California-Brisbane-400 Valley Drive (Brisbane, CA) Lease Agreement [Amendment No. 1] - Far Western Land and Investment Co. Inc. and bebe stores inc.
AMENDMENT NO. 1
TO LEASE AGREEMENT
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Owner: Far Western Land and Investment Company, Inc., a California
Corporation
Tenant: bebe stores, inc., a California Corporation
Premises: 400 Valley Drive, Brisbane, California
Date: September 11, 2000
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This Amendment No. 1, is made on September 11, 2000 by and between Far
Western Land and Investment Company, Inc., a California Corporation (the
"Lessor") and bebe stores, inc., a California Corporation (the "Lessee").
RECITALS
Whereas Far Western Land and Investment Company, Inc. (as the "Lessor") and
bebe stores, inc. (as the "Lessee") entered into that certain Lease Agreement
and Addendum 1 dated November 30, 1998 (the "Lease"), for the premises (the
"Premises") described as the 34,725+ square feet of warehouse space located at
400 Valley Drive, Brisbane, California;
Whereas, conditioned on the City of Brisbane permitting Lessee to expand the
Premises to allow for additional office space, Lessor and Lessee desire to amend
certain terms and conditions of the Lease;
AGREEMENT
Now, therefore, in consideration of their mutual promises, the parties
hereto agree as follows:
1. Term:
Paragraph 1, Subparagraph 1.3 of the Lease is modified as follows: the
term of the Lease is twelve (12) years beginning upon the earlier of
occupancy of the new buildout or receipt of certificate of occupancy
from the City of Brisbane which shall be the Lease "Occupancy Date";
2. Rental Schedule:
Paragraph 49 of First Amendment to Lease Agreement is modified as
follows:
Commencing on the Occupancy Date the monthly rent shall be $26,000.
Beginning on the start of the 2nd anniversary of the Occupancy Date and
each year thereafter during the lease term, rent shall increase annually
by the increase in the Consumer Price Index ("CPI") All Urban Consumers:
San Francisco--Oakland--San Jose with minimum two percent (2%) increase
and maximum four percent (4%) increases.
Monthly base rent shall also increase by the additional amount of
$2,500.00 at the start of the seventh year of the lease term.
3. Tenant Improvements:
A. Lessee, at Lessee's sole cost and expense, will make further tenant
improvements to the Premises, subject to review and approval of plans
by Owner, such approval not to be unreasonably withheld or delayed
("Tenant Improvements").
B. Lessee upon Lessor's request, shall be responsible to remove any
additional new office space built by Lessee beyond the buildout
approved in the initial lease unless Lessee exercises its option as
set forth in Paragraph 51 of Addendum No. 1 and modified in Amendment
No. 1;
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C. Lessor reserves the right to file a notice of non-responsibility
regarding any tenant improvement work at Premises.
4. Option to Extend:
Addendum No. 1, Paragraph 51, shall be changed as follows:
a) Line four (4), change May 1, 2006 to the first day of the month
following lease expiration;
b) Line six (6) and line seven (7), change April 30, 2006 to date of
lease expiration.
5. First Right of Refusal:
Lessee shall have the First Right of Refusal to purchase the Premises at
the then fair market value if Owner decides to sell property.
6. Controlling Investment:
In the event of any conflict between the provisions of the Lease and
Addendum, and this Amendment No. 1, the Amendment No. 1 shall control.
Except as set forth in the Amendment No. 1 all terms and conditions of
the Lease and Amendment shall remain unchanged and in full force and
effect.
7. Net Charges:
Paragraph 52 of Addendum No. 1 to Lease dated November 30, 1998 is
replaced by the following:
Lessee shall receive real estate property tax bill and pay directly and
send notice of payment to Lessor. Lessee shall also be responsible for
HVAC maintenance, repair and replacement. Upon termination of Lease,
HVAC will be left in good working order and repair. Lessee shall pay in
addition to all rent and related charges to be paid by Lessee under this
Lease, to Lessor on a monthly basis an amount equal to $0.032 p.s.f. for
the net charges that include insurance, roof, parking and truck yard,
and miscellaneous building maintenance.
8. Condition Precedent:
If the City of Brisbane does not issue a building permit to Lessee
allowing Lessee to make tenant improvements Lessee deems acceptable, in
its sole discretion, then this Amendment No.1 shall be void, and all
rights granted by this Amendment No.1 shall be mutually terminated and
forfeited by both parties, and the Lease shall remain unchanged and in
full force and effect.
In Witness Whereof, the parties have caused their instrument to be properly
executed by their duly authorized representatives as of the day and year
first written above.
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LESSOR: LESSEE:
Far Western Land and Investment Company, bebe stores, inc., a California
Inc., a California Corporation Corporation
By: /s/ GEOFFREY A. FARRAR By: /s/ MANNY MASHOUF
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Geoffrey A. Farrar Manny Mashouf
Its: President Its: President and CEO
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Date: 9-14-00 By: /s/ BLAIR LAMBERT
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Blair Lambert
Its: CFO
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Date: 9-11-00
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