1 | ||
2 | ||
3 | ||
4 | ||
By: | JER Bayside Member, LLC, a Delaware limited liability company Its: Sole Member | ||
By: | TMG Bayside, LLC a Delaware limited liability company Its: Administrative Member | ||
By: | TMG Partners, a California corporation Its: Managing Member | ||
By: | /s/Lynn Tolin | ||
Its: | Lynn Tolin | ||
Date: | SVP | ||
SUBLESSOR: | |
DCG SYSTEMS, INC., | |
a Delaware corporation | |
By: | /s/ ISRAEL NIV |
Name: | ISRAEL NIV |
Title: | CEO |
SUBLESSEE: | |
QUANTENNA COMMUNICATIONS, INC., | |
a Delaware corporation | |
By: | /s/ Sam Heidari |
Name: | Sam Heidari |
Title: | CEO |
5 | ||
6 | ||

CSI CODE | ACTIVITY DESCRIPTION | ESTIMATE | ||||||
01 | GENERAL REQUIREMENTS | |||||||
1040 | PROJECT SUPERVISION | 1,800 | ||||||
1041 | PROJECT MANAGEMENT | 880 | ||||||
1520 | TEMPORARY CONSTRUCTION | 600 | ||||||
1742 | FINAL CLEANING | 375 | ||||||
02 | SITE WORK & DEMOLITION | |||||||
2050 | DEMOLITION | 750 | ||||||
08 | DOORS, WINDOWS, & OPENINGS | |||||||
8800 | GLASS DOORS | 4,223 | ||||||
09 | FINISHES | |||||||
9250 | DRYWALL & METAL FRAMING | 6,450 | ||||||
9650 | FLOOR COVERINGS | 304 | ||||||
9900 | PAINTING | 650 | ||||||
15 | MECHANICAL | |||||||
15500 | FIRE SPRINKLERS | 800 | ||||||
16 | ELECTRICAL | |||||||
16400 | ELECTRICAL SERVICE, DISTRIBUTION, & LIGHTING | 1,825 | ||||||
CONSTRUCTION SUBTOTAL | $ | 18,657 | ||||||
25100 | LIABILITY INSURANCE | 243 | ||||||
25200 | OVERHEAD & PROFIT | 1,890 | ||||||
PTOJECT TOTAL | $ | 20,789 | ||||||
TECHNICAL BUILDERS INC. | 3/19/2014 | PAGE 1 |
1.1. | Parties: This Sublease ("Sublease"), dated for reference purposes only March 18, 2014, is made by and between DCG Systems, Inc. ("Sublessor") and Quantenna Communications, Inc. ("Sublessee"),(collectively the "Parties", or individually a "Party"). |
1.2. | Premises: A portion of that certain real property, including all improvements therein, and commonly known by the street address of 3400 W Warren Ave, Fremont located in the County of Alameda, State of California and generally described as ±5,000 square feet in the Northwest area, designated on the attached floorplan ("Premises"). |
1.3. | Term: One (1) year and Five (5) months commencing May 1, 2014 ("Commencement Date") and ending September 30, 2015 ("Expiration Date"). |
1.4. | Base Rent: $4,250 (.85 NNN PSF) per month ("Base Rent"), payable on the first day of each month commencing May 1, 2014. |
1.5. | [intentionally deleted] |
1.6. | Rent and Other Monies Paid Upon Execution: |
a. | Monthly Expenses: |
i. | Base rent: $4,250.00 monthly. |
ii. | Net operating expenses of $1,400, calculated at the rate of $0.28 per square foot; and |
iii. | Utilities expenses of $1,500, calculated at the rate of $0.30 per square foot, |
iv. | Net operating expenses and utilities may be trued up to actual rates at the end of the lease if requested by either Sublessor or Sublessee |
b. | Gross monthly rent: $7,150 (the sum of the base rent and the other monthly expenses). |
c. | Security Deposit: $4,250.00 ("Security Deposit"). |
d. | Total due upon execution of this lease: $14,400, an amount which includes: the first month's rent, the Security Deposit, net expenses, electrical and HVAC expenses, and $3,000 deposit for wall removal. |
1.7. | Agreed Use: The Premises shall be used and occupied only for general office use and for related legally permissible use, and for no other purposes. |
1.8. | Real Estate Brokers: |
a. | Representation: CBRE ("Broker") represents both Sublessor and Sublessee ("Dual Agency"). |
b. | Payment to Brokers: No payment is due to Broker at any time for the brokerage services rendered by the Brokers. |
1.9. | Attachments. Attached hereto are the following, which shall be considered part of this Sublease: |
a. | Floorplan; |
b. | Contractor's bid; |
c. | A copy of the master lease and any and all amendments to such lease (collectively the "Master Lease"); and |
d. | An estimate of the net expenses and electrical usage to be paid monthly. |
1.10. | Additional Provisions. |
a. | Construction: Certain modifications will be made to the Premises (hereinafter referred to as the "Project"), including construction of a new wall(s) and cutting of a new door. |
i. | Each party will contribute the following amounts towards the Project: |
A. | Sublessee: $9,066. |
B. | Sublessor: $4,000. |
C. | Master Lessor: $7, 723. |
Page 1 | ||
ii. | Sublessor will submit $3,000 to the Master Lessor to be held in trust as a deposit towards removal of the wall(s) and sealing the door put in place by the Project, should removal be required by Maser Lessor at the end of the Term or upon termination of the Master Lease.1 |
iii. | Paint on the Sublessor's side of the new wall will match Sublessor's existing wall color. |
iv. | The Project will not establish any doors that allow Sublessee to access Sublessor's own premises. |
v. | If required by Sublessor, Sublessee will remove the door and reseal the Northwest wall at its own expense upon termination of this Sublease. |
vi. | If required by Sublessor, Sublessee will remove the wall or walls established during the Project at its own expense at the end of the Term. If Sublessor does not require wall removal, the $3,000 deposit will be returned to Sublessee. |
vii. | The Project will not be considered an Improvement under the Master Lease. |
viii. | Sublessee will be responsible for overseeing the Project and construction. |
A | Sublessee will ensure that all work is performed in a good and professional manner and so as not to interfere with the occupancy of the Sublessor. |
B. | At all times during the construction of the Project, Sublessee shall require all of Sublessee' s contractors, subcontractors, laborers, materialmen and suppliers to maintain adequate worker's compensation and general liability insurance. |
C. | Sublessee will keep the Project free from any liens arising out of work performed. |
b. | Security Access. Sublessee will establish its own, independent security system on the existing southwest door. |
c. | Lighting. Sublessee is responsible for the light bulbs in the Premises. |
d. | Mail and visitors. Sublessee will not receive mail or visitors at the address 3400 West Warren Avenue, Fremont, CA 94538. |
2.1. | Letting. Sublessor hereby subleases to Sublessee, and Sublessee hereby subleases from Sublessor, the Premises, for the term, at the rental, and upon all of the terms, covenants and conditions set forth in this Sublease. While the approximate square footage of the Premises may have been used in the marketing of the Premises for purposes of comparison, the Base Rent stated herein is NOT tied to square footage and is not subject to adjustment should the actual size be determined to be different. |
2.2. | Condition. Sublessor shall deliver the Premises to Sublessee broom clean and free of debris on the Commencement Date or the Early Possession Date, whichever first occurs ("Start Date"). Existing electrical, plumbing, fire sprinkler, lighting, heating, ventilating and air conditioning systems ("HV AC") are provided "as-is", and Sublessor makes no warranty as to their condition. Any repairs to HVAC shall be made at Sublessee's sole expense. |
2.3. | Acknowledgements. Sublessee acknowledges that: (a) it has been given an opportunity to inspect and measure the Premises, (b) it has been advised by Sublessor and/or Brokers to satisfy itself with respect to the size and condition of the Premises (including but not limited to the electrical, HVAC and fire sprinkler systems, security, environmental aspects, and compliance with Applicable Requirements and the Americans with Disabilities Act), and their suitability for Sublessee's intended use, (c) Sublessee has made such investigation as it deems necessary with reference to such matters and assumes all responsibility therefor as the same relate to its occupancy of the Premises, (d) it is not relying on any representation as to the size of the Premises made by Brokers or Sublessor, (e) the square footage of the Premises was not material to Sublessee's decision to sublease the Premises and pay the Rent stated herein, and (f) neither Sublessor, Sublessor's agents, nor Brokers have made any oral or written representations or warranties with respect to said matters other than as set forth in this Sublease. In addition, Sublessor acknowledges that: (i) Brokers have made no representations, promises or warranties concerning Sublessee's ability to |
Page 2 | ||
2.4. | Americans with Disabilities Act. In the event that as a result of Sublessee's use, or intended use, of the Premises the Americans with Disabilities Act or any similar law requires modifications or the construction or installation of improvements in or to the Premises, Building, Project and/or Common Areas, the Parties agree that such modifications, construction or improvements shall be made at Sublessee's expense. |
3.1. | Early Possession. Any provision herein granting Sublessee Early Possession of the Premises is subject to and conditioned upon the Premises being available for such possession prior to the Commencement Date. Any grant of Early Possession only conveys a non-exclusive right to occupy the Premises. If Sublessee totally or partially occupies the Premises prior to the Commencement Date, the obligation to pay Base Rent shall be abated for the period of such Early Possession. All other terms of this Sublease (including but not limited to the obligations to pay Sublessee's Share of Common Area Operating Expenses, Real Property Taxes and insurance premiums and to maintain the Premises) shall, however, be in effect during such period. Any such Early Possession shall not affect the Expiration Date. |
3.2. | Delay in Commencement. Sublessor agrees to use its best commercially reasonable efforts to deliver possession of the Premises by the Commencement Date. If, despite said efforts, Sublessor is unable to deliver possession as agreed, the rights and obligations of Sublessor and Sublessee shall be as set forth in Paragraph 3.3 of the Master Lease (as modified by Paragraph 6.3 of this Sublease). |
3.3. | Sublessee Compliance. Sublessor shall not be required to tender possession of the Premises to Sublessee until Sublessee complies with its obligation to provide evidence of insurance. Pending delivery of such evidence, Sublessee shall be required to perform all of its obligations under this Sublease from and after the Start Date, including the payment of Rent, notwithstanding Sublessor's election to withhold possession pending receipt of such evidence of insurance. Further, if Sublessee is required to perform any other conditions prior to or concurrent with the Start Date, the Start Date shall occur but Sublessor may elect to withhold possession until such conditions are satisfied. |
4.1. | Base Rent. Base Rent shall be payable in lawful money of the United States. One half of the Base Rent shall be payable to Master Lessor at the address stated herein and the other half shall be payable to Sublessor. Base Rent may be paybable to such other persons or at such other places as Sublessor or Master Lessor may designate in writing.2 |
4.2. | Net Operating Expenses. Net Operating expenses shall be payable to the Master Lessor in the same way as defined in 4.1 above. |
4.3. | Utilities. Utilities expenses shall be payble to the Sublessor. Sublessee shall pay for all water, gas, heat, light, power, telephone, trash disposal and other utilities and services supplied to the Premises, together with any taxes thereon. |
5. | Security Deposit. The rights and obligations of Sublessor and Sublessee as to said Security Deposit shall be as set forth in Paragraph 5 of the Master Lease (as modified by Paragraph 6.3 of this Sublease). |
6. | Master Lease. |
6.1. | Sublessor is the lessee of the Premises by virtue of the "Master Lease", wherein JER Bayside, LLC, a Delaware Limited liability Company, is the lessor, hereinafter the "Master Lessor". |
6.2. | This Sublease is and shall be at all times subject and subordinate to the Master Lease. |
6.3. | The terms, conditions and respective obligations of Sublessor and Sublessee to each other under this Sublease shall be the terms and conditions of the Master Lease except for those provisions of the Master Lease which are directly contradicted by this Sublease in which event the terms of this Sublease document shall control over the Master Lease. Therefore, for the purposes of this Sublease, wherever in the Master |
Page 3 | ||
6.4. | During the term of this Sublease and for all periods subsequent for obligations which have arisen prior to the termination of this Sublease, Sublessee does hereby expressly assume and agree to perform and comply with, for the benefit of Sublessor and Master Lessor, each and every obligation of Sublessor under the Master Lease except for the following paragraphs which are excluded therefrom: Article 2 in its entirety; 3.3; 4.6; 5.l(B); 5.l(C); 5.2(B); 5.2(D); 6.3; Article 7 in its entirety; Article 10 in its entirety; 13.12(C)(2); 12.12(C)(3); and Exhibit E. |
6.5. | The obligations that Sublessee has assumed under paragraph 6.4 hereof are hereinafter referred to as the "Sublessee's Assumed Obligations". The obligations that Sublessee has not assumed under paragraph 6.4 hereof are hereinafter referred to as the "Sublessor's Remaining Obligations". |
6.6. | Sublessee shall hold Sublessor free and harmless from all liability, judgments, costs, damages, claims or demands, including reasonable attorneys fees, arising out of Sublessee's failure to comply with or perform Sublessee's Assumed Obligations. |
6.7. | Sublessor agrees to maintain the Master Lease during the entire term of this Sublease, subject, however, to any earlier termination of the Master Lease without the fault of the Sublessor, and to comply with or perform Sublessor's Remaining Obligations and to hold Sublessee free and harmless from all liability, judgments, costs, damages, claims or demands arising out of Sublessor's failure to comply with or perform Sublessor's Remaining Obligations. |
6.8. | Sublessor represents to Sublessee that the Master Lease is in full force and effect and that no default exists on the part of any Party to the Master Lease. |
7. | Assignment of Sublease and Default. |
7.1. | Sublessor hereby assigns and transfers to Master Lessor Sublessor's interest in this Sublease, subject however to the provisions of Paragraph 8.2 hereof. |
7.2. | Master Lessor, by executing this document, agrees that until a Default shall occur in the performance of Sublessor's Obligations under the Master Lease, that Sublessor may receive, collect and enjoy the Rent accruing under this Sublease. However, if Sublessor shall Default in the performance of its obligations to Master Lessor then Master Lessor may, at its option, receive and collect, directly from Sublessee, all Rent owing and to be owed under this Sublease. In the event, however, that the amount collected by Master Lessor exceeds Sublessor's obligations any such excess shall be refunded to Sublessor. Master Lessor shall not, by reason of this assignment of the Sublease nor by reason of the collection of the Rent from the Sublessee, be deemed liable to Sublessee for any failure of the Sublessor to perform and comply with Sublessor's Remaining Obligations. |
7.3. | Sublessor hereby irrevocably authorizes and directs Sublessee upon receipt of any written notice from the Master Lessor stating that a Default exists in the performance of Sublessor's obligations under the Master Lease, to pay to Master Lessor the Rent due and to become due under the Sublease. Sublessor agrees that Sublessee shall have the right to rely upon any such statement and request from Master Lessor, and that Sublessee shall pay such Rent to Master Lessor without any obligation or right to inquire as to whether such Default exists and notwithstanding any notice from or claim from Sublessor to the contrary and Sublessor shall have no right or claim against Sublessee for any such Rent so paid by Sublessee. |
7.4. | No changes or modifications shall be made to this Sublease without the consent of Master Lessor. |
8. | Consent of Master Lessor. |
8.1. | In the event that the Master Lease requires that Sublessor obtain the consent of Master Lessor to any subletting by Sublessor then, this Sublease shall not be effective unless, within 10 days of the date hereof, Master Lessor signs this Sublease thereby giving its consent to this Subletting. |
8.2. | In the event that the obligations of the Sublessor under the Master Lease have been guaranteed by third parties then neither this Sublease, nor the Master Lessor's consent, shall be effective unless, within 10 days of the date hereof, said guarantors sign this Sublease thereby giving their consent to this Sublease. |
8.3. | In the event that Master Lessor does give such consent then: |
Page 4 | ||
a. | Such consent shall not release Sublessor of its obligations or alter the primary liability of Sublessor to pay the Rent and perform and comply with all of the obligations of Sublessor to be performed under the Master Lease. |
b. | The acceptance of Rent by Master Lessor from Sublessee or anyone else liable under the Master Lease shall not be deemed a waiver by Master Lessor of any provisions of the Master Lease. |
c. | The consent to this Sublease shall not constitute a consent to any subsequent subletting or assignment. |
d. | In the event of any Default of Sublessor under the Master Lease, Master Lessor may proceed directly against Sublessor, any guarantors or anyone else liable under the Master Lease or this Sublease without first exhausting Master Lessor's remedies against any other person or entity liable thereon to Master Lessor. |
e. | Master Lessor may consent to subsequent sublettings and assignments of the Master Lease or this Sublease or any amendments or modifications thereto without notifying Sublessor or anyone else liable under the Master Lease and without obtaining their consent and such action shall not relieve such persons from liability. |
f. | In the event that Sublessor shall Default in its obligations under the Master Lease, then Master Lessor, at its option and without being obligated to do so, may require Sublessee to attorn to Master Lessor in which event Master Lessor shall undertake the obligations of Sublessor under this Sublease from the time of the exercise of said option to termination of this Sublease but Master Lessor shall not be liable for any prepaid Rent nor any Security Deposit paid by Sublessee, nor shall Master Lessor be liable for any other Defaults of the Sublessor under the Sublease. |
g. | Unless directly contradicted by other provisions of this Sublease, the consent of Master Lessor to this Sublease shall not constitute an agreement to allow Sublessee to exercise any options which may have been granted to Sublessor in the Master Lease. |
8.4. | The signatures of the Master Lessor and any Guarantors of Sublessor at the end of this document shall constitute their consent to the terms of this Sublease and Sublessor's authority to sublet the Premises defined herein. |
8.5. | Master Lessor acknowledges that, to the best of Master Lessor's knowledge, no Default presently exists under the Master Lease of obligations to be performed by Sublessor and that the Master Lease is in full force and effect. Master Lessor hereby waives any modification necessary under the Master Lease regarding Sublessor's title to such Premises during the terms of this Sublease. |
8.6. | In the event that Sublessor Defaults under its obligations to be performed under the Master Lease by Sublessor, Master Lessor agrees to deliver to Sublessee a copy of any such notice of default. Sublessee shall have the right to cure any Default of Sublessor described in any notice of default within ten days after service of such notice of default on Sublessee. If such Default is cured by Sublessee then Sublessee shall have the right of reimbursement and offset from and against Sublessor. |
9. | [Intentionally Deleted] |
10. | Representations and Indemnities of Broker Relationships. The Parties each represent and warrant to the other that it has had no dealings with any person, firm, broker or finder (other than the Brokers, if any) in connection with this Sublease, and that no one other than said named Brokers is entitled to any commission or finder's fee in connection herewith. Sublessee and Sublessor do each hereby agree to indemnify, protect, defend and hold the other harmless from and against liability for compensation or charges which may be claimed by any such unnamed broker, finder or other similar party by reason of any dealings or actions of the indemnifying Party, including any costs, expenses, attorneys' fees reasonably incurred with respect thereto. |
11. | Attorney's fees. If any Party or Broker brings an action or proceeding involving the Premises whether founded in tort, contract or equity, or to declare rights hereunder, the Prevailing Party (as hereafter defined) in any such proceeding, action, or appeal thereon, shall be entitled to reasonable attorneys' fees. Such fees may be awarded in the same suit or recovered in a separate suit, whether or not such action or proceeding is pursued to decision or judgment. The term, "Prevailing Party" shall include, without limitation, a Party or Broker who substantially obtains or defeats the relief sought, as the case may be, whether by compromise, settlement, judgment, or the abandonment by the other Party or Broker of its claim or defense. The attorneys' fees award shall not be |
Page 5 | ||
12. | No Prior or Other Agreements; Broker Disclaimer. This Sublease contains all agreements between the Parties with respect to any matter mentioned herein, and no other prior or contemporaneous agreement or understanding shall be effective. Sublessor and Sublessee each represents and warrants to the Brokers that it has made, and is relying solely upon, its own investigation as to the nature, quality, character and financial responsibility of the other Party to this Sublease and as to the use, nature, quality and character of the Premises. Brokers have no responsibility with respect thereto or with respect to any default or breach hereof by either Party. The liability (including court costs and attorneys' fees), of any Broker with respect to negotiation, execution, delivery or performance by either Sublessor or Sublessee under this Sublease or any amendment or modification hereto shall be limited to an amount up to the fee received by such Broker pursuant to this Sublease; provided, however, that the foregoing limitation on each Broker's liability shall not be applicable to any gross negligence or willful misconduct of such Broker. |
Page 6 | ||
By Sublessor: | By Sublessee: | ||
DCG Systems, Inc., | Quantenna Communications, Inc. | ||
3400 West Warren Ave. | 3450 West Warren Ave. | ||
Fremont, CA 94538 | Fremont, CA 94538 | ||
Date: | 3/26/2014 | Date: | 3/24/14 |
Signature: | /s/ Israel Niv | Signature: | /s/ Sam Heidari |
Name & Title: | Israel Niv, CEO | Name & Title: | Sam Heidari, CEO |
Telephone: | (510) 897-6800 | Telephone: | (510) 743-2264 |
Representative Name & Email: | Representative Name & Email: | ||
Bob Connors, bob_connors@dcgsystems.com | Diane Krzysik, diane@quantenna.com | ||
By Broker: | |||
CBRE, Inc. | |||
225 W. Santa Clara St, San Jose, CA | |||
Telephone: | (408) 453-7417 | ||
Date: | 3/27/14 | ||
Signature: | /s/ Christopher Shepherd | ||
Name & Title: Thomas Taylor/Christopher | |||
Shepherd/Matthew Taylor Executive Vice President/First Vice President/ Associate | |||
Email: thomas.taylor@cbre.com/ | |||
christopher.shepherd@cbre.com/ | |||
matthew.taylor@cbre.com | |||
Federal ID No. Broker/Agent DRE License#: | |||
00944083/ 17007888/Broker/Agent DRE License#: 00944083/ 17007888/01897355 01897355 | |||
Consent to the above Sublease is hereby given: | SEE LANDLORDS CONSENT AND AGREEMENT DATED MARCH 18, 2014 | ||
By Master Lessor: | |||
JER Bayside Member, LLC. | |||
Signature: | |||
Date: | |||
Name & Title: | |||
Telephone: | |||
Representative Name & Email: | |||
Page 7 | ||


CSI CODE | ACTIVITY DESCRIPTION | ESTIMATE | ||||||
01 | GENERAL REQUIREMENTS | |||||||
1040 | PROJECT SUPERVISION | 1,800 | ||||||
1041 | PROJECT MANAGEMENT | 880 | ||||||
1520 | TEMPORARY CONSTRUCTION | 600 | ||||||
1742 | FINAL CLEANING | 375 | ||||||
02 | SITE WORK & DEMOLITION | |||||||
2050 | DEMOLITION | 750 | ||||||
08 | DOORS, WINDOWS, & OPENINGS | |||||||
8800 | GLASS DOORS | 4,223 | ||||||
09 | FINISHES | |||||||
9250 | DRYWALL & METAL FRAMING | 6,450 | ||||||
9650 | FLOOR COVERINGS | 304 | ||||||
9900 | PAINTING | 650 | ||||||
15 | MECHANICAL | |||||||
15500 | FIRE SPRINKLERS | 800 | ||||||
16 | ELECTRICAL | |||||||
16400 | ELECTRICAL SERVICE, DISTRIBUTION, & LIGHTING | 1,825 | ||||||
CONSTRUCTION SUBTOTAL | $ | 18,657 | ||||||
25100 | LIABILITY INSURANCE | 243 | ||||||
25200 | OVERHEAD & PROFIT | 1,890 | ||||||
PTOJECT TOTAL | $ | 20,789 | ||||||
TECHNICAL BUILDERS INC. | 3/19/2014 | PAGE 1 |
1. | Basic Provisions ("Basic Provisions"). |
1.1. | Parties: This Second Sublease ("Second Sublease"), dated for reference purposes only June 8, 2015, is made by and between DCG Systems, Inc. ("Sublessor") and Quantenna Communications, Inc. ("Sublessee"), (collectively the "Parties", or individually a "Party"). |
1.2. | Previous Sublease. Whereas, the Parties executed a sublease dated March 18, 2014, for subtenancy of the Premises from May 1, 2014 and ending September 30, 2015 ("First Sublease"). |
1.3. | Premises: A portion of that certain real property, including all improvements therein, and commonly known by the street address of 3400 W Warren Ave, Fremont located in the County of Alameda, State of California and generally described as ±5,000 square feet in the Northwest area, designated on the attached floorplan ("Premises"). |
1.4. | Term: Thirty-six (36) months commencing October 1, 2015 ("Commencement Date") and ending September 30, 2018 ("Expiration Date"), subject to early termination at any time (without penalty, other than apportionment of applicable monthly expenses through the termination date) upon at least six (6) months prior notice. |
1.5. | Base Rent: $4,675.00 (0.935 NNN psf) per month ("Base Rent"), payable on the first day of each month commencing October 1, 2015, subject to adjustment as noted below. Rent and Other Monies Paid Upon Execution: |
i. | Base rent: $4,675.00 monthly. The base rent shall be adjusted to $4,908.75 per month commencing October 1, 2016 through September 30, 2017. The base rent shall be further adjusted to $5,154.19 per month commencing October I, 2017 through September 30, 2018. |
ii. | Net operating expenses of $1,400, calculated at the rate of $0.28 per square foot; and |
iii. | Utilities expenses of $1,500, calculated at the rate of $0.30 per square foot, |
iv. | Net operating expenses and utilities may be trued up to actual rates at the end of the lease if requested by either Sublessor or Sublessee. |
b. | Gross monthly rent: $7,575.00 (the sum of the base rent and the other monthly expenses). |
c. | Security Deposit: Sublessee submitted a security deposit of $4,250.00 ("Security Deposit") for the First Sublease, which amount will be applied towards the Second Sublease. No additional security deposit is required for the Second Sublease. |
1.6. | Agreed Use: The Premises shall be used and occupied only for general office use and for related legally permissible use, and for no other purposes. |
1.7. | Real Estate Brokers: |
a. | No real estate broker was used for this Second Sublease. |
1.8. | Attachments. Attached hereto are the following, which shall be considered part of this Second Sublease: |
a | Floorplan; |
b. | A copy of the master lease and any and all amendments to such lease (collectively the "Master Lease"); and |
c. | An estimate of the net expenses and electrical usage to be paid monthly. |
1.9. | Additional Provisions. |
a. | Construction: Sublessee was permitted to make certain modifications to the Premises under the First Sublease, including construction of a new wall and cutting of a new door (hereinafter referred to as the "Project"). |
i. | Under the First Sublease, Sublessor submitted $3,000 to the Master Lessor to be held in trust as a deposit towards removal of the wall(s) and sealing the door put in place by the Project, should removal be required by Master Lessor at the end of the Term or upon termination of the Master Lease. |
ii. | If required by Sublessor, Sublessee will remove the door and reseal the Northwest wall at its own expense upon termination of this Second Sublease. |
Page 1 | ||
iii. | If required by Sublessor, Sublessee will remove the wall or walls established during the Project at its own expense at the end of the Term, subject to contribution of $3,000 by Master Lessor in accordance with Section 16(b) of Landlord's Consent and Agreement (Sublease) dated March 18, 2014. If Sublessor does not require wall removal, the $3,000 deposit will be returned to Sublessee. |
iv. | The Project will not be considered an Improvement under the Master Lease. |
b. | Security Access. Sublessee will establish its own, independent security system on the existing southwest door. |
c. | Lighting. Sublessee is responsible for the light bulbs in the Premises. |
d. | Mail and visitors. Sublessee will not receive mail or visitors at the address 3400 West Warren Avenue, Fremont, CA 94538. |
2. | Premises. |
2.1. | Letting. Sublessor hereby subleases to Sublessee, and Sublessee hereby subleases from Sublessor, the Premises, for the term, at the rental, and upon all of the terms, covenants and conditions set forth in this Second Sublease. While the approximate square footage of the Premises may have been used in the marketing of the Premises for purposes of comparison, the Base Rent stated herein is NOT tied to square footage and is not subject to adjustment should the actual size be determined to be different |
2.2. | Condition. Existing electrical, plumbing, fire sprinkler, lighting, heating, ventilating and air conditioning systems ("HVAC") are provided "as-is", and Sublessor makes no warranty as to their condition. Any repairs to HVAC shall be made at Sublessee 's sole expense. |
2.3. | Acknowledgments. Sublessee acknowledges that: (a) it has been given an opportunity to inspect and measure the Premises, (b) it has been advised by Sublessor and/or brokers to satisfy itself with respect to the size and condition of the Premises (including but not limited to the electrical, HVAC and fire sprinkler systems, security, environmental aspects, and compliance with Applicable Requirements and the Americans with Disabilities Act), and their suitability for Sublessee's intended use, (c) Sublessee has made such investigation as it deems necessary with reference to such matters and assumes all responsibility therefor as the same relate to its occupancy of the Premises, (d) it is not relying on any representation as to the size of the Premises made by brokers or Sublessor, (e) the square footage of the Premises was not material to Sublessee's decision to sublease the Premises and pay the Rent stated herein, and (f) neither Sublessor, Sublessor's agents, nor brokers have made any oral or written representations or warranties with respect to said matters other than as set forth in this Second Sublease. In addition, Sublessor acknowledges that: (i) brokers have made no representations, promises or warranties concerning Sublessee's ability to honor the Second Sublease or suitability to occupy the Premises, and (ii) it is Sublessor's sole responsibility to investigate the financial capability and/or suitability of all proposed tenants. |
2.4. | Americans with Disabilities Act. In the event that as a result of Sublessee's use, or intended use, of the Premises the Americans with Disabilities Act or any similar law requires modifications or the construction or installation of improvements in or to the Premises, Building, Project and/or Common Areas, the Parties agree that such modifications, construction or improvements shall be made at Sublessee's expense. |
3. | Possession. Sublessee is already in possession of the premises under the First Sublease and such possession shall continue under the Second Sublease. |
3.1. | Sublessee shall be required to perform all of its obligations under this Second Sublease from and after the Start Date, including the payment of Rent. |
4. | Payment of Rent and Other Charges. |
4.1. | Base Rent. Base Rent shall be payable in lawful money of the United States. Base Rent may be payable to such other persons or at such other places as Sublessor may designate in writing. |
4.2. | Net Operating Expenses. Net Operating expenses shall be payable to Sublessor in the same way as defined in 4.1 above. |
4.3. | Utilities. Utilities expenses shall be payable to the Sublessor. Sublessee shall pay for all water, gas, heat, light, power, telephone, trash disposal and other utilities and services supplied to the Premises, together with any taxes thereon. |
Page 2 | ||
5. | Security Deposit. The rights and obligations of Sublessor and Sublessee as to said Security Deposit shall be as set forth in Paragraph 3.7 of the Master Lease (as modified by Paragraph 6.3 of this Second Sublease). |
6. | Master Lease. |
6.1. | Sublessor is the lessee of the Premises by virtue of the "Master Lease", wherein BTP Investors, LLC, hereinafter the "Master Lessor", is the lessor by way of assignment by JER Bayside, LLC. |
6.2. | This Second Sublease is and shall be at all times subject and subordinate to the Master Lease. |
6.3. | The terms, conditions and respective obligations of Sublessor and Sublessee to each other under this Second Sublease shall be the terms and conditions of the Master Lease except for those provisions of the Master Lease which are directly contradicted by this Second Sublease in which event the terms of this Second Sublease document shall control over the Master Lease. Therefore, for the purposes of this Second Sublease, wherever in the Master Lease the word "Landlord" is used it shall be deemed to mean the Sublessor herein and wherever in the Master Lease the word "Tenant" is used it shall be deemed to mean the Sublessee herein. |
6.4. | During the term of this Second Sublease and for all periods subsequent for obligations which have arisen prior to the termination of this Second Sublease, Sublessee does hereby expressly assume and agree to perform and comply with, for the benefit of Sublessor and Master Lessor, each and every obligation of Sublessor under the Master Lease except for the following paragraphs which are excluded therefrom: Article 2 in its entirety; 3.3; 4.6; 5.l(B); 5.l(C); 5.2(B); 5.2(D); 6.3; Article 7 in its entirety; Article 10 in its entirety; l3.12(C)(2); 13.12(C)(3); and Exhibit E. |
6.5. | The obligations that Sublessee has assumed under paragraph 6.4 hereof are hereinafter referred to as the "Sublessee's Assumed Obligations". The obligations that Sublessee has not assumed under paragraph 6.4 hereof are hereinafter referred to as the "Sublessor's Remaining Obligations". |
6.6. | Sublessee shall hold Sublessor free and harmless from all liability, judgments, costs, damages, claims or demands, including reasonable attorneys fees, arising out of Sublessee's failure to comply with or perform Sublessee's Assumed Obligations. |
6.7. | Sublessor agrees to maintain the Master Lease during the entire term of this Second Sublease, subject, however, to any earlier termination of the Master Lease without the fault of the Sublessor, and to comply with or perform Sublessor's Remaining Obligations and to hold Sublessee free and harmless from all liability, judgments, costs, damages, claims or demands arising out of Sublessor's failure to comply with or perform Sublessor's Remaining Obligations. |
6.8. | Sublessor represents to Sublessee that the Master Lease is in full force and effect and that no default exists on the part of any Party to the Master Lease. |
7. | Assignment of Second Sublease and Default. |
7.1. | Master Lessor, by executing this document, agrees that until a Default shall occur in the performance of Sublessor's Obligations under the Master Lease, that Sublessor may receive, collect and enjoy the Rent accruing under this Second Sublease. However, if Sublessor shall Default in the performance of its obligations to Master Lessor then Master Lessor may, at its option, receive and collect, directly from Sublessee, all Rent owing and to be owed under this Second Sublease. In the event, however, that the amount collected by Master Lessor exceeds Sublessor's obligations any such excess shall be refunded to Sublessor. Master Lessor shall not, by reason of this assignment of the Second Sublease nor by reason of the collection of the Rent from the Sublessee, be deemed liable to Sublessee for any failure of the Sublessor to perform and comply with Sublessor's Remaining Obligations. |
7 .2. | Sublessor hereby irrevocably authorizes and directs Sublessee upon receipt of any written notice from the Master Lessor stating that a Default exists in the performance of Sublessor's obligations under the Master Lease, to pay to Master Lessor the Rent due and to become due under the Second Sublease. Sublessor agrees that Sublessee shall have the right to rely upon any such statement and request from Master Lessor, and that Sublessee shall pay such Rent to Master Lessor without any obligation or right to inquire as to whether such Default exists and notwithstanding any notice from or claim from Sublessor to the contrary and Sublessor shall have no right or claim against Sublessee for any such Rent so paid by Sublessee. |
7.3. | No changes or modifications shall be made to this Second Sublease without the consent of Master Lessor. |
Page 3 | ||
8. | Consent of Master Lessor. |
8.1. | In the event that the Master Lease requires that Sublessor obtain the consent of Master Lessor to any subletting by Sublessor then, this Second Sublease shall not be effective unless, within 10 days of the date hereof, Master Lessor signs this Second Sublease thereby giving its consent to this Subletting. |
8.2. | In the event that the obligations of the Sublessor under the Master Lease have been guaranteed by third parties then neither this Second Sublease, nor the Master Lessor's consent, shall be effective unless, within 10 days of the date hereof, said guarantors sign this Second Sublease thereby giving their consent to this Second Sublease. |
8.3. | In the event that Master Lessor does give such consent then: |
a. | Such consent shall not release Sublessor of its obligations or alter the primary liability of Sublessor to pay the Rent and perform and comply with all of the obligations of Sublessor to be performed under the Master Lease. |
b. | The acceptance of Rent by Master Lessor from Sublessee or anyone else liable under the Master Lease shall not be deemed a waiver by Master Lessor of any provisions of the Master Lease. |
c. | The consent to this Second Sublease shall not constitute a consent to any subsequent subletting or assignment. |
d. | In the event of any Default of Sublessor under the Master Lease, Master Lessor may proceed directly against Sublessor, any guarantors or anyone else liable under the Master Lease or this Second Sublease without first exhausting Master Lessor's remedies against any other person or entity liable thereon to Master Lessor. |
e. | Master Lessor may consent to subsequent sublettings and assignments of the Master Lease or this Second Sublease or any amendments or modifications thereto without notifying Sublessor or anyone else liable under the Master Lease and without obtaining their consent and such action shall not relieve such persons from liability. |
f. | In the event that Sublessor shall Default in its obligations under the Master Lease, then Master Lessor, at its option and without being obligated to do so, may require Sublessee to attorn to Master Lessor in which event Master Lessor shall undertake the obligations of Sublessor under this Second Sublease from the time of the exercise of said option to termination of this Second Sublease but Master Lessor shall not be liable for any prepaid Rent nor any Security Deposit paid by Sublessee, nor shall Master Lessor be liable for any other Defaults of the Sublessor under the Second Sublease. |
g. | Unless directly contradicted by other provisions of this Second Sublease, the consent of Master Lessor to this Second Sublease shall not constitute an agreement to allow Sublessee to exercise any options which may have been granted to Sublessor in the Master Lease. |
8.4. | The signatures of the Master Lessor and any Guarantors of Sublessor at the end of this document shall constitute their consent to the terms of this Second Sublease and Sublessor's authority to sublet the Premises defined herein. |
8.5. | Master Lessor acknowledges that, to the best of Master Lessor's knowledge, no Default presently exists under the Master Lease of obligations to be performed by Sublessor and that the Master Lease is in full force and effect. Master Lessor hereby waives any modification necessary under the Master Lease regarding Sublessor's title to such Premises during the terms of this Second Sublease. |
8.6. | In the event that Sublessor Defaults under its obligations to be performed under the Master Lease by Sublessor, Master Lessor agrees to deliver to Sublessee a copy of any such notice of default. Sublessee shall have the right to cure any Default of Sublessor described in any notice of default within ten days after service of such notice of default on Sublessee. If such Default is cured by Sublessee then Sublessee shall have the right of reimbursement and offset from and against Sublessor. |
9. | Representations and Indemnities of Broker Relationships. The Parties each represent and warrant to the other that it has had no dealings with any person, firm, broker or finder in connection with this Second Sublease, and that no brokers is entitled to any commission or finder's fee in connection herewith. Sublessee and Sublessor do each hereby agree to indemnify, protect, defend and hold the other harmless from and against liability for compensation or charges which may be claimed by any such unnamed broker, finder or other |
Page 4 | ||
10. | Attorney's fees. If any Party brings an action or proceeding involving the Premises whether founded in tort, contract or equity, or to declare rights hereunder, the Prevailing Party (as hereafter defined) in any such proceeding, action, or appeal thereon, shall be entitled to reasonable attorneys' fees. Such fees may be awarded in the same suit or recovered in a separate suit, whether or not such action or proceeding is pursued to decision or judgment. The term, "Prevailing Party" shall include, without limitation, a Party who substantially obtains or defeats the relief sought, as the case may be, whether by compromise, settlement, judgment, or the abandonment by the other Party of its claim or defense. The attorneys' fees award shall not be computed in accordance with any court fee schedule, but shall be such as to fully reimburse all attorneys' fees reasonably incurred. In addition, Sublessor shall be entitled to attorneys' fees, costs and expenses incurred in the preparation and service of notices of Default and consultations in connection therewith, whether or not a legal action is subsequently commenced in connection with such Default or resulting Breach ($200 is a reasonable minimum per occurrence for such services and consultation). |
11. | No Prior or Other Agreements; Broker Disclaimer. This Second Sublease contains all agreements between the Parties with respect to any matter mentioned herein, and no other prior or contemporaneous agreement or understanding shall be effective. Sublessor and Sublessee each represents and warrants to the brokers that it has made, and is relying solely upon, its own investigation as to the nature, quality, character and financial responsibility of the other Party to this Second Sublease and as to the use, nature, quality and character of the Premises. The brokers have no responsibility with respect thereto or with respect to any default or breach hereof by either Party. The liability (including court costs and attorneys' fees), of any Broker with respect to negotiation, execution, delivery or performance by either Sublessor or Sublessee under this Second Sublease or any amendment or modification hereto shall be limited to an amount up to the fee received by such Broker pursuant to this Second Sublease; provided, however, that the foregoing limitation on each Broker's liability shall not be applicable to any gross negligence or willful misconduct of such Broker. |
By Sublessor: | By Sublessee: | ||
DCG Systems, Inc., | Quantenna Communications, Inc. | ||
3400 West Warren Ave. | 3450 West Warren Ave. | ||
Fremont, CA 94538 | Fremont, CA 94538 | ||
Date: | 7/15/2015 | Date: | 7/15/2015 |
Signature: | /s/ Israel Niv | Signature: | /s/ Tom MacMitchell |
Name & Title: | Israel Niv, CEO | Name & Title: | Tom MacMitchell, General Counsel |
Telephone: | (510) 897-6800 | Telephone: | (510) 743-2260 |
Representative Name & Email: | Representative Name & Email: | ||
Bob Connors, bob_connors@dcgsystems.com | Tom MacMitchell, tmacmitchell@quantenna.com | ||
Consent to the above Sublease is hereby given: | |||
By Master Lessor: | |||
BTP Investors, LLC | |||
By: Vectra Management Group, Inc., its agent | |||
Signature: | /s/ Raju L. Shah | ||
Name & Title: | Raju L. Shah, Managing Director | Representative Name & Email: | |
Date: | 7/22/2015 | Bryan Barnes, bbarnes@vectra.com | |
Page 5 | ||