FOURTH AMENDMENT TO LEASE
EXHIBIT 10.5.5
FOURTH AMENDMENT TO LEASE
This FOURTH AMENDMENT TO LEASE (the “Amendment”) is made and entered into as of the
24th day of May 2005, by and between XXXXXXXX X. XXXXXX, XXXXX X. XXXXXX, XXXXXX XXX
XXXXXX, XXXXX XXXXX XXXXXX XXXXXX and XXXXXXXX X. XXXXXX AS MANAGER OF EVERY/XXX LLC (collectively
“Lessor”) and PSYCHEMEDICS CORPORATION, a Delaware corporation (“Lessee”), with respect to that
Standard Industrial Lease dated October 6, 1992, and amended January 1, 1993 and December 16, 1994
(as amended, the “Lease”), pursuant to which Lessee leases from Lessor those certain premises
located at 0000 Xxxxxxxx Xxx, Xxx Xxxxxxx Xxxxxx, Xxxxxxxxxx and 0000 Xxxxxxxx Xxx, Xxx Xxxxxxx
Xxxxxx, Xxxxxxxxxx (collectively the “Premises”). Unless otherwise defined herein, all capitalized
terms used in this Amendment shall have the same meanings as are ascribed to such terms in the
Lease. Lessor and Lessee hereby acknowledge the following:
RECITALS
A. Lessor and Lessee desire to renew the Lease for the Premises and to otherwise modify the
Lease as provided herein.
B. Except as amended and modified, all terms of the Lease, as amended, shall remain in full
force and effect.
NOW, THEREFORE, in consideration of the mutual promises and covenants hereinafter set forth,
and other good and valuable consideration, receipt of which is hereby acknowledged, Lessor and
Lessee agree as follows:
AGREEMENT
1. Term of Lease. Lessor and Lessee hereby agree that this Fourth Amendment shall be
effective on January 1, 2006 (the “Effective Date”) and shall, unless otherwise extended as
provided herein, terminate on December 31, 2012.
2. Option to Extend Term. Lessee shall have an option to extend the Lease for a
period of three years, which option period shall commence on January 1, 2013 and shall terminate on
December 31, 2015. Lessee may exercise this option strictly in accordance with the procedures set
forth in Paragraph 9 of the Addendum to Standard Industrial Lease dated September 16, 1992 (the
“Addendum”) except that the rent for this option period shall be determined pursuant to the C.P.I.
adjustment outlined in Paragraph 4 below however calculated for the period of January 1, 2009
through December 31, 2012. Such option is not assignable notwithstanding anything to the contrary
in the Lease.
3. Basic Monthly Rent. From January 1, 2006 through December 31, 2008, the Base
Monthly Rental for the Premises will be due and payable in advance on the
first day of each month
at the rate of Twenty-Two Thousand Eighty-Two Dollars ($22,082) per month. Rent will be allocated
at the rate of $1.26/sq.ft. for the lab and office space and $0.4801/sq.ft. for the mezzanine
storage area.
4. Rent Adjustment. The Base Monthly Rental shall be adjusted effective January 1,
2009, by a percentage equal to the increase in the Consumer Price Index (U.S. Department of Labor
for all Urban Consumers, Los Angeles-Anaheim-Riverside California {1967=100} hereinafter “C.P.I.
Index”) for the period of January 1, 2006 through December 31, 2008; provided, however,
notwithstanding the C.P.I. Index, the Base Monthly Rental shall increase no less than three percent
(3%) per year compounded, nor more than five percent (5%) per year compounded.
If the Bureau of Labor Statistics discontinues publication of the C.P.I. Index, publishes the
C.P.I. Index less frequently, or alters the C.P.I. Index in a material manner, then Lessor, in its
sole discretion, may adopt a substitute index or procedure with reasonably reflects and monitors
consumer prices.
5. Security Deposit. The security deposit for the Premises shall be increased to the
sum of $22,082. When the rent is adjusted in accordance with Paragraph 4 above, the security
deposit will be adjusted in a like amount.
6. Incorporation. Except as otherwise expressly set forth herein, and to the extent
necessary to give effect to the provisions hereof, all terms and conditions of the Lease shall
remain unmodified and in full force and effect.
7. Counterparts. This Amendment may be executed in one or more counterpart copies,
and each of which, so executed, irrespective of the date of execution and delivery, shall be deemed
to be an original, and all such counterparts together shall constitute one and the same instrument.
The signature pages of one or more of the counterpart copies may be removed from such counterpart
copies and be attached to the same copy of this Amendment, which, with all signatures attached,
shall be deemed to be an original Agreement.
IN WITHNESS WHEREOF, the parties hereto have entered into this Fourth Amendment as of the date
first set forth above.
| LESSOR | LESSEE | |||||
| PSYCHEMEDICS CORPORATION, a | ||||||
| XXXXXXXX X. XXXXXX | Delaware corporation | |||||
| By: | ||||||
XXXXX X. XXXXXX
|
Xxxxx X. Xxxxxx Vice President and Chief Financial Officer |
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XXXXXX XXX XXXXXX |
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XXXXX XXXXX XXXXXX XXXXXX |
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XXXXXXXX X. XXXXXX, AS MANAGER OF EVERY/XXX LLC |
