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Exhibit 10.7.4
THIRD AMENDMENT TO LEASE
This THIRD AMENDMENT TO LEASE (the "Amendment") is made and entered
into as of the 31st day of December 1997, 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 premisses 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 Less agree as follows:
AGREEMENT
1. TERM OF LEASE. Lessor and Lessee hereby agree that this Third
Amendment shall be effective on January 1, 1998 (the "Effective Date") and
shall, unless otherwise extended as provided herein, terminate on December 31,
2005.
2. OPTION TO EXTEND TERM. Lessee shall have an option to extend the
Lease for a period of two years, which option period shall commence on January
1, 2006 and shall terminate on December 31, 2007. 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
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"Addendum"). The rent for this option period shall be determined as a negotiated
market rate in accordance with Paragraph 9 of the Addendum. Such option is not
assignable notwithstanding anything to the contrary in the Lease.
3. BASIC MONTHLY RENT. From January 1, 1998 through December 31, 2001,
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 Eighteen Thousand Dollars ($18,000)
per month. Rent will be allocated at the rate of $1.03/sq.ft. for the lab and
office space and $0.3871/sq.ft. for the mezzanine storage area.
4. RENT ADJUSTMENT. The Base Monthly Rental shall be adjusted
effective January 1, 2002, 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, 1998 through December 31, 2001; 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 the material manner, then Lessor, in its sole discretion, may adopt a
substitute index or procedure which reasonable reflects and monitors consumer
prices.
5. SECURITY DEPOSIT. The security deposit for the Premises shall be
increased to the sum of $18,000.00. 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 ore 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.
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IN WITNESS WHEREOF, the parties hereto have entered into this Third
Amendment as of the date first set forth above.
LESSOR LESSEE
/s/ Xxxxxxxx X. Xxxxxx PSYCHEMEDICS CORPORATION, a
----------------------- Delaware corporationp
XXXXXXXX X. XXXXXX
/s/ Xxxxx X. Xxxxxx By: /s/ Xxxxxxx X. Xxxxxxx, Xx.
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XXXXX X. XXXXXX President and Chief
Executive Officer
/s/ Xxxxxx Xxx Xxxxxx
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XXXXXX XXX XXXXXX
/s/ Xxxxx Xxxxx Xxxxxx Xxxxxx
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XXXXX XXXXX XXXXXX (XXXXXX)
/s/ Xxxxxxxx X. Xxxxxx
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XXXXXXXX X. XXXXXX, AS
MANAGER OF EVERY/XXX LLC
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