This Lease Agreement (“Lease”), dated as of September 7, 2006, is made and entered into by Christensen Holdings, L.P., a California limited partnership (“Landlord”), and Silicon Graphics, Inc., a Delaware corporation (“Tenant”).
1. Demise. In consideration of the rents and all other charges and payments payable by Tenant, and for the agreements, terms and conditions to be performed by Tenant in this Lease, LANDLORD DOES HEREBY LEASE TO TENANT, AND TENANT DOES HEREBY LEASE FROM LANDLORD, the Premises described below (the “Premises”), upon and subject to the agreements, terms and conditions of this Lease for the Term hereinafter stated.
2. Premises. The Premises demised by this Lease are approximately 128,154 rentable square feet of space, as shown on Exhibit A attached hereto, in that certain single-story building (“Building”) at 1140 - 1154 East Arques Avenue, Sunnyvale, California, together with the non-exclusive right to use (i) the Outside Areas (as defined below) of the Property (as defined below) to the extent set forth in Paragraph 43 below, and (ii) parking set forth in Paragraph 44 below in common with other tenants and occupants of the Property. The Building and the adjacent buildings commonly known as 1130, 1188 and 1198 East Arques Avenue (the “Adjacent Buildings”) constitute part of a larger office/research and development park commonly known as 1130-1198 East Arques, as more particularly shown on Exhibit B attached hereto, with a total building area of approximately 305,846 rentable square feet (collectively, the “Property”). The parties agree to the square footage figures set forth in this Paragraph 2 notwithstanding that the actual rentable square footage of the Premises (and the portions thereof) may be more or less than that specified.
(a) Commencement Date. The term of this Lease (“Term”) shall be sixty (60) months commencing on the Commencement Date (as defined below), unless sooner terminated and subject to any extensions granted hereunder. The “Commencement Date” of this Lease shall be the earlier of (i) substantial completion of the Tenant Improvements (as defined below) and the Additional Work (as defined below), and (ii) the date that Tenant commences occupancy and use of the Premises for the purpose of conducting Tenant’s business operations therein (the commencement of such occupancy and use shall be deemed to constitute “possession” for purposes of this Lease and Tenant shall not be deemed to be “in possession” of the Premises prior to the commencement of such occupancy and use). For purposes of this Lease, the date of “substantial completion” of the Tenant Improvements and Additional Work shall be the date that all of the following has occurred: (i) the Tenant Improvements and Additional Work are complete except for minor items of adjustment or repair of the type commonly found on an architect’s punchlist which would not materially interfere with Tenant’s use and enjoyment of the Premises for their intended purpose; (ii) the City of Sunnyvale has approved the Tenant Improvements and Additional Work in accordance with its building code, evidenced by its completion of a final inspection and written approval of such improvements as so completed in accordance with the building permit(s) issued for the Tenant Improvements and/or Additional Work. If the Commencement Date is other than the first day of a calendar month and/or if the expiration date of this Lease is other than the last day of a calendar month,