as of the first (lst) calendar, day of die six (6) month anniversary, of the date of the Property, Transfer (as that term is defined in Paragraph 7 hereof) Tenant remains in occupancy of any portion of the Temporary Premises, Tenant shall become responsible for 100% of the Shared Costs subject to the adjustment in subparagraph (ii) below. At such time as Tenant vacates all of the Temporary Premises. Landlord shall thereafter be responsible for its portion of the Shared Costs for the remainder of the Initial Term.

 

(ii)             Upon the commencement of a lease and occupancy of space in any Building by a party other than Tenant or upon commencement of occupancy of any such space by Landlord for

 

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purposes of completing renovations, hereinafter referred to as “Other Use”, and continuing for the term of said Other Use, Tenant’s responsibility for a Shared Cost shall be equitably reduced after considering the nature and extent of such Other Use and its actual or anticipated impact on such Shared Cost, as reasonably determined by Landlord and Tenant.

 

(iii)          Upon the commencement of ah Other Use in the Building(s), in the event that any other tenant is sharing any of the systems-or services listed on the Cost Allocation as Tenant Costs and continuing for the term of said Other Use, Tenant’s responsibility for Tenant’s Costs shall be reduced equitably in the manner described in subparagraph (ii) above. If the new tenant’s allocation of costs is deemed to be in excess of its proportionate share, then, the new tenant shall be responsible for any increased costs. In the event the new tenant’s allocation of shared costs is deemed to be considerably below its proportionate share, an allocation will be negotiated between Landlord, Tenant and the new tenant.

 

Tenant shall be responsible for paying all of the Shared Costs directly to the utility or service provider. Landlord shall reimburse Tenant for Landlord’s portion of the “Shared Costs” by way of a credit against the monthly installment of Annual Base Rent due hereunder” in the amount of thirteen Thousand Three Hundred Eighty Eight and No/100 Dollars ($13,388,00) per month. Landlord shall also reimburse Tenant by way of a credit against monthly installments of Annual Base Rent due hereunder, for any portion of Shared Costs or Tenant Costs that are allocated to Landlord or any other party in accordance with subparagraphs (ii) or (iii) immediately above.

 

(c)                       Tenant’s Portion of Property Operating Cost

 

Tenant shall be responsible for all costs associated with Tenant’s use and occupancy of the Premises, and which are listed on the Cost Allocation as Tenant Costs without exception. In no event however, shall Tenant be responsible for any Such itemized costs for utilities or services serving any other portion of the Buildings other than the Premises.

 

6.                           RENEWAL TERM/OPTIONS.

 

(a)                       Tenant shall have the option to renew this Lease for the number of additional consecutive term(s) as specified in either Paragraph 6(b) or 6(c) below (“Renewal Terms”), provided that (i) Tenant shall not be in default hereunder at the time of notice, and (ii) Tenant’s not in default upon the renewal date, and (iii) Tenant has continued to pay Annual Base Rent and Additional-Rent timely (after any applicable notice and/or grace periods), and (iv) Tenant shall exercise such option at least 180 days prior to the expiration of the Initial Term (“Option Renewal Notice”), and (v) the Option Renewal Notice shall conclusively define which Option Renewal Term, as defined in Paragraph 6(b) or 6(c) below, Tenant chooses. If Tenant fails to provide such notice, Tenant shall have no further additional right to extend or renew the term of this Lease. Tenant shall forfeit the option to renew if they have been in default more than three (3) times in the 12 months prior to the commencement of die renewal term even if the defaults have been cured as of the commencement of the renewal term. Tenant’s right to renew this Lease under either Paragraph 6(b) or 6(c) below are mutually exclusive of each other, and the selection of one option shall render foe other option automatically terminated.

 

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Tenant, shall have no right to renew this Lease except for the Renewal Option Terms(s) as set forth herein.

 

(b)                       Renewal Option One: One (1), five (5) year renewal term, upon the same terms set forth herein, except that Annual Base Rent, Additional Rent, Utilities, and Operating Expenses payable during such renewal term shall be as follows:

 

	
Year
    	
 
    	
Annual Base Rent:
    
	
1
    	
 
    	
$ 8.00/sq. ft. NNN, plus Tenant’s Proportionate Share of Property Operating   Costs
    
	
2
    	
 
    	
$ 8.50/sq. ft. NNN, plus Tenant’s Proportionate Share of Property Operating   Costs
    
	
3
    	
 
    	
$ 9.00/sq. ft. NNN, plus Tenant’s Proportionate Share of Property Operating   Costs
    
	
4
    	
 
    	
$ 9.50/sq. ft. NNN, plus Tenant’s Proportionate Share of Property Operating   Costs
    
	
5
    	
 
    	
$ l0.00/sq.ft. NNN, plus Tenant’s Proportionate Share of Property Operating   Costs
    

 

(c)                       Renewal Option Two: Five (5), two (2) year renewal options, each exercisable on six (6) months advance written notice, on the same terms set forth, above, except that Rent Utilities, and Operating Expenses payable during such renewal term(s) shall be as follows:

 

Option Term One:         Annual Base Rent
  $ l0.00/sq. ft. NNN, plus Tenant’s Proportionate Share of Property Operating Costs

 

Option Term Two:
 $10.50/sq. ft. NNN, plus Tenant’s Proportionate Share of Property Operating Costs

 

Option Term Three:
 $ 11.00/sq. ft. NNN, plus Tenant’s Proportionate Share of Property Operating Costs

 

Option Term Four:
 $11.50/sq.ft. NNN, plus Tenant’s Proportionate Share of Property Operating Costs

 

Option Term Five:
 $ 12.00/sq. ft. NNN, plus Tenant’s Proportionate Share of Property Operating Costs

 

The foregoing notwithstanding, Tenant shall have the right to convert the third (3rd), fourth (4th), and fifth (5th) two (2) year renewal options set forth above to one (1) year options, upon providing Landlord twelve (12) months notice prior to exercising each such one (1) year option. Upon Tenant’s conversion of either of the third (3rd), fourth (4th), or fifth (5th) options to a one (1) year option each successive option term shall thereafter automatically be converted to a one (1) year option.

 

(d)                      During any Renewal Term(s), the allocation of Property Operating Costs set forth in Paragraph 5 hereof shall no longer be applicable. Instead, Tenant shall pay to Landlord Tenant’s Proportionate Share of Property Operating Costs. For purposes of this paragraph, “Property Operating Costs” and “Tenant’s Proportionate Share” shall be defined as follows:

 

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“Property Operating Costs” shall mean all costs incurred in connection with the operation and maintenance of the Property during each Operating Year. Such costs shall include by way of example, rather than limitation;

 

(i)                             All premiums and fees for fire and extended coverage insurance, insurance against loss of rentals for the Building, and commercial general liability insurance, all in amounts and coverage’s (with additional policies against additional risks) as may be reasonably required by Landlord or this holder of any mortgage on the Property.

 

(ii)                          All costs of routine repair and maintenance, service contracts, costs of governmental permits, costs for snow and ice removal, writer and sewer service charges, gas, fuel, electricity or other utility services and waste (excluding environmental waste) facility maintenance-personnel expense, janitorial and disposal services exclusively for the Common Areas, and reasonable and customary property management fees; provided, however, that Property Operating Costs shall not include (1) the cost of repairing damage to the roof of any of the Buildings, including the Premises, that is known as’ of the Property Transfer date, (2) any cost that under GAAP would be considered capital expenditures (excluding routine, pothole repairs and restriping parking lots, or that are required in order to comply with any governmental or quasi-governmental laws, orders, rules, or requirements, which shall be amortized over a ten (10) year period), (3) costs to perform initial or new construction of any structure on the Property, (4) debt service, (5) build-out of tenant space, (6) brokerage fees and commissions, (7) legal fees, (8) accounting fees, (9) ADA compliance costs, and (10) any costs reimbursed by insurance proceeds, condemnation award or the indemnification of a third party.

 

(iii)                       All taxes, assessments (including special and general assessments, charges and impositions of any governmental or quasi-governmental, authority) imposed on the Property or Building, fees or charges that may be levied in lieu of such taxes (collectively “Real Estate Taxes”).

 

“Tenant’s Proportionate Share” shall be a percentage determined by dividing the rentable square footage of the Premises by the then aggregate rentable square footage of all of the Buildings as represented on Attachments A-4 through A-13, or additional buildings when constructed and occupied. Rentable square footage shall be calculated by the applicable BOMA standard. For purposes of determining Tenant’s pro rata share of the costs of utilities consumed by but not individually metered to Tenant, the rentable square footage of the Premises shall include the square footage of those portions of the Premises that are depicted on Attachments A-7 and A-10, which square footage is not included in the square footage of the Premises set forth on the Reference Page hereof.

 

(e)                       Tenant shall have the right to audit Landlord’s statement of Property Operating Costs upon written notice to Landlord (“Review Notice”) given within sixty (60) days of the receipt of such statement. Within a reasonable time after receipt of the Review Notice, Landlord shall make all pertinent

 

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records available for inspection that are reasonably necessary for Tenant to conduct its review. If any records are maintained at a location other than the management office for the Building, Tenant may either, inspect the records at such other location or pay for the reasonable cost of copying and shipping the records. If Tenant retains an agent to review Landlord’s records, the agent must be with a CPA firm licensed to do business in the state or commonwealth where the Property is located. Tenant shall be solely responsible for all cost’s, expenses and fees incurred for the audit. Within thirty (30) days after the records are made available to Tenant. Tenant shall have the right to give Landlord written notice (an “Objection Notice”) stating in reasonable detail any objection to Landlord’s statement of Property Operating Costs for that year, along with reasonable documentation supporting Tenant’s objection. If Tenant fails to give Landlord an Objection Notice within the 30-day period or fails to provide Landlord with a Review Notice within the 60-day period described above, Tenant shall be deemed to have approved Landlord’s statement of Property Operating Costs and shall be barred from raising any claims regarding the Property Operating Costs for that year. If Tenant provides Landlord with a timely Objection Notice, Landlord and Tenant shall work together in good faith to resolve any issues raised in Tenant’s Objection Notice. If Landlord and Tenant determine that actual Property Operating Costs for the calendar year are less than the amount used in calculating Tenant’s Proportionate Share of Property Operating Costs paid by Tenant during such year, Landlord shall provide Tenant with a credit against the next installment of Annual Base Rent in the amount of the overpayment by Tenant Likewise, if Landlord and Tenant determine that Property Operating Costs for the calendar year are greater than reported, Tenant shall pay Landlord the amount of any underpayment within thirty (30) days. The records obtained by Tenant shall be treated as confidential. In no event shall Tenant be permitted to examine Landlord’s records or to dispute any statement of Property Operating Costs unless Tenant has paid and continues to pay all Rent when due.

 

(f)                         In the event Tenant exercises a renewal option or options, Landlord and Tenant agree to execute an amendment to this Lease or an amended and restated lease to reflect the revised terms applicable during the Renewal Term(s) as set forth in Paragraphs 6, 9, 10, and 17 hereof.

 

7.                           GUARANTY.

 

The parties acknowledge that Landlord intends to sell the Property to Anthem Partners, LLC or an affiliated entity of Anthem (“Purchaser”). Upon the conveyance of the Property to Purchaser (the “Property Transfer”), Landlord’s interest as lessor under this Lease will be assigned to Purchaser, which shall thereupon be the “Landlord” hereunder. Upon the Property Transfer, as additional security for performance of Tenant’s obligations under the terms, and conditions of this Lease during the Initial Term, the within-named Landlord shall have TriQuint Semiconductor, Inc. (“Guarantor”) execute the Guaranty in favor of Purchaser attached hereto as Exhibit “E” to guaranty the obligation of Tenant to pay Annual Base Rent during the Initial Term (without the benefit of any credit thereto in accordance with Paragraph 5(b) hereof). TriQuint Semiconductor, Inc. shall not be required to guaranty any obligations under the Lease during any renewal term(s), and the Guaranty will terminate at the end of the Initial Term and upon any assignment of this Lease or a subletting of the Premises by Tenant.

 

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8.                           ALTERATIONS.

 

Tenant shall not make or suffer to be made any alterations, additions, or improvements which are structural in nature or which affect utility lines or equipment serving other portions of the property, Building or in, on, or to the Premises or any part thereof or make any improvements without the prior written consent of Landlord, which may be withheld in Landlord’s reasonable discretion. When applying for such consent, Tenant shall, if requested by Landlord, furnish complete plans and specifications for such alterations, additions and improvements. In the event Landlord consents to the making of any such alteration, addition or improvement by Tenant, the same shall be made using a contractor acceptable to Landlord at Tenant’s sole cost and expense. All alterations, additions or improvements performed by Tenant shall be constructed in accordance with all government laws, ordinances, rules and regulations and Tenant shall, prior to construction, provide to Landlord waivers of lien to protect Landlord against any loss from any mechanics’, materialmen’s or other liens. Tenant shall pay in addition to any sums due pursuant to Paragraph 5 or 6 above any increase in real estate taxes attributable to any such alteration, addition, or. improvement for so long, during the Term, as such increase is ascertainable. Upon the expiration or sooner termination of the Term as herein provided, Tenant shall upon demand by Landlord, at Tenant’s sole cost and expense, forthwith and with all due diligence remove any such alterations, additions or improvements which are designated by Landlord to be removed, and Tenant shall forthwith and with all due diligence, at its sole cost and expense, repair and restore the Premises to their original condition, reasonable wear and tear and loss by casualty excepted Any alteration, additions or improvements to be done by Tenant or Landlord as part of Tenant’s initial occupancy shall be specified in Exhibit B. Any alteration, addition, or improvement in, on, or to the Premises including carpeting, but excepting movable furniture, personal property, and trade fixtures of Tenant, which are removable without material damage to the property or the Premises, shall be and remain the property of Tenant during the Term but shall, unless Landlord elects otherwise, become a part of the realty and belong to Landlord without compensation to Tenant upon the expiration or sooner termination of the Term and title shall pass to Landlord under this Lease as by a bill of sale.

 

9.                           TENANT’S REPAIRS.

 

(a)                       Except as set forth in the Cost Allocation applicable during the Initial Term, Tenant shall, at its own cost and expense, keep and maintain all parts of the Premises in good condition, promptly making all necessary repairs and replacements, whether ordinary or extraordinary, with materials and workmanship of the same character, kind and quality as the original, including but not limited to; windows, glass and plate glass, doors, skylights, any special office entries, interior walls and finish work, floors and floor coverings, heating, ventilation, air conditioning, and security systems serving the Premises or any portion thereof, and regular removal of trash and debris. In no event shall Tenant be responsible for roof maintenance or repairs, and the same shall be the responsibility of Landlord in accordance with Paragraph 10(a) hereof. Tenant shall also, at its own cost and expense, repair and maintain all electrical mechanical, plumbing, security, and monitoring systems and fixtures used in connection with Tenant’s manufacturing activities on the Premises. Tenant will, as much as possible, keep all such parts of the Premises from deterioration due to ordinary wear and from falling temporarily out of repair, and upon termination of this Lease in any way Tenant will yield up the Premises to Landlord in good condition and repair, reasonable wear and tear excepted.

 

(b)                      Tenant shall not damage any demising wall or disturb the integrity and support provided

 

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by any demising wall and shall, at its sole cost and expense, promptly repair any damage or injury to any demising wall caused by Tenant or its employees, agents or invitees.

 

(c)                       Tenant and its employees, customers and licensees shall have the nonexclusive right to use, in common with the other parties occupying said Building(s), common parking areas, if any, (exclusive of any parking or work load areas designated or to be designated by Landlord for the exclusive use of other tenants occupying or to be occupying other portions of the Building) driveways and alley adjacent to said Building(s), subject to such reasonable rules and regulations as Landlord may from time to time prescribe. Further, Landlord reserves the right to perform paving and landscape maintenance on the grounds around the Property, including, but not limited to, the mowing of grass, care of shrubs, general landscaping and maintenance of common parking areas, driveways and alleys, roof repairs, exterior painting, common sewage line plumbing, and repair and maintenance of any other items, the obligations for which are shared by other tenants in the Building and other improvements of which the Premises are a part. During any Renewal Term(s), Tenant shall be liable for Tenant’s Proportionate Share (as defined in Paragraph 6(d) hereof) of the cost and expense thereof including a reasonable management fee unless Landlord in its sole discretion determines that such cost and expense is properly allocable in another proportion or solely to either Tenant or the other tenants occupying said Building. Tenant shall pay to Landlord its share, determined as aforesaid, of such costs and expenses, upon demand, as Additional Rent, in the event Landlord elects to perform or cause to be performed such work.

 

(d)                      Tenant shall, at its own cost and expense, enter into a regularly scheduled preventive maintenance/service contract with a maintenance contractor approved by Landlord (and a copy thereof shall be furnished to Landlord), for servicing all heating arid air conditioning, mechanical, electrical, security, and monitoring systems and equipment for which Tenant is responsible pursuant to Paragraph 9(a) hereof. The service contract must include all services suggested by the equipment manufacturer in the Operation/maintenance manual and must become effective as of the Commencement Date of this Lease.

 

(e)                       Tenant shall, at its own cost and expense to the extent not covered by the insurance to be maintained by Landlord under Paragraph 25, repair any damage to the Premises or the Property resulting from and/or caused in whole or in part by the negligence or misconduct of Tenant, its agents, servants, employees, patrons, customers, or any other person entering on the Property as a result of Tenant’s business activities or caused by an event of default by Tenant hereunder.

 

10.                    LANDLORD’S REPAIRS.

 

(a)                       Landlord shall at its expense maintain in good repair, reasonable wear and tear and any casualty covered by the provisions of Paragraph 25 excepted, the foundation and the structural soundness of the exterior walls and the roof of the Buildings, together with all electrical, mechanical, and plumbing systems and fixtures serving the Buildings, except as set forth in Paragraph 9(a) hereof. Tenant shall immediately give Landlord written notice of any such defect or need for repairs after which Landlord shall have a reasonable opportunity to repair the same or cure such defect. Landlord’s liability with respect to any defects, repairs or maintenance for which Landlord is responsible under any of the provisions of the Lease shall be limited to the cost of such repairs or maintenance or the curing of such

 

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defect. The term “walls” as used herein shall not include windows, glass or plate glass, doors, special store fronts or office entries.

 

(b)                      In addition to the foregoing but except as set forth in the Cost Allocation, during the Initial Term Landlord shall also be responsible for all other maintenance, repair and replacement obligations and expenses of the Building and the Premises not specifically allocated to Tenant in Paragraph 9(a) hereof.

 

11.                    SIGNS.

 

Tenant shall not install any signs upon, the Premises or the exterior of the Building without Landlord’s prior written consent, which will not unreasonably be withheld. If Landlord shall consent to any sign, upon termination of the Lease, Tenant shall remove said sign and restore the Premises and/or the Building in accordance with the provisions of Paragraph 7 or, at Landlord’s option, said sign shall become part of the realty and belong to Landlord without compensation to Tenant and title shall pass to Landlord under this Lease as by a bill of sale.

 

Landlord shall maintain and control at all times all signage on the Property, including signage adjacent to the Property entrance and directional signage on the Property.

 

12.                    LIENS.

 

Tenant shall keep the Premises and Tenant’s leasehold interest in the Premises free from any liens arising out of any work performed, materials furnished, or obligations incurred by Tenant. In the event that Tenant shall not, within thirty (30) days following the imposition of any such lien, cause the same to be released of record, Landlord shall have the right to cause the same to be released by such means as it shall deem proper, including payment of the claim giving rise to such lien. All such sums paid by Landlord and all expenses reasonably incurred by it in connection therewith shall be considered additional rent and shall be payable to it by Tenant on demand with interest at the rate of 18% per annum or the highest rate permitted by law, whichever is lower.

 

13.                    ASSIGNMENT AND SUBLETTING.

 

(a)                       Tenant shall not have the right to assign or pledge this Lease or to sublet the whole or any part of the Premises, whether voluntarily or by operation of law, or permit the use or occupancy of the Premises by anyone other than Tenant, or assign this Lease for security purposes, without the prior written consent of Landlord, which shall not unreasonably be withheld, conditioned, or delayed, and such restrictions shall be binding upon any assignee or subtenant to which Landlord has consented. In the event Tenant desires to sublet the Premises, or any portion thereof, or assign this Lease, Tenant shall give written notice thereof to Landlord at least 30 days but no more than 60 days prior to the proposed commencement date of such subletting or assignment, which notice shall set forth the name of the proposed subtenant or assignee, the relevant terms of any sublease and copies of financial reports and other relevant financial information of the proposed subtenant or assignee. Notwithstanding any permitted assignment or subletting, Tenant shall at all times remain directly and primarily responsible and

 

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liable for the payment of the rent herein specified and for compliance with all of its other obligations under this Lease. Upon the occurrence of an “event of default” (as hereinafter defined), if the Premises or any part thereof are then sublet, Landlord, in addition to any other remedies provided herein or by law, may collect directly from such subtenant all rents due and becoming due to Tenant under such  sublease  and apply such rent against any sums due to Landlord from Tenant hereunder. No such collection directly from an assignee or subtenant shall be construed to constitute a novation or a release of Tenant from the further performance of Tenant’s obligations hereunder.

 

(b)                      Notwithstanding the generality of the foregoing, Landlord’s consent shall not be required for an assignment of the Lease or a subletting of the Premises, or part thereof (each a “Permitted Transfer”), to an entity (i) into or with which Tenant is merged or consolidated, (ii) to which substantially all of Tenant’s assets are transferred, or (iii) that controls, is controlled by, or is under common control with, Tenant, provided that (x) such entity has a net worth not less than that of Tenant (and during the Initial Term, not less than that of Tenant or Guarantor, whichever is greater and other equivalent security reasonably satisfactory to Landlord is provided to Landlord), (y) Tenant shall notify Landlord no less than 10 business days prior to the effective date of such transaction by providing Landlord with the name of the resulting entity and such other details as Landlord may reasonably request, and (z) Tenant shall exercise a renewal option in accordance with Paragraph 6 hereof, if at all, prior to such Permitted Transfer (failure to so exercise a renewal option shall act to terminate all renewal options).

 

(c)                       To the extent required hereunder, consent by Landlord to any assignment or subletting shall not be construed as consent to any other assignment or subletting. Any sale, assignment, mortgage, transfer of this Lease or subletting which does not comply with the provisions of this paragraph shall be void.

 

(d)                      Except in connection with a Permitted Transfer, in the event that Tenant sells, sublets, assigns, or transfers this Lease and at any time receives periodic rent and/or other consideration which exceeds that which Tenant would at that time be obligated to pay to Landlord. Tenant shall pay to Landlord 75% of the net increase in such rent as such rent is received by Tenant and 75% of any other consideration received by Tenant, after reduction for customary and reasonable brokerage commissions and legal fees incurred in negotiating and documenting the assignment or sublease.

 

(e)                       Should Landlord agree to authorize and execute an assignment or sublease agreement, Tenant will pay to Landlord on demand a sum equal to all of Landlord’s costs, including attorney’s fees, incurred in connection with such assignment or transfer.

 

14.                    INDEMNIFICATION.

 

Landlord shall not be liable and Tenant hereby waives all claims against Landlord for any damage to any property or any injury to any person in or about the Premises, Building or the Property by or from any cause whatsoever, (including without limiting the foregoing, rain or water leakage of any character from the roof, windows, walls, basement, pipes, plumbing works or appliances; the Building not being in good condition or repair, gas, fire, oil, electricity or theft); except that Landlord will indemnify and hold Tenant harmless from such claims to the extent caused by the negligent or willful act of

 

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Landlord, or its agents, employees or contractors. Tenant shall hold Landlord harmless from and defend Landlord against any and all claims, liability or costs (including court costs and attorney’s fees) for any damage to any property or any injury to any person occurring in, on or about the Premises, Building or the Property when such injury or damage shall be caused by or arise from, in part or in whole, (a) the act, neglect, fault, or omission to meet the standards imposed by any duty with respect to the injury or damage, by Tenant, its agents, servants, employees or invitees; or (b) the conduct or management of any work or thing whatsoever done by Tenant in or about the Premises, Building or Property or from transactions of Tenant concerning the Premises, Building or Property. The provisions of this paragraph shall survive the termination of this Lease with respect to any claims or liability occurring prior to such termination.

 

15.                    INSURANCE.

 

(a)                       During the term of this Lease and any extension thereof, Tenant shall obtain and maintain and promptly pay all premiums for the following types of insurance in the amounts specified and in the form heretofore provided for:

 

(i)                General Public Liability insurance covering the Premises and Tenant’s use thereof against claims for bodily or personal injury or death, and property damage occurring upon, in or about the Premises, such insurance to afford protection to the limit of not less than $2,000,000.00 combined single limit in respect of injury or death to any number of persons arising out of any one occurrence. The insurance coverage required under this Paragraph shall, in addition, extend to any liability of Tenant arising out of the indemnities provided for in Paragraph 13. The general aggregate limits under the General Public Liability Insurance policy or policies must apply separately to the Premises and to Tenant’s use thereof. Accordingly, if Tenant obtains General Public Liability Insurance hereunder in the Commercial General Liability form of policies, or its equivalent as determined by Landlord, Tenant shall also obtain Insurance Services Office (“ISO”). Endorsement CG-25-04-11-85, Amendment-Aggregate Limits of Insurance (Per Location) or its equivalent, as determined by Landlord (the “Endorsement”). The certificate of insurance evidencing the Commercial General Liability form of policies and the Endorsement shall specify on the face thereof that the limits of such policies apply separately to the Premises.

 

(ii)             Insurance covering: (1) all of the items of leasehold improvements; and (2) trade fixtures, merchandise and personal property from time to time in, on or upon the Premises. All such insurance coverage shall be in amounts not less than one hundred percent (100%) of the full replacement cost from time to time during the Term of this Lease, and any renewal thereof providing protection against perils included within the standard state form of fire and extended coverage insurance policy, together with insurance against sprinkler damage, vandalism and malicious mischief. The policy required by subsection (1) above shall name Landlord as Loss Payee. All other policy proceeds from insurance coverage carried by Tenant pursuant to (2) above shall be held in trust by Tenant’s insurance company for the repair, reconstruction and restoration or replacement of the Property damaged or destroyed unless this Lease shall cease and terminate under the provisions of this Paragraph 15.

 

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(iii)          Workers Compensation and Employer’s Liability insurance affording statutory coverage and containing statutory limits with the Employer’s Liability portion thereof to have minimum limits of $100,000.00.

 

(b)                      All policies of insurance provided for in this Paragraph 15 shall be issued in form acceptable to Landlord by insurance companies with a financial size of not less than A+ as rated in the most current available ‘‘Best’s Insurance Reports” and qualified to do business in the Commonwealth of Pennsylvania, Each and every such polity:

 

(i)                except for Workers’ Compensation, shall be issued in the names of Landlord and Tenant and any other parties in interest from time to time designated in writing by notice from Landlord to Tenant;

 

(ii)             shall be for the mutual and joint benefit and protection of Landlord and Tenant and any such other parties in interest;

 

(iii)          shall (or a certificate thereof shall) be delivered to each of Landlord and any such other parties in interest prior to delivery of possession of the Premises to Tenant and thereafter within thirty (30) days prior to the expiration of each such policy, and, as often as any such policy shall expire or terminate. Renewal or additional policies shall be procured and maintained by Tenant in like manner and to like extent;

 

(iv)         shall contain a provision that the Insurer will give to Landlord and such other parties in interest at least thirty (30) days notice in writing in advance of any material change, cancellation, termination or lapse, or the effective date of any reduction in the amounts of insurance;

 

(v)            shall be written as a primary policy which does not contribute to and is not in excess of coverage which Landlord may carry.

 

(c)                       Any insurance provided for in this Paragraph 15 may be maintained by means of a policy or policies of blanket insurance, covering additional items or locations or insured, provided, however, that:

 

(i)                Landlord and any other parties in interest from time to time designated by Landlord to Tenant shall be named as an additional insured thereunder as its interest may appear;

 

(ii)             the coverage afforded Landlord and any such other parties in interest will not be reduced or diminished by reason of the use of such blanket policy of insurance;

 

(iii)          any such policy or policies (except any covering the risks referred to in Paragraph 15(b)(iii) shall specify therein (or Tenant shall furnish Landlord with a written statement from the insurers under such policy specifying) the amount of the total insurance allocated to Tenant’s improvements and property more specifically detailed in Paragraph 14(b)(ii); and

 

(iv)         the requirements set forth in this Paragraph 15 are otherwise satisfied.

 

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(d)                      Tenant agrees to permit Landlord at all reasonable times to inspect the policies of insurance of Tenant with respect to the Premises for which policies or copies thereof are not delivered to Landlord.

 

(e)                       During the term of this Lease and any extension thereof, Landlord shall obtain and maintain the insurance required by Paragraph 25(a) hereof.

 

16.                    WAIVER OF SUBROGATION.

 

So long as their respective insurers so permit, Tenant and Landlord hereby mutually waive their respective rights of recovery against each other for any loss insured by fire, extended coverage or all risk insurance now or hereafter existing for the benefit of the respective party. Each party shall obtain any special endorsements required by their insurer to evidence compliance with the aforementioned waiver.

 

17.                    SERVICES AND UTILITIES.

 

Subject to the last sentence of this paragraph, Landlord agrees to provide, at its cost, municipal water, electricity and natural gas connections into the Premises, but Tenant shall pay for all water, gas, heat, light, power, telephone, sewer, sprinkler system charges and other utilities and services used in, on or from the Premises, together with any taxes, penalties, and surcharges or the like pertaining thereto and any maintenance charges for utilities. Tenant shall furnish all electric light bulbs, tubes and ballasts. If any such services are not separately metered to Tenant, Tenant shall pay such proportion of all charges jointly shared or metered with other premises as determined by Landlord, in its sole discretion, to be reasonable. Any such charges paid by Landlord and assessed against Tenant shall be immediately payable to Landlord on demand and shall be Additional Rent hereunder. Landlord shall in no event be liable for any interruption or failure of utility services on or to the Premises, except, if caused by the negligent or willful act of Landlord, its employees, officers, agents, or contractors. Tenant shall provide, and pay separately for janitorial services and supplies for the Premises. Anything to the contrary contained in the foregoing notwithstanding, during the Initial Term the costs of such utilities and services shall be allocated to Landlord and Tenant in accordance with Paragraph 5 hereof.

 

18.                    HOLDING OVER.

 

Tenant shall pay Landlord for each day Tenant retains possession of the Premises or part thereof after termination hereof by lapse of time or otherwise, one hundred fifty percent (150%) of the amount of the Rent for the last period prior to the date of such termination prorated on a daily basis, and also pay all damages sustained by Landlord by reason of such retention, and shall indemnify and hold Landlord harmless from any loss or liability, resulting from such holding over and delay in surrender. Acceptance by Landlord of rent after such termination shall not constitute a renewal. This provision shall not be deemed to waive Landlord’s right of re-entry or any other right hereunder or at law.

 

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19.                    SUBORDINATION.

 

This Lease is and shall be subject and subordinate at all times to any lease under which Landlord is in control of the Premises, to the rights of the owner of the Property, and to all mortgages and other encumbrances now or hereafter placed upon the Premises or the Property without the necessity of any further instrument or act on the part of Tenant to effectuate such subordination. Tenant shall from time to time execute and deliver within ten (10) days following the request of Landlord or Landlord’s mortgagee, grantee or lessor, recordable instruments evidencing such subordination and Tenant’s agreement to attorn to the holder of such prior right provided the holder of such prior right will agree to recognize this Lease. Notwithstanding the foregoing, any mortgagee may at any time subordinate its mortgage to this Lease, without Tenant’s consent, by notice in writing to Tenant, whereupon this Lease shall be deemed subordinate prior to such mortgage without regard to their respective dates.

 

20.                    RULES AND REGULATIONS.

 

Tenant covenants and agrees that Tenant, its employees, agents, invitees, licensees  and other visitors, shall faithfully observe and comply with all the rules and regulations as set forth in Exhibit “C” attached hereto and all reasonable modifications of and additions thereto from time to time put into effect by Landlord as well as all covenants, conditions and restrictions of record. Landlord shall not be responsible to Tenant for the non-performance by any other tenant or occupant of the Property of any such rules and regulations unless Landlord fails to make reasonable efforts to attempt to enforce the same after reasonable notice of such non-performance from Tenant Landlord shall not promulgate any rule or regulation for the Property, the Land or the common areas and facilities which impairs Tenant’s use, occupancy and/or enjoyment of the Premises or the operation of its business thereon or therefrom during regular business hours.

 

21.                    REENTRY BY LANDLORD.

 

Landlord reserves and shall at all times, following reasonable Advance notice to Tenant and subject to a Tenant escort (except in the event of an emergency), have the right to reenter the Premises to inspect the same, to supply any service to be provided by Landlord to Tenant hereunder, to show said Premises to prospective purchasers, mortgagees, or tenants, and to alter, improve, or repair the Premises and any portion of the Building, without abatement of rent, and may for that purpose erect, use, and maintain scaffolding, pipes, conduits, and other necessary structures in and through the Building and Premises where reasonably required by the character of the work to be performed, provided entrance to the Premises shall not be blocked thereby, and further provide that the business of Tenant shall not be interfered with unreasonably. In the event that Landlord requires access to any under-floor or above ceiling duct, walkway or otherwise accessible space, Landlord’s liability for carpet (or other floor covering) or ceiling replacement shall be limited to replacement of the piece removed. Tenant hereby waives any claim for damages for any injury or inconvenience to or interference with Tenant’s business, any loss of occupancy or quiet enjoyment of the Premises, and any other loss occasioned thereby except if arising from the negligence or misconduct of Landlord, its agents, contractors or employees, or if Landlord’s action unreasonably interferes with Tenant’s business. For each of the aforesaid purposes, Landlord shall at all times have and retain a key with which to unlock all of the doors in the Premises,

 

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excluding Tenant’s vaults and safes, or special security areas (designated in advance), and Landlord shall have the right to use any and all means which Landlord may deem proper to open said doors in an emergency to obtain entry to any portion of the Premises. Landlord shall also have the right at any time to change the arrangement and/or location of entrances or passageways, doors and doorways, and corridors, elevators, stairs, toilets or other public parts of the Building, and to change the name, number or designation by which the Building is commonly known.

 

22.                    DEFAULT.

 

The following events shall be deemed to be events of default under this Lease:

 

(a)                       Tenant shall fail to pay when due any sum of money becoming due to be paid to Landlord hereunder, whether such sum be any installment of the rent herein reserved, any other amount treated as additional rent hereunder, or any other payment or reimbursement to Landlord required herein, whether or not treated as Additional Rent hereunder, and such failure shall continue for a period of ten (10) days following written notice, from Landlord that such payment was due; provided, however, that Landlord shall only be required to give notice of such failure to pay the same obligation hereunder two (2) times in any twelve (12) month period; or

 

(b)                      Tenant shall fail to comply with any term, provision or covenant of this Lease other than by failing to pay when or before due any sum of money becoming due to be paid to Landlord hereunder, and shall not cure such failure within thirty (30) days after receipt by Tenant of written notice thereof provided that if such failure to comply cannot reasonably be cured within thirty (30) days, Tenant shall not be in default hereunder so long as Tenant initiates such, compliance within thirty (30) days and pursues such compliance diligently to completion thereafter; or

 

(c)                       Tenant shall abandon or vacate any substantial portion of the Premises; or uses or occupies the Premises in a manner or for such a purpose which is not consistent with the approved Use, or without Landlord’s prior written consent, Tenant removes or attempts to remove or manifests an intention to remove any or all of Tenant’s property from the Premises otherwise than in the ordinary and usual course of business; or

 

(d)                      Tenant shall fail to vacate the Premises immediately upon termination of the Lease, by lapse of time or otherwise, or upon termination of Tenant’s right to possession only; or

 

(e)                       The leasehold interest of Tenant shall be levied upon under execution or be attached by process of law or Tenant shall fail to contest diligently the validity of any lien or claimed lien and give sufficient security to Landlord to insure payment thereof or shall fail to satisfy any judgment rendered thereon and have the same released or transferred to other security, and such default shall continue for twenty (20) days after receipt of written notice thereof by Tenant; or

 

(f)                         Tenant shall become insolvent, admit in writing its inability to pay its debts generally as they become due, file a petition in bankruptcy or a petition to take advantage of any insolvency statute, make an assignment for the benefit of creditors, make a transfer in fraud of creditors, apply for or consent

 

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to the appointment of a receiver of itself or of the whole or any substantial part of its property, or file a petition or answer seeking reorganization or arrangement under the federal, bankruptcy laws, as now in effect or hereafter amended, or any other applicable law or statute of the United States or any state thereof; or

 

(g)                      A court of competent jurisdiction shall enter an order, judgment or decree adjudicating Tenant a bankrupt, or appointing, a receiver of Tenant, or of the whole or any substantial part of its property, without the consent of Tenant, or approving a petition filed against Tenant seeking reorganization or arrangement of Tenant under the bankruptcy laws of the United States, as now in effect or hereafter amended, or any state thereof and such order, judgment or decree shall not be vacated or set aside or stayed within thirty (30) days from the date of entry thereof; or

 

(h)                      Any of the events described in subparagraphs (f) and (g) immediately above occur as to any guarantor or surety of Tenant’s performance under this Lease, or such guarantor or surety defaults on any provision under its guaranty or suretyship agreement, and Tenant fails, within thirty (30) days of such event, to provide equivalent, alternative security reasonably acceptable to Landlord.

 

23.                    REMEDIES.

 

Upon the occurrence of any of such events of default described in Paragraph 22 or elsewhere in this Lease, Landlord shall have the Option to pursue any one or more of the following remedies without any notice of demand whatsoever:

 

(a)                       Landlord may, at its election, terminate this Lease or terminate Tenant’s right to possession only, without terminating the Lease;

 

(b)                      Upon any termination of this Lease, whether by lapse of time or otherwise, or upon any termination of Tenant’s right to possession without termination of the Lease, Tenant shall surrender possession and vacate the Premises immediately, and deliver possession thereof to Landlord, and Tenant hereby grants to Landlord full and free right to enter into and upon the Premises in such event with or without process of law and to repossess Landlord of the Premises as of Landlord’s former estate and to expel or remove Tenant and any others who may be occupying or within the Premises and to remove any and all property therefrom, without being deemed in any manner guilty of trespass, eviction or forcible entry or detainer, and without incurring any liability for any damage resulting therefrom, Tenant hereby waiving any right to claim damage for such reentry and expulsion, and without relinquishing Landlord’s right to rent or any other right given to Landlord hereunder or by operation of law;

 

(c)                       Upon any termination of this Lease, whether by lapse of time or otherwise, Landlord shall be entitled to recover as damages, all Rent, including any amounts treated as Additional Rent hereunder, and other sums due and payable by Tenant on the date of termination, plus the sum of (i) an amount equal to the then present value of the Rent, including any amounts treated as Additional Rent hereunder, and other sums provided herein to be paid by Tenant for the residue of the Term hereof, less the fair rental value of the Premises for such residue (taking into account the time and expense necessary to obtain a replacement tenant or tenants, including expenses hereinafter described in subparagraph (d)

 

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relating to recovery of the Premises, preparation for reletting and for reletting, itself), and (ii) the cost of performing any other covenants which would have otherwise been performed by Tenant;

 

(d)                      (i) Upon any termination of Tenant’s right to possession only without termination of the Lease, Landlord may, at Landlord’s option, enter into the Premises, remove Tenant’s signs and other evidences of tenancy, and take and hold possession thereof as provided in subparagraph (b) above, without such entry and possession terminating the Lease or releasing Tenant, in whole or in part, from any obligation, including Tenant’s obligation to pay the rent, including any amounts treated as additional rent, hereunder for the full Term. In any such case Tenant shall pay forthwith to Landlord; if Landlord so elects, a sum equal to the entire amount of the rent, including any amounts treated as additional rent hereunder, for the residue of the Term plus any other sums provided herein to be paid by Tenant for the remainder of the Term.

 

(e)                       Landlord may relet, but need not (but without limiting Landlord’s duty to mitigate its damages), the Premises or any part thereof for such rent and upon such terms as Landlord in its sole discretion shall determine (including the right to relet the Premises for a greater or lesser term than that remaining under this Lease, the right to relet the Premises as a part of a larger area, and the right to change the character or use made of the Premises) and Landlord shall not be required to accept any tenant offered by Tenant or to observe any instructions given by Tenant about such reletting. In any such case, Landlord may make repairs, alterations and additions in or to the Premises, and redecorate the same, to the extent Landlord reasonably deems necessary in order to relet the Premises, and Tenant shall, upon demand, pay the cost thereof, together with Landlord’s expenses of reletting including, without limitation, any broker’s commission incurred by Landlord. If the consideration collected by Landlord upon any such reletting plus any sums previously collected from Tenant are not sufficient to pay the full amount of all rent, including any amounts treated as additional rent hereunder and other sums reserved in this lease for the remaining term hereof, together with the costs of repairs, alterations, additions, redecorating, and Landlord’s expenses of reletting and the collection of the rent accruing therefrom (including attorney’s fees and broker’s commissions), Tenant shall pay to Landlord the amount of such deficiency upon demand and Tenant agrees that Landlord may file suit to recover any sums falling due under this section from time to time.

 

(f)                         Landlord may, at Landlord’s option, enter into and upon the Premises, with or without process of law, if Landlord determines in its reasonable discretion that Tenant is not acting within a commercially reasonable time to maintain, repair or replace anything for which Tenant is responsible hereunder and correct the same, without being deemed in any manner guilty of trespass, eviction or forcible entry and detainer and without incurring any liability for any damage resulting therefrom and Tenant agrees to reimburse Landlord, on demand, as additional rent, for any expenses which Landlord may reasonably incur in thus effecting compliance with Tenant’s obligations under this Lease;

 

(g)                      Any and all property which may be removed from the Premises by Landlord pursuant to the authority of the Lease or of law, to which Tenant is or may be entitled, may be handled, removed and stored, as the case may be, by or at the direction of Landlord at the risk, cost and expense of Tenant, and Landlord shall in no event be responsible for the value, preservation or safekeeping thereof. Tenant shall pay to Landlord, upon demand, any and all expenses incurred in such removal and all storage charges

 

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against such property so long as the same shall be in Landlord’s possession or under Landlord’s control. Any such property of Tenant not retaken by Tenant from storage within 30 days after removal from the Premises shall, at Landlord’s option, be deemed conveyed by Tenant to Landlord under this Lease as by a bill of sale without further payment or credit by Landlord to Tenant.

 

Pursuit of any of the foregoing remedies shall not preclude pursuit of any of the other remedies herein provided or any other remedies provided by law or at equity (all such, remedies being cumulative), nor shall pursuit of any remedy herein provided constitute a forfeiture or waiver of any rent due to Landlord hereunder or of any damages accruing to Landlord by reason of the violation of any of the terms, provisions and covenants herein contained. No act or thing done by Landlord or its agents during the Term shall be deemed a termination of this Lease or an acceptance of the surrender, of the Premises, and no agreement to terminate this Lease or accept & surrender of said Premises shall be valid unless in writing signed by Landlord. No waiver by Landlord of any violation or breach of any of the terms, provisions and covenants herein contained shall be deemed or construed to constitute a waiver of any other violation or breach of any of the terms, provisions and covenants herein contained Landlord’s acceptance of the payment of rental or other payments hereunder after the occurrence of an event of default shall not be construed as an accord and satisfaction, compromise or waiver of such default, unless Landlord so notifies Tenant in writing. Forbearance by Landlord in enforcing one or more of the remedies herein provided upon an event of default shall not be deemed or construed to constitute a waiver of such defaulter of Landlord’s right to enforce any such remedies with respect to such default or any subsequent default.

 

(h)                      If either Landlord or Tenant shall institute any action or proceeding against the other relating to any of the terms, covenants; conditions or provisions of this Lease, or there occurs any event of default by Tenant or default by Landlord, the unsuccessful party in such action or proceeding shall reimburse the successful party for reasonable attorney’s fees and other costs and expenses incurred therein by the successful party, including fees, costs and expenses incurred in any appellate proceeding.

 

24.                    QUIET ENJOYMENT.

 

Tenant upon paying the Rent and all Additional Rent and all other sums and charges herein provided for and, upon observing, keeping, and performing all covenants, agreements and conditions of this Lease on Tenant’s part to be observed, kept and performed, shall quietly have and enjoy the Premises throughout the Lease Term without hindrance or molestation by Landlord or by anyone claiming by, through or under Landlord, subject however, to the exceptions, reservations and conditions of this Lease.

 

25.                    DAMAGE BY FIRE, ETC.

 

(a)                       Landlord agrees to maintain standard fire and extended coverage insurance covering the Building(s) in an amount not less than the full “replacement cost” thereof (as such term is defined in the Replacement Cost Endorsement to be attached thereto, if any) insuring against the perils of fire and lightning and including extended coverage, and earthquake and flood coverage, or at Landlord’s option, “All Risk” coverage, with earthquake and flood, coverage, all such coverages and endorsements to be as defined, provided and limited in the standard bureau forms prescribed by the insurance regulatory

 

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authority for the state in which the property is situated for use by insurance companies admitted in such State for the writing of such insurance, on risks located within such state. Subject to the provisions of Paragraphs 25(c), 25(d) and 25(f), such insurance shall be for the sole benefit of Landlord and under its sole control. Such insurance shall include protection for continuation of rental payments for a period of 12 months in the event of any damage caused by the perils referred to above. Said payments shall be made to Landlord within thirty (30) days after presentation to Tenant of Landlord’s statement setting forth the amount due, and the failure to pay such share shall be treated in the same manner as a default in the payment of rent hereunder when due. Any payment to be made pursuant to this Paragraph with respect to the year in which the Lease commences or terminates shall be prorated. Tenant shall not take but separate insurance concurrent in form or contributing in the event of loss with that required to be maintained by Landlord hereunder unless Landlord is included as an additional insured thereon. Tenant shall immediately notify Landlord whenever any such separate insurance is taken out and shall promptly deliver to Landlord the policy or policies of such insurance.

 

(b)                      If the Building should be damaged or destroyed by fire, tornado or any other act of God, Tenant shall give immediate written notice thereof to Landlord.

 

(c)                       If the Building should be damaged by any peril covered by the insurance to be provided by Landlord under Paragraph 25(a), but only to such extent that the Building can in Landlord’s estimation be materially restored within one hundred eight (180) days after the date of such damage (except, that Landlord may elect not to rebuild if such damage occurs during the last year of the Term, unless Tenant has exercised its option to renew the term of this Lease within fifteen (15) days after the date of the casualty, this Lease shall not terminate, and Landlord shall, at its sole cost and expense, thereupon proceed with reasonable, diligence to rebuild and repair such Building to substantially the condition in which it existed prior to such damage, except Landlord shall not he required to rebuild, repair or replace any part of the partitions, fixtures, additions and other improvements which may have been placed in, on or about the Premises by Tenant. If the Premises are untenantable in whole or in part following such damage, the rent and all additional rent payable hereunder during the period in which the Premises are untenantable until materially restored shall be reduced to such extent as may be fair and reasonable under all of the circumstances. In the event that (i) under the circumstances then prevailing, it cannot be reasonably projected that Landlord can materially restore the damage within 180 days after such damage has occurred, (ii) such damage is not fully covered by Landlord’s insurance, (iii) a material portion of the Premises is damaged at a time when there is less than one year left on the unelapsed Term, or (iv) Landlord, having commenced the restoration work, should fail to materially restore the Building Within one hundred eighty (180) days after the date of such damage, Tenant may (if it has given Landlord at least thirty (30) days notice of its intent to do so) at its option terminate this Lease by delivering written notice of termination to Landlord as Tenant’s exclusive remedy, whereupon all rights and obligations hereunder shall cease and terminate; provided, however, that if construction is delayed because of changes, deletions; or additions in construction requested by Tenant, strikes, lockouts, casualties, acts of God, war, material or labor shortages, Governmental regulation or control or other causes beyond the reasonable control of Landlord, the period for restoration, repair or rebuilding shall be extended for the amount of time Landlord is so delayed. For purposes hereof, the Building or Premises shall be deemed “materially restored” if they are in such condition as would not prevent or materially interfere with Tenant’s use of the Premises for the purpose for which it was then being used.

 

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If the Building should be damaged or destroyed by fire, tornado or any other act of God and Landlord is not required to rebuild pursuant to the provisions of Paragraph 25(c), this Lease shall at the option of Landlord or Tenant, given within 30 days after such damage, terminate and the rent and additional rent shall be abated during the unexpired portion of the Term of this Lease, effective upon the date of the occurrence of such damage.

 

(d)                      Notwithstanding anything herein to the contrary, in the event the holder of any indebtedness secured by a mortgage or deed of trust covering the Premises or the Building requires that the insurance proceeds be applied to such indebtedness, then Landlord shall have the right to terminate this Lease by delivering written notice of termination to Tenant within 15 days after such requirement is made by any such holder, whereupon this Lease shall end on the date of such notice to Tenant as if the date of such notice were the date originally fixed in this Lease for the expiration of the Term.

 

(e)                       In the event of any damage or destruction to the Premises by any peril covered by the provisions of this Paragraph, Tenant shall, upon notice from Landlord, forthwith remove; at its, sole cost and expense, such portion or all of Tenant’s shelves, bins, machinery and other trade fixtures and all other property belonging to Tenant or his licensees from such portion or all of the Premises as Landlord shall request and Tenant hereby indemnifies and holds Landlord (including without limitation the trustee and beneficiaries if Landlord is a trust), Landlord’s agents and employees harmless from any loss, liability, claims, suits, costs, expenses, including attorney’s fees and damages, both real and alleged, arising out of any damage or injury as a result of the failure to properly secure the Premises prior to such removal and/or as a result of such removal.

 

26.                    EMINENT DOMAIN.

 

(a)                       If the whole, or any part of the Building should be taken for any public or quasi-public use under governmental law, ordinance or regulation, or by right of eminent domain, or by private purchase in lieu thereof and the taking would prevent or materially interfere with the use of the Premises or Building for the purposes for which they are then being used, as determined by Tenant in its sole discretion, Tenant may, at its option by notice to Landlord, terminate this Lease effective when the physical taking of said property shall occur.

 

(b)                      If part of the Building, shall be taken for any public or quasi-public use under any governmental law, ordinance or regulation, or by right of eminent domain, or by private purchase in lieu thereof, and this Lease is not terminated as provided in Paragraph 25(a), this Lease shall not terminate but the rent payable hereunder during the unexpired portion of the Term of this Lease shall be reduced to such extent, if at all, as may be fair and reasonable under all of the circumstances and Landlord shall undertake to restore the Premises to a condition suitable for Tenant’s use, as near to the condition thereof immediately prior to such taking as is reasonably feasible under all the circumstances.

 

(c)                       In the event of any such taking or private purchase in lieu thereof Landlord and Tenant shall each be entitled to receive and retain such separate awards and/or portion of lump sum awards as may be allocated to their respective interests in any condemnation proceedings; provided that Tenant shall not be entitled to receive any award for Tenant’s loss of its leasehold interest, the right to such award

 

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being hereby assigned by Tenant to Landlord.

 

27.                    SALE BY LANDLORD.

 

In event of a sale or conveyance by Landlord of the Building to a purchaser which assumes Landlord’s obligations hereunder in writing, the same shall operate to release Landlord from any future liability upon any of the covenants or conditions expressed or implied, herein contained in favor of Tenant, and in such event Tenant agrees to look solely to the responsibility of the successor in interest of Landlord in and to this Lease. Except as set forth in this Paragraph this Lease shall not be affected by any such sale, and Tenant agrees to attorn to the purchaser or Landlord’s assignee. If any security has been given by Tenant to secure the faithful performance of any of the covenants of this Lease, Landlord may transfer or deliver said security, as such, to Landlord’s successor in interest and thereupon Landlord shall be discharged from any further liability with regard to said security, provided that any successor shall not be liable for such security unless such successor receives the same. Notwithstanding the generality of the foregoing, this provision shall not serve to release or relieve the entity identified as Landlord first above written (namely, TriQuint Optoelectronics, Inc.), or any affiliate thereof, from their respective obligations to Tenant under that certain Asset Purchase Agreement dated as of April 14, 2005 between said Landlord and Tenant.

 

28.                    ESTOPPEL CERITIFICATES.

 

Within ten business days following receipt of written request which Landlord may make from time to time, Tenant shall execute and deliver to Landlord or any prospective Landlord or mortgagee or prospective mortgagee a sworn statement certifying: (a) the date of commencement of this Lease, (b) the fact that this Lease is unmodified and in full force and effect (or, if there have been modifications hereto, that this Lease is in frill force and effect, as modified, and stating the date and nature of such modifications), (c) the date to which the rent and other sums payable under this Lease have been paid, and (d) the fact that there are no current defaults under this Lease by either Landlord or Tenant except as specified in Tenant’s statement, and (e) such other matters requested by Landlord. Landlord and Tenant intend that any statement delivered pursuant to this Paragraph may be relied upon by any mortgagee, beneficiary or purchaser and Tenant shall be liable for all loss, cost or expense resulting from the failure of any sale or funding of any loan caused by any material misstatement contained in such estoppel certificate. Tenant hereby irrevocably appoints Landlord or if Landlord is a trust, Landlord’s beneficiary or agent, as attorney-in-fact for Tenant with full power and authority to execute and deliver in the name of Tenant such estoppel certificate. If Tenant fails to deliver the same within such ten (10) day period and such certificate as signed by Landlord, Landlord’s beneficiary or agent, as the case may be, shall be fully binding on Tenant, if Tenant fails to deliver a contrary certificate within five days after receipt by Tenant of a copy of the certificate executed by Landlord, Landlord’s beneficiary or agent, as the case may be, on behalf of Tenant.

 

29.                    SURRENDER OF PREMISES.

 

Tenant shall, at least 90 days before the last day of the Term arrange to meet Landlord for a joint inspection of the Premises. In the event of Tenant’s failure to arrange such joint inspection, Landlord’s

 

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inspection at or after Tenant’s vacating the Premises shall be conclusively deemed correct for purpose of determining Tenant’s responsibility for repairs and restoration.

 

At the end of the Term or any renewal thereof or other sooner termination of this Lease, Tenant will peaceably deliver up to Landlord possession of the Premises, together with all improvements or additions upon or belonging to the same, by whomsoever made, in the same condition as received or first installed broom clean and free of all debris, ordinary wear and tear and damage by fire, earthquake, Act of God, or the elements alone excepted. Tenant may, upon termination of this Lease, remove all movable partitions of less than full height from floor to ceiling, counters, and other personal property and trade fixtures of Tenant removable without material damage to such property or the Premises previously installed by Tenant, at Tenant’s sole cost, title to which shall be in Tenant until such termination repairing such damage caused by such removal. Property not so removed shall be deemed abandoned by Tenant and title to the same shall thereupon pass to Landlord under this Lease as by a bill of sale. Upon request by Landlord, Tenant shall remove any or all permanent improvements or additions to the Premises installed at Tenant’s cost and all movable partitions, counters and other personal property of Tenant removable without material damage to such property or the Premises which may be left by Tenant and repair any damage resulting from such removal. Tenant shall indemnify Landlord against any loss or liability resulting from delay by Tenant in so surrendering the Premises, including without limitation any claims made by any succeeding tenant founded on such delay.

 

All obligations of Tenant hereunder not fully performed as of the expiration or earlier termination of the Term of this Lease shall survive the expiration or earlier termination of the Term. Upon the expiration or earlier termination of the Term, Tenant shall pay to Landlord the amount, as estimated by Landlord, necessary: (i) to repair, restore and broom clean the Premises as provided herein, removing Tenant’s personal property if necessary; and (ii) to discharge Tenant’s obligation for unpaid amounts due Landlord. All such amounts shall be used and held by Landlord for payment of such obligations of Tenant, with Tenant being liable for any additional costs upon demand by Landlord, or with any excess to be returned to Tenant after all such obligations have been determined and satisfied.

 

30.                    NOTICES.

 

Any notice or document required or permitted to be delivered hereunder shall be in writing and shall be effective upon delivery, if personally delivered. All notices shall be personally delivered or sent by United States Mail, postage prepaid, Certified or Registered Mail and Receipted the next business day after being deposited with a nationally recognized overnight delivery service, addressed to the parties hereto at the respective addresses set forth on the Reference Page, or at such other address as they have theretofore specified by written notice delivered in accordance herewith.

 

31.                    TAXES PAYABLE BY TENANT.

 

In addition to rent and other charges to be paid by Tenant hereunder, Tenant shall reimburse to Landlord, upon demand, any and all taxes payable by Landlord (other than net income taxes or ad valorem taxes) whether or not now customary or within the contemplation of the parties hereto: (a) upon, allocable to, or measured by or on the gross or net rent payable hereunder, including without limitation

 

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any gross income tax, sales tax or excise tax levied by the State, any political subdivision thereof, or the Federal Government with respect to the receipt of such rent; or (b) upon or with respect to the possession, leasing, operation, management, maintenance, alteration, repair, use or occupancy of the Premises or any portion thereof; including any sales, use or service tax imposed as a result thereof; or (c) upon or measured by Tenant’s gross receipt or payroll or the value of Tenant’s equipment, furniture, fixtures, and other personal property of Tenant or leasehold improvements, alterations, additions, located in the Premises; or (d) upon this transaction or any document to which Tenant is a party creating or transferring an interest or an estate in the Premises.

 

In addition to the foregoing, Tenant agrees to pay, before delinquency, any and all taxes levied or assessed against Tenant and which become payable during the Term upon Tenant’s equipment, furniture, fixtures, and other personal property of Tenant located in the Premises.

 

32.                    DEFINED TERMS AND HEADINGS.

 

The paragraph headings herein are for convenience of reference and shall in no way define, increase, limit, or describe the scope or intent of any provision of this Lease. Any indemnification of, insurance of, or option granted to Landlord shall also include or be exercisable by Landlord’s trustee, beneficiary, agents and employees, as the case may be. In any case, where this Lease is signed by more than one person, the obligations hereunder shall be joint and several. The terms “Tenant” and “Landlord” or any pronoun used in place thereof shall indicate and include the masculine or feminine, the singular or plural number, individuals, marital communities, firms, or corporations, and their and each of heir respective successors, executors, administrators, and permitted assigns, according to the context hereof. Tenant agrees to furnish promptly upon demand a corporate resolution, proof of due authorization by partners, or other appropriate documentation evidencing the due authorization of Tenant to enter into this Lease. The term “rentable area” shall mean the rentable area of the Premises or the Building as calculated by Landlord on the basis of the plans and specifications (which were available for inspection by Tenant at the time the Lease was executed) of the Building and including a proportionate share of any common areas. Tenant hereby consents and agrees that the calculation of rentable area on the Reference Page shall be controlling.

 

33.                    ENFORCEABILITY.

 

If for any reason whatsoever any of the provisions hereof shall be void, unenforceable or ineffective, all of the other provisions shall be and remain in full force and effect.

 

34.                    REAL ESTATE BROKERS.

 

Each of the parties (i) represents and warrants to the other that it has not dealt with any broker or finder in connection with this Lease, except as described on the Reference Page; and (ii) indemnifies and holds the other harmless from any and all losses, liability, costs or expenses (including attorneys’ fees) incurred as a result of any breach of the foregoing warranty. Landlord shall be solely responsible for brokerage fees payable to the brokers listed on the Reference Page.

 

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35.                    TIME AND APPLICABLE LAW.

 

Time is of the essence of this Lease and all of its provisions. This Lease shall in all respects be governed by the laws of the state in which the Building is located.

 

36.                    PARKING.

 

Tenant shall have the right to use in common with other tenants or occupants of the Building, all of the automobile parking spaces at the Building, as shown on Exhibit A-2. Tenant shall not at any time park or permit the parking of Tenant’s vehicles, or the vehicles of others, adjacent to loading areas or so as to interfere in any way with the use of such areas. Tenant shall not park or permit to be parked any inoperative vehicles or equipment on any portion of the parking or loading areas.

 

37.                    SUCCESSORS AND ASSIGNS.

 

Subject to Paragraph 13 hereof the obligations of this Lease shall be binding upon and inure to the benefit of the parties hereto and their respective successors and assigns; provided that Landlord and each successive owner of the Property shall be liable only for obligations accruing during the period of its ownership or interest and the liability of Landlord hereunder shall be limited to Landlord’s stake or other title or interest in the Property. Landlord shall have no personal liability under any of the terms, conditions or covenants of this Lease and Tenant shall look solely to the equity of Landlord in the Property of which the Premises form a part and no other assets for the satisfaction of any claim, remedy or cause of action accruing to Tenant.

 

38.                    ENTIRE AGREEMENT.

 

It is expressly understood and agreed by and between the parties hereto that this lease and the riders attached hereto and forming a part hereof set forth all the promises, agreements, conditions and understandings between Landlord or its agents and Tenant relative to the Premises, and that there are no promises, agreements, conditions or understandings, either oral or written, between them other than are herein set forth. It is further understood and agreed that, except as herein otherwise provided, no subsequent alteration, amendment, change or addition to this lease shall be binding upon Landlord or Tenant unless reduced to writing and signed by them.

 

39.                    HEADINGS AND TERMS.

 

The title and headings and table of contents of this Lease are for convenience of reference only and shall not in any way be utilized to construe or interpret the agreement of the parties as otherwise set forth herein. The term “Landlord” and term “Tenant” as used herein shall mean, where appropriate, all persons acting by or on behalf of the respective parties, except as to any required approvals, consents or amendments, modifications or supplements hereunder when such terms shall only mean the parties originally named on the first page of this Lease as Landlord and Tenant, respectively, and their agents so authorized in writing.

 

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40.                    EXAMINATION NOT OPTION.

 

Submission of this Lease shall not be deemed to be a reservation of the Premises. Landlord shall not be bound hereby until its delivery to Tenant of an executed copy hereof signed by Landlord, already having been signed by Tenant, and until such delivery Landlord reserves the right to exhibit and lease the Premises to other prospective tenants.

 

41.                    RECORDATION.

 

Neither Landlord nor Tenant shall record this Lease or a short form memorandum hereof without the prior written consent of the other party, and the party offering the same for recording shall pay all charges and taxes-incident thereto.

 

42.                    LIMITATION OF LANDLORD’S LIABILITY.

 

The obligations of Landlord herein are intended to be binding only on the property of the entity acting as Landlord and shall not be personally binding, nor shall any resort be had to the private properties of, any of its trustees or board of directors and officers, as the case may be, its investment manager, the general partners thereof or any employees or agents of Landlord, or the investment manager.

 

43.                    REPRESENTATIONS AND WARRANTIES.

 

Landlord represents and warrants to and agrees with Tenant as follows:

 

(a)                       Landlord is equitable owner of the Premises, the Building and the Property.

 

(b)                      Landlord is a limited partnership duly organized and validly existing under the laws of Pennsylvania; Landlord has full power and authority under the laws of Pennsylvania to execute and deliver this lease and to perform its obligations hereunder, the signatory hereto on behalf of Landlord has full power and authority to bind Landlord; and all requisite actions necessary to authorize Landlord to execute and deliver this Lease and to perform its obligations hereunder have been taken. All requisite actions necessary to authorize Landlord to execute and deliver this Lease and to perform, its obligations hereunder have been taken.

 

44.                    GOVERNING LAW.

 

This Lease shall be governed by and construed in accordance with the laws of the Commonwealth of Pennsylvania.

 

45.                    WAIVERS.

 

No delay or forbearance by Landlord in exercising any right, or remedy hereunder or in undertaking or performing any act or matter which is not expressly required to be undertaken by Landlord shall be construed, respectively, to be a waiver of Landlord’s rights or to represent any agreement by Landlord to undertake or perform such act or matter thereafter.

 

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46.                    FORCE MAJEURE.

 

Landlord or Tenant shall be excused for the period of any delay in the performance of any of its obligations hereunder (other than payment of Rent) when prevented from so doing by cause or causes beyond its control which shall include, without limitation, all labor disputes, inability to obtain any material or services, civil commotion or Acts of God.

 

47.                    WAIVER OF TRIAL BY JURY.

 

It is mutually agreed by and between Landlord and Tenant that the respective parties hereto shall and then hereby do waive trial by jury in any action, proceeding or counterclaim brought by either of the parties hereto against the other.

 

48.                    SEVERABILITY.

 

Each covenant and agreement in this Lease shall for all purposes be construed to be separate and or the application thereof shall to any extent be invalid, illegal or otherwise unenforceable, the remainder of this Lease, and the application of such provision other than as invalid, illegal or unenforceable, shall not be effected thereby, and such provisions in this Lease shall be valid and enforceable to the fullest extent permitted by law.

 

IN WITNESS WHEREOF, the parties hereto, have caused this Agreement to be executed the date first mentioned.

 

 

	
LANDLORD:
    	
 
    	
TENANT:
    
	
 
    	
 
    	
 
    
	
TRIQUINT   OPTOELECTORONICS, INC.
    	
 
    	
CYOPTICS, INC.
    
	
 
    	
 
    	
 
    
	
/s/   Stephanie Welty
    	
 
    	
/s/   Ed Coringrato
    
	
By:
    	
Stephanie   Welty
    	
 
    	
By:
    	
Ed   Coringrato
    
	
Title:
    	
VP,   Finance
    	
 
    	
Title:
    	
President   and CEO
    
	
Date:
    	
4/29/05
    	
 
    	
Date:
    	
April 29,   2005
    

 

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ADDENDUM

 

Hazardous Materials

 

Except as otherwise set forth in Paragraph 1(b) of the Lease, Tenant agrees that Tenant, its agents and contractors shall not use, manufacture, store or dispose of any flammable explosives, radioactive materials, hazardous wastes or materials, toxic wastes or materials, or other similar substances (collectively “Hazardous Materials”) on under or about the Premises, provided that Tenant may handle, store, use or dispose of products (i) containing small quantities or Hazardous Materials, which products are of a type customarily found in offices and households (such as aerosol cans containing insecticides, toner for copiers, paints, pain remover, and the like), provided further that Tenant shall handle, store, use and dispose of any, such Hazardous Materials in a safe and lawful manner and shall not allow such Hazardous Materials to contaminate the Premises or the environment; or (ii) necessary to conduct the Permitted Use of the Premises described in Paragraph 1(b).

 

If Landlord, in its sole discretion, believes that the Premises or the environment have become contaminated with Hazardous Materials, in breach of the provisions of this Lease, Landlord, in addition to its other rights under this Lease, may enter upon the Premises and obtain samples from the Premises, including the soil and groundwater under the Premises, for the purposes of analyzing the same to determine whether and to what extend the Premises or the environment have become so contaminated, Tenant shall reimburse Landlord for the reasonable costs of such inspection, sampling and analysis.

 

Without limiting the above, Tenant shall indemnify and hold harmless Landlord from and against any and all claims, losses, liabilities, damages, costs and expenses, including without limitation, reasonable attorneys fees and costs, arising out of or in any way connected with the use, manufacture, storage, or disposal of Hazardous Materials by Tenant, its agents or contractors on, under or about the Premises including, without limitation, the cost of any required or necessary repair, cleanup or detoxification and the preparation of any closure or other required plans in connection herewith. The indemnity obligations of Tenant under this clause shall survive any termination of the Lease.

 

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EXHIBIT “A1”

LEGAL DESCRIPTION

 

 

EXHIBIT “A1”

LEGAL DESCRIPTION

 

ALL THAT CERTAIN tract of land located in Upper Macungie Township, Lehigh County, Pennsylvania known as Lot 3, as shown on and described in accordance with a Minor Subdivision Plan for Agere Systems, Inc., prepared by Barry Isett & Associates, Inc., Tradetown, Pennsylvania, dated October 22, 2001, last revised February, 29, 2002 and recorded at Lehigh County Document ID No. 7025857, Document ID No. 7025858, Document ID No. 7025859, on August 28, 2002; and Document ID No. 7049645 on December 13, 2002, bounded and described as follows to with.

 

BEGINNING at the intersection of the Northerly ultimate right of way line of S.R. 0222 (100 foot right of way and the Easterly property line of lot 1 as shown on aforesaid Minor Subdivision Plan, thence along the lands of said Lot 1 the following seven coursed and distances: (1) North 16 degrees 30 minutes 00 seconds East, 177.27 feet; (2) along a circular curve to the right, having a radius of 530.00 feet and a central angle of 28 degrees 10 minutes 08 seconds (chord bearing and distance of North 30 degrees 35 minutes 04 seconds East, 257.95 feet), the arc length of 260.57 feet; (3) North 44 degrees 40 minutes 08 seconds East, 55.66 feet; (4) along a circular curve to the right, having a radius of 418.06 feet and a central angle of 38 degrees 56 minutes 58 seconds (chord bearing and distance of North 25 degrees 51 minutes 23 seconds West 278.75 feet), the arc length of 284.20 feet; (5) North 06 degrees 22 minutes 55 seconds West 105.56 feet; (6) along a circular curve to the left, having a radius of 275.00 feet and a central angle of 87 degrees 16 minutes 23 seconds (chord bearing and distance of North 50 degrees 01 minute 06 seconds West, 379.55 feet); the arc length of 418.88 feet, (7) North 03 degrees 39 minutes 18 seconds West, 50.00 feet to the Southerly ultimate right of way line of Hans Hill Road the following sixteen courses and distances: (1) North 86 degrees 20 minutes 42 seconds East, 558.25 feet; (2) North 86 degrees 35 minutes 18 seconds East, 572.50 feet; (3) along a circular curve to the right, having a radius of 1,155.00 feet and a central angle of 06 degrees 51 minutes 26 seconds (chord bearing and distance of South 89 degrees 58 minutes 59 seconds East, 138.15 feet), the arc length of 138.23 feet; (4) South 86 degrees 33 minutes 16 seconds East, 348.58 feet; (5) along a circular curve to the left, having a radius of 830.00 feet and a central angle of 03 degrees 29 minutes 59 seconds (chord bearing and distance of South 88 degrees 18 minutes 16 seconds East 50.69 feet); the arc length of 50.70 feet; (6) North 89 degrees 56 minutes 44 seconds East, 206.85 feet; (7) along a circular curve to the right having a radius of 755.00 feet and a central angle of 24 degrees 08 minutes 38 seconds (chord bearing and distance of South 77 degrees 58 minutes 57 seconds East, 315.80 feet); the arc length of 318.15 feet; (8) South 65 degrees 54 minutes 39 seconds East, 682.47 feet; (9) along a circular curve to the left, having a radius of 1,280.00 feet and a central angle of 02 degrees 13 minutes 29 seconds (chord bearing and distance of South 67 degrees 01 minutes 24 seconds East, 49.70 feet), the arc length or 49.70 feet; (10) South 68 degrees 08 minutes 09 seconds East, 431.15 feet; (11) along a circular curve to the right, having a radius of 230.00 feet and a central angle of 34 degrees 33 minutes 46 seconds (chord bearing and distance of South 50 degrees 51 minutes 14 seconds East, 136.65 feet); the arc length of 138.74 feet, (12) along a circular curve to the left, having a radius of 318.34 feet and a central angle of 29 degrees 51 minutes 07 seconds (chord bearing and distance of South 48 degrees 29 minutes 53 seconds East, 163.99 feet), the arc length of 165.86 feet; (13) South 63 degrees 25 minutes 27 seconds East, 406.25 feet; (14) South 62 degrees 09 minutes 53 seconds East, 329.07 feet; (15) along a circular curve to the left, having a radius of 2,130.00 feet and a central angle of 03 degrees 43 minutes 28 seconds (chord bearing and distance of South 64 degrees 01 minute 37 seconds, East, 138.43 feet), the arc length or 138.46 feet; (16) South 65 degrees 53 minutes 21 seconds East, 191.84 feet to the Westerly property line of lands of Ralph C. Derr; thence along said lands of Ralph C. Derr the following five courses and distances; (1) South 27 degrees 44 minutes 28 seconds West, 168.94 feet; (2) south 66 degrees 31 minutes 26 seconds

 

 

EXHIBIT “A1”

LEGAL DESCRIPTION

 

East 70.70 feet; (3) South 24 degrees 57 minutes 00 seconds West, 89.86 feet; (4) South 71 degrees 56 minutes 50 seconds East, 92.88 feet; (5) North 70 degrees 46 minutes 14 seconds East, 173.55 feet to the Westerly property line of Lot 2 as shown on aforesaid Minor Subdivision Plan, thence along said property line of Lot 2, South 15 degrees 29 minutes 13 seconds West, 971.56 feet to the aforesaid Northerly ultimate right of way line of S.R. 0222 (100 foot right of way); thence along said Northerly ultimate right of way line of S.R. 0222, North 73 degrees 30 minutes 47 seconds West, 457.51 feet to the Easterly property line of the lands of Verne A. Seagreaves, thence along said lands of Verne A. Seagreaves the following three courses and distances (1) North 16 degrees 29 minutes 04 seconds East, 150.01 feet; (2) North 73 degrees 29 minutes 16 seconds West, 193.10 feet; (3) South 03 degrees 12 minutes 45 seconds West, 134.01 feet to the aforesaid Northerly ultimate right of way line of S.R. 0222, thence along said right of way North 73 degrees 30 minutes 00 seconds West, 3,717.44 feet to the point of beginning.

 

BEING Tax Parcel No. 545408213261-1.

 

 

 

 

 

Building Location Plan A-3

 

Building Color corresponds with colored floor plan attached.

 

 

 

 

 

 

 

 

 

 

 

EXHIBIT “B”
 TENANT IMPROVEMENTS

 

Tenant accepts the Premises in As-is / where-is condition. Landlord shall have no responsibility to perform any tenant improvements.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

EXHIBIT “D”
 COST ALLOCATION

 

	
 
    	
 
    	
Estimated
    	
 
    	
TriQuint
    	
 
    	
Anthem
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
Total Cost
    	
 
    	
portion
    	
 
    	
portion
    	
 
    	
Comments
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
ANTHEM   COSTS SOLELY
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Facility Manager — Bruce George
    	
 
    	
$
    	
110,000
    	
 
    	
$
    	
0
    	
 
    	
$
    	
110,000
    	
 
    	
B.   George to Anthem, terms to be agreed
    	
 
    
	
Property Insurance (ordinary hazard)
    	
 
    	
$
    	
112,000
    	
 
    	
$
    	
0
    	
 
    	
$
    	
112,000
    	
 
    	
 
    	
 
    
	
Property Taxes
    	
 
    	
$
    	
706,908
    	
 
    	
$
    	
0
    	
 
    	
$
    	
706,908
    	
 
    	
 
    	
 
    
	
Landscaping service/snow removal
    	
 
    	
$
    	
50,000
    	
 
    	
$
    	
0
    	
 
    	
$
    	
50,000
    	
 
    	
 
    	
 
    
	
Diesel fire pump service
    	
 
    	
$
    	
3,000
    	
 
    	
$
    	
0
    	
 
    	
$
    	
3,000
    	
 
    	
Cost   to maintain sprinkler pump
    	
 
    
	
Pest control
    	
 
    	
$
    	
2,500
    	
 
    	
$
    	
0
    	
 
    	
$
    	
2,500
    	
 
    	
 
    	
 
    
	
Elevator service
    	
 
    	
$
    	
12,000
    	
 
    	
$
    	
0
    	
 
    	
$
    	
12,000
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
$
    	
996,408
    	
 
    	
$
    	
0
    	
 
    	
$
    	
996,408
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
TRIQUINT/ANTHEM   SHARED COSTS
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Berkshire fire detection system
    	
 
    	
$
    	
25,000
    	
 
    	
$
    	
16,675
    	
 
    	
$
    	
8,325
    	
 
    	
 
    	
 
    
	
Fire extinguisher and hose rack service
    	
 
    	
$
    	
7,000
    	
 
    	
$
    	
4,632
    	
 
    	
$
    	
2,331
    	
 
    	
 
    	
 
    
	
Natural Gas 
    	
 
    	
$
    	
600,000
    	
 
    	
$
    	
500,000
    	
 
    	
$
    	
100,000
    	
 
    	
 
    	
 
    
	
Public water supply-LCA
    	
 
    	
$
    	
80,000
    	
 
    	
$
    	
80,000
    	
 
    	
$
    	
0
    	
 
    	
 
    	
 
    
	
Sewer service — UMT
    	
 
    	
$
    	
100,000
    	
 
    	
$
    	
100,000
    	
 
    	
$
    	
0
    	
 
    	
 
    	
 
    
	
Electric-estimated (5)
    	
 
    	
$
    	
1,200,000
    	
 
    	
$
    	
1,150,000
    	
 
    	
$
    	
50,000
    	
 
    	
 
    	
 
    
	
Boiler inspection — dept. of labor
    	
 
    	
$
    	
1,000
    	
 
    	
$
    	
1,000
    	
 
    	
$
    	
0
    	
 
    	
 
    	
 
    
	
Chiller service
    	
 
    	
$
    	
35,000
    	
 
    	
$
    	
35,000
    	
 
    	
$
    	
0
    	
 
    	
 
    	
 
    
	
Boiler service
    	
 
    	
$
    	
40,000
    	
 
    	
$
    	
40,000
    	
 
    	
$
    	
0
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
$
    	
2,088,000
    	
 
    	
$
    	
1,927,337
    	
 
    	
$
    	
160,658
    	
 
    	
 
    	
 
    
	
Subtotal
    	
 
    	
$
    	
3,084,408
    	
 
    	
$
    	
1,927,337
    	
 
    	
$
    	
1,157,064
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
TRIQUINT   OPERATING COSTS — estimated
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Salaries/Contracts
    	
 
    	
$
    	
300,000
    	
 
    	
$
    	
300,000
    	
 
    	
$
    	
0
    	
 
    	
 
    	
 
    
	
Salaries-staff
    	
 
    	
$
    	
200,000
    	
 
    	
$
    	
200,000
    	
 
    	
$
    	
0
    	
 
    	
 
    	
 
    
	
Copiers
    	
 
    	
$
    	
15,000
    	
 
    	
$
    	
15,000
    	
 
    	
$
    	
0
    	
 
    	
 
    	
 
    
	
Janitorial services
    	
 
    	
$
    	
75,000
    	
 
    	
$
    	
75,000
    	
 
    	
$
    	
0
    	
 
    	
 
    	
 
    
	
Bulk Gases
    	
 
    	
$
    	
425,000
    	
 
    	
$
    	
425,000
    	
 
    	
$
    	
0
    	
 
    	
 
    	
 
    
	
Fuel oil
    	
 
    	
$
    	
0
    	
 
    	
$
    	
0
    	
 
    	
$
    	
0
    	
 
    	
 
    	
 
    
	
Recycling
    	
 
    	
$
    	
3,000
    	
 
    	
$
    	
3,000
    	
 
    	
$
    	
0
    	
 
    	
 
    	
 
    
	
Emergency generator service
    	
 
    	
$
    	
3,000
    	
 
    	
$
    	
3,000
    	
 
    	
$
    	
0
    	
 
    	
 
    	
 
    
	
UPS service- Liebert
    	
 
    	
$
    	
8,000
    	
 
    	
$
    	
8,000
    	
 
    	
$
    	
0
    	
 
    	
 
    	
 
    
	
Water treatment
    	
 
    	
$
    	
15,000
    	
 
    	
$
    	
15,000
    	
 
    	
$
    	
0
    	
 
    	
 
    	
 
    
	
GE - emergency switchgear service
    	
 
    	
$
    	
10,000
    	
 
    	
$
    	
10,000
    	
 
    	
$
    	
0
    	
 
    	
 
    	
 
    
	
Combustible gas monitor service
    	
 
    	
$
    	
13,000
    	
 
    	
$
    	
13,000
    	
 
    	
$
    	
0
    	
 
    	
 
    	
 
    
	
Wastewater sampling service
    	
 
    	
$
    	
3,000
    	
 
    	
$
    	
3,000
    	
 
    	
$
    	
0
    	
 
    	
 
    	
 
    
	
Chemical disposal service
    	
 
    	
$
    	
10,000
    	
 
    	
$
    	
10,000
    	
 
    	
$
    	
0
    	
 
    	
 
    	
 
    
	
DI water system
    	
 
    	
$
    	
8,000
    	
 
    	
$
    	
8,000
    	
 
    	
$
    	
0
    	
 
    	
 
    	
 
    
	
Motor generator UPS service
    	
 
    	
$
    	
7,000
    	
 
    	
$
    	
7,000
    	
 
    	
$
    	
0
    	
 
    	
 
    	
 
    
	
Scales air compressor part/service
    	
 
    	
$
    	
15,000
    	
 
    	
$
    	
15,000
    	
 
    	
$
    	
0
    	
 
    	
 
    	
 
    
	
Siemens BAS/security system
    	
 
    	
$
    	
35,000
    	
 
    	
$
    	
35,000
    	
 
    	
$
    	
0
    	
 
    	
 
    	
 
    
	
Vibration analysis on fans and pumps
    	
 
    	
$
    	
7,000
    	
 
    	
$
    	
7,000
    	
 
    	
$
    	
0
    	
 
    	
 
    	
 
    
	
Trash and paper recycling
    	
 
    	
$
    	
10,000
    	
 
    	
$
    	
10,000
    	
 
    	
$
    	
0
    	
 
    	
 
    	
 
    
	
Water softener salt
    	
 
    	
$
    	
10,000
    	
 
    	
$
    	
10,000
    	
 
    	
$
    	
0
    	
 
    	
 
    	
 
    
	
MDA monitor maint.
    	
 
    	
$
    	
8,000
    	
 
    	
$
    	
8,000
    	
 
    	
$
    	
0
    	
 
    	
 
    	
 
    
	
Misc. parts end repairs
    	
 
    	
$
    	
50,000
    	
 
    	
$
    	
50,000
    	
 
    	
$
    	
0
    	
 
    	
 
    	
 
    
	
Security systems
    	
 
    	
$
    	
5,000
    	
 
    	
$
    	
5,000
    	
 
    	
$
    	
0
    	
 
    	
 
    	
 
    
	
EH&S
    	
 
    	
$
    	
25,000
    	
 
    	
$
    	
25,000
    	
 
    	
$
    	
0
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
$
    	
1,260,000
    	
 
    	
$
    	
1,260,000
    	
 
    	
$
    	
0
    	
 
    	
 
    	
 
    

 

 

EXHIBIT “E”
 FORM-OF GUARANTY

 

GUARANTY OF LEASE

 

THIS GUARANTY OF LEASE is attached to and is hereby made a part of that certain Lease Agreement dated                                      2005 (the “Lease”), between CyOptics, Inc. (“Tenant”) and TriQuint Optoelectronics, Inc., whose interest as lessor is being assigned to                                   (“Landlord”) by an assignment dated of even date herewith (the “Assignment”).

 

FOR VALUE RECEIVED and in consideration of and as an inducement to Landlord entering into the Assignment, the undersigned guarantor, TriQuint Semiconductor, Inc. (“Guarantor”), unconditionally and continuously guarantees to Landlord, its successors and assigns, the full and timely payment by Tenant of all Annual Base Rent due and owing under the Lease from and after the date hereof dining the Initial Term, as those capitalized terms are defined in the Lease, or until the Lease is assigned or the Premises are sublet by Tenant.

 

This Guaranty and the obligations of Guarantor hereunder shall not be terminated or impaired by reason of the granting by Landlord of any indulgences to Tenant or the assertion by Landlord against Tenant of any of Landlord’s rights or remedies under the Lease, or by the relief of Tenant from any of Tenant’s obligations under the Lease by operation of law or otherwise, whether or not Guarantor has received notice of same. Guarantor waives all suretyship defenses, notice of any breach by Tenant, and right to a jury trial

 

Landlord’s delay or failure to insist upon the strict performance or observance of any obligation of Tenant under the Lease or to exercise any right or remedy available under the Lease or at law or in equity, shall not be construed to be a waiver of Landlord’s prerogative to insist upon such strict performance or observance or to exercise any such right or remedy. Receipt by Landlord of rent or other payment with knowledge of a breach of any term or condition of the Lease shall not be construed to be a waiver of such breach.

 

The liability of Guarantor hereunder shall not be affected or limited by: the release or discharge of Tenant in any creditors’ receivership, bankruptcy or other proceedings; the impairment, limitation or modification of the liability of the Tenant or the estate of the Tenant in bankruptcy, or of any remedy for the enforcement of Tenant’s said liability under the Lease, resulting from the operation of any present or future provision of the federal bankruptcy laws or other statutes or from the decision in any court the rejection or disaffirmance of the Lease in any such proceedings; any disability or other defense of Tenant; or the cessation from any cause whatsoever, of the liability of Tenant.

 

 

ASSIGNMENT AND ASSUMPTION OF LEASE

 

This ASSIGNMENT AND ASSUMPTION OF LEASE (the “Assignment”) is made as of the          day of June, 2005, between TriQuint Optoelectronics, Inc., a Delaware corporation (“Assignor”), and Hamilton TEK Partners, L.P., a Pennsylvania limited partnership (“Assignee”).

 

For and in consideration of the sum of Ten Dollars ($10.00) and other valuable consideration to it in hand paid by Assignee to Assignor, the conveyance by Assignor to Assignee of all that certain real property commonly known as 9999 Hamilton Boulevard, Breinigsville, PA 18031 (the “Property”), and the mutual covenants herein contained, the receipt and sufficiency of the foregoing consideration being hereby acknowledged by the parties hereto, Assignor hereby assigns, transfers, sets over and conveys to Assignee all of Assignor’s right, title and interest in, to, and under that certain Lease Agreement for a portion of the Property by and between Assignor and CyOptics, Inc., dated as of April 29, 2005 (the “Lease”).

 

Effective only from and after the date hereof and by acceptance hereof, Assignee assumes and agrees to be bound by and agrees to perform all of Assignor’s obligations solely as the same are set forth in writing in the Lease.

 

Assignee shall indemnify and hold Assignor harmless from and against any actions, suits, proceedings or claims, and all costs and expenses (including, without limitation, reasonable attorneys’ fees incurred in connection therewith), based upon or arising out of any breach or alleged breach of the Lease or out of any other statement of facts connected with the Lease occurring or alleged to have occurred after the date hereof. Assignor shall indemnify and hold Assignee harmless from and against any actions, suits, proceedings or claims, and all costs and expenses (including, without limitation, reasonable attorneys’ fees incurred in connection therewith), based upon or arising out of any breach or alleged breach of the Lease or out of any other statement of facts connected with the Lease occurring or alleged to have occurred up to and including the date hereof

 

This Assignment shall be binding upon and inure to the benefit of Assignor and Assignee and their respective heirs, executors, administrators, successors and assigns.

 

This Assignment may be executed in two or more counterparts, each of which shall be deemed an original, but all of which together shall constitute one and the same instrument.

 

 

EN WITNESS WHEREOF, Assignor and Assignee have each executed this Assignment as of the date first written above.

 

	
ASSIGNOR:
    	
 
    	
ASSIGNEE:
    
	
 
    	
 
    	
 
    
	
TriQuint   Optoelectronics, Inc., a Delaware
    	
 
    	
Hamilton   TEK Partners, L.P., a
    
	
corporation
    	
 
    	
Pennsylvania   limited partnership
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
By:
    	
/s/   Stephanie Welty
    	
 
    	
By:
    	
/s/   [ILLEGIBLE]
    
	
 
    	
Stephanie   Welty
    	
 
    	
Name:
    	
[ILLEGIBLE]
    
	
 
    	
Vice   President of Finance
    	
 
    	
Title:
    	
[ILLEGIBLE]
    

 

 

 

SUBORDINATION, NON-DISTURBANCE
 AND ATTORNMENT AGREEMENT

 

 

THIS SUBORDINATION, NO-DISTURBANCE AND ATTORNMENT AGREEMENT (this “Agreement”), dated July 13, 2005, is entered into by and among Optics, Inc., a Delaware corporation with offices  at 7360 Windsor Drive, Allentown, PA 18106 (the “ILLEGIBLE”), and Hamilton TEK Partners, L.P., a Pennsylvania limited partnership with offices at 120 ILLEGIBLE Germantown Pike, Plymouth Meeting, PA 19462 (the “Landlord”), and SOVEREIGN BANK, ILLEGIBLE offices at 1500 Market Street, Concourse Level, Philadelphia, Pennsylvania 19102 (the “Lender).

 

W I T N E S S E T H:

 

WHEREAS, Landlord is the holder of a fee interest in the real property commonly ILLEGIBLE as TEK Park, Breinigsville, Pennsylvania (the “Property”), a portion of which consists of 769 square feet of rentable floor area in a building at 9999 Hamilton Boulevard, Breningsville, Lehigh ILLEGIBLE, Pennsylvania (the “Premises”) is leased to Tenant pursuant to a Lease, dated as of April 29, ILLEGIBLE between the Tenant and Landlord’s predecessor in interest TriQuint Optoelectronics, Inc. (the “ILLEGIBLE”), leasing the Property to Tenant;

 

WHEREAS, Lender has agreed to make a certain mortgage loan (the “Loan”) to ILLEGIBLE, which will be evidenced by Landlord’s Promissory Note in such amount (the “Note”) and ILLEGIBLE by, among other things, a certain Construction Loan Agreement, Mortgage, Security Agreement, ILLEGIBLE of Rents and Leases, Collateral Security Agreement, Collateral Assignment Security ILLEGIBLE and all other related security and loan documents of even date (the “Mortgage”) encumbering Property, which Mortgage is to be recorded contemporaneously herewith;

 

WHEREAS, Lender, Landlord and Tenant desire to confirm their understanding with ILLEGIBLE to the Lease and the Loan and the rights of Tenant and Lender thereunder.

 

NOW THEREFORE, in consideration of the mutual covenants and agreements ILLEGIBLE herein and for other good and valuable consideration, the receipt and sufficiency of which are ILLEGIBLE acknowledged, the parties hereto agree as follows:

 

1.  Subordination. Notwithstanding anything to the contrary set forth in the Lease, ILLEGIBLE subordinates and subjects the Lease and the leasehold estate created thereby and all of Tenant’s ILLEGIBLE thereunder to the Mortgage and the liens thereof and all advances and rights of Lender thereunder ILLEGIBLE to any and all renewals, modifications, consolidations, replacements and extensions thereof, as fully ILLEGIBLE as if the Mortgage and all of its renewals, modifications, consolidations, replacements and extensions ILLEGIBLE been executed, delivered and recorded prior to execution of the Lease. Without affecting the ILLEGIBLE subordination, Lender may, from time to time: (a) extend by renewal or otherwise and in ILLEGIBLE or in part, the terms of payment or performance of any obligation secured by the Mortgage; release, surrender, exchange or modify any obligation secured by the Mortgage, or any security for ILLEGIBLE obligation; or (c) settle or compromise any claim with respect to any obligation secured by the mortgage or against any person who has given security for any such obligation.

 

 

2.  Non-Disturbance. If, at any time, Lender or any of Lender’s successors or assigns who shall acquire the interest of Landlord under the Lease through a foreclosure of the Mortgage, the exercise of the power of sale under the Mortgage, a deed-in-Iieu of foreclosure or otherwise (such party being a “New Owner”) shall succeed to the interests of Landlord under the Lease, then so long as (i) the Lease is then in full force and effect, and (ii) no default shall have occurred and be continuing (collectively, a “Default”) by Tenant under the Lease, the Lease shall continue in full force and effect as a direct lease between the New Owner, as successor Landlord and Tenant, upon and subject to all of the terms, covenants and conditions of the Lease for the balance of the term thereof, Tenant hereby agrees to attorn to and accept any such New Owner as landlord under the Lease and to be bound by and perform all of the obligations imposed by the Lease, and Lender, or any such New Owner of the Property, agrees that it will not disturb the possession of Tenant and will be bound by all of the obligations imposed on the Landlord by the Lease; provided, however, that any New Owner shall not be:

 

(a) liable for any act or omission of a prior landlord (including Landlord) arising prior to the date upon which the New Owner shall succeed to the interests of Landlord under the Lease; or

 

(b) subject to any claims, offsets or defenses which Tenant might have against any prior landlord (including Landlord) arising prior to the date upon which the New Owner shall succeed to the interests of Landlord under the Lease; or

 

(c) bound by any rent or additional rent which Tenant might have paid in advance to any prior landlord (including Landlord) for a period in excess of one (1) month or by any security deposit, cleaning deposit or other prepaid charge which Tenant might have paid in advance to any prior landlord (including Landlord), except to the extent that such New Owner actually comes into exclusive possession of the same; or

 

(d) bound by any assignment (except as permitted by the Lease) surrender, release, waiver, cancellation, amendment or modification of the Lease made without the written consent of Lender; or

 

(e) responsible for the making of any improvement to the Property or repairs in or to the Property in the case of damage or destruction of the Property or any part thereof due to fire or other casualty or by reason of condemnation unless such New Owner shall he obligated under the Lease to make such repairs; or

 

(f) obligated to make any payment to Tenant except for the timely return of any security deposit actually received by such New Owner.

 

Nothing contained herein shall prevent Lender from naming or joining Tenant in any foreclosure or other action or proceeding initiated by Lender pursuant to the Mortgage to the extent necessary under applicable law in order for Lender to avail itself of and complete the foreclosure or other remedy, but such naming or joinder shall not be in derogation of the rights of Tenant as set forth in this Agreement.

 

3. Cure by Lender of Landlord Defaults. Tenant agrees that from and after the date hereof, in the event of any act or omission by Landlord that would give Tenant the right, either immediately or after the lapse of time, to terminate or cancel the Lease or to claim a partial or total eviction, or to abate or reduce rent. Tenant will not exercise any such right until Tenant has given written notice of such act or omission to Lender and Lender has failed within thirty (30) days after both receipt of such notice by Lender and the time when Lender shall have become entitled under the Mortgage to

 

 

remedy the same, to commence to cure such act or omission within such period and thereafter diligently prosecute such cure to completion. Notwithstanding the foregoing, if Lender cannot commence such cure without possession of the Property, Tenant will not exercise any such right if Lender commences judicial or non judicial proceedings to obtain possession within such period and thereafter diligently prosecutes such efforts and cure to completion. Further, Tenant shall not as to Lender, require cure of any such act or omission which is not susceptible to cure by Lender.

 

4.  Payments to Lender and Exculpation of Tenant. Tenant is hereby notified that the Lease and the rent and all other sums due thereunder have been assigned to Lender as security for the Loan. In the event that Lender or any future party to whom Lender may assign the Mortgage notifies Tenant of a default under the Mortgage and directs that Tenant pay its rent and all other sums due under the Lease to Lender or to such assignee, Tenant shall honor such direction without inquiry and pay its rent and all other sums due under the Lease in accordance with such notice. Landlord agrees that Tenant shall have the right to rely on any such notice from Lender or any such assignee without incurring any obligation or liability to Landlord and Tenant is hereby instructed to disregard any notice to the contrary received from Landlord or any third party.

 

5.  Estoppel. Tenant states, declares, represents and warrants as follows:

 

(a) The description of the Lease in the recitals hereof is true, correct and complete, including all amendments, supplements and modifications thereto. Concurrently herewith, Tenant is delivering to Landlord a true, correct and complete copy of the Lease, which is not intended to be recorded. Tenant has properly executed the Lease and the Lease is in full force and effect.

 

(b) As of the date hereof, the minimum monthly or base rent being paid by Tenant for the Premises pursuant to the terms of the Lease is $100,000.00 per month. If applicable, percentage rent due under the Lease has been paid through June 30, 2005 and the amount of percentage rent for the last period paid was $N/A (if none, so state). If applicable, common area maintenance, taxes, insurance and other charges due under the Lease have been paid through June 30. 2005 (if none, so state).

 

(c) Tenant has accepted possession of the Premises under the Lease, and all items of an executory nature relating thereto to be performed by Landlord have been completed.

 

(d) Tenant acknowledges that the initial term of the Lease commenced on April 29, 2005, and shall expire on March 31, 2007, unless sooner terminated in accordance with the terms of the Lease. Tenant has no option to renew or extend the lease term, except as follows (if none, so state): One (1) additional five (5) year period or five (5) additional two (2) year periods.

 

(e) Tenant has not defaulted in the performance of the terms, covenants and conditions of the Lease required to be performed on the part of Tenant.

 

(f) Landlord has not defaulted in the performance of the terms, covenants and conditions of the Lease required to be performed on the part of Landlord.

 

(g) Tenant has not assigned, sublet, transferred, hypothecated or otherwise disposed of its interest in the Lease and/or the Premises, or any part thereof.

 

 

(h) There have been no promises or representations made to Tenant by Landlord concerning the Lease or the Premises not contained in the Lease.

 

(i) Neither the Lease nor any obligations of Tenant thereunder have been guaranteed by any person or entity, except as follows (if none, so state): TriQuint Semiconductor, Inc. has guaranteed the annual base rent for the initial two (2) year period of the lease.

 

(j) No hazardous substances are being (or have been or will be during the term of the Lease) generated, used, handled, stored or disposed of by Tenant on the Premises or on the Property in violation of any applicable laws, rules or regulations or the terms of the Lease.

 

(k) No rents are accrued and unpaid under the Lease.

 

(1) No security or deposits as security have been made under the Lease, except for the sum of $N/A (if none, so state), in cash, which has been deposited by Tenant with Landlord pursuant to the terms of the Lease.

 

(m) Tenant has no defense as to its obligations under the Lease and asserts no setoff, claim or counterclaim against Landlord.

 

(n) Tenant has not received notice of any assignment, hypothecation, mortgage or pledge of Landlord’s interest in the Lease or the rents or other amounts payable thereunder, except as follows (if none, so state): None.

 

(o) Tenant has no right or option of any nature whatsoever, whether pursuant to the Lease or otherwise, to purchase the Property, or any portion thereof or any interest therein. To the extent that Tenant has had or hereafter acquires any such right or option, such right or option is hereby acknowledged to be subject and subordinate to the Mortgage and is hereby waived and released with respect to, and shall not be asserted against, any New Owner.

 

(p) Tenant has not paid rent or additional rent beyond the current month and agrees not to pay rent or additional rent more than one month in advance at any time.

 

(q) Landlord has not agreed to grant Tenant any free rent or rent abatement or to make any contribution to tenant improvements. Landlord has not agreed to reimburse Tenant for or to pay Tenant’s rent obligation under any other lease.

 

(r) Tenant does not have any purchase option or right of first refusal with respect to the Building. Tenant does not have any right or option for additional space in the Building.

 

(s) Since the date of the Lease, there has been no material adverse change in the financial condition of Tenant, and there are no action’s, whether voluntary or otherwise, pending against Tenant under the bankruptcy, reorganization, arrangement, moratorium or similar laws of the United States, any state thereof or any other jurisdiction.

 

Whenever requested by Lender, Tenant shall, without charge, execute and deliver to Lender a written confirmation that the representations contained in this paragraph 5 remain correct and complete (or specifying any matter to the contrary).

 

 

6.                                       If each of the following conditions exist at the time of a proposed assignment or sublease of all or part of Tenant=s rights under the Lease, such assignment or sublease shall be deemed a AQualified Assignment@ under this Agreement. An assignment or sublease shall be a AQualified Assignment@ if, but only if, at the time the assignment or sublease becomes effective, all of the following conditions exist:

 

(i)                                     Tenant and Guarantor shall not be in material breach of its obligations under the Lease or this Agreement.

 

(ii)                                  The assignment or sublease shall not be for a term extending beyond the vested term of the Lease (taking into account any extensions provided for in the Lease).

 

(iii)                               Prior to the assignment or sublease becoming effective, Tenant shall have delivered to Lender (A) a true and complete copy of the assignment or sublease and all related terms and agreements, and (B) a recordable written document signed and acknowledged by the assignee or sublessee, (I) acknowledging that the assignee or sublessee and its, his or her successors, personal representatives, heirs and assigns shall be bound by the terms of this Agreement, and (II) verifying that the copy of the assignment or sublease attached thereto is a true and complete copy of the assignment or sublease and any related terms or agreements.

 

Upon a Qualified Assignment to a Qualified Tenant, the Qualified Tenant=s rights under the Lease and right to possession thereunder shall not he disturbed by the exercise of any right or remedy provided for in the Mortgage provided that Qualified Tenant continues at all times thereafter to comply with the terms and conditions of this Agreement and the Lease.

 

7.                                       Tenant agrees, at the election of Lender or any other holder of the Mortgage, or anyone claiming by, through or under them, to attorn to such holder or anyone claiming by, through or under such holder.

 

8.                                       If Lender or any other holder of the Mortgage elects at any time to have Landlord=s or Tenant=s interest in the Lease superior to the interest of any mortgage, lien or security interest securing Landlord=s obligations to Lender and given express written notice to Tenant to that effect, then the Lease shall be deemed to be superior thereto to the extent provided in such notice, whether this Lease was executed before or after the Mortgage or any other agreement or instrument favoring Lender or before or after any advance made on the security thereof.

 

9.                                       Limitation of Liability. Lender shall not, either by virtue of the Mortgage or this Agreement, be or become a mortgagee-in-possession or be or become subject to any liability or obligation under the Lease or otherwise until Lender shall have acquired the interests of Landlord in the Premises, by foreclosure or otherwise as set forth in the Loan Documents, and then such liability or obligation of Lender under the Lease shall extend only to those liabilities or obligations accruing subsequent to the date that Lender has acquired the interests of Landlord in the Premises as modified by the terms of this Agreement. In addition, upon such acquisition. Lender shall have no obligation, nor incur any liability, beyond Lender’s then equity interest, if any, in the Premises. Furthermore, in the event of the assignment or transfer of the interests of Lender under this Agreement, all obligations and liabilities of Lender under this Agreement shall terminate and, thereupon, all such obligations and liabilities shall be the sole responsibility of the party to whom Lender’s interests are assigned or transferred.

 

 

10.                                 Notice. Any notice, demand, statement, request, consent or other communication made hereunder shall be in writing and delivered (i) personally, (ii) mailed by certified or registered mail, postage prepaid, return receipt requested or (iii) by depositing the same with Federal Express or another reputable private courier service, postage prepaid, for next business day delivery, to the parties at their addresses first set forth above and shall be deemed given when delivered personally, or four (4) business days after being placed in the United States mail, if sent by certified or registered mail, or one (1) business day after deposit with such private courier service. Rejection or other refusal to accept or the inability to deliver because of changed address of which no notice was given as herein required shall be deemed to be receipt of the notice, demand or request sent. By giving to the other parties hereto at least fifteen (15) days’ prior written notice thereof in accordance with the provisions hereof, the parties hereto shall have the right from time to time to change their respective addresses to any other address within the United States of America. Tenant agrees to send a copy of any notice or statement under the Lease to Lender at the same time such notice or statement is sent to Landlord.

 

11.                                 Miscellaneous.

 

(a)                                  In the event of any conflict or inconsistency between the provisions of this Agreement and the Lease, the provisions of this Agreement shall govern; provided, however, that the foregoing shall in no way diminish Landlord’s obligations or liability to Tenant under the Lease. Lender’s enforcement of any provisions of this Agreement or the Mortgage shall not entitle Tenant to claim any interference with the contractual relations between Landlord or Tenant or give rise to any claim or defense against Lender with respect to the enforcement of such provisions.

 

(b)                                 Tenant agrees that this Agreement satisfies any condition or requirement in the Lease relating to the granting of a non-disturbance agreement.

 

(c)                                  Tenant will not subordinate the Lease to the lien of any mortgage or deed of trust other than the Mortgage for so long as the Mortgage shall remain a lien on the Property.

 

(d)                                 This Agreement shall inure to the benefit of the parties hereto and their respective successors and assigns; provided, however, that the interest of Tenant under this Agreement may not be assigned or transferred without the prior written consent of Lender as set forth supra.

 

(e)                                  The captions appearing under the paragraph number designations of this Agreement are for convenience only and are not a part of this Agreement and do not in any way limit or amplify the terms and provisions of this Agreement.

 

(f)                                    If any portion or portions of this Agreement shall be held invalid or inoperative, then all of the remaining portions shall remain in full force and effect, and, so far as is reasonable and possible, effect shall be given to the intent manifested by the portion or portions held to be invalid or inoperative.

 

(g)                                 This Agreement shall be governed by and construed in accordance with the laws of the State or Commonwealth in which the Property is located without regard to the conflicts of law provisions, except to the extent that the applicability of any of such laws is now or hereafter preempted by Federal law, in which case such Federal law shall so govern and be controlling.

 

(h)                                 This Agreement may be executed in any number of separate counterparts, each of which shall be deemed an original, but all of which, collectively and separately, shall constitute one and the same agreement.

 

 

(i)                                     This Agreement cannot be altered, modified, amended, waived, extended, changed, discharged or terminated orally or by any act on the part of Tenant, Landlord or Lender but only by an agreement in writing signed by the party against whom enforcement of any alteration, modification, amendment, waiver, extension, change, discharge or termination is sought.

 

12.  Insurance Proceeds: The proceeds (the “Insurance Proceeds”) of all policies of insurance required by the Mortgage excepting liability insurance covering the Property maintained by Landlordand all awards or other compensation (the “Condemnation Awards”) made for any taking of any part of the Property shall be applied in the manner specified in the Priority Mortgage subject to the rights of the Lender; and the Subordinate Party shall assign and release unto the Lender all right, title, interest or claim, if any, of, in and to the Insurance Proceeds and Condemnation Awards for application in the manner aforesaid. In the event that after such application of the Insurance Proceeds and Condemnation Awards in the manner provided in the Priority Mortgage, any balance remains, then such excess shall be paid to the Subordinate Party (to the extent provided in the Subordinate Mortgage) to be applied on account of the indebtedness secured by the Subordinate Mortgage, subject to the rights, if any, of the Borrower.

 

 

IN WITNESS WHEREOF, the parties have executed this Agreement, with the intent to be legally bound, as of the dates set forth adjacent to their signatures below to be effective as of the date of the Mortgage.

 

	
Date:  July 12, 2005
    	
 
    	
TENANT:
    	
Cyoptics, Inc.
    	
, a
    
	
 
    	
 
    	
Delware Corporation
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
By:
    	
/s/ Ettore J. Coringrato
    
	
 
    	
 
    	
Name:
    	
Ettore J. Coringrato
    
	
 
    	
 
    	
Title:
    	
President
    
	
HAMILTON TEK PARTNERS,   L.P.
    	
 
    	
 
    
	
Date:  July 13, 2005
    	
 
    	
LANDLORD
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
BY:  WOOD STREET REALTY DEVELOPMENT CO
    	
 
    	
By:
    	
/s/ [ILLEGIBLE]
    
	
BY:  ANTHEM PARTNERS, LLC
    	
 
    	
Name:
    	
[ILLEGIBLE]
    
	
 
    	
 
    	
 
    
	
Date:              ,   2005
    	
 
    	
SOVERIGN BANK
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
By:
    	
/s/ Richard T. Markiewicz
    
	
 
    	
 
    	
Name:
    	
Richard T. Markiewicz
    
	
 
    	
 
    	
Title:
    	
SVP
    
								

 

 

Ludrof, John

 

	
From:
    	
Riley,   Matt
    
	
Sent:
    	
Monday,   January 22, 2007 2:51 PM
    
	
To:
    	
Ludrof,   John
    
	
Subject:
    	
FW:   CyOptics Tek Park lease renewnal
    

 

fyi

 

From: Larry Stuardi [mailto:Istuardi@mragroup.net]

Sent: Thursday, September 28, 2006 9:20 PM

To: Riley, Matt

Cc: Coringrato, Ed; Dormer, Jim; Mike Wojewodka; bhenderson@flynnco.com

Subject: RE: CyOptics Tek Park lease renewnal

 

Matt, may this e-mail serve as confirmation of receipt of notice to renew. We will continue to work towards defining responsibilities and costs associated with both Landlord’s and Cyoptic’s obligations as defined (or not) under the current lease. I have presented a draft lease form which, once terms are finalized, we would hope to migrate to effective April 1, 2007, recognizing that the current lease does not truly reflect a realistic structure for Cyoptic’s tenancy at TEK Park.

 

We value the relationship we have been able to develop over the past 18 months, and appreciate the co-operation in helping to evolve TEK Park into a premier technology campus. All indications are that we are on our way to making TEK the success we know it can be.

 

Lawrence J. Stuardi

MRA Group

120 W. Germantown Pike

Suite 200

Plymouth Meeting, PA 18942

www.mragroup.net

610-238-0500

 

From: Riley, Matt [mailto:mriley@cyoptics.com]

Sent: Thu 9/28/2006 6:20 PM

To: Larry Stuardi

Cc: Coringrato, Ed; Dormer, Jim

Subject: CyOptics Tek Park lease renewnal

 

Larry-confirming our conversation today, below is CyOptics formal notification of intent to exercise renewal option two per the current lease agreement. matt

 

Larry,

 

Per the current lease agreement between MRA and CyOptics, Inc dated April 29, 2005 for space in the Tek Park Campus located at 9999 Hamilton Blvd, Breinigsville, PA 18031, CyOptics wishes to exercise renewal option two as defined in Section 6(c) of the agreement and printed below.

 

1

 

(c)                                  Renewal Option Two: Five (5), two (2) year renewal options, each exercisable on six (6) months advance written notice, on the same terms set forth above except that Rent, Utilities, and Operating Expenses payable during such renewal term(s) shall be as follows:

 

Option Term One:                                                         Annual Base Rent

$10.00/sq. ft. NNN, plus Tenant’s Proportionate Share of Property Operating Costs

 

Option Term Two:

$10.50/sq. ft. NNN, plus Tenant’s Proportionate Share of Property Operating Costs

 

Option Term Three:

$11.00/sq. ft. NNN, plus Tenant’s Proportionate Share of Property Operating Costs

 

Option Term Four:

$11.50/sq. ft. NNN, plus Tenant’s Proportionate Share of Property Operating Costs

 

Option Term Five:

$12.00/sq. ft. NNN, plus Tenant’s Proportionate Share of Property Operating Costs

 

The foregoing notwithstanding, Tenant shall have the right to convert the third (3rd), fourth (4th), and fifth (5th) two (2) year renewal options set forth above to one (1) year options, upon providing Landlord twelve (12) months notice prior to exercising each such one (1) year option.

 

Upon Tenant’s conversion of either of the third (3rd), fourth (4th), or fifth (5th) options to a one (1) year option, each successive option term shall thereafter automatically be converted to a one (1) year option.

 

Please confirm receipt and acceptance of this formal notification by directing your written response to Matt Riley, CyOptics CFO, located on the Tel Park Campus. Please feel free to direct any questions to Matt on 484-397-2806.

 

2

 

	

    	
 
    	
120 West Germantown Pike, Suite 200

Plymouth Meeting, Pennsylvania 19462

P. 610.238.0500 · F.   610.238.0140

www.mragroup.net
    

 

 

December 8, 2008

 

Certified Mail

 

Matt Riley, CFO

CyOptics, Inc.

Two Tek Park

9999 Hamilton Blvd

Breinigsville, PA 18031

 

Re: Exercise of Renwal Option

 

Dear Mr. Riley:

 

By your September 24, 2008 e-mail to Larry Stuardi (copy attached), you provided notice that CyOptics was exercising the second of five (5), two (2) year option terms (Option Term Two pursuant to Section 6(c)) of the CyOptics lease date April 29, 2005).

 

This correspondence confirms the Landlord’s receipt and acceptance of CyOptics, Inc.’s notice to exercise the aforementioned option, but please note that the renewal term commences April 1, 2009 and expires March 31, 2011.

 

Sincerely,

 

MRA Realty, Inc.,

As Agent for Hamilton Tek Partners, LP

 

	
/s/   Allan Freedman
    	
 
    
	
Allan   Freedman
    	
 
    
	
Lease   Administration
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
Enclosure
    	
 
    

 

 

From: Riley, Matt [mriley@cyoptics.com]

Sent: Wednesday, September 24, 2008 5:08 PM

To: Larry Stuardi

Cc: Coringrato, Ed

Subject: CyOptics Lease Advance Notice

 

Larry,

 

Per the current lease agreement between MRA and CyOptics, Inc dated April 29, 2005 for space in the Tek Park Campus located at 9999 Hamilton Blvd, Breinigsville, PA 18031, this serves as advance notice that CyOptics wishes to exercise renewal option term two as defined in Section 6(c) of the agreement and printed below effective with two year term beginning April 30, 2009.

 

(c)                                  Renewal Option Two: Five (5), two (2) year renewal options, each exercisable on six (6) months advance written notice, on the same terms set forth above except that Rent, Utilities, and Operating Expenses payable during such renewal term(s) shall be as follows:

 

Option Term One:                                                 Annual Base Rent

$10.00/sq. ft. NNN, plus Tenant’s Proportionate Share of Property Operating Costs

 

Option Term Two (effective April 30, 2009)

$10.50/sq. ft. NNN, plus Tenant’s Proportionate Share of Property Operating Costs

 

Option Term Three:

$11.00/sq. ft. NNN, plus Tenant’s Proportionate Share of Property Operating Costs 

 

Option Term Four:

$11.50/sq. ft. NNN, plus Tenant’s Proportionate Share of Property Operating Costs 

 

Option Term Five:

$12.00/sq. ft. NNN, plus Tenant’s Proportionate Share of Property Operating Costs

 

The foregoing notwithstanding, Tenant shall have the right to convert the third (3rd), fourth (4th), and fifth (5th) two (2) year renewal options set forth above to one (1) year options, upon providing Landlord twelve (12) months notice prior to exercising each such one (1) year option. Upon Tenant’s conversion of either of the third (3rd), fourth (4th), or fifth (5th) options to a one (1) year option, each

 

 

successive option term shall thereafter automatically be converted to a one (1) year option.

 

Please confirm receipt and acceptance of this formal advance notification by directing your written response to Matt Riley, CyOptics CFO, located on the Tek Park Campus. Please feel free to direct any questions to me on 484-397-2806. Best wishes. Matt

 

 

 

March 26, 2009

 

	
Mr. Ed   Coringrato

Cyoptics, Inc.

Two   Tek Park

9999   Hamilton Boulevard

Breinigsville,   PA 18031
    	
 
    	
HAND DELIVERED
    

 

RE:                              Lease Agreement made by and between Hamilton TEK Partners, L.P, (“Landlord”) and Cyoptics, Inc. (“Tenant”) for Premises known as Two TEK Park, located at 9999 Hamilton Boulevard, Breinigsville PA 18031

 

Dear Mr. Coringrato:

 

Pursuant to the terms of the above referenced Lease and your request to exercise the second of five, two-year option terms, we are notifying you of the terms and conditions for the renewal term commencing April 1, 2009 and expiring on March 31, 2011, as follows:

 

Annual Base Rent will be $10.50 per square foot for 103,000 square feet of leased premises, which equals $1,081,500.00 per year, payable in equal monthly installments of $90,125.00.

 

Hamilton Tek Partners has completed the campus building operating budget for Tek Park for the Calendar Year 2009. Tek Park’s Operating Expenses for 2009 are projected to be $4.93 per square foot. Your monthly CAM expense will continue to be $50,000.00 per month.

 

With regard to your 2009 utility expenses, we have increased your monthly expense to $200,000 per month from April 1, 2009 through December 31, 2009 in an effort to reduce the amount of Cyoptic’s shortfall at the end of the year. The difference of $50,000 for January, February and March, 2009, has already been included in the $200,000.00 per month utility expenses.

 

MRA Realty, Inc. ·  MRA Development Services, Inc. · MRA Realty Advisors
 120 West Germantown Pike ·   Suite 200 ·   Plymouth Meeting, PA 19462 ·   PH 610-238-0500 ·   FAX 610-238-0140 
 info@mragroup.net ·   www.mragroup.net

 

 

To reconcile the 2008 expenses, we have calculated Cyoptic’s share as follows:

 

	
 
    	
 
    	
Actuals 2008
    	
 
    	
Paid
    	
 
    	
Difference
    	
 
    
	
Utilities
    	
 
    	
$
    	
2,255,491.55
    	
 
    	
$
    	
1,800,000.00
    	
 
    	
$
    	
455,491.55
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
CAM
    	
 
    	
$
    	
508,418.17
    	
*
    	
$
    	
600,000.00
    	
 
    	
$
    	
(91,581.83
    	
)
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
$
    	
363,909.72
    	
 
    

 

	
* @ $4.94 actuals
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Radio Components
    	
 
    	
 
    	
 
    	
 
    	
 
    	
$
    	
(850.00
    	
)
    
	
Cost for Services (CUP)
    	
 
    	
 
    	
 
    	
 
    	
 
    	
$
    	
(30,000.00
    	
)
    
	
UPS batteries
    	
 
    	
 
    	
 
    	
 
    	
 
    	
$
    	
(5,000.00
    	
)
    
	
Total Due Hamilton Tek   Partners
    	
 
    	
 
    	
 
    	
 
    	
 
    	
$
    	
328,059.72
    	
 
    

 

Effective April 1, 2008, please remit the one time payment of $328,059.72 or in the alternative, you may divide that amount into nine equal monthly payments of $36,451.08.

 

In summary, the following amounts are due to Hamilton Tek Partners:

 

Monthly Summary Effective April 1, 2009

 

	
2008 Utility Adjustment
    	
 
    	
$
    	
36,451.08
    	
 
    
	
2009 Utilities
    	
 
    	
$
    	
200,000.00
    	
 
    
	
CAM 2009
    	
 
    	
$
    	
50,000.00
    	
 
    
	
TOTAL DUE MONTHLY
    	
 
    	
$
    	
286,451.08
    	
 
    

 

If you have questions please do not hesitate to contact me at (484) 397-4021.

 

Respectfully,

MRA Realty, Inc. as Agent on behalf of 
 Hamilton TEK Partners, LP

 

	
/s/ Hank Merrill
    	
 
    
	
Hank Merrill
    	
 
    
	
Director of Operations
    	
 
    

 

 

	

    	
 
    	
 

3 Village Road, Suite 200

Horsham, Pennsylvania 19044

P. 215.449.2442 · F.   215.449.2443

www.mragroup.net
    

 

October 19, 2010

 

CERTIFIED MAIL # 7010 1670 0002 4976 7036

 

Mr. Matt Riley

CFO, CyOptics, Inc.

9999 Hamilton Boulevard 

Breinigsville, PA 18031

 

RE:         Lease Renewal Option Three

 

Dear Mr. Riley:

 

We are in receipt of your letter dated September 27, 2010 in which you provided notice that CyOptics, Inc. is exercising its third of five (5), two (2) year renewal options pursuant to Section 6(c), Option Term Three (3), of the CyOptics lease dated April 29, 2005.

 

This correspondence confirms the Landlord’s receipt and acceptance of CyOptics’ notice to exercise the aforementioned option. Please note that the renewal term commences April 1, 2011 and expires March 31, 2013. According to the terms of the Lease, the Annual Base Rent will be increased to $11.00 per square foot, which equals $1,133,000.00 per year, payable in monthly installments of $94,416.67.

 

As always, please feel free to contact me if you have any questions or comments.

 

Respectfully,

MRA Realty, Inc. as Agent on behalf of

Hamilton TEK Partners, LP

 

	
/s/   Mike Wojewodka
    	
 
    
	
Mike   Wojewodka
    	
 
    
	
Vice   President
    	
 
    

 

 

Copy to:

Ed Coringrato, CyOptics, Inc.

Larry Stuardi, Hamilton TEK Partners, LP

 

 

AMENDMENT TO LEASE

 

This AMENDMENT TO LEASE (“Amendment”) is made and entered into this  12th day of November, 2010, but effective as of November, 1, 2010 (the “Effective Date”) by and between HAMILTON TEK PARTNERS, L.P., a Pennsylvania limited partnership and successor to TriQuint Optoelectronics, Inc., hereinafter referred to as “Landlord” and CYOPTICS, INC., a Delaware corporation hereinafter referred to as “Tenant”.

 

WHEREAS. Landlord’s predecessor and Tenant entered a certain Lease Agreement dated April 29, 2005, as amended by those certain letter agreements dated July 3, 2007 and March 26, 2009 (the “Lease”) pursuant to which Tenant has leased certain premises as more fully described in the Lease; and

 

WHEREAS. Landlord and Tenant desire to amend the terms of the Lease.

 

NOW, THEREFORE, in consideration of the promises, covenants and conditions herein contained, and intending to be legally bound hereby, Landlord and Tenant agree that the Lease shall be and the same is hereby amended as follows.

 

1.                                            Incorporation of Recitals.  The recitals set forth above, the Lease referred to therein and the exhibits attached hereto are hereby incorporated herein by reference as if set forth in full in the body of this Amendment. Capitalized terms not otherwise defined herein shall have the meanings given to them in the Lease.

 

2.                                            Premises.  As of the Effective Date hereof, Landlord and Tenant hereby expressly agree and acknowledge that the Premises consist of 103,000 rentable square feet as more fully shown on Exhibit “A” attached hereto and made a part hereof. Notwithstanding any other provision herein of the Lease to the contrary, the rentable square feet of the Premises shall not be re-measured or re-determined without the express mutual agreement in writing of Landlord and Tenant.

 

3.                                            Term/Renewals.  As of the Effective Date hereof, the Lease is hereby extended for an additional seven (7) year term and the new Termination Date of the Lease shall be 11:59pm Eastern Standard Time on October 31, 2017. The Renewal Terms of the Lease shall be two (2) additional five (5) year periods commencing on the calendar day immediately following thc new Termination Date. Section 6 of the Lease is hereby amended by removing any references to the renewal options in Sections 6(b) and 6(c) and replacing the same with the Renewal Terms specified herein above. The provisions of Section 6(d), (e) and (f) are reaffirmed and ratified in full. Notwithstanding any other provision herein or the Lease to the contrary, Tenant’s Proportionate Share shall not be re-measured or re-determined without the express mutual agreement in writing of Landlord and Tenant. The parties further agree and acknowledge that Section 5 of the Lease is deleted and deemed to be terminated prior to the Effective Date hereof.

 

4.                                            Rent.  During the new Initial Term of the Lease, and the Renewal Terms (If exercised by Tenant), the Annual Base Rent for the Premises shall be in accordance with the following schedule:

 

Lease Year 1 and 2 (11/1/10-10/31/12) $10.50 per rentable square foot

Lease Year 3 and 4 (11/1/12-10/31/14) $11.00 per rentable square foot

Lease Year 5 and 6 (11/1/14-10/31/16) $11.50 per rentable square foot

Lease Year 7 (11/1/16-10/31/17) $12.00 per rentable square foot

 

The Annual Base Rent shall increase from year to year in any Renewal Term at a rate equal to two and one-half percent (2.5%).

 

5.                                       New Lease Reference Terms. For all purposes under the Lease, as amended hereby, Landlord’s address as of the Effective Date shall be:

 

3 Village Road

Suite 200

Horsham PA, 19044.

Attention: Managing Partner

 

1

 

6.                                       Binding Effect. Except as expressly amended hereby, the Lease remains in full force and effect in accordance with its terms.

 

IN WITNESS WHEREOF, Landlord and Tenant have duly executed this agreement on the date first above written.

 

	
 
    	
 
    	
LANDLORD:
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
HAMILTON TEK PARTNERS, L.P., by its
   Managing General Partner, Anthem Partners, LLC
    
	
WITNESS.
    	
 
    	
 
    
	
/S/ [ILLEGIBLE]
    	
 
    	
By:
    	
/S/ Lawrence J. Stuardi
    
	
 
    	
 
    	
Name:
    	
Lawrence J. Stuardi
    
	
 
    	
 
    	
Title:
    	
Managing Member
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
TENANT:
    
	
 
    	
 
    	
 
    	
 
    
	
ATTEST:
    	
 
    	
CYOPTICS, INC.
    
	
/S/ [ILLEGIBLE]
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
By:
    	
/S/ Ed J. Coringrato
    
	
 
    	
 
    	
Name:
    	
Ed J. Coringrato
    
	
 
    	
 
    	
Title:
    	
CEO
    

 

2

 

Exhibit “A”

 

 

3

 

Exhibit “A”

 

 

4

 

Exhibit “A”

 

5

 

Exhibit “A”

 

 

6

 

Exhibit “A”

 

 

7

 

Exhibit “A”

 

 

8

 

Exhibit “A”

 

 

9

 

FIRST ADDENDUM TO AGREEMENT OF LEASE

 

ADDENDUM dated March 30, 2011, attached to and forming pact of the Agreement of Lease dated April 29, 2005 (“Lease”) between HAMILTON TEK PARTNERS, L.P., a Pennsylvania Limited Partnership (“Landlord”), and CYOPTICS, INC., a Delaware corporation (“Tenant”).

 

WHEREAS, Landlord’s predecessor and Tenant entered into a certain Lease Agreement dated April 29, 2005, as amended by those certain letter agreements dated July 3, 2007 and March 26, 2009, and was further amended by that certain Amendment to Lease dated November 12, 2010, collectively (the “Lease”), pursuant to which Tenant has leased certain premises as more fully described in the Lease; and

 

WHEREAS, Tenant desires to lease a portion of 3 TEK Building, a 57,806 rentable square foot building as identified on Exhibit “A” attached hereto (“3 TEK”), with said portion consisting of 14,379 rentable square feet, as shown on the floor plan attached hereto as Exhibit “B” and made a part hereto (“3 TEK Expansion Space”); and

 

WHEREAS, except for those terms specifically identified herein in this FIRST ADDENDUM TO AGREEMENT OF LEASE which shall pertain exclusively to the 3 TEK Expansion Space, Landlord desires to lease to Tenant, and Tenant desires to lease from Landlord, the 3 TEK Expansion Space under all terms and conditions of the Lease.

 

NOW, THEREFORE, Landlord and Tenant, intending to be legally bound hereby, agree as follows:

 

1.               Term: The Term associated with the 3 TEK Expansion Space shall be forty (40) months, commencing April 1, 2011 and expiring on July 31, 2014 (“Expansion Space Term”).

 

2.               Renewal Term: Tenant shall have one (1) renewal option of three (3) years, per the terms and conditions of the Lease Agreement, as amended, except that the Annual Base Rent shall be adjusted as noted herein below (“3 TEK Expansion Space Renewal Term”).

 

3.               Improvement Allowance: Landlord shall provide Tenant an Improvement Allowance of Fifty Thousand ($50,000.00) Dollars (“Improvement Allowance”) to be applied towards the cost of design and improvements of the 3 TEK Expansion Space. Tenant shall be solely responsible for any costs associated with the design or construction which exceed the Improvement Allowance. The 3 TEK Expansion Space will be delivered in its “As-Is” condition as of the date hereof. Landlord shall be deemed to have permitted all such improvements pursuant to Section 8 of the Lease.

 

4.               Annual Minimum Rent: The Annual Base Rent for the 3 TEK Expansion Space to be paid by Tenant shall be calculated in accordance with the following:

 

1

 

	
 
    	
 
    	
3 TEK
    	
 
    	
3 TEK
    	
 
    	
3 TEK
    	
 
    	
3 TEK
    	
 
    
	
3 TEK
    	
 
    	
EXPANSION
    	
 
    	
EXPANSION
    	
 
    	
EXPANSION
    	
 
    	
EXPANSION
    	
 
    
	
EXPANSION
    	
 
    	
SPACE
    	
 
    	
SPACE
    	
 
    	
SPACE
    	
 
    	
SPACE
    	
 
    
	
SPACE
    	
 
    	
RENTABLE
    	
 
    	
BASE RENT
    	
 
    	
ANNUAL
    	
 
    	
MONTHLY
    	
 
    
	
TERM
    	
 
    	
SF
    	
 
    	
PER SF
    	
 
    	
BASE RENT
    	
 
    	
BASE RENT
    	
 
    
	
04/01/11– 7/31/11
    	
 
    	
ANNUAL BASE RENT IS ABATED*
    	
 
    
	
08/01/11 – 07/31/12
    	
 
    	
7,190
    	
 
    	
$
    	
15.00
    	
 
    	
$
    	
107,850.00
    	
 
    	
$
    	
8,987.50
    	
 
    
	
08/01/12 – 07/31/13
    	
 
    	
7,190
    	
 
    	
$
    	
15.50
    	
 
    	
$
    	
111,445.00
    	
 
    	
$
    	
9,287.08
    	
 
    
	
08/01/13   – 07/31/14
    	
 
    	
14,379
    	
 
    	
$
    	
16.00
    	
 
    	
$
    	
230,064.00
    	
 
    	
$
    	
19,172.00
    	
 
    

 

The Annual Base Rent shall increase from year to year in the 3TEK Expansion Space Renewal Term at a rate equal to two and one-half percent (2.5%).

 

5.               Operating Expense: An annual amount equal to Tenant’s Proportionate Share of 3 TEK, which is 24.87% percent (determined by dividing the rentable square feet of the 3 TEK Expansion Space as identified above by the rentable square feet of 3 TEK as identified above) multiplied by the annual Building Operating Expense as further defined in the Lease; except that, during the period of April 1, 2011 through March 31, 2012, Tenant shall be obligated to pay an amount equal to Tenant’s Proportionate Share of 3 TEK, which shall be 12.44% (which is determined by dividing one-half (1/2) of the rentable square feet of the 3 TEK Expansion Space as identified above by the rentable square feet of 3 TEK as identified above) multiplied by the annual Building Operating Expense, as further defined in the Lease. Landlord and Tenant agree and acknowledge that Tenant’s Proportionate Share and the rentable square feet of the Premises and 3TEK Expansion Space shall not be re-determined without the mutual written agreement of both Landlord and Tenant.

 

6.               In the event of any inconsistencies between the terms of this Addendum and the Lease, this Addendum shall control.

 

IN WITNESS WHEREOF, each party hereto has caused these presents to be executed the day and year first above written.

 

 

	
AS   TO LANDLORD:
    	
 
    	
AS   TO TENANT:
    
	
HAMILTON TEK PARTNERS, L.P.
    	
 
    	
CYOPTICS, INC.
    
	
By its managing general partner,
    	
 
    	
 
    
	
ANTHEM PARTNERS, LLC.
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
BY:
    	
/s/ Lawrence J. Stuardi
    	
 
    	
BY:
    	
/s/   Ed. J Coringrato, CEO
    
	
Lawrence J. Stuardi, its managing member
    	
 
    	
 
    	
Ed.   J Coringrato, CEO
    
					

 

2

 

Exhibit “A” 
 3 TEK

 

 

3

 

Exhibit “B” 
 3 TEK Expansion Space

 

 

4Exhibit 10.13

 

TABLE OF CONTENTS
 OF LEASE BETWEEN 47.07 ASSOCIATES L.P., AS LANDLORD,
 AND KEY OPTICS, INC., AS TENANT, FOR PREMISES LOCATED IN 600
 CORPORATE COURT, MIDDLESEX BUSINESS CENTER,
 SOUTH PLAINFIELD, NEW JERSEY

 

	
ARTICLE   1.
    	
DEMISED   PREMISES AND TERM
    	
1
    
	
ARTICLE   2.
    	
USE   AND OPERATION
    	
2
    
	
ARTICLE   3.
    	
RENT
    	
3
    
	
ARTICLE   4.
    	
SUBORDINATION
    	
3
    
	
ARTICLE   5.
    	
“AS   IS”; LANDLORD’S WORK
    	
4
    
	
ARTICLE   6.
    	
ALTERATIONS   AND REPAIRS
    	
6
    
	
ARTICLE   7.
    	
INDEMNITY   AND INSURANCE
    	
10
    
	
ARTICLE   8.
    	
FIRE   DAMAGE
    	
12
    
	
ARTICLE   9.
    	
WAIVERS   OF SUBROGATION
    	
13
    
	
ARTICLE   10.
    	
CONDEMNATION
    	
14
    
	
ARTICLE   11.
    	
ASSIGNMENT   AND SUBLETTING
    	
14
    
	
ARTICLE   12.
    	
COMMON   AREA MAINTENANCE
    	
17
    
	
ARTICLE   13.
    	
UTILITIES
    	
19
    
	
ARTICLE   14.
    	
TAXES
    	
20
    
	
ARTICLE   15.
    	
REMEDIES   OF LANDLORD
    	
21
    
	
ARTICLE   16.
    	
WAIVER   OF TRIAL BY JURY
    	
24
    
	
ARTICLE   17.
    	
ACCESS   TO PREMISES
    	
24
    
	
ARTICLE   18.
    	
NO   WAIVER
    	
24
    
	
ARTICLE   19.
    	
REQUIREMENTS   OF LAW; INSURANCE REQUIREMENTS
    	
25
    
	
ARTICLE   20.
    	
SIGNS
    	
26
    
	
ARTICLE   21.
    	
TENANT’S   ADDITIONAL COVENANTS
    	
26
    
	
ARTICLE   22.
    	
EASEMENTS   FOR UTILITIES
    	
27
    
	
ARTICLE   23.
    	
CONSENTS   AND APPROVALS
    	
27
    
	
THERE IS NO ARTICLE 24 TO THIS LEASE
    	
28
    
	
ARTICLE   25.
    	
END   OF TERM HOLDOVER
    	
28
    
	
ARTICLE   26.
    	
AUTHORITY   TO EXECUTE
    	
29
    
	
ARTICLE   27.
    	
NOTICES
    	
29
    
	
ARTICLE   28.
    	
BROKER
    	
29
    
	
ARTICLE   29.
    	
MEMORANDUM   OF LEASE
    	
29
    
	
ARTICLE   30.
    	
AIR   AND WATER POLLUTION
    	
30
    
	
ARTICLE   31.
    	
METHOD   OF CALCULATION
    	
33
    
	
THERE IS NO ARTICLE 32 TO THIS LEASE
    	
33
    
	
THERE IS NO ARTICLE 33 TO THIS LEASE
    	
33
    
	
ARTICLE   34.
    	
RELATIONSHIP   OF PARTIES
    	
34
    
	
ARTICLE   35.
    	
CAPTIONS
    	
34
    
	
ARTICLE   36.
    	
DEFINITIONS
    	
34
    
	
ARTICLE   37.
    	
ENTIRE   AGREEMENT
    	
34
    
	
ARTICLE   38.
    	
SUCCESSORS   IN INTEREST
    	
34
    
	
ARTICLE   39.
    	
SECURITY
    	
35
    
	
ARTICLE   40.
    	
EXTENSION   OPTION
    	
36
    

 

	
 
    	
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i

 

THIS LEASE, made as of the 26 day of May, 2001, by and between 47.07 ASSOCIATES L.P., a Delaware limited partnership, having a mailing address c/o National Realty & Development Corp., 3 Manhattanville Road, Purchase, New York 10577 (hereinafter referred to as “Landlord”), and KEY OPTICS, INC., a Delaware corporation, having an office at c/o Paul, Hastings, Janofsky & Walker LLC, 399 Park Avenue, New York, New York 10022 (hereinafter referred to as “Tenant”).

 

WITNESSETH:

 

WHEREAS, the Landlord is constructing or has constructed a multi-use building (hereinafter referred to as “Building”) for the purposes of office use and processing operations for distribution in conjunction with the business being conducted in the office portions of the Building, commonly known as 600 Corporate Court located within the area designated as Lot No. 47.07 (hereinafter referred to as “Lot No. 47.07”) on the attached plot plan (hereinafter referred to as “Plot Plan”) which is annexed hereto as Exhibit “A” and made a part hereof; and

 

WHEREAS, Landlord has constructed or may construct additional buildings on Lot No. 47.07; and

 

WHEREAS, Tenant is desirous of leasing from Landlord and Landlord is desirous of leasing to Tenant certain premises in the MIDDLESEX BUSINESS CENTER (hereafter referred to as “Center”) hereinafter described, upon and subject to the provisions, agreements, covenants and conditions set forth herein;

 

NOW, THEREFORE, it is mutually agreed as follows:

 

ARTICLE 1. DEMISED PREMISES AND TERM

 

Section 1.01.(a) In consideration of the rents and additional rents hereinafter reserved and all of the provisions, agreements, covenants and conditions hereinafter contained, Landlord hereby leases and demises to Tenant, and Tenant hereby hires, leases and takes from Landlord approximately 21,104 square feet of floor space (“Floor Space”) in the Building and loading dock facilities (“Loading Dock”), more particularly indicated and described by cross-hatching on the Plot Plan (the Floor Space and Loading Dock being hereinafter collectively referred to as the “Demised Premises”) located on Lot No. 47.07 in the Center located in the BOROUGH OF SOUTH PLAINFIELD, COUNTY OF MIDDLESEX and STATE OF NEW JERSEY, together with all improvements to be constructed thereon by the Landlord for the use of the Tenant, and all easements, tenements and appurtenances thereto.

 

Section 1.01.(b) The parties acknowledge that the Landlord intends to erect or has erected other buildings on Lot No. 47.07 (which may be different in design and construction from the Building) which buildings may be constructed at the sole option of Landlord. Landlord shall have sole control and discretion in connection with the scope, design and aesthetics of any such additional construction.

 

Section 1.01.(c) The Demised Premises are demised and let subject to (i) the existing state of the title thereof; (ii) any state of facts which an accurate survey or physical inspection thereof might disclose; (iii) all zoning regulations, restrictions, rules and ordinances now in effect or hereafter adopted by any governmental authority having jurisdiction; and (iv) any utility, sewer or drainage easements or agreements and the installations made pursuant thereto now existing or hereafter granted or installed; all without representation or warranty by Landlord, except as expressly set forth herein.

 

Section 1.02. As long as Tenant occupies the Demised Premises, Tenant, together with its

 

	
 
    	
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1

 

employees, customers, invitees and business guests, shall have the right to use, in common with Landlord, its successors, assigns, tenants, subtenants, designees, concessionaires, licensees and any of their customers, invitees, and business guests, all of the Common Areas (as such term is defined in Section 12.01 hereof) at any time and from time to time existing within Lot No. 47.07, except for areas reserved for the exclusive use of other tenants, occupants, or designees and except for periods of time during which the Common Areas are being repaired, altered or reconstructed, provided that if any such repairs, alterations or reconstruction shall prohibit reasonable access to the Demised Premises, Landlord shall provide a reasonable substitute means of access to the Demised Premises for so long as such repairs, alterations or reconstruction prohibits use of all then existing means of access to the Demised Premises. Neither Landlord nor Tenant nor anyone holding under or through either of them shall make any charge for the use of the Common Areas to the other or to the employees, customers, invitees or business guests of Landlord or Tenant or of anyone else hereinbefore granted the right to use the Common Areas, except as provided in Article 12 of this Lease. Landlord agrees that so long as the office space to non-office space ratio within the buildings located on Lot 47.07 shall remain as it is as of the date hereof, Landlord shall maintain on Lot 47.07 a parking ratio of at least 4 spaces per 1,000 square feet of office space within the buildings located on Lot 47.07.

 

Section 1.03. The term (“Term”) of this Lease shall be approximately FIVE (5) years from and after the commencement date (“Commencement Date”), which date shall be: (a) the date upon which the Demised Premises are first occupied by Tenant for the conduct of Tenant’s trade and business, or (b) five (5) business days after Tenant has been given written notice from Landlord or Landlord’s agent indicating that Landlord’s Work (as hereinafter defined) is substantially complete, except for those items, the completion of which will not unreasonably interfere with Tenant’s use and occupancy of the Demised Premises as provided herein, whichever date shall first occur, and shall expire on the date (“Expiration Date”) which is the FIFTH (5th) anniversary of the last day of the calendar month in which said Commencement Date shall occur, unless sooner terminated pursuant to the terms hereof. The term “substantially complete” as used herein shall mean (a) the Demised Premises (including without limitation, entranceways, electrical, mechanical and HVAC systems) are in compliance with all applicable laws (including without limitation, the Americans with Disabilities Act of 1990) and all the building systems are operational to the extent necessary to provide service to the Demised Premises, and (b) there exists unobstructed access to the Demised Premises (excluding any non-compliance, non-operation or obstruction caused by Tenant or any of its agents, contractors, servants or employees).

 

Section 1.04. The parties shall, within ten (10) days following request of the other, execute a written document, in recordable form, expressing the Commencement Date and Expiration Date of the Term hereof, as such have been determined in accordance with the provisions of this Lease.

 

Section 1.05. The term “Lease Year” is defined to mean twelve (12) consecutive calendar months; the first Lease Year to commence on the first day of the succeeding calendar month following the Commencement Date and each succeeding Lease Year to commence on the anniversary date of the commencement of the first Lease Year. The portion of the Term prior to the first Lease Year shall be deemed a “Partial Lease Year” and any obligations of Tenant for such Partial Lease Year shall be prorated on a per diem basis.

 

ARTICLE 2. USE AND OPERATION

 

Section 2.01. Subject to the other provisions of this Lease, Tenant shall occupy and use the Demised Premises solely for office purposes and processing operations for distribution in conjunction with the business being conducted in the office portion of the Demised Premises, and for no other use. Landlord acknowledges that, subject to applicable law, the use of the Demised Premises for office purposes and processing operations may include the research, development and manufacture of fiber optic components. Tenant hereby covenants and agrees that it, its successors and assigns, or anyone holding by, through or under them, shall not use, nor permit the use of the Demised Premises for any other use or purpose except as permitted by this Section 2.01.

 

	
 
    	
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2

 

ARTICLE 3. RENT

 

Section 3.01. The annual minimum rental from the Commencement Date and thereafter during the Term shall be the sum of TWO HUNDRED ELEVEN THOUSAND NINE HUNDRED TWO and 00/100 ($211,902.00) DOLLARS, which Tenant agrees to pay to Landlord in lawful money of the United States in equal monthly installments of SEVENTEEN THOUSAND SIX HUNDRED FIFTY EIGHT and 50/100 ($17,658.50) DOLLARS each, in advance, on the first day of each calendar month during the Term hereof at the office of Landlord or such other place or to such other person or party as Landlord may designate, without prior demand therefor and without any setoff or deduction whatsoever, except as herein provided. Annual minimum rent and additional rent shall be prorated for a fraction of a month, if any, based on the number of days within such fractional month. Unless and until otherwise designated by Landlord in writing all annual minimum rent and additional rent payable under this Lease shall be paid to National Realty & Development Corp., at 3 Manhattanville Road, Purchase, New York 10577.

 

Section 3.02. All taxes, charges, costs and expenses which Tenant assumes or agrees to pay under any provision of this Lease, together with any and all other sums and legal fees which may become due, by reason of any default of Tenant or failure on Tenant’s part to comply with the provisions, covenants and conditions of this Lease on Tenant’s part to be performed, and each or any of them, shall be collectible and recoverable as additional rent, and, in the event of nonpayment thereof, Landlord shall have all the rights and remedies herein provided as in the case of nonpayment of annual minimum rent.

 

ARTICLE 4. SUBORDINATION

 

Section 4.01. This Lease and all rights of Tenant hereunder are, and shall be, subject and subordinate to any mortgages, deeds of trust (including blanket mortgages or deeds of trust covering the Demised Premises and/or the Center and/or other properties) or any other security interest which has been or which hereinafter may affect the Demised Premises, and to any ground or underlying leases of all or part of the Center, and to any renewals, modifications, consolidations, replacements and extensions thereof (hereinafter collectively referred to as “Landlord’s Financing”). Tenant acknowledges that the interest of Landlord under this Lease may be assigned by Landlord as collateral security to any of the foregoing pities holding interests to which this Lease is subject and subordinate. In the event of foreclosure of any such interest, or termination of any such ground or underlying lease, or in the event of an exercise of the power of sale under any mortgage or other security interest made by Landlord covering the premises of which the Demised Premises forms a part, Tenant shall recognize the rights of any such party under and pursuant to the provisions of such collateral assignment and/or attorn to and recognize any purchaser at a foreclosure sale of any mortgage or deed of trust or any such purchaser at a sale exercised in connection with the mortgagee’s or trustee’s remedy of power of sale pursuant to any mortgage or deed of trust affecting the Demised Premises and/or Center or any transferee who acquires the Demised Premises and/or Center by deed in lieu of foreclosure, and the successors and/or assigns of such transferee or purchaser.

 

Section 4.02. The provisions of Section 4.01 shall be self-operative, but Tenant covenants and agrees that it shall, within ten (10) days following request, at any time or times, execute, acknowledge and deliver to Landlord any instruments in order to subordinate this Lease and Tenant’s rights hereunder, as aforesaid, said instruments to be in the form reasonably required by any mortgagee, ground lessor or other secured party.

 

Section 4.03. There is no Section 4.03 to this Lease.

 

Section 4.04. Tenant shall, at any time and from time to time (but no more than thrice in any

 

	
 
    	
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3

 

calendar year), upon not less than ten (10) business days prior notice, execute, acknowledge and deliver to Landlord a statement in writing certifying that this Lease is unmodified and in full force and effect (or, if there have been modifications, that the same is in full force and effect, as modified, and stating the modifications) and the dates to which the rent and other charges have been paid in advance, if any, and stating whether or not, to the best of Tenant’s knowledge, Landlord is in default in the performance of any provision, covenant or condition contained in this Lease, and if so, specifying each such default, and containing any other statements or certifications reasonably required by a mortgagee, and/or ground lessor and/or other secured party, it being intended that any statement or certification delivered pursuant to this Section may be relied upon by any party to whom it may be delivered by Landlord.

 

Section 4.05. The ground and underlying leases and mortgages referred to in this Article 4 to which this Lease is subject and subordinate are hereinafter sometimes called “superior leases” and “superior mortgages”, respectively, and the lessor of a superior lease, or its successor in interest at the time, is hereinafter sometimes called the “lessor” of such superior lease. No pre-payment of more than one month’s rent shall be valid or binding upon the holder of a superior mortgage or the lessor of a superior lease unless expressly approved in writing by such holder or lessor or by any of its predecessors in interest.

 

Section 4.06. Tenant agrees not to look to the mortgagee, as mortgagee, mortgagee in possession, or successor in title to the Demised Premises and/or the Center, for accountability for any security deposit required by Landlord hereunder, unless said security deposit has actually been received by said mortgagee.

 

Section 4.07. Notwithstanding the provisions of this Article 4, this Lease and the rights of Tenant hereunder shall only be subject and subordinate to any superior leases or superior mortgages first entered into after the date hereof if Landlord, at no cost to Tenant, obtains for the benefit of Tenant a non-disturbance and attornment agreement from the holder of such superior mortgage, or the lessor under any such superior lease, in form and substance reasonably acceptable to Tenant and providing, among other things, that so long as Tenant is not in default under this Lease beyond any applicable notice and cure periods, then the holder or lessor, as the case may be, will not terminate this Lease or take any action to recover possession of the Demised Premises, notwithstanding any foreclosure of such superior mortgage or the termination of such superior lease (each a “Non- Disturbance Agreement”). Landlord shall use reasonable efforts to obtain a Non-Disturbance Agreement from the holder of the superior mortgage currently encumbering the Demised Premises. If Landlord shall not obtain a Non-Disturbance Agreement from the holder of the superior mortgage currently encumbering the Demised Premises within thirty (30) days of the date hereof, then Tenant shall have the right to terminate this Lease by written notice of such termination given to Landlord within ten (10) days of the last day of such thirty (30) day period (and if Tenant shall not timely give such termination notice to Landlord, then Tenant shall be deemed to have waived its right to terminate this Lease pursuant to this Section 4.07). Landlord hereby represents and warrants that, ‘ as of the date hereof, there are no superior leases affecting the Demised Premises or Lot No. 47.07.

 

ARTICLE 5. “AS IS”; LANDLORD’S WORK

 

Section 5.01. Tenant has examined the Demised Premises and has made a complete inspection of same and is familiar with the physical condition thereof. Except as is in this Lease specifically set forth, Landlord has not made and does not make any representation as to the physical condition or any other matter affecting or relating to the Demised Premises, and Tenant specifically acknowledges that no such representation has been made. Tenant further acknowledges that Landlord has afforded Tenant the opportunity for a full and complete investigation, examination, and inspection of the Demised Premises and Tenant agrees to accept the Demised Premises “as is”, subject to Landlord’s Work and latent defects, if any. Notwithstanding the foregoing, Landlord shall, subject to Landlord’s receipt of the security deposit required of Tenant pursuant to Section 39.01 below, perform the work set forth on Exhibit B attached hereto and hereby made a part hereof (such work is herein referred to as “Landlord’s Work”).

 

	
 
    	
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Section 5.02. Landlord or Landlord’s contractor may give Tenant notice that Landlord’s Work is complete to the extent that it is practicable for Tenant to enter the Demised Premises for the purpose of installing its fixtures and equipment, and if such notice shall be given, Tenant shall promptly thereafter commence such installation necessary so that Tenant may open the Demised Premises for business for the purposes set forth in the first sentence of Section 2.01 of this Lease. Subject to the foregoing provisions of this Section, Tenant shall have the right to install its fixtures and equipment during the period in which Landlord is performing Landlord’s Work, provided Tenant does not interfere with the progress of Landlord’s Work, and, further, provided, that insurance meeting the requirements of Section 7.02 is furnished to Landlord prior to any such entry. Such entry into the Demised Premises by Tenant prior to the Commencement Date is and shall be at the Tenant’s sole cost and risk, and the provisions of Section 7.01 and Section 7.02 shall be applicable during any such period prior to the Commencement Date.

 

Section 5.03. If Tenant claims that some or all of Landlord’s Work has not been performed by Landlord upon delivery of notice of substantial completion of Landlord’s Work, as provided herein, Tenant shall, within ten (10) business days of said date (or ten days following the date Tenant opens for the transaction of business, whichever date is sooner), submit to Landlord a written list of the work Tenant claims remains to be performed by Landlord, and Landlord shall have thirty (30) days thereafter to complete such work. If Landlord fails to complete such work, the sole remedy of Tenant shall be to complete such work and Tenant shall have the right to set off the cost thereof from the rent due Landlord in order to reimburse Tenant for the cost and expense of completion of the work. Upon written request of Landlord, Tenant will, within five (5) days following request (but not sooner than the date required by the first sentence of this Section), furnish to Landlord a written statement that Tenant is in occupancy of the Demised Premises, that Landlord’s Work has been completed in accordance with Landlord’s obligations or in lieu thereof, a list of the work Tenant claims to be incomplete.

 

Section 5.04. Landlord shall substantially complete Landlord’s Work on or prior to that date (the “Substantial Completion Date”) which is thirty (30) days following the date on which this Lease is executed and delivered by each of the parties hereto and Tenant has delivered to Landlord the security deposit required of Tenant under Article 39 below, provided, however, that if a building permit shall be required in order for Landlord to lawfully prosecute Landlord’s Work, then Landlord shall diligently seek to obtain the same and the Substantial Completion Date, notwithstanding anything herein to the contrary, shall be the earlier of (i) that date which is thirty (30) days following the date on which Landlord shall obtain a building permit for Landlord’s Work or (ii) September 1, 2001.

 

If possession of the Demised Premises (with Landlord’s Work substantially completed) shall not be delivered to Tenant on or prior to the Substantial Completion Date, Tenant shall have the right to cancel this Lease upon notice to Landlord to be given within fifteen (15) days following such date, unless possession of the Demised Premises (with Landlord’s Work substantially completed) shall be delivered to Tenant prior thereto. If Tenant shall not exercise such right of cancellation, the Substantial Completion Date shall be deemed to be automatically extended for an additional period of thirty (30) days. If possession of the Demised Premises (with Landlord’s Work substantially completed) is not delivered to Tenant prior to the expiration of such extension period, or if Tenant shall cancel this Lease pursuant to the first sentence of this paragraph, this Lease shall automatically terminate and be null and void and of no further force and effect, all monies deposited by Tenant with Landlord shall be returned to Tenant and the parties shall be mutually released of and from all rights and obligations hereunder. Tenant’s right to cancel this Lease, as provided herein, shall be Tenant’s sole remedy for Landlord’s failure to deliver possession on or before the required date.

 

	
 
    	
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If the substantial completion of Landlord’s Work is delayed by reason of: (i) any act or omission of Tenant or any of its employees, agents or contractors; or (ii) any changes by Tenant in Landlord’s Work or any changes or substitutions requested by Tenant; or (iii) Tenant’s failure to furnish plans and specifications required to be furnished by Tenant, or subsequent changes thereto; or (iv) Tenant’s request for materials, finishes or installations other than Landlord’s typical building standard; or (v) the performance or incompletion of work by a party employed or retained by Tenant; then Landlord’s Work shall be deemed substantially completed (and possession of the Demised Premises deemed delivered to Tenant) on the date when Landlord’s Work would have been substantially completed but for such delay and, in addition, Tenant shall pay to Landlord all reasonable costs and damages which Landlord actually incurs by reason of such delay.

 

Section 5.05. If there shall be a delay in the construction, repair or restoration of Landlord’s Work, the Demised Premises or the Center or any portion thereof caused by strikes, riots, acts of God, shortages of labor or materials, national emergency, governmental restrictions, laws or regulations, the act or failure to act of Tenant, including without limitation, delays in delivering construction criteria and plan approval, or for any other cause or causes beyond Landlord’s reasonable control, at Landlord’s option such delay shall not be a violation of this Lease, and the time periods set forth in this Lease for any such work shall, at Landlord’s option, be extended for a period of time equal to the period of delay.

 

Section 5.06. The Plot Plan shows the approximate location of existing buildings, buildings under construction, proposed buildings and certain areas reserved for related site improvements and future construction at the option of Landlord. Landlord shall have the right to develop the Center in the manner it sees fit and in the sole and absolute discretion of Landlord; to construct or not construct any buildings other than the Building, to change the nature or identity of the occupants of any such buildings, and to vary the floor areas, stories and heights, sizes, shapes and design of any such buildings and the divisions or portions thereof. Landlord shall not construct any such buildings so as to prevent ingress to or egress from to the Demised Premises or reduce the parking available within Lot No. 47.07 to less than that required by applicable law.

 

ARTICLE 6. ALTERATIONS AND REPAIRS

 

Section 6.01.(a) No alterations or installations or additions or other improvements (herein collectively referred to as “alterations” and individually as an “alteration”) shall at any time be made by or at the instance of Tenant without Landlord’s prior written consent, such consent not to be unreasonably withheld. Landlord’s consent shall not be required for any Non-Structural Alteration (hereinafter defined) having a cost equal to or less than $20,000.00, provided Tenant gives Landlord written notice, describing in detail, such Non-Structural Alteration prior to commencing the same and delivers to Landlord a drawing showing such Non-Structural Alteration in place by Tenant’s architect, if any such drawing shall be prepared, upon the completion of such Non-Structural Alteration. A “Non-Structural Alteration” shall be an alteration or improvement to the Demised Premises which does not require the issuance of a building permit and which is not structural in nature and which does not affect any of (i) the exterior of the Building or the Demised Premises, (ii) the structural elements of the Building or the Demised Premises (such as by way of example, and not as a limitation, load bearing walls and floor slab penetrations) or (iii) the building systems (i.e., the mechanical, electrical, sanitary, heating, ventilation, air conditioning or other service systems of the Building and/or the Demised Premises). All work, repairs, and/or alterations made by or at the instance of Tenant shall be done in a good and workmanlike manner, with first class new materials, in compliance with any applicable governmental rules and regulations, and subject to Article 19 hereof, and the cost thereof shall be paid by Tenant in cash or its equivalent, so that the Demised Premises shall at all times be free of liens for labor or materials supplied or claimed to have been supplied to the Demised Premises. Prior to commencing any alteration, Tenant shall give Landlord prior written notice of the date on which Tenant intends to commence such alteration, which notice shall describe the type of labor (i.e. union or non-union labor) Tenant intends to hire for such alteration. Notwithstanding anything herein to the contrary, Landlord may require Tenant

 

	
 
    	
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to use union labor for all alterations performed in the Demised Premises, the Building and/or in the Center if the use of non-union labor is delaying or interfering with the progress of any construction within the Building and/or Center and/or the operation of any business in the Building and/or Center; it being acknowledged and agreed that Tenant intends to use non-union labor in connection with its initial Alterations. In the event that a labor dispute arises due to Tenant’s use of non-union labor, then Tenant shall, within twenty-four (24) hours following notice from Landlord (which may be oral or written), cause each conflicting labor to leave the Demised Premises, the Building and the Center, and thereafter Tenant shall prosecute its alterations only with local union labor. All alterations to be performed by or on behalf of Tenant (other than Landlord’s Work) shall be done in accordance with plans and specifications therefor submitted to and approved by Landlord prior to the commencement of the alteration in question, which approval shall not be unreasonably withheld. Landlord acknowledges that Tenant has informed Landlord that Tenant intends to make certain initial alterations to prepare the Demised Premises for Tenant’s use, including without limitation the installation of a class 100 “clean room” of about 2,500 square feet in the non-office portion of the Demised Premises and the installation of liquid nitrogen and liquid oxygen tanks on a concrete platform approximately 30’ by 18’ to be located outside of, but adjacent to, the Demised Premises and the installation, outside of the Demised Premises, of two closed loop chillers to be supported by four pillars each (which tanks, platform and chillers and pillars shall all be solely Tenant’s responsibility, it being agreed that Tenant shall maintain the same (and the area in which the same are located) in good order and repair and in accordance with all applicable laws and that Landlord shall have no liability or responsibility with respect to such tanks and/or platform and/or chillers and/or pillars and that such tanks, platform, chillers and pillars shall be deemed Tenant’s property and that Tenant shall remove such tanks, platform, chillers and pillars from the Center and return the area in which the same are located to such area’s condition immediately prior to the installation of the item in question upon the expiration or sooner termination of the term of this Lease). Landlord does not object to the installation of such clean room, tanks, platform chillers and/or pillars subject to the conditions and agreements set forth in the parenthetical of the immediately foregoing sentence and subject to Landlord’s receipt, review and approval of the final plans and specifications for the same. Tenant shall after the date hereof deliver a final set of plans and specifications for Tenant’s initial Alteration (the “Plans”) to Landlord. Notwithstanding any provision in the Lease to the contrary, Landlord shall approve the Plans within fifteen (15) days after receipt of the same, or designate by notice given within such time period to Tenant the specific changes reasonably required by Landlord to be made to the Plans (or the portion thereof submitted) and shall return the Plans (or portion thereof submitted), as the case may be, to Tenant. Tenant shall make the minimum change necessary in order to correct any changes to the Plans reasonably requested by Landlord and shall return the Plans (or the portion thereof) to Landlord, which Landlord shall approve or disapprove within five (5) business days after Landlord receives the revised Plans (or the portion thereof submitted). This procedure shall be repeated until all of the Plans are finally approved by Landlord and written approval of Landlord has been delivered to and received by Tenant; provided that, any failure by Landlord to approve or disapprove a submission of a portion of the Plans within the applicable time periods specified above shall be considered the deemed approval of Landlord with “respect to any such submission of Plans provided such submission was accompanied by a statement referring to this Section 6.01 (a) and stating that Landlord’s failure to respond timely would cause such submission to be deemed approved by Landlord. Notwithstanding any provision to the contrary contained in this Lease, the aforementioned process for approval shall apply to any item of Tenant’s Alterations which requires the consent of Landlord No changes shall be made in said plans and specifications nor shall there be any deviation in the prosecution of any alteration in accordance with file plans and specifications approved by Landlord without Landlord’s prior written approval. Any alterations or repairs (inclusive of paneling and other wall coverings), except Tenant’s trade fixtures and any “clean room” installed by Tenant within the Demised Premises, shall, at the option of Landlord, become the property of Landlord and shall remain upon and be surrendered with the Demised Premises, as part thereof at the expiration or sooner termination of the Term. Notwithstanding the foregoing, unless Landlord shall advise Tenant in writing at least sixty (60) days prior to the Expiration Date that Landlord has elected that any paneling and wall-coverings installed by Tenant are to remain upon the expiration or sooner termination of the Term, Tenant shall, prior to the expiration or sooner termination of the Term, remove all paneling and wall-coverings installed by Tenant and restore the walls to which such paneling and wall-coverings had

 

	
 
    	
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been attached to the condition such walls were in as of the date possession of the Demised Premises was delivered to Tenant, which restoration shall include, without limitation, re-sheetrocking, taping, spackling, priming and painting such walls (and such removal and restoration obligation shall survive the expiration or sooner termination of the Term). If Tenant is in default hereunder or is dispossessed, or vacates the premises, voluntarily or otherwise, and fails to remove any property, equipment and fixtures within ten (10) days following notice by Landlord, then and in that event, the said property, equipment and fixtures shall be deemed, at the option of Landlord, to be abandoned; or in lieu thereof, at the Landlord’s option, Landlord may remove and store or dispose . of such property and restore the Demised Premises to its condition as of the date possession of the Demised Premises had been delivered to Tenant and charge the cost and expense of removal, storage and disposal and restoration to Tenant (and Tenant’s obligation to pay such charge shall survive the expiration or sooner termination of the Term). Trade fixtures shall be defined as fixtures and equipment used by Tenant in the operation of its business, but not including any fixtures and equipment which are part of the operation of the Demised Premises or the Building, such as by way of example and not as a limitation HVAC and plumbing fixtures and equipment.

 

Section 6.01.(b) Prior to the commencement of any alteration for which Landlord’s consent is required and prior to the commencement of Tenant’s initial alteration, Tenant shall deliver to Landlord a sum of money equal to the estimated cost of such alteration (such sum is hereinafter referred to as the “construction security”) as security for the faithful performance and observance by Tenant of the provisions of this Lease relating to the performance of such alteration (such security shall be in addition to, and not in lieu of, any security required of Tenant under Article 39 of this Lease). In no event shall Tenant commence the performance of any alteration until such time as Landlord has received the construction security with respect to the alteration in question. Such construction security may be in the form of cash or a letter of credit. If such construction security shall be in the form of a letter of credit, such letter of credit shall be issued by a money center bank and shall name National Realty & Development Corp. as sole beneficiary and shall not expire until the Completion Date (hereinafter defined) and otherwise in such form as may be reasonably acceptable to Landlord (Tenant agreeing to extend any such letter of credit, without amendment, as may be necessary in order for such letter of credit to remain in effect until the Completion Date and if renewal of said letter of credit is required in order to maintain such letter of credit in effect until the Completion Date, then Tenant shall renew the letter of credit and deliver evidence of such renewal to Landlord no later than that date which is thirty (30) days prior to the expiration date (prior to such renewal) of such letter of credit). The letter of credit shall provide that it may be presented for payment either at the counters of a branch of the issuing bank located in the New York City Metropolitan area or by mail at a specified branch of the issuing bank within the continental United States. Landlord shall be able to draw upon the letter of credit at any time Landlord is entitled to draw on the construction security in accordance with Section 6.01(c). The letter of credit shall provide that partial drawings shall be permitted. Said letter of credit shall specifically provide that Landlord and National Realty & Development Corp. will receive not less than thirty (30) days written notice of the election of the issuing bank to not renew the same. If the issuing bank shall not renew the same, Landlord shall have the right to draw on the letter of credit for the full amount and hold such amounts as cash security under this Section 6.01.

 

Section 6.01.(c) Landlord may draw upon the construction security at any time if Tenant has vacated, abandoned or deserted the alteration in question or Tenant has failed to pay the cost of such alteration or any portion thereof. Landlord shall be entitled to draw on the construction security to the extent of the amount required, as determined by Landlord, to either (i) complete all or any portion of the alteration in question; or (ii) demolish all or any portion of the alteration in question and restore all or any portion of the Demised Premises to its condition as of the date possession of the Demised Premises was delivered to Tenant; or (iii) pay-off any liens placed upon the Demised Premises, the Building or the Center resulting from the Tenant’s alterations in question. If, due to Tenant’s default hereunder, Landlord shall be entitled to apply or retain any portion of the construction security, Tenant shall, within five (5) days following demand, deposit with Landlord such amount as may be necessary to restore the amount of construction security to the amount determined in accordance with the first sentence of Section 6.01 (b) with respect to the alteration in question. Tenant shall not assign or encumber the construction security and neither Landlord nor its

 

	
 
    	
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successors or assigns shall be bound by any such assignment or encumbrance. Upon (i) the completion of the alteration in question in accordance with the plans and specifications therefor approved by Landlord and (ii) the receipt by Landlord of (1) a certification by Tenant that the entire cost of such alteration has been paid and the amount thereof, that all those who furnished work or materials have been paid in full, and that no party has filed any lien or possesses any claim which is unpaid or remains undischarged in connection with such alteration; (2) a Certificate of Completion or Occupancy, or an equivalent permit or certificate, as and if required by any governmental authorities with respect to the alteration in question; (3) a final release and lien waiver signed by Tenant’s general contractor and all subcontractors and materialmen, together with a certification by the general contractor to the effect that all those who furnished work or materials to the Demised Premises in connection with the alteration in question have been paid in full and that the release and waiver has been signed by all those who furnished work or materials to the Demised Premises in connection with the alteration in question; and (4) an “as built” floor plan showing the alteration in question in place certified as true and correct by Tenant (the date upon which (i) and (ii) shall have occurred is referred to herein as the “Completion Date”), the construction security then held by Landlord shall be returned to Tenant.

 

Section 6.01.(d) Upon receipt of at least twenty four hours prior notice, Tenant shall afford Landlord and its employees, agents and contractors access to the Demised Premises at reasonable times for the purpose of inspecting and verifying the performance of any alteration, and for such purposes, Landlord or its representative or representatives shall have free and unrestricted access to all parts of the Demised Premises.

 

Section 6.02. Anything to the contrary contained herein notwithstanding, it is expressly understood and agreed that Tenant may install, connect and operate such machinery, fixtures and equipment as may be deemed necessary by the Tenant for its business, subject to compliance with applicable rules and regulations of governmental bodies and bureaus having jurisdiction thereover. Subject to the terms and conditions of this Lease, the machinery, fixtures and equipment belonging to Tenant and any “clean room” installed by Tenant in the Demised Premises shall, at all times, be considered and intended to be personal property of Tenant, and not part of the realty, and subject to removal by Tenant. Tenant shall remove all such machinery, fixtures and equipment and any “clean room” installed by Tenant in the Demised Premises on or prior to the expiration or sooner termination of the term of this Lease. Tenant, at its own cost and expense, shall pay for any damage to the Demised Premises or Building caused by the installation thereof or such removal, and this obligation shall survive the expiration or sooner termination of the Term.

 

Section 6.03. Landlord shall, following reasonable notice from Tenant, make all necessary repairs and replacements to (i) the HVAC system serving the Demised Premises of which Landlord is given written notice of the need therefor prior to the first anniversary of the Commencement Date and (ii) the structural portions of the Demised Premises, including without limitation the foundations, exterior loadbearing walls, interior loadbearing walls and the roof thereof, provided, however, in no event shall Landlord be required to make any repairs or replacements caused by any act, omission, or negligence of Tenant, any subtenant, or concessionaire, or their respective employees, agents, invitees, licensees or contractors. Tenant shall make all other repairs and replacements to the Demised Premises. Tenant shall maintain throughout the Term, including any extension term hereof, a protective service maintenance contract with a contractor approved by Landlord, which approval shall not be unreasonably withheld, providing for periodic maintenance of the HVAC system serving the Demised Premises, including without limitation periodic changing of any and all filters, changing of belts, lubricating of equipment and maintenance of operating levels of freon in accordance with manufacturers specifications. Said contract shall provide for maintenance inspection and service not less than two (2) times per year. A copy of any such maintenance contract shall be delivered to Landlord on a yearly basis. Tenant shall keep all glass clean and in good condition, and Tenant shall replace any glass which may be damaged or broken with glass of the same quality. Tenant shall keep the sidewalk, if any, adjacent to the Demised Premises free and clear of trash, litter and rubbish.

 

Section 6.04. Nothing contained in this Lease shall authorize Tenant to do any act which

 

	
 
    	
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may create or be the foundation for any lien, mortgage or other encumbrance upon the reversion or other estate of Landlord, or of any interest of Landlord in the Demised Premises, or upon or in the Building or Center of which the same form a part; it being agreed that should Tenant cause any alterations, changes, additions, installations, improvements or repairs to be made to the Demised Premises, or cause materials to be furnished or labor to be performed therein or thereon, neither Landlord nor the Demised Premises shall, under any circumstances, be liable for the payment of any expense incurred or for the value of any work done or materials furnished to the Demised Premises or any part thereof. Tenant shall, upon request of Landlord, deliver such documents as may be required by Landlord in order to effectuate the lien protection required by this paragraph and Section 6.01 hereof, including without limitation, waivers of lien from all contractors. All such alterations, changes, additions, improvements, repairs, materials and labor shall be at Tenant’s sole expense and Tenant shall be solely and wholly responsible to contractors, subcontractors, laborers and materialmen furnishing labor and material to the Demised Premises and Building or any part thereof. If, because of any act or omission of Tenant, any mechanic’s or other lien or order for the payment of money shall be filed against the Demised Premises or the Building or improvements thereon or therein, or upon the Center, or against Landlord (whether or not such lien or order is valid or enforceable as such), Tenant shall, at Tenant’s own cost and expense, within twenty (20) days after notice to Tenant of the filing thereof, cause the same to be canceled and discharged of record by bonding or otherwise, and Tenant hereby indemnifies and saves harmless Landlord from and against any and all costs, expenses, claims, losses or damages, including reasonable counsel fees, resulting therefrom or by reason thereof.

 

Section 6.05. Except for the repair obligations of Landlord under Section 6.03 above and the restoration obligations of Landlord under and as set forth in Articles 8 and 10 hereof, the Tenant shall take good care of the Demised Premises and, at its cost and expense, keep and maintain in good repair the exterior doors, windows and glass and the interior of the Demised Premises, including, but not limited to, to the extent any of the same serve solely the Demised Premises, the air conditioning and heating plant, the plumbing pipes and fixtures belonging thereto; and shall repair or replace all mechanical and working parts used in connection with the air conditioning, electrical, heating and plumbing plants, fixtures and systems serving solely the Demised Premises; and shall keep the water and sewer pipes and connections serving solely the Demised Premises free from obstructions; and shall generally maintain and repair the exterior doors, windows and glass and the interior of the Demised Premises and shall, at the end or the expiration of the Term (or Extension Term, whichever is applicable), deliver up the Demised Premises in good order and condition, damages by the elements, ordinary wear and tear and casualty excepted. Tenant covenants and agrees that it shall not cause or permit any waste (other than reasonable wear and tear), damage or disfigurement to the Demised Premises, or any overloading of the floors of the Building.

 

ARTICLE 7. INDEMNITY AND INSURANCE

 

Section 7.01. Subject to the provisions of Article 9 hereof, Tenant hereby indemnifies and saves harmless Landlord from and against any claims and all loss, cost, liability, damage and/or expense, including, but not limited to reasonable counsel fees, penalties and fines, incurred in connection with or arising from (i) any default by Tenant in the observance or performance of any of the provisions, covenants or conditions of this Lease on Tenant’s part to be observed or performed, (ii) the use or occupancy or manner of use or occupancy of the Demised Premises by Tenant or any person claiming through or under Tenant, or (iii) any acts, omissions, or negligence of Tenant or any such person, or any contractor, agent, servant, employee, visitor or licensee of Tenant, or any such person, in or about the Demised Premises. If any action or proceeding shall be brought against Landlord based upon any such claim, Tenant, upon notice from Landlord, shall cause such action or proceeding to be defended, at Tenant’s expense, by counsel acting for Tenant’s insurance carriers in connection with such defense or by other counsel reasonably satisfactory to Landlord.

 

Subject to the provisions of Article 9 hereof, Landlord hereby indemnifies and saves harmless Tenant from and against any claims and all loss, cost, liability, damage and/or expense,

 

	
 
    	
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including, but not limited to reasonable counsel fees, penalties and fines, incurred in connection with or arising from (i) any default by Landlord in the observance or performance of any of the provisions, covenants or conditions of this Lease on landlord’s part to be observed or performed, (ii) the maintenance of the Common Areas by Landlord, or (iii) any acts, omissions, or negligence of Landlord or any contractor, agent, servant or employee of Landlord in or about the Common Areas. If any action or proceeding shall be brought against Tenant based upon any such claim, Landlord, upon notice from Tenant, shall cause such action or proceeding to be defended, at Landlord’s expense, by counsel acting for Landlord’s insurance carriers in connection with such defense or by other counsel reasonably satisfactory to Tenant.

 

It shall be a condition of any indemnification by a party under this Lease that (a) the indemnitee promptly notify the indemnitor of any claim giving rise to a right to indemnification, (b) the indemnitee reasonably cooperate with the indemnitor, at the indemnitor’s expense, in the defense and settlement of any such claim, (c) the indemnitor shall have no liability for the settlement of any claim by the indemnitee made without the consent of the indemnitor unless such consent was unreasonably withheld, conditioned or delayed and (d) so long as the indemnitor shall retain counsel as provided above, any separate counsel retained by indemnitee shall be at the indemnitee’s cost and expense.

 

Section 7.02. Tenant shall, during the Term (including any extension term) and during any period prior to the commencement of the Term during which Tenant or anyone acting by or on behalf of Tenant enters the Demised Premises, at Tenant’s own cost and expense, maintain and provide: (a) comprehensive general liability insurance for the benefit and protection of Landlord and Tenant (said policy to name Landlord, ground lessor, if any, and any other parties designated by Landlord, as co-insureds) in an amount not less than $1,000,000 for injuries or death to any one person, and not less than $3,000,000 for injuries or death to more than one person in any one accident or occurrence and for damage to property in an amount not less than $500,000 arising out of any one accident or occurrence; (b) plate glass insurance covering all plate glass in the Demised Premises; (c) worker’s compensation insurance covering all persons employed in connection with Tenant’s use and occupancy of the Demised Premises or any construction or alteration work therein; (d) insurance against loss or damage to Tenant’s contents, including without limitation, trade fixtures and equipment, by fire, lightning, and other risks from time to time included under standard “extended coverage” policies, and vandalism and malicious mischief, in amounts sufficient to prevent Landlord and Tenant from becoming co-insurers of any loss under such policy, but in any event, not less than 100 percent of the full insurable value of such property; (e) boiler and pressure vessel insurance on all of Tenant’s equipment, parts thereof and appurtenances attached or connected to the Demised Premises which by reason of their use or existence are capable of bursting, erupting, collapsing or exploding, in the minimum amount of Five Hundred Thousand ($500,000.00) Dollars for damage to property resulting from such perils; and (f) insurance covering such other risks as may be reasonably requested by Landlord occasioned by or attributable to the use or occupancy or manner of use or occupancy of the Demised Premises by Tenant. Said policies shall be issued by companies satisfactory to Landlord and licensed to do business in the state in which the Demised Premises is located. Certificates of said policies shall be delivered to Landlord at the commencement of the Term (or prior thereto in the event of earlier entry by Tenant upon the Demised Premises), together with proof of payment of premium therefor, and renewal policies or certificates therefor shall be delivered to Landlord not less than twenty (20) days prior to the expiration dates thereof. Said policies and/or certificates shall contain an undertaking by the insurer to give Landlord not less than twenty (20) days written notice of any cancellation or change in scope or amount of coverage of said policies.

 

Section 7.03. (a) Landlord shall, during the Term, maintain and provide general hazard insurance (including, during the course of any construction performed by, or on behalf of, Landlord, “builder’s risk endorsements”) against loss or damage to the Building by fire, lightning and other risks from time to time included under standard “Extended Coverage” policies, vandalism and malicious mischief, in amounts not less than 100 percent of the full replacement value of the Building and any other building or portion thereof covered by such insurance and rent loss insurance covering all minimum and additional rental payable hereunder. From the Commencement Date and

 

	
 
    	
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thereafter during the balance of the Term of this Lease, including any extension term, Tenant shall pay its proportionate share of the cost of maintaining and providing such insurance, based upon the method of calculation set forth in Article 31 hereof.

 

Section 7 03. (b) Such payment shall be made to Landlord, at Landlord’s option, either annually within thirty (30) days of demand therefor or in monthly installments on or before the first day of each calendar month, in advance, in an amount reasonably estimated by Landlord. Periodically Landlord shall furnish Tenant with a written statement of the actual amount of Tenant’s proportionate share of said insurance costs. Landlord shall provide Tenant with copies of invoices of said insurance costs upon written request therefor. If the total amount paid by Tenant under this section for any period during the Lease Term shall be less than the actual amount due from Tenant for such period, as shown on such statement, Tenant shall pay to Landlord the difference between the amount paid by Tenant and the actual amount due, such deficiency to be paid within thirty (30) days after written demand therefor by Landlord; and if the total amount paid by Tenant hereunder for any such period shall exceed the actual amount due from Tenant for such period, the excess shall promptly be applied by Landlord to the next accruing monthly installments thereof or, at Landlord s option to any other charges payable by Tenant, provided that if at the time of such determination the term of this Lease shall have expired or otherwise terminated for any reason other than a default of Tenant hereunder and no monies are then due from Tenant to Landlord, Landlord shall refund such excess to Tenant For the calendar years in which this Lease commences and terminates, the provisions of this section shall apply and Tenant’s liability for its proportionate share thereof for such years shall be subject to a pro rata adjustment based on the number of days of said calendar years during the Lease Term. If Tenant is to make such payment in monthly installments, then from time to time throughout the Term, Landlord will notify Tenant in writing of Landlord’s estimate of Tenant’s monthly installments due hereunder. Landlord’s and Tenant’s obligations under this section shall survive the expiration of the Lease Term.

 

Section 7.04. Insurance coverages required of Tenant hereunder shall be reviewed on an annual basis and Landlord may require that said coverages shall be updated in accordance with the provisions hereinabove set forth as to amounts and scope of coverage then required in connection with buildings similar to the Building located in Middlesex County, New jersey having premises used in a manner similar to the use of the Demised Premises.

 

ARTICLE 8. FIRE DAMAGE

 

Section 8.01. If the Demised Premises shall be partially damaged by fire or other insured casualty, the damages shall be repaired by and at the expense of Landlord and the annual minimum rental until such repairs shall be made shall abate equitably according to the part of the Demised Premises which is unusable by Tenant or, if by reason thereof, the Demised Premises are rendered untenantable, said rental shall totally abate until such repairs shall be made. Notwithstanding the foregoing, if the Demised Premises or the Building shall be damaged to such extent that Landlord shall decide to demolish same, or not to rebuild same, then, and in such event, Landlord may terminate this Lease upon notice to Tenant given within sixty (60) days following such event, and upon the date specified in such notice, which date shall not be less than thirty (30) days nor more than sixty (60) days following the giving of said notice, this Lease shall terminate and Tenant shall vacate and surrender the Demised Premises to Landlord. In the event Landlord is required to repair and/or restore the Demised Premises and/or the Building and Landlord (i) has not commenced such restoration within ninety (90) days after the date of the damage or destruction and diligently pursues completion of same, or (ii) has foiled to substantially complete restoration of the Demised Premises within two hundred seventy (270) days after the date of the damage or destruction, Tenant shall have the right to terminate this Lease by written notice to Landlord given within thirty (30) days after the expiration of such ninety (90) day or two hundred seventy (270) day period, as the case may be, and prior to the date Landlord commences restoration in the case of (i) above or the date Landlord substantially completes such restoration in case of (ii) above, and if Tenant shall timely give such termination notice, then this Lease shall terminate as of the date set forth therefor in such notice, which shall be a date not less than thirty (30) days nor more than sixty (60) days following the giving

 

	
 
    	
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of said notice, and Tenant shall vacate and surrender the Demised Premises to Landlord on or before such date. The period for the commencement or completion of the required repairs and restoration may be extended by the number of days Landlord is actually delayed as a result of strike, act of God, war, governmental action, national or state or municipal emergency, or any other cause beyond the reasonable control of Landlord. In the event that the Demised Premises or a material part thereof or all access thereto shall be materially damaged or destroyed by fire or other casualty at any time during the last nine (9) months of the term of this Lease and the renewal option(s) set forth in Article 40 hereof has not been exercised, either Landlord or Tenant may cancel this Lease upon written notice to the other party given within sixty (60) days after such damage or destruction, in which case this Lease shall terminate as of the date set forth therefor in such notice, which shall be a date not less than thirty (30) days nor more than sixty (60) days following the giving of said notice, and Tenant shall vacate and surrender the Demised Premises to Landlord on or before such date. Any annual minimum rental prepaid by Tenant beyond said date shall be promptly refunded to Tenant. Notwithstanding any of the foregoing provisions of this Article, if Landlord or the holder of any superior mortgage shall be unable to collect all of the insurance proceeds (including rent insurance proceeds) applicable to damage or destruction of the Demised Premises or the Building by fire or other cause, by reason of some action or inaction on the part of the Tenant or any of its employees, agents or contractors, then, without prejudice to any other remedies which may be available against Tenant, the abatement of Tenant’s rents provided for in this Article shall not be effective to the extent of the uncollected insurance proceeds.

 

Section 8.02. If this Lease shall not be terminated as provided above in this Article, Landlord shall, at its expense, proceed with the restoration of the Demised Premises, provided, Landlord’s obligations hereunder shall not exceed the scope of Landlord’s initial building standard construction of the Demised Premises and further provided, that Landlord’s restoration obligations shall be subject to building and zoning laws then in effect. No penalty shall accrue for reasonable delay which may arise by reason of adjustment of insurance on the part of Landlord. If Landlord shall so restore the Demised Premises, Tenant shall repair, restore and redecorate the Demised Premises and reoccupy and reopen the Demised Premises in a manner and to the condition existing prior to the event of damage, except to the extent that Landlord is obligated above, and Tenant shall hold in trust the proceeds of all insurance carried by Tenant on its property for the purpose of such repair and restoration.

 

Section 8.03. Nothing hereinabove contained with respect to Tenant’s right to abate the rent under proper conditions shall be construed to limit or affect Landlord’s right to payment under the rental loss coverage to be provided pursuant to Section 7.03 hereof.

 

ARTICLE 9. WAIVERS OF SUBROGATION

 

Section 9.01. Landlord, its officers, agents, employees, subsidiaries and affiliated entities and corporations shall not be liable for any damage to or destruction of any of Tenant’s goods, merchandise, fixtures, furniture or property of whatsoever nature, caused by fire or any other cause whatsoever, including, without limitation, the negligence of any such parties, and Tenant hereby releases and waives any right of recovery against Landlord, its officers, agents, employees, subsidiaries and affiliated entities and corporations for any such loss. Tenant shall procure a waiver of subrogation on the part of the insurer against such parties by an endorsement to all insurance policies whereby the insurer recognizes the provisions of this Section 9.01.

 

Section 9.02. Tenant, its officers, agents employees, subsidiaries and affiliated entities and corporations shall not be liable for any damage to or destruction of any of Landlord’s goods, merchandise, fixtures, furniture or property of whatsoever nature, caused by fire or any other cause whatsoever, including, without limitation, the negligence of any such parties, and Landlord hereby releases and waives any right of recovery against Tenant, its officers, agents, employees, subsidiaries and affiliated entities and corporations for any such loss. Landlord shall procure a waiver of subrogation on the part of the insurer against such parties by an endorsement to all insurance policies whereby the insurer recognizes the provisions of this Section 9.02.

 

	
 
    	
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ARTICLE 10. CONDEMNATION

 

Section 10.01. If the whole of the Demised Premises shall be taken by any governmental authority under the power of condemnation, eminent domain, or expropriation, or in the event of a conveyance in lieu thereof, the Term shall cease as of the day possession shall be taken by such governmental authority. If (a) more than 25 percent of the Demised Premises or (b) all reasonable means of access to the Demised Premises (and there shall be no reasonable substitute means of access to the Demised Premises) or (c) so much of the Demised Premises (so that Tenant, in its reasonable business judgment, is unable to conduct its business as contemplated in the remaining portion of the Demised Premises) shall be so taken or conveyed, Tenant shall have the right to terminate this Lease upon notice to the other party, effective as of the day possession shall be taken by such governmental authority. If this Lease is so terminated, annual minimum rental shall be prorated as of the date that possession must be surrendered to the condemning authority.

 

Section 10.02. If this Lease continues after a partial taking, the annual minimum rental shall abate equitably as to the part of the Demised Premises which is taken. If this Lease continues after any such taking or conveyance, Landlord shall make all necessary repairs and restorations so as to restore the remainder of the Demised Premises to a complete architectural unit. Landlord’s reconstruction obligations shall not exceed the amount of the award or compensation for the taking shall not exceed the scope of Landlord’s initial building standard construction of the Demised Premises, and shall be subject to building and zoning laws then in effect.

 

Section 10.03. If so much of the Center, Common Areas or Building shall be so taken or conveyed so that in the reasonable exercise of Landlord’s judgment, the continued operation of the Building for use by its tenants is unfeasible, then, in such event, Landlord may, by notice to Tenant, delivered not later than thirty (30) days following the date that possession of the premises taken or conveyed is delivered to the governmental authority, terminate this Lease, provided that Landlord terminates all leases of the other tenants of the Building similarly effected as to which Landlord has a right of termination under the circumstances, and rent shall be pro rated as of the date that possession must be surrendered to the condemning authority.

 

Section 10.04. Tenant and not Landlord shall be entitled to any portion of the award made to Tenant for the value of Tenant’s removable trade fixtures and equipment other than equipment necessary for the operation of the Building. All compensation awarded for the taking of the Building, the fee and the leasehold shall belong to and be the property of Landlord, and Tenant shall not be entitled to and hereby waives any damages for the unexpired portion of the Term, or injury to its leasehold interest.

 

ARTICLE 11. ASSIGNMENT AND SUBLETTING

 

Section 11.01. Tenant, for itself, its heirs, distributees, executors, administrators, legal representatives, successors and assigns, as the case may be, expressly covenants that it shall not assign, mortgage or encumber this agreement, nor sublet or underlet nor suffer or permit the Demised Premises or any part thereof to be used by others without the prior written consent of Landlord in each instance. It, with consent of Landlord, this Lease may be assigned, or the Demised Premises or any part thereof be underlet or occupied by anybody other than Tenant, Landlord may collect rent from the assignee, undertenant or occupant and apply the amount collected to the rent herein reserved, but no such assignment, underletting, occupancy or collecting shall be deemed to relieve Tenant or any guarantor of this Lease or guarantor of the obligations of Tenant hereunder of any of its or their obligations hereunder nor be deemed a waiver of this covenant, or the acceptance of the assignee, undertenant or occupant as tenant, or a release of Tenant or any guarantor of this Lease or any guarantor of the obligations of Tenant hereunder from its or their obligations under the

 

	
 
    	
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covenants, provisions and conditions hereof; it being understood and agreed that Tenant and any guarantor of this Lease or any guarantor of the obligations of Tenant hereunder shall at all times, including during any extension term, remain obligated as primary obligors under this Lease. The consent by Landlord to an assignment or underletting shall not in any wise be construed to relieve Tenant or any other Tenant, assignee, undertenant, or occupant of the Demised Premises from obtaining the express consent in writing of Landlord to any further assignment or underletting, and no such assignment or subletting shall be made to anyone who shall occupy the Demised Premises for any use other than as specifically permitted by the terms of this Lease. Notwithstanding anything contained in this Lease to the contrary, in the event that it shall be found by a court of competent jurisdiction that Landlord was unreasonable in withholding its consent to the assignment of this Lease or the subletting of all or any portion of the Demised Premises, then, provided Landlord’s consent was not withheld in bad faith, Tenant’s sole remedy shall be limited to specific performance and Tenant shall not be entitled to damages or any other affirmative relief or remedy as a result thereof. In the event of a leveraged buy-out or other take-over of Tenant, Landlord’s consent to an assignment of this Lease or subletting of the Demised Premises to the successor entity shall not be deemed to have been unreasonably withheld if said successor entity shall not have a net worth (in the event of a corporate entity, on a market value basis) as certified to by a certified public accountant at least equal to the net worth of Tenant upon the date of execution of this Lease.

 

Section 11.02. Any assignment or transfer of this Lease and any subletting of all or a portion of the Demised Premises shall be subject to Landlord’s prior written consent and subject to the terms of all of the sections of this Article 11 and shall be made only and shall not be effective until, the assignee or subtenant shall execute, acknowledge and deliver to Landlord a recordable agreement, in form and substance satisfactory to Landlord and counsel for Landlord, whereby the assignee or subtenant shall assume for the benefit of Landlord the obligations and performance of this Lease and agree to be personally bound by and upon all of the covenants, agreements, terms, provisions and conditions hereof on the part of Tenant to be performed or observed, and whereby Tenant (and any guarantor of this Lease or of the Tenant’s obligations hereunder) covenants and agrees to remain liable as a primary obligor for the due performance of all of the covenants, agreements, terms, provisions and conditions of this Lease on the part of Tenant to be performed or observed. In the event of any assignment of this Lease or any subletting of all or any portion of the Demised Premises, the obligations of Tenant and any guarantor of this Lease or any guarantor of the obligations of Tenant under this Lease as a primary obligor shall be unaffected and shall remain in full force and effect.

 

Section 11.03. In the event that Tenant desires to assign this Lease or sublet all or a portion of the Demised Premises, Tenant shall first notify Landlord in writing of its intention, and such notice shall include a statement (“Tenant’s Statement”) describing the proposed terms on which Tenant is willing to assign or sublet, including, inter alia, the commencement date of the proposed assignment or sublease, which shall be not less than sixty (60) days nor more than one hundred eighty (180) days after the giving of such Tenant’s Statement. The giving of Tenant’s Statement shall be deemed an offer from Tenant to Landlord whereby Landlord (or Landlord’s designee) may, at its option (hereinafter referred to as “Landlord’s Option”), terminate this Lease (only if the proposed transaction is an assignment or a sublease of all or substantially all of the Demised Premises for all or substantially all of the remainder of the term of this Lease). Landlord’s Option may be exercised by Landlord by notice to Tenant at any time within thirty (30) days after Tenant’s Statement has been given by Tenant to Landlord; and during such thirty (30) day period Tenant shall not assign this Lease nor sublet the Demised Premises or any portion thereof to any person or entity. If Landlord exercises Landlord’s Option to terminate this Lease as aforesaid, then this Lease shall end and expire on the date that such assignment or sublet was to be effective or commence, as the case may be, as set forth in Tenant’s Statement as if such date were the Expiration Date originally set forth herein and the fixed rent and additional rent shall be paid and apportioned to such date. If Landlord does not exercise Landlord’s Option pursuant to this Section 11.03 with respect to an assignment or sublease on the terms proposed in the relevant Tenant’s Statement, then, provided Tenant is not in default of any of Tenant’s obligations under this Lease after the giving of any required notice and the expiration of any applicable cure period, Landlord’s consent to Tenant’s request for a sublease or an assignment (in a form reasonably satisfactory to Landlord and Tenant)

 

	
 
    	
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on the terms described in the relevant Tenant’s Statement shall not be unreasonably withheld or conditioned and shall be granted or denied within thirty (30) days after Tenant shall submit to Landlord fully executed copies of the proposed assignment or sublease (upon the terms set forth in the Tenant’s Statement) together with current financial information with respect to the proposed subtenant or assignee (such consent shall be deemed granted if Landlord shall not respond to such request within such thirty (30) day period provided such request was accompanied by the submissions required of Tenant pursuant to this Section 11.03 as well as by a statement referring to this Section 11.03 and stating that Landlord’s consent shall be deemed given if Landlord did not respond in 30 days; in the event Landlord denies Tenant’s request, such denial shall be accompanied by a statement specifying the reason(s) for such denial), provided and subject to the following conditions: (a) Tenant shall have complied with the provisions of Section 11.02 and this Section 11.03, and Landlord shall not have exercised Landlord’s Option under this Section 11.03 with respect to the Tenant’s Statement to which the assignment or sublease in question relates; (b) the proposed assignee or subtenant shall be, in Landlord’s reasonably judgment, engaged in a business, and the Demised Premises or the relevant part thereof shall be used by such assignee or subtenant, as the case may be, in a manner that is limited to the use expressly permitted under this Lease; (c) the proposed assignee or subtenant shall have sufficient financial worth considering the responsibility involved, and Landlord shall have been furnished with reasonable proof thereof; (d) if Landlord (or any of Landlord’s affiliates) then has space available in the Center of comparable size of the Demised Premises (or that portion thereof proposed to be sublet in the case of a sublease) and for a term of equal or greater length of the then remaining Term of this Lease (or the term of the proposed sublease in the case of a sublease), then neither the proposed assignee or sublessee nor any affiliate of the proposed assignee or sublessee shall be then an occupant of any part of the Center; (e) if Landlord (or any of Landlord’s affiliates) then has space available in the Center of comparable size of the Demised Premises (or that portion thereof proposed to be sublet in the case of a sublease) and for term of equal or greater length of the then remaining Term of this Lease (or the term of the proposed sublease in the case of a sublease), then neither the proposed assignee or sublessee nor any affiliate of the proposed assignee or sublessee shall be a person or entity with whom Landlord (or any of Landlord’s affiliates) is then negotiating to lease space in the Center or with whom Landlord (or any affiliate of Landlord) has negotiated for space in the Center within the preceding six (6) months of the date of the relevant Tenant’s Statement; (f) the form of the proposed sublease shall comply with the applicable provisions of this Article; (g) in the case of an assignment the assignee and Tenant shall have executed and delivered to Landlord an agreement, in a form reasonably acceptable to Landlord, by which assignee assumes, for the benefit of Landlord, the obligations of Tenant under this Lease and Tenant acknowledges that, notwithstanding such assignment, Tenant remains obligated as a primary obligor for the obligations of Tenant under this Lease; and (h) such assignment or sublease shall be effective, and commence, as of a date within one hundred eighty (180) days of Landlord’s receipt of the relevant Tenant’s Statement.

 

Section 11.04. If Landlord gives its consent to any assignment of this Lease or to any sublease, Tenant shall, in consideration therefor, pay to Landlord, as additional rent:

 

(a)                    in the case of an assignment, an amount equal to fifty percent (50%) of all sums and other considerations paid to Tenant by the assignee for or by reason of such assignment (including, but not limited to, sums paid for the sale of Tenant’s fixtures, leasehold improvements, equipment, furniture, furnishings or other personal property, less, in the case of a sale thereof, the then fair market value thereof) and remaining after reimbursement to Tenant for the reasonable out-of-pocket costs paid by Tenant for alteration costs (or contributions in lieu thereof), advertising, brokerage or consulting fees or commissions and legal fees in connection with such assignment (the “Tenant’s Assignment Expanses”); and

 

(b)                   in the case of a sublease, an amount equal to fifty percent (50%) of any rents, additional charge or other consideration payable under the sublease to Tenant by the subtenant in excess of the minimum rent and additional rent payable under this Lease and accruing during the term of the sublease in respect of the subleased space (at the rate per square foot payable by Tenant hereunder) pursuant to the terms hereof

 

	
 
    	
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(including, but not limited to, sums paid for the sale or rental of Tenant’s fixtures, leasehold improvements, equipment, furniture or other personal property, less, in the case of the sale thereof, the then fair market value thereof) and remaining after reimbursement to Tenant for the reasonable out-of-pocket costs paid by Tenant for alteration costs (or contributions in lieu thereof), advertising, brokerage or consulting fees or commissions and legal fees in connection with such subletting (“Tenant’s Subletting Expenses”).

 

The sums payable under Sections 11.04 (a) and (b) shall be paid to Landlord as and when paid by the assignee or subtenant, as the case may be, to Tenant, and upon the execution and delivery of such assignment or sublease, as the case may be, Tenant shall provide to Landlord a statement of Tenant’s Assignment Expenses or Tenant’s Subletting Expense, as the case may be, certified as correct by an officer or principal of Tenant.

 

ARTICLE 12. COMMON AREA MAINTENANCE

 

Section 12.01. As used in this Lease, the term “Common Area Operating Costs” shall include the total cost and expense incurred by Landlord in operating, lighting, striping, maintaining, cleaning, landscaping, repairing (including replacement and resurfacing) managing, signing, equipping and insuring the Common Areas within Lot No. 47.07 plus ten (10%) percent of the foregoing costs to cover Landlord’s administrative and overhead costs. Such costs and expenses shall include, without limitation (including appropriate reserves): cleaning; fire and police protection and general security (Landlord not incurring or assuming any obligation to provide such protection or security or any liability for the failure of the same); repairing and replacing paving; keeping the Common Areas supervised, drained, reasonably free of snow, ice, rubbish and other obstructions, and in a neat, clean, orderly and sanitary condition; the charges for rubbish containers and removal (except that at Landlord’s option, Tenant shall be directly responsible for contracting for and for providing (subject to Landlord’s approval, not to be unreasonably withheld, of the provisions and conditions of the agreement therefor) rubbish containers and removal); the maintenance of any and all fire protection systems servicing Lot No. 47.07; the cost of public liability insurance; keeping the Common Areas suitably lighted; maintaining signs (other than Tenant’s signs), markers, painted lines delineating parking spaces, and other means and methods of pedestrian and vehicular traffic control; installing, maintaining and repairing of onsite and offsite traffic controls; maintaining adequate roadways, entrances and exits; maintaining any plantings and landscaped areas; Lot No. 47.07 management fees to the extent not duplicative of the ten (10%) percent fee referred to above to cover Landlord’s administrative and overhead costs incurred by Landlord, including management fees payable to parties or entities owned or controlled by Landlord or any of them to the extent not in excess of management fees then generally being paid with respect to buildings of a size and uses similar to those of the Building and property improved and used similarly to Lot No. 47.07; “maintenance and repair of all utilities, utility conduits and storm drainage systems situated within or servicing Lot No. 47.07; fees for required licenses and permits; and depreciation of machinery and equipment used in the operation and maintenance of the Common Areas and personal property taxes and other charges incurred in connection with such equipment. The term “Common Areas” shall be defined as all paved areas, driveways, truckways, walkways, and landscaped and planted areas within Lot No. 47.07. Landlord shall maintain, light clean and repair (including snow removal) the Common Areas so that such Common Areas may be used for their intended purposes, and in order to enable Landlord to perform its obligations as aforesaid, Landlord may incur such reasonable Common Area Operating Costs as Landlord, in its sole discretion, may determine.

 

Section 12.02. From the Commencement Date and thereafter during the balance of the Term of this Lease, including any extension term, Tenant shall pay Landlord Tenant’s proportionate share of Common Area Operating Costs incurred or expended by Landlord as aforesaid. Such payment shall be made to Landlord in monthly installments on or before the first day of each calendar month, in advance, in an amount reasonably estimated by Landlord. Following the expiration of each calendar year during the Term hereof, Landlord shall furnish Tenant with a written statement of the

 

	
 
    	
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actual amount of Tenant’s proportionate share of the Common Area Operating Costs for such year. If the total amount paid by Tenant under this section for any calendar year during the Term shall be less than the actual amount due from Tenant for such year, as shown on such statement, Tenant shall pay to Landlord the difference between the amount paid by Tenant and the actual amount due, such deficiency to be paid within ten (10) days after demand therefor by Landlord; and if the total amount paid by Tenant hereunder for any such calendar year shall exceed such actual amount due from Tenant for such calendar year, such excess shall promptly be applied by Landlord to the next accruing monthly installments of Tenant’s proportionate share of Common Area Operating Costs or, at Landlord’s option, to any other charges payable by Tenant, provided that if at the time of such determination the term of this Lease shall have expired or otherwise terminated for any reason other than a default of Tenant hereunder and no monies are then due from Tenant to Landlord, Landlord shall refund such excess to Tenant For the calendar years in which this Lease commences and terminates, the provisions of this section shall apply, and Tenant’s liability for its proportionate share of any Common Area Operating Costs for such years shall be subject to a pro rata adjustment based on the number of days of said calendar years during the Term. Prior to or at the commencement of the Term and from time to time thereafter throughout the Term, Landlord will notify Tenant in writing of Landlord’s estimate of Tenant’s monthly installments due hereunder. Landlord shall have the right to make special assessments from time to time for extraordinary Common Area Operating Costs and Tenant shall pay any such special assessment within thirty (30) days following Landlord’s billing therefor. Extraordinary Common Area Operating Costs shall include, without limitation, any charge not anticipated by Landlord in determining Landlord’s estimate of Tenant’s proportionate share of Common Area Operating Costs for the year in question and any charges, costs and expenses incurred by Landlord which might cause the amounts paid by Tenant pursuant to Landlord’s estimate of Tenant’s proportionate share of Common Area Operating Costs for the year in question to be less than the amount actually due from Tenant for such year pursuant to this Section 12.02. Landlord’s and Tenant’s obligations under this section shall survive the expiration of the Term. Tenant’s proportionate share of Common Area Operating Costs shall be a fraction, having as its numerator, the number of square feet of floor area within the Demised Premises and as its denominator, the total number of square feet of floor area of all buildings within Lot No. 47.07 or, at Landlord’s option, the portion thereof affected by such cost, including the Demised Premised and any vacant space. Notwithstanding the foregoing provisions of this Article, in the event the obligations of Tenant under this Article 12 are specifically identifiable separate charges relating solely to Tenant and/or the Demised Premises, then, and in such event, the obligations of Tenant under this Article 12 may, at Landlord’s option, be measured and payable in accordance with such separate and specifically identifiable charge and not by the provisions of the preceding sentence and if Landlord shall recover any amount from any other tenant of the Center on account of a separate and specifically identifiable charge ordinarily included in Common Area Operating Costs separately billed to such other tenant, then such charge shall not be included in Common Area Operating Costs for the purposes of this Lease.

 

Section 12.03. Tenant, its concessionaires, officers, employees, and agents may use the Common Areas, subject to such reasonable rules and regulations as Landlord may from time to time impose, including the designation of specific areas in which vehicles owned or operated by Tenant, its concessionaires, officers, employees and agents must be parked. Tenant shall abide by such rules and regulations and cause its concessionaires, officers, employees, agents, customers and invitees to conform thereto. Landlord may, at any time, close temporarily any Common Areas to make repairs or changes therein or to effect construction repairs or changes within Lot No. 47.07, provided that if any such repairs or changes shall prohibit the use of all then existing means of access to the Demised Premises, Landlord shall provide a reasonable substitute means of access to the Demised Premises for so long a such repairs or changes prohibit use of all then existing means of access to the Demised Premises, and Landlord may do such other acts in and to the Common Areas as in its reasonable judgment may be desirable to improve the convenience thereof.

 

Section 12.04. Notwithstanding anything to the contrary herein contained, Landlord hereby reserves the right (and Tenant hereby consents thereto) to construct or permit the construction, use and maintenance within the Common Areas of Lot No. 47.07 including without limitation, the parking areas, of various commercial type buildings, structures, and appurtenances, and equipment incidental thereto.

 

	
 
    	
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Section 12.05. Tenant, its employees or its agent, upon reasonable prior written notice to Landlord, may examine, at Landlord’s place of business during regular business hours, the books and records of Landlord pertaining to Common Area Operating Expenses for any period during the Term, but in no event for a period commencing more than two (2) years prior to the date of such examination. If any such examination shall show that Tenant’s proportionate share of the Common Area Operating Expenses for the calendar year in question was more than that previously paid by Tenant for such year, then Tenant shall pay such difference to Landlord within ten (10) days of such examination. If any such examination shall show that Tenant’s proportionate share of the Common Area Operating Expenses for the calendar year in question was less than that previously paid by Tenant for such year, then the difference shall be credited to any amounts due from Tenant to Landlord, provided that if at the time of such determination the term of this Lease shall have expired or otherwise terminated for any reason other than a default of Tenant hereunder and no monies are then due from Tenant to Landlord, Landlord shall refund such difference to Tenant If such examination shall show that Landlord overstated Common Area Operating Expenses by more than five (5%), then Landlord shall re-imburse Tenant the reasonable out-of-pocket costs incurred by Tenant in connection with such examination.

 

ARTICLE 13. UTILITIES

 

Section 13.01. Tenant shall pay, as and when they shall be due and payable, all water charges, taxes, water rates and/or meter charges, sprinkler charges (standby or otherwise), sewer taxes, sewer charges, sewer fees, and sewer rental taxes and charges for utilities, including, without limitation, the charges for gas, electricity, and other utilities furnished to Tenant and consumed in the Demised Premises directly to the applicable utility provider except that water and sewer charges shall be paid to Landlord within thirty (30) days of Landlord’s billings therefor made from time to time, which billings shall be made on the basis of submeters measuring the consumption of water within the Demised Premises. Landlord represents and warrants that, as of the date hereof, gas and electricity supplied to the Demised Premises are separately submetered. Landlord shall have the right, in its sole and absolute discretion, to select the utility company which will provide service to the Common Areas of the Center and/or to the tenants in the Center, including, without limitation, the Demised Premises. Landlord may, at any time and from time to time during the Term, contract for service with another utility company to provide service to the Common Areas of the Center and/or the tenants in the Center. Tenant agrees to cooperate with Landlord and Landlord’s designees, including, without limitation, the utility company, and provide access (on notice except in the case of an emergency) to the Demised Premises as is necessary to provide or to change the utility service to the Demised Premises and/or to the Center. Tenant shall heat the Demised Premises whenever the weather shall require. If Landlord, or any property of Landlord, shall be held responsible for any expense covered by this Article, Tenant shall pay Landlord the amount thereof within thirty (30) days following written request. Landlord shall not be responsible or liable for any loss, damage or expense that Tenant may sustain or incur by reason of any failure, interference, disruption or defect in the supply or character of the utility service furnished to the Demised Premises, or by reason of change in the quantity or character of the utility service provided, and no such failure, interference, disruption, defect or change shall constitute an actual or constructive eviction, in whole or in part, or entitle Tenant to any abatement or diminution of rent, or relieve Tenant from any of its obligations under this Lease, provided, however, that if any failure, interference, disruption or defect in the supply or character of any such service is directly caused by the negligence or willful misconduct of Landlord and as a result of such failure, interruption, disruption or defect Tenant is unable to use the Demised Premises or a material portion thereof for at least one full business day, then, notwithstanding anything in this Lease to the contrary, the annual minimum rent and additional rent under Sections 8.03, 12.02 and 14.01 of this Lease shall abate with respect to the Demised Premises, or such portion, as the case may be, from the date on which Tenant was first so unable to use the Demised Premises until the earlier of (i) the date on which the service in question is restored or (ii) the date Tenant resumes use of the Demised Premises or such portion affected by the failure, interruption, disruption or defect in the supply or character of the service in question. The utility companies may, to the extent applicable, provide (or have

 

	
 
    	
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provided) their conductors, equipment, switches and other associated appurtenances to the Center in consideration for and in anticipation of providing utility service to all of the tenants in the Center. In the event that Tenant contracts for utility service with an alternate provider than the utility company providing service to the Common Areas (“Landlord’s Utility Company”), and Landlord’s Utility Company seeks compensation for installation of their conductors, equipment, switches and other associated appurtenances because of Tenant contracting with an alternate provider, whether in the form of higher rates or otherwise, then Tenant shall reimburse Landlord for any disbursements applicable thereto made by Landlord to Landlord’s Utility Company, whether as one lump sum payment or as separate annual payments. In no event shall Landlord be obligated to enter into an easement agreement or to permit an alternate service provider’s equipment to be installed within the Common Areas as a result of Tenant selecting an alternate service provider.

 

Landlord acknowledges that Tenant will require, and arrange for at Tenant’s sole cost and expense, 3,000 amps of additional electrical capacity to be brought to the Demised Premises in connection with Tenant’s use. Any and all work necessary in connection with bringing such additional capacity to the Demised Premises shall be deemed an alteration and subject to the provisions of this Lease with respect to alterations. Further, Tenant acknowledges that the installation of such additional electrical capacity shall require the installation of a transformer. Tenant agrees that such transformer shall be installed in a location approved by Landlord, such approval not to be unreasonably withheld. At Landlord’s request, made at least sixty (60) days prior to the Expiration Date, Tenant shall remove such transformer and all other work performed in connection with bringing such additional capacity to the Demised Premises and restore the areas affected by such work to their respective condition as of the date possession of the Demised Premises was first given to Tenant. If the installation of such additional capacity requires that electrical, or any other utility, service to the Center, the Building or any portion thereof be discontinued for any period of time, such discontinuance shall only be made at a time, and for a duration, approved by Landlord (with the intention that any such discontinuance shall be made at a time, and for a duration, so as to minimize any disruption, impact or effect on the other tenants and occupants of the Center and their respective business operations). Tenant acknowledges that Landlord may require that any such discontinuance be made only during non-business hours. Tenant shall indemnify and hold Landlord harmless from and against any and all claims, and all loss, cost, liability, damage and/or expense, including, but not limited to reasonable counsel fees, penalties and fines, incurred in connection with or arising from any such discontinuance. Tenant’s obligations under this paragraph shall survive the expiration or sooner termination of the term of this Lease.

 

ARTICLE 14. TAXES

 

Section 14.01. (a) Subject to the reimbursement obligations of Tenant hereinafter set forth, Landlord shall pay during the Term of this Lease, all real estate taxes assessed or imposed upon or respecting the land and improvements within and upon Lot No. 47.07. The term “real estate taxes” for purposes of this Lease shall exclude income, franchise, estate or inheritance taxes levied against Landlord or taxes based upon rental receipts as well as all excess profits taxes, business taxes, sales taxes, transit taxes, profit taxes, corporate taxes, gift taxes, excise taxes, personal property taxes, real property transfer taxes, gains taxes, recording fees, recording taxes and any penalties or interest imposed on Landlord by reason of Landlord’s failure to pay taxes and assessments when due, but shall include any taxes levied in lieu of or as a substitute for real estate taxes. From the Commencement Date and thereafter during the balance of the Term of this Lease, including any extension term, Tenant shall pay to Landlord, as additional rent, at the time and in the manner set forth in Section 14.01 (b), Tenant’s proportionate share of such taxes, which proportionate share shall be based upon the method of calculation set forth in Article 31 hereof. Notwithstanding the foregoing, if the improvements within the Demised Premises and/or the balance of the improvements or any part thereof upon Lot No. 47.07 shall receive a separate assessment based upon the certification of the Tax Assessor, then the taxes payable by Tenant for such improvements may, at Landlord’s option, be based thereon. If, by law, any assessment may be paid in installments, then, for the purposes hereof (a) such assessment shall be deemed to have been payable in the maximum

 

	
 
    	
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number of installments permitted by law (regardless of when actually paid) and (b) there shall be included in real estate taxes, for each calendar year in which such installments may be paid, the installments of such assessments so becoming payable during such calendar year, together with interest payable during such calendar year.

 

Section 14.01. (b) All amounts payable by Tenant pursuant to this Article shall be paid to Landlord in monthly installments on or before the first day of each calendar month, in advance, in an amount estimated by Landlord (which estimate shall be based on a percentage increase over the actual real estate taxes for the prior year); provided, that in the event Landlord is required under any mortgage encumbering Lot No. 47.07 to escrow real estate taxes, Landlord may, but shall not be obligated to, use the amount required to be so escrowed as a basis for its estimate of the monthly installments due from Tenant hereunder. As soon as shall be reasonably practicable following the expiration of each calendar year during the Term, Landlord shall furnish Tenant with a written statement of the actual amount of Tenant’s share of the taxes for such year. If the total amount paid by Tenant under this Section for any calendar year during the Term shall be less than the actual amount due from Tenant for such year, as shown on such statement, Tenant shall pay to Landlord the difference between the amount paid by Tenant and the actual amount due, such deficiency to be paid within thirty (30) days after demand therefor by Landlord; and if the total amount paid by Tenant hereunder for any such calendar year shall exceed such actual amount due from Tenant for such calendar year, such excess shall be applied by Landlord to the next accruing monthly installments of taxes due from Tenant or, at Landlord’s option, to any other charges payable by Tenant, provided that if at the time of such determination the term of this Lease shall have expired or otherwise terminated for any reason other than a default of Tenant hereunder and no monies are then due from Tenant to Landlord, Landlord shall refund such excess to Tenant. For the calendar years in which this Lease commences and terminates the provisions of this Section shall apply, and Tenant’s liability for its share of taxes for such years shall be subject to a pro rata adjustment based on the number of days of said calendar years during the Term. Prior to or at the commencement of the Term and from time to time thereafter throughout the Term, Landlord may notify Tenant in writing of Landlord’s estimate of Tenant’s monthly installments due hereunder. Landlord shall provide Tenant with a copy of any relevant tax bill received by Landlord upon Tenant’s request therefor. If Landlord receives a refund of real estate taxes for any calendar year during the term of the Lease as to which Tenant paid to Landlord its proportionate share, Landlord shall promptly credit to any amounts then due from Tenant or to any amounts to become due from Tenant, Tenant’s proportionate share of the refund after deducting therefrom Landlord’s costs in obtaining the same, provided that if at the time Landlord receives such refund the term of this Lease shall have expired or otherwise terminated for any reason other than a default of Tenant hereunder and no monies are then due from Tenant to Landlord, Landlord shall pay to Tenant Tenant’s proportionate share of such refund after deducting therefrom Landlord’s costs in obtaining the same. Landlord’s and Tenant’s obligations under this Section shall survive the expiration of the Term.

 

Section 14.02. Tenant shall be liable for all taxes on or against property and trade fixtures and equipment placed by Tenant in or about the Demised Premises, and all taxes on Tenant’s right to occupy the Demised Premises. If any such taxes are levied against Landlord or Landlord’s property, and if Landlord pays same, or if the assessed valuation of Landlord’s property is increased by the inclusion therein of a value placed upon such property, and if the Landlord pays the taxes based on such increased assessment, Tenant, upon demand, shall repay to Landlord the taxes so paid by Landlord or the portion of such taxes resulting from such increase in assessment.

 

ARTICLE 15. REMEDIES OF LANDLORD

 

Section 15.01. (a) If Tenant shall default in the payment of the annual minimum rental reserved herein, or in the payment of any item of additional rent or other monies due hereunder, or any part of same, and any such default shall continue for more than five (5) business days after written notice of such default; or

 

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covenants and conditions of this Lease (other than a default covered by subsection (a) above and other than sections hereof which provide a specific period or date for performance), and such default shall continue for more than thirty (30) days after written notice of such default, or for such other period provided in the relevant section hereof, unless, the default is of such a nature that it cannot be reasonably cured within such thirty (30) day (or such other) period and (A) within such thirty (30) day (or such other) period Tenant (i) notifies Landlord that it intends to cure such default and (ii) actually commences to cure such default and (B) Tenant thereafter diligently proceeds to complete such cure within a reasonable time; or

 

Section 15.01. (c) If Tenant shall sublet the Demised Premises or assign this Lease, except as herein provided; or

 

Section 15.01. (d) If Tenant or any guarantor of Tenant’s obligations hereunder shall make an assignment for the benefit of creditors, or if any such party shall file or have filed against it a petition in bankruptcy, or be adjudicated a bankrupt by any court and such adjudication shall not be vacated within sixty (60) days, or if Tenant or any guarantor of Tenant’s obligations hereunder takes the benefit of any insolvency act, or if Tenant or any guarantor of Tenant’s obligations hereunder be dissolved voluntarily or involuntarily or have a receiver of its property appointed in any proceedings other than bankruptcy proceedings and such appointment shall not be vacated within thirty (30) days after it has been made, or if any levy, sale or execution of any kind is made upon or of any property of Tenant in the Demised Premises; or

 

Section 15.01. (e) If, within any period of two hundred and seventy consecutive days: (i) Tenant shall default (the “First Default”) in any of its monetary obligations under this Lease and notice thereof shall be given to Tenant as provided above; and (ii) Tenant shall default in any of its monetary obligations under this Lease for a second time (the “Second Default”) (notwithstanding that Tenant may have cured the First Default) and notice thereof shall be given to Tenant as provided above, and (iii) Tenant shall default in any of its monetary obligations under this Lease for a third time (the “Third Default”) (notwithstanding that Tenant may have cured the First Default and/or the Second Default) and notice thereof shall be given to Tenant as provided above and neither the First Default nor the Second Default nor the Third Default shall be, or shall have been, subject to a bona fide dispute made by Tenant as to which dispute Tenant gave Landlord written notice within five (5) business days of notice to Tenant of the default in question;

 

then, upon the happening of any one or more of the defaults or events specified above, at the option of Landlord: (1) this Lease and the Term hereof shall wholly cease and terminate, with the same force and effect as though such termination was the date of the expiration of the Term of this Lease, and thereupon, or at any time thereafter, Landlord may re-enter said premises either by force, or otherwise, and have possession of the same and/or may recover possession thereof by summary proceeding, or otherwise (but Tenant shall remain liable to Landlord as hereinafter provided); or (2) Landlord may, without further notice, exercise any remedy available at law or in equity.

 

Section 15.02. In case of any default, event, re-entry, expiration, termination and/or dispossession by summary proceedings, or otherwise, Tenant shall, nevertheless, remain and continue liable to Landlord in a sum equal to all annual minimum rental and additional rent herein reserved for the balance of the Term herein demised as the same may become due and payable pursuant to the provisions of this Lease. Landlord may repair or alter the Demised Premises in such manner as to Landlord may seem necessary or advisable, and/or let or relet the Demised Premises and any and all parts thereof for the whole or any part of the remainder of the original Term hereof or for a longer period, in Landlord’s name, or as the agent of Tenant, and, out of any rent so collected or received, Landlord shall, first, pay to itself, the expense and cost of retaking, repossessing, repairing and/or altering the Demised Premises, and the expense of removing all persons and property therefrom, second, pay to itself, any cost or expense sustained in securing any new tenant or tenants, and third, pay to itself, any balance remaining on account of the liability of Tenant to Landlord for the sum equal to the annual minimum rental and additional rent reserved herein and unpaid by Tenant for the remainder of the Term herein demised. Any entry or re-entry by Landlord, whether had or taken under summary proceedings or otherwise, shall not absolve or discharge

 

	
 
    	
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Tenant from liability hereunder.

 

Section 15.03. Should any rent so collected by Landlord after the payment aforesaid be insufficient fully to pay to Landlord a sum equal to all annual minimum rental and additional rent herein reserved, the balance or deficiency shall be paid by Tenant on the rent days herein specified; that is, upon each of such rent days Tenant shall pay to Landlord the amount of the deficiency then existing and Tenant shall be and remain liable for any such deficiency, and the right of Landlord to recover from Tenant the amount thereof, or a sum equal to the amount of all annual minimum rental and additional rent herein reserved if there shall be no reletting, shall survive the issuance of any dispossessory warrant or other termination hereof.

 

Section 15.04. Suit or suits for the recovery of such deficiency or damage, or for a sum equal to any installment or installments of annual minimum rental or additional rent hereunder, may be brought by Landlord from time to time at Landlord’s election, and nothing herein contained shall be deemed to require Landlord to await the date on which this Lease or the Term hereof would have expired by limitation had there been no such default by Tenant or no such, termination or cancellation.

 

Section 15.05. Tenant hereby expressly waives service of any notice of intention to re-enter subsequent to the giving of the aforesaid notices under Section 15.01 above. Tenant hereby expressly waives any and all right to recover or regain possession of the Demised Premises or to reinstate or to redeem this tenancy or this Lease as is permitted or provided by or under any statute, law, or decision now or hereafter in force and effect.

 

Section 15.06. Tenant shall reimburse Landlord, within five (5) days following written demand, for any reasonable counsel fees or collection charges incurred or expended by Landlord by reason of Tenant’s default in the performance of any provision, covenant, or condition of this Lease and any such amounts, at the option of Landlord, may be recovered in the same action or proceeding forming the basis of the default or in another action or proceeding.

 

Section 15.07. Notwithstanding any other remedy provided for hereunder and without the requirement of notice, except as provided in this Section, if Tenant is not diligently pursuing compliance with any of its obligations hereunder, Landlord shall have the right, at Landlord’s sole option, at anytime in the event of an emergency or otherwise after ten (10) days notice to Tenant, to cure such breach at Tenant’s expense. Tenant shall reimburse Landlord, within three (3) days following demand, as additional rent for all costs and expenses incurred by Landlord in curing such breach, together with interest computed thereon at a rate per annum equal to the sum of the prime rate as then set forth in The Wall Street Journal (eastern edition) plus four percent or the maximum rate permitted by law, whichever shall be the lesser.

 

Section 15.08. Notwithstanding anything contained in this Lease, if Tenant fails to pay any monetary items due hereunder on the date on which the same are due and payable, such unpaid monetary items shall bear interest at a rate per annum equal to the sum of the prime rate as then set forth in The Wall Street Journal (eastern edition) plus four percent or the maximum rate permitted by law, whichever shall be the lesser, from the date such monies were due until the date on which Landlord shall receive payment.

 

Section 15.09. The rights and remedies whether herein or elsewhere provided in this Lease shall be cumulative and the exercise of any one right or remedy shall not preclude the exercise of or act as a waiver of any other right or remedy of Landlord hereunder, or which may be existing at law, or in equity, by statute or otherwise.

 

Section 15.10. Subject to the terms of any Non-Disturbance Agreement between Tenant and the holder of any superior mortgage or superior lease then encumbering the Demised Premises, Tenant covenants and agrees to give the holder of any mortgage encumbering Landlord’s interest in the Demised Premises and/or ground lessor to Landlord of Landlord’s interest in the Demised Premises who has provided Tenant with a Non-Disturbance Agreement notice of any default by

 

	
 
    	
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Landlord under this Lease and such mortgagee and/or ground lessor shall be afforded the right (but shall not have the obligation) to cure any default by Landlord within such reasonable period of time as may be required by such mortgagee and/or ground lessor.

 

ARTICLE 16. WAIVER OF TRIAL BY JURY

 

Section 16.01. It is mutually agreed by and among Landlord, Tenant and any guarantor of the obligations of Tenant hereunder, that the respective parties hereto shall and they hereby do waive trial by jury in any action, proceeding, or counterclaim brought by the parties hereto on any matters whatsoever arising out of or in any way connected with this Lease, the relationship of Landlord and Tenant, Tenant’s use or occupancy of the Demised Premises, and/or any claim of injury or damage, and any emergency, summary or statutory remedy. If Landlord commences any summary proceeding, or any other action for collection of rent or additional rent hereunder, Tenant shall not interpose any counterclaim or cross claim of any nature in any such proceeding or action, nor shall Tenant move to consolidate any such claim with any claim being maintained by Landlord unless in any of such instances Tenant would thereby waive any defense or lose the right to assert any claim Tenant may have if not asserted as a counterclaim in the action brought by Landlord.

 

ARTICLE 17. ACCESS TO PREMISES

 

Section 17.01. Landlord and its designees shall have the right to enter upon the Demised Premises at all times in the event of an emergency and otherwise upon prior notice to Tenant to inspect and examine same, to make repairs, additions, alterations, or improvements to the Demised Premises, the Building within which the Demised Premises are located or any property owned or controlled by Landlord within such Building. Landlord shall permit a Tenant’s representative to be present at the time of any such entry if Tenant so elects. Landlord’s rights of entry as aforesaid, and the taking of all property into and upon the Demised Premises that may be required in connection therewith, shall not be considered an eviction of Tenant, in whole or in part, constructive or otherwise, and Landlord shall not be liable to Tenant for any expense, damage, or loss or interruption of the business of Tenant by reason thereof, and the rent reserved hereunder shall continue without abatement during the period of any such entry and while such repairs, alterations, improvements or additions are being made. Landlord shall not store any property or materials in the Demised Premises without Tenant’s consent, such consent not to be unreasonably withheld, conditioned or delayed. Landlord or Landlord’s designees shall have the right to enter the Demised Premises at all times to show the Demised Premises to prospective purchasers, mortgagees or lessees of the Demised Premises, the Building or the Center. During the six month period prior to the expiration of the Term hereof, Landlord may exhibit the Demised Premises to prospective tenants. Landlord agrees that while exercising the right of entry set forth in this Article 17 for purposes of making repairs, alterations, additions or improvements, Landlord shall use reasonable efforts to avoid interference with the conduct of Tenant’s business or disrupting same.

 

ARTICLE 18. NO WAIVER

 

Section 18.01. No delay or omission of the exercise of any right by either party hereto shall impair any such right or shall be construed as a waiver of any default or as acquiescence therein. One or more waivers of any provision, covenant or condition of this Lease by either party shall not be construed by the other party as a waiver of a subsequent breach of any other or the same provisions, covenant, or condition. No requirements whatsoever of this Lease shall be deemed waived or varied because of either party’s failure or delay in taking advantage of any default, and Landlord’s acceptance of any payment from Tenant with actual or constructive knowledge of any default shall not constitute a waiver of Landlord’s rights in respect to such default, nor of any subsequent or continued breach of any such default or any other requirement of this Lease.

 

	
 
    	
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Section 18.02. No payment by Tenant or receipt and acceptance by Landlord of a lesser amount than the rent or other sum stipulated to be paid or reserved shall be deemed an accord and satisfaction or a modification or waiver of any rights or obligations or liabilities hereunder notwithstanding any statement, written or oral, accompanying such payment, or by way of endorsement or otherwise; and Landlord may accept any such payment whether by check, draft or other means whatsoever without prejudice to Landlord’s right to recover the balance owing, or to pursue any other remedy in this Lease or at law or in equity provided. Landlord may apply such payment to any sums then due and payable by Tenant to Landlord as Landlord shall determine in its sole discretion. Landlord may, at Landlord’s option, accept payment of rent or any other charge hereunder from any person or entity other than the Tenant named herein and the same shall not constitute a recognition by Landlord of, or vest in said person or entity, any rights hereunder.

 

ARTICLE 19. REQUIREMENTS OF LAW; INSURANCE REQUIREMENTS

 

Section 19.01. In Tenant’s performance of its rights and obligations under this Lease, including without limitation, any pre-term right, obligation or entry into the Demised Premises, Tenant covenants and agrees to comply with all laws, orders, and regulations of federal, state, city, county, governmental and municipal authorities, fire insurance rating organizations and fire insurance underwriters, and insurance companies issuing coverage respecting the Demised Premises and Tenant shall make all alterations or installations necessary to comply therewith. Landlord acknowledges that, as part of Landlord’s Work, Landlord shall perform such work, if any necessary to cause the Demised Premises to be in compliance with all applicable laws, including the Americans with Disabilities Act of 1990, as of the date possession of the Demised Premises is delivered to Tenant other than any work necessary with respect to any non-compliance caused by Tenant or any of Tenant’s agents, contractors, employees or servants. Tenant shall secure all permits or approvals, including without limitation a certificate of occupancy, necessary to operate its business within the Demised Premises and shall only operate its business within the Demised Premises in compliance with all laws, orders and regulations of federal, state, city and county, governmental and municipal authorities, fire insurance rating organizations and fire insurance underwriters, and insurance companies issuing coverage respecting the Demised Premises.

 

Section 19.02. Tenant shall not use or occupy the Demised Premises or do or permit anything to be done therein in any manner which shall make it impossible for Landlord and/or Tenant to obtain at standard rates any insurance required or desired, or which will invalidate or increase the cost to Landlord of any insurance.

 

Section 19.03. If, by reason of Tenant’s failure to comply with the provisions of Section 19.01 above, or if, by reason of any act or failure to act of Tenant, its agents, servants, contractors, employees or licensees, or if, by reason of the use of the Demised Premises, the fire insurance rates applicable to the Demised Premises, or of the Building or any other premises in said Building, shall be increased above the rate applicable to the occupancy permitted hereunder, Tenant shall pay to Landlord, within thirty (30) days following demand accompanied by documentation from the insurance carrier evidencing that the increase in question resulted from an act or failure to act of Tenant, its agents, servants, contractors, employees or licensees, or by reason of the use of the Demised Premises, the amount of additional premium for fire insurance payable by reason thereof.

 

Section 19.04. No abatement, diminution, or reduction in annual minimum rental or any sums constituting additional rent shall be claimed by or allowed to Tenant for any inconvenience or interruption, cessation or loss of business caused directly or indirectly, by any present or future laws, ordinances, rules or regulations, requirements or orders of federal, state, county, township or municipal governments or any other lawful authority whatsoever, or by priorities, rationing, or curtailment of labor or materials, or by war, civil commotion, strikes or riots, or any manner or thing resulting therefrom, or by any other cause or causes beyond the reasonable control of Landlord, nor shall this Lease be affected by any such causes.

 

	
 
    	
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ARTICLE 20. SIGNS

 

Section 20.01. Tenant shall not place, install or maintain any sign upon or outside the Demised Premises or in the Center until approved by Landlord, such approval not to be unreasonably withheld; nor shall Tenant place, install or maintain any awning, canopy, aerial, antenna or the like in or upon the Demised Premises, the Building or the Center. Any sign must conform to all applicable rules, regulations, codes and directives of governmental agencies having jurisdiction, and Tenant shall, at its expense, apply for and obtain all permits necessary in connection therewith. If Landlord shall submit to Tenant a general sign criteria or specification, Tenant shall comply therewith. Tenant shall be solely responsible for all maintenance and repairs respecting its signs.

 

ARTICLE 21. TENANT’S ADDITIONAL COVENANTS

 

Section 21.01. Tenant covenants and agrees for itself its officers, employees, contractors, agents, servants, licensees, invitees, subtenants, concessionaires, and all others doing business with Tenant (hereinafter for the purposes of this Article, collectively referred to as Tenant”) that:

 

(a) there is no clause (a) to this Section 21.01;

 

(b) Tenant shall not encumber or obstruct the Center or sidewalks in and about the Demised Premises;

 

(c) Tenant shall not display, advertise or sell its products or goods in the Common Areas of the Center or sidewalk in and about the Demised Premises;

 

(d) other than regular mail and hand held small packages, Tenant shall not permit any deliveries to be made through the front entrance of the Demised Premises unless there is no access thereto otherwise;

 

(e) Tenant shall not cause or permit trash, refuse, dirt or other rubbish to accumulate on the Demised Premises or in the Center and shall cause same to be placed in appropriate receptacles and promptly removed;

 

(f) Tenant shall not injure, overload, deface, commit waste or otherwise harm the Demised Premises or any part thereof;

 

(g) Tenant shall not commit any nuisance;

 

(h) Tenant shall not permit the emission from the Demised Premises of any objectionable noise or odor,

 

(i) Tenant shall not bum any trash, rubbish, dirt or refuse within the Center;

 

(j) Tenant shall use the Demised Premises only for business and commercial purposes (subject to the provisions of Article 2 hereof) and Tenant shall not use, allow or permit any industrial, manufacturing or processing activities within the Demised Premises, except as may be expressly permitted by Section 2.01 of this Lease;

 

(k) Tenant shall conform and comply with all nondiscriminatory and uniformly applicable rules and regulations which Landlord may promulgate for the management and use of the Center;

 

(l) Tenant shall not use any advertising medium that may constitute a nuisance, such as loudspeakers, sound amplifiers or phonographs, in a manner to be heard outside the Demised Premises;

 

	
 
    	
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(m) Tenant shall cooperate, at no cost to Tenant, with Landlord in promoting the use of the name of the Center;

 

(n) Tenant shall not place a load on any floor of the Demised Premises exceeding one hundred twenty five pounds per square foot (live load);

 

(o) Tenant shall not install, operate or maintain in the Demised Premises any electrical equipment which will overload the electrical system therein or any part thereof beyond the capacity for proper and safe operation, as determined by Landlord, in relation to the overall system and requirements for electricity in the Building (Landlord represents that the electrical system currently serving the Demised Premises has a capacity of at least 200 amps at 480 volts); and

 

(p) No portion of the Demised Premises shall be used or occupied for the sale, dispensing, storage or display of food, foodstuffs, or food products for consumption on or off the Demised Premises, provided that the foregoing shall not prohibit the use and occupancy of the Demised Premises as permitted by Section 2.01 hereof.

 

ARTICLE 22. EASEMENTS FOR UTILITIES

 

Section 22.01. Landlord or its designee shall have the right and Tenant shall permit Landlord or its designee to erect, use, maintain and repair pipes, cables, conduits, plumbing, vents and wires in, to and through the Demised Premises as and to the extent that Landlord may now or hereafter deem necessary or appropriate for the use or proper operation and maintenance of the Demised Premises, or the Building or any other portion of the Center, provided that any pipes, cables, conduits, plumbing, vents and wires installed by Landlord or its designee in the office area of the Demised Premises pursuant to this Section 22.01 shall be concealed within the walls, floor or ceiling of said office area. Landlord’s rights under this Article shall be exercised, as far as practicable, in such manner as to avoid (i) unreasonable interference with Tenant’s occupancy of the Demised Premises, (ii) any unreasonable impairment of Tenant’s decorations, layout or use of the Demised Premises, (iii) diminishment of the Demised Premises (other than a de minimis amount) and (iv) reduction of the ceiling height. In the event Landlord shall exercise such rights in a manner so as to cause a permanent loss of any rentable square footage within the Demised Premises (other than a de minimis amount), Tenant’s minimum rent obligation and Tenant’s proportionate share of real estate taxes and common area charges shall all be proportionately reduced. Any work performed in the Demised Premises pursuant to Landlord’s rights under this Article 22 shall be performed, to the extent practicable, during such hours and in such a manner so as not to interfere with the conduct of Tenant’s business and to safeguard Tenant’s property (but nothing herein shall obligate Landlord to use overtime or premium pay labor). Following completion of any of the foregoing work, Landlord shall promptly repair and restore the Demised Premises to as near as possible the condition existing prior to the performance of such work.

 

ARTICLE 23. CONSENTS AND APPROVALS

 

Section 23.01. With respect to any provision of this Lease providing that Landlord shall not unreasonably withhold or unreasonably delay any consent or any approval, except in the case where Landlord has withheld its consent in bad faith, Tenant shall not be entitled to make, nor shall Tenant make, any claim for, and Tenant hereby waives any claim for money damages; nor shall Tenant claim any money damages by way of setoff, counterclaim or defense, based upon any claim or assertion by Tenant that Landlord has unreasonably withheld or unreasonably delayed any consent or approval; but Tenant’s sole remedy shall be an action or proceeding to enforce any such provision, or for specific performance, injunction or declaratory judgment.

 

	
 
    	
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THERE IS NO ARTICLE 24 TO THIS LEASE.

 

ARTICLE 25. END OF TERM HOLDOVER

 

Section 25.01. If the last day of the Term falls on a Sunday, or legal holiday, this Lease shall expire on the business day immediately following. Upon the expiration or other termination of the Term of this Lease, Tenant shall quit and surrender to Landlord the Demised Premises, together with all buildings and improvements (subject to the provisions of Section 6.01 above) thereon, “broom-clean” and in good order and condition, ordinary wear and tear and damage by the elements and casualty excepted, and Tenant shall thereupon remove all property of Tenant and, failing to do so, Landlord may cause all of the said property to be removed, stored and/or disposed of at the expense of Tenant. Tenant shall pay all costs and expenses thereby incurred. Any property not so removed shall be deemed to have been abandoned by Tenant and may be retained or disposed of by Landlord as Landlord, in its sole discretion, shall determine and Tenant hereby releases Landlord from all claims for loss or damage to such property arising out of such retention or disposition thereof. Tenant’s obligations under this Article shall survive the expiration or other termination of the Term.

 

Section 25.02. If Tenant remains in possession of the Demised Premises at the expiration or earlier termination of the Term hereof, Tenant, at Landlord’s option, shall be deemed to be occupying the Demised Premises as a tenant from month to month, at a monthly rental equal to the greater of (i) one and one-half the sum of the monthly installment of annual minimum rent payable during the last month of the Term hereof or (ii) the then prevailing market rate rent, as determined by Landlord in its sole and absolute discretion, plus all additional rent coming due hereunder. Acceptance by Landlord of rent after the expiration or earlier termination of the Term hereof shall not constitute a consent to a month-to-month tenancy or result in a renewal. In the event of such holdover, Tenant’s occupancy of the Demised Premises, except as aforesaid, shall be subject to all other conditions, provisions and obligations of this Lease, but only insofar as the same are applicable to a month to month tenancy. Such month to month tenancy shall be terminable by Landlord upon one (1) month’s notice to Tenant, and if Landlord shall give such notice, Tenant shall quit and surrender the Demised Premises to Landlord as above provided. In the event that (a) Tenant shall remain in possession of the Demised Premises at the expiration or earlier termination of the Term hereof and Landlord shall not have elected to deem Tenant to be occupying the Demised Premises as a tenant from month-to-month or (b) Landlord shall terminate any month-to-month tenancy of the Demised Premises and Tenant shall fail to quit and surrender the Demised Premises to Landlord upon the termination date as above provided, then, in either such event, Tenant shall be liable to Landlord for all losses, damages, claims, costs and/or expenses incurred by Landlord by reason of Tenant’s failure to deliver timely possession of the Demised Premises to Landlord.

 

Section 25.03. Notwithstanding anything to the contrary contained in this Lease, if Landlord shall be unable to provide possession of the Demised Premises because of the holding-over or retention of possession of any prior tenant, undertenant or occupants, or for any other reason whatsoever, Landlord shall not be subject to any liability for the failure to give possession on the date herein provided, if any, and, except as otherwise expressly set forth in this Lease, the validity of this Lease shall not be impaired under such circumstances, but the Term shall be extended proportionately until after Landlord shall have given Tenant written notice that the Demised Premises are ready for Tenant’s occupancy. If permission is given to Tenant to enter into possession of the Demised Premises or to occupy premises other than the Demised Premises prior to the date specified as the commencement of the Term, Tenant covenants and agrees that such occupancy shall be deemed to be under all of the terms, covenants, conditions and provisions of this Lease, except, in the case where such occupancy is for the purpose of preparing the Demised Premises for the conduct of Tenant’s business and not the conduct of Tenant’s business, no rent shall be due for such occupancy.

 

	
 
    	
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ARTICLE 26. AUTHORITY TO EXECUTE

 

Section 26.01. Landlord and Tenant do hereby respectively represent to the other that it has the capacity to enter into this Agreement.

 

ARTICLE 27. NOTICES

 

Section 27.01. All notices to be given pursuant to this Lease shall be in writing and sent by prepaid certified or registered U.S. mail, return receipt requested, or by a recognized overnight courier service which requires acknowledgment of receipt of delivery from addressee, to the address of the parties below specified or at such other address as may be given by written notice in the manner prescribed in this paragraph. Landlord’s address for notice shall be c/o National Realty & Development Corp., 3 Manhattanville Road, Purchase, New York 10577. Tenant’s address for notices given prior to the Commencement Date shall be the address first set forth above for Tenant Tenant’s address for notices given on or subsequent to the Commencement Date shall be the address of the Demised Premises. Copies of any notices of default and/or termination given to Tenant shall also be delivered to Paul, Hastings, Janofsky & Walker LLP, 75 East 55th Street, New York, New York 10022 Attention: Neil A. Torpey, Esq.. Notice shall be deemed to be given upon delivery to the U.S. Postal Service or recognized overnight courier service. Unless Landlord shall otherwise inform Tenant in writing to the contrary, any notice given to Tenant by National Realty & Development Corp. shall, for the purposes of this Lease, be deemed to be a notice given to Tenant by Landlord.

 

ARTICLE 28. BROKER

 

Section 28.01. Landlord and Tenant each covenants, warrants and represents to the other that it has dealt with no broker except CB Richard Ellis, Inc., 70 Wood Avenue South, Iselin, New Jersey 08830 (“CB ELLIS”) respecting this Lease and that no conversations, correspondence or negotiations were had by it with any broker except with said CB ELLIS concerning Tenant’s renting or leasing of the Demised Premises. Tenant shall hold Landlord and National Realty & Development Corp. and Landlord shall hold Tenant harmless and defend (by counsel satisfactory to such party) against any claims for a brokerage commission arising out of any conversations, correspondence or negotiations had by the indemnifying party with any broker except said CB ELLIS respecting this Lease and/or concerning Tenant’s renting or leasing the Demised Premises. Landlord shall pay any commissions owing to said CB ELLIS in accordance with separate agreement.

 

ARTICLE 29. MEMORANDUM OF LEASE

 

Section 29.01. Tenant agrees not to record this Lease. The parties agree, upon request of either, to execute, in recordable form, a short form lease entitled “Memorandum of Lease”, it being the intention of the parties that this Lease will not be recorded, but only a memorandum thereof. Such short form lease shall contain those provisions of this Lease as shall be desired in the reasonable discretion of counsel for the parties hereto, provided that in no event shall such short form lease contain any provisions relevant to the annual minimum rent and/or additional rent payable under this Lease. The parties hereto agree that in the event a short form lease shall be recorded with respect to this Lease, then, upon Landlord’s request made any time after the expiration or sooner termination of this Lease, Tenant shall execute a release of such short form lease so as to release such short form lease from record upon the expiration or sooner termination of the term of this Lease (and Tenant’s obligation to execute such a release shall survive the expiration or sooner termination of the term of this Lease).

 

	
 
    	
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ARTICLE 30. AIR AND WATER POLLUTION

 

Section 30.01. Tenant hereby indemnifies and saves Landlord harmless against any claim, damage, liability, costs, penalties or fines which the Landlord may suffer as a result of air, land or water pollution caused by Tenant in its use or occupancy or manner of use or occupancy of the Demised Premises or in its storage, handling, possession, transportation and/or disposal of any Hazardous Waste or Hazardous Substance (as such terms are hereafter defined) within or about the Demised Premises. Tenant covenants and agrees to notify Landlord immediately of any claim or notice served upon it with respect to any such claim that Tenant is causing air, land or water pollution; and Tenant, in any event, will take immediate steps to halt, remedy and cure any pollution of air, land or water caused by Tenant by its use of the Demised Premises, at its sole cost and expense.

 

Section 30.02. (a) Tenant shall comply with all state and federal environmental laws, including the Spill Compensation and Control Act (“SCCA”) (N.J.S.A. 58:10-23.11 et seq.) and Industrial Site Recovery Act (“ISRA”) (N.J.SA. 13:lK-6 et seq.) as the same may have been or may hereafter be amended (collectively, the “Environmental Statutes”) as the same may relate to Tenant’s use and occupancy or manner of use and occupancy of the Demised Premises or any act or failure to act of Tenant. Tenant shall supply Landlord within ten (10) business days of demand with any information Landlord may require in order to enable Landlord to comply with the Environmental Statutes, including, without limitation, ISRA, whether upon the transfer of title or closing of operations at the Demised Premises, or for any reason whatsoever.

 

Section 30.02. (b) Tenant shall not use the Demised Premises for the purpose of refining, producing, storing, handling, transferring, processing or transporting said “Hazardous Substances”, as such term is defined in N.J.S.A. 5B:10-23.11b(k) of the New Jersey Spill Compensation and Control Act (N.J.S.A. 58:10-23.11 et seq.) in a manner which is in violation of applicable law.

 

Section 30.02. (c) Tenant shall not use the Demised Premises to generate, manufacture, refine, transport, treat, store, handle or dispose of “Hazardous Substances”, or “Hazardous Wastes”, as such terms are defined in N.J.A.C. 7:1-3.3 in a manner which is in violation of applicable law. In no event shall Tenant dispose of any Hazardous Substances or Hazardous Wastes on, in or about the Demised Premises, the Building or the Center. Tenant shall dispose of all Hazardous Substances and Hazardous Wastes generated, manufactured, refined, treated, stored, handled or used in or about the Demised Premises in compliance with all applicable laws. Tenant shall make and maintain all manifests, and other books and records required by law to be kept by Tenant with respect to any Hazardous Substance and Hazardous Waste generated, manufactured, refined, treated, stored, handled or used in or about the Demised Premises and the disposal thereof and to the extent required by applicable law. Tenant shall make and maintain manifests setting forth a record of the disposal of all such Hazardous Substances and Hazardous Wastes, which record shall include the type and quantity of all Hazardous Substances and Hazardous Wastes disposed of by Tenant, the date of disposal, the place at which such were disposed and the names and addresses of any persons or entities transporting the same from the Demised Premises. All such manifests, books and records shall be kept at the Demised Premises and shall be made available for viewing and copying by Landlord and its agents upon at least twenty four hours prior request. Tenant shall permit Landlord and its designees access to the Demised Premises for purposes of inspecting the same for environmental concerns upon Landlord’s request therefor. Tenant shall promptly comply with all recommendations made by Landlord’s environmental consultant or by any environmental consultant to any of Landlord’s lender(s) as to any environmental matters, including without limitation any pertaining to the storage and disposal of Hazardous Substances and/or Hazardous Materials if requested by Landlord in connection with any financing of Landlord’s interest in the Demised Premises or any transfer of Landlord’s interest in the Demised Premises. Tenant shall remove all Hazardous Substances and Hazardous Materials present on or about the Demised Premises, the Building and/or the Center by reason of an act or omission of Tenant, any person or entity claiming by through or under Tenant, or any of Tenant’s or such person’s or entity’s contractors, employees,

 

	
 
    	
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agents servants and/or invitees from the Demised Premises, the Building and the Center prior to the expiration or sooner termination of the term of this Lease so that upon surrender of possession of the Demised Premises to Landlord, the Demised Premises, the Building and the Center are free of any and all Hazardous Substances and Hazardous Materials present, at any time, on or about the Demised Premises the Building and/or the Center by reason of an act or omission of Tenant, any person or entity claiming by through or under Tenant, or any of Tenant’s or such person’s or entity’s contractors, employees, agents, servants and/or invitees; any such removal shall be performed m accordance with all applicable laws.

 

Section 30.02. (d) Tenant shall not cause or permit to exist, as a result of an intentional or unintentional action or omission on its part, a releasing, spilling, leaking, pumping, emitting, pouring, emptying or dumping of a “Hazardous Substance”, as such tern is defined in N.J.SA. 58:10-23.llb(k) into waters of the State of New Jersey or onto the lands from which it might flow or drain into said waters, or into waters outside the jurisdiction of the State of New Jersey where damage may result to the lands, waters, fish, shellfish, wildlife, biota, air and other resources owned, managed held in trust or otherwise controlled by the State of New Jersey. Tenant shall not cause or permit to exist, as a result of an intentional or unintentional action or omission on its part, a releasing, spilling, leaking, pumping, emitting, pouring, emptying or dumping of any Hazardous Substance or Hazardous Material or Hazardous Waste (as such terms may be defined m any Environmental Statute).

 

Section 30.02. (e) Tenant shall not use the Demised Premises as a “Major Facility”, as such term is defined in N.J.S.A. 58:10-23.1b(l).

 

Section 30.02 (f) Tenant shall not install nor permit to be installed in the Demised Premises friable asbestos or any substance containing asbestos and deemed hazardous by federal or state regulations respecting such material.

 

Section 30.03. Tenant represents that Tenant has not received a summons, citation, directive, letter or other communication, written or oral, from the New Jersey Department of Environmental Protection concerning any intentional or unintentional action or omission on Tenant’s part resulting in the releasing, spilling, leaking, pumping, pouring, emitting, emptying or dumping of “Hazardous Substances”, as such term is defined in N.J.S A. 58:10-23.llb(k), into the waters or onto the lands of the State of New Jersey, or into the waters outside the jurisdiction of the State of New Jersey resulting in damage to the lands, waters, fish, shellfish, wildlife, biota, air and other resources owned, managed, held in trust or otherwise controlled by the State of New Jersey.

 

Section 30.04. (a) In the event that Tenant does not, following notice thereof to Tenant, expeditiously proceed with any compliance required by any State or Federal authority under the Environmental Statutes or any recommendations of Landlord’s environmental consultant or by any environmental consultant to any of Landlord’s lender(s) with which Tenant is obligated to comply by this Article 30, Landlord may elect to undertake such compliance in order to protect its interest in the Demised Premises. Any monies expended by Landlord in efforts to comply with any environmental statute (including but not limited to: the costs of hiring consultants, undertaking sampling and testing, performing any cleanup necessary or useful in the compliance process and attorney’s fees), together with interest at the maximum rate permitted by law, will be added to and payable with the next payment of annual minimum rental due from Tenant, or will be payable on demand of Landlord.

 

Section 30.04. (b) Within ten (10) days of written request, Tenant will provide Landlord with (i) all information as to the use or manner of use of the Demised Premises by Tenant, and (ii) if required by law on account of any act of Tenant or by reason of Tenant’s use or manner of use of the Demised Premises, an environmental audit of the Demised Premises which is designed to describe any materials on the Demised Premises which would require a filing and/or any disclosure under the Environmental Statutes in the event of any transfer or closure, or which would require remedial action under any other Environmental Statutes. If Landlord shall perform any environmental audit of the Demised Premises on account of any act of Landlord, then Tenant shall

 

	
 
    	
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co-operate with Landlord in the making of such audit, which co-operation shall include, without limitation, permitting Landlord and its designees such access to the Demised Premises as may be requested of Tenant in connection with the making of such audit and providing Landlord and its designees with such books, records and information as may be requested of Tenant in connection with the making of such audit. Tenant shall provide and execute such certificates and other documents providing information as to Tenant’s use and/or manner of use of the Demised Premises as may be required by law, including, without limitation, any so required in connection with the transfer or financing of Landlord’s interest in the Demised Premises. Tenant shall make all filings required by law, including without limitation ISRA, in connection with any sublease of the Demised Premises, or any portion thereof, in connection with any assignment of Tenant’s interest under this Lease, in connection with Tenant’s closing for business or in connection with the expiration or sooner termination of this Lease and the surrender of possession of the Demised Premises to Landlord.

 

Section 30.04. (c) In the event that Tenant receives notice from the Department of Environmental Protection or any other governmental authority or bureau having or asserting jurisdiction thereover under SCCA of a discharge on or about the Demised Premises, or any other notice of violation of the Environmental Statutes or any alleged or claimed violation thereof Tenant will immediately send a copy of such notice to Landlord and Tenant will promptly proceed to remedy the condition described in the notice. Tenant shall take all action necessary to ensure that the SCCA administrator does not spend Spill Fund monies to clean up the site. In the event that the SCCA administrator should spend money cleaning up property owned by Landlord due to Tenant’s use or occupancy or manner of use or occupancy of the Demised Premises or the act or failure to act of Tenant, and/or a hen is imposed on the Demised Premises or any portion of the parcel of which it forms a part or any property of Landlord, Landlord may take such actions as it deems necessary to remove such lien, including satisfaction thereof, or may require it to be bonded by Tenant, and Tenant agrees to defend, indemnify and hold Landlord free and harmless from and against all loss, costs, damage and expense (including attorney’s fees and costs) Landlord may sustain by reason of the assertion against Landlord by any party of any claim in connection therewith. Landlord may demand such security, in amounts and types which it deems appropriate in its sole discretion, for the purpose of protecting its property from any such lien or to guarantee cleanup.

 

Section 30.05. As between Landlord and Tenant, Landlord shall be responsible for any Hazardous Material in the Demised Premises, Building or Center except to the extent present thereon by reason of an act or omission of Tenant, any person or entity claiming by through or under Tenant, or any of Tenant’s or such person’s or entity’s contractors, employees, agents, servants and/or invitees. Landlord hereby represents and warrants to Tenant that, as of the date of this Lease, to Landlord’s actual knowledge, the Demised Premises contain no Hazardous Material and are currently in compliance with all Environmental Statutes to the extent applicable thereto. In the event that at any point in time the Demised Premises are determined to contain any Hazardous Material (other than any present by reason of an act or omission of Tenant, any person or entity claiming by through or under Tenant, or any of Tenant’s or such person’s or entity’s contractors, employees, agents, servants and/or invitees) and the removal, encapsulation or abatement of the same shall be required by law, then Landlord shall remove, encapsulate or abate, or cause the removal, encapsulation or abatement, of such Hazardous Material to the extent required by law, at no cost to Tenant. If Landlord does not perform, or cause the performance of, such removal, encapsulation or abatement, whichever shall be legally required, within the time period provided by law, then Tenant shall have the right, upon ten (10) days notice to Landlord to perform such removal, encapsulation or abatement to the extent legally required and the reasonable out-of-pocket cost incurred by Tenant in connection with such removal, encapsulation or abatement shall be re-imbursed by Landlord to Tenant within thirty (30) days after receipt by Landlord from Tenant of an invoice, accompanied by supporting documentation, evidencing such costs. If the law shall permit any of removal, encapsulation or abatement of the Hazardous Material in question, the party performing the same pursuant to this Section 30.05 shall have the choice of removing, encapsulating or abating such Hazardous Material. Any removal, encapsulation or abatement performed pursuant to this Section 30.05 shall be performed in a manner which complies with all applicable laws.

 

	
 
    	
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Section 30.06. Landlord’s and Tenant’s obligations under this Article 30 shall survive the expiration of the Term.

 

ARTICLE 31. METHOD OF CALCULATION

 

Section 31.01. (a) The parties hereto acknowledge that the proportionate share payable by Tenant pursuant to Section 7.03 and Section 14.01 shall be determined by the type of use to which the Demised Premises is to be put - i.e., processing or non-office space or office space, thereby creating a weighted fraction representing Tenant’s proportionate share. The numerator of such fraction shall be the sum of (a) the gross leasable area of processing or non-office space within the Demised Premises; plus, (b) two (2) times the gross leasable area of office space within the Demised Premises. The denominator of such fraction shall be the sum of all the numerators, including the numerator of Tenant, as calculated in the foregoing manner for each and every space or division thereof within the Building or buildings upon Lot No. 47.07, which, as of the date hereof, is 137,433 square feet as to all buildings, including the Building, upon Lot No. 47.07 and 54,235 square feet as to the Building. Notwithstanding the foregoing provisions of this Article, in the event the obligations of Tenant under either Section 7.03 and/or Article 14 of this Lease are specifically identifiable separate charges relating to Tenant, the Building and/or the Demised Premises, then, and in such event the obligations of Tenant (including Tenant’s proportionate share thereof) under this Lease may, at Landlord’s option, be measured and payable in accordance with such separate and specifically identifiable charge. For purposes of this Lease, as of the date hereof 14,213 square feet is deemed to be leased as office space and 6,891 square feet is deemed to be leased as non-office or processing space, so that, as of the date hereof, Tenant’s proportionate share for purposes of Section 7.03 is 65.1185% (as the charges for which Tenant is to pay its proportionate share under Section 7.03 relate solely to the Building) and Tenant’s proportionate share for purposes of Section 14.01 is 25.6976%. In the event Tenant shall hereafter make any alterations to the Demised Premises or any other tenant of premises within Lot No. 47.07 shall make any alterations to their respective premises which result in an increase or decrease in the amount of office space of the Demised Premises or such other premises, Landlord and Tenant hereby covenant and agree to execute a modification of lease agreement modifying this Article 31 to evidence the resulting increase or decrease in office space and/or modification in such denominator(s). The foregoing is not to be construed in any manner so as to relieve Tenant of its obligations pursuant to Section 6.01 hereof.

 

Section 31.01. (b) Landlord shall have the right at any time during the Term or any extension term hereof, and Tenant hereby consents thereto, to subdivide Lot No. 47.07 into such additional lot or lots as Landlord may in its sole discretion elect and/or to expand Lot No. 47.07 as Landlord may in its sole discretion elect, provided that the whole of the Building shall remain entirely within one such subdivision. Notwithstanding anything contained in this Lease to the contrary, in the event of any such subdivision or expansion of Lot No. 47.07 by Landlord then, at Landlord’s option, (i) references in this Lease to Lot No. 47.07 may be deemed to be to the original (pre-subdivision or pre-expansion) Lot No. 47.07 or any portion(s) thereof of which the Demised Premises forms a part, and (ii) in calculating Tenant’s proportionate share(s), Landlord may use as the denominator of the fractions) representing Tenant’s proportionate share(s) the building(s) or portions thereof within said original Lot No. 47.07 or any portion(s) thereof of which the Demised Premises forms a part. In the event of such subdivision or expansion, Tenant agrees to execute an agreement in recordable form setting forth the description of Lot No. 47.07 as so subdivided or expanded and as renamed and/or renumbered.

 

	
 
    	
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THERE IS NO ARTICLE 32 TO THIS LEASE.

 

THERE IS NO ARTICLE 33 TO THIS LEASE.

 

ARTICLE 34. RELATIONSHIP OF PARTIES

 

Section 34.01. Nothing herein contained shall be deemed or construed by the parties hereto, nor by any third party, as constituting the Landlord a partner of Tenant in the conduct of Tenant’s business, or as creating the relationship of principal and agent or joint venturers between the parties hereto, it being the intention of the parties hereto that the relationship between them is and shall at all times be and remain that of Landlord and Tenant only.

 

ARTICLE 35. CAPTIONS

 

Section 35.01. The Article captions contained herein are for convenience only and do not define, limit, or construe the contents of such Articles and are in no way to be construed as a part of this Lease.

 

ARTICLE 36. DEFINITIONS

 

Section 36.01. Words of any gender used in this Lease shall be held to include any other gender, and words in the singular number shall be held to include the plural, when the sense requires.

 

Section 36.02. If any provision of this Lease or the application thereof to any person or circumstances shall, to any extent, be invalid or unenforceable, the remainder of this Lease, or the application of such provision to persons or circumstances other than those as to which it is held invalid or unenforceable, shall not be affected thereby and each provision of this Lease shall be valid and be enforced to the fullest extent permitted by law.

 

ARTICLE 37. ENTIRE AGREEMENT

 

Section 37.01. This instrument of Lease contains the entire and only agreement between the parties concerning the Demised Premises. No prior oral or written statements or representation, if any, of any party hereto or any representative of a party hereto, not contained in this instrument, shall have any force or effect. This Lease shall not be modified in any way, except by a writing executed by Landlord and Tenant. No oral agreement or representations shall be deemed to constitute a lease other than this agreement. This agreement shall not be binding until it shall have been executed and delivered by Landlord and Tenant. The submission of this Lease to Tenant prior to its execution by Landlord shall not be an offer to lease.

 

ARTICLE 38. SUCCESSORS IN INTEREST

 

Section 38.01. All provisions herein contained shall bind and inure to the benefit of the respective parties hereto, their heirs, personal representatives, successors and assigns, as the case may be. In the event Landlord or any successor-lessor (owner) of the Demised Premises shall convey or otherwise dispose of the Demised Premises and/or the Center and/or the Tax Lot of which the Demised Premises forms a part, all liabilities and obligations of Landlord or such successor-lessor (owner), as Landlord under this Lease shall terminate upon such conveyance or disposal except as to any accruing prior to such conveyance or disposal which are not assumed by the transferee.

 

Section 38.02. If Landlord, or any successor in interest to Landlord, shall be an individual, joint venture, tenancy-in-common, trustee, trust, estate, executor, conservator, personal representative, limited liability company, limited liability partnership, partnership, general or limited,

 

	
 
    	
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firm, company or corporation, there shall be no personal liability on the part of such individual, trustee, executor, conservator or personal representative or on the part of any members, managers, partners, directors, officers and/or shareholders of such joint venture, tenancy-in-common, trustee, trust, estate, executor, conservator, personal representative, limited liability company, limited liability partnership, partnership, general or limited, firm, company or corporation or on the part of such joint venture, tenancy-in-common, trustee, trust, estate, executor, personal representative, limited liability company, limited liability partnership, partnership, general or limited, firm, company, or corporation as to any of the provisions, covenants or conditions of this Lease. Tenant hereby acknowledges that it shall look solely to the real property interest of Landlord in Lot No. 47.07 (or, in the event of a subdivision of said Lot, such subdivided portion thereof which includes the Demised Premises) for the satisfaction or assertion of any claims, rights and remedies of Tenant against Landlord, in the event of breach by Landlord of any of the terms, provisions, covenants or conditions of this Lease.

 

ARTICLE 39. SECURITY

 

Section 39.01. Tenant has deposited with Landlord the sum of ONE HUNDRED THOUSAND and 00/100 ($100,000.00) DOLLARS as security for the faithful performance and observance by Tenant of the terms, provisions, covenants and conditions of this Lease in cash and/or in the form of a Letter of Credit (the “security deposit”) as security for the faithful performance and observance by Tenant of the terms, provisions and conditions of this Lease, which Letter of Credit, if any, shall comply with the following provisions. Said Letter of Credit shall be issued by a “money center” bank, shall name National Realty & Development Corp. as sole beneficiary, shall be presentable for payment at the counters of a branch of the issuing bank in the Metropolitan New York area or by mail at a specific branch of the issuing bank in the continental United States and shall be delivered to Landlord on or prior to the date hereof. The Letter of Credit shall expire on the Expiration Date (as the same may be extended in accordance with Article 40 below). The form of such Letter of Credit and the issuing bank shall be subject to the approval of Landlord and its counsel. The Letter of Credit shall provide that upon any default by Tenant the beneficiary shall be entitled to draw upon the Letter of Credit to the extent of the full amount thereof immediately upon delivery to the issuing bank of a sight draft. If for any reason such Letter of Credit shall expire without Landlord having drawn thereon for any reason, including, without limitation, the inadvertent failure to do so by Landlord, Tenant shall thereupon deliver to Landlord a replacement of such Letter of Credit or a cash deposit to bring the security deposit required hereunder to the appropriate balance. Said Letter of Credit shall specifically provide that Landlord will receive not less than forty-five (45) days written notice of the election of the issuing bank to not renew the same. Whether or not Landlord shall receive notice of cancellation or non-renewal of the Letter of Credit, Tenant shall deliver to Landlord a replacement of such Letter of Credit prior to that date which is thirty (30) days prior to the cancellation date, expiration date or non-renewal date of the Letter of Credit. Tenant’s failure to deliver a replacement Letter of Credit as aforesaid shall be deemed a default under this Lease, and without further notice, Landlord shall be entitled to draw upon the expiring Letter of Credit in the entire amount thereof and retain the sums drawn as a cash security deposit (and apply the same in accordance with this Article 39). In the event Tenant defaults in respect of any of the provisions, covenants and conditions of this Lease, including, but not limited to, the payment of annual minimum rental and additional rent, Landlord may, from time to time, draw upon the security deposit and use, apply, or retain the whole or any part of the security so deposited to the extent required for the payment of any annual minimum rental and additional rent or any other sum as to which Tenant is in default or for any sum which Landlord may expend or may be required to expend by reason of Tenant’s default in respect of any of the provisions, covenants and conditions of this Lease, including, but not limited to, counsel fees and other collection charges, or of any damages or deficiency in the re-letting, repairing or altering of the Demised Premises, whether such damages or deficiency accrued before or after summary proceedings or other re-entry by Landlord. In the event that Tenant shall fully and faithfully comply with all the provisions, covenants and conditions of this Lease, the Letter of Credit, if any, by its terms shall be deemed null and void and the security deposit shall be returned to Tenant, without interest, promptly after the expiration of the Lease, and after delivery of entire possession of the Demised Premises to Landlord.

 

	
 
    	
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35

 

Upon the return of an undrawn upon and expired Letter of Credit by Landlord to Tenant, Landlord shall deliver to Tenant a letter authorizing the issuing bank to accept a surrender of the Letter of Credit. If, due to Tenant’s default hereunder, Landlord shall be entitled to apply or retain any portion of the sum available under the security deposit, Tenant shall within five (5) business days following demand, secure for the sole benefit of Landlord, a new or additional Letter of Credit or deliver to Landlord a cash security deposit in such amount as may be necessary to restore the security deposit to the amount set forth in the first sentence of this Article. Tenant shall not assign or encumber the security deposited hereunder and neither Landlord or its successors or assigns shall be bound by any such assignment or encumbrance. In the absence of evidence satisfactory to Landlord of any assignment of the right to receive the security, or the remaining portion thereof, Landlord may return the security to the original tenant regardless of any number of assignments of the Lease itself. In the event of a sale of the Demised Premises or larger premises of which the Demised Premises form a part, Landlord shall have the right to transfer the cash security and the beneficiary rights under any Letter of Credit to the purchaser for the benefit of Tenant and Landlord, after giving notice to Tenant, shall be deemed released by Tenant from all liability for the return of such security and Tenant shall look solely to the new owner for the return thereof. Tenant shall, upon request, deliver confirmation of said transfer of beneficiary rights and a replacement Letter of Credit naming the transferee as beneficiary if necessary or if required. No holder of any mortgage upon the Demised Premises or the larger property of which the Demised Premises forms a part shall be responsible in connection with the security deposited hereunder unless such mortgagee shall have in fact received such security or been named beneficiary thereof and acknowledged such receipt or beneficiary status in writing to Tenant. In the event of a foreclosure of the Demised Premises or of the larger premises of which the Demised Premises form a part, Tenant shall, on demand of mortgagee, reissue the Letter of Credit in compliance with this Article 39 except naming the mortgagee, or such other party as may be designated by mortgagee, as the sole beneficiary.

 

ARTICLE 40. EXTENSION OPTION

 

Section 40.01. Tenant shall have the option, provided Tenant is not in default hereunder beyond applicable notice and cure periods, to extend the Term for ONE (1) successive additional term of FIVE (5) years, upon the same terms and conditions as provided herein, except that the annual minimum rental during said extension period shall be as provided below, and except that Tenant shall have no further extension options. Tenant shall give written notice to Landlord not less than nine (9) months prior to the last day of the initial term of its election to extend the Term hereof, or such option shall be deemed waived. If Tenant shall exercise such extension option, the parties will, at the request of either, execute an agreement in form for recording, evidencing such extension. If Tenant shall exercise such extension option, all references in this Lease to the Term hereof shall be deemed to mean the term as so extended, except where expressly otherwise provided.

 

Section 40.02. As of the first day of the extension term (“adjustment date”), the annual minimum rental shall be adjusted by multiplying the annual minimum rental payable hereunder during the last Lease Year of the prior Term, times a fraction having as its numerator the “Index” (hereinbelow defined) as of the adjustment date and as its denominator the Index in effect upon the Commencement Date; provided, however, the annual minimum rental payable subsequent to the adjustment date shall not be less than twenty-five (25%) percent greater than the annual minimum rental payable during the last preceding Lease Year of the prior Term.

 

Section 40.03. The “Index” shall be defined as the United States Department of Labor, Bureau of Labor Statistics, “Consumer Price Index-All Urban Consumers - (CPI-U) N.Y., N. Y. - Northeastern NJ. (1982-84=100)”. If publication of such Index shall be discontinued, the adjustments in the annual minimum rental provided for in this Lease shall thereafter be computed on the basis of such other official price index as shall be most nearly comparable thereto, and

 

	
 
    	
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36

 

conversion tables, if any, issued upon the promulgation of such other official index, are to be used where applicable in making the computation hereunder.

 

IN WITNESS WHEREOF, the parties have hereunto set their hands and seals the day and year first above written.

 

 

	
WITNESS:
    	
 
    	
47.07 ASSOCIATES L.P., a Delaware limited 
    
	
 
    	
 
    	
partnership
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
By:
    	
47.07 Building Corp., general
    
	
 
    	
 
    	
 
    	
partner
    
	
/s/   ILLEGIBLE
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
By:
    	
/s/ Robert C. Baker
    
	
 
    	
 
    	
 
    	
Name:
    	
Robert C. Baker
    
	
 
    	
 
    	
 
    	
Title:
    	
President
    
	
 
    	
 
    	
 
    	
 
    	
(LANDLORD)
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
ATTEST:
    	
 
    	
KEY OPTICS, INC.,
    
	
 
    	
 
    	
a Delaware corporation
    
	
 
    	
 
    	
 
    
	
/s/   Lizzie Kayes
    	
 
    	
By:
    	
/s/ ILLEGIBLE
    
	
Lizzie   Kayes
    	
 
    	
Name:
    	
ILLEGIBLE
    
	
 
    	
 
    	
Title:
    	
CEO
    	
 
    
	
 
    	
 
    	
 
    	
(TENANT)
    	
 
    
							

 

	
 
    	
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37

 

	
STATE   OF NEW YORK
    	
)
    	
 
    
	
 
    	
 
    
	
 
    	
SS.:
    	
 
    
	
 
    	
 
    
	
COUNTY   OF WESTCHESTER
    	
)
    	
 
    
				

 

BE IT REMEMBERED, that on the 31st day of May, 2001, before me, the subscriber, a notary public of the State of New York, personally appeared Robert C. Baker, President of 47.07 Building Corp., general partner of 47.07 ASSOCIATES L.P., who, I am satisfied, is the person who signed the within instrument; and I having first made known to him the contents thereof, he thereupon acknowledged that he signed and delivered the said instrument as such officer aforesaid, and that the within instrument is the voluntary act and deed of said corporation as said general partner, made by virtue of the authority of its board of directors.

 

	
 
    	
/s/   Steven V. Krauss
    
	
 
    	
NOTARY   PUBLIC
    
	
 
    	
 
    
	
 
    	
STEVEN V. KRAUSS
    
	
 
    	
Notary Public, State of New York
    
	
 
    	
No. 02 KR 5084841
    
	
 
    	
Qualified in Westchester County
    
	
 
    	
Commission Expires September 8, ILLEGIBLE
    

 

	
STATE   OF [ILLEGIBLE]
    	
)
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
SS.:
    	
 
    
	
 
    	
 
    	
 
    
	
COUNTY   OF [ILLEGIBLE]
    	
)
    	
 
    
				

 

 

BE IT REMEMBERED, that on the 26 day of May, 2001, before me, the subscriber, a notary public of the State of New Jersey, personally appeared Joseph [Illegible] of KEY OPTICS, INC., who, I am satisfied, is the person who signed the within instrument; and I having first made known to him the contents thereof, he thereupon acknowledged that he signed, sealed with the corporate seal, and delivered the said instrument as such officer aforesaid, and that the within instrument is the voluntary act and deed of said corporation, made by virtue of the authority of its board of directors.

 

	
 
    	
/s/   James W. Johnston
    
	
 
    	
NOTARY   PUBLIC
    
	
 
    	
 
    
	
 
    	
JAMES W. JOHNSTON
    
	
 
    	
NOTARY PUBLIC OF NEW JERSEY
    
	
 
    	
My Commission Expires Jan 28, 2005
    
	
 
    	
 
    

 

	
 
    	
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38

 

 

	
 
    	
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EXHIBIT B

 

WORK LETTER TO BE ATTACHED TO
 LEASE WITH KEY OPTICS, INC.
 600 CORPORATE COURT
 MIDDLESEX BUSINESS CENTER, 
 SOUTH PLAINFIELD, NEW JERSEY

 

Landlord agrees to perform the Landlord’s Work set forth in this Exhibit B. Any work not expressly specified herein and any work necessary to comply with codes attributable to Tenant’s use shall be furnished and installed at the sole cost and expense of Tenant. Any existing construction within the Demised Premises shall be accepted by Tenant in “as is” condition in accordance with the provisions of Section 5.01 of this Lease.

 

1.                          Repaint the office area within the Demised Premises two coats - Tenant’s choice of paint from Landlord’s standard selections.

 

2.                          Re-carpet that portion of such office area currently carpeted — Tenant’s choice of carpet from Landlord’s standard selections.

 

3.                          Replace any existing vet floor covering within the office area of the Demised Premises — Tenant’s choice of vet floor covering from Landlord’s standard selections.

 

4.                          Perform such work as may be necessary to cause the HVAC system within and serving the Demised Premises to be in good working as of the date possession of the Demised Premises is delivered to Tenant.

 

5.                          Replace any currently stained or damaged ceiling tiles now present within the Demised Premises.

 

6.                          Patch the walls within the Demised Premises where needed.

 

7.                          Create two (2) trimmed openings to connect the portions of the Demised Premises which were previously separately leased.

 

MISCELLANEOUS

 

A.                      Any “extras” furnished by Landlord shall be computed at Landlord’s cost, plus 10% overhead, plus 10% profit, plus 2% insurance costs. The cost thereof shall be payable simultaneously with the execution and delivery to Landlord by Tenant of written authorization for such extra work.

 

B.                        Credits to Tenant based upon deletions and reductions below Building Standard set forth above, shall be computed based upon Landlord’s unit cost set forth above, without factor of overhead and profit.

 

C.                        Landlord shall furnish Tenant with a statement(s) computing the net extras or credits due to Landlord or Tenant, as the case may be Any amount due to Landlord shall be due and payable upon receipt of such statement Any credit due Tenant shall give rise to reduction in the first installments of rent until such credit has been exhausted.

 

D.                       Tenant shall promptly furnish Landlord with design criteria and specifications necessary to enable Landlord to comply with its obligations above. All authorizations, deletions and

 

	
 
    	
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1

 

implementations of the foregoing Work Letter shall be in writing and confirmed by authorized representatives of Landlord and Tenant.

 

E.                         If there shall be any conflict between the provisions of this Work Letter and the Final Approved Plans, the Final Approved Plans shall govern and control.

 

F.                         Landlord reserves the right to substitute for any materials and equipment specified herein, materials and equipment of substantially equal quality after notice to Tenant.

 

G.                        All selections or designations to be made by Tenant are to be made within five (5) business days following receipt by Tenant of a notification from Landlord to make such selections. If Tenant has not made such designations or selections within said period, Landlord shall be authorized to do so on behalf of Tenant.

 

H.                       Unless specifically stated in this Exhibit B or this Lease to the contrary, and notwithstanding anything contained on any plans or drawings, Tenant, and not Landlord, shall be responsible for furnishing and installing at its sole cost and expense any and all furniture, Tenant fixtures, appliances, shelving, cabinetry, phone systems, computer wiring and the like for the Demised Premises.

 

	
 
    	
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2

 

MODIFICATION OF LEASE

 

THIS MODIFICATION OF LEASE, made as of the 18th day  of April, 2006, by and between MBC 600 L.P., a Delaware limited partnership, having a mailing address c/o National Realty & Development Corp., 3 Manhattanville Road, Purchase, New York 10577 (hereinafter referred to as “Landlord”), and INPLANE PHOTONICS, INC. formerly known as KEY OPTICS, INC., a Delaware corporation, having an office at 600 Corporate Court South Plainfield, NJ 07080 hereinafter referred to as “Tenant”).

 

W I T N E S S E T H:

 

WHEREAS, Landlord and Tenant entered into a lease dated as of May 26, 2001 (such lease, as amended, modified, assigned and transferred to date, is hereinafter referred to as the “Lease”) with respect to certain premises (the “Demised Premises”) located on Lot No. 47.07 of the MIDDLESEX BUSINESS CENTER in the Borough of South Plainfield, County of Middlesex, and State of New Jersey (hereafter referred to as “Center”);

 

WHEREAS, Tenant and Landlord have agreed to modify the terms of the Lease and extend the term of the Lease as hereafter provided;

 

NOW, THEREFORE, in consideration of Ten and 00/100 ($10.00) Dollars and other good and valuable consideration, each to the other in hand duly paid, the receipt and sufficiency whereof is hereby acknowledged, the parties do mutually agree as follows:

 

1.                                       The term of the Lease is hereby extended ONE (1) YEAR so that the term shall  expire on July 31, 2007 (the “Expiration Date”), upon the same terms, covenants, conditions and provisions contained in the Lease, except as hereinafter provided. (The period commencing on August 1, 2006 and ending on the Expiration Date is herein referred to as the “Extension Term”.) Tenant acknowledges that except for the right granted pursuant to Section 3, below, there is no right to extend the term of the Lease beyond the Expiration Date and that all renewal or extension privileges set forth in the Lease, including, without limitation, those set forth in Article 40 of the Lease; are hereby waived.

 

2.                                  During the Extension Term the annual minimum rental payable in accordance with Article 3 of the Lease shall be: TWO HUNDRED ELEVEN THOUSAND EIGHT HUNDRED EIGHTY FOUR and 16/100 ($211,884.16) DOLLARS per annum — SEVENTEEN THOUSAND SIX HUNDRED FIFTY SEVEN and 01/100 ($17,657.01) DOLLARS per month.

 

Modifying the language of the last sentence of Section 3.01 of the Lease, Tenant shall wire the annual minimum rent, together with the monthly escrowed additional rent, to Landlord pursuant to the Wiring Instructions attached hereto on Exhibit A. Said wire shall be made on (or prior to) the first (1st) day of each and every month as required in the Lease.

 

3.                                       Tenant shall have the option (provided that Tenant has not (i) been in default hereunder at any time during the Extension Term, nor (ii) filed for bankruptcy or become subject to an involuntary bankruptcy action), to extend the Term for ONE (1) successive additional term of ONE (1) year, upon the same terms and conditions as provided herein, and except that Tenant shall have no further extension options. Tenant shall give written notice to Landlord prior to January 31, 2007 of its election to extend the Term hereof, or such option shall be deemed waived If Tenant shall exercise such extension option, the parties will, at the request of either, execute an agreement in form for recording, evidencing such extension. If Tenant shall exercise such extension option, all references in this Lease to the Term hereof shall be deemed to mean the term as so extended, except where expressly otherwise provided.

 

4.                                       Except as expressly modified herein, all of the provisions, covenants, conditions and agreements set forth in the Lease shall continue in full force and effect.

 

[the remainder of the page is intentionally left blank]

 

	
 
    	
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1

 

IN WITNESS WHEREOF, the parties have hereunto set their hands and seals the day and year first above written.

 

 

	
WITNESS:
    	
 
    	
MBC   600 L.P.
    
	
 
    	
 
    	
a   Delaware limited partnership
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
By:   MBC 600 Building Corp., general partner
    
	
 
    	
 
    	
 
    
	
/s/ [ILLEGIBLE]
    	
 
    	
 
    	
By:
    	
/s/ Robert C. Baker
    
	
 
    	
 
    	
 
    	
Name:
    	
Robert C. Baker
    
	
 
    	
 
    	
 
    	
Title:
    	
C.E.O
    
	
 
    	
 
    	
 
    	
 
    	
(LANDLORD)
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
ATTEST:
    	
 
    	
INPLANE PHOTONICS, INC.,
    
	
 
    	
 
    	
a Delaware corporation
    
	
 
    	
 
    	
 
    
	
/s/ [ILLEGIBLE]
    	
 
    	
By:
    	
/s/ Michael Cyrus
    
	
 
    	
 
    	
Name:
    	
Michael Cyrus
    
	
 
    	
 
    	
Title:
    	
CEO
    
	
 
    	
 
    	
 
    	
(TENANT)
    
	
STATE OF NEW YORK                 )
    	
 
    	
 
    
	
                                               SS.:
    	
 
    	
 
    
	
COUNTY OF WESTCHESTER     )
    	
 
    	
 
    

 

BE IT REMEMBERED, that on the 18th day of April, 2006, before me, the subscriber, a notary public of the State of New York, personally appeared Robert C. Baker, C.E.O. of MBC 600 Building Corp., general partner of MBC 600 L.P., who, I am satisfied, is the person who signed the within instrument; and I having first made known to him the contents thereof, (he thereupon acknowledged that he signed delivered the said instrument as such officer aforesaid, and that the within instrument is the voluntary act and deed of said corporation as said general partner, made by virtue of the authority of its board of directors.

 

	
 
    	
/s/   Wayne E. Heller
    
	
 
    	
NOTARY   PUBLIC
    
	
 
    	
 
    
	
 
    	
WAYNE E. HELLER
    
	
 
    	
Notary Public, State Of NewYork
    
	
 
    	
No. 02HE6062858
    
	
 
    	
Qualified in Westchaster County
    
	
 
    	
Commission Expires August 20, 2009
    

 

STATE OF NEW JERSEY

SS.:

COUNTY OF UNION     )

 

BE IT REMEMBERED, that on the 8th day of April, 2006, before me, the subscriber, a notary public of the State of New Jersy, personally appeared Michael cyrus, of INPLANE PHOTONICS, INC., who, I am satisfied, is the person who signed the within instrument; and I having first made known to him the contents thereof, he thereupon acknowledged that  he signed, sealed with the corporate seal, and delivered the said instrument as such officer aforesaid, and that the within instrument is the voluntary act and deed of said corporation, made by virtue of  the authority of its board of directors.

 

	
 
    	
/s/   [ILLEGIBLE]
    
	
 
    	
NOTARY   PUBLIC
    
	
 
    	
 
    
	
 
    	
MARCY AVILES
    
	
 
    	
NOTARY PUBLIC OF NEW JERSEY
    
	
 
    	
Commission Expires [ILLEGIBLE]
    

 

	
 
    	
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2

 

SECOND MODIFICATION OF LEASE

 

THIS SECOND MODIFICATION OF LEASE (this “Amendment”) is made as of February, 8th,  2008, by and between MBC 600 L.P., a Delaware limited partnership (“Landlord”), and INPLANE PHOTONICS, INC., a Delaware corporation (“Tenant”), formerly known as Key Optics, Inc., a Delaware corporation, with reference to the following facts and objectives:

 

RECITALS

 

A.                                   Landlord and Tenant entered into that certain Lease dated as of May 26, 2001, as amended by that certain Modification of Lease dated as of April 18, 2006 (such lease, as amended, modified, assigned and transferred to date, is hereinafter referred to as the “Lease”) with respect to certain premises (the “Demised Premises”) located on Lot No. 47.07 of the MIDDLESEX BUSINESS CENTER in the Borough of South Plainfield, County of Middlesex, and State of New Jersey.

 

B.                                     Landlord and Tenant have agreed to modify the terms of the Lease and provided for additional extension options as hereinafter provided.

 

AGREEMENT

 

NOW, THEREFORE, in consideration of good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereto agree as follows:

 

1.                                       Lease Extension. Notwithstanding anything to the contrary in the Lease, Landlord and Tenant hereby agree to extend the term of the Lease through July 31, 2009 upon the same terms and conditions as contained in the Lease.

 

2.                                       Option to Extend. Provided (i) Tenant is not then in default of the Lease beyond applicable notice and cure periods, and (ii) Tenant has not filed for bankruptcy or become subject to an involuntary bankruptcy action, Tenant may exercise an option for an additional term of one (1) year (from August 1, 2009 through July 31, 2010), commencing when the then-existing term expires, upon the terms and conditions set forth in this Paragraph by giving Landlord written notice of its intention not less than nine (9) months prior to the expiration of the then-existing term of the Lease (prior to November 1, 2008). All of the terms and conditions contained in the Lease as the same may be amended from time to time by the parties in accordance with the provisions of the Lease, shall remain in full force and effect and shall apply during the Option term with the exception that the minimum rent due during the option term shall be TWO HUNDRED THIRTY TWO THOUSAND NINE HUNDRED EIGHTY EIGHT AND 16/100 ($232,988.16) DOLLARS per annum-NINETEEN THOUSAND FOUR HUNDRED FIFTEEN AND 68/100 ($19,415.68) DOLLARS per month.

 

3.                                  Miscellaneous. This Amendment constitutes the entire agreement between Landlord and Tenant regarding the subject matter contained herein and supersedes any and all prior and/or

 

 

contemporaneous oral or written negotiations, agreements or understandings. This Amendment shall be binding upon and inure to the benefit of Landlord and Tenant and their respective heirs, legal representatives, successors and assigns. No subsequent change or addition to this Amendment shall be binding unless in writing and duly executed by both Landlord and Tenant. Except as specifically amended hereby, all of the terms and conditions of the Lease are and shall remain in full force and effect and are hereby ratified and confirmed.

 

IN WITNESS WHEREOF, the parties have executed this Amendment, by their duly authorized signatories, as of the day and year first above written.

 

 

	
LANDLORD:
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
MBC 600 L.P.,
    	
 
    	
 
    
	
a Delaware limited partnership
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
By:
    	
MBC 600 Building Corp., its
    	
 
    	
 
    
	
 
    	
general partner
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/ Robert C. Baker
    	
 
    	
 
    
	
 
    	
 
    	
Name: Robert C. Baker
    	
 
    	
 
    
	
 
    	
 
    	
Title: Chief Executive Officer
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
TENANT:
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
INPLANE PHOTONICS, INC.,
    	
 
    	
 
    
	
a Delaware corporation
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
By:
    	
/s/ Ed J. Coringrato
    	
 
    	
 
    
	
 
    	
Name: 
    	
Ed J. Coringrato
    	
 
    	
 
    
	
 
    	
Title: 
    	
President
    	
 
    	
 
    
						

 

 

	
STATE OF NEW YORK
    	
)
    	
 
    	
 
    
	
 
    	
SS.:
    	
 
    	
 
    
	
COUNTY OF WESTCHESTER
    	
)
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    

 

BE IT REMEMBERED, that on the 26 day of February, 2008, before me, the subscriber, a notary public of the State of New York, personally appeared Robert C. Baker Chief Executive Officer of MBC 600 Building Corp., general partner of MBC 600 L.P., who, I am satisfied, is the person who signed the within instrument; and I having first made known to him the contents thereof, he thereupon acknowledged that he signed and delivered the said instrument as such officer aforesaid, and that the within instrument is the voluntary act and deed of said corporation as said general partner, made by virtue of the authority of its board of directors.

 

 

	
 
    	
 
    	
/s/   Wayne E. Heller
    
	
 
    	
 
    	
NOTARY   PUBLIC
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
STATE OF Pa
    	
)
    	
 
    	
 
    
	
 
    	
SS.:
    	
 
    	
 
    
	
COUNTY OF [ILLEGIBLE]
    	
)
    	
 
    	
 
    

 

BE IT REMEMBERED, that on the 8 day of Feb, 2008, before me, the subscriber, a notary public of the State of pa, personally appeared Ed. J. Coringrato, President of Inplane Photonics, Inc. who, I am satisfied, is the person who signed the within instrument; and I having first made known to him the contents thereof, he thereupon acknowledged that he signed, sealed with the corporate seal, and delivered the said instrument as such                              aforesaid, and that the within instrument is the voluntary act and deed of                          , made by virtue of the authority of                         .

 

	
 
    	
 
    	
/s/   Robert N. Skinner
    
	
 
    	
 
    	
NOTARY   PUBLIC
    
	
 
    	
 
    	
 
    
	
 
    	
COMMONWEALTH OF PENNSYLVANIA
    
	
 
    	
NOTARIAL SEAL
    
	
 
    	
ROBERT N. SKINNER. Notary Public
    
	
 
    	
Upper Mactingi, 7:hiqh County
    
	
 
    	
My Commissior.Lapire; Nov. 12, 2009
    

 

 

Agreement

 

THIS AGREEMENT (this “Amendment”) is made as of November, 1, 2008, by and between MBC 600 L.P., a Delaware limited partnership (“Landlord”), and INPLANE PHOTONICS, INC., a Delaware corporation (“Tenant”), formerly known as Key Optics, Inc., a Delaware corporation, with reference to the following facts and objectives:

 

RECITALS

 

WHEREAS, Landlord and Tenant entered into that certain Lease dated as of May 26, 2001, as amended by that certain Modification of Lease dated as of April 18, 2006, AND Second Modification of Lease dated February 8, 2008 (such lease, as amended, modified, assigned and transferred to date, is hereinafter referred to as the “Lease”) with respect to certain premises (the “Demised Premises”) located on Lot No. 47.07 of the MIDDLESEX BUSINESS CENTER in the Borough of South Plainfield, County of Middlesex, and State of New Jersey:

 

NOW, THEREFORE, in consideration of good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereto agree as follows:

 

1.          Lease Extension. Notwithstanding anything to the contrary in the Lease, Landlord and Tenant hereby agree that the term has been extended by Tenant’s exercise of its option pursuant to the terms of Paragraph 2 of the Second Modification of Lease, and shall expire on July 31, 2010 (the “Expiration Date”) upon the terms and conditions set forth in the Lease. Tenant acknowledges that there is no right to extend the Lease beyond the Expiration Date and that all renewal or extension privileges set forth in the Lease have been exhausted and/or waived.

 

2.          Extension Term. The annual minimum rent during the Extension Term (from August 1, 2009 through July 31, 2010) shall be TWO HUNDRED THIRTY TWO THOUSAND NINE HUNDRED EIGHTY EIGHT AND 16/100 ($232,988.16) DOLLARS per annum- NINETEEN THOUSAND FOUR HUNDRED FIFTEEN AND 68/100 ($19,415.68) DOLLARS per month.

 

3.          Miscellaneous. This Agreement constitutes the entire agreement between Landlord and Tenant regarding the subject matter contained herein and supersedes any and all prior and/or contemporaneous oral or written negotiations, agreements or understandings. This Agreement shall be binding upon and inure to the benefit of Landlord and Tenant and their respective heirs, legal representatives, successors and assigns. No subsequent change or addition to this Agreement shall be binding unless in writing and duly executed by both Landlord and Tenant. Except as specifically amended hereby, all of the terms and conditions of the Lease are and shall remain in full force and effect and are hereby ratified and confirmed.

 

IN WITNESS WHEREOF, the parties have executed this Agreement, by their duly authorized signatories, as of the day and year first above written.

 

	
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LANDLORD:

MBC 600 L.P.,

a Delaware limited partnership

 

	
By:
    	
MBC   600 Building Corp, its general partner
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/   Robert C. Baker
    	
 
    
	
 
    	
 
    	
Name:   Robert C. Baker
    	
 
    
	
 
    	
 
    	
Title:   Chief Executive Officer
    	
 
    

 

TENANT:

INPLANE PHOTONICS, INC., a Delaware corporation

	
 
    	
 
    	
 
    
	
By:
    	
/s/   Ettore J. Coringrato
    	
 
    
	
 
    	
Name:   Ettore J. Coringrato
    	
 
    
	
 
    	
Title:   President
    	
 
    

 

 

	
STATE OF NEW YORK
    	
)
    
	
 
    	
SS.:
    
	
COUNTY OF WESTCHESTER
    	
)
    

 

BE IT REMEMBERED, that on the 1st day of December, 2008, before me, the subscriber, a notary public of the State of New York, personally appeared Robert C. Baker Chief Executive Officer of MBC 600 Building Corp., general partner of MBC 600 L.P., who, I am satisfied, is the person who signed the within instrument; and I having first made known to him the contents thereof, he thereupon acknowledged that he signed and delivered the said instrument as such officer aforesaid, and that the within instrument is the voluntary act and deed of said corporation as said general partner, made by virtue of the authority of its board of directors.

 

	
 
    	
/s/ Wayne E. Heller
    
	
 
    	
NOTARY PUBLIC
    
	
 
    	
WAYNE E. HELLER

Notary Public, State Of NewYork

No. 02HE6062858

Qualified In Westchaster Country

Commission   Expires August 20, 2009
    

 

	
STATE OF Pa
    	
)
    
	
 
    	
SS.:
    
	
COUNTY OF [ILLEGIBLE]
    	
)
    
			

 

BE IT REMEMBERED, that on the 24 day of November, 2008, before me, the subscriber, a notary public of the State of Pennsylvania, personally appeared Ettore J. Coringrato, of Inplane Photonics, Inc. who, I am satisfied, is the person who signed the within instrument; and I having first made known to him the contents thereof, he thereupon acknowledged that he signed, sealed with the corporate seal, and delivered the said instrument as such President aforesaid, and that the within instrument is the voluntary act and deed of JuPlane Photonics, made by virtue of the authority of the Corp.

 

	
 
    	
/s/ Robert N. Skinner
    
	
 
    	
NOTARY PUBLIC
    

 

	
 
    	
COMMONWEALTH OF PENNSYLVANIA
    
	
 
    	
NOTARIAL SEAL
    
	
 
    	
ROBERT N. SKINNER, NOTARY PUBLIC
    
	
 
    	
Upper Macungle Two., Lehigh County
    
	
 
    	
My Commission Expires Nov. 12, 2009
    

 

 

	
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/s/ [ILLEGIBLE]
    	
 
    
	
 
    	
T  
    	
/s/ [ILLEGIBLE]
    

 

 

 

FEDERAL EXPRESS

 

	
 
    	
December 10,   2009
    
	
 
    	
 
    
	
Mr. Ed   Coringrato
    	
 
    
	
Inplane   Photonics
    	
 
    
	
9999   Hamilton Blvd.
    	
 
    
	
Breingsville,   Pennsylvania 18031
    	
 
    

 

RE:                        Fourth Modification of Lease between MBC 600 L.P. (“Landlord”) 
 and Inplane Photonics, Inc. (“Tenant”) for premises located 
 in South Plainfield, New Jersey (MBC 600)

 

Dear Mr. Coringrato:

 

I am enclosing herewith one (1) fully executed original of the Fourth Modification of Lease for your files.

 

Please note that I have made a correction to paragraph 4 by adding the word “provide” in the last sentence.

 

Please call me at my direct dial (914) 272-8013 if you have any questions.

 

	
 
    	
Sincerely,
    
	
 
    	
 
    
	
 
    	
NATIONAL REALTY & DEVELOPMENT CORP.
    
	
 
    	
 
    
	
 
    	
/s/   Wayne E. Heller
    
	
 
    	
Wayne   E. Heller
    
	
 
    	
Associate   Counsel
    

 

Enc.

cc: Brian Sekel

 

3 Manhattanville Road

Purchase, New York 10577-2117

Tel: 914.694.4444

Fax: 914.694.5448

 

 

FOURTH MODIFICATION OF LEASE

 

THIS FOURTH MODIFICATION OF LEASE (this “Amendment”) is made as of December, 10, 2009, by and between MBC 600 L.P., a Delaware limited partnership (“Landlord”), and INPLANE PHOTONICS, INC., a Delaware corporation (“Tenant”), formerly known as Key Optics, Inc., a Delaware corporation, with reference to the following facts and objectives:

 

RECITALS

 

WHEREAS, Landlord and Tenant entered into that certain Lease dated as of May 26, 2001, as amended by that certain Modification of Lease dated as of April 18, 2006, Second Modification of Lease dated February 8, 2008, and Agreement dated November 1, 2008 (such lease, as amended, modified, assigned and transferred to date, is hereinafter referred to as the “Lease”) with respect to certain premises (the “Demised Premises”) located on Lot No. 47.07 of the MIDDLESEX BUSINESS CENTER, in part of the building commonly known as 600 Corporate Court, in the Borough of South Plainfield, County of Middlesex, and State of New Jersey.

 

NOW, THEREFORE, in consideration of good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereto agree as follows:

 

1.             Lease Extension.  Notwithstanding anything to the contrary in the Lease, Landlord and Tenant hereby agree that the term has been extended and shall expire on July 31, 2011 upon the terms and conditions set forth in the Lease. Tenant acknowledges that there is no right to extend the Lease beyond the Expiration Date (except as set forth in §3, below) and that all renewal or extension privileges set forth in the Lease have been exhausted and/or waived.

 

2.             Extension Term.  The annual minimum rent during the Extension Term (from August 1, 2010 through July 31, 2011) shall be TWO HUNDRED THIRTY TWO THOUSAND NINE HUNDRED EIGHTY EIGHT AND 16/100 ($232,988.16) DOLLARS per annum- NINETEEN THOUSAND FOUR HUNDRED FIFTEEN AND 68/100 ($19,415.68) DOLLARS per month.

 

3.             Option.       Tenant shall have the option, provided Tenant is not in default hereunder and has not been, at any time, in default hereunder and, further provided, that there shall not have occurred an event which, with the giving of notice and/or the passage of time, shall constitute a default by Tenant under this Lease, to extend the Term for ONE (1) successive additional term of ONE (1) year, upon the same terms and conditions as provided herein, except that the annual minimum rental during said extension period shall be as provided below, and except that Tenant shall have no further extension options. Tenant shall give written notice to Landlord prior to January 31, 2011, or such option shall be deemed waived. If Tenant shall exercise such extension option, the parties will, at the request of either, execute an agreement in form for recording, evidencing such extension. If Tenant shall exercise such extension option, all references in this Lease to the Term hereof shall be deemed to mean the Term as so 

 

	
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/s/ [ILLEGIBLE]
    

 

 

extended, except where expressly otherwise provided. This Section 3 shall be null and void and of no further force and effect upon the occurrence of a default by Tenant under this Lease.

 

If Tenant shall duly elect to extend the Term as herein provided, the annual minimum rental payable by Tenant during said extension term shall be TWO HUNDRED FIFTY FOUR THOUSAND NINETY TWO and 20/100 ($254,092.20) DOLLARS per annum — TWENTY ONE THOUSAND ONE HUNDRED SEVENTY FOUR and 35/100 ($21,174.35) DOLLARS per month.

 

4.             Letter of Credit.    As a condition precedent to the effectiveness of this Agreement, no later than ten (10) days from the date of this Agreement, Tenant shall cause the existing Letter of Credit that it has provided to Landlord to be amended such that its expiration date shall be September 1, 2011 or later. In the alternative, Tenant may provide a new Letter of Credit, in the form that has been approved by Landlord, and in compliance with the terms of §39 of the Lease, issued by a bank acceptable to Landlord, having a expiration date of September 1, 2011. In the event that Tenant shall not provide a Letter of Credit to Landlord as set forth herein, this Agreement shall be rendered null and void and of no force and effect.

 

5.             Miscellaneous.  This Agreement constitutes the entire agreement between Landlord and Tenant regarding the subject matter contained herein and supersedes any and all prior and/or contemporaneous oral or written negotiations, agreements or understandings. This Agreement shall be binding upon and inure to the benefit of Landlord and Tenant and their respective heirs, legal representatives, successors and assigns. No subsequent change or addition to this Agreement shall be binding unless in writing and duly executed by both Landlord and Tenant. Except as specifically amended hereby, all of the terms and conditions of the Lease are and shall remain in full force and effect and are hereby ratified and confirmed.

 

IN WITNESS WHEREOF, the parties have executed this Agreement, by their duly authorized signatories, as of the day and year first above written.

 

	
LANDLORD:
    	
 
    
	
MBC 600 L.P.,
    	
 
    
	
a   Delaware limited partnership
    	
 
    
	
 
    	
 
    
	
By: 
    	
MBC 600 Building Corp., its general partner
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/ Robert C. Baker
    	
 
    
	
 
    	
 
    	
Name: Robert C. Baker
    	
 
    
	
 
    	
 
    	
Title:   Chief Executive Officer
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
TENANT:
    	
 
    
	
INPLANE PHOTONICS, INC., a Delaware   corporation
    	
 
    

 

	
L  
    	
/s/ [ILLEGIBLE]
    	
 
    
	
 
    	
T  
    	
/s/ [ILLEGIBLE]
    

 

 

	
By:
    	
/s/   Ed J. Coringrato
    	
 
    
	
 
    	
Name:
    	
Ed   J. Coringrato
    	
 
    
	
 
    	
Title:
    	
CEO
    	
 
    
	
 
    	
 
    
	
STATE   OF NEW YORK
    	
)
    	
 
    
	
 
    	
SS.:
    	
 
    
	
COUNTY   OF WESTCHESTER
    	
)
    	
 
    
					

 

BE IT REMEMBERED, that on the 10 day of December 2009, before me, the subscriber, a notary public of the State of New York, personally appeared Robert C. Baker Chief Executive Officer of MBC 600 Building Corp., general partner of MBC 600 L.P., who, I am satisfied, is the person who signed the within instrument; and I having first made known to him the contents thereof, he thereupon acknowledged that he signed and delivered the said instrument as such officer aforesaid, and that the within instrument is the voluntary act and deed of said corporation as said general partner, made by virtue of the authority of its board of directors.

 

	
 
    	
/s/   Wayne E. Heller
    
	
 
    	
NOTARY   PUBIC
    
	
 
    	
 
    
	
 
    	
WAYNE E. HELLER

Notary Public, State Of NewYork

No. 02HE6062858

Qualified In Westchaster Country

Commission Expires August 20, 2013
    
	
 
    	
 
    	
 
    
	
STATE   OF Pa
    	
)
    	
 
    
	
SS.:
    	
 
    	
 
    
	
COUNTY OF Lehigh
    	
)
    	
 
    

 

BE IT REMEMBERED, that on the 3 day of December, 2009, before me, the subscriber, a notary public of the State of Pa, personally appeared Ettore J. Coringrato,            of Inplane Photonics, Inc. who, I am satisfied, is the person who signed the within instrument; and I having first made known to him the contents thereof, he thereupon acknowledged that he signed, sealed with the corporate seal, and delivered the said instrument as such President aforesaid, and that the within instrument is the voluntary act and deed of [ILLEGIBLE], made by virtue of the authority of the Corp.

 

	
 
    	
/s/   Robert N. Skinner
    
	
 
    	
NOTARY   PUBLIC
    
	
 
    	
 
    
	
 
    	
COMMONWEALTH OF PENNSYLVANIA
    
	
 
    	
NOTARIAL SEAL
    
	
 
    	
ROBERT N. SKINNER, NOTARY PUBLIC
    
	
 
    	
Upper Macungle Two., Lehigh County
    
	
 
    	
My Commission Expires Nov. 12, 2013
    

 

	
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/s/ [ILLEGIBLE]
    	
 
    
	
 
    	
T  
    	
/s/ [ILLEGIBLE]
    

 

 

FIFTH MODIFICATION OF LEASE

 

THIS FIFTH MODIFICATION OF LEASE (this “Amendment”) is made as of February 10, 2011, by and between MBC 600 L.P., a Delaware limited partnership (“Landlord”), and INPLANE PHOTONICS, INC., a Delaware corporation (“Tenant”), formerly known as Key Optics, Inc., a Delaware corporation, having a principal place of business at 9999 Hamilton Boulevard, Breinigsville, Pennsylvania 18031.

 

RECITALS:

 

WHEREAS, Landlord and Tenant entered into that certain Lease dated as of May 26, 2001, as amended by that certain Modification of Lease dated as of April 18, 2006, Second Modification of Lease dated February 8, 2008, Agreement dated November 1, 2008, and Fourth Modification of Lease dated December 10, 2009 (such lease, as amended, modified, assigned and transferred to date, is hereinafter referred to as the “Lease”) with respect to certain premises (the “Demised Premises”) located an Lot No. 47.07 of the MIDDLESEX BUSINESS CENTER, in part of the building commonly known as 600 Corporate Court, in the Borough of South Plainfield, County of Middlesex, and State of New Jersey.

 

NOW, THEREFORE, in consideration of good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereto agree as follows:

 

1.           Lease Extension. Notwithstanding anything to the contrary in the Lease, Landlord and Tenant hereby agree that the term is extended for three (3) years, and shall expire on July 31, 2014 (the “Expiration Date”) upon the terms and conditions set forth in the Lease, except as set forth in §2 below.

 

2.           Extension Term. The annual minimum rental during the Extension Term (from August 1, 2011 through July 31, 2014) shall be TWO HUNDRED THIRTY TWO THOUSAND NINE HUNDRED EIGHTY EIGHT AND 16/100 ($232,988.16) DOLLARS per annum- NINETEEN THOUSAND FOUR HUNDRED FIFTEEN AND 68/100 ($19,415.68) DOLLARS per month.

 

3.          Letter of Credit. As a condition precedent to the effectiveness of this Agreement, no later than thirty (30) days from the date of this Agreement, Tenant shall cause the existing Letter of Credit that it has provided to Landlord in compliance with §39 of the Lease to be amended such that (a) its expiration date shall be extended to September 15, 2014, and (b) its value reduced from $100,000.00 to $50,000.00. In the event that Tenant shall not provide Landlord with an amendment to the existing Letter of Credit to as set forth herein, or a new letter of credit satisfying the requirements of §39 of this Lease and this section, then this Agreement shall, at Landlord’s option, be rendered null and void and of no force and effect.

 

4.          Option. Tenant shall have the option, provided Tenant is not in default hereunder and has not been, at any time, in default hereunder and, further provided, that there shall not have occurred an event which, with the giving of notice and/or the passage of time, shall constitute a default by Tenant under this Lease, to extend the Term for ONE (1) successive additional term of TWO (2) years, upon the same terms and conditions as provided herein, except that the annual minimum rental during said extension period shall be as provided below, and except that Tenant shall have no further extension options. Tenant shall give written notice to Landlord prior to July 31, 2013, or such option shall be deemed waived. If Tenant shall exercise such extension option, the parties will, at the request of either, execute an agreement in form for recording, evidencing such extension. If Tenant shall exercise such extension option, all references in this Lease to the Term hereof shall be deemed to mean the Term as so extended, except where expressly otherwise provided. This Section 4 shall be null and void and of no further force and effect upon the occurrence of a default by Tenant under this Lease.

 

If Tenant shall duly elect  to extend the Term as herein provided, the annual minimum rental payable by Tenant during said extension term shall be TWO HUNDRED FIF’T’Y FOUR THOUSAND NINETY TWO and 20/100 ($254,092.20) DOLLARS per annum — TWENTY ONE  THOUSAND ONE HUNDRED SEVENTY FOUR and 35/100 (521,174.35) DOLLARS per month.

 

5.           Miscellaneous. This Agreement constitutes the entire agreement between Landlord and Tenant regarding the subject matter contained herein and supersedes any and all prior and/or

 

	
L  
    	
/s/   [ILLEGIBLE]
    
	
 
    	
 
    
	
T  
    	
/s/   [ILLEGIBLE]
    

 

 

contemporaneous oral or written negotiations, agreements or understandings. This Agreement shall be binding upon and inure to the benefit of Landlord and Tenant and their respective heirs, legal representatives, successors and assigns. No subsequent change or addition to this Agreement shall be binding unless in writing and duly executed by both Landlord and Tenant. Except as specifically amended hereby, all of the terms and conditions of the Lease are and shall remain in full force and effect and are hereby ratified and confirmed.

 

6.          Tenant covenants, warrants and represents that it has dealt with no broker respecting this Modification and that no conversations, correspondence or negotiations were had by it with any broker concerning the renting or leasing of the Demised Premises. Tenant shall hold Landlord and National Realty & Development Corp. harmless and defend (by counsel satisfactory to Landlord) said parties against any claims for a brokerage commission arising out of any conversations, correspondence or negotiations had by Tenant with any broker relating to this Lease.

 

IN WITNESS WHEREOF, the parties have executed this Agreement, by their duly authorized signatories, as of the day and year first above written.

 

	
 
    	
LANDLORD:
    
	
 
    	
MSC 600 L.P.,
    
	
 
    	
a   Delaware limited partnership
    
	
 
    	
 
    
	
 
    	
By:   
    	
MBC   600 Building Corp., its general partner
    
	
 
    	
 
    	
 
    
	
 
    	
By:   
    	
/s/   Robert C. Baker
    
	
 
    	
Name:   
    	
Robert   C. Baker
    
	
 
    	
Title:   
    	
Chief   Executive Officer
    
	
 
    	
 
    
	
 
    	
TENANT:
    
	
 
    	
INPLANE PHOTONICS, INC., a Delaware corporation
    
	
 
    	
 
    
	
 
    	
By:   
    	
/s/   Ettore J. Coringrato
    
	
 
    	
Name:   
    	
Ettore   J. Coringrato
    
	
 
    	
Title:   
    	
President   and CEO
    

 

	
STATE   OF
    	
 
    	
)
    	
 
    
	
 
    	
SS.:
    	
 
    	
 
    
	
COUNTY   OF
    	
 
    	
)
    	
 
    

 

BE IT REMEMBERED, that on the     day of                                 , 2011, before me, the subscriber, a notary public of the State of                              , personally appeared                                            , the                                       of Inplane Photonics, Inc. who, I am satisfied, is the person who signed the within instrument; and I having first made known to him the contents thereof, he thereupon acknowledged that he signed, sealed with the corporate seal, and delivered the said instrument as such                                    aforesaid, and that the within instrument is the voluntary act and deed of                                    , made by virtue of the authority of                     

 

	
 
    	
 
    
	
 
    	
NOTARY   PUBLIC
    

 

	
STATE   OF NEW YORK
    	
)
    	
 
    
	
 
    	
 
    	
SS.:
    	
 
    
	
COUNTY   OF WESTCHESTER 
    	
)
    	
 
    
				

 

BE IT REMEMBERED, that on the 10th day of February 2011, before me, the subscriber, a notary public of the State of New York, personally appeared Robert C. Baker Chief Executive Officer of MBC 600 Building Corp., general partner of MBC 60 L.P., who, I am satisfied, is the person who signed the within instrument; and I having first made known to him the contents thereof, he thereupon acknowledged that he signed and delivered the said instrument as such officer aforesaid, and that the within instrument is the voluntary act and deed of said corporation as said general partner, made by virtue of the authority of its board of directors.

 

	
 
    	
/s/   WAYNE E. HELLER
    
	
 
    	
NOTARY   PUBLIC
    
	
 
    	
 
    
	
 
    	
WAYNE E. HELLER
    
	
 
    	
Notary Public, State Of New York
    
	
 
    	
No. 02HE6062858
    
	
 
    	
Qualified In Westchester County
    
	
 
    	
Commission Expires August 20, 2013
    

 

	
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