1
EXHIBIT 10.40
XXXXXXX X. XXX XXXXX
P.O. BOX 1558
MIDDLEBURG, VA 20118
(000)-000-0000 OR (000)000-0000
February 5, 1999
Xx. Xxxx X Xxxxxxx, Chief Financial Officer
Didax, Inc.
0000 Xxxxxxxxxx Xxxxx
Xxxxx X
Xxxxxxxxx, XX 00000
RE: Letter of Occupancy
Didax Lease
Dear Xx. Xxxxxxx:
This letter is to confirm our recent verbal understanding and
agreement on the several open issues regarding your lease on Suite F at 0000
Xxxxxxxxxx Xxxxx, Xxxxxxxxx, Xxxxxxxx, xx follows:
1) Your occupancy on the front part of the premises (about 53.6%)
was as of October 1, 1999, as specified in the lease dated
August 10, 1998, and was the beginning of the lease term.
2) Your occupancy of the remainder of the space was effective as
of October 19, 1998.
3) The actual area of the demised premises is 6,115 square feet
(or 21.2% of the total building area), an increase of 128
square feet. The corrected area will be used in section 5.06 of
the lease and also calls for an adjustment (section 1 of the
lease) of the base rent, which for the first lease year is :
128 S.F. @ $8.50 = $90.67/month
4) The total construction cost at the time, excluding painting of
the original office space, cleaning the carpet and repairing
the exit lights, was:
X.X. Xxxxx - $ 95,662.75
Xxxxxxx Xxxxxx- $ 15,697.60
-----------
Total $111,360.35
5) We agreed that for purposes of adjusting the base rent per
section 4.7 of the lease that we would use a rounded
construction cost of $111,000, which produced an adjustment
of:
2
Rounded Cost $111,000
Less Base in Lease $ 65,000
--------
$ 46,000
46 X $20.65/1,000 = $949.90/month increase
6) Accordingly the adjusted original monthly rent is:
Original base rent in lease $5,577.89/month
Upward adjustment for size $ 90.67
Upward adjustment for cost $ 949.90
---------
Adjusted base rent $6,618.46
Plus 1998 share of common area
expenses (Section 5.06 of Lease) $ 623.65
---------
Total $7,242.11/month
Subsequent to our agreement above, two more invoices for $961.05
came from Xxxxxxx Xxxxxx. However, I have not seen the necessity of revising
the base rent as shown above.
7) The security deposit at the lease signing was $16,733.66,
subject to an increase of the amount the construction cost
exceeded $75,000. The security deposit was subsequently
increased by $36,762.85 to $53,496.51. This was done before
$402.50 was deducted from construction cost for carpet cleaning
and the additional bills for $961.05 came from Xxxxxxx Xxxxxx.
The net adjustment would have been a $558.55 increase, which I
have not requested.
I am pleased that the space is working out well for you and I hope
for your continued and increasing success.
If you have heating or air conditioning problems, I suggest calling
Xxxxx or Xxx at Air Control Services, Inc. 000-000-0000. They have done good
work for me at competitive prices, sometimes much lower than the competition.
Sincerely,
/s/ XXXXXXX X. XXX XXXXX
Xxxxxxx X. Xxx Xxxxx
