SECOND AMENDMENT TO LEASE
Exhibit 10.20
SECOND AMENDMENT TO LEASE
Landlord:
|
ORSETT/I-17 LLC, an Arizona limited liability company | |
Tenant:
|
EFTC Operating Corp., a Delaware corporation | |
Date:
|
April 3, 2007 |
RECITALS
A. Landlord and Tenant entered into that certain Lease dated March 23, 1999 and the First
Amendment to Lease dated May 10, 1999 (the “Lease”) concerning certain premises in the
Building known as Phoenix Northgate located in the City of Phoenix, County of Maricopa, State of
Arizona and more particularly described in the Lease.
B. Landlord and Tenant now desire to modify and amend the Lease as provided in this Second
Amendment to Lease (“Amendment”).
NOW, THEREFORE, for the mutual covenants contained herein and for other valuable
consideration, the receipt and adequacy of which is hereby acknowledged, Landlord and Tenant hereby
agree as follows:
AGREEMENT
1. Recitals. The Recitals set forth above are incorporated into this Amendment by
this reference and are hereby stipulated by Tenant and Landlord to be true and correct.
2. Definitions. All capitalized terms used as defined terms herein which are not
otherwise defined herein shall have the meaning ascribed to them in the Lease.
3. Term. The term of the Lease is scheduled to terminate on July 31, 2007, and
Landlord and Tenant hereby agree to extend the term of the Lease for a period of twenty-four (24)
months beginning on August 1, 2007, and ending on July 31, 2009 (the “Extended Term”).
4. Basic Rent. Tenant shall pay as Basic Rent during the Extended Term as follows:
Months 1-24 $69,436.50 per month NNN ($0.70/sf/mo NNN)
5. Address. For purposes of Landlord’s and Tenant’s Address for Notices, the following addresses shall
be used:
| If to Landlord: | Orsett/I-17 L.L.C. | |||
| c/o Orsett Properties, Ltd. | ||||
| 0000 X. Xxxxxx Xxxx, Xxxxx 000 | ||||
| Xxxxxxx, XX 00000 | ||||
| Attn: Legal | ||||
With a Copy to:
| Orsett Properties, Ltd. 00 Xxxxxxx Xxxxxx, Xxxxx X-00 Xxxxxxxxx, XX 00000 |
||
If to Tenant:
|
EFTC Operating Corp | |
| 0000 Xxxx Xxxxxxxxx Xxxx | ||
| Xxxxxxx, Xxxxxxx 00000 | ||
| Attention: CFO |
6. Renewal Option. Tenant shall have two (2) options to extend the Extended Term
of the Lease for a period of five (5) years each upon at least six (6) months’ written notice to
Landlord prior to the termination of the then current Lease Term, under the terms provided for in
Exhibit “I” with the following exception:
The first paragraph of section B shall be deleted in its entirety, and in its place and stead
the following provision shall be inserted:
B. The Basic Rent payable by Tenant for the first year of any Option Period shall be the
greater of (a) the Basic Rent payable by Tenant in the last month of the Extended Term or first
Option Period (as applicable), or (b) 85% of the then-current “Market Rate” for the Leased
Premises, defined as the then-current fair market rental value (expressed as a per rentable square
foot monthly rental rate) for comparable, fully improved and not subject to any landlord
concessions, office properties in the Phoenix metropolitan area at the expiration of the Extended
Term of the first Option Period, as applicable. Once the Basic Rent for the first year of either
the first or second Option Period is established, that rent will increase by 3% each year during
the remainder of such Option Period.
7. Existing Infrastructure. Landlord and Tenant agree that Tenant (at no additional
charge to Tenant) shall be allowed to continue to utilize the existing “data center” and telephone
room and associated equipment currently located in the adjacent office building that Tenant also
leases from Landlord at 0000 X. Xxxxxxxxx, Xxxxxxx, XX. In the event of a sale or lease of the
referenced building, Landlord shall provide Tenant a sixty (60) day written notice instructing it
to remove Tenant’s property, including its trade fixtures, furniture, equipment, improvements and
other personal property, and Tenant agrees to remove such property within this 60 day period at its
sole cost and expense.
8. Counterparts. This Amendment may be executed in any number of counterparts, each
of which will be deemed an original document, but all of which will constitute a single
document. Delivery of a signed counterpart by telephone facsimile transmission shall be
effective as delivery of a manually signed counterpart of this Amendment. Any party delivering an
executed counterpart of this Amendment by telephone facsimile shall also deliver a manually
executed counterpart of this
Amendment, but the failure to deliver a manually executed counterpart
shall not affect the validity, enforceability, and binding effect of this Amendment.
9. Governing Law. This Amendment shall be governed, construed and interpreted by the
laws of the State of Arizona.
10. Parties In Interest. Nothing in this Amendment (whether express or implied) is
intended to confer upon any person other than the parties hereto and their respective heirs,
representatives, successors and permitted assigns, any rights or remedies under or by reason of
this Amendment, nor shall any provision hereof give any entity any right of subrogation against or
action over or against any party.
11. Ratification. Except as expressly modified hereby, the Lease is hereby ratified
and confirmed in its entirety.
12. Interpretation. In the event of any conflict between the terms and provisions of
this Amendment and the Lease, the terms and provisions of this Amendment shall govern and control.
IN WITNESS WHEREOF, Landlord and Tenant have executed this Amendment as of the date first
appearing above.
| LANDLORD: | ||||||
| ORSETT/I-17 LLC, an Arizona limited liability company |
||||||
| By: | Xxxxxx/I-17 L.L.C., an Arizona limited liability company | |||||
| By: | /s/ Xxxx Xxxxxx | |||||
| Name: | Xxxx Xxxxxx | |||||
| Its: | Member | |||||
| TENANT: | ||||||
| EFTC Operating Corp., a Delaware corporation | ||||||
| By: | /s/ Xxxxx X. Xxxxx | |||||
| Name: | Xxxxx X. Xxxxx | |||||
| Its: | Vice President | |||||
