SECOND AMENDMENT TO LEASE
Exhibit
10.11
SECOND
AMENDMENT TO LEASE
THIS
SECOND
AMENDMENT TO LEASE (the “Second Amendment”) is dated as of the 19 day
of
October, 2001, by and between CRESCENT BROOKDALE ASSOCIATES, LLC, a Georgia
limited liability company (the “Landlord”), successor to Crescent Resources,
LLC, the successor to Crescent Resources, Inc., and OUTBACK STEAKHOUSE, INC.,
a
Delaware corporation (the “Tenant”).
RECITALS
A.
Landlord
and Tenant entered into a certain Lease Agreement dated as of September 10,
1998, as amended by First Amendment dated June 14, 1999, (the “Lease”) with
respect to certain Premises described therein and containing 93,198 rentable
square feet of space located on the fourth and fifth floors of Corporate Center
One at International Plaza.
B.
Tenant
wishes to increase the size of the Premises by leasing 16,498 rentable square
feet of space on the third floor of the Building and Landlord is willing to
add
such space to the Premises subject to the terms and conditions described herein.
C.
Ariba,
Inc. (“Ariba”), another tenant in the Building, wishes to vacate the space to be
leased by Tenant and Landlord is willing to lease such space to Tenant on terms
and conditions described herein.
D.
Tenant
understands that this space expansion is contingent upon Landlord and Ariba
entering into a lease amendment regarding the space to be vacated by Ariba
on
terms and conditions acceptable to Landlord and that Landlord may cancel this
Second Amendment if the space is not vacated by Ariba.
AMENDMENT
NOW,
THEREFORE, in consideration of the premises and the mutual covenants contained
herein, Landlord and Tenant do hereby agree as follows:
1
1. Defined
Terms; Recitals.
Except
as otherwise set forth herein, all terms contained in this Second Amendment
shall have the same meaning ascribed to them in the Lease. The Recitals set
forth above are true and correct.
2. Space
Expansion.
Effective November 1, 2001, the Premises are hereby expanded to include the
space described on Exhibit A attached hereto located on the third floor of
the
Building (the “Expansion Space”). Such Expansion Space is agreed to contain
16,498 rentable square feet, therefore the Premises Net Rentable Area as
provided in the Lease Summary is increased to 109,696 square feet effective
November 1, 2001. The Commencement Date for the Expansion Space shall be
November 1, 2001, and shall expire November 30, 2005 (the “Expansion Space
Term”). Tenant shall have the right and option to extend the Expansion Space
Term by exercising its Renewal Option as described below. If Tenant does not
exercise its Renewal Option to extend the Expansion Space Term, then the Lease
shall terminate as to the Expansion Space on November 30, 2005.
3.
Base
Rental.
Base
Rental for the Expansion Space shall be waived for the month of November, 2001,
however Tenant shall have access to the Expansion Space beginning November
1,
2001, in order to prepare such Expansion Space for use and occupancy by Tenant.
Base Rental shall be payable by Tenant as to the Expansion Space at a different
rate per rentable square foot than is applicable to the original Premises.
Accordingly, Base Rental as to the Expansion Space containing Net Rentable
Area
of 16,498 square feet shall be payable from and after December 1, 2001, in
the
following annual and monthly rental amounts during the following Periods of
the
Expansion Space Term:
Annual
Rent Per
|
|||||
Period
|
Rentable
Square Foot
|
Monthly
Rent
|
|||
12/01/01
- 11/30/02
|
$24.46
|
$33,628.42
|
|||
12/01/02
- 11/30/03
|
$25.20
|
$34,645.80
|
|||
12/01/03
- 11/30/04
|
$25.95
|
$35,676.93
|
|||
12/01/04
- 11/30/05
|
$26.73
|
$36,749.30
|
Tenant
shall
pay Base Rental for the Expansion Space as described above in advance on the
first day of each month in addition to Base Rental due for the original Premises
as described in the Lease.
4.
Expense
Stops.
The
Basic Costs Expense Stop as to the Expansion Space shall be Seven and 00/100
Dollars ($7.00) per rentable square foot of the Expansion Space. Tenant shall
pay Landlord for increases in Basic Costs above the
2
Basic
Costs Expense Stop for the Expansion Space as described in Paragraph 7 of the
Lease. The Premises Electrical Expense Stop shall be seventy cents (70 cents)
per rentable square foot of the Expansion Space. Tenant shall pay electrical
expenses for the Expansion Space exceeding such Premises Electrical Expense
Stop
pursuant to Paragraph 13 of the Lease.
0.Xxxxx
Expansion Fee.
Landlord expects to receive a Space Reduction Fee from Ariba as consideration
for reducing the amount of space leased by Ariba in the Building. Provided
that
such Space Reduction Fee is paid to Landlord, then Landlord shall pay to Tenant
a fee in the amount Four Hundred Thirty Six Thousand Nine Hundred Ninety Five
and 00/100 Dollars ($436,995.00) (the “Space Expansion Fee”) as consideration
for Tenant’s expansion of the Premises to include the Expansion Space and to
assist Tenant in preparing such Expansion Space for use and occupancy by Tenant.
Such Space Expansion Fee shall be paid by Landlord to Tenant within ten (10)
days after the Commencement Date of the Expansion Space Term.
6.
Expansion
Space.
The
Expansion Space shall be accepted by Tenant “as is” and Landlord shall have no
obligation to construct or alter improvements in the Expansion Space. Tenant
may
make alterations to the Expansion Space pursuant to Paragraph 12 of the Lease.
Plans and specifications for such alterations shall be subject to Landlord’s
reasonable review and approval and the cost of such alterations shall be paid
by
Tenant.
7.
Parking.
During
the Expansion Space Term, Tenant shall be entitled to the use of additional
parking spaces at the rate of Five (5
parking
spaces for each one thousand (1,000) square feet of usable area of the Expansion
Space, including one (1) additional reserved parking space.
8.
Renewal
Option.
Tenant
shall have the option to renew this Lease as to the Expansion Space for one
(1)
Renewal Term commencing December 1, 2005, and expiring March 31, 2010, which
is
the expiration date of the Lease Term for the original Premises. Such Renewal
Term shall be subject to the provisions of the Lease and at the then current
market rental rate for renewal leases in Class A office buildings in the
Westshore Business District of Tampa, Florida, as such rental rate is reasonably
determined by agreement of Landlord and Tenant or determined by the
three-appraiser method described below if Landlord and Tenant cannot agree.
Tenant shall exercise such Renewal Option by written notice to Landlord given
no
later than December 1, 2004. If Landlord and Tenant, acting in good faith,
have
not, within thirty (30) days after such exercise, executed a renewal amendment
to the Lease which amendment states, inter alia,
the
rental rate applicable to the Expansion Space during the Renewal Term, then
Landlord and Tenant shall each select a MAT appraiser who, in turn, shall select
a third MAT appraiser. The three (3) appraisers shall determine by
majority
3
action
the market rental rate for renewal leases in Class A office buildings in the
Westshore Business District of Tampa, Florida. The determination of the three
appraisers shall be binding on Landlord and Tenant and shall establish the
rental rate for the Expansion Space during such Renewal Term. The above
notwithstanding, the rental rate for the Expansion Space during the Renewal
Term
shall be no less than the average rental rate for the Expansion Space for the
two (2) years of the Expansion Space Term immediately preceding the Renewal
Term. Landlord and Tenant shall each bear the cost of the appraiser they
selected and shall share equally the cost of the third appraiser. Tenant may
exercise its option to renew and Tenant’s exercise of that option shall be
effective only if, at the time of Tenant’s exercise and on the commencement date
of any Renewal Term, the Lease is in full force and effect and Tenant is not
in
default under the Lease beyond any applicable cure period; provided that Tenant
must, in any event, cure any then existing default within its applicable cure
period or such exercise shall, at Landlord’s option, be deemed ineffective and
null and void in its entirety. Upon exercise of the Renewal Option and
determination of the rental rate, the Lease as to the Expansion Space shall
be
extended for the Renewal Term.
9.
Real
Estate Broker.
Landlord and Tenant represent and warrant to the other that it neither consulted
nor negotiated with any broker or finder with regard to the Expansion Space
or
this Second Amendment except for Xxxxxxx & Xxxxxxxxx of Florida, Inc.
(“Xxxxxxx”) and CLW Real Estate Services Group (“CLW”). Landlord shall pay a
leasing commission to CLW in the amount of Fifty Five Thousand and 00/100
Dollars ($55,000.00) if and when Landlord receives the Space Reduction Fee
from
Ariba. Ariba shall be solely responsible for paying any commission due to or
claimed by Xxxxxxx. If any claim for brokerage fees in connection with this
Second Amendment is made by any other broker, realtor or agent claiming to
have
dealt through or on behalf of the parties hereto, such party shall indemnify,
defend and hold the other party harmless from all liabilities, damages, claims,
costs and expenses with respect to such claim for broker fees or commission.
10. Landlord’s
Contingency.
Tenant
acknowledges that Landlord is entering into this Second Amendment in
anticipation of Ariba vacating the Expansion Space on terms and conditions
acceptable to Landlord. If Landlord and Ariba do not enter into a lease
amendment excluding the Expansion Space from the premises leased to Ariba by
October 31, 2001, or if Ariba does not pay Landlord the Space Reduction Fee
by
November 1, 2001, then Landlord shall have the right, but not the obligation,
to
cancel this Second Amendment, in which event the Premises shall not be expanded
and the Lease shall continue in full force and effect as to the original
Premises. If Landlord elects to cancel this Second Amendment, then Landlord
shall provide written notice of such election to Tenant at the Notice Address
of
Tenant set forth in the Lease, failing which notice, this Second Amendment
shall
remain in full force and effect.
4
11.
Tenant’s
Contingency.
Landlord acknowledges that Tenant is entering into this Second Amendment in
anticipation of (i) Landlord entering into an agreement with Ariba to terminate
Ariba’s lease with respect to the Expansion Space and deliver possession of the
Expansion Space to Tenant, and (ii) Landlord paying to Tenant the Space
Expansion Fee. If Landlord does not enter into an agreement with Ariba
terminating Ariba’s lease with respect to the Expansion Space by November 1,
2001 and pay to Tenant the Space Expansion Fee within the date provided herein,
then Tenant shall have the right to terminate this Second Amendment in which
event the Premises shall not be expanded and the Lease shall continue in full
force and effect.
12.
Binding
Effect.
The
Lease, as modified by this Second Amendment, and all covenants, agreements,
exhibits, terms and conditions contained therein, shall remain in full force
and
effect and is hereby ratified and confirmed. The provisions of this Second
Amendment shall control conflicting provisions of the Lease.
IN
WITNESS
WHEREOF, Landlord and Tenant have executed this Second Amendment as of the
day
and year first above written.
LANDLORD | TENANT | |||
CRESCENT BROOKDALE | OUTBACK STEAKHOUSE, INC., | |||
ASSOCIATES, LLC, a Georgia | a Delaware corporation | |||
Limited liability company | ||||
By: | /s/ Xxxx Xxxxxxxx | By: | /s/ Xxxxxx X. Xxxxxxx | |
Name: | Xxxx Xxxxxxxx | Name: | Xxxxxx X. Xxxxxxx | |
Title: | Senior Vice President | Title: | Chief Financial Officer | |
Date: | 10-19-01 | Date: | 10-11-01 | |
Attachment
Exhibit
A
- Expansion Space
5