EXHIBIT 10.28a
LEASE AMENDMENT
THIS, AMENDMENT is made the 22nd day of July, 1998, between Red Circle LLP,
hereinafter called "Landlord" and Chronimed, Inc., hereinafter called "Tenant".
Whereas, by Lease dated November 22, 1996, and Amendment No. 1 dated April 23,
1997 and Amendment No. 2 executed December 15, 1997, Landlord leased to Tenant
the real property together with the building and improvements then erected
thereon, located at Terrace Center, 00000 Xxx Xxxxxx Xxxxx, Xxxxx 000, in the
City of Minnetonka, in the State of Minnesota, 55305, all as more particularly
described in said Lease.
Therefore, in consideration of the mutual covenants herein contained, and other
good and valuable consideration, it is covenanted and agreed between the parties
that the aforesaid Lease be modified and amended as follows:
LEASE EXTENSION
The lease term will be extended through March 31, 2005.
LEASED PREMISES EXPANSION
The Leased Premises shall be revised to include an additional 14,617 square feet
of space, for a total square footage of 38,740, which additional space is shown
on the attached plan (Exhibit "A"). The expansion space shall become part of the
Leased Premises on September 1, 1998 when Base Rent and Additional Rent shall
commence.
RENT
The annual Base Rent as outlined in Section 2 of the Lease shall be revised to
the following schedule:
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TERM ANNUAL BASE RENT MONTHLY BASE RENT
------------------------- -------------------------- ---------------------------
------------------------- -------------------------- ---------------------------
9/1/98 - 8/31/2000 $332,942.00 $27,745.16
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9/1/00 - 3/31/02 $340,250.00 $28,354.16
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4/1/02 - 8/31/02 $373,787.00 $31,148.92
------------------------- -------------------------- ---------------------------
9/1/02 - 3/31/05 $381,096.00 $31,758.00
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ADDITIONAL RENT
The Tenant's proportionate share for allocation purposes as called for in
Section 7 of the Lease shall be revised to 39.07% (38,740/99, 150).
PAYMENTS TO TENANT
Landlord agrees to pay to Tenant an aggregate amount of $232,000.00 upon the
mutual execution of this Amendment. Such amount must be paid prior to this
Amendment being enforceable. Tenant acknowledges that it accepts the space in an
"as-is" condition including the carpet, ceiling, plumbing, HVAC system, lights,
walls, electrical services and outlets. It is acknowledged that the figure of
$232,000.00 is constituted by three conceptually different and separate amounts.
The first of these is $110,000.00, which offsets remaining rent and leasehold
improvement amortization at the Tenant's former office at 00000 Xxxxxxxxx Xxxxx
in Minnetonka. The second is $50,000.00, which offsets twelve forward month's
estimated real estate: service fees to be paid to United Properties for ongoing
consultative real estate services. The third is $72,000.00, which is a tenant
improvement allowance to allow Tenant to improve the space to facilitate
occupancy.
PARKING
Tenant shall have the right to use 3.3 stalls per 1,000 square feet of
additional space leased in this Amendment or approximately 48 additional stalls.
This Amendment shall supersede and contrary or conflicting information contained
in the original Lease as stated above. All other terms and conditions shall
remain in full force and effect
AMENDMENT #2 TO LEASE
BETWEEN
RED CIRCLE L.L.C. AND
CHRONIMED, INC.
Red Circle L.L.C. (as Landlord)and Chronimed, Inc. (as Tenant) entered into a
Lease for Suite 300 at 00000 Xxx Xxxxxx Xxxxx, Xxxxxxxxxx; XX, dated November
22, 1996, and further mended by an unnumbered Amendment dated April 25, 1997,
which deals with the Lease for the storeroom. That unnumbered amendment is
hereby called Amendment number one.
Whereas, Landlord and Tenant hereby wish to amend the Lease.
Therefore in consideration of the mutual covenants, promises and agreements
contained in the LEASE, the parties agree as follows:
Paragraphs 33, Additional Space, and 34, Right to Expand, are hereby deleted in
their entirety, and are of no further effect.
This Amendment is contingent upon the execution of a new Lease by Chronimed for
approximate square feet of additional space in the subject Building.
The signatories below warrant that they are duly authorized to enter into this
Amendment #2 to LEASE:
IN WITNESS WHEREOF, the parties hereto have caused this Amendment #2 to Lease to
be executed:
LANDLORD TENANT
RED CIRCLE L.L.C. CHRONIMED, INC.
Xxxxxx X. Xxxxxxxx Xxxxxx X. Xxxxx
Its General Partner Its Senior Vice President and Chief
Financial Officer
Date ________________________ Date _______________________________
AGREEMENT
CHRONIMED WANTS MBY TO USE THE SAME CARPET CHRONIMED IS USING IN CHRONIMED'S
CURRENT SPACE FOR THE 14,000 SQUARE FOOT VACANCY IN THE LOWER FLOOR OF THE
CHRONIMED BUILDING.
THE COST OF THE CARPET MBY HAD PLANNED TO USE WAS $19,550. THE
UPGRADED CARPET COST IS $24,718. THIS AN ADDITIONAL COST OF $5,168.
MBY AGREES TO INSTALL THE UPGRADED CARPET. CHRONIMED AGREES TO PAY 50% OF THE
ADDITIONAL COST NOW, WHICH IS $2,584.
(NORM: PLEASE CONSIDER THIS AGREEMENT AS YOUR INVOICE.)
IF CHRONIMED LEASES THE VACANCY AFTER A TWO (2) YEAR LEASE IS OVER WITH ANOTHER
TENANT, CHRONIMED WILL PAY MBY $10,000 FOR THE CARPET OR GIVE MBY A CREDIT OF
THIS AMOUNT AGAINST A LEASE NEGOTIATION.
NORMAL WEAR AND TEAR IS ACCEPTABLE TO CHRONIMED AT THE END OF THIS 2 YEAR LEASE.
CHRONIMED: MBY COMPANIES FOR
RED CIRCLE LLP
By Xxxx Xxxxx By Xxx Xxxxxxxx
Its SVP & CFO Its General Partner
Date __________________________ Date _________________________
LEASE AMENDMENT
This Amendment is made the 23rd day of April, 1997 between Red Circle LLP, a
Minnesota Partnership, hereinafter called "Landlord", and Chronimed, Inc., a
Minnesota Corporation, hereinafter called "Tenant".
Whereas, by Lease dated November 22, 1996, Landlord leased to Tenant the real
property together with the building and improvements then erected thereon,
located at 00000 Xxx Xxxxxx Xxxxx, Xxxxx 000, in the City of Minnetonka, State
of Minnesota, all as more particularly described in said Lease.
Therefore, in consideration of the mutual covenants herein contained and other
good and valuable consideration, it is covenanted and agreed between the parties
that the aforesaid Lease be modified and amended as follows:
ADDITIONAL LEASED SPACE
Effective June 1, 1997, 502 sq.ft. of storage area will be added to Tenant's
leased premises and will be taken as built. The storage area is identified as
Area E as represented in the original Lease in Exhibit "A" and "B" space plans.
LEASED PREMISES
Square footage of the leased premises shall be changed from 23,621 sq.ft. to
24,123 sq.ft.
BASE RENT
Effective June 1, 1997, Base Rent shall be $16,173.34 per month.
ADDITIONAL PARKING STALLS/PICNIC AREA
Landlord will construct additional parking area, including picnic area, as
detailed on the attached plan prepared by The Design Partnership and referred to
as Exhibit "A" of this Lease Amendment. Landlord agrees to provide the parking
and picnic area under the same terms and conditions as contained in the original
Lease under Paragraph 5, Parking and Common Areas. Landlord has estimated the
cost of the additional parking to be $123,845.00. Upon completion of the
additional parking stalls and picnic area, Landlord will provide Tenant with a
copy of all invoices covering all construction costs involved in creating
additional parking stalls plus a 10% overhead fee.
Tenant has agreed to construct and pay for all tenant improvements as detailed
in Exhibit "C" of the original Lease as Landlord improvements. In exchange for
Tenant completing all tenant improvements, Landlord will apply a credit of
$103,386 to the cost of constructing the parking lot addition. Any net
difference between the credit for tenant improvements and the cost of
constructing the additional parking lot and picnic area, will be paid by Tenant
to Landlord within 30 days of invoice by Landlord.
Lease Amendment
Red Circle LLP - Chronimed, Inc.
April 23, 1997
Page 2
This Amendment shall supersede any contrary or conflicting information contained
in the original Lease between Landlord and Tenant dated November 22, 1996. All
other terms and conditions of the original Lease shall remain in full force and
effective.
RED CIRCLE LLP CHRONIMED, INC.
By By
Its Its
Date Date
