8x8 2016 Annual Report Download - page 122

agreement shall be entered into by and among Tenant, Landlord and the proposed assignee or sublessee confirming the requirements of this
Section14.5.
14.6   Certain Transfers . The sale of all or substantially allof Tenant's assets (other than bulk sales in theordinary course of business), or, if
Tenantisacorporation,anunincorporatedassociation,alimitedliabilitycompanyorapartnership,(i)anymerger,reorganizationorconsolidation
involving Tenant, and/or (ii) the transfer, assignment or hypothecation of any stock or interest in such corporation, association, limited liability
companyorpartnershipintheaggregateinexcessoffortypercent(40%)(exceptforpubliclytradedsharesofstockconstitutingatransferofforty
percent(40%)ormoreintheaggregate,solongasnochangeinthecontrollinginterestsofTenantoccursasaresultthereof),shallbedeemedan
assignment within the meaning and provisions of this Article  XIV. If the acquiring or surviving entity is wholly-owned or majority controlled by
anotherentityor person(" Parent"), then, without in any way limiting the basis uponwhich Landlord may grant or withhold its consent to such
assignment,itshallnotbeunreasonableforLandlordtoconditionitsconsentupontheexecutionanddeliverybytheParentofawrittenguarantyof
Tenant'sobligationsandliabilitiesunderthisLeaseonaformofleaseguarantyprovidedbyLandlord.
14.7Landlord'sFeeandExpenses.IfTenantrequestsLandlord'sconsenttoanassignmentorsublettingbyTenantunderthisLease,Tenant
shallpaytoLandlordafeeofOneThousandDollars($1,000)andallofLandlord'sreasonableout-of-pocketexpenses,including,butnotlimitedto,
attorneys'feesreasonablyincurredrelatedtosuchassignmentorsublettingbyTenant,whetherornottheassignmentorsublettingisapproved.
14.8ProhibitedTransfersandUsers.NotwithstandinganythingcontainedinthisArticleXIVtothecontrary,innoeventshallTenantenterintoany
assignmentsorsubleaseswith,orpermitthePremisesoranyportion thereofto beusedby,anyperson orentitythatcouldnotcomplywith the
obligationsofTenantunderSection22.2ofthisLeaseormaketherepresentationsTenantisrequiredtomakeinSection22.2ofthisLease.Any
assignment,sublettingorotheragreementorarrangementmadeinviolationofthisSection14.8shall,atLandlord'soption,benullandvoidandof
noforceoreffectandconstituteanEventofDefaultbyTenantunderthisLease.
14.9   Permitted Transfer . Notwithstanding anything to the contrary contained in this Article XIV, Tenant shall be entitled to assign this Lease,
withouttherequirementofobtainingLandlord'sconsent,to(eachsuchpersonorentity,a"PermittedTransferee",andeachsuchtransaction,a"
PermittedTransfer"):(a)asuccessorentityrelatedtoTenantinconnectionwithamerger,consolidationornon-bankruptcyreorganization,(b)any
entitythatcontrols,iscontrolledbyorisundercommoncontrolwithTenant(with"control"forthepurposesofthissubsection(b)tomeannotless
thanfifty-onepercent(51%)equityownershipofanyentitytogetherwiththepowertodirectthemanagementdecisionsthereof),or(c)anypersonor
entitywhichacquiresallorsubstantiallyalloftheassetsofTenant;provided,however,that(i)foranyassignment,suchassigneehasanetworth
(calculatedinaccordancewithGAAP)equaltoorexceedingthenetworthofTenantasofthe datehereofortheeffective dateofthePermitted
Transfer, whichever is greater, (ii) Tenant provides not less than twenty-one (21) days prior written notice of any Permitted Transfer, including
financialinformationreasonablysatisfactorytoLandlordevidencingcompliancewiththeforegoingnetworthrequirements,(iii)withinten(10)days
after any Permitted Transfer, Tenant delivers to Landlord a copy of the assignment wherein the Permitted Transferee assumes all of Tenant's
obligations under the Lease or sublets the Premises, and (iv) Tenant complies with all other requirements under Article XIV other than the
requirement of obtaining Landlord's prior written consent forany assignment orsublease meeting the requirements ofa Permitted Transfer. As
assigneeofLandlord'sinterestunderthisLeasepursuanttothisSection14.9isreferredtohereinasa"PermittedAssignee".
ARTICLEXV
DEFAULTSANDREMEDIES
15.1Tenant'sDefault.AttheoptionofLandlord,adefaultunderthisLeasebyTenantshallexistifanyofthefollowingeventsshalloccur(eachis
calledan"EventofDefault"):
A. TenantfailstopaytheRentpayablehereunder,asandwhendue,foraperiodoffive(5)daysafterNoticebyLandlord;provided,however,
theNoticegivenhereundershallbeinlieuof,andnotinadditionto,anynoticerequiredunderSection1161,etseq.,oftheCaliforniaCodeof
CivilProcedure;
B. Tenantattemptstomakeorsufferstobemadeanytransfer,assignmentorsubletting,exceptaspermittedinArticleXIVhereof;
-26-