FIRST AMENDMENT TO LEASE
This First Amendment to Lease ("Agreement") is made and entered into
as of September 18, 2002, by and between Glenborough Fund IX, LLC, a Delaware
limited liability company ("Landlord") and NVE Corporation, a Minnesota
corporation ("Tenant").
R E C I T A L S
This Agreement is made with reference to the following facts and
objectives:
A. By Lease and Addendum to Lease by and between Glenborough
Properties, L.P., a California limited partnership, ("GPLP") and Nonvolatile
Electronics, Inc., a Minnesota corporation, dated as of October 1, 1998,
(together, the "Lease") Tenant leased the Premises depicted in Exhibit "A" to
the Lease and described in Sections 1., 2.13., and 2.14. as Unit 4 deemed to
contain approximately 12,832 square feet of Usable Area located at 11405-11411
Valley View Road, Eden Prairie, Minnesota, in the Project known as Bryant Lake
Business Center - Phase III. The actual mailing address for the Premises is
11405 Valley View Road, Eden Prairie, Minnesota, and Unit 4 is currently
referred to by the parties as Suites 11405, 11409, and 11411.
B. Landlord has succeeded to the interests of GPLP in the Lease and in
the Premises. Tenant has succeeded to the interests and obligations of
Nonvolatile Electronics, Inc., in the Lease and in the Premises, by way of
corporate merger.
C. Landlord and Tenant desire to expand the Premises and to extend the
Term, and to otherwise modify and amend the Lease, on and subject to the terms,
covenants, and conditions set forth below.
NOW, THEREFORE, Landlord and Tenant hereby agree as follows:
A G R E E M E N T
1. Effective immediately, Section 2.5. of the Lease is modified and
amended to set forth a new Expiration Date of December 31, 2006. Also
effective immediately, Section 2.13. of the Lease is modified and amended to
replace the "Unit 4" designation of the Premises with "Suites 11405, 11409, and
11411." Tenant shall accept the physical condition of Suites 11405, 11409, and
11411 in their "as is" condition during the Term, as extended, with no
remodeling or other improvements by Landlord.
2. Effective as of January 1, 2003, (the "First Expansion Effective
Date"), Tenant's separate lease of the premises known as Units 1 and 2 in such
lease, but currently referred to by the parties as Suite 11415 at 11415 Valley
View Road, shall be terminated and Suite 11415 shall be added to this Lease,
Tenant leasing (under this Lease) Suite 11415 as of the First Expansion
Effective Date. Tenant is already in possession of Suite 11415 under its other
lease, so no additional delivery and acceptance of Suite 11415 shall be
required under this Lease. Tenant shall accept the physical condition of Suite
11415 in its "as is" condition with no remodeling or other improvements by
Landlord.
3. As of the First Expansion Effective Date, Section 2.13. of the Lease
shall be modified and amended to add Suite 11415 to the list of Suites
comprising the Premises, and to state the new total Premises "are deemed to
contain approximately 18,772 square feet of Usable Area."
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4. As of the First Expansion Effective Date, Section 2.18. of the Lease
shall be modified and amended to set forth a new Tenant's Proportionate Share
of 20.56%. This includes a slight adjustment based on recent re-measurement of
the Premises.
5. As of the First Expansion Effective Date, Sections 2.2. and 2.9. of
the Lease shall be modified and amended to replace the existing Base Rent
schedules with the following schedule of Monthly Installments of Base Rent:
January 1, 2003, through December 31, 2003, $9,375.00 / month
January 1, 2004, through December 31, 2004, $9,570.00 / month
January 1, 2005, through December 31, 2005, $9,750.00 / month
January 1, 2006, through December 31, 2006, $9,945.00 / month
6. As of the First Expansion Effective Date, Landlord shall refund
Tenant's Security Deposit and Section 2.15. of the Lease shall be modified and
amended to replace the text inserted in the blank with "no Security Deposit
shall be required absent future defaults of Tenant; see Section 8."
7. Effective as of June 1, 2003, (the "Second Expansion Effective
Date"), Tenant shall lease Suite 11413 from Landlord, and Section 2.13. of the
Lease shall be modified and amended to add Suite 11413 to the list of Suites
comprising the Premises and to specify that the new total Premises are "deemed
to contain approximately 21,362 square feet of Usable Area." Tenant is already
in possession of Suite 11413 under a sublease expiring immediately prior to the
Second Effective Date, so no additional delivery and acceptance of Suite 11413
shall be required under this Lease. Tenant shall accept the physical condition
of Suites 11413 in its "as is" condition, with no remodeling or other
improvements by Landlord. Landlord shall not require Tenant to vacate, under
Tenant's existing sublease, Suite 11413 as a condition to accepting surrender
of Suite 11413 from its present tenant. The revised Base Rent schedule shown
above shall remain unchanged.
8. As of the Second Expansion Effective Date, Section 2.18. of the
Lease shall be modified and amended to set forth a new Tenant's Proportionate
Share of 23.40%. This includes a slight adjustment based on recent re-
measurement of Suite 11413.
9. Landlord shall provide Tenant with a credit in the amount of
$12,694.00, which Tenant may apply to any desired remodeling, or credit against
Rent coming due at any time after full execution of this Agreement.
10. All other terms, covenants, and conditions of the Lease, shall
remain in full force and effect.
This Agreement modifies and amends the Lease. To the extent there
are any inconsistencies between this Agreement and the Lease, the terms,
covenants, and conditions of this Agreement shall govern. Capitalized terms not
defined herein are defined in the Lease.
[Remainder of page intentionally blank; signatures next page.]
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IN WITNESS WHEREOF, Landlord and Tenant have executed this Agreement
as of the date first above written.
LANDLORD:
GLENBOROUGH FUND IX, LLC,
a Delaware limited liability company
By: GRT IX, Inc.,
a Delaware corporation
Its Managing Member
By: /s/ Sandra L. Boyle
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Its Exec. Vice President
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TENANT:
NVE CORPORATION,
a Minnesota corporation
By: /s/ Daniel Baker
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Its President & CEO
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By:
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Its
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