Exhibit 10.16
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AMENDMENT TO LEASE AGREEMENT
AGREEMENT, made this 5th day of November, 1997, by and between MILKSON
ASSOCIATES, LLC (hereinafter called Lessor) and ACCIPITER, INC. (hereinafter
called Lessee).
WITNESSETH:
WHEREAS, Lessor and Lessee entered into a written agreement of lease
bearing date of April 9, 1997 (hereinafter The Lease Agreement), whereby Lessor
leased to Lessee and Lessee rented from Lessor approximately 6,014 rentable
square feet in Xxxxx 000, 0000 Xxxx Xxxxxx Xxxx, located in the City of Raleigh,
Wake County, North Carolina, for the term of May 1, 1997 through April 30, 1999.
NOW, THEREFORE, for good and valuable consideration, the receipt and
sufficiency of which is hereby acknowledged, the parties hereto with the intent
to be legally bound, hereby agree as follows:
Tenant shall occupy the balance of the second floor of the building,
consisting of approximately an additional 6,231 rentable square feet for a total
of 12,245 rentable square feet in the following two phases.
1. Phase I:
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(a) Effective November 1, 1997 Lessee shall expand their premises to Suite
200 at 0000 Xxxx Xxxxxx Xxxx, Xxxxxxx, Xxxxx Xxxxxxxx. The premises
shall consist of approximately 2,832 rentable square feet, as shown in
Exhibit A.
(b) Effective November 1, 1997 through April 30, 1998 the following
monthly rent shall apply to Phase I portion of the premises: Three
Thousand, Four Hundred Twenty-two and 00/100 Dollars ($3,422.00) per
month (see Paragraph 5, Rent Schedule for total rent due), subject to
three percent (3%) escalator annually in May.
(c) The lease term for this space is November 1, 1997 through April 30,
2001. It is understood by both parties that the term of this space is
not concurrent with the term of the original space.
2. Phase II:
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(a) Effective May 1, 1998 Lessee shall further expand their premises at
Suite 200 at 0000 Xxxx Xxxxxx Xxxx, Xxxxxxx, Xxxxx Xxxxxxxx to include
an additional 3,399 rentable square feet, as shown in Exhibit B.
(b) Effective May 1, 1998 the following monthly rent shall apply to Phase
II of expanded premises: Four Thousand, One Hundred Seven and 13/100
Dollars ($4,107.13) per month (see Paragraph 5, Rent Schedule for
total rent due) subject to three percent (3%) escalator on anniversary
date of lease.
(c) The lease term for this space is May 1, 1998 through April 30, 2001.
It is understood by both parties that the term for this space is not
concurrent with the lease term of the original space.
3. Landlord Improvements:
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(a) Landlord agrees to improve elevator cab with new carpeting and paint.
(b) Landlord agrees to replace carpeting, paint, demolish walls and
construct new walls as needed by Tenant with a budget not to exceed
Ten Dollars ($10.00) per square foot or Sixty-two Thousand, Three
Hundred Ten and 00/100 Dollars ($62,310.00) for the total renovation
of Phase I and Phase II.
(c) Landlord will furnish architectural design and construction which
shall be included in the above budgeted number.
(d) Tenant is solely responsible for all costs associated with the
relocation of reception area and kitchen.
4. Signage:
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(a) Landlord agrees that Tenant may participate with other building
tenants in the expense of a monument sign to be erected at the street,
with Tenant's name receiving top billing on the sign, if Tenant so
desires.
(b) Landlord further agrees that Tenant may, at Tenant's expense, and on
the day that Tenant takes possession of the entire second floor, have
a sign placed on the exterior of the building reflecting the name of
Tenant's company.
(c) This sign must meet code requirements of the City of Raleigh and be
attached to the building in such a way as not to permanently damage
the building surface or structure.
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5. Rent Schedule:
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Annual Base Rent Monthly Base Rent
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Phase I: 2,832 RSF added
(Total 8,846 RSF)
11/1/97 - 4/30/98 $128,267.00 $10,688.92
Phase II: 3,399 RSF added
(Total 12,245 RSF)
5/1/98 - 4/30/99 $180,168.72 $15,014.06
5/1/99 - 4/30/00 $ 93,060.00 $ 7,755.00**
5/1/00 - 4/30/01 $ 95,851.80 $ 7,987.65**
* Includes three percent (3%) escalator.
** Lease term for original 6,014 square feet expires 4/30/99.
Except as expressly modified by this Amendment and as heretofore modified,
all terms and provisions of the Lease are hereby ratified and confirmed and
shall remain in full force and effect through the term of the Lease.
IN WITNESS WHEREOF, Lessor and Lessee have hereunto set their respective hands
and seals the day and year first above written.
WITNESS SEAL:
/s/ [signature illegible] /s/ [signature illegible]
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Milkson Associates, LLC, Lessor
WITNESS SEAL:
/s/ [signature illegible] /s/ [signature illegible]
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Accipiter, Inc., Lessee
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