FOURTH AMENDMENT TO LEASE AGREEMENT
Exhibit 10.28
FOURTH AMENDMENT TO LEASE AGREEMENT
THIS FOURTH ,AMENDMENT TO LEASE AGREEMENT (this "AMENDMENT") is entered into as of the 24th day of February, 2011, by and between Levy Xxxxxx 12 Associates. LLC. successor in interest to BC 12 99, LTD.. a Texas Limited Partnership (the "Landlord") and Active Power Inc. (the "Tenant").
WITNESSETH
WHEREAS, Landlord and Tenant previously entered into a Lease, dated the 27th day of September, 2000 (which together with any amendments, modifications and extensions thereof, is hereinafter referred to as the "Lease") pursuant to which Landlord leased to Tenant certain premises located at 0000 Xxxxxx Xxxx, Xxxxxx, Xxxxx 00000 known as Xxxxxx 12, containing approximately 126,750 square feet of space ("Existing Premises").
WHEREAS, Landlord and Tenant desire to extend the terms of the Lease for the
Premises on the terms and conditions set forth below:
NOW THEREFORE, in consideration of Ten Dollars ($10.00) and other good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, the Landlord and Tenant agree as follows:
| I. | The Term of the Lease is hereby extended for five (5) years, commencing on January l, 2012 ("Commencement Date of Extension Term") and continuing through and including December 3 1, 2016 ("the Extension Term"). |
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2.
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The Monthly Base Rent for the Existing Premises during the Extension Term, due and payable in accordance with the Lease, shall be as follows:
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January I, 2012 through December 31,2012:
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$
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0.45 per square foot
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January 1, 2013 through December 31, 2013:
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$
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0.52 per square foot
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January 1, 2014 through December 31, 2014:
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$
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0.53 per square foot
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January 1, 2015 through December 31, 2015:
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$
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0.55 per square foot
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| January 1, 2016 through December 31, 2016: |
$
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0.56 per square foot
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Note: Landlord will agree to reduce the base rent due under the current lease from $6.00 psf to $5.50 psf effective for the first ful1 month following the date of execution by all parties of the lease renewal (as per the terms proposed herein) through the end of the current lease term, which expires 12/31/2011.
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3.
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Landlord at Landlord's expense shall repair and I or replace all ceiling tiles, ceiling grids, damaged walls, and light fixtures all caused by the settling of the slab. Tenant understands that based on an engineer's study, the slab has settled in the specific area and there is no need to support or raise the slab at this time.
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4.
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Tenant shall be allowed to fence the East side of the building for the purpose of securing the outside area. Landlord shall be financially responsible for half(50%) of the construction costs up to $3,000.00 maximum expense for the Landlord. Tenant agrees to pay the remaining portion of the cost for the security fence. Tenant, not Landlord, is solely responsible for coordinating and overseeing construction of the fence. Landlord will reimburse Tenant up to $3,000 within thirty (30) days upon receipt of a copy of the paid invoice for this project.
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5.
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Landlord shall cap the controllable expenses for Braker 12 at six (6%) percent annum. Controllable expenses are defined as those costs associated with maintaining common area, and exclude Insurance, taxes and utilities, and any associated cost to those expenses.
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6.
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Landlord will agree to bear the financial responsibility for 66.7% of the replacement cost for any HVAC unit up to a maximum cost to Landlord of$350,000 during the amended term of this lease which is amended to expire 12/3 I /2016. Tenant will need to submit a copy of the paid invoice identifying the replacement of the HVAC unit in order to be reimbursed. Landlord will have thirty (30) days to inspect the installation and process payment for reimbursement once Landlord receives a copy of the paid invoice. Tenant will be responsible for any maintenance and repairs of HVAC units and must maintain a routine HVAC maintenance contract for all units with a qualitied HVAC contractor.
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7.
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Landlord, not Tenant, will pay HPI Corporate Services, LLC a commission equal to two percent (2%) of the aggregate Base Rental payable to Landlord for the Premises over the renewal term only, adjusted by deducting the difference between the current 2011 rent and the adjusted 2011 rent further reduced by the $350,000 HVAC allowance. Thus, the Base Rental commission calculation starts 1/1/2012 thru 12/31/2016, and this amount will be reduced by the 2011 rent adjustment and the $350,000 HVAC allowance. The commission will be paid 50% within 30 days upon execution of the lease and the remaining 50% within 30 days of the renewal period 1/1/2012.
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8.
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Insofar as the specific terms and provisions of this Fourth Amendment purport to amend or modify or are in conflict with the specific terms, provisions and exhibits of the Lease, the terms and provisions of this Fourth Amendment shall govern and control; in all other respects, the terms, provisions and exhibits of the Lease shall remain unmodified and in full force and effect
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9.
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Any obligation or liability whatsoever of BC 12 99, LTD., a Texas Limited Partnership which may arise at any time under the Lease or this Fourth Amendment or any obligation or liability which may be incurred by it pursuant to any other instrument, transaction or undertaking contemplated hereby, shall not be personally binding upon, nor shall resort for the enforcement thereof be had to the property of its trustees, directors, shareholders, officers, employees, or agents regardless of whether such obligation or liability is in the nature of contract, tort or otherwise.
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IN WITNESS WHEREOF, the parties hereto have signed this Fourth Amendment to Lease Agreement as of the day and year first above written.
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Tenant
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Landlord
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Active Power, Inc.
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Levy Xxxxxx 12 Associates, LLC
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| By: |  |
By: | Xxxx Una Management Company | ||
| Title: | CHIEF FINANCIAL OFFICER | Title: | Its General Partner | ||
| By: | |||||
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Xxxxx Xxxxxxx, Authorized Signer
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| Date: 2/21/2011 | Date: 2/24/2011 | ||||
