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EXHIBIT
10.19
EIGHT MODIFICATION AND
RATIFICATION OF LEASE
THIS EIGHTH MODIFICATION AND
RATIFICATION OF LEASE (this “Modification”) is made and
entered into effective the 7 th day of April 2006, by
and between ST. PAUL PROPERTIES, INC., a Delaware corporation
(“Landlord”), and THE TRIZETTO GROUP, INC., a Delaware
corporation (“Tenant”).
WITNESSETH:
WHEREAS, Landlord and Tenant
entered into that certain Office Lease dated as of April 26, 1999,
as amended by that certain Lease commencement letter signed by
Landlord on September 9, 1999, and by Tenant on September 7, 1999,
by that certain First Modification and Ratification of Lease
entered into effective November 1, 1999, by that certain Second
Modification and Ratification of Lease entered into effective
December 27, 1999, by that certain Third Modification and
Ratification of Lease entered into effective January 15, 2000, by
that certain Fourth Modification and Ratification of Lease entered
into Effective October 15, 2000, by that certain Fifth Modification
and Ratification of Lease entered into effective October 31, 2002,
by that certain Sixth Modification and Ratification of Lease
entered into effective May 19, 2003, by that certain Seventh
Modification and Ratification of Lease entered into effective April
12, 2004 (hereafter collectively the “Lease”), for the
rental of certain commercial real property located in the Building
known as Atrium I, 6061 S. Willow Drive, Englewood, Colorado, and
more particularly described in the Lease as: Suites 310 and 300,
containing collectively approximately 47,385 rentable square feet
(the “Original Premises” and “Expansion
Premises” respectively, which may be collectively referred to
herein as the “Original Premises”); Suite 233,
containing approximately 4,805 rentable square feet (the
“Second Expansion Premises”); Suites 217, 235 and 250
containing collectively 13,077 rentable square feet (the
“Third Expansion Premises); and Suites 230 and 260 containing
collectively 4,624 rentable square feet (the “Fourth
Expansion Premises”), and Suite 100 containing approximately
5,586 rentable square feet (the “Fifth Expansion
Premises”); and
WHEREAS, Tenant desires to
extend the term of the Lease for a period eighty-four (84) months,
from July 31, 2009, to and including July 31, 2016, on the terms
and conditions set forth in greater detail in this Modification;
and
WHEREAS, Tenant desires to
further expand the Premises beginning on or about April 14, 2006,
through the addition of Suites 115, 120, 125, 150, and 232 in the
Building containing approximately 50,862 rentable square feet
(hereafter the “Sixth Expansion Premises”), as depicted
in greater detail in Exhibit A-7 attached hereto and
incorporated by reference, on the terms and conditions set forth in
greater detail in this Modification; and
WHEREAS, Landlord is willing
to modify the Lease to accommodate such desires, subject to the
terms and conditions of this Modification and Landlord and Tenant
desire to amend the Lease to reflect the extension of the Lease
Term, the addition of the Sixth Expansion Premises, and the
increase in Base Rent payable under the Lease.
NOW, THEREFORE, in
consideration of the foregoing, the agreements and undertakings of
the parties, and other good and valuable consideration, the receipt
and sufficiency of which is hereby acknowledged, the parties agree
as follows:
1. Definitions . All
capitalized terms used herein not otherwise defined in this
Modification shall have the meanings given them in the
Lease.
2. Incorporation of
Recitals . The foregoing recitals are incorporated herein and
made a part hereof as if set forth in their entirety.
3. Additional Premises
. Effective on April 14, 2006 ( the “Sixth Expansion Premises
Commencement Date”), Landlord shall lease to Tenant and
Tenant shall lease from Landlord the Sixth Expansion Premises. In
addition the identification of the Leased Premises in Section
1.03(B) of the Lease is hereby further amended by adding
immediately after the description of the Fifth Expansion Premises
the following:
SIXTH EXPANSION
PREMISES:
The following portions of the
first and second floors of the Building outlined on Exhibit
A-7 : Suites 115, 120, 125, 150, and 232 in the Building
containing approximately 50,862 rentable square feet. Following the
Sixth Expansion Premises Commencement Date (as such term is defined
below) the Original Premises, Second Expansion Premises, Third
Expansion Premises, Fourth Expansion Premises, Fifth Expansion
Premises and Sixth Expansion Premises, shall collectively be
referred to as the “ Premises”.
4. Sixth Expansion
Premises Commencement Date. Section 1.03(D) of the Lease is
hereby amended by adding immediately after the description of the
commencement date of the Fifth Expansion Premises the
following:
The Sixth Expansion Premises
Commencement Date shall be April 14, 2006.
5. Termination Date.
Section 1.03(F) of the Lease is hereby amended in its entirety by
replacing the existing Termination Date of the Lease of July 31,
2009, with the following:
The Termination Date of the
Lease for the Original Premises, Expansion Premises, Second
Expansion Premises, Third Expansion Premises, Fourth Expansion
Premises, Fifth Expansion Premises and Sixth Expansion Premises
shall be July 31, 2016, unless sooner terminated as provided in
this Lease.
6. Tenant’s
Proportionate Share. Section 1.03(J) of the Lease is amended
effective on the Sixth Expansion Premises Commencement Date by
adding immediately after the description of the Tenant’s
Proportionate Share under the Lease for the Premises the
following:
Tenant’s Proportionate
Share for the Sixth Expansion Premises shall be 38.06%.
2
7. Security Deposit.
Section 1.03(K) of the Lease is hereby amended by increasing the
security deposit under the Lease in the additional amount of
Forty-One Thousand Seven Hundred Forty-Nine and 23/100 US Dollars
($41,749.23), for a total security deposit of One Hundred
Eighty-Nine Thousand Eight Hundred Ninety-Two and No/100 US Dollars
($189,892.00), which additional amount shall be payable to Landlord
upon execution of this Modification.
8. Parking Spaces.
Effective on the Sixth Expansion Premises Commencement Date,
Section 1.03(O) of the Lease is deleted in its entirety, as
amended, and is replaced with the following:
Commencing on the Sixth
Expansion Premises Commencement Date, and in connection with its
occupancy of the entirety of the Premises, Tenant shall be entitled
to the non-exclusive use of a maximum of Four Hundred Seventeen
(417) parking spaces in the Building parking areas at no charge
during the Term of the Lease expiring on July 31, 2016. Landlord,
with reasonable advance notice, reserves the right to strictly
enforce the number of parking spaces utilized by Tenant during the
term of this Lease based upon a parking ratio of 3.3 parking spaces
per 1,000 rentable square feet. Landlord further reserves the right
to assign and reassign (with the exception of Tenant’s
reserved parking spaces described below), from time to time and on
a non-discriminatory basis, particular parking spaces for use by
persons selected by Landlord, and to issue and implement
non-discriminatory rules and regulations with respect to parking
spaces for the Building, provided that Tenant’s rights to the
number of parking spaces designated herein are preserved. Within
the foregoing parking allowance, Tenant shall be entitled to the
use of a total of eleven (11) covered reserved parking spaces in
those areas designated by Landlord for such spaces as of the date
of this Modification, at no charge during the initial Term of the
Lease.
9. Operating Expenses.
Section 2.02 of the Lease, as previously amended, shall be further
amended effective on the date of this Modification by adding to the
first sentence thereof after the phrase “Fifth Expansion
Premises” the phrase “and Sixth Expansion
Premises”. In addition, the schedule of base years to be used
to calculate excess expenses incorporated into the Sixth
Modification and Ratification of Lease shall be amended by adding
thereto the following:
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Identification of Premises
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Rentable Square Feet |
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Lease Period |
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Base Year |
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Sixth Expansion
Premises
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50,862 |
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4/14/06-7/31/16 |
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2004 |
10. Base Rent .
Section 1.03(H) of the Lease entitled Base Rent, and Section
1.03(I) of the Lease entitled Monthly Installments of Base Rent,
are hereby amended by adding the following:
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(a) |
Original Premises, Expansion Premises, Second Expansion
Premises, Third Expansion Premises, Fourth Expansion Premises, and
Fifth Expansion Premises Base Rent . In addition to all other
Base Rent to be paid by Tenant under the Lease for the Original
Premises, Expansion Premises, Second Expansion Premises, Third
Expansion Premises, Fourth Expansion Premises, and Fifth Expansion
Premises, Tenant shall also pay Base Rent for said Original
Premises, Expansion Premises, Second Expansion Premises, Third
Expansion Premises, Fourth Expansion Premises, and Fifth Expansion
Premises during the extended lease term, payable monthly in
advance, without demand, deduction or set-off, in accordance with
the following schedule: |
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Period
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Rentable
Square Feet |
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Lease Rate |
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Annual Payment |
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Monthly
Payment |
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(8/1/09 – 7/31/10)
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75,477 |
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$ |
19.00/rsf/year |
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$ |
1,434,063.00 |
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$ |
119,505.25 |
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(8/1/10 – 7/31/11)
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75,477 |
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$ |
19.50/rsf/year |
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$ |
1,471,801.56 |
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$ |
122,650.13 |
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(8/1/11 – 7/31/12)
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75,477 |
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$ |
20.00/rsf/year |
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$ |
1,509,540.00 |
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$ |
125,795.00 |
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(8/1/12 – 7/31/13)
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75,477 |
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$ |
21.00/rsf/year |
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$ |
1,585,017.00 |
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$ |
132,084.75 |
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(8/1/13 – 7/31/14)
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75,477 |
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$ |
22.00/rsf/year |
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$ |
1,660,494.00 |
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$ |
138,374.50 |
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(8/1/14 – 7/31/15)
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75,477 |
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$ |
23.00/rsf/year |
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$ |
1,735,971.00 |
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$ |
144,664.25 |
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(8/1/15 – 7/31/16)
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75,477 |
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$ |
24.00/rsf/year |
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$ |
1,811,448.00 |
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$ |
150,954.00 |
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(b) |
Sixth Expansion Premises Base Rent . In addition to the
Base Rent payable with respect to the Original Premises, the
Expansion Premises, the Second Expansion Premises, the Third
Expansion Premises, the Fourth Expansion Premises, beginning on the
Sixth Expansion Premises Commencement Date Tenant shall also pay
Base Rent for the Sixth Expansion Premises, payable monthly in
advance, without demand, deduction or ser-off, in accordance with
the following schedule: |
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Period
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Rentable
Square Feet |
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Lease Rate |
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Annual Payment |
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Monthly
Payment |
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(4/14/06 – 7/31/07)
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50,862 |
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$ |
16.70/rsf/year |
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$ |
849,395.40 |
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$ |
70,782.95 |
* |
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(8/1/07 – 7/31/08)
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50,862 |
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$ |
17.20/rsf/year |
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$ |
874,826.40 |
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$ |
72,902.20 |
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(8/1/08 – 7/31/09)
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50,862 |
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$ |
17.70/rsf/year |
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$ |
900,257.40 |
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$ |
75,021.45 |
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(8/1/09 – 7/31/10)
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50,862 |
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$ |
18.20/rsf/year |
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$ |
925,688.40 |
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$ |
77,140.70 |
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4
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(8/1/10 – 7/31/11)
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50,862 |
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$18.70/rsf/year |
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$ |
951,119.40 |
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$ |
79,259.95 |
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(8/1/11 – 7/31/12)
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50,862 |
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$19.70/rsf/year |
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$ |
1,001,981.40 |
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$ |
83,498.45 |
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(8/1/12 – 7/31/13)
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50,862 |
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$21.00/rsf/year |
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$ |
1,068,102.00 |
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$ |
89,008.50 |
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(8/1/13 – 7/31/14)
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50,862 |
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$22.00/rsf/year |
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$ |
1,118,964.00 |
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$ |
93,247.00 |
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(8/1/14 – 7/31/15)
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50,862 |
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$23.00/rsf/year |
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$ |
1,169,826.00 |
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$ |
97,485.50 |
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