Document:

Exhibit
10.9

 

 

[stamp:] confidential

Caroline Rodenburg

EY

Sept. 18, 2006  12:34 EDT

 

J-DE-7.1:1-1

 

Lease

 

1.                                      Contracting
parties, property and contract period

 

The City of [Freie und Hansestadt]
Hamburg (hereinafter referred to as Lessor) leases to Philips Semiconductors
GmbH, address: Stresemannallee 101, 22529 Hamburg (hereinafter referred to as
Lessee) the following property (hereinafter referred to as the Leased
Property):

 

Hamburg-Lokstedt

Subplot 4014

Of sub-district Lokstedt

 

with an area of 3,334 m(2), indicated in green on the attached site
plan, for the period from August 1, 2002 until July 31, 2007.

 

2.                                      Purpose
and development

 

The Leased Property is leased for commercial purposes, and specifically
to be maintained as a parking area for employees of Philips Semiconduktors
GmbH.

 

A use of the area for other purposes is not permitted and entitles
Lessor to termination without notice in accordance with No. 18.2 of the General
Contract Terms and Conditions (AVB).

 

Lessee has already created the parking facility.

 

In a departure from No. 4 AVB, the construction of other structures on
the property being made available is not permitted.

 

3.                                      Rent

 

The annual rent is EUR 26,220 (in words twenty-six thousand two hundred
twenty Euros) and shall be deemed to be a fixed rent up until July 31, 2007.

 

It is payable quarterly in advance in installments of EUR 6,555.- and
must be credited to the Landeshauptkasse Hamburg [Hamburg
Exchequer] on the 1st day of every calendar quarter.

 

In addition, Lessee agrees to reimburse Lessor for the full amount of
sidewalk cleaning fees incurred, in each case upon first request.

 

Payments are to be made to the Landeshauptkasse Hamburg,
account No. 106831 at the Hamburgische Landesbank (bank routing code 200 500
00) with the reference number [    ]

 

[stamp:] confidential

Caroline Rodenburg

EY

Sept. 18, 2006  12:34 EDT

 

 

[stamp:] confidential

Caroline Rodenburg

EY

Sept. 18, 2006  12:34 EDT

 

4.                                      General
contract terms and conditions

 

Except as additional or other agreements may be provided for in numbers
2, 5 and 6 of this lease, the lease shall otherwise be subject to the “General
Contract Terms and Conditions of the City of Hamburg for the Leasing of
Properties” (AVB in the version of February 2002), which are attached and are
part of the present agreement.

 

5.                                      Termination

 

The agreement shall cease without termination on July 31, 2007 upon
expiration of the period agreed under No. 1.

 

Termination shall otherwise be governed by the provisions of law and
the AVB.

 

6.                                      Special
contract terms and conditions

 

The following is agreed in addition or as a change to the AVB:

 

6.1                                 Lessee has created a
structure (parking facility) on the Leased Property on the basis of the lease
dated August 12, 1991 as well as the lease amendments dated February 26, 1992,
March 22, 1993, November 1, 1994, May 3, 1996 and the lease dated February 18,
1998.

 

It is only intended for a temporary purpose within the meaning of § 95
subsection 1 BGB [German Civil Code] and therefore remains the property of
Lessee.

 

No compensation is due in the event of an extraordinary termination in
accordance with No. 20 AVB.

 

6.2                                 Lessee’s right of
termination—as provided in § 549 subsection 1 sentence 2 BGB—in the event that
consent to subleasing is not granted (No. 16 AVB) is precluded. However, Lessor
will only withhold its consent on important grounds.

 

6.3                                 In the event of a
change in ownership or a change in the corporate form on the part of Lessee,
No. 16 AVB shall apply accordingly.

 

6.4                                 Upon termination,
Lessee shall be required to return the Leased Property in a cleared state. To
this end, reference is made to the full content of Item 19 AVB. This
notwithstanding, Lessor agrees, however, to assert this claim only to the
extent that it is necessary for financial reasons or reasons of expediency in
light of an intended or conceivable subsequent use. However, Lessor will not
assert any right to re-conversion of access roads or of the sidewalk.

 

6.5                                 Lessee shall maintain
the Leased Property including the footpath at its own expense. In the event of
a removal, it has no claims whatsoever to reimbursement of expenditures of any
kind whatsoever.

 

[stamp:] confidential

Caroline Rodenburg

EY

Sept. 18, 2006  12:34 EDT

 

 

[stamp:] confidential

Caroline Rodenburg

EY

Sept. 18, 2006  12:34 EDT

 

6.6                                 Lessee agrees to obtain liability insurance
coverage appropriate to the intended purpose of the Leased Property or to
include it under existing insurance coverage.

 

It
further agrees to hold the City harmless of all claims by third parties that
might arise from the state of the property or its use.

 

6.7                                 As an addendum to Item 9 AVB it is
agreed that Lessee will be obligated to maintain the existing metal enclosure.

 

6.8                                 Lessee agrees to make the Leased Property
available, in consultation with Lessor, for neighborhood-based activities.

 

Such
availability will be granted by Lessee in line with the model agreement
attached to the present agreement.

 

Lessee
shall be entitled to any fee to be charged. The amount of the fee shall be
determined by the rates that are charged by Lessor for other comparable spaces
(presently: one-time fee of EUR 50 for circuses; EUR 10 per day per
unit for fairground rides etc.)

 

6.9                                 Item 2.3 AVB shall not apply.

 

	 
	
  As
  Lessor:

  	
   

  	
  As
  Lessee:

  
	
   

  	
   

  	
   

  	 

	
  City
  of Hamburg

  	
   

  	
  Philips
  Semiconductors GmbH

  	 

	
  Eimsbuttel
  District Office

  	
   

  	
  Hamburg

  	 

	
  Property
  Office June 26, 2002

  	
   

  	
   

  	 

	
   

  	
   

  	
   

  	 

	
   

  	
   

  	
   

  	 

	
  [signatures]

  	
   

  	
   

  	
  [signatures]

  	
   

  	 

							

 

Lease/ack

 

[stamp:] confidential

Caroline Rodenburg

EY

Sept. 18, 2006  12:34 EDT

 

 

[stamp:] confidential

Caroline Rodenburg

EY

Sept. 18, 2006  12:34 EDT

 

FREIE UND HANSESTADT HAMBURG

 

EIMSBUTTEL DISTRICT OFFICE

PROPERTY OFFICE

 

[See
original for letterhead information]

 

- E/LI 92.97 -

 

Subject:

 

Availability
for use of partial area of approximately      m2
of the

Sub-plot

shown in the

attached site plan in green and/or brown

 

Dear

 

In
response to your request, the Property Office is making the above-referenced
area available to you for the period
from                           
to                                  
for the purpose of

 

Model Agreement

 

Terms
and conditions:

 

1.             The
area is made available in its current state. The City assumes no liability,
especially for the load-bearing capacity of the sub-soil and the access roads.

 

2.             You
agree to keep all claims for compensation by third parties that are or could be
brought against the City away from the City.

 

3.             The
area is to be returned in the presence of a representative of the Property
Office in a cleared and undamaged state on the first working day after the end
of the availability period. At this time, all access roads must also have been returned
to an orderly state.

 

4.             A
fee in the amount of DM          (in
words:                            German
Marks) is payable for the availability, to be remitted by the above-referenced
date—stating the payment reference number and preferably using the enclosed
transmittal form—to one of the following accounts of the Landeshauptkasse
Hamburg:

 

[initials]

 

[stamp:] confidential

Caroline Rodenburg

EY

Sept. 18, 2006  12:34 EDT

 

 

[stamp:] confidential

Caroline Rodenburg

EY

Sept. 18, 2006  12:34 EDT

 

Hamburgische
Landesbank—Bank Routing Code 200 500 00 —

Account
No. 101 600

 

5.             This
availability does not take the place of any licenses, approvals or permits that
may additionally be required on the basis of statutory or contractual
provisions, regardless of whether they do or do not fall under the authority of
other agencies or offices of the Eimsbuttel District Office.

 

6.             

 

Model Agreement

 

To
indicate your agreement, please return the enclosed copy of this letter with
your signature to the Property office.

 

Regards

 

[initials]

 

[stamp:] confidential

Caroline Rodenburg

EY

Sept. 18, 2006  12:34 EDT

 

 

[stamp:] confidential

Caroline Rodenburg

EY

Sept. 18, 2006  12:34 EDT

 

 

	
   

  	
  [stamp:] confidential

  	
  [stamp:]

  
	
   

  	
  Caroline Rodenburg

  	
  Oct. 1, 1997

  
	
   

  	
  EY

  	
  City of Hamburg

  
	
   

  	
  Sept. 18, 2006 
  12:34 EDT

  	
  Eimsbuttel District Office

  
	
   

  	
   

  	
  Property Office

  
	
   

  	
   

  	
  Grindelberg 62-66

  

 

[stamp:] confidential

Caroline Rodenburg

EY

Sept. 18, 2006  12:34 EDT

 

 

[stamp:]
confidential

Caroline Rodenburg

EY

Sept. 18, 2006  12:34 EDT

 

General Terms and Conditions of the City of Hamburg

for the Leasing of Properties (AVB)

 

1.                                      Condition and liability.

 

1.1                                 Lessee takes possession of the Leased
Property in the state existing at the start of the contractual relationship
without taking delivery separately on-site. The boundaries of the leased area
are known to Lessee; they will be documented by the building authorities—Office
for Geo-Information and Surveys—upon request at Lessee’s expense.

 

1.2                                 Unless reference to defects is made in the
lease, Lessor is not aware of any defects relating to the property, especially
to the subsoil. Any liability for compensation on the part of Lessor according
to § 536a subsection 1 BGB is ruled out.

 

2.                                      Rent

 

2.1                                 Offsets

 

Lessee
may offset rent only against receivables acknowledged by Lessor or recognized
by declaratory judgment. It may not refuse payment of the rent or part thereof
by citing a withholding right based on a legal relationship other than the
present agreement. In the case of arrears, this applies also to the period
after termination of the lease.

 

2.2                                 Arrears

 

If
rent is not paid when due, default interest will be charged in an amount of
8 per cent per annum above the relevant base interest rate; if a consumer
is party to the legal transaction, the interest rate will be 5 per cent
above the relevant base interest rate. The base interest rate in effect when
the arrears occur will be applied for the entire default period. An appropriate
amount of demand costs may also be billed for every demand notice. Lessee is at
liberty to show that no or only immaterial injuries or losses have occurred.

 

2.3                                 Review of rent for leases with a fixed
contract period

 

The
contracting parties have the right to review the appropriateness of the rent
agreed for the Leased Property every three years and to agree on a new rent
amount. The reference date for the start of the three-year period is the first
day of the month in which the lease commences.

 

Rent
adjustments shall take changes in purchasing power into account that have
occurred since the signing of the agreement. They shall be guided in particular
by the index for the cost of living of all private households in Germany. The
rent agreed at the signing of the contract shall, in any event, be the minimum
rent.

 

(FB4
– 128 – (02/02))

 

[stamp:] confidential

Caroline Rodenburg

EY

Sept. 18, 2006  12:34 EDT

 

 

 

[stamp:] confidential

Caroline Rodenburg

EY

3

Sept. 18, 2006  12:34 EDT

 

5.                                      Access roads

 

Lessee
shall arrange to create or alter any access roads or crossings that may be
required at its own expense.

 

Upon
termination of the lease, Lessor shall have the right to take over the access
roads or crossings created by Lessee, or to demand that Lessee remove the same.
If Lessor decides to take over said facilities, Lessee’s right of removal is
ruled out; the facilities shall become Lessor’s property without compensation.
If Lessor does not exercise its right to take possession, Lessee shall remove
said facilities completely at its own expense and restore the original state.

 

6.                                      Utility and waste removal
connections, pipes and cables

 

6.1                                 Lessee shall arrange to install all necessary
utility and waste removal pipes, cables and connections to the public mains at
its own expense, provided the same are not already in place at the start of the
lease.

 

6.2                                 Lessee must tolerate any installations and
equipment for utilities or waste removal that are in place in the Leased
Property. It may only alter, relocate, remove or build over such pipes at its
own expense with the prior written approval of Lessor and the responsible
governmental authority and/or the responsible network, utility or waste removal
enterprise; in doing so, it is required to comply with the relevant regulations
as well as additional conditions imposed, if any.

 

6.3                                 In the protective area around the pies and
cables, Lessee shall refrain from all measures or uses that could interfere
with or jeopardize these installations or impede or interfere with the
necessary maintenance.

 

7.                                      Maintenance and traffic safety

 

7.1                                 Lessee is required to maintain the Leased
Property including the buildings, installations and access roads included in
the lease or belonging to it at its own expense in a proper condition that
ensures traffic safety. The buildings, installations and equipment included in
the lease are to be maintained in operational readiness; parts are to be
replaced as necessary.

 

7.2                                 Lessee is further required to properly clean
and keep open any bodies of water on or adjacent to the Leased Property that
are second-order bodies of water according to the Hamburg Water Act (HWaG) as
most recently amended in accordance with the instructions of Lessor or the
responsible governmental authority to the extent that Lessor is responsible for
such cleaning. Lessee assumes this obligation also vis-à-vis the Water
Authority and authorizes Lessor to inform the Water Authority accordingly
(§ 41 HWaG).

 

[stamp:] confidential

Caroline Rodenburg

EY

Sept. 18, 2006  12:34 EDT

 

 

[stamp:] confidential

Caroline Rodenburg

EY

5

Sept. 18, 2006  12:34 EDT

 

11.                               Sidewalk cleaning

 

Lessee
is obligated to clean the sidewalks and access roads bordering on the Leased
Property at its own expense to the extent that this is required by law of the
property owner, and in particular to remove snow and ice to spread sufficient
materials to dull slippery surfaces. It shall hold Lessor harmless of all
claims arising from a neglect of this obligation.

 

12.                               Impairment of the property

 

Lessee
is responsible for ensuring that the boundaries of the property are not
infringed, that it is not used by unauthorized persons—especially to walk or
drive across—and that no garbage, debris or other environmentally hazardous or
detrimental materials are discarded on it. It shall prohibit violations and
report them to Lessor without delay.

 

Lessee
is further obligated to inform Lessor without delay if it becomes known that
facilities are installed or maintained on neighboring properties that are
expected to result in an impermissible impairment of the Leased Property.

 

13.                               Pest and weed control

 

13.1                           Lessee is required to arrange for pest control services at its own
expense if vermin are found in the Leased Property and to take the respective
measures for the control of rats and vermin that are ordered by governmental
authorities.

 

13.2                           In connection with weed control, the use of chemical weed control
substances (herbicides is impermissible.

 

14.                               Third party claims

 

Lessee
is required to hold Lessor harmless of all claims by third parties arising from
the state of the Leased Property, its use or neglect of the obligations that
Lessee has assumed. It shall obtain sufficient liability insurance coverage and
provide proof of having done so if requested.

 

15.                               Entry to the Leased Property

 

15.1                           Lessee grants Lessor’s representatives permission to enter the Leased
Property at appropriate intervals or as required and also in order to perform
work (surveys, repairs, drilling for soil testing, lowering of the groundwater
level, etc.) that the latter deems necessary. If possible, Lessor shall give
timely advance notice before doing so.

 

[stamp:] confidential

Caroline Rodenburg

EY

Sept. 18, 2006  12:34 EDT

 

 

[stamp:] confidential

Caroline Rodenburg

EY

7

Sept. 18, 2006  12:34 EDT

 

18.2                           Termination without notice

 

Without
prejudice to the possibilities of termination, if any, provided for in the
Lease, Lessor can terminate the agreement without notice if Lessee

 

18.2.1                  does
not start to use the Leased Property for the intended purpose within three
months after entering into the agreement;

 

18.2.2                  does
not use the Leased Property for more than six months for the intended purpose,
provided Lessor does not offer proof that this involves a temporary
circumstance for which it is not responsible;

 

18.2.3                  uses
the Leased Property despite warning notice in a manner that is not permissible
under the lease or without the permits required under public law;

 

18.2.4                  has
not started construction of the buildings and facilities provided for in the
agreement within one year from entering into the agreement;

 

18.2.5                  despite
a warning notice, does not comply with other obligations assumed under the
agreement, including these General Contract Terms and Conditions within an
appropriately set grace period;

 

18.2.6                  changes
its residence or domicile in a manner that prevents it, in Lessor’s judgment,
from properly using the property or

 

18.2.7                  it
or a co-lessee is prevented for reasons of an actual or legal nature to dispose
of its assets (death and/or liquidation, enforcement of judgment).

 

18.3                           Extraordinary termination

 

In
cases of leases with a fixed duration, Lessor has the right to terminate the
lease before expiration of the agreement either entirely or subject to the
proviso that parts of the Leased Property be re-delivered to Lessor early if
either the entire Leased Property or parts thereof are urgently required in the
public interest. In the event of early termination of the agreement, such
cancellation can only be notified as of the last day of any month with a
six-month notice period. Whether the conditions for an extraordinary right of
termination are met is decided by Lessor alone.

 

In
the event of a partial termination, the rent shall be reduced in the proportion
or the value of the part to be ceded relative to that of the entire Leased
Property. Tenant shall be free on its part, however, to cancel the remainder of
the Leased Property as of the same date within three months from receipt of the
termination notice if it cannot reasonably be expected to continue the lease.

 

18.4                           Exclusion of tacit extension

 

In
a departure from § 545 BGB, the lease is not tacitly extended if the
Leased Property is not returned as contractually agreed at the end of the lease
period.

 

[stamp:] confidential

Caroline Rodenburg

EY

Sept. 18, 2006  12:34 EDT

 

 

[stamp:] confidential

Caroline Rodenburg

EY

9

Sept. 18, 2006  12:34 EDT

 

In
the event of a partial termination, the right to compensation shall only extend
to the structures and facilities constructed on the area to be returned,
provided that Lessee, on its part, has not legitimately terminated the entire
Leased Property.

 

No
compensation is paid for buildings or parts of building constructed without
Lessor’s approval.

 

21.                               Contract penalty, substitute
performance

 

21.1                           Lessor can demand a contract penalty without prejudice to satisfactory
cure in the event of Lessee’s violation of

 

	
  -

  	
  Items
  6.2 or 6.3 AVB

  	
  up
  to one half of the

  
	
   

  	
  (Pipes
  and cables) or

  	
  annual
  rent

  
	
   

  	
  Item 10
  AVB (Advertising displays)

  	
   

  
	
   

  	
   

  	
   

  
	
  -

  	
  Items
  16.1 and 16.2 sentence 1 AVB

  	
  up
  to one year’s rent

  
	
   

  	
  (Assignment
  and subletting) or

  	
   

  
	
   

  	
  Item 19.1
  para. 3 AVB (Soil contamination)

  	
   

  
	
   

  	
   

  	
   

  
	
  And—after
  prior warning notice—in the event of Lessee’s violation of

  
	
   

  	
   

  	
   

  
	
  -

  	
  Item 2
  para. 1 of the lease

  	
  up
  to one year’s rent

  
	
   

  	
  (Intended
  purpose) or

  	
   

  
	
   

  	
   

  	
   

  
	
  -

  	
  Item 7 AVB
  (Maintenance and traffic safety)

  	
  up
  to one half of the

  
	
   

  	
  Item 9 AVB
  (Enclosure) or

  	
  annual
  rent

  
	
   

  	
  Item 11 AVB
  (Sidewalk cleaning)

  	
   

  

 

21.2                           If Lessee continues the conduct in violation of the agreement despite
the demand for a contract penalty, said penalty may be repeatedly imposed.

 

21.3                           The amount of the contract penalty incurred in the specific case shall
be determined by Lessor according to its reasonable judgment in accordance with
the gravity of the contract violation, especially according to the degree of
interference with the public interest and the intended purpose of the leasing
as well as the degree of culpability. § 343 BGB (penalty reduction)
shall remain unaffected.

 

21.4                           The right to termination without notice and possible claims for damages
shall remain unaffected.

 

21.5                           Lessor also has the right—after having unsuccessfully set an
appropriate grace period—to arrange for performance of an action that Lessee
has failed to perform in violation of the lease at the latter’s expense.

 

[stamp:] confidential

Caroline Rodenburg

EY

Sept. 18, 2006  12:34 EDTExhibit 10.10

 

CONFIDENTIAL TREATMENT REQUESTED BY NXP B.V.

 

Philips Tower Hamburg Workplace Agreement

 

20099 Hamburg, Lübeckertordamm 5

 

Workplace Agreement

 

This
Workplace Agreement consists of a Sublease Agreement and a Service Level
Agreement for the Philips Tower Hamburg

 

	
  The
  Sublessor offers the users of the Philips Tower space in an exquisite and
  prestigious building in an attractive location near the downtown area and the
  Aussenalster river.

  	
   

  	
  [photograph]

  
	
   

  	
   

  	
   

  
	
  In
  addition, we offer a series of support services to create a professional work
  environment and enable the users [of the building] to concentrate on their
  core businesses.

  	
   

  	
   

  

 

1

 

 

Preamble:

 

On
June 18, 2004, Philips GmbH entered into a Lease Agreement (hereinafter
referred to as the “Master Lease Agreement”) with Credit Suisse Asset
Management Immobilien Kapitalgesellschaft mbH for an office building to be
constructed on Lübeckertordamm/Sechslingspforte. Possession of the Leased
Property was delivered on December 15, 2005.

 

After
Credit Suisse delivered possession of the Leased Property to Philips GmbH, the
latter subleased the leased areas listed on the next page to the subtenant
under workplace management agreements.

 

Subleasing
to subtenants is done under the terms and conditions agreed upon by Philips
GmbH and Credit Suisse in the Master Lease Agreement, unless the leases
otherwise provide.

 

2

 

 

	
  Sublessor

  	
   

  	
  Philips
  GmbH

  Lübeckertordamm 5
 20099 Hamburg
 
 Funloc 329873

  
	
   

  	
   

  	
   

  
	
  Subtenant

  	
   

  	
  Philips
  Semiconductors

  Germany GmbH
 Lübeckertordamm 5
 20099 Hamburg

  
 Funloc 321506

  

 

	
  Leased
  area

  	
   

  	
  Floor

  	
  Leased
  area/m2

  	
   

  
	
   

  	
   

  	
  3rd floor

  	
  47

  	
    Appendix
  1

  
	
   

  	
   

  	
  8th floor

  	
  1,035

  	
    Appendix
  2

  
	
   

  	
   

  	
  9th floor

  	
  734

  	
    Appendix
  3

  
	
   

  	
   

  	
   

  	
   

  	
    Appendix

  
	
   

  	
   

  	
   

  	
   

  	
    Appendix

  
	
   

  	
   

  	
   

  	
   

  	
    Appendix

  
	
   

  	
   

  	
   

  	
   

  	
    Appendix

  
	
   

  	
   

  	
  General
  building area

  	
  411

  	
   

  
	
   

  	
   

  	
  Total

  	
  2,227

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Permanent
  parking spaces

  	
   

  	
  1st basement floor

  	
  12

  	
    Appendix
  4

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Intended
  use

  	
   

  	
  Office

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Inception
  of lease

  	
   

  	
  Oct.
  1, 2006

  	
   

  	
   

  	
   

  
	
  Expiration
  of lease

  	
   

  	
  Dec.
  31, 2007

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Date:
  Sept. 8, 2006

  	
   

  	
   

  	
   

  	
  Date:
  Sept. 8, 2006

  	
   

  	
   

  
	
  [signature]

  	
   

  	
   

  	
   

  	
  [signature]

  	
   

  	
   

  
	
  Sublessor

  	
   

  	
   

  	
   

  	
  Subtenant

  	
   

  	
   

  

 

3

 

 

Sublease Agreement

 

§ 1 Leased Property

 

1.                    The Sublessor hereby leases the
aforementioned space at Lübeckertordamm 5, 20099 Hamburg to the Subtenant.

 

2.                    The leased space in question is “preliminary
leased space.” The “final leased space” will not be determined until the
building is completed by Credit Suisse Asset Management. The “final leased
space” of the area delivered shall be determined in accordance with the Guidelines
for Calculating Leased Space for Offices (MF-B) issued by gif (Gesellschaft für
Immobilienwirtschaftliche Forschung e. V.) and the gif Guidelines for
Calculating Leased Space for Retail Purposes.”

 

3.                    The leased area shall consist of the following:

 

•                       net office space

•                       a pro rata share of the circulation areas,
such as corridors, pantries, and bathrooms

•                       a share of the “general building area,” which
is available to all users (e.g. canteen, reception hall).

 

4.                    The Subtenant declares that it agrees to the
method of measuring the leased area. This shall serve as the basis for future
rent calculations and billing of ancillary costs.

 

5.                    The leased space shall be in “New
Construction/First Occupancy” condition when possession is delivered.

 

§ 2 Purpose of the Tenancy; Use of the Leased Space

 

1.                    The Subtenant may use the leased space only
for the contractually agreed-upon purpose (office). Such use may be changed
only with the written approval of the Sublessor.

 

2.                    The Subtenant has no right to protection from
competition of any kind.

 

3.                    No items, such as boxes or other objects, may
be stored outside the leased area.

 

4.                    The Subtenant shall ensure that the operation
of its business does not unduly interfere with third parties or other users of
the building.

 

4

 

 

§ 3 Lease Period and Termination

 

This section does not apply to Philips Semiconductors Germany GmbH

 

1.                    The Master Lease Agreement has a fixed term
of 10 years (December 15, 2005 to December 14, 2015).

 

The
subtenancy shall commence on January 1, 2006 and is entered into for an
indefinite period of time.

 

2.                    The Subtenant shall have the right to return
rental space to the Sublessor after the following rental periods and under the
following conditions:

 

a.             Return of rental
space within the first five years of the lease:

 

•                       The Subtenant can terminate the lease with
respect to portions of the leased space with a notice period of nine months as
of the end of any month. This notice period shall apply until September 30,
2009. Thereafter, the lease can be terminated with a notice period of 15 months
as of the end of the rental year (by analogy to § 3/2b).

•                       The portion of the leased area being returned
must be contiguous and constitute at lease 1/4 of a standard floor
(app. 270 m2, including a pro rata share of the circulation area,
but excluding the general building area).

•                       If individual rooms or portions of the rental
space constituting less than 1/4 of a standard
floor are to be returned, the Sublessor shall collaborate with the Subtenant to
work out a possible solution for optimizing space to create a contiguous area
that the Sublessor can lease out. The Subtenant shall bear the costs of the
necessary alterations, relocations, etc.

•                       The Subtenant is required to absorb the rent
payments for any periods when the returned space is vacant until the expiration
of the fifth year of the lease (December 31, 2010) though for a maximum of 36
months from the expiration of the notice period.

•                       The Subtenant shall pay a fee for fitting out
and re-conversion (in accordance with § 4/1) for a period of 60 months.

•                       The Sublessor shall make every effort to
relet the returned rental area quickly.

 

5

 

 

b.                    Return of rental space after the
first five years of the lease:

 

•                       Either Contracting Party may give 15 months’
notice as of the end of any rental year; they may do so for the first time
effective December 31, 2010.

 

•                       The portion of the leased space being
returned must be contiguous and constitute at least 1/4 of a standard
floor (about 270 m2, including a pro rata share of the circulation
area, but excluding the general building area).

 

Under
the Master Lease Agreement, the Sublessor may return a maximum of 1,400 m2
of contiguous rental space per year to the Principal Lessor from the end of the
fifth year of the lease. The rental space must be located on upper floors 10 to
16 of the building.

 

Any
costs for space optimization, relocations, alternations, etc., resulting from
the return of space by the Subtenant shall be borne by the Subtenant.

 

•                       If individual rooms or portions of rental
space that constitute less than 1/4 of a standard
floor are to be returned, the Sublessor shall collaborate with the Subtenant to
work out a possible solution for optimizing space to create contiguous area
that the Sublessor can lease out. The Subtenant shall bear the costs for the
necessary alterations, relocations, etc.

 

•                       The Subtenant shall pay a fee for fitting out
and re-conversion (in accordance with § 4/1) for the remainder of the
depreciation period (until 2015).

 

3.                    When the Master Lease Agreement ends by termination
or expiration, this subtenancy shall end automatically.

 

4.                    All notices of termination must be in
writing.

 

5.                    When possession of the Leased Property is
delivered to the Subtenant, a record of delivery shall be made and signed by
both Contracting Parties.

 

6.                    After giving notice of termination, the
Subtenant shall grant any potential new tenant access to the leased premises
after prior consultation.

 

6

 

 

§ 4 Rent and Ancillary Costs

 

1.                    The monthly rent per m2 shall be
composed of the following elements:

 

	
  Net rent for rental space (without heat)

  	
   

  	
  EUR

  	
  12.64

  	
   

  
	
  Net rent for parking spaces (without heat)

  	
   

  	
  EUR

  	
  0.84

  	
   

  
	
  Advance payment of ancillary costs (Credit Suisse)

  	
   

  	
  EUR

  	
  3.27

  	
   

  
	
  Advance payment of ancillary costs (Philips)

  	
   

  	
  EUR

  	
  4.21

  	
   

  
	
  Depreciation (fitting out)

  	
   

  	
  EUR

  	
  3.55

  	
   

  
	
  Depreciation (re-conversion in accordance with the
  Master Lease)

  	
   

  	
  EUR

  	
  1.04

  	
   

  
	
  Financing

  	
   

  	
  EUR

  	
  0.90

  	
   

  
	
  Total monthly per m2

  	
   

  	
  EUR

  	
  26.46

  	
   

  

 

Net
rent (without heat) for permanently allocated parking spaces              EUR 75.00

(per
parking space)

 

2.                    As soon as the final rental space in
accordance with § 1 para. 4 is determined, the preliminary rent shall be
adjusted on the basis of the results of the survey. The Sublessor is free to
decide the date on which the adjustment will be made.

 

3.                    The tenant shall pay the rent each month in
advance, no later than the third business day of the month.

 

4.                    The tax number assigned to the Sublessor by
the Hamburg Tax Office is:

 

27/278/0000/2

 

§ 5 Sublessor’s VAT Tax Option (for Third-Party Tenants)

 

1.                    The Sublessor has waived exemption from VAT
tax under § 4 No. 12a of the USTG [VAT Tax Act] for the leasing of the premises
in accordance with § 9 of the VAT Tax Act (VAT tax option). Accordingly, the Subtenant
must pay VAT in the statutory amount in addition to basic rent and advance
payments of ancillary and heating costs.

 

The
Subtenant is aware that the Sublessor may exercise the VAT tax option only
under the conditions set forth in § 9 para. 2 of the VAT Tax Act.

 

2.                    In this regard, the Parties enter into the following
agreements:

 

3.                    The Subtenant agrees to use the Leased
Property only for sales that do not exclude deduction of input VAT by the
Sublessor.

 

7

 

 

4.                    It further agrees to provide the Sublessor,
promptly upon request with all documents necessary to enable the Sublessor to
comply with its documentation obligations vis-à-vis the tax authorities under §
9 para. 2 of the VAT Tax Act. To this extent, the Sublessor can require the
Subtenant to provide the documentation and/or declarations required from him by
the competent tax authorities.

 

5.                    If circumstances that affect the
permissibility of the Sublessor’s use of the VAT tax option should arise with
the Subtenant or such circumstances should be assumed to exist by the tax
authorities during a tax audit, the Subtenant shall promptly inform the
Sublessor of this.

 

6.                    To the extent that and as long as the tax
authorities use a safe de minimis limit
with respect to the term “exclusive use for sales that do not exclude deduction
of input VAT”—such save limit also being recognized by the tax courts—this de minimis limit shall also circumscribe the definition of
exclusivity in the foregoing provisions (see Sec. 148a para. 3 UstR [VAT
Regulation] 2005).

 

7.                    If the Subtenant should violate the
obligations under this paragraph, the Subtenant shall compensate the Sublessor
for all losses it may suffer as a result.

 

§ 6 Adjustment of Rent (Net Rent without Heat)

 

1.                    Under the Master Lease Agreement, the net
rent (without heat) for the leased areas and parking spaces shall be adjusted
every two years as of January 1 in accordance with the percentage change in the
Consumer Price Index (base year 2000 = 100) determined by the Federal
Statistical Office of the Federal Republic of Germany. The basis for
calculation of the first rent adjustment is the level of the Index in the month
in which the obligation to pay rent under the Master Lease Agreement begins
versus the level of the index in December of the second full calendar year,
with the adjusted rent being due as of the following January 1. Thus, the net
rent (without heat) is increased or decreased every two years as of January 1
to the extent the index has changed as compared to the level at the last
index-related rent adjustment.

 

2.                    If the aforementioned index is discontinued
and replaced by a different index, the new index shall replace the
aforementioned index. Otherwise, the Contracting Parties are mutually obligated
to agree upon an appropriate rule that comes closest in economic effect to the
agreement entered into here.

 

3.                    The Contracting Parties agree that the net
rent (without heat) for the space and the parking spaces can be adjusted by
analogy to the same extent and at the same point in time as provided in the
Master Lease Agreement.

 

8

 

 

§ 7 Ancillary Costs under the Master Lease Agreement with Credit Suisse

 

1.                    The Subtenant shall bear all ancillary costs
in accordance with the Operating Costs Regulation, including No. 17 (Appendix
5), to the extent they are billed to the Subtenant by the Principal Lessor or
that such costs are incurred by the Sublessor.

 

2.                    If new operating costs are incurred or new
public levies are introduced, which are not currently included in the Operating
Costs Regulation, the Lessor can pass them on to the Subtenant in the same
ratio as the other operating costs.

 

3.                    The Sublessor shall be entitled to establish
a new allocation standard for operating costs (as a whole, or for individual
categories of costs) at any time, insofar as this is appropriate.

 

4.                    The Sublessor shall be entitled to demand
reasonable monthly advance payments for operating and heating costs, which are
to be paid when the monthly rent is due.

 

5.                    Any difference in favor of the Sublessor
between the advance payment and the invoice amount shall be paid by the Subtenant
within 30 days of receipt of the invoice. Any overpayment shall be refunded to
the Subtenant within 30 days of receipt of the invoice.

 

6.                    The Sublessor may also re-calculate the
advance payments during the billing period, if it is apparent that the advance
payments will not cover the anticipated costs.

 

7.                    Heating and operating costs shall be billed
and passed on based on the proportion of the respective leased space occupied
by the Subtenant, including any pro rata leased space with a common right of use,
to the entire area of the property. The costs of maintaining the parking spaces
shall be allocated pro rata to the parking spaces used by the Subtenant.

 

 

9

 

 

§ 7a Philips’ Ancillary Costs

 

The
Contracting Parties shall enter into a Service Level Agreement (SLA) (Appendix
7). This SLA shall have two parts:

 

Part
A: Services provided by the Sublessor and covered by the rent per m2,
such as cleaning, waste disposal, security, technical building management, etc.

 

The
Subtenant must also make advance payments for these services (in accordance
with § 4/1). Accounting for advance payments for the current year of the lease
shall be done in December of the year.

 

The
Sublessor shall have the right, in accordance with the accounting, to adjust
the advance payment to reflect the costs actually incurred. The Sublessor may
also re-calculate the advance payments during the billing period, if it is
apparent that the advance payments will not cover the anticipated costs.

 

Part
B: Services provided by the Sublessor and billed separately in addition to the
rent, such as a mail room, telephone exchange, in-house logistics, and
catering.

 

Tariffs
or fees will be agreed upon for these services annually as part of the
budgeting procedure.

 

The
following applies for 2006:

 

	
  Mail
  room, messenger and distribution service

  	
   

  	
  A
  fixed amount of EUR 18,000

  
	
   

  	
   

  	
   

  
	
  Mail
  room fees

  	
   

  	
  Based
  on time and effort

  
	
   

  	
   

  	
   

  
	
  Telephone
  exchange

  	
   

  	
  A
  fixed amount of EUR 12,000

  
	
   

  	
   

  	
   

  
	
  In-house
  logistics

  	
   

  	
  A
  fixed amount of EUR 14,400

  
	
   

  	
   

  	
   

  
	
  Catering,
  food per employee

  	
   

  	
  EUR
  4.25

  
	
  Catering,
  canteen for guests and services

  	
   

  	
  Based
  on use

  

 

If
the services listed under Part B should change significantly, the
agreed-upon amounts can be adjusted at any time during the current year in
consultation with the Subtenant.

 

10

 

 

§ 8 Offsetting Claims by Subtenant

 

1.                    The Subtenant may not offset off
counterclaims against the rent or advance payments of ancillary costs or
exercise a right to reduce or withhold such payments unless its counterclaim is
uncontested or has been adjudged final and absolute. This shall not apply to
the case listed under § 7 para. 2.

 

2.                    If there are defects, the Subtenant can only
demand that they be eliminated, and cannot demand a reduction in rent or
damages, unless it is impossible to eliminate the defect or the defect is not
promptly eliminated.

 

§ 9 Maintenance and Use of the Leased Property

 

1.                    The Subtenant must treat the Leased Property
with care. The Principal Lessor is responsible for servicing the following
technical equipment and systems:

 

•           heating, ventilation, and climate
control

•           conveyor systems

•           technical utility systems

•           security systems

 

2.                    The costs of operating and maintaining the
aforementioned systems are covered by the Operating Costs Regulation and will
be billed to the Subtenant as part of the accounting for ancillary costs.

 

3.                    The Sublessor shall service the technical
equipment and systems owned by Philips.

 

4.                    The costs incurred to maintain and operate
the aforementioned systems are covered by the Service Level Agreement and are
billed to the Subtenant in the accounting for the ancillary costs/SLA.

 

5.                    The Subtenant must clean and care for the
leased premises, make cosmetic repairs to the interior, perform maintenance,
and make repairs within the leased premises. This applies to technical
equipment (electrical and sanitary installations, etc.) and doors and windows,
to the extent they are on or in the Leased Property. Cosmetic repairs to the
interior shall include the cleaning and, if necessary, the replacement of
carpeting.

 

6.                    The aforementioned items shall also be
handled and billed by the Sublessor as part of the Service Level Agreement.

 

11

 

 

7.                    The Subtenant shall report any defects in and
damage to the Leased Property to the Sublessor. If notice is not given in a timely
manner, the Subtenant shall be required to pay compensation for the resulting
losses.

 

8.                    The Sublessor shall assume maintenance and
repair of the general areas of the building. The costs incurred in doing so
shall be distributed on a pro rata basis among all the Subtenants as part of
the annual accounting for the ancillary costs/SLA.

 

9.                    The Subtenant shall be liable for injuries or
losses caused by its negligent violation of its duties of care and
notification, particularly by improper handling of the building technical
equipment and installations.

 

10.              The
Subtenant shall likewise be liable for injuries and losses that its members,
employees, and other persons visiting Subtenant cause through their own fault.
The Subtenant shall have the burden of proving it was not at fault.

 

§ 10 Subleasing

 

The
Subtenant is not entitled to sublet the leased space, in whole or in part.

 

§ 11 Subtenants’ Installations and Alterations

 

1.                    Installations and alterations within the
Leased Property, including installing fixed equipment or modifying such, shall
require the written permission of the Sublessor. When deciding whether to grant
permission, the Parties shall jointly determine whether it will be necessary to
reconvert and restore the original condition upon returning the leased
premises.

 

The
permission of the Principal Lessor shall be obtained if appropriate, so that
approval shall be made contingent upon the same.

 

2.                    The Subtenant shall be responsible for
obtaining and maintaining any official permits required for the aforementioned
measures, and shall also bear all costs associated with the measures.

 

3.                    The Subtenant shall have no claim to
compensation from the Sublessor for any costs or for the resulting appreciation
in value. If there is no obligation to reconvert the premises, structural
alterations shall become the property of the Sublessor without compensation.

 

4.                    The Subtenant shall bear all risks associated
with implementing the structural changes. The Sublessor is hereby released from
all claims and demands raised

 

12

 

 

against
the Subtenant in this regard on whatever legal grounds.

 

§ 12 Structural Changes by the Sublessor/Principal Lessor

 

1.                    Upon timely notification of the date thereof,
the Sublessor and/or the Principal Lessor may make improvements and structural
changes necessary to avert imminent peril or eliminate damage, even without the
consent of the Subtenant. Work needed to preserve the property may also be
carried out after prior agreement on a date. In performing such work, the
Sublessor and/or Principal Lessor shall give due consideration to the interests
of the Subtenant. It shall give the Tenant timely written notice before
commencement of the work and structural changes and shall describe the scope
and type of work scheduled. The Subtenant shall provide reasonable access to
the rooms and areas of the Leased Property that are affected by these measures.

 

2.                    To the extent that the Subtenant is required
to tolerate the performance of this work, it can neither reduce the rent nor
exercise a right to withhold rent or demand damages, as long as such
performance is not delayed.

 

§ 13 Sublessor’s Liability

 

1.                    Brief interruptions of the operation of the Leased
Property—for whatever reason (e.g. bomb threat, fire alarm, sprinkler
activation, etc.)—which are not the Sublessor’s responsibility, shall not
affect the obligation to pay rent, as long as they can be eliminated within a
reasonable period of time. In coordination with the Subtenant, the Sublessor
shall be entitled to evacuate the property for security reasons and bar access
to the property. If no contact person for the Subtenant can be reached or if
danger is imminent, the property may also be evacuated without consultation.
The Sublessor shall do everything in its power, not omitting anything to
minimize the interruption of operations required to this end. The Subtenant
shall not be entitled to damages.

 

§ 14 Advertising

 

Placing
advertising displays on the roof of the building is not permitted. Advertising
displays within the building are permitted only with the approval of the
Sublessor.

 

13

 

 

§ 15 Insurance

 

1.                    The Leased Property shall be insured by the
Principal Lessor in accordance with the provisions of law.

 

2.                    The Sublessor shall not be liable for damage
to the Subtenant’s property caused by fire, smoke, soot, snow, water, dry rot
and the gradual effects of moisture, unless such damage occurred due to gross
neglect of the Leased Property or as a result of gross negligence or
intentional acts or omissions of the Sublessor.

 

3.                    The Subtenant shall purchase all insurance
necessary to operate its business, particularly liability insurance.

 

§ 16 Access to the Leased Premises by the Sublessor

 

1.                    Representatives of the Sublessor may enter
onto the leased premises during the Subtenant’s regular business hours after
informing the Subtenant in advance. When there is danger, entering of the
leased premises is permitted at any time. The Sublessor may commission third
parties.

 

2.                    The Subtenant shall ensure that the leased
premises can be accessed even in its absence and, if necessary shall name an
agent to the Sublessor. If the Subtenant does not meet this obligation, it
shall be liable for all injuries and losses resulting from the Sublessor’s
inability to enter the leased premises, e.g. in case of imminent danger.

 

§ 17 House Rules

 

The
Sublessor reserves the right to issue reasonable and legally permissable
general rules or separate instructions from time to time as required to
maintain order in the building, including the outside installations, and to
modify existing rules/instructions. The version of the House Rules in effect at
the time shall be an integral part of this Workplace Agreement. The provisions
of the House Rules are intended, inter alia, to
guarantee the smooth operation of the businesses of all users [of the building]
and ensure that the property and the outside installations are kept clean.

 

§ 18 Right of Access, Keys

 

1.                    The Subtenant shall obtain access to the
building through the use of programmed ID cards, entitling the Subtenant and
its employees to pass through the entrances and exits of the building and the
garage, which are all equipped with access control readers.

 

14

 

 

The
ID card has other functions, too, such as recording time and payments in the
canteen. If an ID card is lost, building management must be informed
immediately so it can block the ID card to prevent misuse.

 

2.                    The Subtenant shall receive authorization to
access the general building areas, such as the elevator area and garage
entrances and exits. No security measures for the leased areas are currently
contemplated.

 

3.                    If it is necessary to provide authorization
to individual persons for specially secured rooms (such as storage rooms), this
shall be requested from building management in writing.

 

4.                    If the Subtenant receives keys for certain
rooms (e.g. storage rooms) upon delivery of possession, the exact number shall
be recorded in a separate record of delivery of possession. The Subtenant shall
be liable for all injuries or losses resulting from the loss or negligent
handling of the keys that have been provided to it if and when the Subtenant is
at fault.

 

All
keys, including any keys subsequently requested or made by the Subtenant, shall
be returned at the end of the subtenancy.

 

5.                    No keys will be provided for the office rooms
at the time of moving into the leased premises.

 

6.                    Keys for individual office doors can be
ordered from building management, if needed. The Subtenant shall bear the costs
thereof.

 

§ 19 Sublessor’s Extraordinary Right of Termination

 

The Sublessor shall be entitled to terminate the
subtenancy without a notice period

 

a.                    if the Subtenant is in arrears in payment of
rent or cost allocations in an amount that exceeds three months’ rent and fails
to pay within 14 days of the Sublessor’s payment demand, sent by registered
mail;

 

b.                   if the Subtenant violates a material
obligation under this Agreement or an existing House Rule or Common Rule or
uses the Leased Property in a manner that violates the Agreement, and does not
desist from doing so within a month’s time after repeated warning by registered
letter from the Lessor; or

 

c.                    if judicial reorganization or bankruptcy
proceedings against the Subtenant’s assets are petitioned for or enforcement
measures are taken against substantial portions of the Subtenant’s assets.

 

 

15

 

 

§ 20 Termination of the Subtenancy Agreement

 

1.                    The Subtenant shall deliver possession of the
leased premises and any appurtenances thereto in “swept clean” condition. The
carpeting shall be properly cleaned or replaced, where cleaning is
unsuccessful.

 

2.                    The Sublessor shall arrange for the
correction of any damage caused by the Subtenant to equipment, walls,
furniture, etc., at the Subtenant’s expense.

 

3.                    At the end of the subtenancy, the Subtenant
shall return all the access authorizations and keys with which it was provided.

 

4.                    If, when the leased premises are returned, it
is determined that walls, doors, and/or radiators need painting, the Sublessor
shall also have this work done at the expense of the Subtenant.

 

5.                    When the subtenancy ends, the Subtenant
shall, upon request from the Sublessor, remove all installations, alterations,
and equipment (§ 11) and restore the leased premises to the condition in which
they were delivered.

 

6.                    The entire return procedure shall be handled
through local building management, which, in consultation with the Subtenant,
shall obtain the appropriate cost estimates, place orders, and coordinate the
work of building trades.

 

7.                    If the subtenancy is ended by termination
under § 19, the Subtenant shall be liable for the losses the Sublessor suffers
due to the leased premises standing vacant after they have been vacated and
surrendered by the Subtenant or having to be leased. The injuries or losses
shall be calculated in accordance with provisions referred to in § 3. § 19
sentence 3 of the Cost Regulation [KO]/Insolvency Code [InsolvenzVo] shall
remain unaffected.

 

In
this case, the Subtenant shall release the Sublessor from all claims by third
parties based on the termination under § 17.

 

8.                    If there is delay in vacating and returning
the Leased Property after the subtenancy has ended, the Subtenant shall pay the
Sublessor rent, ancillary costs as compensation for the duration of the delay.
In addition, the Subtenant shall be liable to the Sublessor for all additional
losses resulting from its delay in vacating and returning the leased premises.

 

16

 

 

§ 21 Final Provisions

 

1.                    All additions and amendments to this
Agreement must be in writing.

 

2.                    It is agreed that Hamburg shall be the place
of performance and jurisdiction, unless otherwise mandated by law.

 

If
provisions of this Agreement are or become invalid—for whatever reason—such
provisions shall be promptly replaced by the Contracting Parties with
permissible provisions that most closely approximate their economic and legal
effect. This shall not affect the validity of the remaining provisions.

 

The following appendices are integral parts of this
Workplace Agreement:

 

	
  Appendices
  1-3

  	
   

  	
  Floor
  Plans

  
	
  Appendix
  4

  	
   

  	
  Parking
  Spaces

  
	
  Appendix
  5

  	
   

  	
  Schedule
  of Operating Costs

  
	
  Appendix
  6

  	
   

  	
  Inventory
  and Partition System

  
	
  Appendix
  6a

  	
   

  	
  Planned
  furniture

  
	
  Appendix
  7

  	
   

  	
  Service
  Level Agreement

  

 

Hamburg, [illegible] 2006

 

	
  [signature]

  	
   

  	
  [signature]

  	
   

  
	
  Sublessor

  	
  Subtenant

  

 

17

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