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EXHIBIT 10.20
FIRST AMENDMENT TO
LEASE
This FIRST AMENDMENT TO LEASE
(“First Amendment”) is made this 10th day of November
_____________, 2003 by and between Cypress Court Operating
Associates, Limited Partnership, a New Mexico limited partnership
(“Landlord”) and AROC, Inc., a Delaware corporation
(“Tenant”)
RECITALS:
WHEREAS, Landlord and Tenant entered
into that certain Lease Agreement dated June 7, 2001 covering
certain leased premises (“Premises”) containing 14,810
Rentable Square Feet on the second floor of the building
(“Building”) located at 110 Cypress Station Drive in
Houston, Harris County, Texas; and
WHEREAS, Tenant desires to, among other
things, reduce the Premises and renew the Term of the Lease early;
and Landlord and Tenant agree to amend the Lease to reflect
same;
AGREEMENTS:
NOW, THEREFORE, for and in consideration
of the sum of ten and no/100 dollars ($10.00) and other valuable
consideration paid by each party to the other, the receipt and
sufficiency of which is hereby acknowledged, Landlord and Tenant do
hereby amend the Lease as follows:
1. Article 2.b. -
Premises.
The area in the Premises shall be hereby
amended and reduced to include only the area on the second floor of
the Building (“Premises”) shown on Exhibit
“A” attached hereto and made a part hereof.
2. Article 2. d. - Tenant’s
Rentable Square Feet.
The Rentable Square Feet in the Premises
shall be hereby amended and reduced by the 4,234 Rentable Square
Feet on the second floor of the Building being given back to
Landlord by Tenant (“Give-back Space”), which when
deducted from Tenant’s existing 14,810 Rentable Square Feet
shall give the Premises an amended total area of 10,576 Rentable
Square Feet. The Give-back Space is shown on Exhibit
“B” attached hereto and made a part hereof. Tenant
agrees to vacate the Give-back Space in its entirety by no later
than the Commencement Date (as hereinafter defined) of the Renewal
Term (as hereinafter defined) and to leave said space in a
“broom-clean” condition.
In consideration for Landlord’s
agreement to reduce the Rentable Square Feet in the Premises prior
to the original Lease expiration date, Tenant agrees to pay
$10,000.00 to Landlord upon the Commencement Date of the Lease Term
as liquidated damages for all lost future rent that would have been
due and payable under the Lease had the reduction not
occurred.
3. Article 2. f. - Tenant’s
Proportionate Share.
Tenant’s Proportionate Share of
the Building shall be hereby amended to be 10.539% as of the
Commencement Date of the Renewal Term.
4. Article 2. h. - Commencement
Date.
The Commencement Date for the Renewal
Term shall be November 1, 2003.
5. Article 2. i. -
Term.
The Term of the Lease shall be hereby be
amended to be for a period of sixty (60) months commencing on
the Commencement Date and expiring October 31, 2008
(“Renewal Term”).
6. Article 2. j. - Base
Rent.
The Base Rent for the Renewal Term shall
be due and payable, monthly in advance, as follows:
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Period
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Ann. Rate/RSF |
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Monthly Rent |
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11/01/03-10/31/04
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$ |
14.75 |
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$ |
12,999.67 |
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11/01/04-10/31/05
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$ |
15.00 |
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$ |
13,220.00 |
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11/01/05-10/31/06
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$ |
15.25 |
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$ |
13,440.33 |
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11/01/06-10/31/07
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$ |
15.50 |
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$ |
13,660.67 |
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11/01/07-10/31/08
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$ |
16.00 |
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$ |
14,101.33 |
7. Article 2.n. - Expense Stop/Base
Year.
For the purpose of calculating any
increases in Operating Expenses during the Renewal Term, the
Building's actual 2004 calendar year Operating Expenses shall be
used as the Base Year, subject to adjustment as provided for
herein. Notwithstanding anything contained herein to the contrary,
Tenant shall not be liable for more than a six percent
(6%) increase in Operating Expenses in any calendar year
during the Renewal Term over the prior calendar year’s
Operating Expenses, subject to adjustment as provided herein,
excluding ad valorem taxes, utilities and liability/casualty
insurance.
8. Article 2. q. - Maximum
Construction Allowance.
Per the plan and specifications on
Exhibit “C” attached hereto and made a part hereof,
Landlord, at Landlord's cost and expense, agrees to make the
necessary leasehold improvements to separate the Premises from
leased space currently occupied by TexOil Resources, Inc. under a
separate lease agreement with Landlord, otherwise known as Suite
255. All leasehold improvements shall be made using
building-standard materials, unless otherwise noted on said plans
and/or specifications. Otherwise, Tenant accepts Premises in its
“as-is” condition. Tenant shall not be required to
restore the Premises to its original condition upon vacating the
Premises, excluding any damages caused by Tenant.
9. Article 2. u. - Parking
Spaces.
Landlord agrees to provide Tenant with
up to thirty-seven (37) unreserved, open parking spaces and
five (5) covered, reserved parking spaces at no additional
charge for the Renewal Term.
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Article 13. - Transfers. |
Notwithstanding any provisions of this
Article 13 to the contrary:
(a) Tenant shall have the right to
assign or sublet, without Landlord’s prior written consent,
to any parent, subsidiary or affiliate of Tenant, or to any
partnership, corporation or other business entity into or with
which Tenant shall be merged, converted or consolidated or to which
all of Tenant’s assets may be transferred, or to any entity
to which Tenant transfers its assets. For purposes of this
paragraph, “Affiliate” shall mean: (i) an entity
which owns fifty percent (50%) or more of the outstanding
common stock of Tenant, or (ii) an entity which has
fifty
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