FOURTH AMENDMENT TO LEASE AGREEMENT
FOURTH
AMENDMENT TO LEASE AGREEMENT
THIS
FOURTH AMENDMENT TO LEASE AGREEMENT
(the "
Fourth Amendment") is dated the _______ day of February, 2006, by and between
FORT
LAUDERDALE CROWN CENTER, INC.,
a
Florida corporation (hereinafter referred to as "Landlord") and FUSION
TELECOMMUNICATIONS INTERNATIONAL, INC.,
a
Delaware corporation (hereinafter referred to as "Tenant").
WITNESSETH:
WHEREAS,
Landlord and Tenant entered into that certain Lease Agreement dated on or about
October, 1999 (the "Original Lease"), for approximately 13,502 rentable square
feet (the "Original Premises") located on the second (2nd)
floor
in Suite 220 of that certain building known as the "Crown Center" located at
0000 Xxxxxxx Xxxxx Xxxx, Xxxx Xxxxxxxxxx, Xxxxxxx 00000 (the "Original
Building"); and
WHEREAS,
the
Original Lease was amended by (i) that certain Amendment Number One to Lease
Agreement dated December 19, 1999 (the "First Amendment"), and (ii) that certain
Second Amendment to Lease Agreement dated April 24, 2003 (the "Second
Amendment"); and
WHEREAS,
Landlord and Tenant entered into that certain Third Amendment to Lease dated
April 28, 2004 (the “Third Amendment”) to, inter alia, relocate the Original
Premises to the premises containing approximately 9,716 rentable square feet
located on the second floor in Suite 204 of the "Crown Center" building located
at 0000 Xxxxxxx Xxxxx Xxxx, Xxxx Xxxxxxxxxx, Xxxxxxx 00000; and
WHEREAS,
the
Original Lease as amended by the First Amendment, the Second Amendment, and
the
Third Amendment shall be collectively hereinafter referred to as the "Lease";
and
WHEREAS,
Landlord and Tenant desire to enter into this Fourth Amendment to expand the
Premises, extend the Term, and otherwise amend the Lease as hereinafter set
forth.
NOW,
THEREFORE,
for and
in consideration of the foregoing premises, the promises hereinafter contained
and other good and valuable consideration, the receipt and sufficiency of which
are hereby acknowledged, the parties hereto, intending to be legally bound,
do
hereby agree as follows:
1. Recitals.
The
foregoing recitations are true and correct and are incorporated herein by this
reference.
2. Conflict.
In
the
event of any conflict between the provisions of the Lease and the provisions
of
this Fourth Amendment, the provisions of this Fourth Amendment shall control.
The initial capitalized terms used herein shall have the same meaning given
such
terms in the Lease, unless otherwise defined herein or unless the context
otherwise indicates.
3. Expansion
of Premises.
Effective upon the date that Landlord substantially completes the Tenant
Improvements (as hereinafter defined) and delivers the Expansion Premises (as
hereinafter defined) to Tenant (“Expansion Premises Commencement Date”), and
throughout the Lease Term, the Premises shall be expanded to include an
additional 3,433 rentable square feet on the second (2nd) floor of the Building,
as depicted on Exhibit “A” attached hereto and made a part hereof (the
“Expansion Premises”). Landlord shall use its best efforts to deliver the
Expansion Premises to Tenant on or before May 1, 2006; provided, however, that
Tenant expressly acknowledges and agrees that (i) the foregoing estimate may
be
affected by factors beyond Landlord’s control, including, without limitation,
delays in obtaining necessary building permits, and (ii) that Landlord shall
have no liability to Tenant and that Landlord shall not be in default under
the
Lease if, in spite of Landlord’s best efforts, Landlord does not deliver
possession of the Expansion Premises to Tenant on or before May 1, 2006.
Thereafter, the Premises shall be modified to mean 13,149 rentable square feet
of space consisting of the Premises, as expanded by the Expansion Premises,
and
all references in the Lease to the term “Premises” shall refer to the Premises,
including the Expansion Premises. The Expansion Space is subject to all of
the
terms and conditions of the Lease, as amended.
4. Condition
of Expansion Premises.
Landlord
shall not be responsible for the renovation, construction or installation of
any
leasehold improvements relating to the Expansion Premises, except as expressly
hereinafter set forth. Tenant acknowledges that Landlord has not made any
representations or warranties with respect to the condition of the Expansion
Premises and neither Landlord nor any assignee of Landlord shall be liable
for
any latent defect therein. The taking of possession of the Expansion Premises
by
Tenant shall be conclusive evidence that the Expansion Premises was in good
and
satisfactory condition at the time such possession was taken. Landlord shall
perform the improvements to the Expansion Premises shown on Exhibit “B” attached
hereto (the “Tenant Improvements”). All work will be scheduled by Landlord
during normal business hours on normal business days in cooperation with Tenant
in a manner as to not inconvenience other tenants of the Building. If
applicable, Tenant shall be responsible for the movement of any of its equipment
and furniture necessary to accommodate Landlord’s work schedule. Landlord and
its contractor assume no liability for Tenant’s equipment, furniture or other
personal property at the Expansion Premises during the construction of the
Tenant Improvements and Tenant shall hold Landlord, its contractors and their
respective agents and employees (“Landlord’s Indemnified Parties”) harmless and
indemnify same from and against any damage or injury relating to Tenant’s
equipment, furniture or personal property left in the Expansion Premises during
the construction of the Tenant Improvements, unless caused by the willful
misconduct of the Landlord’s Indemnified Parties.
5. Extended
Term.
The Term
of the Lease shall be extended for a period of eight (8) years from the
Expansion Premises Commencement Date (the "Extended Term"), and shall expire
at
midnight (Eastern Standard Time) on the date immediately preceding the eighth
(8th)
anniversary of the Expansion Premises Commencement Date (the "Extended
Expiration Date"), and all references in the Lease to the Expiration Date of
the
Term of the Lease shall hereafter be deemed to refer to the Extended Expiration
Date. Notwithstanding anything set forth in the Lease to the contrary, Tenant
shall not have any right or option to extend the Term beyond the Extended
Expiration Date, except as hereinafter expressly set forth in this Fourth
Amendment.
6. Base
Rent.
From
the Expansion Premises Commencement Date through June 30, 2006, Tenant shall
pay
Base Rent to Landlord, plus applicable sales tax thereon, as follows:
Period
|
Base
Rent per RSF
per
Annum
|
Monthly
Base Rent
Payments
(not
including
sales tax)
|
Expansion
Premises Commencement Date through June 30, 2006
|
$11.96
|
$13,105.17
|
Commencing
on July 1, 2006, and on each anniversary thereof during the Extended Term,
Base
Rent shall increase by four percent (4%).
7. Tenant’s
Proportionate Share.
Effective as of the Expansion Premises Commencement Date and throughout the
Extended Term of the Lease, Tenant shall continue to pay to Landlord, in the
form of Additional Rent, plus applicable sales tax thereon, Tenant's
Proportionate Share of the Operating Expenses of the Building and the Property
for the applicable calendar year in accordance with the terms of the Lease.
Upon
the Expansion Premises Commencement Date and throughout the Extended Term,
Tenant's Proportionate Share shall be modified to mean 19.17% (to wit:
13,149/68,608 x 100).
8. Parking.
Effective
as of the Expansion Premises Commencement Date, Article VI of the Lease shall
be
deleted in its entirety and the following shall be inserted in lieu
thereof:
"There
shall be available at the Building up to four (4) parking spaces for each 1,000
square feet of rentable square feet contained in the Premises (to wit: fifty-two
(52) nonreserved spaces), for the nonexclusive use of Tenant, free of charge.
Seven (7) covered parking spaces of these fifty-two (52) parking spaces will
be
designated reserved for Tenant and located in an area as reasonably designated
by Landlord."
9. Right
of First Refusal.
Section
17 of the Third Amendment is hereby deleted in its entirety and the following
is
inserted in lieu thereof:
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“Provided
Tenant is not in default of the Lease and is still occupying the Premises,
Landlord shall grant Tenant one (1) right of first refusal on any space located
on the second (2nd) floor of the Building (“First Refusal Space”), subject to
the rights of existing tenants to such space. The exercise of Tenant’s right of
first refusal shall be accomplished as follows: Within five (5) days of Landlord
entering into a signed letter of intent with a prospective tenant for the First
Refusal Space, Landlord shall provide Tenant with written notice of the same,
which notice shall include all of the business terms of such proposed lease
(“Landlord’s Notice”). Tenant shall have seven (7) days after receipt of
Landlord’s Notice to either accept all of the terms contained in Landlord’s
Notice or reject the offer contained in Landlord’s Notice. Tenant’s failure to
respond within such time period shall be deemed a waiver of Tenant’s right of
first refusal. If Tenant accepts such offer, Landlord and Tenant shall
thereafter execute an amendment to the Lease expanding the Premises to include
the First Refusal Space upon the terms and conditions contained in Landlord’s
Notice. If Tenant rejects the offer, Landlord shall have the right to lease
the
First Refusal Space to any other tenant (or third party) without regard to
the
Lease or Tenant’s rights thereunder. Time is of the essence with regard to the
notifications in this section.”
10. Option
to Renew.
Provided
Tenant is not currently in default of any provision of this Lease, and Tenant
is
still occupying the Premises, Landlord shall grant Tenant one (1) five-year
option to renew the Lease (“Option to Renew”) at the conclusion of the Extended
Term as to the entire Premises only. Tenant shall notify Landlord of Tenant’s
intent to exercise its Option to Renew no later than nine (9) months prior
to
the expiration of the Extended Term, with time being of the essence as to this
notification period. The Base Rent during the renewal term shall equal the
then
prevailing market rate for comparable buildings in the market in which the
Building is located. Notwithstanding anything to the contrary herein, Base
Rent
for the renewal term shall in no event be less than the Base Rent payable under
the Lease during the last year of the Extended Term. Within thirty (30) days
after Tenant notifies Landlord of its intent to exercise its Option to Renew,
Landlord shall determine the then prevailing market rate for comparable
buildings in the market in which the Building is located and shall notify Tenant
of the prevailing market rate.
The
then
prevailing market rate, as determined in accordance with this Section,
multiplied by the rentable square feet of the Premises, shall be the annual
Base
Rent for the Premises for the first year of the renewal term, payable in advance
and without notice, in equal monthly installments, commencing on the first
day
of the renewal term and continuing on the first day of each and every calendar
month thereafter during the first year of the renewal term. Commencing with
the
first month of the second year and each successive year throughout the renewal
term thereafter, the annual Base Rent shall be increased over the annual Base
Rent for the previous year by four percent (4%).
11. Broker.
The
parties represent and warrant to each other that they have not dealt with any
real estate brokers, salesmen, or finders in connection with this Fourth
Amendment other than Commercial Property Realty Advisors, LLC (the “Broker”).
Landlord shall be responsible to pay a commission to the Broker in accordance
with a separate agreement between Landlord and Broker. Other than the Broker,
if
a claim for commission in connection with this transaction is made by any
broker, salesmen, or finder claiming to have dealt through on behalf of one
of
the parties hereto, such party shall indemnify, defend and hold the other party
hereunder harmless from and against all liabilities, damages, claims, costs,
fees and expenses (including reasonable attorney's fees and court costs at
trial
and all appellate levels) with respect to said claim for brokerage.
12. Choice
of Law.
This
Fourth Amendment shall be construed and interpreted in accordance with the
laws
of the State of Florida, contains the entire agreement of the parties hereto
with respect to the subject matter hereof, and may not be changed or terminated
orally or by course of conduct, or by any other means except by a written
instrument, duly executed by the party to be bound thereby. This Fourth
Amendment shall inure to the benefit of and shall be binding upon the parties
hereto and their respective successors and assigns.
13. Ratification.
Except
as
modified hereby, the Lease shall remain in full force and effect in accordance
with the terms and provisions thereof and Tenant hereby ratifies and affirms
all
of the terms and conditions thereof.
14. Counterparts.
This
Amendment may be executed in several counterparts, each of which shall be fully
effective as an original and all of which together shall constitute one and
the
same instrument. Signature pages may be detached from the counterparts and
attached to a single copy of this document to physically form one
document.
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15. Authority.
Each
party hereto warrants and represents that it has the authority to enter into
this Fourth Amendment without the joinder of any other party; that the person
executing this Fourth Amendment of its behalf is authorized to do so; and that
this Fourth Amendment is valid, binding and enforceable against such party.
IN
WITNESS WHEREOF,
the
undersigned have executed this Fourth Amendment as of the date first above
written.
"LANDLORD"
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||
WITNESS:
|
FORT
LAUDERDALE CROWN CENTER, INC.,
a
Florida corporation
|
|
Print
Name: __________________________________
Print
Name: __________________________________
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By:
__________________________________
Print
Name: ____________________________
Title:
_________________________________
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"TENANT"
|
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WITNESS:
|
FUSION
TELECOMMUNICATIONS INTERNATIONAL, INC.,
a
Delaware corporation
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By: | ||
Print
Name: __________________________________
Print
Name: __________________________________
|
Print
Name: _____________________________
Title:
__________________________________
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