EXHIBIT 10.13
FINAL
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North Carolina
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7/28/04 |
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FIRST AMENDMENT TO LEASE |
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Mecklenburg
County
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THIS FIRST AMENDMENT TO LEASE
, made and entered into this 5 day of August , 2004,
by and between HIGHWOODS REALTY LIMITED PARTNERSHIP , a
North Carolina Limited Partnership, hereinafter referred to as
“Landlord” and STRATEGIC OUTSOURCING, INC. , a
Delaware Corporation, hereinafter referred to as
“Tenant”. Tenant currently leases from Landlord office
space in the amount of approximately 16,878 rentable square feet
known as Suite 140 (the “Premises”), in what is
sometimes called the Fourteen Parkway Plaza Building (the
“Building”) located at 5260 Parkway Plaza Boulevard,
Charlotte, North Carolina.
W
I T N E S S E T H:
WHEREAS, Landlord and Tenant entered
in to a Lease (the “Lease”) dated May 26, 2000.
Said Lease is incorporated herein by reference as if set forth in
this First Amendment to Lease in full.
WHEREAS, Landlord and Tenant desire
amend the Lease in order to: expand the Premises by adding
approximately 2,367 rentable square feet (the “Expansion
Space”) so that after the addition of the Expansion Space the
Premises shall consist of approximately 19,245 rentable
square feet all located within the Building; to provide for the
renovation of the Premises; and to make certain other alterations
and modifications to the Lease.
NOW, THEREFORE, in consideration of
the mutual covenants and promises contained herein, and other good
and valuable consideration, Landlord and Tenant hereby agree as
follows:
1. Recitals. The
foregoing recitals are true and are incorporated into this First
Amendment.
2. Definitions.
Unless otherwise defined in this First Amendment, all capitalized
terms used in this First Amendment shall have the respective
meaning ascribed to them in the Lease.
3. Amendments.
Landlord and Tenant hereby agree that the Lease shall be amended as
follows:
3.1 Term. The
commencement date for the Expansion Space shall be
January 1, 2005 (“Expansion Space Commencement
Date”). The Term of the Lease (for all of the Premises
including the Expansion Space) is hereby extended for fifty-nine
(59) months and as such the Expiration Date of the Lease is
hereby amended to be December 31, 2010 .
3.2 Premises.
As of the Expansion Space Commencement Date, the rentable square
footage of the Premises is hereby amended by adding approximately
2,367 rentable square feet, such that the Premises shall contain a
total of approximately 19,245 rentable square feet. The
Premises, including the Expansion Space, is shown on
Exhibit A, attached hereto.
3.3 Base Rent.
Section 4.1 of the Lease, is hereby amended to provide that
commencing on the Expansion Commencement Date the minimum base rent
for the remainder of the Term shall be as set forth in the
following schedule:
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Rate |
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Annual |
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Monthly |
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From |
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Through |
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RSF |
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Amount |
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Installment |
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January 1,
2005
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December 31, 2005 |
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$ |
13.50 |
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$ |
259,807.56 |
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$ |
21,650.63 |
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January 1,
2006
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December 31, 2006 |
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$ |
13.50 |
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$ |
259,807.56 |
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$ |
21,650.63 |
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January 1,
2007
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December 31, 2007 |
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$ |
16.13 |
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$ |
310,421.88 |
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$ |
25,868.49 |
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January 1,
2008
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December 31, 2008 |
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$ |
16.45 |
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$ |
316,580.28 |
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$ |
26,381.69 |
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January 1,
2009
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December 31, 2009 |
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$ |
16.79 |
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$ |
323,123.52 |
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$ |
26,926.96 |
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January 1,
2010
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December 31, 2010 |
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$ |
17.14 |
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$ |
329,859.36 |
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S27,488.28 |
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If Landlord,
for any reason, cannot deliver possession of the Expansion Space to
Tenant on the Expansion Space Commencement Date, then the Expansion
Space Commencement Date, Expiration Date, and all other dates that
may be affected by their change, shall be revised to conform to the
date of Landlord’s delivery of possession of the Expansion
Space to Tenant. Any such delay shall not relieve Tenant of its
obligations under this Lease (except however the minimum base rent
schedule set forth above in Section 3.3 shall not commence
until the delivery of possession of the Expansion Space), and
neither Landlord nor Landlord’s agents shall be liable to
Tenant for any loss or damage resulting from the delay in delivery
of possession. Unless otherwise specified in the Workletter
attached as Lease Addendum Number One, “delivery of
possession” of the Premises shall mean the earlier of: (i)
the date Landlord has the Expansion Space ready for occupancy by
Tenant as evidenced by a permanent or temporary Certificate of
Occupancy issued by proper governmental authority, or (ii) the
date Landlord could have had the Expansion Space ready had there
been no Delays attributable to Tenant.
Until the
Expansion Space Commencement Date Tenant shall continue to pay
Minimum Base Rent as provided in Section 4.1 of the
Lease.
3.4 Operating Expense
Stop. Effective as of the Expansion Space Commencement
Date, Lease Addendum Number Three “Expense Stop” of the
Office Lease Agreement shall be replaced with Exhibit B Base
Year Operating Expenses which is attached hereto and incorporated
herein by reference. Tenant shall remain liable for all
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obligations under the above referenced Lease Addendum Number Three
“Expense Stop” accuring up to the Expansion Space
Commencement Date.
3.5 Rent Payment
Address. Unless notified to the contrary by Landlord in
writing, Tenant shall send all Rent payments to Landlord at the
following address:
Highwoods
Properties, Inc.
P.O. Box 409400
Atlanta, Georgia 30384.
3.6 Access
Cards. Effective as of January 1, 2005, Landlord shall
provide an additional twelve (12) after hour access cards to
the Premises.
3.7 Tenant
Improvements. Landlord shall provide Tenant with One
Hundred Ninety Four Thousand Dollars and 00/100 ($194,000.00)
(the “Tenant Improvement Allowance”), to be used to
design, engineer, install, supply and otherwise to construct the
certain Tenant Improvements in the Premises. Such work shall be
completed in accordance with the general terms of the Workletter
attached hereto as Exhibit C. Landlord shall be entitled to
receive a Construction Supervision Fee equal to Two Thousand Three
Hundred Dollars ($2,300.00), which fee shall be deducted from the
Tenant Improvement Allowance. The scope of the improvements shall
include: construction of the Expansion Space, renovations to
Tenant’s existing Premises, relocating the common corridor,
providing a new entrance to the building (including any sidewalk
construction required to meet code) and installing a 125 KW 277/480
volt diesel generator (the “Diesel Generator System”).
The terms and conditions regarding installation, maintenance, use
and removal of the Diesel Generator System shall be as provided in
Exhibit C attached hereto.
3.8 Brokerage
Commissions.
(a) Broker
. Each party represents and warrants to the other that it
has not dealt with any real estate broker, finder or other person
with respect to this Lease in any manner, other than Chase
Monroe c/o Keystone Partners (the “Broker”).
(b) Landlord’s
Obligation . Landlord shall pay any commissions or
fees that are payable to the Broker with respect to this Lease
pursuant to Landlord’s separate agreement with the
Broker.
(c) Indemnity
. Each party shall indemnify and hold the other party
harmless from any and all damages resulting from claims that may be
asserted against the other party by any other broker, finder or
other person (including, without limitation, any substitute or
replacement broker claiming to have been engaged by indemnifying
party in the future), claiming to have dealt with the indemnifying
party in connection with this Lease or any amendment or extension
hereto, or which may result in Tenant
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leasing other
or enlarged space from Landlord. The provisions of this Section
shall survive the termination of this Lease.
3.9 Option to
Renew. Tenant shall have the right and option to renew the
Lease (the “Renewal Option”) for one
(1) additional period of five (5) years (the
“Renewal Lease Term”); provided however such Renewal
Option is contingent upon the following (i) Tenant is not in
default at the time Tenant gives Landlord written notice of
Tenant’s intention to exercise the Renewal Option;
(ii) upon the Expiration Date or the expiration of any Renewal
Lease Term, Tenant has no outstanding default; (iii) no event
has occurred that upon notice or the passage of time would
constitute a default; (iv) Tenant is not disqualified by
multiple defaults as provided in the Lease; and (v) Tenant is
occupying the Premises. Tenant shall exercise the Renewal Option by
giving Landlord written notice at least one hundred eighty
(180) days prior to the Expiration Date. If Tenant fails to
give such notice to Landlord prior to said existing day period,
then Tenant shall forfeit the Renewal Option. If Tenant exercises
the Renewal Option, then during this Renewal Lease Term, Landlord
and Tenant’s respective rights, duties and obligations shall
be governed by the terms and conditions of the Lease.
The Base Rent for the Renewal Lease
Term shall be at a market rate to be negotiated at the time Tenant
gives notice of its exercise of the Renewal Option and if such rate
is not agreed upon within ninety (90) days of such notice,
then neither party shall have any obligations to the other under
this Renewal Option.
4. Amendment to
Lease. The foregoing is an addition and a modification to
the Lease. Unless otherwise defined herein, all capitalized terms
used in this First Amendment shall have the same definitions
ascribed in the Lease. Except as modified and amended by this First
Amendment, the Lease shall remain in full force and effect.
5. Exhibits. The
following Exhibits are attached hereto and incorporated herein by
reference:
Exhibit A
– Premises
Exhibit B — Base Year Operating Expenses
Exhibit C – Workletter
Exhibit D — Diesel Generator System
IN WITNESS WHEREOF, the parties
hereto have executed this First Amendment to Lease or have caused
their duly authorized representatives to execute same in three
(3) original counterparts, as of the day and year first above
written.
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LANDLORD
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TENANT |
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HIGHWOODS REALTY
LIMITED
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STRATEGIC OUTSOURCING, INC. |
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PARTNERSHIP
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a North Carolina
Limited Partnership
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a Delaware Corporation |
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| By: Highwoods Properties,
Inc. |
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| a Maryland
Corporation |
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| Its: General Pac |
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By:
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/s/ |
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By: |
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/s/ Michael W. Willson |
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Its: Senior Vice President |
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Its: Vice President of Finance |
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| Witness: /s/ Melissa J.
Davids |
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Witness: /s/ James T.
Cain |
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(signature) |
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(signature) |
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| Melissa J. Davids |
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James T. Cain |
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(print name) |
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5
EXHIBIT A
PREMISES
(ATTACHED)
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