EXHIBIT 10.39
THIRD AMENDMENT TO LEASE AGREEMENT
This Third Amendment to Lease Agreement (the "Third Amendment") is entered
into effective as of November 26th, 1997, between Xxxx Xxxxxxxx and Xxxxxxxxxx
X. Xxxxxxxx (collectively, the "Landlord") and House of Blues New Orleans
Restaurant Corporation (the "Tenant") formerly known as House of Blues
Partnership Management Corporation.
INTRODUCTION
A. Xxxx Xxxxxxxx, as Landlord, and House of Blues Partnership Management
Corporation, as Tenant, entered into that certain Lease Agreement (the "Lease")
dated October 15, 1992 and effective October 14, 1992, and pertaining to a
portion of the property located at 000-000 Xxxxxxx Xxxxxx xx Xxx Xxxxxxx,
Xxxxxxxxx.
B. The Lease has been amended by that certain Amendment to Lease Agreement
(the "First Amendment") dated and effective as of December 20, 1993, and that
certain Second Amendment to Lease Agreement (the "Second Amendment") dated and
effective as of January 20, 1994.
In consideration of the terms of this Third Amendment, Landlord and Tenant
do hereby further amend the Lease as follows:
AMENDMENT
1. Xxxxxxx'x Building - Additional Facilities. Section 26 of the First
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Amendment permits Tenant to create two openings in the wall on the second floor
between the Demised Premises and the Xxxxxxx'x Building to connect Tenants'
office and storage facilities to the Demised Premises. Tenant now instead
desires to develop additional dining, bar and club facilities (the "Foundation
Room") on the second floor of the Xxxxxxx'x Building. Accordingly, Section 26 of
the First Amendment is deleted and the following is substituted in its place:
"26. Xxxxxxx'x Building - Wall Openings for Access to
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Foundation Room. Landlord acknowledges that Tenant intends
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to develop additional dining, bar and club facilities (the
"Foundation Room") on the second floor of the Xxxxxxx'x Building.
Landlord hereby consents to two door-sized openings in the wall
between the Demised Premises and the Xxxxxxx'x Building to connect
the Foundation Room facilities to the Demised Premises. The openings
shall be on the second floor of the Demised Premises and shall not be
in either of the two Building stairwells. The locations, plans and
specifications for the two openings shall be subject to Landlord's
approval, which approval shall not be unreasonably withheld. The
connection between the Demised Premises and the Xxxxxxx'x Building
permitted pursuant to the terms of this Section 26 may be used
without restriction by all persons at the Demised Premises, including
without limitation, Tenant's patrons, employees and the nightclub
musicians and other performers. Tenant's right to use these openings
shall terminate on the earlier to occur of (a) the permanent
termination of the use of the Xxxxxxx'x building as ancillary
facilities or (b) the termination of this Lease. Upon the termination
of Tenant's right to use these openings, Tenant shall close the
openings in accordance with the requirements described below in
Section 27."
2. Xxxxxxx'x Building - Wall Openings. Section 27 of the First Amendment
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addresses the two openings originally contemplated by Tenant for office and
storage facilities. The two openings will now be used for the Foundation Room
facilities. Accordingly, Section 27 of the First Amendment is deleted and the
following is substituted in its place:
"27. Xxxxxxx'x Building - Wall Openings. Other than the two openings
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for the Foundation Room facilities described above in Section 26, the
one opening for the electrical line described above in Section 20 and
the two openings to connect the kitchen facilities described above in
Section 13, Tenant shall not make any openings in the wall separating
the Building and the Xxxxxxx'x Building without Landlord's prior
written consent, which consent shall not be unreasonably withheld.
All openings made by Tenant in the wall separating the Building and
the Xxxxxxx'x Building shall be equipped with doors if and as
required by applicable law. Upon the termination of Tenant's right to
use an opening in accordance with the terms of Sections 13, 20 or 26,
Tenant, at its sole cost and expense, shall reinstall the brick
infill, provide appropriate safety and building code separations
between the buildings and perform all other work required by
governmental authorities as a condition to obtaining permits and
other approvals for the elimination of the openings, including work
necessitated by building codes. The provisions of this Section 27
shall survive the termination of the Lease."
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3. Utilities: Paragraph 2 of Section 8.5 of the Original Lease contemplates
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the installation of a trash chute. Due to changes in the architectural
plans of Tenant, a trash chute was not installed as originally
contemplated. Additionally, Landlord requires space to install a water
pressure pump within the Demised Premises. Accordingly, Paragraph 2 of
Section 8.5 of the Original Lease is deleted and the following are
substituted in its place:
"Landlord and Landlord's other tenants in the remainder of the
Building shall have the right to dispose of their trash in the alley
elevator, on a daily basis between the hours of 6:00 a.m. and noon,
by placing it inside a container designated for that purpose by the
House of Blues. The responsibility and cost of the daily trash
removal and for the cleanliness and maintenance of the container
shall be borne by Tenant.
Tenant shall provide Landlord with a space within Tenant's gas meter
room to install Landlord's water pressure pump. Water pressure pump
is to be installed at Landlord's expense."
4. Exhibit C: The following amendments are made to Exhibit C:
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a) Paragraph C (14) of Exhibit C is deleted.
b) Paragraph C (15) of Exhibit C is supplemented with the following:
"Tenant agrees to install the following additional sound attenuation
measures:
The soundproofing caulking at the perimeter of the suspended ceiling
above the "Club" area, shall be examined and if necessary, cut out
and re-caulked with a soundproofing, non-hardening type of caulking,
to fill in all openings and cracks which may be a source of "flanking
path" sound generation.
Tenant shall permanently shut the windows in the green room and
catwalk areas by installing either another set of windows or
plexiglass.
Tenant shall install a rubber material to sound isolate all audio
speakers and audio monitors throughout the Demised Premises
(including those on the stage) in order to prevent them from
transmitting sound and vibrations to the wooden columns."
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5. Miscellaneous. The parties hereby confirm and ratify the Lease, as amended
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by the First Amendment, the Second Amendment and this Third Amendment. Except as
otherwise amended by the First Amendment, the Second Amendment and this Third
Amendment, the Lease shall remain in full force and effect. Terms that are not
otherwise defined in this Third Amendment shall have the meaning ascribed to
them in the Lease, the First Amendment or the Second Amendment, as the case may
be.
WITNESS: LANDLORD:
/s/ Xxxxxx Xxxxx /s/ Xxxx Xxxxxxxx
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Xxxx Xxxxxxxx
[ILLEGIBLE SIGNATURE] /s/ Xxxxxxxxxx X. Xxxxxxxx
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Xxxxxxxxxx X. Xxxxxxxx
WITNESS: TENANT:
House of Blues New Orleans
Restaurant Corporation
[ILLEGIBLE SIGNATURE]
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By: /s/ Xxx Xxxxxx
[ILLEGIBLE SIGNATURE] ------------------------------
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Title: Vice President
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