Document:

Exhibit 10.42

REIMBURSEMENT

AGREEMENT

THIS

REIMBURSEMENT AGREEMENT (this “Agreement”) is made as of this 2nd day

of August, 2002, by and between The Titan Corporation, a Delaware corporation (“Titan”), and

SureBeam Corporation, a Delaware corporation (“SureBeam”).

RECITALS:

A.            Whereas, SureBeam

has a right to exchange $1.0 million of the funds it has advanced to Hawaii

Pride, L.L.C., a Hawaiian limited liability company (the “Company”) for 19.9% of the equity of the

Company (the “Equity

Interest”) but as of the date of this Agreement, SureBeam has

not exercised this right and owns no equity interest in the Company;

B.            Whereas, the

Company and WebBank (the “Bank”) entered into a Loan Agreement dated June 22,

2000 (as such Loan Agreement may have been and may subsequently be amended, the

“Loan Agreement”)

pursuant to which the Bank agreed to loan $6,750,000 to the Company (the “Loan”);

C.            Whereas, as a

condition to entering the Loan Agreement and making the Loan, the Bank required

that Titan (i) guarantee the Company’s obligations under the Loan Agreement, to

the extent of SureBeam’s ownership interest in the Company, pursuant to that

certain Absolute and Unconditional Guarantee of Payment by The Titan

Corporation to the Extent of its Ownership dated June 22, 2000 (as such

Guarantee may have been and may subsequently be amended, the “Guarantee”) and (ii)

indemnify the Bank pursuant to that certain Indemnity Agreement dated as of

June 22, 2000 by and among Titan, the Company, the Bank, Eric D. Weinert and

John W. Clark (as such Indemnity Agreement may have been and may subsequently

be amended, the “Indemnity Agreement”)

against all violations of any Applicable Environmental Laws (as defined in the

Indemnity Agreement) relating to the property securing the Loan; and

D.            Whereas,

SureBeam has agreed to reimburse Titan in the event that Titan  becomes obligated to make any payments under

the Guarantee or the Indemnity Agreement.

Now Therefore, for good and valuable

consideration, the parties hereto agree as follows:

1.             Right to Reimbursement. 

If Titan (i) makes any payment in connection with the Guarantee or the

Indemnity Agreement, whether such payment is made to the Bank or any party to

the Indemnity Agreement or to any third party, or (ii) incurs any expense or

cost incidental to or in any way related to the Guarantee or the Indemnity

Agreement, including, without limitation, (a) in opposing any claim for payment

under the Guarantee or Indemnity Agreement, (b) in connection with the Bank

exercising any of its rights under the Guarantee or the Indemnity Agreement

(including any expenses of the Bank or its advisors in connection therewith

that are subject to payment or reimbursement by Titan pursuant to the

provisions of the Guarantee or by Titan or the other parties thereto pursuant

to the provisions of the Indemnity Agreement) or (c) in 

 

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enforcing this

Agreement, then SureBeam shall have an unconditional obligation to pay to Titan

an amount (the “Required Reimbursement

Amount”) equal to 100% of all amounts referred to in clauses (i)

and (ii) above, payable in cash. SureBeam shall pay any Required Reimbursement

Amount in cash within five business days of receipt of a written demand for

reimbursement of such Required Reimbursement Amount (the “Reimbursement Demand Notice”).  The Reimbursement Demand Notice shall set

forth the Required Reimbursement Amount.

2.             Default. 

If SureBeam fails to pay in cash a Required Reimbursement Amount  within five business days from the date of

receipt by it of a Reimbursement Demand Notice, SureBeam shall be deemed to be

in default under this Agreement and interest (“Additional Interest”) shall accrue on the

Required Reimbursement Amount at a rate equal to the lesser of (i) the rate

then payable by the Company under the Loan Agreement plus two percent (2%), and

(ii) the highest rate permitted by law. 

In the event of a default by SureBeam pursuant to the preceding

sentence, Additional Interest shall begin to accrue (and shall accrue daily) as

of the date of the applicable Reimbursement Demand Notice and shall continue to

accrue until the date (the “Late Payment Date”) that SureBeam pays to Titan the

entire Required Reimbursement Amount specified in such Reimbursement Demand

Notice, plus all Additional Interest thereon. 

Additional Interest shall be payable by SureBeam to Titan in cash within

five business days following a default by SureBeam under this Section 2.

3.             Obligation Unconditional. 

SureBeam hereby acknowledges and agrees that its obligations to pay to

Titan any Required Reimbursement Amount and Additional Interest pursuant to

Section 1 and Section 2 above are unconditional and shall not be affected by

(and SureBeam shall not assert as a defense to these payment obligations) any

failure by Titan to contest any claim or demand made against it by, or to

assert any defense, claim or demand or enforce or exercise any right or remedy

it may have against, the Bank, any party to the Indemnity Agreement or any

third party under the provisions of the Guarantee, the Indemnity Agreement or

otherwise.

4.             Titan Representations and

Warranties. Titan

hereby represents, warrants and acknowledges as follows:

(i)            Titan (a) is a legal entity duly organized and validly

existing under the laws of its jurisdiction of organization, (b) has all of the

power and authority necessary to enter into this Agreement, and (c) has taken

all action as may be necessary to authorize the execution and delivery of this

Agreement and the performance of its obligations hereunder.

(ii)           This Agreement constitutes the legal, valid and

binding obligation of Titan, and is enforceable against Titan in accordance

with its terms.

5.             SureBeam Representations and

Warranties.

SureBeam hereby represents, warrants and acknowledges as follows:

(i)            SureBeam (a) is a legal entity duly organized and

validly existing under the laws of its jurisdiction of organization, (b) has

all of the power and authority necessary to enter into this Agreement, and (c)

has taken all action as may be necessary to authorize the execution and

delivery of this Agreement and the performance of its obligations hereunder.

 

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(ii)           This Agreement constitutes the legal, valid and

binding obligation of SureBeam, and is enforceable against SureBeam in

accordance with its terms.

6.             Consent.  Titan and SureBeam each acknowledges that

the purpose of the covenants in this Paragraph 6 is to protect Titan’s interest

as a contingent creditor of SureBeam under the Guarantee, Indemnity Agreement

and Loan Agreement and not for the purpose of influencing SureBeam’s business

judgment regarding the value to SureBeam of SureBeam holding any equity

interest in the Company.  As of the date

of this Agreement, SureBeam has represented to Titan that it has no present

intention to exercise its option to acquire the Equity Interest in the Company.

So long as the Guarantee or Indemnity Agreement remain in effect or Titan

remains subject to any covenants in the Loan Agreement, SureBeam covenants and

agrees that it shall not do any of the following without the prior written

consent of Titan:  (i) exercise its

right to acquire the Equity Interest in the Company nor acquire any equity

interest in the Company or any successor in interest to the Company either from

the Company or from any holder of an equity interest in the Company, whether

pursuant to the Amended and Restated Agreement #3 dated October 2, 2000 among

SureBeam, Titan, the Company, John W. Clark and Eric Weinert (the “Hawaii Pride Agreement”)

or pursuant to any other agreement or by any other means; (ii) enter into any

agreement with the Company or any of the equity owners of the Company that

modifies or amends the Hawaii Pride Agreement in any respect; or (iii) enter

into an operating agreement or similar governing agreement for the

Company.   To the extent that SureBeam

receives notice of the Company’s insolvency, the occurrence of any default by

the Company under the Loan Agreement, including any failure to comply with

covenants or failure make any loan payments when due, or the Company’s request

or receipt of any forbearance or waiver of covenants under the Loan Agreement,

SureBeam shall promptly notify Titan in writing of its knowledge of such

information.  In addition, SureBeam

shall provide to Titan on a monthly basis a copy of any covenant compliance

worksheet provided by the Company to SureBeam pursuant to Paragraph 6 of the

Hawaii Pride Agreement.

7.             Fee.  So long as SureBeam does not own any

equity interest in the Company, SureBeam shall not be required to pay any fee

to Titan under this Agreement.  If

SureBeam acquires the Equity Interest or otherwise acquires any equity interest

in the Company or any successor in interest in the Company while the Guarantee

or Indemnity Agreement remains in effect or while Titan remains subject to any

covenants in the Loan Agreement, then, SureBeam shall pay Titan an annual fee

equal to 1% of the amount of the Loan guaranteed by Titan under the Guarantee

as of December 31 of each year, which shall be payable by no later than March

31 of the immediately following year (with the amount of the fee to be

pro-rated if SureBeam acquires such equity interest after the first day of a

new calendar year for the number of days in the year that the Loan was guaranteed

under the Guarantee).

8.             Successors And Assigns. 

This Agreement will be binding upon, and inure to the benefit of, each

party hereto and such party’s permitted successors and assigns; provided,

however, that SureBeam may not assign this Agreement without the

prior written consent of Titan.

9.             Notices. 

All notices and other communications required or permitted hereunder

will be in writing and transmitted personally or by messenger, certified mail

(return receipt requested), telegram or facsimile with confirmed receipt, and

will be mailed or delivered to the 

 

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address set forth

on the signature page hereto, or to such other address as the recipient may

have specified in a notice duly given to the sender as provided herein.  All such notices, requests, demands,

consents and other communications will be deemed to have been given and to be

effective for purposes of receipt upon the earlier of receipt or the second

business day following the date of mailing or transmittal. Each party will

promptly notify the other in writing of any change in its address.

10.          Attorneys’ Fees. 

In the event any suit or other legal proceeding arises in connection

with this Agreement, the prevailing party will be entitled to recover from the

non-prevailing party the reasonable attorneys’ fees and costs incurred by such

prevailing party, which will be in addition to all other amounts and awards to

which such prevailing party may be entitled.

11.          Amendments; Waivers. 

This Agreement may be amended, and compliance with any provision hereof

may be waived, only by a written instrument executed by each of the parties

hereto.

12.          No Agency. 

Nothing in this Agreement will be deemed to create the relationship of

principal and agent or of partnership or joint venture among the parties

hereto.

13.          No Third Party Beneficiary. 

This Agreement is solely for the benefit of the parties hereto and will

not be deemed to be for the benefit of, or to create any rights in favor of any

third party, including, without limitation, the Bank pursuant to its rights to

payments under the Loan Agreement.

14.          Governing Law. 

This Agreement will be governed by, and construed under, the laws of the

State of California as applied to agreements among California residents, made

and to be performed entirely within the State of California.

15.          Counterparts. 

This Agreement may be executed in any number of counterparts, each of

which will be deemed an original, but all of which together will constitute one

agreement.

16.          Severability. 

In the event that any provision of this Agreement shall be invalid,

illegal or unenforceable then the validity, legality or enforceability of the

remaining provisions shall not in any way be affected or impaired thereby.

 

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In Witness Whereof,

the parties have executed this Agreement as of the day and year first above

written.

 

	

  The Titan

  Corporation

  	

   

  	

  SureBeam

  Corporation

  
	

  By:

  	

  /s/ MARK W. SOPP

  	

   

  	

  /s/ DAVID A. RANE

  
	

   

  	

   

  	

   

  	

   

  
	

   

  	

  Mark W. Sopp 

  Senior Vice President, 

  Chief Financial Officer

  	

   

  	

  David A. Rane 

  Senior Vice President, 

  Chief Financial Officer

  
	

   

  	

  3033 Science Park Road 

  San Diego, California 92121-1199

  	

   

  	

  9276 Scranton Road, Suite 600 

  San Diego, California 92121

  

 

 

 

5SUB-SUB-LEASE AGREEMENT

 

 

                THIS SUB-SUB-LEASE AGREEMENT

(“Sub-Sub-Lease”) is entered into as of this 2nd day of August, 2002, by and

between The Titan Corporation, a Delaware corporation (“Sublandlord”), and

SureBeam Corporation, a Delaware corporation (“Subtenant”).

 

RECITALS

 

A.            Sublandlord is the

tenant under that certain Sub-Lease by and between CLOVERLEAF COLD STORAGE CO.,

an Iowa corporation, as landlord (“Master Landlord”), and Sublandlord, as

tenant, dated September 1, 1999, as amended by the First Amendment dated

February 1, 2001 (such lease, as it may be amended from time to time, the

“Sub-Lease”), for certain space located at 2640 Murray Street, Sioux City, Iowa

(the “Premises”).

 

B.            Subtenant wishes to

Sub-Sub-Lease a portion of the Premises from Sublandlord.

 

 

                Now, therefore, for good and

valuable consideration, the receipt and sufficiency of which are hereby

acknowledged, the parties hereby agree as follows:

 

1.             Basic Sub-Sub-Lease Information.

 

The

information set forth in this Section (the “Basic Sub-Sub-Lease Information”)

is intended to supplement and/or summarize the provisions set forth in the

balance of this Sub-Sub-Lease.  Each

reference in this Sub-Sub-Lease to any of the terms set forth below shall mean

the respective information set forth next to such term as amplified, construed

or supplemented by the particular Section(s) of the Sub-Sub-Lease pertaining to

such information.  In the event of a

conflict between the provisions of this Section and the balance of the

Sub-Sub-Lease, the balance of the Sub-Sub-Lease shall control.

 

	

  Sublandlord:

  	

   

  	

  The Titan

  Corporation, a Delaware corporation

  
	

   

  	

   

  	

   

  
	

  Sublandlord’s

  Address  for Notices:

  	

   

  	

  The Titan

  Corporation 

  3033 Science Park Road 

  San Diego, CA 92122 

  Attn: Real Estate 

  (858) 552-9500

  
	

   

  	

   

  	

   

  
	

  Subtenant:

  	

   

  	

  SureBeam

  Corporation, a Delaware corporation

  
	

   

  	

   

  	

   

  
	

  Subtenant’s Address  for

  Notices:

  	

   

  	

  SureBeam Corporation  

  9276 Scranton Road  

  Suite 600  

  San Diego, CA 92121  

  Attn: Jerry Nelson 

  (858) 795-6234

  

 

 

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  Premises:

  	

   

  	

  Approximately

  19,400 rentable square feet, as described on Exhibit A.

  
	

   

  	

   

  	

   

  
	

  Building:

  	

   

  	

  2640 Murray

  Street, Sioux City, Iowa

  
	

   

  	

   

  	

   

  
	

  Permitted

  Use:

  	

   

  	

  As specified

  in Article 3 of the Sub-Lease for food processing, including irradiation,

  offices, dock and related activities.

  
	

   

  	

   

  	

   

  
	

  Basic Rental:

  	

   

  	

  Twenty-seven

  Thousand, Five Hundred, Sixty Dollars and Zero Cents ($27,560.00) per

  month (except for any partial month during the term of this Sub-Sub-Lease, in

  which case Basic Rental for such month shall be pro-rated based on the number

  of days in that month), escalating by the CPI as set forth in Article 4 A. of

  the Sub-Lease on February 1, 2003 and on each anniversary thereof.

  
	

   

  	

   

  	

   

  
	

  Special

  Buildout Rental:

  	

   

  	

  Twenty-four

  Thousand, Five Hundred, Eighty-two Dollars and Zero Cents ($24,582.00)

  per month pursuant to the provisions as set forth in Section 4. B. of the

  First Amendment to the Sub-Lease.

  
	

   

  	

   

  	

   

  
	

  Monthly Base

  Charge (Refrigeration):

  	

   

  	

  Six

  Thousand, Four Hundred, Ninety Dollars and Zero Cents ($6,490.00) per

  month pursuant to the provisions as set forth in Section 8. B. and Exhibit B

  of the Sub-Lease.

  
	

   

  	

   

  	

   

  
	

  Commencement

  Date:

  	

   

  	

  The term of

  the Sub-Sub-Lease shall commence on August 2, 2002

  
	

   

  	

   

  	

   

  
	

  Expiration

  Date:

  	

   

  	

  The

  Expiration Date shall be January 31, 2010, or such earlier date, if any, on

  which the Sub-Lease is terminated or expires or this Sub-Sub-Lease is

  terminated pursuant to the terms herein.

  
	

   

  	

   

  	

   

  
	

  Subtenant’s

  Insurance:

  	

   

  	

  Specified

  and as required in Article 15 of the Sub-Lease.

  
	

   

  	

   

  	

   

  
	

  Security

  Deposit:

  	

   

  	

  Fifty-eight

  Thousand, Six Hundred, Thirty-two Dollars and Zero Cents ($58,632.00) payable

  in accordance with Section 14 hereof.

  

 

2.             Sub-Sub-Lease.

 

Sublandlord

hereby Sub-Sub-Leases to Subtenant, and Subtenant hereby Sub-Sub-Leases from

Sublandlord, the Subdemised Premises upon all of the terms, covenants and

conditions in this Sub-Sub-Lease.

 

3.             Delivery Condition.

 

Subtenant acknowledges that it takes

possession of the Subdemised Premises in its “as is” condition, and further

acknowledges that Sublandlord has made no representations or warranties of any

kind or nature, whether express or implied, with respect to the Subdemised

Premises, the remainder of the Premises, the common areas, or the Building, nor

has Sublandlord agreed to undertake or perform any modifications, alterations,

or improvements to the Subdemised Premises, the 

 

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remainder of the Premises, the common areas

or the Building which would inure to Subtenant’s benefit.

 

                4.             Term.

 

4.1           Term.  The term (the “Term”) of this Sub-Sub-Lease  shall

commence on the Commencement Date, and shall end on the Expiration Date.

 

4.2           Surrender.  Subtenant shall, on or before the Expiration

Date, remove all personal property, furniture, trade fixtures and other

equipment, provided that the removal of the same does not adversely affect the

Building structure or any Building operating system or is not prohibited by the

Sub-Lease, and that Subtenant promptly repairs any damage to the Building

structure or its operating systems caused by such removal pursuant to the

requirements of the Sub-Lease.  In the

event that Subtenant fails to remove any such items as required by this Section

4.2 by the Expiration Date, all such items remaining on the Subdemised Premises

after the Expiration Date shall be deemed abandoned and Sublandlord may dispose

of such items as it sees fit, without liability to Subtenant.  Subtenant shall also be responsible for the

removal, on or before the Expiration Date, of all alterations as required under

the Sub-Lease installed by Subtenant pursuant to this Sub-Sub-Lease and shall

be responsible for any associated repair or restoration of the Subdemised

Premises required under the Sub-Lease. 

In all other respects, Subtenant shall deliver the Subdemised Premises

broom clean, in its condition as of the Commencement Date, reasonable wear and

tear and casualty excepted.  In no event

shall Subtenant remove any of the plumbing, electrical, data lines, and HVAC

system(s), except as otherwise required pursuant to this Section 4.2.

 

Subtenant shall vacate and deliver possession

of the Subdemised Premises free of all liens, charges or encumbrances resulting

from any act or omission on Subtenant’s part, and free and clear of any and all

violations of any law, rule or regulation of any federal, state, municipal or

other agency or authority by reason of Subtenant’s actions or failures to

fulfill any of its obligations under this Sub-Sub-Lease (“Violations”).  Subtenant shall indemnify Sublandlord

against any and all loss, expense, damage, costs or attorneys’ fees arising out

of Violations occurring any time on or after the Commencement Date.  The voluntary or other surrender of this

Sub-Sub-Lease by Subtenant, or a mutual cancellation thereof, shall not

automatically terminate any sub-Sub-Sub-Leases or sub-subtenancies or other

agreements by which Subtenant has granted rights to third parties to all or any

part of the Subdemised Premises, but shall, at the option of Sublandlord,

either (1) terminate all or any existing Sub-Sub-Sub-Leases or sub-subtenancies

or such other agreements, or (2) operate as an assignment to Sublandlord of any

or all such Sub-Sub-Sub-Leases or sub-subtenancies or such other agreements.

 

4.3           Holding

Over.  If Subtenant remains in

possession of the Subdemised Premises after the Expiration Date, such occupancy

shall constitute a tenancy at sufferance, and Subtenant shall be obligated to

pay 300% of the rental installments as specified in Section 5 of this

Sub-Sub-Lease and Subtenant shall be liable to Sublandlord for any and all

claims, damages, liabilities, costs and expenses (including attorneys’ fees and

expenses) incurred by Sublandlord and arising out of Subtenant’s failure to

timely surrender the Subdemised Premises in accordance with the requirements of

this Sub-Sub-Lease, including, without limitation those incurred by Sublandlord

arising under the Sub-Lease.

 

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5.             Rent.

 

As used in this Sub-Sub-Lease, the term

“Rent” shall include (1) Basic Rental and (2) all other amounts which Subtenant

is obligated to pay under the terms of this Sub-Sub-Lease.

 

5.1           Rent.  Basic Rental is as specified in Section 1

(Basic Sub-Sub-Lease Information). 

Basic Rental shall be paid by Subtenant to the Master Landlord for the

Sublandlord as set forth in Sections 4 A., 4. B, 8. B. and Exhibit B of the

Sub-Lease and as subsequently amended or modified.

 

                Subtenant shall also be solely responsible for any and all increases in

Rent or any added cost or charge which has arisen solely because of Subtenant’s

tenancy in the Subdemised Premises, including, without limitation, any and all

heat, water and sewer charges, electric and other utility charges, as well as

any other service charges required by the Sub-Lease and relating to the

Subdemised Premises and/or Subtenant’s occupation thereof that are not already

then covered by the Basic Rental (as defined in the Sub-Lease), Operating

Expenses (as defined in the Sub-Lease) or Tax Expenses (as defined in the

Sub-Lease) passed through to Sublandlord under the Sub-Lease.

 

                                5.2           [INTENTIONALLY OMITTED]

 

5.3           Manner

of Payment.  All Rent or other

payment due from Subtenant to Sublandlord hereunder shall be paid in lawful

money of the United States, without any prior demand therefor and without any

deduction or setoff whatsoever, at the Master Landlord’s address pursuant to

Section 4. A. or such other place as Sublandlord shall from time to time

designate (including, without limitation, by wire transfer of immediately

available funds to an account specified by Sublandlord) by written notice

provided to Subtenant at least five (5) days prior to the date on which such

Rent or other amount first becomes payable.

 

                6.             Use

and Compliance With Laws.

 

Subtenant shall use the

Subdemised Premises for the Permitted Use (as specified in the Basic

Sub-Sub-Lease Information) during the Term of this Sub-Sub-Lease, and for no

other use or uses.  Subtenant shall not

engage in any activities prohibited by the Sub-Lease.  Subtenant shall not use or store flammable or hazardous materials

on the Subdemised Premises, except to the extent normally used in the ordinary

course of business with respect to the Permitted Use unless such materials are

specifically prohibited in the Sub-Lease. 

Subtenant shall not perform any act or carry on any practice which may

injure the Subdemised Premises or cause any offensive odors or noises that

constitute a nuisance or menace to any other tenant or tenants of the Building

or the Premises or other persons, and in no event shall any noises or odors be

emitted from the Subdemised Premises. 

Nothing shall be done upon or about the Subdemised Premises which shall

be unlawful, improper, or contrary to any law, ordinance, regulation or requirement

of any public authority or insurance inspection or rating bureau or similar

organization having jurisdiction and Subtenant shall be in compliance at all

times with all such laws, ordinances, regulations and requirements.  Subtenant shall observe and comply with, and

shall cause its employees, agents and invitees to observe and comply with the

restrictions set forth in this Sub-Sub-Lease. 

Subtenant agrees to comply with all rules and regulations that Master

Landlord has made or may hereafter from time to time make for the Building

and/or the Premises.  Sublandlord shall

not be liable to Subtenant or any party claiming through Subtenant in any way

for damage caused by 

 

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the failure of any of the other tenants of

the Building to comply with such similar or other covenants in their leases or

of such rules and regulations.

 

                7.             Insurance.

                                Subtenant

shall obtain at its sole expense the insurance required under Article 15 of the

Sub-Lease effective as of the Commencement Date.  Additionally, Subtenant shall name Sublandlord and Master

Landlord as additional insureds, in their capacity as Master Landlord and

Sublandlord, and shall furnish Sublandlord on or before the Commencement Date

with certificates of insurance from its insurer, with respect to such

insurance, which certificates shall state that such insurance shall not be

cancelled unless thirty (30) days prior written notice shall have been given to

Master Landlord and Sublandlord.

 

                8.             Assignment

and Subletting.

 

                                Subtenant shall not directly or indirectly,

voluntarily or by operation of law, sell, assign, encumber, pledge or otherwise

transfer or hypothecate any of its interest in or rights with respect to the

Subdemised Premises or Subtenant’s leasehold estate hereunder (collectively, “Assignment”),

or permit all or any portion of the Subdemised Premises to be occupied by

anyone (whether pursuant to a license, concession or otherwise) other than

Subtenant or sublet all or any portion of the Subdemised Premises, without the

prior written consent of Master Landlord and Sublandlord.

 

                9.             Alterations.

 

                                Subtenant shall not make or suffer to

be made any alterations, additions or improvements to the Subdemised Premises,

including, without limitation, those related to electrical cabling and/or systems,

plumbing, data cabling, HVAC systems, or modifications to existing finishes,

without the prior written consent of Master Landlord, as required under the

Sub-Lease, and of Sublandlord. 

Additionally, Subtenant shall be subject to the standards for repairs

and alterations set forth in the Sub-Lease.

 

                10.          Repairs

and Maintenance.

 

10.1         Subtenant’s

Responsibility.  Subtenant shall be

responsible for the maintenance and repair of the Subdemised Premises in

accordance with the provisions of the Sub-Lease.

 

10.2         Sublandlord’s

Responsibility.  As between the

parties to this Sub-Sub-Lease, Sublandlord shall have no responsibility or

liability to the Subtenant or anyone claiming through Subtenant, for the

Subdemised Premises including, without limitation, the roof, roof covering,

foundation, subfloors, building structural components, major building systems

(plumbing, electrical and heating, air conditioning and ventilation systems),

and exterior walls of the Subdemised Premises.

 

                11.          Default.

 

Subtenant shall be subject to

the same default provisions as specified in Article 19 of the Sub-Lease as if

it were the tenant thereunder, and Sublandlord shall have all the remedies

specified therein, as if it were Master Landlord, including, without

limitation, the right to terminate the Sub-Sub-Lease and right to perform

Subtenant’s obligations under this Sub-Sub-Lease at Subtenant’s cost.  

 

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Notwithstanding the foregoing, Subtenant

shall only be entitled to one-half (1/2) of the cure period for a default, if

any, provided for under the Sub-Lease.

 

                12.          Indemnity.

 

                                In addition to

such indemnities as may be provided for in the Sub-Lease, Subtenant agrees to

indemnify and hold Sublandlord and its affiliates, officers, agents, servants,

employees and independent contractors (individually a “Sublandlord Party” and

collectively, “Sublandlord Parties”) harmless against all loss, damage,

liability, or expense suffered or claimed against any Sublandlord Party, by any

person or entity (i) caused by or otherwise arising from, in whole or in part,

any breach or default by Subtenant of any covenant or obligation it has

hereunder (including but not limited to all covenants or obligations of the

tenant under the Sub-Lease assumed by Subtenant pursuant to the terms of this

Sub-Sub-Lease), or (ii) caused by or in connection with anything owned or

controlled by Subtenant, or (iii) resulting from any act, failure to act, or

negligence of Subtenant or its employees, agents or invitees, or (iv) resulting

from any nuisance suffered on the Subdemised Premises, except for damage or

injury to third parties or property resulting from the proven gross negligence

of Sublandlord, Landlord or their respective employees, agents,

representatives, successors or assigns. 

Subtenant further agrees to indemnify Sublandlord and hold Sublandlord

harmless from all losses, damages, liabilities and expenses which Sublandlord

may incur, or for which Sublandlord may be liable to Master Landlord, arising

from the acts or omissions of Subtenant which are or are alleged to be defaults

of Sublandlord under the Sub-Lease or are the subject matter of any indemnity

or hold harmless of Sublandlord, as tenant, to Master Landlord under the

Sub-Lease.  The obligations of Subtenant

to indemnify Sublandlord and/or the Sublandlord Parties and/or hold the

Sublandlord and/or the Sublandlord Parties harmless in this Section 12 and

elsewhere herein shall survive the expiration or other termination of this

Sub-Sub-Lease.

 

                13.          Sub-Lease.

 

                13.1         Sub-Lease.  Notwithstanding anything in this

Sub-Sub-Lease to the contrary, the rights of Subtenant shall be subject to and

limited by the terms and conditions contained in the Sub-Lease between

Sublandlord and Master Landlord as applicable to tenant thereunder, as they may

be amended from time to time. 

Sublandlord shall have the right to amend the Sub-Lease from time to

time without the consent of Subtenant provided that any such amendment shall

not adversely affect Subtenant’s ability to continue its then current

operations in the Subdemised Premises, increase any of the rental or other

payments required to be made by Subtenant hereunder or otherwise materially and

adversely change Subtenant’s rights and obligations hereunder.  Sublandlord shall endeavor to give Subtenant

notice of any amendment to the Sub-Lease, but the failure to give such notice

shall not affect the validity of such amendment or its applicability to

Subtenant, except that Subtenant shall have no obligation to comply with the

terms of any such amendment until it has received a copy.  Any rights granted to Subtenant herein which

are limited by the Sub-Lease shall be deemed to be so limited by this

Sub-Sub-Lease.

 

                13.2         No Violation.  Notwithstanding anything in this Sub-Sub-Lease

to the contrary, Subtenant shall not commit or permit to be committed any act

or omission which shall violate any term or condition of the Sub-Lease.  Subtenant shall indemnify and hold harmless

Sublandlord from and against any loss, liability, claim, cost or expense

(including reasonable attorneys’ fees) incurred by Sublandlord as a result of

any termination or attempted termination by Sublandlord or Master Landlord of

the Sub-Lease resulting from any such act or omission by Subtenant.

 

6

 

                13.3           [INTENTIONALLY OMITTED]

 

                13.4         Termination of

Sub-Lease.  If the Sub-Lease

terminates for any reason prior to the expiration or other termination of this

Sub-Sub-Lease, this Sub-Sub-Lease shall terminate concurrently therewith

without any liability of Sublandlord to Subtenant and, except for any Subtenant

obligations hereunder arising on or prior to the termination of this

Sub-Sub-Lease, following Subtenant’s surrender in compliance with Section 4.2

hereof, Subtenant’s obligations hereunder shall terminate, except with respect

to any indemnification or hold harmless obligations of Subtenant, which shall

survive such termination.

 

                13.5         Incorporation of

Sub-Lease.  Notwithstanding any

other provision of this Sub-Sub-Lease to the contrary, this Sub-Sub-Lease and

Subtenant’s rights under this Sub-Sub-Lease shall at all times be subject to

all of the terms, covenants, and conditions of the Sub-Lease (a copy of which

agreement, as currently in effect, Subtenant hereby represents that it has

received), with the same force and effect as if fully set forth herein, and

except as otherwise expressly provided for herein, Subtenant shall keep,

observe and perform or cause to be kept, observed and performed, faithfully all

those terms, covenants and conditions of Sublandlord as tenant under the

Sub-Lease with respect to the Subdemised Premises.  Except as otherwise provided hereby, the terms, conditions,

rights and responsibilities of the Sub-Lease are incorporated herein by reference,

and Sublandlord shall have the rights and responsibilities with respect to the

Subtenant that the Master Landlord has with respect to Sublandlord pursuant to

the Sub-Lease, and Subtenant shall have the rights and responsibilities with

respect to Sublandlord that Sublandlord has with respect to the Master Landlord

pursuant to the Sub-Lease.  However, to

the extent that the Sub-Lease requires or obligates Master Landlord to

maintain, repair, restore, or otherwise expend any money or take any action to

preserve and maintain all or any portion of the Subdemised Premises or to

furnish any services to the Subdemised Premises, such obligation shall not pass

to Sublandlord by reason of this Sub-Sub-Lease and shall remain with the Master

Landlord.  Subject to the first sentence

of this Section 13.5, with respect to the relationship between the Sublandlord

and the Subtenant, the terms, covenants and conditions of this Sub-Sub-Lease

shall control with respect to any conflict or inconsistency between the terms,

covenants and conditions contained herein and the terms, covenants and

conditions of the Sub-Lease. 

Notwithstanding the foregoing, the following sections of the Sub-Lease

are hereby excluded from application to or incorporation within this

Sub-Sub-Lease:  Sections 2. B. of the FIRST AMENDMENT TO SUB-LEASE

AGREEMENT dated February 1, 2001, and 5. A. B. & C of the original Sub-Lease document dated September 1, 1999.

 

 

14.          Security Deposit / Initial Monies.

 

                                Upon Subtenant’s

execution and delivery of this Sub-Sub-Lease to Sublandlord, Subtenant shall

issue a check accompanying Subtenant executed Sub-Sub-Lease payable to

Sublandlord in the sum of Fifty-eight Thousand, Six Hundred, Thirty-Two Dollars

and Zero Cents ($58,632.00), for the performance by Subtenant of the provisions

of this Sub-Sub-Lease (the “Security Deposit”).  Sublandlord shall have the right but not the obligation to use

the Security Deposit, or any portion thereof, to cure any breach or default of

Subtenant or to compensate Sublandlord for damages sustained as a result of any

breach or default by Subtenant hereunder. 

In the event Sublandlord in its sole discretion so utilizes all or a

portion of the Security Deposit from time to time, Subtenant shall within five

(5) days of notice from Sublandlord restore the Security Deposit to its

original amount.  If no breach or

default of Subtenant exists and no amounts are owing from Subtenant to

Sublandlord as 

 

7

 

of the expiration

of the Term, Sublandlord shall return any Security Deposit then held by

Sublandlord to Subtenant within sixty (60) days of such expiration.

 

 

15.          Brokers.

 

                Subtenant

represents that it has dealt with no broker or agent in connection with this

Sub-Sub-Lease and Subtenant shall hold Sublandlord harmless from any and all

liability, loss, damage, expense, claim action, demand, suit or obligation

arising out of or relating to a breach by Subtenant of such representation.

 

16.          Counterparts.

 

                                This

Sub-Sub-Lease may be executed in one or more counterparts, each of which shall

constitute one and the same instrument.

 

17.          Governing Law.

 

                                This

Sub-Sub-Lease shall be governed by and construed and enforced in accordance

with the laws of the State of Iowa, except with respect to the choice-of-law

provisions thereof.

 

18.          Waivers; Amendments.

 

                                No failure or

delay by any party hereto in exercising any right, power or privilege hereunder

shall operate as a waiver thereof, nor shall any single or partial exercise

thereof preclude any other or further exercise thereof or the exercise of any

other right, power or privilege. The rights and remedies provided herein shall

be cumulative and not exclusive of any rights or remedies provided by law. Any

provision of this Sub-Sub-Lease may be waived if, but only if, such waiver is

in writing and is signed by the party against whom the enforcement of such

waiver is sought. No waiver of any provision of this Sub-Sub-Lease, in any one

or more instances, shall be deemed to be, or construed as, a further or continuing

waiver of any such provision. This Sub-Sub-Lease may not be amended, modified

or supplemented other than by a written instrument signed by each party hereto.

 

19.          Entire Agreement.

 

                                This

Sub-Sub-Lease constitutes the entire agreement and understanding among the

parties hereto and supercedes any and all prior agreements and understandings,

written or oral, relating to the subject matter hereof.

 

20.          Severability.

 

                                Any term or

provision of this Sub-Sub-Lease which is invalid or unenforceable in any

jurisdiction shall, as to such jurisdiction, be ineffective to the extent of

such invalidity or unenforceability without rendering invalid or unenforceable

the remaining terms and provisions of this Sub-Sub-Lease or affecting the

validity or enforceability of any of the terms or provisions of this

Sub-Sub-Lease in any other jurisdictions, it being intended that all rights and

obligations of the parties hereunder shall be enforceable to the fullest extent

permitted by law.

 

8

 

 

 

[Signature page follows]

 

9

 

IN

WITNESS WHEREOF, this Sub-Sub-Lease shall be deemed to have been executed and

delivered as of the date first set forth above.

 

	

   

  	

  SUBLANDLORD:

  
	

   

  	

   

  
	

   

  	

  THE TITAN

  CORPORATION, a Delaware corporation

  
	

   

  	

   

  
	

   

  	

  By: 

  	

   

  
	

   

  	

  Name:

  	

   

  
	

   

  	

  Title:

  	

   

  
	

   

  	

   

  
	

   

  	

   

  
	

   

  	

  SUBTENANT:

  
	

   

  	

   

  
	

   

  	

  SureBeam

  Corporation, a Delaware corporation

  
	

   

  	

   

  
	

   

  	

  By: 

  	

   

  
	

   

  	

  Name:

  	

   

  
	

   

  	

  Title:

  	

   

  

 

 

10

 

LANDLORD’S

CONSENT TO SUB-SUB-LEASE

 

The undersigned (“Landlord”), Landlord under

the Master Lease, hereby consents to the foregoing Sub-Sub-Lease without waiver

of any restriction in the Sub-Lease concerning further assignment or

subletting. Landlord certifies that, as of the date of Landlord’s execution

hereof, Sublandlord is not in default or breach of any of the provisions of the

Sub-Lease, and that the Sub-Lease has not been amended or modified except as

expressly set forth in the Sub-Lease and foregoing Sub-Sub-Lease.

 

	

  Lessor:

  	

   

  	

   

  	

   

  	

  .

  
	

   

  	

   

  	

   

  	

   

  	

   

  
	

  By:

  	

   

  	

   

  	

   

  	

   

  
	

   

  	

   

  	

   

  	

   

  	

   

  
	

  Title:

  	

   

  	

   

  	

   

  	

   

  
	

   

  	

   

  	

   

  	

   

  	

   

  
	

  Date:

  	

   

  	

   

  	

   

  	

   

  

 

 

EXHIBIT A

 

DESCRIPTION OF PREMISES

 

[SEE ATTACHED.]

 

 

 

11

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