Exhibit 10.1.6
XXXXX CENTER
SECOND LEASE OF ADDITIONAL OFFICE SPACE
DATE: August 4, 1997
BETWEEN: ST. XXXX PROPERTIES, INC.
000 Xxxxxx Xxxxxxxx
000 Xxxxxx Xxxxxx Xxxxx
Xxxxxxxxxxx, XX 00000 ("Landlord")
AND: Advanced Telecommunications, Inc.
000 Xxxxxx Xxxxxx Xxxxx
Xxxxx 000
Xxxxxxxxxxx, Xxxxxxxxx 00000 ("Tenant")
IN RESPECT OF PREMISES IN: Peavey Building, Minneapolis, Minnesota
LANDLORD AND TENANT hereby agree as follows:
1. In this Second Lease of Additional Space:
(a) "Building" means Peavey Building located in the city of Minneapolis
(b) "Prime Lease" means the lease between Landlord and Tenant dated
August 14, 1996 as amended by the First Amendment of lease dated
September 5, 1996, covering 3,737 square feet in the Building.
(c) "Term" means that period of time commencing August 15, 1997 and
terminating upon thirty (30) day notice from either party.
(d) "Additional Space" means 1,522 square feet of space on the Fourth
floor of the Building, as shown crosshatched on Exhibit 1 hereof.
(e) "Rent" means $1,200.00 during each month of the Term.
(f) All other words and phrases, unless otherwise defined herein, have
the meanings attributed to them in the Prime Lease.
1
2. Landlord hereby demises and leases the Additional Space to Tenant, and
Tenant accepts the lease of the Additional Space to have and to hold
during the Term, on the same terms and conditions as are contained in the
Prime Lease except as herein otherwise provided, and expressly excepting
the following:
(a) Rent - Tenant shall pay the Rent to Landlord in advance in equal
monthly payments at the times and in the manner as rental payments
are to be made pursuant to the Prime Lease.
(c) Condition of Additional Space - Tenant shall be deemed to have
examined and accepted the Additional Space in the condition as of
the date hereof, and no tenant or other allowance shall be paid by
Landlord to Tenant in respect of the Additional Space.
(d) Inapplicable Clauses - The following clauses of the Prime Lease
Article 4.02, 4.06 and 6.02 shall not be applicable to this Lease.
(e) Default - Any default by Tenant under the Prime Lease shall be
deemed to be a default hereunder, and any default hereunder shall be
deemed to be a default under the Prime Lease.
(f) Termination - If the Prime Lease terminates for any reason
whatsoever, this Lease shall terminate on the same date.
(g) Occupancy Costs - Tenant shall pay as additional rent Occupancy
Costs in respect of the Additional Space at the times and in the
manner as payments of Occupancy Costs are to be made pursuant to the
Prime Lease.
2
Except as specifically provided herein, the terms and conditions of the Prime
Lease are confirmed and continued in full force and effect.
This Lease shall be binding on the heirs, administrators, successors and assigns
(as the case may be) of the parties hereto.
IN WITNESS OF THIS LEASE Landlord and Tenant have properly executed it as of the
date set out on page one.
LANDLORD: TENANT:
ST. XXXX PROPERTIES, INC.
By: By: /s/ Xxxxxxx X. Xxxxxxx
-------------------------------- -------------------------------
R. Xxxxxxx Xxxxxxx
Vice President Asset Management Its: Treasurer
Xxxxxxx X. Xxxxxxx
------------------------------------ -----------------------------------
Date Executed Please Type Signature
8/8/97
-----------------------------------
Date Executed
-----------------------------------
Witness to the signature of Tenant
if not incorporated.
3
Exhibit 1
[GRAPHIC OMITTED]
September 3, 1997
TO: Advanced Telecommunications, Inc.
FROM: ST. XXXX PROPERTIES, INC.
Madison Marquette Realty Services
The Managing Agent
RE: Leasing Space In Xxxxx Center
--------------------------------------------------------------------------------
Delivery Date: October 1, 1997.
Premises: Approximately 9528 rentable square feet (approximately
8507 usable square feet) of office space on the twelfth
floor of the Peavey Building, as shown on the attached
plan.
Term: Five (5) years commencing October 1,1997 and expiring
September 30, 2002.
Annual Net Rent: The annual net rate per rentable square foot for each
lease year will be as follows:
Year Net Rate
---- --------
1 $10.00
2 $10.00
3 $11.50
4 $13.00
5 $13.00
Occupancy Costs: In addition to the Annual Net Rent, tenant will pay a
proportionate share of the building's operating costs
and real estate taxes "Occupancy Costs." Such
proportionate share of Occupancy Costs will be paid
monthly on an estimated basis and adjusted at the end of
each calendar year. The 1997 estimate of Occupancy Costs
is $8.69 per rentable square foot, plus electricity
consumed by tenant in its own space.
Tenant Improvements: Landlord will buildout the Premises in accordance with a
mutually approved plan using building standard
materials. Landlord will contribute up to $8.00 per
square foot leased ("Landlord Contribution") to offset
the cost of tenant improvements to the Premises. All
costs incurred by Landlord in excess of Landlord's
Contribution will be paid by tenant upon invoice from
Landlord.
Use Of Premises: The Premises shall be used and occupied
only for general office use.
Tenant Inducements: Tenant's current lease for 4261
rentable square feet which expires September 30, 2001
would be terminated and a new lease would be prepared on
this proposal.
Qualification Of
Proposal: This proposal assumes no outside brokerage commissions
will be paid by landlord for the leasing of this space.
Building Management: Madison Marquette Realty Services ("Madison Marquette")
was formed in 1995 by the merger of Madison Realty
Partnership and Marquette Partners. Madison Realty
Partnership was a Cincinnati based real estate group
involved in acquisition and redevelopment of commercial
properties. Marquette Partners was a Minneapolis
based real estate company providing a full
range of real estate services including asset
management, property management, leasing & marketing to
owners and investors of real estate.
Today, Madison Marquette is a nationally recognized real
estate company involved in virtually every aspect of
commercial real estate. Madison Marquette's current
property portfolio consists of 11,370,151 square feet in
retail and office properties in 12 states. The
composition of the portfolio is 37% regional shopping
centers, 25% community centers, 21% office and
industrial.
Building Ownership: St. Xxxx Properties, Inc. is a wholly owned subsidiary
of the St. Xxxx Fire and Marine Insurance Company which
is the principal operating subsidiary of The St. Xxxx
Companies, Inc. The St. Xxxx Companies commemorated
their 140th anniversary in 1993. St. Xxxx Properties,
Inc. was established in 1981 to acquire real estate
investments on behalf of St. Xxxx Fire and Marine
Insurance Company.
The mission of St. Xxxx Properties is to diversify the
general investment portfolio of St. Xxxx Fire and Marine
by investing in real estate and to achieve a longer term
total rate of return which is competitive with that
provided by other investments. As of December 31, 1995,
St. Xxxx Properties had invested $700 million in 20
different projects across the United States in such
major cities as Minneapolis, New York, Washington D.C.,
Atlanta, Chicago, Denver, Los Angeles, and San
Francisco.
Offer Expiration: The business terms as offered in this proposal will
expire thirty (30) days from the date of this proposal.
Not Binding: This proposal is not contractual in nature. Neither
party shall be bound to the other unless and until a
formal written agreement of lease (or amendment of
lease) in form and substance satisfactory to all parties
is concluded.
Memo
To: Xxxx Xxxxxxx
From: Xxxxx Xxxxxx
RE: Lease Proposal
Brochure of proposal note
Current Premises 3737 RSF
Additional Premises 528 RSF
----
Total SF 4265 RSF
Net Rata
9/15/96 - 9/30/97 $6.00
10/1/97 - 9/30/98 $7.00
10/1/98 - 9/30/99 $9.00
10/1/99 - 9/30/01 $12.00
Any net over term = $9.20/RSF
Net Rent Recapture
$9.20 (avg Face Rate) - of 6.00 (Actual Face Rate) =
$3.20/of for previous 9/15/96 through 9/30/97 =
$3.20x4265 = $13,648.00
----------
Unamortized Tenant Improvements @ 10%, 60.5 months =
$705.32/month x 48 months (surrendered term) = $33,855.00
----------
Landlords Recapture of unpaid cost though Rent = $47,503.30
$47,503 amort @ 10%, 60 months = $12,011.58/yr
$12,011.58 / 9528 = $1.26/of/yr
STANDARD NET Rates Being Achieved in the P.U. Building Area
$9.00 for 70 months 9.00 + 1 = 10
12.00 for 30 months 12.00 + 1 = 13
[LETTERHEAD OF MADISON MARQUETTE REALTY SERVICES]
March 7, 1997
Mr. Xxxx Xxxxxxx
Advanced Telecommunications, Inc.
000 Xxxxxx Xxxxxxxx
000 Xxxxxx Xxxxxx Xxxxx
Xxxxxxxxxxx, XX 00000
RE: Lease of Additional Office Space
Dear Xxxx:
Enclosed is one (1) fully-executed copy of the Lease of Additional Office Space
between Advanced
Telecommunications, Inc. and St. Xxxx Properties, Inc.
If you have any questions, please call.
Thank you.
Sincerely,
MADISON MARQUETTE REALTY SERVICES, L.P.
As Managing Agent for St. Xxxx Properties, Inc.
/s/ Xxxxxxx X. Xxxxxx
Xxxxxxx X. Xxxxxx
Vice President
Office and Industrial Properties Division
Enc.: lease of additional office space (1)
