Sublease Termination and Release Agreement – BroadVision, Inc. and Dexterra Inc.
SUBLEASE TERMINATION AND RELEASE AGREEMENT
This Sublease Termination and Release Agreement (the
“Agreement”) is made and entered into as of June 10,
2009 (the “Effective Date”) by and between
BroadVision, Inc., a Delaware corporation (“Sublandlord”), and
Dexterra Inc., a Delaware corporation (“Subtenant”) in the
following factual context:
A. Sublandlord leases certain premises consisting of approximately 50,000
rentable square feet (“RSF”) in Building 6 (the “Building”), located at Pacific
Shores Center, 1600 Seaport Boulevard, Redwood City, California 94060 pursuant
to that certain Triple Net Space Lease dated July 7, 2004 (“Master Lease”),
between Pacific Shores Investors, LLC as landlord and BroadVision, Inc. as the
“Lessee”. On or about December 7, 2006, the Master Lease was assigned to VII Pac
Shores Investors, L.L.C., a Delaware limited liability company, c/o Starwood
Capital Group Global, L.L.C., 455 Market Street, Suite 2200, San Francisco, CA
94105 and VII Pac Shores Investors L.L.C. replaced Pacific Shores Investors, LLC
as the “Lessor” in the Master Lease. Sublandlord is referred to as Lessee in the
Master Lease. The entire 50,000 RSF are more particularly described in the
Master Lease as the “Premises”. Capitalized terms used but not defined herein
have the same meanings as they have in the Master Lease or the Sublease as
hereinafter defined.
B. Sublandlord sublet to Subtenant, a portion of the Premises consisting of
approximately 22,509 RSF on the 2nd floor of the Building pursuant to a sublease
dated December 21, 2006 (the “Sublease”) covering the
sublet premises more particularly described in the Sublease (the
“Subleased Premises”) for a term of approximately
sixty-six (66) months from January 8, 2007 (“Commencement Date”) with right of
early termination at the end of the thirty-sixth (36th) month from the
Commencement Date, upon six (6) months prior written notice to Sublandlord and
payment of a fee equal to the sum of an additional three (3) month153s Base Rent.
C. Subtenant exercised the right of early termination on May 22, 2009.
D. Sublandlord and Subtenant now desire to terminate the Sublease prior to
the end of the thirty-sixth (36th) month on the terms and conditions
set forth in this Agreement.
NOW THEREFORE, Sublandlord and Subtenant (collectively referred to as the
“Parties” or individually as
“Party”) agree as follows:
1. Lease Termination. Subject to
Subtenant153s performance of its obligations under this Agreement, Sublandlord and
Subtenant agree to terminate the Sublease effective as of June 4, 2009 (the
“Termination Date”). Subtenant shall surrender to
Sublandlord the Subleased Premises and all of Subtenant’s right, title and
interest in and to the Sublease as of the Termination Date.
2. Acceptance of Premises. Sublandlord shall accept
surrender of the Subleased Premises in “as-is” condition with any and all
furniture, fixtures, wiring, and other items Subtenant elects to leave in the
Subleased Premises and further will waive all late fees and any other charges
associated therewith as may be available to Sublandlord pursuant to the terms of
the Sublease.
3. Termination Fee. In consideration for
the termination of the Sublease, and in full satisfaction of all outstanding
obligations of Sublandlord and Subtenant under the Sublease: Subtenant shall pay
Sublandlord the sum of $550,405.40 (the “Termination Fee”). The Termination Fee
has been calculated and shall be paid as set forth in Section I and
Section II of Exhibit A.
4. Rent. Upon delivery of the Termination
Fee in accordance with Section II of Exhibit A, Sublandlord shall be deemed to
have released Subtenant as of the Termination Date from all claims for rent,
additional rent, tenant improvement costs, management fees, common area
maintenance costs, real property taxes and impositions, insurance premiums, late
charges, interest, and taxes due and payable after the Termination Date, and all
other obligations arising under the Sublease after the Termination Date.
5. Security Deposit. Subtenant153s Security
Deposit has been applied in the calculation of the Termination Fee as set forth
in calculations in Section I of Exhibit A.
6. Partial Termination Fee Refund to Subtenant Upon
Sublandlord153s Re-Subleasing of Subleased Premises. In the event
Sublandlord subleases the Subleased Premises to another lessor prior to January
7, 2010, Sublandlord agrees to refund to Subtenant a portion of the Termination
Fee as set forth in Section III of Exhibit A.
7. Mutual Release. Subject to delivery of
the Termination Fee in accordance with Section II of Exhibit A, for good and
valuable consideration, the receipt of which is hereby acknowledged, each Party,
on behalf of itself and its officers, directors, shareholders, employees,
attorneys, insurers, agents, representatives, successors and assigns
(collectively, “Releasors”), hereby intentionally and
unconditionally fully releases, acquits and forever discharges the other Party,
its officers, directors, shareholders, employees, attorneys, insurers, agents,
representatives, successors and assigns (collectively,
“Releasees”), from all or any manner of rights,
claims, demands, actions in law or equity, obligations, damages, debts and
liabilities, of any kind or nature whatsoever, whether known or unknown, whether
now existing or hereinafter arising, suspected or claimed, liquidated or
unliquidated, accrued or unaccrued, fixed or contingent (collectively, the
“Claims”) from or relating in any manner to the Lease
or the Sublease (the “Release”). Each Party
understands and expressly waives any rights or benefits available to it under
Section 1542 of the Civil Code of California or any similar provision in any
other jurisdiction. Section 1542 provides substantially as follows:
CIVIL CODE 1542: A general release does not extend to claims which the
creditor does not know or suspect to exist in his or her favor at the time of
executing the release, which if known by him or her must have materially
affected his or her settlement with the debtor.
8. Voluntary and Knowledgeable Granting of Release.
Each Releasor hereby declares that it knows and understands the
contents of the Release, that it has been recommended that it seek advice from
its own attorneys with respect to its rights and obligations and with respect to
the execution of the Release and this Agreement, and that the Release and this
Agreement have been executed voluntarily by it. Each Releasor understands and
agrees that after signing this Release it cannot proceed against Releasees with
respect to any Claims.
9. General Provisions.
9.1 Right and Authority to Give Release.
The Parties each represent and warrant to the other that as of the date
of execution of this Agreement it has the sole right and authority to execute
this Agreement on behalf of itself and has not assigned, transferred, conveyed,
or otherwise disposed of any Claim surrendered by virtue of this Agreement.
9.2 Entire Agreement. This Agreement, and
all exhibits attached hereto, sets forth the entire understanding of the Parties
relating to the lease termination it contemplates, and supersedes all prior
understandings, whether written or oral. There are no obligations, commitments,
representations or warranties relating to them except those expressly set forth
in this Agreement.
9.3 Waiver/Modification/Amendment. No
purported amendment of this Agreement, or waiver, discharge or termination of
any obligation under it, or anything else which purports to affect its terms or
interpretation, shall be enforceable or admissible unless, and then only to the
extent, expressly set forth in a writing signed by the Party against which
enforcement or admission is sought. Without limiting the generality of the
foregoing, no oral promise or statement, nor any action, inaction, delay,
failure to require performance or course of conduct shall operate as, or
evidence, an amendment or waiver or have any other effect on this Agreement. Any
waiver granted shall be limited to the specific circumstance expressly described
in it, and shall not apply to any subsequent or other circumstances, whether
similar or dissimilar, or give rise to, or evidence, any obligation or
commitment to grant any further waiver.
9.4 Binding Agreement. This Agreement shall
be binding upon and inure to the benefit of the Parties and each and all of
their respective officers, directors, employees, shareholders, agents,
attorneys, predecessors, successors, assigns, parents, subsidiaries, divisions
and affiliates of any kind, and each of them, as if they were Parties hereto.
9.5 Applicable Law. This Agreement shall be
governed by and construed in accordance with the laws of the State of California
applicable to contracts made and to be performed in California.
9.6 Construction of Agreement. For purposes
of construction, this Agreement, and each provision or clause of this Agreement,
shall be deemed to have been jointly drafted by both Parties, and any
uncertainty or ambiguity existing herein, shall not be interpreted against
either Party, but shall be interpreted according to the rules of interpretation
of contracts.
9.7 Headings. The headings in this
Agreement are for purposes of reference only and shall not limit, enlarge or
otherwise affect any term or provision of this Agreement.
9.8 Severability. The provisions of this
Agreement are severable. If any provision or term of this Agreement or its
application to any entity or circumstance shall be held by a court of competent
jurisdiction to be invalid or unenforceable, the remainder of this Agreement
shall not be affected and every other provision of the Agreement shall be
enforced to the fullest extent permitted by law.
9.9 Attorneys153 Fees. In the event that any
Party shall institute any action or proceeding against the other relating to the
provisions of this Agreement, or any default hereunder, the Party or Parties not
prevailing in the action or proceeding shall reimburse the prevailing Party for
all reasonable attorneys153 fees and all costs or disbursements incurred in
connection therewith by the prevailing Party including, without limitation, any
fees, costs or disbursements incurred on any appeal from the action or
proceeding.
9.10 Counterparts. This Agreement may be
executed simultaneously in one or more counterparts, each of which shall be
deemed an original, but all of which together shall constitute one and the same
instrument. This Agreement may be executed and delivered by the exchange of
facsimile, .pdf or other electronic image file copies of the executed
counterpart signature pages, which shall be considered the equivalent of ink
signature pages for all purposes.
IN WITNESS WHEREOF, the undersigned have executed this Agreement as of the
date first written above.
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BROADVISION, INC., a Delaware corporation |
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By: Name: Its: |
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DEXTERRA, INC., a Delaware corporation |
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By: Name: Its: |
EXHIBIT A
TERMINATION FEE
I. Termination Fee Calculation
Rent: April 1 – Jan 7 – $687,923.40
Less: Security Deposit – $127,518.00
Less: Concession – $10,000.00
Total:$550,405.40
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II. |
Termination Fee Payment Schedule: |
A. $472,000.00 due and payable to Sublandlord on 6/10/09 (the “Payment Date”)
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B. Balance of $78,405.40 (the “Contingent Payment”) due and payable to |
All references to “Buyer” shall include the subsidiary of Buyer with whom
Subtenant is merging pursuant to the Merger Agreement with Subtenant as the
surviving corporation.
“Buyer Group Member” means (i) Buyer, its subsidiaries and each of
their respective affiliates (including, after the effective time of the merger,
the surviving corporation and its subsidiaries), (ii) their respective
successors and assigns and (iii) their respective directors and officers.
All payments to be made according to the following instructions by wire
transfer for receipt on or before the due dates set forth above:
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To: Citibank N.A. |
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702 Marshall Street, Suite 100 |
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Redwood City, CA 94063, USA |
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Routing & Transit #: 321171184 |
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For further credit to BroadVision. Inc. A/C 202046322 |
III. Termination Fee Refund on Re-Subleasing the Sublease Premises
Parameters:
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A. |
Higher of: (i) Actual rent charged new subtenant during |
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Less: |
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B. |
Allocated broker commission paid to re-sublease premises, calculated as |
Less:
C. An administration fee equal to 10% of (A – B)
Less:
D. $10,000, which is the Concession amount in Section I of this Exhibit.
Less:
E. Unpaid portion of Contingent Payment
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