California-Sunnyvale-1240 Crossman Avenue Lease [Amendment No. 1] - Network Appliance Inc. and PalmSource Inc.
Lease Forms
Start a state-specific lease for the rental of commercial property. Specify the term and rent due, as well as whether the landlord or tenant is responsible for property taxes, insurance, and maintenance and repairs.
When a tenant vacates commercial property before the lease term has expired, it may be able to rent the premises to a third party. The tenant would be the sublessor and the third party would be the sublessee. Besides preparing a sublease, both parties will want to review the provisions for assignment or subletting in the original lease agreement between the landlord and the sublessor.
Tenants of residential property should prepare a sublease agreement if they are seeking to sublease a room or the entire apartment or house to a third party. All parties should review the original lease agreement to see if there are any restrictions on subletting or assigning the premises.
Triple net leases are a type of commercial leases where the tenant has to pay for property taxes, insurance, utilities, and maintenance, in addition to the monthly rent.
When renting an office space, tenants should understand the amount of the rent and duration of the lease. Other important terms include whether the space can be subleased, which parties are responsible for maintenance, and whether any furniture and furnishings will be provided.
AMENDMENT NO. 1 TO LEASE AGREEMENT AND WORK LETTER AGREEMENT
THIS AMENDMENT NO. 1 TO LEASE AGREEMENT AND WORK LETTER AGREEMENT (“Amendment”) is made as of May 23, 2002, between NETWORK APPLIANCE, INC., a Delaware corporation (“Landlord”), and PALMSOURCE, INC., a Delaware corporation (“Tenant”).
THE PARTIES ENTER INTO THIS AMENDMENT based upon the following facts, understandings and intentions:
A. Landlord and Tenant are now parties to that certain Lease Agreement, effective as of April 19, 2002 (the “Lease”), whereby Landlord leases to Tenant, and Tenant leases from Landlord, approximately 88,096 rentable square feet of space (the “Premises”) located in Landlord’s building located at 1240 Crossman Avenue in Sunnyvale, California.
B. Landlord and Tenant are also now parties to that certain Improvement Agreement, effective as of April 19, 2002 (the “Improvement Agreement”) which sets forth the obligations of Landlord and Tenant with respect to the build out of the Premises. The Lease and Improvement Agreement are hereinafter referred to as the “Lease Documents.”
C. Pursuant to the terms of the Improvement Agreement, Landlord has agreed to perform certain improvements to the Premises in accordance with the “Approved Plans” attached thereto. Tenant may request change orders to the Approved Plans pursuant to the terms of the Improvement Agreement. Tenant has requested certain change orders to the Approved Plans, the cost of which the parties have estimated to be $106,649. Those change orders, which are a part of the “Landlord’s Work” described in Exhibit B-1 attached hereto, are hereinafter referred to as the “Tenant’s Change Orders”. Tenant has requested that the cost of such Tenant’s Change Orders be paid in cash by Tenant to Landlord. Tenant’s Change Orders shall also require certain changes in the Furniture included with the Premises, as more particularly described below.
D. Section 8.12 of the Lease states that Tenant may install and use a satellite/antenna on the roof of the Building in accordance with plans and specifications attached to the Lease as Schedule 4. Tenant has no immediate plans to install the satellite/antenna, and Schedule 4 is not currently attached to the Lease.
E. Section 22.34 of the Lease states that either party thereto may terminate the Lease if the Master Lessor does not consent to its terms within forty five (45) days after the Effective Date of the Lease. However, after the Effective Date, but prior to the expiration of such forty-five (45) day time period, Landlord purchased the Project from the Master Lessor and terminated the Master Lease, rendering the need for Master Lessor’s written consent to the Lease obsolete.
F. The parties hereto desire to modify the Lease Documents as hereinafter provided. Capitalized terms used herein shall have the same meaning given them in the Lease Documents.
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NOW, THEREFORE, IN CONSIDERATION of the mutual covenants and promises of the parties, the parties hereto agree as follows:
1. Estimated Commencement Date. The Estimated Commencement Date is hereby modified to August 15, 2002. Notwithstanding anything to the contrary in the Lease Documents, the Commencement Date shall not be affected as a result of the Tenant’s Change Orders.
2. Approved Plans. The “Approved Plans” attached to the Improvement Agreement as Exhibits B-1 and B-2 are hereby deleted in their entirety and replaced with the plans attached hereto as Exhibit B-1, which plans shall be the “Approved Plans” for the purposes of the Lease Documents.
3. Payment of Change Orders Costs. The cost of the Tenant’s Change Orders is agreed by the parties to be $106,649 (“Change Order Cost”). Tenant shall pay the Change Order Cost to Landlord upon execution of this First Amendment.
4. Furniture. The description of the Furniture to be included as part of the Premises pursuant to Section 1.4 of the Lease and attached thereto as Schedule 2 is hereby deleted in its entirety and replaced with the description of Furniture attached hereto as Schedule 2.
5. Master Lessor’s Consent. Master Lessor’s consent to the Lease is no longer required, and neither party shall have the right to terminate the Lease pursuant to Section 22.34 of the Lease, notwithstanding the failure of the Master Lessor to consent to its terms.
6. Satellite/Antenna. Landlord acknowledges that Tenant has no immediate plans to install a satellite/antenna on the roof of the Building and that a Schedule 4 is not currently attached to the Lease. Tenant acknowledges and agrees that at such time as Tenant determines to install a satellite/antenna, Schedule 4 will be provided in advance to Landlord for Landlord’s review and approval, which shall not be unreasonably withheld or delayed.
7. Full Force and Effect. Except as herein amended and supplemented, the Lease Documents shall continue in full force and effect as written.
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IN WITNESS WHEREOF, the parties hereto have executed this Amendment with duplicate counterparts as of the day and year first above written.
