Health Net 2009 Annual Report Download - page 471

ADDENDUM FOUR
CONTRACTION OPTION
ATTACHED TO AND A PART OF THE LEASE AGREEMENT
BY AND BETWEEN
GK TRIANGLE CORPORATE PARK III, LLC,
and
HEALTH NET HEALTH PLAN OF OREGON, INC.
Provided no event of default shall then exist under the Lease and no condition shall then exist which with the passage of time or
giving of notice, or both, would constitute an event of default under the Lease, Tenant shall have the right at any time on or after the
date this Lease is executed, but prior to December 31, 2009, to send Landlord irrevocable written notice (the “Contraction Notice”)
that Tenant has elected to terminate this Lease only as to the 11,237 square foot portion of the third floor Premises shown on Schedule
1 of this Addendum Four (the “Contraction Area), effective on a date to be specified in the Contraction Notice. Tenant shall give
Landlord at least one hundred twenty (120) days prior written notice to Landlord of such contraction date (the “Contraction Date”).
If Tenant elects to exercise its herein provided contraction option, the effectiveness of such exercise shall be conditioned upon
Tenant surrendering the Contraction Area in the condition required for surrender of the Premises by Section 5(c) of this Lease on or
before the Contraction Date, and constructing a demising wall between the Contraction Area and the remaining 12,898 square foot
portion of the third floor Premises (as further described in the Exhibit B Work Letter) on or before the Contraction Date, it being
stipulated that reconfiguring the third floor to be a multi-tenant floor will result in Tenant retaining such 12, 898 square foot portion).
After the Contraction Date, Landlord and Tenant shall be relieved of all obligations accruing under this Lease as to the Contraction
Area only, but not any obligations accruing under the Lease prior to the Contraction Date, and not any obligations accruing under the
Lease as to that portion of the Premises exclusive of the Contraction Area (as to which remaining portion this Lease shall remain in
full force and effect). If Tenant elects to exercise its contraction option, Landlord and Tenant shall enter into a commercial reasonable
form of amendment to the Lease reflecting revisions to the Premises (i.e., replacing Exhibit A-1 to the Lease), Basic Annual Rent
schedule, Tenant’s Proportionate Share of Operating Costs and Landlord’s Construction Allowance. If Tenant does not timely deliver
the Contraction Notice to Landlord, or timely surrender, in the condition required by this Addendum, the Contraction Area, then this
Contraction Option shall become null and void and the Lease shall continue in full force and effect as to the entire Premises
(including the Contraction Area).
Upon the delivery of a Contraction Notice to Landlord, notwithstanding Section 5 of the Basic Lease Provisions to the contrary,
Tenant shall receive an abatement of Basic Annual Rent for the Contraction Area only for a period of ninety (90) days following the
date of delivery of the Contraction Notice.
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