EXHIBIT 10.16
THIRD AMENDMENT TO LEASE
AGREEMENT
THIS THIRD
AMENDMENT TO LEASE AGREEMENT (the “Third Amendment”),
is made this 3 rd day of June, 2008, by 3280 PEACHTREE I
LLC (as “Landlord”) and AMERICAN TELECONFERENCING
SERVICES, LTD. D/B/A PREMIERE GLOBAL SERVICES (as
“Tenant”).
W I T N E S S E T H:
WHEREAS, Landlord
and Tenant did enter into that certain Lease Agreement, dated as of
October 28, 2005 (the “Original Lease”), for space
(consisting of all of the 9 th floor, containing 23,684
square feet of Rentable Floor Area) in that certain building
located at 3280 Peachtree Road, Atlanta, Georgia (the
“Building”), as such space is more particularly
described in the Original Lease (the “Demised
Premises”).
WHEREAS, Landlord
and Tenant did enter into that certain First Amendment to Lease
Agreement, dated as of July 31, 2006 (the “First
Amendment”).
WHEREAS, Landlord
and Tenant did enter into that certain Second Amendment to Lease
Agreement, dated as of March 15, 2007 (the “Second
Amendment”).
WHEREAS, the
Original Lease, as modified by the First Amendment and Second
Amendment, is herein collectively referred to as the
Lease.
WHEREAS, Landlord
and Tenant desire to modify and amend the Lease, in the manner and
for the purposes herein set forth.
NOW, THEREFOR, for
and in consideration of the mutual premises, and for Ten and No/100
Dollars ($10.00) and other good and valuable consideration, paid by
the parties hereto to one another, the receipt and sufficiency of
which are acknowledged by the parties hereto, the parties hereto
hereby covenant and agree as follows:
1.
Defined Terms . All capitalized terms not defined herein
shall have the same meaning as set forth in the Lease.
2.
Increase in Size of Demised Premises . Landlord hereby
leases and rents to Tenant and Tenant hereby leases and rents from
Landlord, an additional 7,818 square feet of Rentable Floor Area on
the eighth (8 th ) floor of the Building (the “8
th Floor Expansion Space”), known as “Suite
820”, as shown on Exhibit “A” , attached
hereto and by this reference incorporated herein. The square feet
of Rentable Floor Area of the Demised Premises, which was 23,684
square feet of Rentable Floor Area, shall be, from and after the
“8 th Floor Commencement Date” (as that term
is herein defined), 31,502 square feet of Rentable Floor Area. The
8 th Floor Expansion Space shall be
and be deemed to be a part of the
Demised Premises leased under the Lease, on the terms set forth
therein, except to the extent of the specific terms as set forth in
this Third Amendment.
3.
Base Rental Due from Tenant . (a) Base Rental shall be due
from Tenant, and Tenant hereby covenants and agrees to pay Base
Rental, as follows:
(a)
For the 8 th Floor Expansion Space, containing 7,818
square feet of Rentable Floor Area
|
8 th Floor Commencement
Date - August 31, 2009
|
$23.75 per square foot of Rentable
Floor Area
|
|
September 1, 2009 - August 31,
2010
|
$24.40 per square foot of Rentable
Floor Area
|
|
September 1, 2010 - August 31,
2011
|
$25.07 per square foot of Rentable
Floor Area
|
|
September 1, 2011 - August 31,
2012
|
$25.76 per square foot of Rentable
Floor Area
|
|
September 1, 2012 - August 31,
2013
|
$26.47 per square foot of Rentable
Floor Area
|
|
September 1, 2013 - August 31,
2014
|
$27.20 per square foot of Rentable
Floor Area
|
|
September 1, 2014 - August 31,
2015
|
$27.95 per square foot of Rentable
Floor Area
|
|
September 1, 2015 - August 31,
2016
|
$28.72 per square foot of Rentable
Floor Area
|
|
September 1, 2016 - August 31,
2017
|
$29.51 per square foot of Rentable
Floor Area
|
|
September 1, 2017 - August 31,
2018
|
$30.32 per square foot of Rentable
Floor Area
|
(b)
For the original Demised Premises, containing 23,684 square feet
of Rentable Floor Area
|
August 1, 2014 - July 31,
2015
|
$25.40 per square foot of Rentable
Floor Area
|
|
August 1, 2015 - July 31,
2016
|
$26.10 per square foot of Rentable
Floor Area
|
|
August 1, 2016 - July 31,
2017
|
$26.82 per square foot of Rentable
Floor Area
|
|
August 1, 2017 - July 31,
2018
|
$27.56 per square foot of Rentable
Floor Area
|
|
August 1, 2018 - August 31,
2018
|
$28.32 per square foot of Rentable
Floor Area
|
(c)
So long as no Event of Default then exists, no Base Rental shall be
due from Tenant for the 8 th Floor Expansion Space, for
the first three (3) months after the 8 th Floor
Commencement Date.
4.
Additional Rental . Tenant’s Additional Rental and
Tenant’s Forecast Additional Rental shall be charged to and
be due and payable from Tenant with respect to the 8 th
Floor Expansion Space and the Demised Premises leased under the
Lease, for the Term Addition, on the same terms and conditions as
is set forth in the Lease.
5.
Tenant Improvement Allowance and Other Improvements . (a)
Landlord shall provide to Tenant an allowance for the 8th Floor
Expansion Space of Forty-Five and No/100 Dollars ($45.00) per
square foot of Rentable Floor Area therein, or $351,810.00 in the
aggregate (the “8 th Floor Expansion Space
Allowance”). The 8 th Floor Expansion Space shall
be delivered to Tenant in its “as is, where is”
condition (except that Landlord shall cause such space to be in
compliance with any applicable laws, codes, regulations and
ordinances and shall cause any electrical, life safety, plumbing,
heating, ventilation and cooling systems serving the 8
th Floor Expansion Space to be in good working order),
in lieu of the condition set forth in the work letter attached as
Exhibit “D” to the Original Lease (the
“Original Work Letter”). Tenant’s build out of
and improvements of the 8 th Floor Expansion Space shall
be performed in accordance with and subject to the terms of the
Original Work Letter. The 8 th Floor Expansion Space
Allowance shall be paid to Tenant within thirty (30) days after
Tenant has presented to Landlord reasonable evidence of (a) any
hard or soft costs incurred by Tenant and relating to improvements
or alterations made or being made to the Demised Premises
(including, but not limited to, the 8 th Floor Expansion
Space or any other portion of the Demised Premises in the
Building), including, but not limited to, any such costs incurred
prior to the date of this Third Amendment, or (b) any hard or soft
costs incurred by Xpedite Systems, LLC, with respect to any
Building space leased by Xpedite Systems, LLC, including but not
limited to, any such costs incurred prior to the date of this Third
Amendment, or (c) any costs incurred by Tenant or Xpedite Systems,
LLC, for wiring or telecommunications installation, or (d) any
costs incurred by Tenant for furniture for the 8 th
Floor Expansion Space (but, with respect to this item (d), no more
than $70,362.00 may be allocated to and used for furniture in the 8
th Floor Expansion Space). Tenant shall have the right
to require payments of the 8 th Floor Expansion Space
Allowance on a monthly basis.
(b)
Landlord shall also provide an additional allowance of $236,840 for
work performed or to be performed by Tenant on the original Demised
Premises (the “Additional Allowance”). The Additional
Allowance shall be paid to Tenant within thirty (30) days after
Tenant has presented to Landlord reasonable evidence of (a) any
hard or soft costs incurred by Tenant and relating to improvements
or alterations made or being made to the Demised Premises
(including, but not limited to, the 8 th Floor Expansion
Space or any other portion of the Demised Premises in the
Building), including, but not limited to, any such costs incurred
prior to the date of this Third Amendment, or (b) any hard or soft
costs incurred by Xpedite Systems, LLC, with respect to any
Building space leased by Xpedite Systems, LLC, including but not
limited to, any such costs incurred prior to the date of this Third
Amendment, or (c) any costs incurred by Tenant or Xpedite Systems,
LLC, for wiring or telecommunications installation, or (d) any
costs incurred by Tenant for furniture for the 8 th
Floor Expansion Space (but, with respect to this item (d), no more
than $47,368.00 may be allocated to and used for furniture in the 8
th Floor Expansion Space). Tenant shall have the right
to require payments of the Additional Allowance on a monthly
basis.
(c)
Tenant shall, at Tenant’s sole cost and expense, run such
lines and pipes as are required so that Tenant can install, subject
to and as limited by applicable law, at Tenant’s sole cost, a
washer and dryer, in a location within the Demised Premises to be
provided by Tenant, but the location and methods of installation of
lines and pipes and the washer and dryer shall be subject to
Landlord’s reasonable consent, and shall otherwise subject to
the terms of the Lease and the
Original Work Letter (but there
shall be no fee due to Landlord as a part of the installation or
consent to the installation of the washer or dryer). The washer
must be placed in a tub with a drain and the dryer must be a
condensor clothes dryer such that no heat and no moisture shall be
exhausted within the Building, as no exterior ventilation for such
dryer is or will be permitted. The amount of water use associated
with the washer shall be sub-metered, using a sub-meter to be paid
for by Tenant, and Tenant shall pay for any water use by said
washer, within the time periods for payment required under the
Lease. To the extent that the electrical loads required to properly
operate such washer and dryer exceed the Building standard
electrical loads, then electrical usage of such shall also be
separately metered using a sub-meter paid for by Tenant, with
Tenant also paying for any extra electrical u