EXHIBIT 10.30
AMENDMENT TO LEASE
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THIS AMENDMENT TO LEASE ("Amendment") is dated as of this 9th day of
November, 2001, by and between D&D TAROB PROPERTIES, LLC, a California limited
liability company ("Lessor"), and, DYNAMIC DETAILS INCORPORATED SILICON VALLEY,
a Delaware corporation, formerly known as Dynamic Circuits, Inc., a Delaware
Corporation ("Lessee"), who agree as follows:
1. Recital. This Agreement is made with reference to the following facts
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and objectives:
A. Mercury Partners 30, Inc. and Dynamic, Circuits Inc. entered into
that certain Standard Industrial/Commercial Multi-Lease Agreement dated March
20, 1997 ("Lease"), for the lease of approximately 32,025 square feet of space
located at 1988 Tarob Court, Milpitas, California, which is more particularly
described in the Lease ("Premises").
B. The term of the Lease was for five (5) years commencing on August
1, 1997, and expiring on July 31, 2002. Additionally, Lessee has one (1) option
to extend the term of the Lease for five (5) years subject to determination of
the prevailing rental rate ("Renewal Option").
C. Lessee desires to exercise the Renewal Option and extend the term
of the Lease for an additional five (5) years, whereby the extended term will
commence August 1, 2002, and terminate on July 31, 2007.
2. Extension of Term. The original term of the Lease is hereby extended by
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the exercise of the Renewal Option for a period of five (5) additional years,
whereby the extended term shall commence on August 1, 2002, and shall terminate
on July 31, 2007 ("Extended Term").
3. Base Rent Schedule During Extended Term. The following is added to the
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end of Section 50 of the Lease:
"The following monthly triple net Base Rent shall apply during the Extended
Term of this Lease:
Months Monthly Base Rent
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01 - 12 $60,847.50
13 - 24 $63,281.40
25 - 36 $65,812.66
37 - 48 $68,445.16
49 - 60 $71,182.97"
4. Condition of Premises. Lessee has inspected the Premises and
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acknowledges that the Premises are in good condition and accepts the same on an
"As Is" basis.
D&D Tarob Properties, LLC/DDI Corporation
Extension Amendment to Lease
5. Option to Extend. In recognition that Lessee has duly executed its
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right to extend the Lease under Section 55 of the Lease, Section 55 of the Lease
entitled "Option to Renew is hereby deleted in its entirety and replaced with a
new Section 55 which reads in its entirety as follows:
"a.) Option to Extend. Provided that Lessee has not assigned Lessee's
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interest in the Lease or subleased the Premises (or any portion thereof,
excepting paragraph 67 herein) and subject to the conditions of paragraph 39
under the Lease, Lessee, shall have the option to extend ("Option to Extend")
the Term of the Lease for one (1) period of five (5) years ("Second Extended
Term") on the terms and conditions provided herein, except with regard to the
amount of the Base Rent and adjustments, as described below. Lessee shall
exercise the Option to Extend, if at all, by giving written notice (the "Option
Notice") to Lessor at least six (6) months, but no more than twelve (12) months
prior to the expiration date of the Extended Term of this Lease. If Lessee fails
to exercise the Option to Extend by giving the Option Notice to Lessor on or
before a date which is twelve (12) months to six (6) months prior to the
expiration of the Extended Term, the Option to Extend will be deemed to have
been waived by Lessee. If Lessee is in default under the terms and provisions of
the Lease on the date of giving the Option Notice, and such default is not cured
within the applicable cure period, the Option Notice, at Lessor's sole
election, shall be totally ineffective; and if Lessee is in default of any terms
or provisions of the Lease on the date the Second Extended Term is to commence,
which default is not cured within the applicable cure period, then at Lessor's
sole election, the Second Extended Term shall not commence and this Lease shall
expire at the termination of the Extended Term of this Lease. The Base Rent
payable by Lessee to Lessor at the commencement of the Extended Term, and
adjustments to the Base Rent during the Extended Term shall be the then
prevailing market rental rate and adjustments for space of equivalent quality,
size, utility and location with the length of the Extended Term and the credit
standing of Lessee to be taken into account, as agreed to by Lessor and Lessee;
as hereinafter provided but in any event not less than the Base Rent payable at
the expiration of the Extended Term.
b.) Determination of Prevailing Market Rental Value. Base Rent for an
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Extended Term shall be at prevailing market rental value, determined as follows:
(i) Lessor shall deliver to Lessee written notice of Lessor's
determination of the prevailing market rental value within
thirty (30) days after Lessor receives the Option Notice
from Lessee.
(ii) If Lessee disputes Lessor's determination of the prevailing
market rental value as contained in Lessor's notice, Lessee
shall notify Lessor in writing within thirty (30) days of
its receipt of Lessor's determination, which notice shall
set forth Lessee's determination of the prevailing market
rental value. Should Lessee fail to timely notify Lessor as
aforesaid, then Lessor's determination of the prevailing
market rental
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value as contained in Lessor's notice shall constitute the
Base Rent for the Second Extended Term.
(iii) Should Lessee timely notify Lessor as aforesaid, Lessor and
Lessee shall attempt to resolve their differences within
ten (10) days following Lessor's receipt of Lessee's
notice. If Lessor and Lessee cannot agree on the prevailing
market rental value during such ten (10) day period, Lessor
and Lessee shall each appoint a disinterested M.A.I.
appraiser with no less than five (5) years experience
appraising similar space in the county in which the
Premises are located and give notice of such appointment to
the other within ten (10) days after the preceding ten (10)
day period. If either Lessor or Lessee shall fail timely to
appoint an appraiser, then the single appraiser appointed
by one party shall proceed to make the determination of the
prevailing market rental value. Such appraiser(s) shall,
within thirty (30) days after the appointment of the last
of them to be appointed, complete their written
determinations of the prevailing market rental value and
furnish the same to Lessor and Lessee. Each party shall pay
the fees and costs of the appraiser appointed by it. If the
valuations vary by 5% or less of the lower value, the
prevailing market rental value shall be the average of the
two valuations.
(iv) If the valuations vary by more than 5% of the lower value,
the two appraisers shall, within ten (10) days after
submission of the last appraisal report, appoint a third
disinterested M.A.I. appraiser experienced in appraising
similar space in the county in which the Premises are
located. If the two appraisers shall be unable to agree in
a timely manner on the selection of the third appraiser,
then either appraiser, on behalf of both, may request
appointment of such third disinterested M.A.I. appraiser by
the American Arbitration Association process. Such third
appraiser shall, within thirty (30) days after appointment,
select one of the two valuations submitted by the first two
appraisers as such third appraiser's determination of the
prevailing market value, and shall submit such decision to
Lessor and Lessee. The prevailing market rental value of
the Premises as determined by the third appraiser shall be
controlling. All fees and costs incurred in connection with
the determination of the prevailing market rental value by
the third appraiser shall be paid one-half by Lessor and
one-half by Lessee."
6. Brokers' Fees. All negotiations relative to this Amendment and the
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transactions contemplated hereby have been carried on by Lessee directly with
Lessor, without the use of any brokers. Each party shall indemnify and hold
harmless the other party against and in respect to any claim for brokers' fees
resulting from actions taken by the former.
7. Miscellaneous Provisions.
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A. Except as modified herein, all terms of the Lease, together with all
Addendums and attachments thereto, shall continue to remain in full force and
effect.
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B. If either party commences an action against the other party
arising out of or in connection with this Amendment, or in connection with the
Lease, or any addenda thereto, the prevailing party shall be entitled to have
and recover from the losing party reasonable attorney's fees and costs of suit.
IN WITNESS WHEREOF, the parties have executed this First Amendment to Lease
as of the date and year first above written at Milpitas, California.
DYNAMIC DETAILS INCORPORATED SILICON VALLEY
By: /s/ Tim Donnelly
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Tim Donnelly, Vice President
Authorized Officer
D&D TAROB PROPERTIES, LLC
By: /s/ Charles D. Dimick
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Charles D. Dimick, Managing Member
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[logo] JER Partners
[LETTERHEAD OF JER PARTNERS]
November 13, 2000
DDI Corporation
1988 Tarob Court
Milpitas, CA 95035
Re: Notice Of Assignment Of Lease, Change Of Rent Payment Address, and
Change Of Notice Address
Dear Tenant:
Notice is hereby given that on November 8, 2000, JER Tarob LLC, a Delaware
limited liability company ("Landlord") assigned to D&D Tarob Properties, LLC, a
California limited liability company ("Assignee"), all of Landlord's rights,
title, deposits, advance rents, impound accounts, and interest in the lease
agreement by and between JER Tarob LLC and DDI Corporation dated August 1, 1997
(the "Lease").
The address for all notices and rent payments under the Lease is hereby
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changed to:
D&D Tarob Properties, LLC
Attention: Chuck Dimick
1988 Tarob Court
Milpitas, CA 95035
If you have any questions, regarding this Letter, please contact the
undersigned.
JER TAROB LLC, a Delaware limited liability company
By: JER REAL ESTATE PARTNERS, L.P., a
Delaware limited partnership, Member
By: JER REAL ESTATE ADVISORS, L.P., a
Delaware limited partnership, General
Partner
By: JER REAL ESTATE ADVISORS,
INC., a Delaware corporation,
General Partner
By: /s/ Barbara Bowman
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Name: Barbara Bowman
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Title: Vice President
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cc: Bernard J. Vogel, III, Esq.