Build To Suit Lease

BUILD TO SUIT LEASE


BY AND BETWEEN


MARTIN/CAMPUS ASSOCIATES, L.P.


"LANDLORD"


AND

AT HOME CORPORATION

"TENANT"

For the approximately 90,840 sq. ft. Premises at 420 Broadway
Redwood City, CA 94063 2


LEASE SUMMARY


Lease Date: July 14, 1998
--------------------------------------------


Landlord: Martin/Campus Associates, L.P.


Address of Landlord: 100 Bush Street, 26th Floor
San Francisco, CA 94104


Tenant: At Home Corporation


Address of Tenant: 425 Broadway
Redwood City, CA


Contact: Kenneth Goldman


Telephone: (650) 569-5353


Building Address: 420 Broadway
Redwood City, California


Total Building Square Footage: Approximately 90,840 square feet


Term: Fifteen years from the Commencement
Date under the 450 Broadway Lease
(see Paragraph 4.A.)


Monthly Rent: As provided under Paragraph 5.A, and subject
to adjustment pursuant to Paragraph 4.C and
5.B


Security Deposit: An amount equal to three (3) payments of the
initial Monthly Rent (see Paragraph 7)


Exhibit A: Premises Exhibit B: Work Letter Agreement Exhibit C: Site Plan for Project Exhibit D: Commencement Date Memorandum Exhibit E: Subordination, Nondisturbance and Attornment Agreement Exhibit F: Option to Purchase Terms


3
TABLE OF CONTENTS


1. Parties..............................................................................2


2. Premises.............................................................................2


3. Definitions..........................................................................2
A. Affiliate.....................................................................2
B. Alterations...................................................................2
C. Broadway Lease................................................................2
D. Capital Improvements..........................................................3
E. CC&Rs.........................................................................3
F. Collateral Agreements.........................................................3
G. Commencement Date.............................................................3
H. Common Area...................................................................3
I. Common Area Maintenance Costs.................................................3
J. Final Plans...................................................................5
K. HVAC..........................................................................5
L. Impositions...................................................................6
M. Improvements..................................................................6
N. Index.........................................................................6
O. Interest Rate.................................................................6
P. INTENTIONALLY DELETED.........................................................6
Q. Landlord's Agents.............................................................6
R. Lease Year....................................................................7
S. Monthly Rent..................................................................7
T. Parking Area..................................................................7
U. Person........................................................................7
V. Project.......................................................................7
W. Real Property Taxes...........................................................7
X. Rent..........................................................................8
Y. Rentable Area.................................................................8
AA. Security Deposit..............................................................8
BB. Sublet........................................................................8
CC. Subrent.......................................................................9
DD. Subtenant.....................................................................9
EE. Tenant Delay..................................................................9
FF. Tenant Improvements...........................................................9
GG. Tenant's Percentage Share.....................................................9
HH. Tenant's Personal Property....................................................9
II. Term.........................................................................10
JJ. Fixed Charge Ratio...........................................................10


4. Lease Term...............................................................................10
A. Term.........................................................................10


4


B. Delays in Completion.........................................................10
C. Option to Extend.............................................................10


5. Rent and Additional Charges.........................................................13
A. Monthly Rent.................................................................13
B. Adjustments to Monthly Rent..................................................14
C. Management Fee...............................................................14
D. Common Area Maintenance Costs................................................15
E. Additional Rent..............................................................16
F. Prorations...................................................................16
G. Interest.....................................................................16


6. Late Payment Charges................................................................16


7. Security Deposit....................................................................17
A. Deposit Required.............................................................17


8. Holding Over........................................................................18


9. Tenant Improvements.................................................................19


10. Condition of Premises...............................................................19
A. Capital Improvements.........................................................19
B. Acceptance of Premises.......................................................19


11. Use of the Premises and Common Area.................................................19
A. Tenant's Use.................................................................20
B. Hazardous Materials..........................................................20
C. Special Provisions Relating to The Americans With Disabilities Act of 1990...24
D. Use and Maintenance of Common Area...........................................25


12. Quiet Enjoyment.....................................................................25


13. Alterations.........................................................................26
A. Alteration Rights............................................................26
B. Performance of Alterations...................................................26
C. Trade Fixtures...............................................................26


14. Surrender of the Premises...........................................................27


15. Impositions and Real Property Taxes.................................................27
A. Payment by Tenant............................................................27
B. Taxes on Tenant Improvements and Personal Property...........................28
C. Proration....................................................................29


16. Utilities and Services..............................................................29


5


17. Repair and Maintenance..............................................................29
A. Landlord's Obligations.......................................................29
B. Tenant's Obligations.........................................................30
C. Conditions Applicable to Repairs.............................................31
D. Landlord's Rights............................................................31
E. Compliance with Governmental Regulations.....................................31


18. Liens...............................................................................31


19. Landlord's Right to Enter the Premises..............................................32


20. Signs...............................................................................32


21. Insurance...........................................................................32
A. Indemnification..............................................................32
B. Tenant's Insurance...........................................................33
C. Premises Insurance...........................................................34
D. Increased Coverage...........................................................34
E. Failure to Maintain..........................................................34
F. Insurance Requirements.......................................................35
G. Waiver and Release...........................................................35


22. Waiver of Subrogation...............................................................35


23. Damage or Destruction...............................................................36
A. Landlord's Obligation to Rebuild.............................................36
B. Right to Terminate...........................................................36
C. Limited Obligation to Repair.................................................37
D. Abatement of Rent............................................................37
E. Damage Near End of Term......................................................37


24. Condemnation........................................................................37


25. Assignment and Subletting...........................................................38
A. Landlord's Consent...........................................................38
B. Tenant's Notice..............................................................38
C. Information to be Furnished..................................................38
D. Landlord's Alternatives......................................................39
E. Proration....................................................................39
F. Parameters of Landlord's Consent.............................................39
G. Permitted Transfers..........................................................40


26. Default.............................................................................40
A. Tenant's Default.............................................................40
B. Remedies.....................................................................41


6


C. Landlord's Default...........................................................42


27. Subordination.......................................................................42
A. Subordination................................................................42
B. Attornment...................................................................43
C. Non-Disturbance..............................................................43


28. Notices.............................................................................43


29. Attorneys' Fees.....................................................................44


30. Estoppel Certificates...............................................................44


31. Transfer of the Premises by Landlord................................................45


32. Landlord's Right to Perform Tenant's Covenants......................................45


33. Tenant's Remedy.....................................................................45


34. Mortgagee Protection................................................................45


35. Brokers.............................................................................46


36. Acceptance..........................................................................46


37. Parking.............................................................................46


38. Right of First Offer to Purchase....................................................46
A. Notice of Sale...............................................................47
B. Acceptance...................................................................47
C. Rejection....................................................................47
D. Offered Terms................................................................48
E. Acceptance of Tenant's Offer.................................................48
F. Conditions...................................................................48
G. Process......................................................................48
H. Rights Personal..............................................................49


39. General.............................................................................49
A. Captions.....................................................................49
B. Executed Copy................................................................49
C. Time.........................................................................49
D. Separability.................................................................49
E. Choice of Law................................................................49
F. Gender; Singular, Plural.....................................................49
G. Binding Effect...............................................................49
H. Waiver.......................................................................50


7


I. Entire Agreement.............................................................50
J. Authority....................................................................50
K. Exhibits.....................................................................50
L. Lease Summary................................................................50
M. Memorandum of Lease..........................................................50 8
BUILD TO SUIT LEASE


1. Parties.


THIS BUILD TO SUIT LEASE (the "Lease"), dated as of July 14, 1998, is entered into by and between MARTIN/CAMPUS ASSOCIATES, L.P., a Delaware limited partnership ("Landlord"), whose address is 100 Bush Street, San Francisco, CA 94104, and AT HOME CORPORATION, a Delaware corporation ("Tenant"), whose address is 425 Broadway, Redwood City, CA.


2. Premises.


Landlord hereby leases to Tenant and Tenant hereby leases from Landlord those certain premises to situated in a building to be constructed by Landlord pursuant to the terms of this Lease which shall be commonly known as 420 Broadway (the "Building"), in the City of Redwood City, County of San Mateo, State of California, as more particularly shown on Exhibit A (the "Premises"), which Premises shall consist of a total area of approximately 90,840 square feet. On or before the Commencement Date, Landlord shall measure the Rentable Area of the Premises in accordance with BOMA Standard (ANSI Z65.1 1980) for full floor office occupancy, and Landlord and Tenant shall amend this Lease if necessary to reflect any discrepancy in the size of the Premises disclosed by Landlord's measurement of the Premises by Landlord's architect. The Premises also includes the appurtenant right to use in common with other tenants of the Project (as defined below) the Common Area (as defined below) of the Project owned by Landlord.


3. Definitions.


The following terms shall have the following meanings in this Lease:


A. Affiliate. Any Person that controls, or is controlled by or is under common control with, Landlord or Tenant. No Person shall be deemed in control of another simply by virtue of being a partner, director, officer or holder of voting securities of any Person. For purposes of this Paragraph 3.A, "control" shall mean the ownership of, and/or the right to vote, stock, partnership interests, membership interests, or other indicia of ownership possessing at least fifty-one percent (51%) of either the total combined interests in a Person, or the voting power of all classes of a Person's capital stock, partnership interests, membership interests, or other indicia of ownership, that have been issued, outstanding, and (if applicable) are entitled to vote.


B. Alterations. Any alterations, additions or improvements made in, on or about the Premises after the substantial completion of the Improvements, including, but not limited to, lighting, heating, ventilating, air conditioning, electrical, partitioning, drapery and carpentry installations.


C. Broadway Lease. That certain lease dated as of October 18, 1996, by and between Landlord and Tenant, for those certain premises commonly known as 425 Broadway,


2 9 situated in the City of Redwood City, County of San Mateo, State of California.


D. Capital Improvements. Those certain improvements to the Building to be constructed by Landlord pursuant to Paragraph 10.A and the Work Letter Agreement attached to this Lease as Exhibit B (the "Work Letter").


E. CC&Rs. Any declaration of conditions, covenants and/or restrictions, or similar instrument, that now encumbers, or may in the future encumber the Project or the Premises, as adopted by Landlord or its successors in interest from time to time, and any modifications or amendments thereto.


F. Collateral Agreements. The following agreements: (i) the Broadway Lease, (ii) that certain Build to Suit Option Agreement by and between Landlord and Tenant, dated as of October 25, 1996 (the "Build to Suit Agreement"), (iii) that certain Agreement Granting Rights of First Offer, by and between Landlord and Tenant, dated as of October 25, 1996, (iv) that certain Warrant to Purchase Series A Common Stock of At Home Corporation and that certain Second Amended and Restated Registration Rights Agreement, executed by Landlord, Tenant and certain other parties, each dated as of October 18, 1996 (collectively, the "Warrant Agreement"), and (v) any leases at any time executed by Tenant arising out of Tenant's exercise of any of its rights set forth in the agreements described in items (ii) and (iii) above. The "450 Broadway Lease" shall mean that certain lease between Landlord and Tenant with respect to the premises commonly known as 450 Broadway, Redwood City, California.


G. Commencement Date. The Commencement Date of this Lease shall be the first day of the Term determined in accordance with Paragraph 4.A.


H. Common Area. All areas and facilities within the Project not appropriated to the exclusive occupancy of tenants, including the Parking Area, the sidewalks, pedestrian ways, driveways, signs, pools, ponds, service delivery facilities, common storage areas, common utility facilities and all other areas in the Project established by Landlord and/or its successors for non-exclusive use. Landlord may, by written notice to Tenant, elect in its sole discretion to increase and/or decrease the Common Area from time to time during the Term for any reason whatsoever (including without limitation an election by Landlord and/or its successors in their sole discretion to make changes to the buildings situated in the Project, and/or to subdivide, sell, exchange, dispose of, transfer, or change the configuration of all or any portion of the Common Area from time to time), so long as Landlord neither unreasonably interferes with ingress to or egress from the Building, nor permanently reduces the number of parking spaces available for Tenant's use below the minimum requirements set forth in Paragraph 37. No such subdivision, sale, exchange, disposition, transfer, or change to the configuration of all or any portion of the Common Area shall cause the Common Area to be increased or decreased unless and until Landlord has given Tenant written notice of such increase or decrease.


I. Common Area Maintenance Costs. The total of all costs and expenses paid or incurred by Landlord in connection with the operation, maintenance, ownership and repair of the Common Area, and the performance of Landlord's obligations under Paragraphs 17.A and 17.E. Without limiting the generality of the foregoing, Common Area Maintenance


3 10


Costs include all costs of and expense for: (i) maintenance and repairs of the Common Area; (ii) resurfacing, resealing, remarking, painting, repainting, striping or restriping the Parking Area; (iii) maintenance and repair of all public or common facilities; (iv) maintenance, repair and replacement of sidewalks, curbs, paving, walkways, Parking Area, Project signs, landscaping, planting and irrigation systems, trash facilities, loading and delivery areas, lighting, drainage and common utility facilities, directional or other signs, markers and bumpers, and any fixtures, equipment and personal property located on the Common Area; (v) wages, salaries, benefits, payroll burden fees and charges of personnel employed by Landlord and the charges of all independent contractors retained by Landlord (to the extent that such personnel and contractors are utilized by Landlord) for the maintenance, repair, management and/or supervision of the Project, and of any security personnel retained by Landlord in connection with the operation and maintenance of the Common Area (although Landlord shall not be required to obtain security services); (vi) maintenance, repair and replacement of security systems and alarms installed by Landlord (if any); (vii) depreciation or amortization (or in lieu thereof, rental payments) on all tools, equipment and machinery used in the operation and maintenance of the Common Area; (viii) premiums for Comprehensive General Liability Insurance or Commercial General Liability Insurance, casualty insurance, workers compensation insurance or other insurance on the Common Area, or any portion thereof or interest therein, and any deductibles payable with respect to such insurance policies; (ix) all personal property or real property taxes and assessments levied or assessed on the Project, or any portion thereof or interest therein, including without limitation the Real Property Taxes for the Project, if applicable under Paragraph 15.A; (x) cleaning, collection, storage and removal of trash, rubbish, dirt and debris, and sweeping and cleaning the Common Area; (xi) legal, accounting and other professional services for the Project, including costs, fees and expenses of contesting the validity or applicability of any law, ordinance, rule, regulation or order relating to the Building, and of contesting, appealing or otherwise attempting to reduce any Real Property Taxes assessed against the Project; (xii) any alterations, additions or improvements required to be made to the Common Area in order to reduce Common Area Maintenance Costs or to protect the health or safety of occupants of the Project, provided that the cost of any such alterations, additions, improvements or capital improvements, together with interest at the Interest Rate, shall be amortized over the useful life of the alteration, addition, improvement or capital improvement in question and included in Common Area Maintenance Costs for each year over which such costs are amortized; (xiii) all costs and expenses of providing, creating, maintaining, repairing, managing, operating, and supervising an amenity center for the Project, which may include without limitation a dining facility (provided, however, that Landlord shall not be required to provide or create such an amenity center), which costs and expenses may include without limitation rent charged by Landlord for the space occupied by such amenity center; (xiv) all costs and expenses incurred by Landlord in performing its obligations under Paragraphs 17.A or 17.E, including without limitation all costs and expenses incurred in performing any alterations, additions or improvements required to be made to the Building in order to comply with applicable laws, ordinances, rules, regulations and orders and all capital improvements required to made in connection with the operation, maintenance and repair of the Building, provided that the cost of any such alterations, additions, improvements or capital improvements, together with interest at the Interest Rate, shall be amortized over the useful life of the alteration, addition, improvement or capital improvement in question and included in Common Area Maintenance Costs for each year over which such costs are amortized; (xv) all costs and expenses incurred in performing any


4 11 alterations, additions or improvements required to be made to the Common Area in order to comply with applicable laws, ordinances, rules, regulations and orders and all capital improvements required to made in connection with the operation, maintenance and repair of the Common Area, provided that the cost of any such alterations, additions, improvements or capital improvements, together with interest at the Interest Rate, shall be amortized over the useful life of the alteration, addition, improvement or capital improvement in question and included in Common Area Maintenance Costs for each year over which such costs are amortized; (xvi) any and all paymen ...