FIRST AMENDMENT TO LEASE
Exhibt 10.51
FIRST AMENDMENT TO LEASE
This First Amendment to Lease (First Amendment) is made, for reference purposes only, this 21st day of February, 2003, between PACIFIC OCEANSIDE HOLDINGS, L.P., a California limited partnership (Landlord) and CONAGRA FOODS, INC., a Delaware corporation (Tenant) with reference to the following facts:
RECITALS
A. | Landlord and Tenant entered into that certain Lease dated December 20, 2001, (the Lease) for the Premises located at 9655 Granite Ridge Drive, Suites 100 and 200, San Diego, CA 92123, consisting of approximately 19,201 Rentable Square Feet and 17,211 Usable Square Feet (the Original Premises). |
B. | Pursuant to Paragraph 3 of the Addendum to Lease, Tenant has exercised its Option to Expand with respect to the contiguous area on the second floor of the Building (Suite 260) identified as the Expansion Space (the Expansion Space). |
C. | The parties desire to amend the Lease as set forth in this First Amendment. |
D. | All capitalized terms used in this First Amendment unless specifically defined herein shall have the same meaning as the capitalized terms used in the Lease. |
NOW, THEREFORE, for valuable consideration, the receipt and adequacy of which are expressly acknowledged, Landlord and Tenant agree as follows:
AGREEMENT
1. | Expansion of Premises. As of the date of this First Amendment, the Original Premises shall be expanded to include Suite 260 consisting of approximately 1,114 Rentable Square Feet (approximately 981 Usable Square Feet) and shall be referred herein as the Expansion Space, as shown on Exhibit B-1, and shall be used exclusively for general office use, in accordance with all applicable laws, statutes, ordinances, and regulations and the provisions of the Lease. |
2. | Expansion Space Lease Commencement Date. The Lease Commencement Date for the Expansion Space (the Expansion Space Lease Commencement Date) shall be the date to which the Tenant accepts the Expansion Space. This shall be documented by presenting Tenant with an Acceptance of Premises form acknowledging the As Is condition of the Expansion Space. |
3. | Expansion Space Rent Commencement Date. The Rent Commencement Date for the Expansion Space (the Expansion Space Rent Commencement Date) shall be the earlier to occur of (i) June 1, 2003, or (ii) that date of the Certificate of Occupancy issued by the City for the substantial completion of the Tenant Improvements referred to in Paragraph 10 of this Amendment. |
4. | Expansion Space Expiration Date. The Expiration Date for the Expansion Space (the Expansion Space Expiration Date) shall run concurrent with the Initial Expiration Date of the Original Premises and expire on March 31, 2007. |
5. | Premises. Effective as of the Expansion Space Rent Commencement Date, the total Premises shall include both the Original Premises and the Expansion Space for a total of approximately 20,315 Rentable Square Feet (18,192 Usable Square Feet). |
6. | Basic Monthly Rent. The Basic Monthly Rent for the Expansion Space shall be $1.50 per Rentable Square Foot (subject to adjustment as provided in Paragraph 7.2 of the Lease). Basic Monthly Rent shall always be due and payable on or before the first day of the applicable month, except that the first months Basic Monthly Rent shall be prorated to reflect any partial months occupancy and shall be due and payable upon the Expansion Space Rent Commencement Date. |
7. | Rental Adjustments. On each anniversary of the Expansion Space Rent Commencement Date throughout the Initial Lease Term, the Basic Monthly Rent shall be increased by three and one-half percent (3.5%), plus any applicable Additional Rent. |
8. | Building. The total Rentable Square Feet of the Building located at 9655 Granite Ridge Drive, San Diego, CA 92123 is 108,956. |
9. | Tenants Share. The Tenants Share previously identified and agreed as 17.49% shall be revised to reflect a new total of 18.65% (20,315 RSF / 108,956 RSF). |
10. | Security Deposit. Tenant shall not be obligated to pay a Security Deposit for the Expansion Space. |
11. | Tenant improvements. Landlord shall provide Tenant with a Tenant Improvement Allowance of Fourteen and 00/100 Dollars ($14.00) per Usable Square Foot, or a total of Thirteen Thousand Seven Hundred Thirty-Four and 00/100 Dollars ($13,734.00), for the approved tenant improvements of the Expansion Space. Tenant shall have the right to contract with reputable contractors, subject to Landlords prior approval, which shall not be unreasonably withheld, to complete the tenant improvements, including the Space Plan, Interior Design and/or Tenants Contractor. Upon receiving a Certificate of Occupancy by the City, Landlord shall pay to Tenant the Tenant Improvement Allowance, in accordance with the provisions of the Exhibit D attached to this First Amendment to Lease. |
12. | Certification. By execution of this First Amendment, Landlord and Tenant hereby certify that as of the date hereof, and to the best of each partys knowledge, that the other party is not in default of the performance of its obligations pursuant to the Lease, and that neither party has a claim, defense, or offset against the other party with respect to the Lease |
13. | Confirmation. Except, as and to the extent modified by this First Amendment to the Lease, all provisions of the Lease shall remain in full force and effect. In the event of a conflict between the terms of the Lease and the terms of this First Amendment, the terms in this First Amendment shall control. |
IN WITNESS WHEREOF, Landlord and Tenant agree to the foregoing as evidenced by affixing their signatures below.
LANDLORD: PACIFIC OCEANSIDE HOLDINGS, L.P., | ||
a California limited partnership | ||
By: | Pacific Oceanside Assets, Inc., | |
a California corporation | ||
Its: | General Partner | |
By: | /s/ [illegible] | |
Date: |
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By: |
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Date: |
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TENANT: CONAGRA FOODS, INC., a Delaware corporation | ||
By: | /s/ James G. Doyle | |
Printed Name: James G. Doyle | ||
Its: | Vice President Real Estate and Facilities | |
Date: | 2/21/03 |
EXHIBIT D
TENANT IMPROVEMENTS TO THE EXPANSION SPACE
General recital: Tenant accepts the Expansion Space in As-Is condition, and Landlord shall provide a Tenant Improvement Allowance (as defined below) for Tenant to construct further improvements to the Expansion Space, subject to the terms and conditions as more completely described herein.
Section 1. Tenants Plan Approval. Concurrently with, or within thirty (30) calendar days following the execution of this First Amendment, Tenant shall cause detailed plans and specifications (the Plans) to be prepared and delivered to Landlord; which Plans shall reflect the work to be performed within the Expansion Space by Tenant in order to suitably prepare the Expansion Space for Tenants use (the Tenants Work). Landlord shall, within ten (10) calendar days following its receipt of the Plans, either approve such Plans or provide Tenant with the reasons that Landlord is withholding such consent. If Landlord does not approve the Plans, Tenant shall immediately cause the Plans to be revised, consistent with Landlords comments, and then resubmit the Plans to Landlord for review within ten (10) calendar days of Landlords notice to Tenant of said non-approval of Tenants Plans. No work shall be undertaken by Tenant until the Plans have been finally approved by Landlord, Performance of the Tenants Work shall strictly conform to the approved Plans and any deviation will require Landlords prior approval. Any delays caused by Tenant with respect to submittal, revision, or approval of Plans pursuant to this paragraph shall not postpone the Expansion Space Rent Commencement Date. In the event that Tenants Plans have not been mutually approved within forty (40) days following the Expansion Space Lease Commencement Date, Landlord may, at Landlords option, terminate this First Amendment, regain possession of the Expansion Space, and Tenant shall reimburse Landlord for Landlords costs in preparing the Expansion Space for Tenants occupancy.
Section 2. Tenants Work Completion Period. Following the Expansion Space Lease Commencement Date and Tenants acceptance of the Expansion Space, Tenant shall cause Tenants Work to be completed in accordance with sound construction practices and in a manner consistent with this Exhibit D (Tenants Work Completion Period). Landlord and Tenant estimate that completion of Tenants Work shall not exceed 120 days from the Expansion Space Lease Commencement Date,
Section 3. Construction of Tenant Improvements by Tenants Contractor. After the Plans for the Tenants Work have been approved by Landlord and the local governing agencies, Tenant shall submit to Landlord the name, address, license number, evidence of insurance, and any other information required by Landlord of Tenants proposed contractor(s) (Contractor) for Landlords review and approval. If Landlord deems, in Landlords reasonable discretion, that Tenants proposed Contractor is unacceptable, Tenant shall resubmit information on a replacement contractor until a mutually approved Contractor is selected. Upon said selection, Tenant shall enter into a construction contract with the Contractor which shall include a provision for compliance with Landlords rules and regulations as defined herein, and Tenant shall provide Landlord with a copy of said contract. In no event shall Tenant be permitted access
to the Expansion Space to perform Tenants Work prior to providing all information requested by Landlord relating to Tenants Work. Failure by Tenant to provide any information requested by Landlord, including but not limited to evidence of Tenants and Tenants Contractors compliance with all of the insurance requirements hereof, shall not delay the Expansion Space Lease Commencement Date or the Expansion Space Rent Commencement Date, but will constitute grounds for Landlords denying access to the Expansion Space by Tenant. Violations of Landlords rules, regulations, and requirements as set forth herein or as otherwise established by Landlord shall constitute a default of this Lease if not corrected by Tenant and/or Tenants Contractor within twenty four (24) hours notice, either written or oral, by Landlord to Tenant. Landlord shall have the right to post a notice of non-responsibility at a prominent location within Tenants Premises.
It shall be the responsibility of Tenant to enforce the following requirements of Tenants Contractor, and all subcontractors of Tenants Contractor, at every level:
3.1. Tenants Contractor shall perform Tenants Work in a manner and at times which do not impede or delay Landlords contractor, if applicable, in the Project. Any delays in the completion work by the Landlord or Landlords contractor, if applicable, on the Project, or the commencement of the annual rental and any damage to any work caused by Tenants Contractor shall be at the sole cost and expense of Tenant,
3.2. Tenants Contractor shall be responsible for the repair, replacement, or clean up of any damage by him to other contractors work which specifically includes access ways to the Expansion Space which may be concurrently used by others. Firelanes, sidewalks, hallways, and access to other tenants suites may not be blocked or obstructed at any time.
3.3. Tenants Contractor shall contain his storage of materials and his operations within the Expansion Space and such other space as he may be assigned by Landlord. Should he be assigned space outside of the Expansion Space, he shall move to such other space as Landlord shall direct from time to time to avoid interference or delays with other work. Tenants Contractor shall park construction vehicles in areas designated by Landlord.
3.4. All trash and surplus construction materials shall be stored within the Expansion Space and shall be promptly removed from the Expansion Space. Tenants Contractor shall not use common area trash enclosures or waste bins for disposal of trash or surplus construction material.
3.5. Noise shall be kept to a minimum at all times, and shall not be permitted to interfere with the conduct of other tenants business, or the general operation of the Project. Tenants Contractor shall notify Landlord or Landlords project manager of any planned work to be done on weekends or other than normal job hours.
3.6. Tenant and Tenants Contractor are responsible for compliance with all applicable codes and regulations of duly constituted authorities having jurisdiction as far as the performance of the Tenants Work is concerned and for all applicable safety regulations
established by the Landlord, OSHA, or other regulatory agencies, and Tenant further agrees to save and hold Landlord harmless for Tenants actions arising from Tenants Work. Prior to commencement of construction, Tenant shall submit to Landlord evidence of insurance as required by this Lease and evidence of insurance for Tenants Contractor.
3.7. Tenants Contractor shall not post signs an any pan of the Project or the Expansion Space, without Landlords prior written approval.
3.8. Tenant shall be responsible for and shall obtain and record a Notice of Completion promptly following completion of Tenants work.
3.9. Tenant shall provide to Landlord a copy of the fully executed construction contract, including all addendum and a line item breakdown by trade thereto, between Tenant and its Contractor for the Tenants Work.
3.10. All required permits and approvals, including but not limited to Planning, Building, Fire, and Health department permits, must be obtained and all necessary calculations, including, but not limited to, those required under Title 24, must be submitted to the local governing agencies for all work to be performed by Tenant or Tenants Contractor in the Expansion Space.
3.11. Any modifications to the building exterior shall be subject to Landlords prior approval. No romex wiring shall be allowed, nor shall water lines be placed in slabs, unless approved by Landlord prior to installation. All equipment placed upon the roof as a result of the Tenants Work, and all roof penetrations, shall be approved by Landlord prior to the commencement of work.
3.12. Landlord, at Landlords reasonable discretion, may from time to time establish such other rules and regulations for protection-of property and the general safety of occupants and invitees of the Project. Such rules and regulations shall apply to Tenant and Tenants Contractor as though established upon the execution of this Exhibit D.
Section 4. Coordination of Construction. Tenant covenants and agrees that Tenant and Tenants Contractor shall not destroy or in any way damage any portion of the Project. Further, Tenant covenants and agrees that Tenant and Tenants Contractor shall coordinate the Tenants Work with any construction schedule for any work being performed by or on behalf of Landlord or any other tenant, if applicable, and that the performance of the Tenants Work shall not interfere with Landlords or any other tenants construction activities, if applicable. If there be such interference or conflict, notice thereof shall be given to Tenant, and immediately after receipt of such notice the Tenant agrees to cease or cause to be terminated such interference or conflict. Tenant shall be responsible to Landlord for any lost rents due to the delay of the Expansion Space Rent Commencement Date. Tenant further covenants and agrees that Tenant and Tenants Contractor shall comply with all rules and regulations promulgated by Landlord, or its agent, and all directives of Landlord governing construction or installation activities, including but not limited to, Permissible hours for construction or installation activities, storage
of equipment and responsibility for cleaning of work areas. If Tenant or Tenants Contractor shall fail to comply with the provisions of this Section any costs incurred by Landlord as a result of such failure shall be at Tenants sole and exclusive expense.
Section 5. No Landlord Liability. Landlord shall not be liable for any loss, cost, damage, or expense incurred or claimed by Tenant or any other person or patty on account of the construction or installation of the Tenants Work any other person or party on account of the construction or installation of the Tenants Work or any other improvements to the Premises or Expansion Space made by Tenant during the Lease Term. Tenant hereby acknowledges and agrees that the compliance of the Tenants Work, or other Alterations (as defined in the Lease) made to the Premises or the Expansion Space by the Tenant and any plans therefore, with all applicable governmental laws, codes, and regulations shall be solely Tenants responsibility. Landlord assumes no liability or responsibility resulting from the failure of the Tenant to comply with all applicable governmental laws, codes and regulations or for any defect in any of the Tenants Work or other Alterations to the Premises or Expansion Space made by Tenant. Tenant further agrees to indemnify, defend, and hold harmless Landlord from any loss, cost, damage or expense incurred, claimed, asserted, or arising in connection with any of the foregoing.
Section 6. Tenant Improvement Allowance. Provided that the Tenants Work is constructed by Tenants Contractor in accordance with this Exhibit D. Landlord shall reimburse Tenant for Tenants actual construction costs up to a maximum of Thirteen Thousand Seven Hundred Thirty-Four and 00/100 Dollars ($13,734.00) for said Tenants Work (Tenant Improvement Allowance). Such Tenant Improvement Allowance shall be paid directly to Tenant in two equal installments. The first installment of fifty percent (50%) shall be paid within ten business days following fifty percent (50%) completion of the Tenants Work based on submitted invoices, work performed, and all unconditional waiver and release upon progress payment for material and labor lien releases from Tenants Contractor, subcontractors, and suppliers. The final fifty percent (50%), shall be paid within ten business days following proper recordation of a Notice of Completion for the Tenants Work, upon commencement of Tenants business within the Expansion Space, and upon receipt of all unconditional waiver and release upon final payment for material and labor lien releases from Tenants Contractor, subcontractors, and suppliers, and subject to satisfaction of the following conditions:
6.1. Tenant must have completed the Tenants Work in accordance with the Landlord approved final Plans and specifications.
6.2. A Notice of Completion has been properly recorded for Tenants Work and 35 days have elapsed since the date of such recording.
6.3. Tenant has submitted a complete set of as built plans and specifications to Landlord.
6.4. Tenant has provided to Landlord copies of all insurance certificates required under this Lease.
6.5. A final, unconditional certificate of occupancy for the Expansion Space has been issued by the appropriate governmental agency, and a copy thereof provided to Landlord.
6.6. Tenant has provided Landlord with all unconditional waiver and release upon final payment for material and labor lien releases from Tenants Contractor, subcontractors, and suppliers. Said lien releases must total at least the amount of Landlords construction advance to Tenant.
6.7. Tenant has provided Landlord all construction warranties and guarantees in connection with construction of Tenants Work.
6.8. Landlord has inspected and approved the Tenants Work and is satisfied that the Tenants Work has been performed in a good and workmanlike manner in accordance with the approved Plans; provided, however, no such inspection shall impose any liability upon Landlord, nor absolve Tenant or Tenants Contractor from liability for any defect or failure to comply with the requirements hereof.
Section 7. Use of Landlords Tenant Improvement Allowance.
7.1. The Tenant Improvement Allowance that Landlord agrees to contribute toward the cost of Tenants Work shall in no event be applied toward Tenants furniture, fixtures, furnishings, personal property, signs or any monetary obligations of Tenant under this Lease and First Amendment. Such funds will be used only to pay the cost of tenant improvements that shall become the property of Landlord and remain upon and be surrendered with the Expansion Space or Premises, as a part thereof, at the end of the Term of the Lease.
7.2. All fees, permits, utility charges, or assessments associated with the construction of Tenants Work are Tenants responsibility to pay, but may be paid by the Landlord on Tenants behalf from the Tenant Improvement Allowance if not paid directly by Tenant .
Section 8. Future Improvements by Tenant to the Premises (as defined in the First Amendment). In the event that Tenant shall desire to perform future improvements to the Premises during the term of this Lease or any extension thereof Tenant shall construct such improvements in accordance with the terms and conditions of this Exhibit D, except that no Tenant Improvement Allowance shall be granted by Landlord to Tenant for said future improvements. All costs arising from said future improvements shall be the sole and exclusive responsibility of Tenant to pay, in a prompt and timely fashion as said costs become due.
EXHIBIT B-1
TO FIRST AMENDMENT TO LEASE
EXPANSION SPACE
STONECREST OFFICE PROJECT
9655 GRANITE RIDGE DRIVE
SUITE 260
SAN DIEGO, CA 92123
APPROXIMATELY 1,114 RENTABLE SQUARE FEET