Document:

Exhibit 10.1

 

SEVENTH AMENDMENT TO LEASE

 

THIS SEVENTH AMENDMENT TO LEASE (this “Amendment”) is dated for reference purposes only as of June 30, 2018 (the “Seventh Amendment Date”), by and between GI TC ONE WILSHIRE, LLC, a Delaware limited liability company (“Landlord”), and CORESITE ONE WILSHIRE, L.L.C., a Delaware limited liability company (formerly known as CRG West One Wilshire, L.L.C.) (“Tenant”).

 

RECITALS:

 

A.                                    Hines REIT One Wilshire L.P., a Delaware limited partnership (“Hines”) and Tenant entered into that certain Lease dated as of August 1, 2007 (the “Original Lease”), as amended by that certain: (i) First Amendment to Lease dated as of May 1, 2008 (the “First Amendment”) between Hines and Tenant; (ii) Second Amendment to Lease dated as of November 5, 2009 (the “Second Amendment”) between Hines and Tenant; (iii) Third Amendment to Lease dated as of June 15, 2011 (the “Third Amendment”) between Hines and Tenant; (iv) Fourth Amendment to Lease dated as of January 9, 2013 (the “Fourth Amendment”) between Hines and Tenant; (v) Fifth Amendment to Lease dated as of May 29, 2015 (the “Fifth Amendment”) between Landlord (as successor-in-interest to Hines) and Tenant; and (vi) Sixth Amendment to Lease dated as of April 29, 2016, between Landlord and Tenant (the “Sixth Amendment”).

 

B.                                    The Original Lease, the First Amendment, the Second Amendment, the Third Amendment, the Fourth Amendment, the Fifth Amendment and the Sixth Amendment are collectively referred to herein as the “Existing Lease.”  Unless specifically indicated to the contrary, references in this Amendment to a definition in or section of the Original Lease shall mean such definition in or such section of the Original Lease as may have been amended in the First Amendment, Second Amendment, Third Amendment, Fourth Amendment, Fifth Amendment or Sixth Amendment.

 

C.                                    Certain capitalized terms used in this Amendment are defined on Schedule 1, and an index of all capitalized terms used in this Amendment is attached as the last page.  Construction and interpretation matters with respect to this Amendment are governed by Section 21.

 

D.                                    Pursuant to the Existing Lease, as of the Seventh Amendment Date, (i) Tenant leases from Landlord certain premises consisting of approximately 159,447 rentable square feet inclusive of 2,301 rentable square feet in the Storage Space (the “Existing Premises”) within that certain office building located at 624 S. Grand Avenue, Los Angeles, California (the “Building”); (ii) Tenant has the right to use certain Conduits (as defined in Section 6.9.3 of the Original Lease) that existed in the Building as of the date of the Original Lease; (iii) Tenant is licensing space in the Building to install and use the First Amendment Additional Conduits, the Second Amendment CS Additional Conduits, the Second Amendment TWC Additional Conduits, the Third Amendment CS Conduit, the Fourth Amendment Conduits, the Fifth Amendment Conduits, and the Sixth Amendment Conduits (collectively the “Existing Amendment Conduits”) during their respective terms; and (iv) the Lease Term expires on July

 

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31, 2022, the period of the Lease Term from and including August 1, 2017, through and including July 31, 2022, being defined in the Fourth Amendment as the Extended Term.

 

E.                                     From and after the Seventh Amendment Date, references to “this Lease” or “the Lease” in the Existing Lease, shall all mean and refer to the Existing Lease, as amended by this Amendment.

 

F.                                      By letter dated August 4, 2017, Tenant exercised its rights under Article 21 of the Original Lease to lease the First Offer Space identified by Landlord in a letter dated July 21, 2017 (the “July 2017 ROFO Notice”).  Subsequent to such August 4, 2017, exercise letter, Landlord and Tenant agreed to certain economic and non-economic terms with respect to the expansion of the Existing Premises and the Existing Amendment Conduits in addition to and, in some respects, different from those set forth in the July 2017 ROFO Notice.

 

G.                                    Landlord and Tenant now desire to amend the Existing Lease to:  (i) further extend (a) the Lease Term, and (b) each of the First Amendment Additional Conduit Term, the Second Amendment CS Additional Conduits Term, the Second Amendment TWC Additional Conduits Term, the Third Amendment CS Conduits Term, the Fourth Amendment Conduit Term, and the respective terms of each of the Fifth Amendment Conduits and the Sixth Amendment Conduits (collectively, the “Existing Amendment Conduit Terms”); (ii) provide for an expansion of the Premises to include a portion of the 15th floor of the Building containing approximately 17,238 rentable square feet as depicted on Exhibit A (“Suite 1500”); (iii) provide for the licensing of additional space in the Building for Tenant to install and use additional conduits; and (iv) modify various other terms and provisions of the Existing Lease, all as hereinafter provided.

 

AGREEMENT:

 

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

 

1.                                      Recitals Incorporated.  The Recitals set forth above are incorporated herein by this reference and shall be deemed terms and provisions hereof with the same force and effect as if fully set forth in this Section.

 

2.                                      Extension of Lease Term.

 

2.1                               The Lease Term is extended for a period of seven (7) years (the “Second Extended Term”) beginning on August 1, 2022 (the “Second Extended Term Commencement Date”) and ending on July 31, 2029 (the “Second Extended Term Expiration Date”), and the Existing Amendment Conduit Terms are each extended to expire on the Second Extended Term Expiration Date.

 

2.2                               All terms of the Existing Lease shall apply during the Second Extended Term, except that (i) the Base Rent and fixed monthly amounts payable by Tenant to Landlord shall be as specified in this Amendment, (ii) except as expressly provided in this Amendment, Landlord shall not be obligated to perform, provide or pay for any improvement, remodeling or

 

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refurbishment of the Premises, the Supplemental Areas and the Supplemental Equipment, and (iii) Tenant shall occupy and accept the Premises in its then “AS IS” condition as of the Second Extended Term Commencement Date.

 

2.3                               Tenant shall continue to have three (3) consecutive options to further extend the Lease Term for a period of five (5) years each with respect to the Premises or any Identified Portion, which shall be exercised by Tenant, if at all, pursuant to and in accordance with Section 2.2 of the Original Lease (except that the phrase “Articles 8.2 and 14 of this Lease” in the last sentence of Section 2.2.1 of the Original Lease is modified to be “Articles 8.3 and 14 of this Lease”).

 

2.4                               From and after the Seventh Amendment Date, Tenant’s Share with respect to the Premises other than Suite 1500 shall be 23.82% (being (i) 157,554 rentable square feet in the Premises (reflecting the exclusion of the Storage Space and Suite 1500), divided by (ii) 661,553 rentable square feet in the Building, stated as a percentage rounded to two decimals).  Tenant’s Share with respect to Suite 1500 is described in Section 4.5.

 

3.                                      Base Rent.  Notwithstanding anything to the contrary contained in the Existing Lease, during the Second Extended Term, Base Rent payable under the Lease for the Premises and other fixed monthly rent payable under the Lease for the Existing Amendment Conduits and the Seventh Amendment Conduits shall be as follows:

 

3.1                               Base Rent payable for the Existing Premises shall continue to be determined in accordance with Section 3.2 of the Original Lease, with the Adjustment Date to be the Second Extended Term Commencement Date and each anniversary thereof.

 

3.2                               Base Rent payable for Suite 1500 shall be as determined in accordance with Section 4.3.

 

3.3                               Fixed monthly rent payable under the Lease for the Existing Amendment Conduits shall be as determined in accordance with Exhibit I.

 

3.4                               Fixed monthly rent payable under the Lease for the Seventh Amendment Conduits shall be as determined in accordance with Section 14.

 

4.                                      Expansion of Premises with Suite 1500.  The Existing Premises shall be expanded to include Suite 1500 as follows:

 

4.1                               Delivery.  Landlord shall use commercially reasonable efforts to deliver Suite 1500 to Tenant (i) vacant, broom clean and free of all third party personal property; and (ii) with the Corridor Extension Work, the Asbestos Remediation Work and the Structural Work (collectively, the “Suite 1500 Work”) Substantially Completed not later than the date that is one hundred eighty (180) days after the date of Landlord’s signature to this Amendment.  Following the date Landlord delivers Suite 1500 to Tenant with the Suite 1500 Work Substantially Completed (the “Suite 1500 Delivery Date”), Landlord shall perform with respect to the restrooms on the fifteenth (15th) floor of the Building, all work required to cause such restrooms to comply with the Americans with Disabilities Act in effect as of the Suite 1500 Delivery Date and to the extent such requirements are imposed with respect to work performed by Tenant in

 

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Suite 1500 prior to the Suite 1500 Commencement Date.  If prior to the Suite 1500 Delivery Date, Landlord reasonably determines or otherwise has knowledge that delivery of Suite 1500 in the condition required by this Section 4.1 (“Suite 1500 Delivery”) may not occur on or before the Suite 1500 Delivery Date, Landlord shall promptly provide Notice to Tenant of the reasons for and estimated length of the delay, and Landlord’s plan (if feasible) to address such delay.  If Suite 1500 Delivery has not occurred on or before the date that is 180 days after the Suite 1500 Delivery Date (the “Suite 1500 Outside Date”), Tenant shall have the right at any time after the Suite 1500 Outside Date, and prior to the earlier of 1500 Delivery or thirty (30) days after the Suite 1500 Outside Date, to elect not to lease Suite 1500 by delivery of Notice to Landlord, in which event this Section 4 shall terminate and all references in this Amendment to Suite 1500 shall be of no force or effect.  Notwithstanding anything to the contrary herein or in the Existing Lease, Tenant shall have the right to access, and Landlord shall provide Tenant with access to, Suite 1500 not later than September 15, 2018, for the purposes of performance of Tenant’s improvement work in Suite 1500, provided that (a) during such early access all terms of the Lease shall apply to Suite 1500 other than terms for the payment of Base Rent, Tenant’s Share of Direct Expenses payable with respect to Suite 1500, Tenant’s Suite 1500 Share of Condenser Water System Expenses and Tenant’s Suite 1500 Share of Supplemental Generators Expenses, and (b) such early access shall not impact the Suite 1500 Lease Term or the Suite 1500 Commencement Date.

 

4.2          Term.  The Lease Term with respect to Suite 1500 (the “Suite 1500 Term”) shall commence on the date (the “Suite 1500 Commencement Date”) that is the earlier of (i) the later of the date that is (a) one hundred eighty (180) days after Substantial Completion of the Suite 1500 Work, and (b) thirty (30) days after the date on which Power and Cooling Work Substantial Completion has occurred; or (ii) the date on which Tenant commences business operations in all or any part of Suite 1500, and shall expire concurrently with the expiration of the Second Extended Term.  During the Suite 1500 Term, except to the extent specifically provided for in Section 4, Suite 1500 shall be leased subject to all of the terms and conditions of the Lease applicable to the Premises.  During the period beginning on the Suite 1500 Delivery Date and ending on the day preceding the Suite 1500 Commencement Date, all terms of the Lease shall apply to Suite 1500 other than terms for the payment of Base Rent, Tenant’s Share of Direct Expenses payable with respect to Suite 1500, Tenant’s Suite 1500 Share of Condenser Water System Expenses and Tenant’s Suite 1500 Share of Supplemental Generators Expenses.

 

4.3                               Base Rent.  Base Rent for Suite 1500 shall (i) be payable in the amount of One Hundred Fifty Thousand Dollars ($150,000) per month for the first year of the Suite 1500 Term, (ii) increase on each annual anniversary of the Suite 1500 Commencement Date at the rate of three percent (3%) per annum on a cumulative and compounded basis, and (iii) so long as no Default is then continuing, shall be abated during the sixty (60) day period beginning on the Suite 1500 Commencement Date.

 

4.4                               Condition.  Except as specifically set forth in this Amendment, including with respect to the Power and Cooling Work, the Suite 1500 Work and the Suite 1500 Connection Allowance, Landlord shall not be obligated to perform, provide or pay for any improvements, work or services related to the improvement, remodeling or refurbishment of Suite 1500, and Tenant shall occupy and accept Suite 1500 in its “AS IS” condition.

 

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4.5                               Tenant’s Share.  During the Suite 1500 Term, (i) Tenant’s Share with respect to Suite 1500 shall be 2.61% (calculated as 17,238 rentable square feet in Suite 1500, divided by 661,553 rentable square feet in the Building, stated as a percentage rounded to two decimals), and (ii) Tenant’s Share of Direct Expenses with respect to Suite 1500 shall be determined in accordance with Article 4 of the Original Lease using a Base Year of calendar year 2018.

 

5.                                      Supplemental Generators.

 

5.1                               Installation.  In accordance with Section 11, Landlord shall install, at Landlord’s sole cost and expense (and no portion of such costs or expenses of installation shall be passed through to Tenant, including as a Direct Expense or a Supplemental Generator Expense), and shall thereafter maintain in good order, condition and repair during the Suite 1500 Term, three (3) generators having the capacity and other specifications described in Part 1 of Exhibit B and installed in material compliance with the drawing attached hereto as Exhibit C, subject to modifications required to comply with Applicable Laws and to conform to field conditions (the “Supplemental Generators”); provided that Landlord shall deliver Notice to Tenant of all such modifications that impact Tenant’s connection to the Supplemental Generators or use of Suite 1500 Backup Power.

 

5.2                               Power.  The Supplemental Generators shall be available at all times during the Suite 1500 Term to provide electrical back-up power (“Suite 1500 Backup Power”) to Suite 1500 in the event electrical power is not available to Suite 1500 from the Base Electrical Systems (“Suite 1500 Primary Power”).

 

5.3          Capacity; Other Supplemental Generators.  The Supplemental Generators are anticipated to have at least the capacity, and be configured, as described in Part 1 of Exhibit B.  The capacity of the Supplemental Generators is subject to verification from time-to-time by Landlord’s engineer and such verification shall be made in accordance with the terms of this Section.  If Landlord’s engineer determines that the capacity of the Supplemental Generators is different from that described in Part 1 of Exhibit B, including because Landlord elects to make available, as described in the following sentence, supplemental generators in addition to the Supplemental Generators, then (i) such change in capacity shall be promptly confirmed in writing by Landlord to Tenant, and (ii) any adjustment of Tenant’s Share of Supplemental Generators Expenses shall be governed by Section 12.1.6.  Landlord may elect to make available to Suite 1500 back-up electrical power from supplemental generators in addition to the Supplemental Generators.  If Landlord so elects, then (a) such additional generators shall be included in the term Supplemental Generators and Landlord shall deliver notice of the same to Tenant at least thirty (30) days prior to the date such additional supplemental generators become operational in the event the same may adversely affect Tenant’s draw of power from the Supplemental Generators, and (b) any adjustment of Tenant’s Share of Supplemental Generators Expenses shall be governed by Section 12.1.6 and promptly confirmed in writing by Landlord to Tenant.

 

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6.                                      Power Connection to Suite 1500.

 

6.1          Power Connection Work.  In accordance with Section 11, Landlord shall install, at Landlord’s sole cost and expense (and no portion of such costs or expenses of installation shall be passed through to Tenant, including as a Direct Expense) except as described in Section 6.2, and shall thereafter maintain in good order, condition and repair during the Lease Term, (i) medium voltage switchgear in the Suite 1610 Power Room necessary for Suite 1500 to draw Suite 1500 Primary Power and Suite 1500 Backup Power (the “Power Demarcation Point”); (ii) conduit and wiring from the Power Demarcation Point to Landlord’s switchgear located on the fourth floor of the Building; and (iii) the breakers connecting to Landlord’s switchgear located on the fourth (4th) floor of the Building (collectively, together with the Power Demarcation Point, the “Power Connection Components”).  The Power Connection Components shall have the specifications described in Part 3 of Exhibit B and shall be installed in material compliance with the drawing attached hereto as Exhibit C, subject to modifications required to comply with Applicable Laws and to conform to field conditions; provided that Landlord shall deliver Notice to Tenant of all such modifications that impact Tenant’s connection to the Power Demarcation Point or use of the other Power Connection Components or the Suite 1500 Primary Power or Suite 1500 Backup Power.  “Suite 1610 Power Room” means the approximately 1,463 square foot restricted access area on the 16th floor of the Building identified on Exhibit E as the Suite 1610 Power Room, which area shall accessible only by Landlord, Tenant and third parties escorted by Landlord.  The Suite 1610 Power Room is deemed to be a Supplemental Area and all equipment installed by Tenant within the Suite 1610 Power Room shall be deemed to be Supplemental Equipment.

 

6.2                               Suite 1500 Primary Power and Supplemental Generator Connection.  Following installation of the Supplemental Generators and the Power Connection Components, Tenant shall, at Tenant’s sole cost and expense, have the right (i) in accordance with plans and specifications therefor approved by Landlord pursuant to, and otherwise in accordance, with Article 8 of the Original Lease, to install in the Suite 1610 Power Room, and (ii) thereafter to use and maintain, unit substations and conduit and wiring (the “Suite 1500 Primary Power and Supplemental Generator Connection”) connecting Suite 1500 to the Power Demarcation Point exclusively for the purpose of accessing Suite 1500 Primary Power and Suite 1500 Backup Power.  Within thirty (30) days after a written request therefor, which request may not be delivered by Landlord prior to the date on which Power and Cooling Work Substantial Completion occurs, Tenant shall reimburse Landlord for $175,000 of the costs incurred by Landlord to purchase and install the Power Connection Components.

 

6.3          Suite 1500 Connection Allowance.  As an inducement for Tenant to enter into this Seventh Amendment (which inducement is intended to be a lease inducement for federal tax purposes), Landlord shall provide Tenant with an allowance in the amount of Five Hundred Thousand Dollars ($500,000) (the “Suite 1500 Connection Allowance”) in order to assist Tenant to pay for the cost of purchasing, installing and commissioning equipment materials and labor to complete the Suite 1500 Primary Power and Supplemental Generator Connection.  The Suite 1500 Connection Allowance shall be disbursed by Landlord only for equipment, materials and labor to complete the Suite 1500 Primary Power and Supplemental Generator Connection.  Landlord shall have no obligation to advance any portion of the Suite 1500 Connection Allowance until Landlord has approved the final plans and specifications, the contractor, and all

 

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subcontractors for the Suite 1500 Primary Power and Supplemental Generator Connection in accordance with this Amendment.  In order to receive a disbursement of the Suite 1500 Connection Allowance, Tenant shall deliver to Landlord a written request for disbursement, which written request shall be accompanied by:  (i) a copy of the invoices for which reimbursement is being sought; (ii) mechanics’ and materialmen’s lien releases from the contractor, all subcontractors and all materials suppliers for all work, labor, services and materials for which reimbursement is being sought, which lien releases shall be in form reasonably satisfactory to Landlord; and (iii) all other information reasonably requested by Landlord with respect to the subject work and the costs for which reimbursement is being sought.  Provided that:  (a) the foregoing information is delivered to Landlord; (b) the work and materials for which reimbursement is being sought have been completed in accordance with the final plans and specifications for the same approved by Landlord; and (c) no Default is then continuing, Landlord shall deliver a payment to Tenant in an amount equal to the amount set forth in Tenant’s subject request.  Landlord shall not be required to disburse pursuant to this Section any amount in excess of the Suite 1500 Connection Allowance.

 

6.4                               License.  Landlord hereby grants to Tenant a non-exclusive license during the Suite 1500 Term to access the Suite 1610 Power Room, the Power Demarcation Point and Tenant’s switch thereon and the path of the Suite 1500 Primary Power and Supplemental Generator Connection conduit and wiring for the purpose of maintaining the Suite 1500 Primary Power and Supplemental Generator Connection.  If after installation thereof Tenant desires to remove, replace, alter or otherwise modify any equipment or systems comprising the Suite 1500 Primary Power and Supplemental Generator Connection (such modification, the “Suite 1500 Primary Power and Supplemental Generator Connection Alteration Work”), except for an Increase in Capacity (which shall be governed by Section 7.5), Tenant shall deliver to Landlord a written request specifying such work and Tenant shall, at Tenant’s sole cost and expense, perform such work in accordance with plans and specifications therefor that are submitted by Tenant to Landlord with such request and approved by Landlord pursuant to, and otherwise in accordance with, Article 8 of the Original Lease.

 

7.                                      Suite 1500 Power.

 

7.1                               General.  At all times during the Suite 1500 Term, Landlord shall provide to, and Tenant shall have the right to utilize, Suite 1500 Primary Power through the Suite 1500 Primary Power and Supplemental Generator Connection up to, but not exceeding, 2,100 KW of electrical power at 4,160 volts, 3 phase wiring (the “Maximum Allocation of Suite 1500 Power”) for Tenant’s operations in Suite 1500, including the Suite 1500 CRAC Units.  In the event of an interruption in the provision of Suite 1500 Primary Power, Tenant’s draw of Suite 1500 Backup Power may not exceed the Maximum Allocation of Suite 1500 Power.

 

7.2                               Metering; Payment.  Tenant shall, at its sole cost and expense, install devices that allow Landlord to separately measure the volume of Suite 1500 Primary Power.  Work performed by Tenant under this Section shall be performed by Tenant at its sole cost and expense and pursuant to plans and specifications submitted to and approved by Landlord pursuant to, and otherwise in accordance with, Article 8 of the Original Lease.  Tenant shall pay to Landlord, within thirty (30) days after receipt of an invoice therefor, all charges for electrical power usage shown by such measuring devices.

 

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7.3                               Limitation on Landlord Obligations.  Notwithstanding anything to the contrary contained in the Lease, Landlord’s obligation to provide electrical power to Suite 1500 from the Base Electrical Systems and the Supplemental Generators shall be subject to any limitations due to applicable electrical code requirements regarding circuit breaker protection and/or any other Applicable Laws and Force Majeure Events.  Tenant acknowledges and agrees that, except for Landlord’s obligation to install the Supplemental Generators and the Power Connection Components and pay the Suite 1500 Connection Allowance, Landlord shall have no obligation to perform, provide, or pay for any taps, circuit breakers, automatic transfer switches, electrical panels, ducts, conduits, wiring, cables, connection equipment or distribution equipment, or any alterations, upgrades, replacements, additions, and/or improvements of or to the Base Electrical Systems, the Supplemental Generators or any Supplemental Equipment necessary or desirable for Suite 1500 to draw all or any portion of the Suite 1500 Primary Power or the Suite 1500 Backup Power.

 

7.4                               Limitation on Reallocation of Power.  Notwithstanding anything to the contrary set forth in the Lease, Tenant shall not (i) reallocate to Suite 1500 (a) all or any portion of the electrical power from the Base Electrical Systems allocated to other portions of the Premises; or (b) in the event of an interruption in the provision of Suite 1500 Primary Power, all or any portion of electrical power from the Generators (as defined in Section 11.1 of the Fourth Amendment); or (ii) reallocate to any other portion of the Premises (a) all or any portion of the Suite 1500 Primary Power, or (b) in the event of an interruption in the provision of electrical power to other portions of the Premises, all or any portion of the Suite 1500 Backup Power.

 

7.5                               Increase in Capacity.  Tenant shall not modify any element of the Building or improvement or equipment located therein so as to increase the volume of electrical power which may be supplied to Suite 1500 from the Base Electrical Systems and/or from the Supplemental Generators beyond the Maximum Allocation of Suite 1500 Power (each, an “Increase in Capacity”) without Landlord’s consent, which consent shall be granted or withheld in Landlord’s sole discretion.

 

8.                                      Maximum Building Power Amount, Maximum Generator Power Amount, Riser Allocation Amount and Generator Allocation Amount.  During the Second Extended Term, the Maximum Building Power Amount, the Maximum Generator Power Amount, the Riser Allocation Amount, and the Generator Allocation Amount shall remain unchanged from the same amounts in place immediately prior to the Second Extended Term Commencement Date regardless of the expiration of the Lease Term with respect to the RP Eliminated Space (as defined in Section 2.2 of the Sixth Amendment).

 

9.                                      Use of U2 Riser.  Section 11.10.1.2 of the Fourth Amendment is amended and restated in its entirety to read as follows:

 

“Tenant shall have the right to draw up to, but not exceeding, 2,500 amps of Power from the U2 Riser for Tenant’s use in any or all of the Draw Space that Tenant elects to be served by the U2 Riser (and, as to Draw Space other than the Direct Power Suites, that Tenant connects to the U2 Riser pursuant to this Section 11) only in the case of maintenance on the U-5 Riser and subject to Landlord’s approval, not to be unreasonably withheld, conditioned or delayed, except in an

 

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emergency, in which event no such approval shall be required but Tenant shall deliver notice to Landlord of such connection as soon as reasonably practical.  Tenant’s right to draw such Power from the U2 Riser shall include the right to draw up to 2,500 amps of Power from each of bus duct risers “U2a” and “U2b” so long as Tenant’s draw of Power from the U2 Riser supplied by a public utility provider does not exceed 2500 amps.”

 

10.                               Condenser Water System.

 

10.1                        Installation.  Landlord shall install, at Landlord’s sole cost and expense (and no portion of such costs or expenses of installation shall be passed through to Tenant, including as a Direct Expense or a Condenser Water Expense), and thereafter maintain in good order, condition and repair during the Suite 1500 Term, a condenser water system in the Building having the capacity and other specifications described in Part 2 of Exhibit B and installed in material compliance with the depiction on Exhibit D, subject to modifications required to comply with Applicable Laws and to conform to field conditions (the “Condenser Water System”); provided that Landlord shall deliver Notice to Tenant of all such modifications that impact Tenant’s connection to the Condenser Water System or use of condenser water from the Condenser Water System in and with respect to Suite 1500 (“Suite 1500 Condenser Water”).

 

10.2                        Suite 1500 Condenser Water.  At all times during the Suite 1500 Term, Landlord shall make available, and Tenant shall have the right to utilize, only for purposes of serving Suite 1500, up to, but not exceeding, four hundred fifty-one (451) tons of Suite 1500 Condenser Water plus, when required by outside environmental conditions, the compressor energy of the cooling units that meet the Building standard performance criteria (the “Maximum Allocation of Suite 1500 Cooling Capacity”).

 

10.3        Capacity.  The Condenser Water System is anticipated to initially have at least one thousand one hundred (1,100) tons of cooling capacity and, at Landlord’s election, may be expanded in the future.  The capacity of the Condenser Water System is subject to verification from time-to-time by Landlord’s engineer and such verification shall be made in accordance with the terms of this Section.  If Landlord’s engineer determines that the capacity of the Condenser Water System is different from that described in this Section 10.3, including as a result of Landlord expanding the capacity of the Condenser Water System, then (i) such change in capacity shall be promptly confirmed in writing by Landlord to Tenant, and (ii) any adjustment of Tenant’s Share of Condenser Water System Expenses shall be governed by Section 12.1.5.  Notwithstanding the above, during the Suite 1500 Term, Suite 1500 shall be allocated the Maximum Allocation of Suite 1500 Cooling Capacity.  In no event shall Tenant use more than the Maximum Allocation of Suite 1500 Cooling Capacity from the Condenser Water System.

 

10.4                        Metering.  Tenant shall, at its sole cost and expense, install devices in accordance with plans and specifications for the same approved by Landlord pursuant to, and otherwise in accordance with, Article 8 of the Original Lease that allow Landlord to separately measure the volume of Suite 1500 Condenser Water.  Landlord reserves the right to audit Tenant’s use of Suite 1500 Condenser Water.

 

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10.5                        Suite 1500 CRAC Units.

 

10.5.1              Tenant shall be solely responsible, at Tenant’s cost and expense, for providing all computer room air conditioning units to serve the Suite 1500 (the “Suite 1500 CRAC Units”).  Landlord shall have no obligation to provide any Suite 1500 CRAC Units or any other heating, ventilation or air conditioning for Suite 1500 other than permitting Tenant to connect the Suite 1500 CRAC Units to the Condenser Water System.  Electrical usage for the Suite 1500 CRAC Units shall be part of the Suite 1500 Premises Power.

 

10.5.2              Tenant shall have the right to (i) install Suite 1500 CRAC Units in Suite 1500 of such size, weight and other specifications as Tenant reasonably determines necessary for the proper heating, ventilation and cooling of Suite 1500, provided that the size, weight and all other specifications of such Suite 1500 CRAC Units are compatible with the Building Systems, meet the then applicable Building standards for data center tenants, and meet the load requirements of the Building, and (ii) operate the Suite 1500 CRAC Units twenty-four (24) hours per day, seven (7) days per week.  The installation of the Suite 1500 CRAC Units shall be performed at Tenant’s sole cost and expense by a contractor reasonably approved by Landlord, pursuant to plans and specifications for the same approved by Landlord pursuant to, and otherwise in accordance with, Article 8 of the Original Lease.  Tenant shall, at Tenant’s sole cost and expense, cause Suite 1500 CRAC Units to be and remain in a good working order and condition during the Suite 1500 Term.  In addition, Tenant shall, at its cost, obtain and maintain property insurance with respect to the Suite 1500 CRAC Units in accordance with Section 9.3 of the Original Lease.

 

10.6                        Suite 1500 Condenser Water Over-Load Condition.

 

10.6.1              Generally.  A “Suite 1500 CW Over-Load Condition” shall mean that Tenant’s actual draw of Suite 1500 Condenser Water exceeds the Maximum Allocation of Suite 1500 Cooling Capacity.  Tenant acknowledges and agrees that (i) Landlord’s provision of condenser water from the Condenser Water System, including, without limitation, to the premises of the other tenants and occupants of the Building, is integral to the operation and management of the Building and the business operations of the other tenants and occupants of the Building, (ii) the occurrence of a Suite 1500 CW Over-Load Condition may cause or result in interruptions in Landlord’s provision of condenser water to the premises of other tenants and occupants of the Building, and (iii) accordingly, it is of the utmost importance to Landlord that a Suite 1500 CW Over-Load Condition does not occur.  In connection with the foregoing, Tenant shall (a) prudently monitor Tenant’s draw of Suite 1500 Condenser Water, and (b) avoid the occurrence of a Suite 1500 CW Over-Load Condition at any time and cause the immediate cessation of any Suite 1500 CW Over-Load Condition which occurs.

 

10.6.2              Landlord’s Remedies.  If a Suite 1500 CW Over-Load Condition occurs, then, in addition to any other rights and remedies Landlord may have under the Lease, at law and/or in equity, the following shall apply:  (i) Tenant shall take such actions as are necessary to cause the cessation of such Suite 1500 CW Over-Load Condition as soon as possible after Tenant has knowledge thereof; and (ii) Tenant shall indemnify, defend, protect, and hold harmless Landlord and the Landlord Parties from and against all Claims to the extent arising from the occurrence of such Suite 1500 CW Over-Load Condition.  If a Suite 1500 CW

 

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Over-Load Condition continues for more than 48 consecutive hours after Landlord delivers notice to Tenant thereof, then Landlord may, without further notice, take such actions as are necessary in Landlord’s sole and absolute discretion, to cause the cessation of such Suite 1500 CW Over-Load Condition (including shutting off condenser water to the connections through which Tenant draws Suite 1500 Condenser Water) (any such action by Landlord, a “Landlord CW Curative Action”).  If Landlord takes any Landlord CW Curative Action, then Tenant shall, within 30 days after Tenant’s receipt of an invoice therefor, reimburse Landlord for all actual, out-of-pocket costs incurred by Landlord in taking such Landlord CW Curative Action, plus interest thereon at 10% per annum from the date incurred.  If a Suite 1500 CW Over-Load Condition occurs more than 2 times during any consecutive 12 month period, then within 10 days after Tenant’s receipt of a written request from Landlord therefor, Tenant shall modify the connections to Suite 1500 from the Condenser Water System such that, after the completion of such work, a Suite 1500 CW Over-Load Condition cannot physically occur (such work, a “Tenant Suite 1500 Condenser Water Action”).  Each Tenant Suite 1500 Condenser Water Action shall be performed by Tenant, at Tenant’s cost and expense, pursuant to and in accordance with Article 8 of the Original Lease and the applicable provisions of Section 2.1 of the Summary and Section 6.9 of the Original Lease.

 

10.6.3              Indemnification.  Tenant agrees that, to the extent not prohibited by Applicable Laws and other than to the extent arising out of the gross negligence or willful misconduct of Landlord or the Landlord Parties (but subject to the applicable waiver and limitations in Section 9.4 of the Original Lease), Landlord and the Landlord Parties shall not be liable for, and are hereby released from any responsibility for, any and all costs, damages, expenses, fines, fees, injuries, liabilities and losses sustained by Tenant or the Tenant Parties, or by other persons claiming through Tenant or the Tenant Parties, as a result of or in connection with any Landlord CW Curative Action.

 

11.                               Timing for Performance of Power and Cooling Work.  Landlord shall use commercially reasonable efforts to cause Power and Cooling Work Substantial Completion to occur by January 14, 2019, subject to extension for periods of Force Majeure Events and Tenant Delays (such date, as extended by Force Majeure Events and Tenant Delays, the “Target Power and Cooling Work Completion Date”).  “Power and Cooling Work” means the installation of the Condenser Water System, the Supplemental Generators and the Power Connection Components.  “Power and Cooling Work Substantial Completion” means (i) the Condenser Water System is operational and capable to provide the Maximum Allocation of Suite 1500 Cooling Capacity to Suite 1500, (ii) the Supplemental Generators and the Power Connection Components are operational and capable to provide the Maximum Allocation of Suite 1500 Power and Suite 1500 Backup Power to the Suite 1610 Power Room, and (iii) the Power Connection Components are operational and capable to permit Tenant to install and operate the Suite 1500 Primary Power and Supplemental Generator Connection and draw Suite 1500 Primary Power and Suite 1500 Back-up Power.  “Tenant Delay” shall mean any actual delay in the completion of work to be performed by Landlord caused solely and directly a result of:  (a) Tenant’s written request for changes to the specifications or other matters on Exhibit B, Exhibit C and/or Exhibit D attached hereto; (b) Tenant’s written request for changes in the subject work or other improvements or equipment in the Building which Landlord agrees to make, with no obligation of Landlord to do so; (c) Tenant’s failure to comply with the terms of the Lease; (d) any written request by Tenant that Landlord delay the work or any portion thereof which

 

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Landlord agrees to accommodate, with no obligation of Landlord to do so; or (e) any other act or omission of Tenant or any other Tenant Party.  If Power and Cooling Work Substantial Completion does not occur on or before the Target Power and Cooling Work Completion Date, then Landlord will provide Tenant with a credit against Base Rent for Suite 1500 next payable by Tenant in an amount equal to 1/365th of the annual rate of Base Rent for Suite 1500 payable for the first year of the Suite 1500 Term, for each day which occurs during the period beginning on the day immediately following the Target Power and Cooling Work Completion Date and ending on the day which immediately precedes the day on which Power and Cooling Work Substantial Completion occurs; provided, however, in no event shall such period of credit exceed thirty (30) days, and Landlord shall not have any other liability to Tenant and this Amendment shall not be rendered void or voidable as a result thereof.  Notwithstanding the foregoing or anything to the contrary in the Lease, if Power and Cooling Work Substantial Completion has not occurred on or before the date that is 180 days after the Target Power and Cooling Work Completion Date (the “P&C Outside Date”), Tenant shall have the right at any time after the P&C Outside Date, and prior to the earlier of the occurrence of Power and Cooling Work Substantial Completion or thirty (30) days after the P&C Outside Date, to elect not to lease Suite 1500 by delivery of Notice to Landlord, in which event Section 4 and all references in this Amendment to Suite 1500 shall be of no force or effect.

 

12.                               Condenser Water System Expenses and Supplemental Generators Expenses.

 

12.1                        The following terms shall have the meanings hereinafter set forth:

 

12.1.1              “Amortization Interest Rate” shall mean ten percent (10%) per annum.

 

12.1.2              “Condenser Water System Expenses” shall mean all expenses, costs and amounts which Landlord shall incur during any Suite 1500 Expense Year because of or in connection with the ownership, management, maintenance, repair, replacement, restoration or operation of the Condenser Water System, including, without limitation, any amounts paid for:  (i) the cost of electricity and water to operate the Condenser Water System, (ii) the cost of supplies and equipment and maintenance and service contracts in connection therewith; (iii) the cost of licenses, certificates, permits and inspections and the cost of contesting the validity or applicability of any governmental enactments which affect the same; (iv) fees, charges and other costs of all contractors engaged by Landlord or otherwise reasonably incurred by Landlord in connection with the management, operation, maintenance and repair of the same; (v) annual amortization (including interest on the unamortized cost at the Amortization Interest Rate of the cost of acquiring, or the rental expense of renting, personal property used in the maintenance, operation and repair of the Condenser Water System (if the personal property is not used exclusively for the Condenser Water System then only the costs associated with the proportionate share actually used for the Condenser Water System shall be included); (vi) a reasonable allocation of compensation payable to the Building engineers reflecting the actual work of such engineers solely with respect to the Condenser Water System; and (vii) annual amortization (including interest on the unamortized cost at the Amortization Interest Rate) of the cost of any capital alterations, capital additions, capital repairs and capital improvements (a) which are intended as a labor-saving device or to effect other economies in the operation or maintenance of the Condenser Water System (collectively, the “Condenser Water System Cost

 

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Saving Capital Items”), (b) made to the Condenser Water System after the Seventh Amendment Date that are required under any Applicable Laws not in effect on the Seventh Amendment Date, or (c) which are reasonably determined by Landlord to be reasonably required after the Substantial Completion of the Condenser Water System to maintain the functionality of the Condenser Water System in a first-class condition.  All costs described in Section 12.1.2(vii) and the amortization of any other capital expenditures allowable as Condenser Water System Expenses under this Section 12.1.2 shall be amortized over the useful life of the particular capital item in question as Landlord shall reasonably determine in accordance with standard real estate, telecommunications, and information technology management and accounting practices consistently applied by Landlord in accordance with industry standard management and accounting practices used by landlords of telecommunications hotels that also contain office space and are located in the continental United States (the “Comparable Expense Practices”); provided, however, that if the annual amortized cost of any Condenser Water System Cost Saving Capital Item during any Suite 1500 Expense Year pursuant to the foregoing useful life amortization formula is less than the anticipated reduction in Condenser Water System Expenses for such Suite 1500 Expense Year resulting from such Condenser Water Cost Saving Capital Item, the entire anticipated reduction amount may be included in Condenser Water System Expenses for such Suite 1500 Expense Year (but in no event shall the aggregate amount of any such anticipated cost reduction for a particular Condenser Water Cost Saving Capital Item which may be included in Condenser Water System Expenses after the installation of such Condenser Water Cost Saving Capital Item pursuant to the foregoing exceed the total cost of such Condenser Water Cost Saving Capital Item).

 

If, during all or any part of any Suite 1500 Expense Year, Landlord does not furnish condenser water service (the cost of which, if performed by Landlord, would be included in Condenser Water System Expenses) to a tenant in the portion of the Building being served by the Condenser Water System, Condenser Water System Expenses shall be deemed to be increased by an amount equal to the Condenser Water System Expenses that would reasonably have been incurred by Landlord during such period if Landlord had furnished such service to such tenant.  In addition, if the portion of the Building being served by the Condenser Water System is less than 100% occupied during all or a portion of any Suite 1500 Expense Year, Landlord shall make an appropriate adjustment to the variable components of Condenser Water System Expenses for such Suite 1500 Expense Year or applicable portion thereof, in accordance with Comparable Expense Practices to determine the amount of Condenser Water System Expenses that would have been paid had such portion of the Building been 100% occupied; and the amount so determined shall be deemed to have been the amount of Condenser Water System Expenses for such Suite 1500 Expense Year, or applicable portion thereof.  The foregoing gross-up provisions shall not permit Landlord to make a profit by charging items to Condenser Water System Expenses or to recover more than 100% of the Condenser Water System Expenses actually incurred, it being agreed that accrued interest on amortization of amounts included in Condenser Water System Expenses as permitted above shall be deemed costs incurred.  Notwithstanding the foregoing, Condenser Water System Expenses shall not include the following:  (A) costs of any items (including, for the repair of damage to the Condenser Water System for items which are reimbursable under any contractor, manufacturer or supplier warranty) to the extent Landlord receives reimbursement from insurance or condemnation proceeds, or from a contractor, manufacturer, supplier or any other third party pursuant to any warranty or otherwise (other than reimbursement by tenants pursuant to the Condenser Water

 

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System Expenses pass-through provisions of their respective leases); such proceeds shall be credited to Condenser Water System Expenses in the Suite 1500 Expense Year in which received; (B) interest, penalties or other costs arising out of Landlord’s failure to make timely payment of any item that is included in Condenser Water System Expenses; (C) any Direct Expenses or Supplemental Generators Expenses; or (D) amounts excluded from Direct Expenses under Section 4.2.9 of the Original Lease or from Supplemental Generators Expenses under Section 12.1.4 (A) or (B).  Condenser Water System Expenses shall not be included in Direct Expenses or Supplemental Generators Expenses.

 

12.1.3              “Suite 1500 Expense Year” shall mean each calendar year in which any portion of the Suite 1500 Term falls, through and including the calendar year in which the Suite 1500 Premises Term expires or is terminated.

 

12.1.4              “Supplemental Generators Expenses” shall mean and include all expenses, costs and amounts which Landlord shall incur during any Suite 1500 Expense Year because of or in connection with the ownership, management, maintenance, repair, replacement, restoration or operation of the Supplemental Generators, including, without limitation, any amounts paid for: (i) the cost of fuel to operate the Supplemental Generators, (ii) the cost of supplies and equipment and maintenance and service contracts in connection therewith; (iii) the cost of licenses, certificates, permits and inspections and the cost of contesting the validity or applicability of any governmental enactments which affect the same; (iv) fees, charges and other costs of all contractors engaged by Landlord or otherwise reasonably incurred by Landlord in connection with the management, operation, maintenance and repair of the same; (v) annual amortization (including interest on the unamortized cost at the Amortization Interest Rate) of the cost of acquiring, or the rental expense of renting, personal property used in the maintenance, operation and repair of the Supplemental Generators (if the personal property is not used exclusively for the Supplemental Generators then only the costs associated with the proportionate share actually used for the Supplemental Generators shall be included); (vi) a reasonable allocation of compensation payable to the Building engineers reflecting the actual work of such engineers solely with respect to the Supplemental Generators; and (vii) annual amortization (including interest on the unamortized cost at the Amortization Interest Rate) of the cost of any capital alterations, capital additions, capital repairs and capital improvements (a) which are intended as a labor-saving device or to effect other economies in the operation or maintenance of the Supplemental Generators (collectively, the “Supplemental Generators Cost Saving Capital Items”), (b) made to the Supplemental Generators after the Seventh Amendment Date that are required under any Applicable Laws not in effect on the Seventh Amendment Date, or (c) which are reasonably determined by Landlord to be reasonably required after Substantial Completion of the Supplemental Generators to maintain the functionality of the Supplemental Generators in a first-class condition.  All costs described in Section 12.1.4(vii) and the amortization of any other capital expenditures allowable as Supplemental Generators Expenses under this Section 12.1.4 shall be amortized over the useful life of the particular capital item in question as Landlord shall reasonably determine in accordance with Comparable Expense Practices; provided, however, that if the annual amortized cost of any Supplemental Generators Cost Saving Capital Item during any Suite 1500 Expense Year pursuant to the foregoing useful life amortization formula is less than the anticipated reduction in Supplemental Generators Expenses for such Suite 1500 Expense Year resulting from such Supplemental Generators Cost Saving Capital Item, the entire anticipated reduction amount may be included in Supplemental

 

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Generators Expenses for such Suite 1500 Expense Year (but in no event shall the aggregate amount of any such anticipated cost reductions for a particular Supplemental Generators Cost Saving Capital Item which may be included in Supplemental Generators Expenses after the installation of such Supplemental Generators Cost Saving Capital Item pursuant to the foregoing exceed the total cost of such Supplemental Generators Cost Saving Capital Item).

 

Notwithstanding the foregoing, Supplemental Generators Expenses shall not include the following:  (A) costs of any items (including, for the repair of damage to the Supplemental Generators for items which are reimbursable under any contractor, manufacturer or supplier warranty) to the extent Landlord receives reimbursement from insurance or condemnation proceeds, or from a contractor, manufacturer, supplier or any other third party pursuant to any warranty or otherwise (other than reimbursement by tenants pursuant to the Supplemental Generators Expenses pass-through provisions of their respective leases); such proceeds shall be credited to Supplemental Generators Expenses in the Suite 1500 Expense Year in which received; (B) interest, penalties or other costs arising out of Landlord’s failure to make timely payment of any item that is included in Supplemental Generators Expenses; (C) any Direct Expenses or Condenser Water System Expenses; or (D) amounts excluded from Direct Expenses under Section 4.2.9 of the Original Lease or from Condenser Water System Expenses under Section 12.1.2 (A) or (B).  Supplemental Generators Expenses shall not be included in Direct Expenses or Condenser Water System Expenses.

 

12.1.5              “Tenant’s Suite 1500 Share of Condenser Water System Expenses” shall mean 41.00%, calculated by dividing the Maximum Allocation of Suite 1500 Premises Condenser Water (i.e. 451 tons), by the total capacity of the Condenser Water System (i.e. 1,100 tons), and stating such amount as a percentage rounded to two decimals.  If Landlord’s engineer determines under Section 10.3 that the capacity of the Condenser Water System has changed, then Tenant’s Suite 1500 Share of Condenser Water System Expenses shall be appropriately adjusted to reflect any such change.  If Tenant’s Suite 1500 Share of Condenser Water System Expenses is adjusted pursuant to the foregoing, Tenant’s Suite 1500 Share of Condenser Water System Expenses for the Suite 1500 Expense Year in which such adjustment occurs shall be determined on the basis of the number of days during such Suite 1500 Expense Year that such adjusted Tenant’s Suite 1500 Share of Condenser Water System Expenses was in effect.  Notwithstanding anything in the Lease to the contrary, if Landlord’s engineer determines under Section 10.3 that the capacity of the Condenser Water System has increased, then (i) Tenant’s Suite 1500 Share of Condenser Water System Expenses shall not be modified to reflect such increase, and (ii) Tenant shall in no event have any liability for any costs or expenses associated with any increase in the capacity of the Condenser Water System.

 

12.1.6              “Tenant’s Suite 1500 Share of Supplemental Generators Expenses” shall mean 30.11%, calculated by dividing the sum of the Maximum Allocation of Suite 1500 Premises Power (i.e. 2,100 KW) and 33.33% of the Maximum Allocation of Suite 1500 Premises Power (i.e. 700 KW), by the total capacity of the Supplemental Generators (i.e. 9,300 KW), and stating such amount as a percentage rounded to two decimals.  If Landlord’s engineer determines under Section 5.3 that the capacity of the Supplemental Generators has changed, then Tenant’s Suite 1500 Share of Supplemental Generators Expenses shall be appropriately adjusted to reflect any such change.  If Tenant’s Suite 1500 Share of Supplemental Generators Expenses is adjusted pursuant to the foregoing, Tenant’s Suite 1500

 

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Share of Supplemental Generators Expenses for the Suite 1500 Expense Year in which such adjustment occurs shall be determined on the basis of the number of days during such Suite 1500 Expense Year that such adjusted Tenant’s Suite 1500 Share of Supplemental Generators Expenses was in effect.  Notwithstanding anything in the Lease to the contrary, if (i) Landlord elects to make available to Suite 1500 back-up electrical power from supplemental generators in addition to the Supplemental Generators, or (ii) Landlord’s engineer determines under Section 5.3 that the capacity of the Supplemental Generators has changed, then (a) Tenant’s Suite 1500 Share of Supplemental Generators Expenses shall not be modified to reflect such increase, and (b) Tenant shall in no event have any liability for any costs or expenses associated with any increase in the capacity of the Supplemental Generators or as a result of Landlord electing to make available to Suite 1500 back-up electrical power from supplemental generators in addition to the Supplemental Generators.

 

12.2                        Statement of Actual Condenser Water System Expenses and Supplemental Generators Expenses.  Within approximately one hundred fifty (150) days after the end of each Suite 1500 Expense Year, Landlord shall give to Tenant a statement (the “SGE And CWSE Statement”) which shall state the amount of Condenser Water System Expenses and Supplemental Generators Expenses actually incurred or accrued for such Suite 1500 Expense Year.  Within thirty (30) days after Tenant’s receipt of a SGE And CWSE Statement, Tenant shall pay to Landlord the difference, if any, between (i) the actual amount of Tenant’s Suite 1500 Share of Condenser Water System Expenses and Tenant’s Suite 1500 Share of Supplemental Generators Expenses (collectively, “Actual Tenant’s Suite 1500 Share”) for the applicable Suite 1500 Expense Year as shown on the SGE And CWSE Statement, and (ii) the amounts paid by Tenant as Estimated SGE And CWSE Pass-Throughs with respect to such Suite 1500 Expense Year.  If any SGE And CWSE Statement reflects that the amount of Estimated SGE And CWSE Pass-Throughs paid by Tenant for such Suite 1500 Expense Year is greater than the Actual Tenant’s Suite 1500 Share for such Suite 1500 Expense Year, then Landlord shall, at its option, either credit such overpayment toward Tenant’s next Rent payment(s) then due and payable under the Lease, or remit such overpayment to Tenant within thirty (30) days after such SGE and CWSE Statement is delivered to Tenant.  Even if the Suite 1500 Term has expired or terminated and Tenant has vacated Suite 1500, if the SGE And CWSE Statement for the Suite 1500 Expense Year in which Suite 1500 Term expires or terminates reflects that the amount of Estimated SGE And CWSE Pass-Throughs paid by Tenant for such Suite 1500 Expense Year is greater than or less than the Actual Tenant’s Suite 1500 Share for such Suite 1500 Expense Year, then within thirty (30) days after Landlord’s delivery of such SGE And CWSE Statement to Tenant, Landlord shall refund to Tenant any such overpayment, or Tenant shall pay to Landlord any such underpayment, as the case may be.

 

12.3                        Statement of Estimated Condenser Water System Expenses and Supplemental Generators Expenses. Landlord shall give Tenant a yearly expense estimate statement (the “Estimated SGE And CWSE Statement”) itemized on a line-item by line-item basis, which shall set forth Landlord’s reasonable and good faith estimate of the amounts Tenant’s Suite 1500 Share of the Condenser Water System Expenses and Tenant’s Suite 1500 Share of Supplemental Generators Expenses for the new Suite 1500 Expense Year (the “Estimated SGE And CWSE Pass-Throughs”). The failure of Landlord to timely furnish an Estimated SGE And CWSE Statement for any Suite 1500 Expense Year shall not preclude Landlord from enforcing its rights under this Section 12.  Within sixty (60) days after receipt of

 

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an Estimated SGE And CWSE Statement, Tenant shall pay to Landlord with the monthly Base Rent installments, monthly installments of one-twelfth (1/12) of the Estimated SGE And CWSE Pass-Throughs set forth in the Estimated SGE And CWSE Statement; provided, however, if an Estimated SGE And CWSE Statement is delivered to Tenant after the start of a new Suite 1500 Expense Year, Tenant shall pay to Landlord starting with its first installment of Base Rent due forty-five (45) days after receipt of the Estimated SGE And CWSE Statement, monthly installments calculated, as a fraction of the Estimated SGE And CWSE Pass-Throughs for the then-current Suite 1500 Expense Year (reduced by any amounts paid pursuant to the last sentence of this Section) having as its numerator the number of months which have elapsed in such current Suite 1500 Expense Year to the month of such payment, both months inclusive, and twelve (12) as its denominator.  If at any time Landlord determines in good faith that the sum of Tenant’s Suite 1500 Share of Condenser Water System Expenses and Tenant’s Suite 1500 Share of Supplemental Generators Expenses for an Suite 1500 Expense Year is projected to vary from the then Estimated SGE And CWSE Pass-Throughs for such Suite 1500 Expense Year by more than 5%, Landlord may, by notice to Tenant, revise the applicable Estimated SGE And CWSE Statement, and Tenant’s monthly installments for the remainder of such Suite 1500 Expense Year, starting with the monthly installment due with Tenant’s first installment of Base Rent due forty-five (45) days after receipt of the revised Estimated SGE And CWSE Statement, shall be adjusted so that by the end of such Suite 1500 Expense Year Tenant shall have paid to Landlord the Estimated SGE And CWSE Pass-Throughs as reflected in such revised Estimated SGE And CWSE Statement; provided that Landlord shall have the right to deliver a revised Estimated SGE And CWSE Statement only once with respect to each Suite 1500 Expense Year.  Until a new Estimated SGE And CWSE Statement is furnished, Tenant shall pay monthly, with the monthly Base Rent installments, an amount equal to one-twelfth (1/12) of the Estimated SGE And CWSE Pass-Throughs set forth in the Estimated SGE And CWSE Statement most recently delivered by Landlord to Tenant.

 

12.4                        Landlord’s Books and Records.  Section 4.6 of the Original Lease shall apply with respect to each Suite 1500 Expense Year and each SGE And CWSE Statement.

 

13.                               Second Amendment TWC Additional Conduits.

 

13.1                        Term.  The Second Amendment TWC Additional Conduits Term is further extended for the period (the “Second Amendment TWC Additional Conduits Second Extended Term”) commencing retroactively on September 1, 2017, and expiring on the Second Extended Term Expiration Date.  The first sentence of the second paragraph of Section 6.9.10 of the Original Lease shall not apply with respect to the Second Amendment TWC Additional Conduits.  During the Second Amendment TWC Additional Conduits Second Extended Term, the Second Amendment TWC Additional Conduits Rent shall be payable, regardless of whether any such Second Amendment TWC Additional Conduits are actually used by Tenant, in the amount of $12,666.94 per month for each Second Amendment TWC Additional Conduit, which monthly rent shall be (i) increased on each subsequent September 1st at the rate of 3% per annum on a cumulative, compounded basis, and (ii) payable in advance on or before the first (1st) day of each month during the Second Amendment TWC Additional Conduits Second Extended Term.

 

 

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13.2                        Right to Terminate the Second Amendment TWC Conduits Second Extended Term. Tenant shall have the right to terminate the Second Amendment TWC Conduits Second Extended Term by delivery of at least sixty (60) days prior notice to Landlord, which termination shall be effective as of the date specified in such termination notice.  If Tenant so elects to terminate the Second Amendment TWC Conduits Second Extended Term, then (i) Tenant shall have no right to use the Second Amendment TWC Additional Conduits and no obligation to pay any monthly rent for the Second Amendment TWC Additional Conduits from and after the effective date of such termination, (ii) Tenant shall surrender the Second Amendment TWC Additional Conduits to Landlord on or prior to the effective date of such termination in accordance with Section 8.3 and Article 14 of the Original Lease, (iii) the Second Amendment TWC Additional Conduits shall be treated as Conduits under Article 14 of the Original Lease, (iv) Tenant shall remove prior to the effective date of such termination the horizontal portions of the Second Amendment TWC Conduits which connect into the Premises, and (v) Tenant shall have no obligation, and shall not be permitted, to remove any other portion of the Second TWC Additional Conduits upon such surrender or otherwise.

 

14.                               Seventh Amendment Conduits.

 

14.1                        Conduits 3036 and 3037.  During the period (the “3036/3037 Conduit Term”) commencing retroactively as of February 1, 2017, and expiring on the Second Extended Term Expiration Date, Tenant shall have the right to install, and, after installation, the exclusive right to use, two (2), four inch (4”) conduits (conduit Id Nos. 3036 and 3037) running from Suite 400 to Suite 2700, for the purposes of installing and maintaining therein telecommunications cabling and/or wiring (the “3036/3037 Conduits”).  The first sentence of the second paragraph of Section 6.9.10 of the Original Lease shall not apply with respect to the 3036/3037 Conduits, and during the 3036/3037 Conduit Term, Tenant shall pay to Landlord rent for the right to use each 3036/3037 Conduit (regardless of whether the applicable conduit is actually used by Tenant) in the amount of $3,750.00 per month for each 3036/3037 Conduit, which monthly rent shall be (i) increased as of February 1, 2018, and each February 1 thereafter at the rate of 3% per annum on a cumulative, compounded basis, and (ii) payable in advance on or before the first (1st) day of each month during the 3036/3037 Conduit Term.

 

14.2                        Conduits 3038 and 3039.

 

14.2.1              Term.  During the period (the “3038/3039 Conduit Term”) commencing retroactively as of October 1, 2017, and expiring on the Second Extended Term Expiration Date, Tenant shall have the right to install, and, after installation, the exclusive right to use, two (2), four inch (4”) conduits (conduit Id Nos. 3038 and 3039) running from Suite 1900 to Suite 2900 (Suite 2900 being leased by a third party tenant as of the Seventh Amendment Date), for the purposes of installing and maintaining therein telecommunications cabling and/or wiring (the “3038/3039 Conduits”).  The first sentence of the second paragraph of Section 6.9.10 of the Original Lease shall not apply with respect to the 3038/3039 Conduits, and during the 3038/3039 Conduit Term, Tenant shall pay to Landlord rent for the right to use each 3038/3039 Conduit (regardless of whether the applicable conduit is actually used by Tenant) in the amount of $1,875.00 per month for each 3038/3039 Conduit, which monthly rent shall be (i) increased as of October 1, 2018, and each October 1 thereafter at the rate of 3% per annum on a

 

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cumulative, compounded basis, and (ii) payable in advance on or before the first (1st) day of each month during the 3038/3039 Conduit Term.

 

14.2.2              Right to Terminate. Tenant shall have the right to terminate the 3038/3039 Conduit Term by delivery of at least sixty (60) days prior notice to Landlord, which termination shall be effective as of the date specified in such termination notice.  If Tenant so elects to terminate the 3038/3039 Conduit Term, then Tenant shall have no right to use the 3038/3039 Conduits and no obligation to pay any monthly rent for the 3038/3039 Conduits from and after the effective date of such termination.  Tenant shall, at its sole cost and expense, prior to effective date of such termination, remove the 3038/3039 Conduits and repair any damage to the Building caused by such removal, or, at Landlord’s option, cap the 3038/3039 Conduits and surrender the same to Landlord.  If Landlord elects for such conduits to be capped and surrendered, such surrender shall be without representation or warranty of any kind from Tenant with respect to such conduits.

 

14.3                        Conduits 3040 and 3041.  During the period (the “3040/3041 Conduit Term”) commencing on the Suite 1500 Commencement Date and expiring on the Second Extended Term Expiration Date, Tenant shall have the right to install, and, after installation, the exclusive right to use, two (2), four inch (4”) conduits (conduit Id Nos. 3040 and 3041) running from Suite 105 to Suite 400, for the purposes of installing and maintaining therein telecommunications cabling and/or wiring (the “3040/3041 Conduits”).  The first sentence of the second paragraph of Section 6.9.10 of the Original Lease shall not apply with respect to the 3040/3041 Conduits, and during the 3040/3041 Conduit Term, Tenant shall pay to Landlord rent for the right to use each 3040/3041 Conduit (regardless of whether the applicable conduit is actually used by Tenant) in the amount of $500.00 per month for each 3040/3041 Conduit, which monthly rent shall be (i) increased as of each anniversary of Suite 1500 Commencement Date at the rate of 3% per annum on a cumulative, compounded basis, and (ii) payable in advance on or before the first (1st) day of each month during the 3040/3041 Conduit Term.

 

14.4                        Eighth Floor Conduits.  During the period (the “Eighth Floor Conduit Term”) commencing on the June 1, 2018, and expiring on the Second Extended Term Expiration Date, Tenant shall have the right to install, and, after installation, the exclusive right to use the twenty-three (23) conduits more specifically described on Exhibit F running from Suite 825 in the Premises for the purposes of installing and maintaining therein telecommunications cabling and/or wiring (the “Eighth Floor Conduits”).  The first sentence of the second paragraph of Section 6.9.10 of the Original Lease shall not apply with respect to the Eighth Floor Conduits, and during the Eighth Floor Conduit Term, Tenant shall pay to Landlord rent for the right to use each Eighth Floor Conduit (regardless of whether the applicable conduit is actually used by Tenant) in the amount of $125 per month per floor penetration, which monthly rent shall be (i) increased on each anniversary of the Seventh Amendment Date by three percent (3%) per annum on a cumulative compounded basis, (ii) payable in advance on or before the first day of each calendar month, and (iii) capped at 20 floors per conduit run regardless of the actual number of floor penetrations for the applicable conduit run.

 

14.5                        General Terms.  The 3036/3037 Conduits, the 3038/3039 Conduits, the 3040/3041 Conduits and the Eighth Floor Conduits (collectively, the “Seventh Amendment Conduits”) and any wiring or cabling installed therein, shall be installed by Tenant at Tenant’s

 

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sole cost and expense in accordance with Section 6.9 and Article 8 of the Original Lease.  The Seventh Amendment Conduits shall be deemed to be part of the Supplemental Equipment and the area of the Building in which the Seventh Amendment Conduits are located shall be deemed to be part of the Supplemental Areas.  Except as otherwise provided in this Section 14, all of the terms of the Lease related to the Supplemental Equipment and Supplemental Areas shall apply with respect to the Seventh Amendment Conduits (including, without limitation, the applicable provisions of the Special Use Conditions set forth in Section 2.1 of the Summary in the Original Lease, and Section 6.9 of the Original Lease).  In addition, the Seventh Amendment Conduits shall be deemed Amendment Conduits for all purposes under Section 10.4 of the Fourth Amendment.

 

14.6                        Section 10.4.2 of the Fourth Amendment.  Effective as of the Seventh Amendment Date, Section 10.4.2 of the Fourth Amendment is amended and restated in its entirety to read as follows:

 

“If Tenant exercises a 2.2 Option, Tenant shall also have the right to extend through the expiration of the Lease Term (as extended by such 2.2 Option) any or all of the Amendment Conduit Terms with respect to any of the Amendment Conduits then leased by Tenant, in which event Section 2.2 of the Original Lease shall apply with respect to such applicable Amendment Conduits, except that (i) the First Amendment Additional Conduits Rent payable for the 19/27 Additional Conduits shall be $5,375.67 per month, as increased annually at a rate of 3% per annum on a cumulative, compounded basis upon each annual anniversary of the commencement date of the applicable Option Term; (ii) the monthly rent payable for each Amendment Conduit other than the 19/27 Additional Conduits shall be equal to the monthly rent payable by Tenant for such Amendment Conduit for the month immediately preceding the commencement date of the applicable Option Term, as increased annually at a rate of 3% per annum on a cumulative, compounded basis upon the commencement date of the applicable Option Term and each annual anniversary thereof; and (iii) if Tenant exercises a 2.2 Option for less than all of the Premises, then Tenant shall not have the right to extend the Amendment Conduit Terms for the Amendment Conduits which serve, originate at or end at any portion of the Premises with respect to which the subject 2.2 Option was not exercised.  No other monthly fees shall be payable for the Amendment Conduits leased by Tenant during the Option Term(s).  “Amendment Conduit Terms” means (a) the Additional Conduit Terms, (b) the Fourth Amendment Conduit Terms, (c) the 4/823 and 4/1010 Conduit Term, (d) the 4/27 Conduit Term, (e) the 4/805 Conduit Term, (f) the 4/105 Conduit Term, (g) the 4/1140 Conduit Term, (h) the 3036/3037 Conduit Term, (i) 3038/3039 Conduit Term, (j) the 3040/3041 Conduit Term, and (k) the Eighth Floor Conduit Term.”

 

15.                               Section 6.9.4 of Original Lease.  If Landlord grants Tenant, pursuant to Section 6.9.4 of the Original Lease, the right to use additional conduits to connect Suite 1500 to other locations within the Building, the charge for each such continuous conduit run (a “1500 Conduit Run Charge”) during the one year period commencing on the Suite 1500 Commencement Date shall be (i) $250 per month per floor penetration for a 4” conduit; (ii) $125 per month per floor penetration for a 2” conduit; and (iii) $62.50 per month per floor penetration for a 1” conduit.

 

20

 

Such rates shall increase on each anniversary of the Suite 1500 Commencement Date by three percent (3%) per annum on a cumulative compounded basis and 1500 Conduit Run Charges shall be payable in advance on or before the first day of each calendar month during the term of the applicable conduit(s).  Notwithstanding the above, (a)  monthly rates for 1500 Conduit Run Charges shall (1) be discounted by fifty percent (50%) for the first five (5) conduits installed by Tenant to connect Suite 1500 to other locations within the Building, and (2) be capped at 20 floors per conduit run regardless of the actual number of floor penetrations for the applicable conduit run; and (b) Tenant’s rights to install additional conduits to connect Suite 1500 to other locations in the Building shall be subject to availability of riser space, as determined by Landlord.

 

16.                               CASp.  For purposes of Section 1938(a) of the California Civil Code, Landlord hereby discloses to Tenant, and Tenant hereby acknowledges, that the Premises have not undergone inspection by a Certified Access Specialist (CASp).  In addition, the following notice is hereby provided pursuant to Section 1938(e) of the California Civil Code:

 

“A Certified Access Specialist (CASp) can inspect the subject premises and determine whether the subject premises comply with all of the applicable construction-related accessibility standards under state law.  Although state law does not require a CASp inspection of the subject premises, the commercial property owner or lessor may not prohibit the lessee or tenant from obtaining a CASp inspection of the subject premises for the occupancy or potential occupancy of the lessee or tenant, if requested by the lessee or tenant.  The parties shall mutually agree on the arrangements for the time and manner of the CASp inspection, the payment of the fee for the CASp inspection, and the cost of making any repairs necessary to correct violations of construction-related accessibility standards within the premises.”

 

In furtherance of and in connection with such notice, Landlord and Tenant hereby agree as follows (which constitute the mutual agreement of the parties as to the matters described in the last sentence of the foregoing notice):  (i) Tenant shall have the one-time right to make a request for and obtain a CASp inspection of the Premises (“Tenant CASp Inspection”); (ii) the Tenant CASp Inspection shall be conducted (a) during the Building Hours (as defined in the Original Lease), (b) only after 10 days’ prior written notice to Landlord, (c) by a CASp designated by Landlord and without any damage to the Premises or Project, and (d) at Tenant’s expense, including, without limitation, Tenant’s payment of the fee for the Tenant CASp Inspection, and the fee for any reports prepared by the CASp in connection with the Tenant CASp Inspection (collectively, the “CASp Reports”); (iii) Tenant shall deliver a copy of any CASp Reports to Landlord within 3 business days after Tenant’s receipt thereof; (iv) Tenant, at its expense, shall be responsible for making any improvements, alterations and/or repairs to or within the Premises (other than to the structural portions of the Building, except to the extent the structural modification is required as a result of Tenant’s operations in or improvements to the Premises) to correct violations of construction-related accessibility standards disclosed by the Tenant CASp Inspection as and to the extent required by Applicable Laws; and (v) if the Tenant CASp Inspection identifies any improvements, alterations and/or repairs necessary to correct violations of construction-related accessibility standards relating to (a) those items of the Project located outside the Premises and/or (b) any structural portions of the Building that are Landlord’s

 

21

 

obligation to perform as set forth in the Lease (except to the extent structural modifications are required as a result of Tenant’s operations in or improvements to the Premises), then Landlord shall perform such work as and to the extent required by Applicable Laws, and, except as may be provided in the next paragraph of this Section 16, Tenant shall reimburse Landlord for the cost of such work within 30 days after Tenant’s receipt of Landlord’s invoice therefor.

 

The parties hereby agree that if a CASp inspection is required to be obtained by Tenant by (1) a court order in a legal action initiated against Tenant or (2) a notice from a governmental authority, then (x) clause (i) and, to the extent in conflict which such court order or notice, clause (ii) of the immediately preceding paragraph shall not apply to such inspection, and (y) Tenant’s reimbursement obligations set forth in clause (v) of the immediately preceding paragraph shall not apply, it being agreed that payment of costs for any work required by such inspection shall be governed by the provisions of the Lease applicable to compliance of the Premises and the Project with Applicable Laws.

 

17.                               Representations.

 

17.1                        Tenant represents and warrants to Landlord that, as of the Seventh Amendment Date:  (i) Tenant is duly formed, validly existing and in good standing under the laws of the state of its organization; (ii) Tenant is authorized to do business as a foreign entity in the state in which the Premises is located; (iii) Tenant owns and holds the entire leasehold interest of the tenant under the Lease; (iv) Tenant has not assigned or encumbered its interest in the Lease or any part thereof; and (v) to Tenant’s knowledge, Landlord is not in default of any of its obligations under the Existing Lease.

 

17.2                        Landlord represents and warrants to Tenant that as of the Seventh Amendment Date (i) Landlord is duly formed, validly existing in good standing under the laws of the state of its organization; (ii) Landlord is authorized to do business as a foreign entity in the state in which the Premises is located; and (iii) to Landlord’s knowledge, Tenant is not in default of any of its obligations under the Existing Lease.

 

18.                               Brokers.  Landlord represents and warrants to Tenant that (i) it has had no dealings with any real estate broker or agent in connection with the negotiation and execution of this Amendment other than Hines Holdings, Inc. and Cushman & Wakefield of California Inc. (together, “Landlord’s Brokers”), whose commissions, if any, shall be paid by Landlord pursuant to a separate agreement between Landlord and each of Landlord’s Brokers); and (ii) it knows of no other real estate broker or agent who is entitled to a commission as a result of the representation of Landlord in connection with this Amendment.  Tenant represents and warrants to Landlord that (a) it has had no dealings with any real estate broker or agent in connection with the negotiation and execution of this Amendment, and (b) it knows of no real estate broker or agent who is entitled to a commission as a result of the representation of Tenant in connection with this Amendment.  Each of Landlord and Tenant agrees to indemnify and defend the other party against and hold the other party harmless from any and all claims, demands, losses, liabilities, lawsuits, judgments and costs and expenses (including reasonable attorneys’ fees) with respect to any leasing commission or equivalent compensation alleged to be owing on account of the breach by the indemnifying party of any of such indemnifying party’s representations, warranties and/or covenants set forth above in this Section.

 

22

 

19.                               No Further Modification.  Except as set forth in this Amendment, all of the terms and provisions of the Existing Lease shall remain unmodified and in full force and effect.

 

20.                               Counterparts and Electronic Signatures.  This Amendment may be executed in multiple counterparts, each of which is to be deemed original for all purposes, but all of which together shall constitute one and the same instrument.  Signatures to this Amendment transmitted by facsimile or via electronic mail (by pdf or similar file types) shall be valid and effective to bind the party so signing.

 

21.                               Interpretation; Construction.  Landlord and Tenant have jointly prepared this Amendment, each with access to counsel, and (i) none of the provisions hereof shall be construed against one party on the ground that such party is the author of this Amendment or any part hereof; and (ii) the usual rule of contract construction that resolves ambiguities against the drafter shall not apply.  All defined terms have the meanings given them for all purposes, and such meanings are equally applicable to both the singular and plural forms of the terms defined.  Any agreement, instrument or law defined or referred to herein (a) means such agreement or instrument or law as from time to time amended, modified or supplemented, including (in the case of agreements or instruments) by waiver or consent and (in the case of law) by succession of comparable successor laws; and (b) includes (in the case of agreements or instruments) all attachments thereto and instruments incorporated therein. The words “including” and “includes” and terms of similar import shall be deemed to mean “including, without limitation”.  The terms “hereby,” “hereof,” “hereto,” “herein,” “hereunder,” and any similar terms, refer to this Amendment.  Article, Section, exhibit, schedule and addendum headings in and any table of contents and index of defined terms are solely for convenience and do not constitute a part, and shall not affect the meaning, construction or effect, of this Amendment.  Capitalized words used as defined terms are used solely for convenience and such words do not affect the definitions assigned to them.  Except to the extent specified to the contrary in this Amendment, references to Articles, Sections, Exhibits, schedules and addenda are to the Articles, Sections, Exhibits, Schedules and Addenda of this Amendment and all such Exhibits, Schedules and Addenda attached to this Amendment are incorporated herein and made a part hereof.  If there is any conflict between such attached Exhibits, Schedules or Addenda and the terms of this Amendment, the terms of this Amendment shall control.

 

SIGNATURE PAGE CONTINUED ON NEXT PAGE

 

23

 

IN WITNESS WHEREOF, this Amendment has been executed by each of the parties as of the day and year written immediately below their respective signatures to be effective as of the Seventh Amendment Date.

 

 

	
 
    	
LANDLORD
    
	
 
    	
 
    
	
 
    	
GI TC ONE WILSHIRE, LLC,
    
	
 
    	
a Delaware limited liability   company
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/ Tony Lin
    
	
 
    	
Print Name:
    	
Tony Lin
    
	
 
    	
Its:
    	
Authorized Person
    
	
 
    	
 
    	
 
    
	
 
    	
Date:
    	
June 23, 2018
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
TENANT
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
CORESITE ONE WILSHIRE, L.L.C.,

a Delaware limited liability   company
    
	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/ Paul Szurek
    
	
 
    	
Print Name:
    	
Paul Szurek
    
	
 
    	
Its:
    	
President and Chief Executive   Officer
    
	
 
    	
 
    	
 
    
	
 
    	
Date:
    	
June 29, 2018
    

 

24

 

EXHIBIT A

 

DEPICTION OF LOCATION OF SUITE 1500

 

 

Exhibit A - 1

 

EXHIBIT A-1

 

DEPICTION OF ASBESTOS REMEDIATION WORK AREAS

 

 

Exhibit A-1 - 1

 

EXHIBIT A-2

 

DEPICTION OF CORRIDOR EXTENSION WORK AREAS

 

 

Exhibit A-2 - 1

 

EXHIBIT A-3

 

DEPICTION OF 15TH FLOOR STRUCTURAL WORK AREAS

 

 

Exhibit A-3 - 1

 

EXHIBIT B

 

Part 1 — Supplemental Generators Specifications

 

Three (3) Caterpillar Gen Sets, Model No. C175, Stationary Emergency, EPA certified, Diesel Standby 3,100 Kilowatts, 3,875 KVA, 4,160 Volts, with acoustical enclosure, and sound attenuating enclosures arranged in an N+1 configuration, and related connection and distribution equipment, cabling and wiring therefor.

 

Part 2 — Condenser Water System Specifications

 

A condenser water system having at least one thousand one hundred (1,100) tons of cooling capacity and which shall at all times, except during maintenance operations, be arranged in a 2N redundant distribution configuration, be operated in a 2N configuration, and have a minimum of N+1 active component redundancy backed up by stand-by generator power.  The system shall operate within the following parameters:

 

(a)                                 A minimum pressure of 15 psi measured at the 8 inch branch connection point to Landlord’s main condenser water riser on the 15th floor;

 

(b)                                 Condenser water temperature shall be between 67 degrees Fahrenheit and 92 degrees Fahrenheit;

 

(c)                                  Flow rate adequate to support the actual cooling load requirements up to a maximum of 1,100 gallons per minute;

 

(d)                                 All connections of the condenser water system to Suite 1500 shall be a minimum of 8 inches in diameter; and

 

(e)                                  Industry standard system chemistry shall be maintained at all times.

 

Part 3 — Power Connection Components Specifications

 

Located in Suite 1610 will be Distribution Switchgear A-MV and Switchgear B-MV which are each rated at 1200 amperes/4160 volts.  A-MV will be fed from MV Transfer switchgear CPDS-A via a breaker, conduit and wiring.  B-MV will be fed from MV Transfer switchgear CPDS-B via a breaker, conduit and wiring.  Both CPDS-A and CPDS-B are each rated at 2000 amperes/4160 volts and are located in the fourth floor main electrical room at the Building.

 

Exhibit B - 1

 

EXHIBIT C

 

 

Exhibit C - 1

 

EXHIBIT D

 

 

Exhibit D - 1

 

EXHIBIT E

 

SUITE 1610 POWER ROOM

 

 

Exhibit E - 1

 

EXHIBIT F

 

EIGHTH FLOOR CONDUITS

 

	
Description
    	
 
    	
Conduit No.
    	
 
    	
Quantity
    	
 
    	
Origination
    	
 
    	
Destination
    	
 
    	
Floors
   Penetrated
    
	
4 inch conduits via North Air   Shaft
    	
 
    	
3055
    	
 
    	
1
    	
 
    	
Suite 825
    	
 
    	
P-1 Level
    	
 
    	
8
    
	
4 inch conduits via South Air   Shaft
    	
 
    	
3065
    	
 
    	
1
    	
 
    	
Suite 825
    	
 
    	
P-1 Level
    	
 
    	
8
    
	
4 inch conduits via North Air   Shaft
    	
 
    	
3056, 3057
    	
 
    	
2
    	
 
    	
Suite 825
    	
 
    	
4th Floor
    	
 
    	
4
    
	
4 inch conduits via South Air   Shaft
    	
 
    	
3066, 3067
    	
 
    	
2
    	
 
    	
Suite 825
    	
 
    	
4th Floor
    	
 
    	
4
    
	
4 inch conduits via South Air   Shaft
    	
 
    	
3064
    	
 
    	
1
    	
 
    	
Suite 825
    	
 
    	
7th Floor
    	
 
    	
1
    
	
4 inch conduits via South Air   Shaft
    	
 
    	
3068, 3069
    	
 
    	
2
    	
 
    	
Suite 825
    	
 
    	
8th Floor
    	
 
    	
0
    
	
4 inch conduits via North Air   Shaft
    	
 
    	
3058
    	
 
    	
1
    	
 
    	
Suite 825
    	
 
    	
10th Floor
    	
 
    	
2
    
	
4 inch conduits via South Air   Shaft
    	
 
    	
3070
    	
 
    	
1
    	
 
    	
Suite 825
    	
 
    	
10th Floor
    	
 
    	
2
    
	
4 inch conduits via North Air   Shaft
    	
 
    	
3059, 3060
    	
 
    	
2
    	
 
    	
Suite 825
    	
 
    	
11th Floor
    	
 
    	
3
    
	
4 inch conduits via South Air   Shaft
    	
 
    	
3071, 3072
    	
 
    	
2
    	
 
    	
Suite 825
    	
 
    	
11th Floor
    	
 
    	
3
    
	
4 inch conduits via North Air   Shaft
    	
 
    	
3077
    	
 
    	
1
    	
 
    	
Suite 825
    	
 
    	
15th Floor
    	
 
    	
7
    
	
4 inch conduits via South Air   Shaft
    	
 
    	
3078
    	
 
    	
1
    	
 
    	
Suite 825
    	
 
    	
15th Floor
    	
 
    	
7
    
	
4 inch conduits via North Air   Shaft
    	
 
    	
3061
    	
 
    	
1
    	
 
    	
Suite 825
    	
 
    	
19th Floor
    	
 
    	
11
    
	
4 inch conduits via South Air   Shaft
    	
 
    	
3073
    	
 
    	
1
    	
 
    	
Suite 825
    	
 
    	
19th Floor
    	
 
    	
11
    
	
4 inch conduits via North Air   Shaft
    	
 
    	
3062
    	
 
    	
1
    	
 
    	
Suite 825
    	
 
    	
27th Floor
    	
 
    	
19
    
	
4 inch conduits via South Air   Shaft
    	
 
    	
3074
    	
 
    	
1
    	
 
    	
Suite 825
    	
 
    	
27th Floor
    	
 
    	
19
    
	
4 inch conduits via North Air   Shaft
    	
 
    	
3063
    	
 
    	
1
    	
 
    	
Suite 825
    	
 
    	
28th Floor
    	
 
    	
20
    
	
4 inch conduits via South Air   Shaft
    	
 
    	
3075
    	
 
    	
1
    	
 
    	
Suite 825
    	
 
    	
28th Floor
    	
 
    	
20
    

 

Exhibit F-1

 

EXHIBIT G

STRUCTURAL WORK

 

 

Exhibit G - 1

 

SCHEDULE 1

 

CERTAIN DEFINED TERMS

 

The following capitalized terms have the following meanings. Where any capitalized term is identified as being defined in the Original Lease, such definition shall be as amended by any amendment to the Original Lease.

 

“4/27 Conduits” has the meaning given in Section 4.2.2 of the Fifth Amendment.

 

“4/27 Conduit Term” has the meaning given in Section 4.2.2 of the Fifth Amendment.

 

“4/105 Conduits” has the meaning given in Section 3.1 of the Sixth Amendment.

 

“4/105 Conduit Term” has the meaning given in Section 3.1 of the Sixth Amendment.

 

“4/805 Conduits” has the meaning given in Section 4.2.3 of the Fifth Amendment.

 

“4/805 Conduit Term” has the meaning given in Section 4.2.3 of the Fifth Amendment.

 

“4/823 and 4/1010 Conduits” has the meaning given in Section 4.2.1 of the Fifth Amendment.

 

“4/823 and 4/1010 Conduit Term” has the meaning given in Section 4.2.1 of the Fifth Amendment.

 

“4/1140 Conduits” has the meaning given in Section 3.2 of the Sixth Amendment.

 

“4/1140 Conduit Term” has the meaning given in Section 3.2 of the Sixth Amendment.

 

“Additional Conduit Terms” has the meaning given in Section 10.2.1 of the Fourth Amendment.

 

“Adjustment Date” has the meaning given in Section 3.2 of the Original Lease.

 

“Applicable Laws” has the meaning given in Section 7.1 of the Original Lease.

 

“Asbestos Remediation Work” means all work required to cause the 15th floor to be in compliance with all Applicable Laws regarding asbestos and asbestos containing materials as of the Suite 1500 Delivery Date, which work is contemplated to include at least those location(s) illustrated in Exhibit A-1.

 

“Base Electrical Systems” has the meaning given in Section 11.1.1 of the Fourth Amendment.

 

“Building Systems” has the meaning given in Section 7.1 of the Original Lease.

 

“Claims” has the meaning given in Section 9.1.1 of the Original Lease.

 

“Comparable Buildings” has the meaning given in Section 1.4 of the Original Lease.

 

Schedule 1 - 1

 

“Corridor Extension Work” means the work in the common area on the northwest side of the 15th floor of the Building to cause the corridor illustrated in Exhibit A-2 to be extended as required to provide access to the common area restrooms illustrated in Exhibit A-2.

 

“Default” has the meaning given in Section 18.1 of the Original Lease.

 

“Direct Expenses” has the meaning given in Section 4.2.2 of the Original Lease.

 

“First Amendment Additional Conduits” means the 4/7 Additional Conduits, the 2/4 Additional Conduits and the 19/27 Additional Conduits, as may be further defined in Section 2.1 of the First Amendment.

 

“First Amendment Additional Conduits Term” means the applicable term with respect to the 4/7 Additional Conduits, the 2/4 Additional Conduits and the 19/27 Additional Conduits, as may be further defined in Section 2.1 of the First Amendment.

 

“Fifth Amendment Conduits” means the 4/27 Conduit, the 4/805 Conduit, and the 4/823 and 4/1010 Conduits, as may be further defined in Section 4.2.3 of the Fifth Amendment.

 

“Force Majeure Events” has the meaning given in Section 11.1.9 of the Fourth Amendment.

 

“Fourth Amendment Conduit Term” has the meaning given in Section 10.3.1 of the Fourth Amendment.

 

“Fourth Amendment Conduits” means the 3014 Conduit, the 3015 Conduit and the 3016 Conduit, as may be further defined in Section 10.3.1 of the Fourth Amendment and.

 

“Identified Portion” has the meaning given in Section 2.2.1 of the Original Lease.

 

“Landlord Parties” has the meaning given in Section 9.1.1 of the Original Lease.

 

“Lease Term” has the meaning given in Section 1.2.2 of the Fourth Amendment.

 

“Notice” has the meaning given in Section 24.7 of the Original Lease.

 

“Premises” has the meaning given in Section 1.2.1 of the Fourth Amendment.

 

“Second Amendment CS Additional Conduits Term” has the meaning given in Section 2.1 of the Second Amendment.

 

“Second Amendment CS Additional Conduits” is defined in Section 2.1 of the Second Amendment and means the Building conduits identified as numbers 2900 and 2838.

 

“Second Amendment TWC Additional Conduits Term” has the meaning given in Section 3.1 of the Second Amendment and has been extended by the TWC Conduits Extended Term under and as defined in Section 10.1 of the Fourth Amendment.

 

“Second Amendment TWC Additional Conduits” has the meaning given in Section 3.1 of the Second 

 

Schedule 1 - 2

 

Amendment and means the Building conduits identified as numbers 2840 and 2841.

 

“Second Amendment TWC Additional Conduits Rent” has the meaning given in Section 3.2 of the Second Amendment, as amended by Section 10.1 of the Fourth Amendment

 

“Sixth Amendment Conduits” means the 4/105 Conduits and the 4/1140 Conduits, as may be further defined in Section 3.3 of the Sixth Amendment.

 

“Storage Space” has the meaning given in Section 6 of the Summary of Basic Lease Information of the Original Lease.

 

“Structural Work” means all structural reinforcement work in the Building required to support Tenant’s two unit substations in the Suite 1610 Power Room as depicted on Exhibit G, including installation of two structural elements, each measuring approximately 6 to 8 inches tall and 25 feet long with approximately 1.5 inches of fireproof coating, connected to the existing structural beam beneath the Suite 1610 Power Room, and resulting in a “clear height” in the affected area on the 15th floor illustrated in Exhibit A-3 being reduced by approximately 7.5 inches but not more than 9.5 inches.

 

“Substantial Completion” means that the applicable work has been completed in all material respects, other than minor punch list items that do not prevent the intended use of such work, in accordance with Applicable Laws.

 

“Supplemental Area” has the meaning given in Section 6.9.10 of the Original Lease.

 

“Supplemental Equipment” has the meaning given in Section 6.9.10 of the Original Lease.

 

“Tenant Parties” has the meaning given in Section 9.1.1 of the Original Lease.

 

“Third Amendment CS Conduit” has the meaning given in Section 2.1 of the Third Amendment.

 

“Third Amendment CS Conduit Term” has the meaning given in Section 2.1 of the Third Amendment.

 

Schedule 1 - 3

 

SCHEDULE 2

 

AMENDMENT CONDUIT SCHEDULE

 

	
Conduit Name
    	
 
    	
Quantity
    	
 
    	
Conduit No.
    	
 
    	
Run
    	
 
    	
Rent and Escalation
    
	
First Amendment Additional Conduits
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
4/7 Additional Conduits
    	
 
    	
2
    	
 
    	
3000, 3001
    	
 
    	
4th to 7th
    	
 
    	
Section 10.2.2 of the Fourth Amendment
    
	
2/4 Additional Conduits
    	
 
    	
4
    	
 
    	
3002, 3003, 3004, 3005
    	
 
    	
2nd to 4th
    	
 
    	
Section 10.2.2 of the Fourth Amendment
    
	
19/27 Additional Conduits
    	
 
    	
2
    	
 
    	
3008, 3009
    	
 
    	
19th to 27th
    	
 
    	
Section 10.2.2 of the Fourth Amendment
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Second Amendment CS Additional Conduits
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Conduit #2838
    	
 
    	
1
    	
 
    	
2838
    	
 
    	
P-1 to 1st
    	
 
    	
Section 10.2.2 of the Fourth Amendment.
    
	
Conduit #2900
    	
 
    	
1
    	
 
    	
2900
    	
 
    	
4th to 27th
    	
 
    	
Section 10.2.2 of the Fourth Amendment.
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Second Amendment TWC Additional Conduits
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Conduit #2840
    	
 
    	
1
    	
 
    	
2840
    	
 
    	
P-1 to 27th
    	
 
    	
Section 13.1 of the Seventh Amendment
    
	
Conduit #2841
    	
 
    	
1
    	
 
    	
2841
    	
 
    	
P-1 to 27th
    	
 
    	
Section 13.1 of the Seventh Amendment
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Third Amendment CS Conduit
    	
 
    	
1
    	
 
    	
3076
    	
 
    	
ground floor loading dock to 4th floor MMR
    	
 
    	
Section 10.2.2 of the Fourth Amendment
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Fourth Amendment Conduits
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
3014 Conduit
    	
 
    	
1
    	
 
    	
3014
    	
 
    	
4th to 7th
    	
 
    	
Section 10.3.2 of the Fourth Amendment
    
	
3015 Conduit
    	
 
    	
1
    	
 
    	
3015
    	
 
    	
4th to 18th
    	
 
    	
Section 10.3.2 of the Fourth Amendment
    
	
3016 Conduit
    	
 
    	
1
    	
 
    	
3016
    	
 
    	
4th to 28th
    	
 
    	
Section 10.3.2 of the Fourth Amendment
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Fifth Amendment Conduits
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
4/823 and 4/1010 Conduits
    	
 
    	
1
    	
 
    	
3023
    	
 
    	
4th to Suite 823
    	
 
    	
Section 4.2.1 of the Fifth Amendment.
    
	
 
    	
 
    	
1
    	
 
    	
one inch innerduct
    	
 
    	
4th to Suite 1010
    	
 
    	
 
    
	
4/27 Additional Conduits
    	
 
    	
2
    	
 
    	
3021, 3022
    	
 
    	
4th to 27th
    	
 
    	
Section 4.2.2 of the Fifth Amendment.
    
	
4/805 Conduits
    	
 
    	
1
    	
 
    	
3024
    	
 
    	
4th to Suite 805
    	
 
    	
Section 4.2.3 of the Fifth Amendment.
    

 

Schedule 2 - 1

 

	
Conduit Name
    	
 
    	
Quantity
    	
 
    	
Conduit No.
    	
 
    	
Run
    	
 
    	
Rent and Escalation
    
	
Sixth Amendment Conduits
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
4/105 Conduits
    	
 
    	
2
    	
 
    	
3030, 3031
    	
 
    	
4th to Suite 105
    	
 
    	
Section 3.1 of the Sixth Amendment
    
	
4/1140 Conduits
    	
 
    	
4
    	
 
    	
3032 to 3035 inclusive
    	
 
    	
4th to Suite 1140
    	
 
    	
Section 3.2 of the Sixth Amendment
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Seventh Amendment Conduits
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
3036/3037 Conduits
    	
 
    	
2
    	
 
    	
3036, 3037
    	
 
    	
Suite 400 to Suite 2700
    	
 
    	
Section 14.1 of the Seventh Amendment
    
	
3038/3039 Conduits
    	
 
    	
2
    	
 
    	
3038, 3039
    	
 
    	
Suite 1900 to Suite 2900
    	
 
    	
Section 14.2 of the Seventh Amendment
    
	
3040/3041 Conduits
    	
 
    	
2
    	
 
    	
3040, 3041
    	
 
    	
Suite 105 to Suite 400
    	
 
    	
Section 14.3 of the Seventh Amendment
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Eighth Floor Conduits
    	
 
    	
23
    	
 
    	
3055 to 3078, exclusive of 3076
    	
 
    	
see Exhibit F to Seventh Amendment
    	
 
    	
Section 14.4 of the Seventh Amendment
    

 

Schedule 2 - 2

 

INDEX OF DEFINED TERMS

 

	
1500 Conduit Run Charge
    	
20
    
	
3036/3037 Conduit Term
    	
18
    
	
3036/3037 Conduits
    	
18
    
	
3038/3039 Conduit Term
    	
18
    
	
3038/3039 Conduits
    	
18
    
	
3040/3041 Conduit Term
    	
19
    
	
3040/3041 Conduits
    	
19
    
	
4/105 Conduit Term
    	
Schedule 1
    
	
4/105 Conduits
    	
Schedule 1
    
	
4/1140 Conduit Term
    	
Schedule 1
    
	
4/1140 Conduits
    	
Schedule 1
    
	
4/27 Conduit Term
    	
Schedule 1
    
	
4/27 Conduits
    	
Schedule 1
    
	
4/805 Conduit Term
    	
Schedule 1
    
	
4/805 Conduits
    	
Schedule 1
    
	
4/823 and 4/1010 Conduit Term
    	
Schedule 1
    
	
4/823 and 4/1010 Conduits
    	
Schedule 1
    
	
Actual Tenant’s Suite 1500   Share
    	
16
    
	
Additional Conduit Terms
    	
Schedule 1
    
	
Adjustment Date
    	
Schedule 1
    
	
Amendment
    	
1
    
	
Amortization Interest Rate
    	
12
    
	
Applicable Laws
    	
Schedule 1
    
	
Asbestos Remediation   Work
    	
Schedule 1
    
	
Base Electrical Systems
    	
Schedule 1
    
	
Building
    	
1
    
	
Building Systems
    	
Schedule 1
    
	
CASp Reports
    	
21
    
	
Claims
    	
Schedule 1
    
	
Comparable Buildings
    	
Schedule 1
    
	
Comparable Expense Practices
    	
13
    
	
Condenser Water System
    	
9
    
	
Condenser Water System Cost   Saving Capital Items
    	
13
    
	
Condenser Water System Expenses
    	
12
    
	
Corridor Extension   Work
    	
Schedule 1
    
	
Default
    	
Schedule 1
    
	
Direct Expenses
    	
Schedule 1
    
	
Eighth Floor Conduit Term
    	
19
    
	
Eighth Floor Conduits
    	
19
    
	
Estimated SGE And CWSE   Pass-Throughs
    	
16
    
	
Estimated SGE And CWSE Statement
    	
16
    
	
Existing Amendment Conduit Terms
    	
2
    
	
Existing Amendment Conduits
    	
1
    
	
Existing Lease
    	
1
    
	
Existing Premises
    	
1
    
	
Fifth Amendment
    	
1
    
	
Fifth Amendment Conduits
    	
Schedule 1
    
	
First Amendment
    	
1
    
	
First Amendment Additional   Conduits
    	
Schedule 1
    
	
First Amendment Additional   Conduits Term
    	
Schedule 1
    
	
Force Majeure Events
    	
Schedule 1
    
	
Fourth Amendment
    	
1
    
	
Fourth Amendment Conduit Term
    	
Schedule 1
    
	
Fourth Amendment Conduits
    	
Schedule 1
    
	
Hines
    	
1
    
	
Identified Portion
    	
Schedule 1
    
	
including
    	
23
    
	
Increase in Capacity
    	
8
    
	
July 2017 ROFO Notice
    	
2
    
	
Landlord
    	
1
    
	
Landlord CW Curative Action
    	
11
    
	
Landlord Parties
    	
Schedule 1
    
	
Landlord’s Brokers
    	
22
    
	
Lease Term
    	
Schedule 1
    
	
Maximum Allocation of   Suite 1500 Cooling Capacity
    	
9
    
	
Maximum Allocation of   Suite 1500 Power
    	
7
    
	
Notice
    	
Schedule 1
    
	
Original Lease
    	
1
    
	
P&C Outside Date
    	
12
    
	
Power and Cooling Work
    	
11
    
	
Power and Cooling Work   Substantial Completion
    	
11
    
	
Power Connection Components
    	
6
    
	
Power Demarcation Point
    	
6
    
	
Premises
    	
Schedule 1
    
	
Second Amendment
    	
1
    
	
Second Amendment CS Additional   Conduits
    	
Schedule 1
    
	
Second Amendment CS Additional   Conduits Term
    	
Schedule 1
    
	
Second Amendment TWC Additional   Conduits
    	
Schedule 1
    
	
Second Amendment TWC   Additional Conduits Rent
    	
Schedule 1
    
	
Second Amendment TWC Additional   Conduits Second Extended Term
    	
17
    

 

Schedule 1-1

 

	
Second Amendment TWC   Additional Conduits Term
    	
Schedule 1
    
	
Second Extended Term
    	
2
    
	
Second Extended Term Commencement   Date
    	
2
    
	
Second Extended Term Expiration   Date
    	
2
    
	
Seventh Amendment Conduits
    	
19
    
	
Seventh Amendment Date
    	
1
    
	
SGE And CWSE Statement
    	
16
    
	
Sixth Amendment
    	
1
    
	
Sixth Amendment Conduits
    	
Schedule 1
    
	
Storage Space
    	
Schedule 1
    
	
Structural Work
    	
Schedule 1
    
	
Substantial   Completion
    	
Schedule 1
    
	
Suite 1500
    	
2
    
	
Suite 1500 Backup Power
    	
5
    
	
Suite 1500 Commencement Date
    	
4
    
	
Suite 1500 Condenser Water
    	
9
    
	
Suite 1500 Connection   Allowance
    	
6
    
	
Suite 1500 CRAC   Units
    	
10
    
	
Suite 1500 CW Over-Load   Condition
    	
10
    
	
Suite 1500 Delivery Date
    	
3
    
	
Suite 1500 Expense Year
    	
14
    
	
Suite 1500 Primary Power
    	
5
    
	
Suite 1500 Primary Power and   Supplemental Generator Connection
    	
6
    
	
Suite 1500 Primary Power and   Supplemental Generator Connection Alteration Work
    	
7
    
	
Suite 1500 Term
    	
4
    
	
Suite 1500 Work
    	
3
    
	
Suite 1610 Power Room
    	
6
    
	
Supplemental Area
    	
Schedule 1
    
	
Supplemental Equipment
    	
Schedule 1
    
	
Supplemental Generators
    	
5
    
	
Supplemental Generators Cost   Saving Capital Items
    	
14
    
	
Supplemental Generators Expenses
    	
14
    
	
Target Power and Cooling Work   Completion Date
    	
11
    
	
Tenant
    	
1
    
	
Tenant CASp Inspection
    	
21
    
	
Tenant Delay
    	
11
    
	
Tenant Parties
    	
Schedule 1
    
	
Tenant Suite 1500 Condenser   Water Action
    	
11
    
	
Tenant’s Suite 1500 Share of   Condenser Water System Expenses
    	
15
    
	
Tenant’s Suite 1500 Share of   Supplemental Generators Expenses
    	
15
    
	
Third Amendment
    	
1
    
	
Third Amendment CS Conduit
    	
Schedule 1
    
	
Third Amendment CS Conduit Term
    	
Schedule 1
    

 

Index of Defined TermsNEITHER
THIS NOTE NOR THE SECURITIES THAT MAY BE ISSUED BY THE COMPANY UPON CONVERSION HEREOF (COLLECTIVELY, THE “SECURITIES”)
HAVE BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “1933 ACT”), OR THE SECURITIES LAWS OF ANY
STATE OR OTHER JURISDICTION. NEITHER THE SECURITIES NOR ANY INTEREST OR PARTICIPATION THEREIN MAY BE OFFERED FOR SALE, SOLD, TRANSFERRED
OR ASSIGNED: (I) IN THE ABSENCE OF AN EFFECTIVE REGISTRATION STATEMENT FOR THE SECURITIES UNDER THE 1933 ACT, OR APPLICABLE STATE
SECURITIES LAWS; OR (II) IN THE ABSENCE OF AN OPINION OF COUNSEL, IN A FORM ACCEPTABLE TO THE ISSUER, THAT REGISTRATION IS NOT
REQUIRED UNDER THE 1933 ACT OR; (III) UNLESS SOLD, TRANSFERRED OR ASSIGNED PURSUANT TO RULE 144 UNDER THE 1933 ACT.

 

8%
CONVERTIBLE PROMISSORY NOTE

 

MATURITY
DATE OF JUNE 26, 2019 *THE “MATURITY DATE”

 

$113,000
JUNE 26, 2018 *THE “ISSUANCE DATE”

 

FOR
VALUE RECEIVED, Propanc Biopharma, Inc., a Delaware Corporation (the “Company”) doing business in Camberwell, Australia,
hereby promises to pay to the order of JSJ Investments Inc., an accredited investor and Texas Corporation, or its assigns (the
“Holder”), the principal amount of One-Hundred and Thirteen Thousand Dollars ($113,000) (“Note”), on demand
of the Holder at any time on or after June 26, 2019 (the “Maturity Date”), and to pay interest on the unpaid principal
balance hereof at the rate of Eight Percent (8%) per annum (the “Interest Rate”) commencing on the date hereof (the
“Issuance Date”).

 

	 	1.	Payments
    of Principal and Interest.

 

	 	a.	Pre-Payment
    and Payment of Principal and Interest. The Company may pay this Note in full, together with any and all accrued and unpaid
    interest, plus any applicable pre-payment premium set forth herein and subject to the terms of this Section 1.a, at any time
    on or prior to the date which occurs 180 days after the Issuance Date hereof (the “Prepayment Date”). Until the
    Ninetieth (90th) day after the Issuance Date the Company may pay the principal at a cash redemption premium of 135%, in addition
    to outstanding interest, without the Holder’s consent; from the 91st day to the One Hundred and Twentieth (120th) day
    after the Issuance Date, the Company may pay the principal at a cash redemption premium of 140%, in addition to outstanding
    interest, without the Holder’s consent; from the 121st day to the Prepayment Date, the Company may pay the principal
    at a cash redemption premium of 145%, in addition to outstanding interest, without the Holder’s consent. After the Prepayment
    Date up to the Maturity Date this Note shall have a cash redemption premium of 150% of the then outstanding principal amount
    of the Note, plus accrued interest and Default Interest, if any, which may only be paid by the Company upon Holder’s
    prior written consent. At any time on or after the Maturity Date, the Company may repay the then outstanding principal plus
    accrued interest and Default Interest (defined below), if any, to the Holder.
	 	 	 
	 	b.	Demand
    of Repayment. The principal and interest balance of this Note shall be paid to the Holder hereof on demand by the Holder at
    any time on or after the Maturity Date. The Default Amount (defined herein), if applicable, shall be paid to Holder hereof
    on demand by the Holder at any time such Default Amount becomes due and payable to Holder. The Holder may, by written notice
    to the Company at least five (5) days before the Maturity Date (as may have been previously extended), extend the Maturity
    Date to up to one (1) year following the date of the original Maturity Date hereunder.
	 	 	 
	 	c.	Interest.
    This Note shall bear interest (“Interest”) at the rate of Eight Percent (8%) per annum from the Issuance Date
    until the same is paid, or otherwise converted in accordance with Section 2 below, in full and the Holder, at the Holder’s
    sole discretion, may include any accrued but unpaid Interest in the Conversion Amount. Interest shall commence accruing on
    the Issuance Date, shall be computed on the basis of a 365-day year and the actual number of days elapsed and shall accrue
    daily and, after the Maturity Date, compound quarterly. Upon an Event of Default, as defined in Section 10 below, the Interest
    Rate shall increase to Eighteen Percent (18%) per annum for so long as the Event of Default is continuing (“Default
    Interest”).
	 	 	 
	 	d.	General
    Payment Provisions. This Note shall be paid in lawful money of the United States of America by check or wire transfer to such
    account as the Holder may from time to time designate by written notice to the Company in accordance with the provisions of
    this Note. Whenever any amount expressed to be due by the terms of this Note is due on any day which is not a Business Day
    (as defined below), the same shall instead be due on the next succeeding day which is a Business Day and, in the case of any
    interest payment date which is not the date on which this Note is paid in full, the extension of the due date thereof shall
    not be taken into account for purposes of determining the amount of interest due on such date. For purposes of this Note,
    “Business Day” shall mean any day other than a Saturday, Sunday or a day on which commercial banks in the State
    of Texas are authorized or required by law or executive order to remain closed.

 

    	 	1	 

    	 

    

 

 

	 	2.	Conversion
    of Note. At any time after the Pre-payment Date, the Conversion Amount (see Paragraph 2(a)(i)) of this Note shall be convertible
    into shares of the Company’s common stock (the “Common Stock”) according to the terms and conditions set
    forth in this Paragraph 2.

 

	 	a.	Certain
    Defined Terms. For purposes of this Note, the following terms shall have the following meanings:

 

	 	i.	“Conversion
    Amount” means the sum of (a) the principal amount of this Note to be converted with respect to which this determination
    is being made, (b) Interest; and (c) Default Interest, if any, if so included at the Holder’s sole discretion.
	 	 	 
	 	ii.	“Conversion
    Price” means: a 35% discount to the lowest trading price during the previous ten (10) trading days to the date of a
    Conversion Notice (subject to equitable adjustments for stock splits, stock dividends or rights offerings by the Company relating
    to the Company’s securities or the securities of any subsidiary of the Company, combinations, recapitalization, reclassifications,
    extraordinary distributions and similar events).
	 	 	 
	 	iii.	“Person”
    means an individual, a limited liability company, a partnership, a joint venture, a corporation, a trust, an unincorporated
    organization and a government or any department or agency thereof.
	 	 	 
	 	iv.	“Shares”
    means the Shares of the Common Stock of the Company into which any balance on this Note may be converted upon submission of
    a “Conversion Notice” to the Company substantially in the form attached hereto as Exhibit 1.

 

	 	b.	Holder’s
    Conversion Rights. At any time after the Pre-payment Date, the Holder shall be entitled to convert all of the outstanding
    and unpaid principal and accrued interest of this Note into fully paid and non-assessable shares of Common Stock in accordance
    with the stated Conversion Price. The Holder shall not be entitled to convert on a Conversion Date that amount of the Note
    in connection with that number of shares of Common Stock which would be in excess of the sum of the number of shares of Common
    Stock issuable upon the conversion of the Note with respect to which the determination of this provision is being made on
    a Conversion Date, which would result in beneficial ownership by the Holder and its affiliates of more than 4.99% of the outstanding
    shares of Common Stock of the Company on such Conversion Date. For the purposes of the provision to the immediately preceding
    sentence, beneficial ownership shall be determined in accordance with Section 13(d) of the Securities Exchange Act of 1934,
    as amended, and Regulation 13d-3 thereunder. Subject to the foregoing, the Holder shall not be limited to aggregate conversions
    of 4.99% (“Conversion Limitation 1”). The Holder shall have the authority to determine whether the restriction
    contained in this Section 2(b) will limit any conversion hereunder, and accordingly, the Holder may waive the conversion
    limitation described in this Section 2(b), in whole or in part, upon and effective after 61 days prior written notice
    to the Company to increase or decrease such percentage to any other amount as determined by Holder in its sole discretion
    (“Conversion Limitation 2”). If in the case that the Company’s Common Stock is “chilled” for
    deposit into the DTC system and only eligible for clearing deposit, then an additional 15% discount to the Conversion Price
    shall apply for all future conversions under the Note while the “chill” is in effect. For the avoidance of doubt,
    with reference to section 2(a)ii of this note, when the “chill” is in effect the conversion price will increase
    from a 35% discount to a 50% discount to the lowest trading price during the previous (20) days to the date of a Conversion
    Notice. To the extent the Conversion Price of the Company’s Common Stock closes below the par value per share, the Company
    will take all steps necessary to solicit the consent of the stockholders to reduce the par value to the lowest value possible
    under law. The Company agrees to honor all conversions submitted pending this adjustment unless the Holder, in its sole and
    absolute discretion elects instead to set the Conversion Price to par value for such conversion(s) and the conversion amount
    for such conversion(s) shall be increased to include Additional Principal, where “Additional Principal” means
    such additional amount to be added to the conversion amount to the extent necessary to cause the number of Common Stock issuable
    upon such conversion(s) to equal the same number of Common Stock as would have been issued had the Conversion Price not been
    set to par value in the Holder’s sole and absolute discretion.
	 	 	 
	 	c.	Fractional
    Shares. The Company shall not issue any fraction of a share of Common Stock upon any conversion; if such issuance would result
    in the issuance of a fraction of a share of Common Stock, the Company shall round such fraction of a share of Common Stock
    up to the nearest whole share except in the event that rounding up would violate the conversion limitation set forth in section
    2(b) above.
	 	 	 
	 	d.	Conversion
    Amount. The Conversion Amount shall be converted pursuant to Rule 144(b)(1)(ii) and Rule 144(d)(1)(ii) as promulgated by the
    Securities and Exchange Commission under the Securities Act of 1933, as amended, into unrestricted shares at the Conversion
    Price.

 

    	 	2	 

    	 

    

 

 

	 	e.	Mechanics
    of Conversion. The conversion of this Note shall be conducted in the following manner:

 

	 	i.	Holder’s
    Conversion Requirements. To convert this Note, on a date which shall be a date no earlier than the date in which a Conversion
    Notice is delivered to the Company, into shares of Common Stock on any date set forth in the Conversion Notice by the Holder
    (the “Conversion Date”), the Holder shall transmit by email, facsimile or otherwise deliver, for receipt on or
    prior to 11:59 p.m., Eastern Time, on such date or on the next business day, a copy of a fully executed notice of conversion
    in the form attached hereto as Exhibit 1 to the Company.
	 	 	 
	 	ii.	Company’s
    Response. Upon receipt by the Company of a copy of a Conversion Notice, the Company shall as soon as practicable, but in no
    event later than one (1) Business Day after receipt of such Conversion Notice, send, via email, facsimile or overnight courier,
    a confirmation of receipt of such Conversion Notice to such Holder indicating that the Company will process such Conversion
    Notice in accordance with the terms herein. Within two (2) Business Days after the date the Conversion Notice is delivered,
    the Company shall have issued and electronically transferred the shares to the Broker indicated in the Conversion Notice;
    should the Company be unable to transfer the shares electronically, it shall, within two (2) Business Days after the date
    the Conversion Notice was delivered, have surrendered to an overnight courier for delivery the next day to the address as
    specified in the Conversion Notice, a certificate, registered in the name of the Holder, for the number of shares of Common
    Stock to which the Holder shall be entitled.
	 	 	 
	 	iii.	Record
    Holder. The person or persons entitled to receive the shares of Common Stock issuable upon a conversion of this Note shall
    be treated for all purposes as the record holder or holders of such shares of Common Stock on the Conversion Date.
	 	 	 
	 	iv.	Timely
    Response by Company. Upon receipt by Company of a Conversion Notice, Company shall respond within one business day to Holder
    confirming the details of the Conversion, and provide within two business days the Shares requested in the Conversion Notice.
	 	 	 
	 	v.	Liquidated
    Damages for Delinquent Response. If the Company fails to deliver for whatever reason (including any neglect or failure by,
    e.g., the Company, its counsel or the transfer agent) to Holder the Shares as requested in a Conversion Notice within
    three (3) business days of the Conversion Date, the Company shall be deemed in “Default of Conversion.” Beginning
    on the fourth (4th) business day after the date of the Conversion Notice, after the Company is deemed in Default of Conversion,
    there shall accrue liquidated damages (the “Conversion Damages”) of $250 per day for each day after the third
    business day until delivery of the Shares is made, and such penalty will be added to the Note being converted (under the Company’s
    and Holder’s expectation and understanding that any penalty amounts will tack back to the Issuance Date of the Note).
    The Parties agree that, at the time of drafting of this Note, the Holder’s damages as to the delinquent response are
    incapable or difficult to estimate and that the liquidated damages called for is a reasonable forecast of just compensation.
	 	 	 
	 	vi.	Rescindment
    of Conversion Notice. If: (i) the Company fails to respond to Holder within one business day from the date of delivery of
    a Conversion Notice confirming the details of the Conversion, (ii) the Company fails to provide the Shares requested in the
    Conversion Notice within three business days from the date of the delivery of the Conversion Notice, (iii) the Holder is unable
    to procure a legal opinion required to have the Shares issued unrestricted and/or deposited to sell for any reason related
    to the Company’s standing with the SEC or FINRA, or any action or inaction by the Company, (iv) the Holder is unable
    to deposit the Shares requested in the Conversion Notice for any reason related to the Company’s standing with the SEC
    or FINRA, or any action or inaction by the Company, (v) if the Holder is informed that the Company does not have the authorized
    and issuable Shares available to satisfy the Conversion, or (vi) if OTC Markets changes the Company’s designation to
    ‘Limited Information’ (Yield), ‘No Information’ (Stop Sign), ‘Caveat Emptor’ (Skull and
    Crossbones), or ‘OTC’, ‘Other OTC’ or ‘Grey Market’ (Exclamation Mark Sign) on the day
    of or any day after the date of the Conversion Notice, the Holder maintains the option and sole discretion to rescind the
    Conversion Notice (“Rescindment”) by delivering a notice of rescindment to the Company in the same manner that
    a Conversion Notice is required to be delivered to the Company pursuant to the terms of this Note.
	 	 	 
	 	vii.	Transfer
    Agent Fees and Legal Fees. The issuance of the certificates shall be without charge or expense to the Holder. The Company
    shall pay any and all Transfer Agent fees, legal fees, and advisory fees required for execution of this Note and processing
    of any Notice of Conversion, including but not limited to the cost of obtaining a legal opinion with regard to the Conversion.
    The Holder will deduct $3,000 from the principal payment of the Note solely to cover the cost of obtaining any and all legal
    opinions required to obtain the Shares requested in any given Conversion Notice. These fees do not make provision for or suffice
    to defray any legal fees incurred in collection or enforcement of the Note as described in Paragraph 13. All expenses incurred
    by Holder, for the issuance and clearing of the Common Stock into which this Note is convertible into, shall immediately and
    automatically be added to the balance of the Note at such time as the expenses are incurred by Holder.
	 	 	 
	 	viii.	Conversion
    Right Unconditional. If the Holder shall provide a Notice of Conversion as provided herein, the Company’s obligations
    to deliver Common Stock shall be absolute and unconditional, irrespective of any claim of setoff, counterclaim, recoupment,
    or alleged breach by the Holder of any obligation to the Company.

 

 

    	 	3	 

    	 

    

 

 

	 	3.	Other
    Rights of Holder: Reorganization, Reclassification, Consolidation, Merger or Sale. Any recapitalization, reorganization, reclassification,
    consolidation, merger, sale of all or substantially all of the Company’s assets to another Person or other transaction
    which is effected in such a way that holders of Common Stock are entitled to receive (either directly or upon subsequent liquidation)
    stock, securities, cash or other assets with respect to or in exchange for Common Stock is referred to herein as “Organic
    Change.” Prior to the consummation of any (i) Organic Change or (ii) other Organic Change following which the Company
    is not a surviving entity, the Company will secure from the Person purchasing such assets or the successor resulting from
    such Organic Change (in each case, the “Acquiring Entity”) a written agreement (in form and substance reasonably
    satisfactory to the Holder) to deliver to Holder in exchange for this Note, a security of the Acquiring Entity evidenced by
    a written instrument substantially similar in form and substance to this Note, and reasonably satisfactory to the Holder.
    Prior to the consummation of any other Organic Change, the Company shall make appropriate provision (in form and substance
    reasonably satisfactory to the Holder) to ensure that the Holder will thereafter have the right to acquire and receive in
    lieu of or in addition to (as the case may be) the shares of Common Stock immediately theretofore acquirable and receivable
    upon the conversion of the Note, such shares of stock, securities, cash or other assets that would have been issued or payable
    in such Organic Change with respect to or in exchange for the number of shares of Common Stock which would have been acquirable
    and receivable upon the conversion of the Note as of the date of such Organic Change (without taking into account any limitations
    or restrictions on the convertibility of the Note set forth in Section 2(b) or otherwise). All provisions of this Note must
    be included to the reasonable satisfaction of Holder in any new Note created pursuant to this section.
	 	 	 
	 	4.	Representations
    and Warranties of the Company. In connection with the transactions provided for herein, the Company hereby represents and
    warrants to the Holder the following:

 

	 	a.	Organization,
    Good Standing and Qualification. The Company is a corporation duly organized, validly existing and in good standing under
    the laws of the state of its incorporation and has all requisite corporate power and authority to carry on its business as
    now conducted. The Company is duly qualified to transact business and is in good standing in each jurisdiction in which the
    failure to so qualify would have a material adverse effect on its business or properties.
	 	 	 
	 	b.	Authorization.
    All corporate action has been taken on the part of the Company, its officers, directors and stockholders necessary for the
    authorization, execution and delivery of this Agreement. The Company has taken all corporate action required to make all of
    the obligations of the Company reflected in the provisions of this Agreement, valid and enforceable obligations. The shares
    of capital stock issuable upon conversion of the Note have been authorized or will be authorized prior to the issuance of
    such shares.
	 	 	 
	 	c.	Fiduciary
    Obligations. The Company hereby represents that it intends to use the proceeds of the Note primarily for the operations of
    its business and not for any personal, family, or household purpose. The Company hereby represents that its board of directors,
    in the exercise of its fiduciary duty, has approved the execution of this Agreement based upon a reasonable belief that the
    proceeds of the Note provided for herein is appropriate for the Company after reasonable inquiry concerning its financial
    objectives and financial situation.

 

	 	5.	Reservation
    of Shares. The Company shall at all times, so long as any principal amount of the Note is outstanding, reserve and keep available
    out of its authorized and unissued shares of Common Stock, solely for the purpose of effecting the conversion of the Note,
    four times the number of shares of Common Stock as shall at all times be sufficient to effect the conversion of all of the
    principal amount, plus Interest and Default Interest, if any, of the Note then outstanding (“Share Reserve”),
    unless the Holder stipulates otherwise in the “Irrevocable Letter of Instructions to the Transfer Agent.” So long
    as this Note is outstanding, upon written request of the Holder or via telephonic communication, the Company’s Transfer
    Agent shall furnish to the Holder the then- current number of common shares issued and outstanding, the then-current number
    of common shares authorized, the then- current number of unrestricted shares, and the then-current number of shares reserved
    for third parties.
	 	 	 
	 	6.	Voting
    Rights. The Holder of this Note shall have no voting rights as a note holder, except as required by law, however, upon the
    conversion of any portion of this Note into Common Stock, Holder shall have the same voting rights as all other Common Stock
    holders with respect to such shares of Common Stock then owned by Holder.
	 	 	 
	 	7.	Reissuance
    of Note. In the event of a conversion or redemption pursuant to this Note of less than all of the Conversion Amount represented
    by this Note, the Company shall promptly cause to be issued and delivered to the Holder, upon tender by the Holder of the
    Note converted or redeemed, a new note of like tenor representing the remaining principal amount of this Note which has not
    been so converted or redeemed and which is in substantially the same form as this Note, as set forth above.

 

 

    	 	4	 

    	 

    

 

 

	 	8.	Default
    and Remedies.

 

	 	a.	Event
    of Default. For purposes of this Note, an “Event of Default” shall occur upon:

 

	 	i.	the
    Company’s default in the payment of the outstanding principal, Interest or Default Interest of this Note when due, whether
    at Maturity, acceleration or otherwise;
	 	ii.	the
    occurrence of a Default of Conversion as set forth in Section 2(e)(v);
	 	iii.	the
    failure by the Company for ten (10) days after notice to it to comply with any material provision of this Note not included
    in this Section 10(a);
	 	iv.	the
    Company’s breach of any covenants, warranties, or representations made by the Company herein;
	 	v.	the
    default by the Company in any Other Agreement entered into by and between the Company and Holder, for purposes hereof “Other
    Agreement” shall mean, collectively, all agreements and instruments between, among or by: (1) the Company, and, or for
    the benefit of, (2) the Holder and any affiliate of the Holder, including without limitation, promissory notes;
	 	vi.	the
    cessation of operations of the Company or a material subsidiary;
	 	vii.	the
    Company pursuant to or within the meaning of any Bankruptcy Law; (a) commences a voluntary case; (b) consents to the entry
    of an order for relief against it in an involuntary case; (c) consents to the appointment of a Custodian of it or for all
    or substantially all of its property; (d) makes a general assignment for the benefit of its creditors; or (e) admits in writing
    that it is generally unable to pay its debts as the same become due;
	 	viii.	court
    of competent jurisdiction entering an order or decree under any Bankruptcy Law that: (a) is for relief against the Company
    in an involuntary case; (b) appoints a Custodian of the Company or for all or substantially all of its property; or (c) orders
    the liquidation of the Company or any subsidiary, and the order or decree remains unstayed and in effect for thirty (30) days;
	 	ix.	the
    Company files a Form 15 with the SEC;
	 	x.	the
    Company’s failure to file all reports required to be filed by it with the Securities and Exchange Commission;
	 	xi.	the
    Company’s failure to file all reports required to be filed by it with OTC Markets to remain a “Current Information”
    designated company;
	 	xii.	the
    Company’s Common Stock is reported as “No Inside” by OTC Markets at any time while any principal, Interest
    or Default Interest under the Note remains outstanding;
	 	xiii.	the
    Company’s failure to maintain the required Share Reserve pursuant to the terms of the Irrevocable Letter of Instructions
    to the Transfer Agent;
	 	xiv.	the
    Company directs its transfer agent not to transfer, or delays, impairs, or hinders its transfer agent in transferring or issuing
    (electronically or in certificated form) any certificate for Shares of Common Stock to be issued to the Holder upon conversion
    of or otherwise pursuant to this Note as and when required by this Note, or fails to remove (or directs its transfer agent
    not to remove or impairs, delays and/or hinders its transfer agent from removing) any restrictive legend (or to withdraw and
    stop transfer instructions) on any certificate for any Shares of Common Stock issued to the Holder upon conversion of or otherwise
    pursuant to this Note as and when required by this Note (or makes any written announcement, statement or threat that it does
    not intend to honor its obligations pursuant to a Conversion Notice submitted by the Holder) and any such failure shall continue
    uncured for three (3) Business Days after the Conversion Notice has been delivered to the Company by Holder;
	 	xv.	the
    Company’s failure to remain current in its billing obligations with its transfer agent and such delinquency causes the
    transfer agent to refuse to issue Shares to Holder pursuant to a Conversion Notice;
	 	xvi.	the
    Company effectuates a reverse split of its Common Stock and fails to provide twenty (20) days prior written notice to Holder
    of its intention to do so; or
	 	xvii.	OTC
    Markets changes the Company’s designation to ‘No Information’ (Stop Sign), ‘Caveat Emptor’ (Skull
    and Crossbones), or ‘OTC’, ‘Other OTC’ or ‘Grey Market’ (Exclamation Mark Sign).

 

The
Term “Bankruptcy Law” means Title 11, U.S. Code, or any similar Federal or State Law for the relief of debtors. The
term “Custodian” means any receiver, trustee, assignee, liquidator or similar official under any Bankruptcy Law.

 

	 	b.	Remedies.
    If an Event of Default occurs, the Holder may in its sole discretion determine to request immediate repayment of all or any
    portion of the Note that remains outstanding; at such time the Company will be required to pay the Holder the Default Amount
    (defined herein) in cash. For purposes hereof, the “Default Amount” shall mean: the product of (A) the then outstanding
    principal amount of the Note, plus accrued Interest and Default Interest, divided by (B) the Conversion Price as determined
    on the Issuance Date, multiplied by (C) the highest price at which the Common Stock traded at any time between the Issuance
    Date and the date of the Event of Default. If the Company fails to pay the Default Amount within five (5) Business Days of
    written notice that such amount is due and payable, then Holder shall have the right at any time, so long as the Company remains
    in default (and so long and to the extent there are a sufficient number of authorized but unissued shares), to require the
    Company, upon written notice, to immediately issue, in lieu of the Default Amount, the number of shares of Common Stock of
    the Company equal to the Default Amount divided by the Conversion Price then in effect.
	 	 	 
	 	c.	If
    at any time after the Issuance Date, the Company is not DWAC Eligible, then an additional 5% discount shall be factored into
    the Conversion Price. If at any time after the Issuance Date, the Common Stock is not DTC Eligible, then an additional 5%
    discount shall be factored into the Conversion Price. In addition, if any Event of Default occurs after the Issuance Date,
    then an additional 5% discount shall be factored into the Conversion Price for each of the first three (3) Events of Default
    that occur after the Issuance Date (for the avoidance of doubt, each occurrence of any Event of Default shall be deemed to
    be a separate occurrence for purposes of the foregoing reductions, even if the same Event of Default occurs three (3) separate
    times). For example, if there are three (3) separate occurrences of an Event of Default, then an additional 5% discount shall
    be factored into the Conversion Price for the first such occurrence, and so on for each of the second and third occurrences
    of such Event of Default.

 

    	 	5	 

    	 

    

 

 

 

	 	9.	Vote
    to Change the Terms of this Note. This Note and any provision hereof may only be amended by an instrument in writing signed
    by the Company and the Holder.
	 	 	 
	 	10.	Lost
    or Stolen Note. Upon receipt by the Company of evidence satisfactory to the Company of the loss, theft, destruction or mutilation
    of this Note, and, in the case of loss, theft or destruction, of an indemnification undertaking by the Holder to the Company
    in a form reasonably acceptable to the Company and, in the case of mutilation, upon surrender and cancellation of the Note,
    the Company shall execute and deliver a new Note of like tenor and date and in substantially the same form as this Note; provided,
    however, the Company shall not be obligated to re-issue a Note if the Holder contemporaneously requests the Company to convert
    such remaining principal amount, plus accrued Interest and Default Interest, if any, into Common Stock.
	 	 	 
	 	11.	Payment
    of Collection, Enforcement and Other Costs. If: (i) this Note is placed in the hands of an attorney for collection or enforcement
    or is collected or enforced through any legal proceeding; or (ii) an attorney is retained to represent the Holder of this
    Note in any bankruptcy, reorganization, receivership or other proceedings affecting creditors’ rights and involving
    a claim under this Note, then the Company shall pay to the Holder all reasonable attorneys’ fees, costs and expenses
    incurred in connection therewith, in addition to all other amounts due hereunder.
	 	 	 
	 	12.	Cancellation.
    After all principal, accrued Interest and Default Interest, if any, at any time owed on this Note has been paid in full or
    otherwise converted in full, this Note shall automatically be deemed canceled, shall be surrendered to the Company for cancellation
    and shall not be reissued.
	 	 	 
	 	13.	Waiver
    of Notice. To the extent permitted by law, the Company hereby waives demand, notice, protest and all other demands and notices
    in connection with the delivery, acceptance, performance, default or enforcement of this Note.
	 	 	 
	 	14.	Governing
    Law. This Note shall be construed and enforced in accordance with, and all questions concerning the construction, validity,
    interpretation and performance of this Note shall be governed by, the laws of the State of Texas, without giving effect to
    provisions thereof regarding conflict of laws. Each party hereby irrevocably submits to the non-exclusive jurisdiction of
    the state and federal courts sitting in Texas for the adjudication of any dispute hereunder or in connection herewith or with
    any transaction contemplated hereby or discussed herein, and hereby irrevocably waives, and agrees not to assert in any suit,
    action or proceeding, any claim that it is not personally subject to the jurisdiction of any such court, that such suit, action
    or proceeding is brought in an inconvenient forum or that the venue of such suit, action or proceeding is improper. Each party
    hereby irrevocably waives personal service of process and consents to process being served in any such suit, action or proceeding
    by sending, through certified mail or overnight courier, a copy thereof to such party at the address for such notices to it
    under this Agreement and agrees that such service shall constitute good and sufficient service of process and notice thereof.
    Nothing contained herein shall be deemed to limit in any way any right to serve process in any manner permitted by law. EACH
    PARTY HEREBY IRREVOCABLY WAIVES ANY RIGHT IT MAY HAVE, AND AGREES NOT TO REQUEST, A JURY TRIAL FOR THE ADJUDICATION OF ANY
    DISPUTE HEREUNDER OR IN CONNECTION HEREWITH OR ARISING OUT OF THIS AGREEMENT OR ANY TRANSACTION CONTEMPLATED HEREBY.
	 	 	 
	 	15.	Remedies,
    Characterizations, Other Obligations, Breaches and Injunctive Relief. The remedies provided in this Note shall be cumulative
    and in addition to all other remedies available under this Note, at law or in equity (including a decree of specific performance
    and/or other injunctive relief), and no remedy contained herein shall be deemed a waiver of compliance with the provisions
    giving rise to such remedy and nothing herein shall limit the Holder’s right to pursue actual damages for any failure
    by the Company to comply with the terms of this Note. The Company covenants to the Holder that there shall be no characterization
    concerning this instrument other than as expressly provided herein. Amounts set forth or provided for herein with respect
    to payments, conversion and the like (and the computation thereof) shall be the amounts to be received by the Holder thereof
    and shall not, except as expressly provided herein, be subject to any other obligation of the Company (or the performance
    thereof).
	 	 	 
	 	16.	Specific
    Shall Not Limit General; Construction. No specific provision contained in this Note shall limit or modify any more general
    provision contained herein. This Note shall be deemed to be jointly drafted by the Company and the Holder and shall not be
    construed against any person as the drafter hereof.
	 	 	 
	 	17.	Failure
    or Indulgence Not Waiver. No failure or delay on the part of the Holder in the exercise of any power, right or privilege hereunder
    shall operate as a waiver thereof, nor shall any single or partial exercise of any such power, right or privilege preclude
    further exercise thereof or of any other right, power or privilege.

 

    	 	6	 

    	 

    

 

 

 

	 	18.	Partial
    Payment. In the event of partial payment by the Holder, the principal sum due to the Holder shall be prorated based on the
    consideration actually paid by the Holder such that the Company is only required to repay the amount funded and the Company
    is not required to repay any unfunded portion of this Note, with the exception of any OID contemplated herein.
	 	 	 
	 	19.	Entire
    Agreement. This Agreement constitutes the full and entire understanding and agreement between the parties with regard to the
    subjects herein. None of the terms of this Agreement can be waived or modified, except by an express agreement signed by all
    Parties hereto.
	 	 	 
	 	20.	Additional
    Representations and Warranties. The Company expressly acknowledges that the Holder, including but not limited to its officer,
    directors, employees, agents, and affiliates, have not made any representation or warranty to it outside the terms of this
    Agreement. The Company further acknowledges that there have been no representations or warranties about future financing or
    subsequent transactions between the parties.
	 	 	 
	 	21.	Notices.
    All notices and other communications given or made to the Company pursuant hereto shall be in writing (including facsimile
    or similar electronic transmissions) and shall be deemed effectively given: (i) upon personal delivery, (ii) when sent by
    electronic mail or facsimile, as deemed received by the close of business on the date sent, (iii) five (5) days after having
    been sent by registered or certified mail, return receipt requested, postage prepaid or (iv) one (1) day after deposit with
    a nationally recognized overnight courier, specifying next day delivery. All communications shall be sent either by email,
    or fax, or to the email address or facsimile number set forth on the signature page hereto. The physical address, email address,
    and phone number provided on the signature page hereto shall be considered valid pursuant to the above stipulations; should
    the Company’s contact information change from that listed on the signature page, it is incumbent on the Company to inform
    the Holder.
	 	 	 
	 	22.	Severability.
    If one or more provisions of this Agreement are held to be unenforceable under applicable law, such provision shall be excluded
    from this Agreement and the rest of the Agreement shall be enforceable in accordance with its terms.
	 	 	 
	 	23.	Usury.
    If it shall be found that any interest or other amount deemed interest due hereunder violates the applicable law governing
    usury, the applicable rate of interest due hereunder shall automatically be lowered to equal the maximum rate of interest
    permitted under applicable law. The Company covenants (to the extent that it may lawfully do so) that it will not seek to
    claim or take advantage of any law that would prohibit or forgive the Company from paying all or a portion of the principal,
    Interest or Default Interest on this Note.
	 	 	 
	 	24.	Successors
    and Assigns. This Agreement shall be binding upon all successors and assigns hereto. The Company may not assign this Note
    without the prior written consent of Holder. This Note and any shares of Common Stock issued upon conversion of this Note
    may be offered, sold, assigned or transferred by Holder without the consent of the Company.

 

—
SIGNATURE PAGE TO FOLLOW —

 

    	 	7	 

    	 

    

 

 

 

IN
WITNESS WHEREOF, the Company has caused this Note to be signed by its CEO, on and as of the Issuance Date.

 

Propanc
Biopharma, Inc.

 

Signature:

 

	By:	/s/
    James Nathanielsz	 
	 	 	 
	Title:	CEO	 
	 	 	 
	Address:	302/6
Butler St, Camberwell, VIC, 2134, Australia	 
	 	 	 
	 	 	 
	 	 	 
	 	 	 
	 	 	 
	Email:	j.nathanielsz@propanc.com	 
	 	 	 
	Phone:	+61
3 9882-0780	 
	 	 	 
	Facsimile:	+61
3 9882-9969	 

 

JSJ
Investments Inc.

 

Signature:

 

Sameer
Hirji, President JSJ

 

Investments
Inc.

10830
North Central Expressway, Suite 152

Dallas
TX 75231

888-503-2599

 

    	 	8	 

    	 

    

 

 

 

Exhibit
1

Conversion
Notice

 

Reference
is made to the 8% Convertible Note issued by Propanc Biopharma, Inc. (the “Note”), dated June 26, 2018 in the principal
amount of $113,000 with 8% interest. This note currently holds a principal balance of $113,000. The features of conversion stipulate
a Conversion Price equal to a 35% discount to the lowest trading price during the previous ten (10) trading days to the date of
a Conversion Notice; pursuant to the provisions of Section 2(a)(ii) in the Note.

 

In
accordance with and pursuant to the Note, the undersigned hereby elects to convert $______ of the principal/interest balance
of the Note, indicated below into shares of Common Stock (the “Common Stock”), of the Company, by tendering the Note
specified as of the date specified below.

 

Date
of Conversion: ______________

 

Please
confirm the following information:

 

Conversion Amount: $___________________

 

Conversion
Price: $________________ (_____% discount from $_________________)

 

Number
of Common Stock to be issued: ________________________________________________________________

 

Current
Issued/Outstanding: ________________________________________________________________________

 

If
the Issuer is DWAC eligible, please issue the Common Stock into which the Note is being converted in the name of the Holder of
the Note and transfer the shares electronically to:

 

[BROKER
INFORMATION]

 

Holder
Authorization:

 

	JSJ
    Investments Inc.	 
	10830
    North Central Expressway, Suite 152	*Do
    not send certificates to this address
	Dallas,
    TX 75231	 
	888-503-2599	 
	Tax
    ID: 20-2122354	 

 

Sameer
Hirji, President

 

[DATE]

 

[CONTINUED
ON NEXT PAGE]

 

    	 	9	 

    	 

    

 

 

 

PLEASE
BE ADVISED, pursuant to Section 2(e)(ii) of the Note, “Upon receipt by the Company of a copy of the Conversion Notice, the
Company shall as soon as practicable, but in no event later than one (1) Business Day after receipt of such Conversion Notice,
SEND, VIA EMAIL, FACSIMILE OR OVERNIGHT COURIER, A CONFIRMATION OF RECEIPT OF SUCH CONVERSION NOTICE TO SUCH HOLDER INDICATING
THAT THE COMPANY WILL PROCESS SUCH CONVERSION NOTICE in accordance with the terms herein. Within two (2) Business Days after the
date of the Conversion Confirmation, the Company shall have issued and electronically transferred the shares to the Broker indicated
in the Conversion Notice; should the Company be unable to transfer the shares electronically, they shall, within two (2) Business
Days after the date of the Conversion Confirmation, have surrendered to FedEx for delivery the next day to the address as specified
in the Conversion Notice, a certificate, registered in the name of the Holder, for the number of shares of Common Stock to which
the Holder shall be entitled.”

 

Signature:

 

	 	 
	James
    Nathanielz 	 
	CEO	 
	Propanc
    Biopharma, Inc.	 

 

    	 	10

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