LEASE AGREEMENT
THIS LEASE made in triplicate this 9th day October , 1996, between L & R Investments, a Washington General Partnership (Landlord) and Veritas Software, a California Corporation (Tenant).
As Parties hereto. Landlord and Tenant agree:
1. LEASE DATA AND EXHIBITS:
(a) LEASED PREMISES. The leased premises (the "Premises") consists of
suite(s) #13 on the 1 St. floor(s) outlined on the floor plans attached
hereto as Exhibit "A" of the 14450 NE 29th Place Building located at
14450 NE 29th Place, Bellevue, WA 98007 (the "Building") and situated on
the real property as more particularly described at Section 2 hereof
(the "Land"). The premises shall include the Tenant improvements, if
any, set forth and initialed on Exhibit B hereto.
(b) FLOOR AREA. The Agrees Floor Area of the Premises is 1,934 rentable
square feet, and the Agreed Floor Area of the total Building is 47,310
square feet.
(c) Lease Term. The term shall be 3 years and no months, commencing on
November 18, 1996 and expiring on November 30,1999 or such earlier or
later date provided in paragraph 3 hereof.
(d) RENT. The monthly rent shall be $see per month, payable in advance on
or before the first day of each month without offset or deduction at the
offices of Landlord's building manager at or such other place designated
by Landlord. Tenant has deposited with Landlord on the date hereof $
2,739.83 to be applied to the first monthly rental payment due
hereunder.
(e) SECURITY DEPOSIT. The security deposit shall be $2,901.00 .
(f) USE. The premises shall be used only for General office for the propose
of operating a Software Company and no other purpose of use without the
written consent of Landlord.
2. PREMISES: Landlord does hereby lease to Tenant and Tenant
does hereby lease from Landlord, upon terms and conditions herein set
forth, those certain Premises described in Section 1 (a) hereof, located
on the land in Bellevue, King County ,Washington (City, County, State)
and more described in Exhibit C hereto.
3. TERMS: The Lease term shall be for the period stated in Section 1 (C)
hereof. The lease term shall commence on the commencement date specified
in Section 1 (C). If any, or on such later date as may be specified by
written notice delivered by Landlord to Tenant advising Tenant that the
Premises are ready for occupancy and specifying the commencement date,
which shall not be less than 30 days following the date of such notice.
Provided however, that if this Lease is executed prior to substantial
completion of the building described in Section 1 (a) the commencement
and termination dates of this Lease may at Landlord's sole option be
extended by any period not to exceed 60 days from the date specified in
Section 1 (C) because of delays due to casualties, acts of God, acts of
Tenants, strikes, shortages of labor or material or other causes beyond
the reasonable control of Landlord. If Tenant shall occupy the Premises
for Permitted Uses prior to the date specified in Section 1 (C) of this
Lease then commencement date shall be the date of such occupancy.
Neither Landlord nor any agent or employee of Landlord shall be liable
for any damage or loss due to Landlord's inability or failure to deliver
possession of the Premises to Tenant as provided herein.
4. RENT: Tenant shall pay Landlord the monthly rental rate stated in
Section 1(C) hereof without demand, deduction or offset, payable in
lawful money of the United States in advance on or before the day
specified in
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Section 1 (d) to Landlord at the offices of Landlord or its building
manager at the place specified in Section 1 (d), or such other party at
such other place as landlord may hereafter from time to time designate
in writing. Rental for any partial month at the beginning or end of the
Lease term shall be prorated Notwithstanding anything in Section 8 and 9
hereof, the rent payable by Tenant shall in no event be less than the
rent specified in Section 1 (d) of this Lease.
5. SECURITY DEPOSIT. As security for the full and faithful performance of
every covenant or condition of this lease to be performed by Tenant.
Tenant has paid to Landlord the sum specified in Section 1 (C) hereof,
the receipt of which is hereby acknowledged. If Tenant shall breach or
default with respect to any covenant or condition of this Lease,
including but not limited to the payment of rent, Landlord may apply all
or any part of such deposit to the payment of any sum in default or any
damage suffered by Landlord as a result of such breach or default, or
other sum which Landlord may be required to spend or incur by reason of
Tenant's breach, or any other sum which Landlord may in its reasonable
discretion deem necessary to spend or incur by reason of Tenant's breach
or default, and in such event. Tenant shall upon demand deposit with
Landlord the amount so applied so that Landlord shall have the full
deposit on hand at all times during the term of this Lease. Any payment
to Landlord from the security deposit shall not be construed as a
payment of liquidated damages. If Tenant shall have fully complied with
all of the covenants and conditions of this Lease, but not otherwise,
such shall be repaid to Tenant, without interest within thirty (30) days
after the expiration or sooner termination of this lease.
6. USES: The premises are to be used only for the specified in Section 1
(f) hereof (the "Permitted Uses ). And for no other business or purpose
without the written consent of Landlord. No act shall be done in or
about the Premises that is unlawfull or that will increase the existing
rate of insurance on the Building. Tenant shall not commit or allow to
be committed any waste upon the Premises, or any private nuisance or
other act or thing which disturbs the quiet enjoyment of any other
tenant in the Building. Tenant shall not, without the written consent of
Landlord, use any apparatus, machinery or device in ir about the
Premises which will cause any substantial noise or vibration or any
increase in the normal use of electricpower. If any of Tenant's office
machines and equipment should disturb the quiet enjoyment of any other
tenant in the Building, then Tenant shall provide adequate insulation,
or take such other action as may be necessary to eliminate the
disturbance. Tenant shall comply with all laws relating to its use of
the Premises and shall observe such reasonable rules and regualtions as
may be adopted and published by Ladlord for the safety, care and
cleanliness of the Premises or the Building, and for the preservation of
good order therin, including but not limited to any regualtions attached
to this lease.
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EXHIBIT D
ADDITIONAL TERMS AND CONDITIONS TO LEASE DATED OCTOBER 9, 1996
The following terms conditions incorporated into the lease:
The minimum base monthly rent provided in paragraph
number I (d) of the Lease is as follows:
1. RENT Months 1 - 12 $2,740.00 per month
Months 13 - 24 $2,820.00 per month
Months 25 - 36 $2,901.00 per month
2. CANCELLATION CLAUSE: Provided that the Tenant is not in default
under the terms of the Lease and that Tenant is current on all rent
and other costs through the effective date of termination the
Landlord grants Tenant the right to terminate this Lease effective
at the end of the 24h month of the Lease terms by providing the
Landlord with 6 months prior written notice of Tenant's intent to
cancel Lease. Upon Tenant's notice of Lease cancellation, Tenant
shall remit a check in the amount of $2,500.00 to the Landlord as a
cancellations fee.
3. TENANT IMPROVEMENTS: Landlord shall re-carpet the premises
with building standard carpet, color to be mutually agreed
upon by Tenant and Landlord. Landlord will repaint the
premises.
4. PARKING EXPENSES: The Tenant shall receive its pro rata share
of parking which equals 8 stalls of which I stall will be
covered. Said covered parking stall shall be at a charge of
$40.00 per month throughout the Lease term.
5. OPERATING EXPENSES: Not withstanding the terms and conditions
of paragraph 8, "cost of services and utilities", a 1997 base
year for expenses shall be used. Any operating costs which
exceed a 1997 base year shall be passed through to the Tenant
as per the Lease agreement.
6. OPTION TO EXTEND: Provided that the Tenant has not been in
default in any of the covenants, conditions and provisions of
this Lease, including prompt payment of all sums due herein,
the Tenant shall have an option to extend the Lease. Agreement
for one 3 year period on the following terms and conditions:
A. Tenant shall exercise its options by notifying the Landlord, in
writing, no earlier than nine (9) months or no later than six (6) months
prior to the termination date of this lease.
B. The rent shall be based upon the then current market rate for
comparable property in the Bellevue area, including increases in the
rent during the extended term.
C. If the parties cannot agree upon a market rental rate for the
extended term within forty-five (45) days after Tenant exercises its
option to extend, then this option shall be null and void.
D. All the conditions of this lease from the extended term shall be the
same as provided in the lease except that paragraphs 1,2,6.3.of
Exhibit D to this Lease shall not apply to the option period.
E. In no event shall the rent for the extended period be less than the
rent in effect for the preceding period.
This option shall be null and void (and the Lease Term shall expire
on the Termination Date) based on any one of the following :
1.) Tenant does not deliver to landlord written notice exercising such option
within the time period set forth above.
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2.) Tenant's rent (including Minimum Rent, Percentage Rent and Adjustments) is
not paid when due for any three (3) months (consecutive or
non-consecutive) during any Lease Year.
3.) Any notice of default is delivered by Landlord to Tenant pursuant to any
terms of the Lease.
This option applies in this instance only and is not to be construed as
approval for any future options. This option is personal to the Tenant and
is not transferable by Assignment, Sublease, death or sale of the
business, and shall be null and void in the event of any Assignment or
Sublease.
7. INSURANCE
(a) Tenant shall, thoughout the term of this Lease and any renewal hereof, at
its own expense, keep and maintain in full force and effect:
(i) A policy of general liability insurance, including a contractual
liability endorsement covering Tenant's obligation under this lease
hereof, insuring against claims of bodily injury or death or property
damage or loss with a combined single limit at the commencement of this
Lease of not less than two million Dollars ($2,000,000), which limit shall
be reasonably increased during the term of this Lease at Landlord's
request to reflect both increases in liability exposure arising from
inflation as well as arising from changing legal liability standards,
which policy is payable on an "occurrence" rather than a "claims made"
basis, and which policy names Landlord and, at Landlords request,
Landlord's mortgage lender(s) as additional insured;
(ii) What is commonly referred to as "all risk" coverage property
insurance (excluding earthquake and flood) covering Tenant's leasehold
improvements, furniture, fixtures, equipment, inventory and other personal
property located on the Premises, in the greater amount of (X) one hundred
percent (100%) of the current replacement value thereof, or (y) $1 00,000;
and
(iii) Business interruption insurance in the amount sufficient to cover
costs, expenses, rents due hereunder, damages and lost income should be
Premises not be fully usable for a period of up to 6 months.
(b) All insurance policies required under this exhibit shall be with companies
reasonably approved by Landlord and each policy shall provide that is not
subject to cancellation or reduction in coverage except after thirty (30)
days following written notice to Landlord. Tenant shall deliver to
Landlord and, at Landlord's request, Landlord's mortgage lender(s),
Agreement for one 3 year period on the following terms and conditions:
A. Tenant shall exercise its option by notifying the Landlord, in writing, no
earlier than nine (9) months or no later than six (6) months prior to the
termination date of this lease.
B. The rent shall be based upon the then current market rate for comparable
property in the Bellevue area, including increases in the rent during the
extended term.
C. If the parties cannot agree upon a market rental rate for the extended
term within forty-five (45) days after Tenant exercises its option to
extend, then this option shall be null and void.
D. All the conditions of this lease for the extended term shall be the same
as provided in the lease except that paragraphs 1,2,6,3, of Exhibit D to
this Lease shall not apply to the option period.
E. In no event shall the rent for the extended period be less than the rent
in effect for the preceding period.
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This option shall be null and void (and the Lease Term shall expire on the
Termination Date) based on any one of the following:
1.) Tenant does not deliver to landlord written notice exercising such option
within the time period set forth above.
2.) Tenant's rent (including Minimum Rent, Percentage Rent and Adjustments) is
not paid when due for any three (3) months (consecutive or
non-consecutive) during any Lease Year.
3.) Any notice of default is delivered by Landlord to Tenant pursuant to any
terms of the Lease.
This option applies in this instance only and is not to be construed as
approval for any future options. This option is personal to the Tenant and
is not transferable by Assignment, Sublease, death or sale of the
business, and shall be null and void in the event of any Assignment or
Sublease.
EXHIBIT C
The west half of the Southwest quarter of the Southeast quarter of the
southeast quarter of the southeast quarter of Section 22, Township 25
North, Range 5 East, W.M., in King County, Washington, except that portion
lying within Northeast 24th Street, and except the portion thereof
condemned by the state of Washington for highway purposes in King County
Superior Court No. 722411.
Exhibit B
Deleted
EXHIBIT A
14450 BLDG. - FIRST FLOOR PLAN
14450 N.E. 29th PL. Bellevue, WA
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N.T.S 11.195
CORPORATE ACKNOWLEDGEMENT:
State of )
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) ss.
County of )
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On this day of ________, l9 before me personally appeared _______________ to me known to be the ______________ of the corporation that executed the within and foregoing instrument, and acknowledged the same instrument to be the free and voluntary act and deed of said corporation, for the uses and purposes therein mentioned, and on oath stated that they were authorized to execute said instrument.
IN WITNESS WHEREOF , I have hereunto set my hand and affixed by official seal the day and year first written above.
Signature:
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Print Name:
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Notary Public in and for the
State of
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Residing in
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My appointment expires
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PARTNERSHIP ACKNOWLEDGEMENT:
State of )
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)ss. County of )
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On this ________ day of ___________, 19 before me personally appeared ________________ to me known to be the partner of _________________________ the partnership that executed the foregoing instrument, and acknowledged said instrument to be the free and voluntary act and deed of said partnership, for the uses and purposes therein mentioned, and on oath stated that is authorized on behalf of the partnership.
IN WITNESS WHEREOF, I have hereunto set my hand and affixed by official seal the day and year first written above.
Signature:
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Print Name:
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Notary Public in and for the
State of
-------------------------- Residing in
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My appointment expires
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INDIVIDUAL ACKNOWLEDGEMENT: State of )
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) ss. County of )
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On this _________ day of ____________, l9 before me personally appeared ______________________ to me known to be the indi ...
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