STATE OF NORTH CAROLINA
COUNTY OF MECKLENBURG SECOND LEASE AMENDMENT
THIS SECOND LEASE AMENDMENT is made and entered into this 10th day of October,
2004, by and between Bissell Xxxxxx Xxxxxx, LLC, a North Carolina limited
liability company, hereinafter referred to as "Landlord" and Premier Alliance
Group, Inc., hereinafter referred to as "Tenant";
W I T N E S S E T H:
THAT WHEREAS, Landlord and Tenant entered into a certain lease agreement dated
May 5th 2000, for certain premises known as Suite 300 (the "Premises")
containing approximately 7,036 rentable square feet, located on the third floor
of the building known as the Xxxxxx Building (the "Building"), which is located
at 0000 Xxxxxx Xxxx, Xxxxxxxxx, Xxxxx Xxxxxxxx, which lease agreement was
amended by First Amendment to Lease dated December 22nd, 2000, said lease, as
amended, being hereinafter referred to as the "Lease"; and,
WHEREAS, Landlord and Tenant have agreed to amend the Lease to extend the term
of the Lease, adjust the rent and make arrangements and agreements in connection
therewith;
NOW THEREFORE, in consideration of the foregoing recitals, the mutual covenants
hereinafter contained, and other good and valuable consideration, the receipt
and sufficiency of which is hereby acknowledged, the parties hereto agree to
amend the Lease as follows:
1. Term. The term of the Lease is extended through July 31, 2009. That
period of time between the end of the current term and the end of the term as
extended hereby, shall be called the "Extended Term". Except for the allowance
provided in paragraph 2. hereafter, Tenant shall accept the Premises during the
remainder of the current term and the Extended Term in "as is" condition, and
Landlord shall have no obligation to upfit the same.
2. Improvements to the Premises. Landlord shall provide Tenant with an
allowance of Ten Dollars ($10.00) per rentable square foot of the Premises
($10.00 x 7,036 = $70,360.00) for improvements or increased communications made
by Tenant to the Premises within sixty (60) days after the full execution of
this Second Lease Amendment. Such allowance (or so much as is earned) shall be
paid by Landlord to Tenant within thirty (30) days after receipt of copies of
paid invoices for such work. All improvements made to the Premises by Tenant
must be performed in compliance with Section 6.1. of the Lease. Any unused
portion of the said allowance shall be credited against the next ensuing Monthly
Base Rent payments required under this Lease after (a) such unused portion (if
any) is determined, or (b) December 31, 2004, whichever is later. Any
improvements made to the Premises by Tenant shall not cause any abatement of
rent, even if such improvements cause the Premises to be wholly or partially
untenantable during the progress of such improvements. The cost incurred by
Landlord in providing proper electricity service to the Premises as provided in
paragraph 6 of this Second Lease Amendment shall not be charged against the
foregoing improvements allowance.
3. Rent. Effective as of August 1, 2004 (the "Effective Date") and
continuing throughout the remainder of the current term and the Extended Term,
Tenant shall pay Annual Base Rent at the rate of Twenty-Four Dollars ($24.00)
per rentable square foot of the Premises ($24.00 x 7,036 = $168,864.00) which
shall be paid by Tenant to Landlord in installments of Monthly Base Rent
payments in the amount of $14,072.00 each ($168,864.00 - 12 = $14,072.00) at the
times provided for the payment of Monthly Base Rent in the Lease, which Annual
and Monthly Base Rent shall escalate on each anniversary of the Effective Date
during the remainder of the current term and the Extended Term by three percent
(3.0)%) of the Annual and Monthly Base Rent in effect immediately prior to each
such date. Within thirty (30) days after the execution of this Second Lease
Amendment, Landlord shall refund to Tenant, any Monthly Base Rent paid for
August through December, 2004, that is in excess of that required under this
paragraph, such refunded amount to be $17,091.62.
4. Option to Renew. Provided Tenant is not in default hereunder at the
time of exercise thereof, Tenant shall have the option to renew this Lease for
one (1) additional term of five (5) years at a base rental rate as of the
beginning of such renewal term, and annual escalations thereof, to be negotiated
between Landlord and Tenant, each acting in its own discretion, respectively, as
hereinafter provided. In order to exercise its option to renew for the renewal
term, Tenant must notify Landlord in writing of the exercise of said option to
renew at least one hundred eighty (180) days prior to the end of the Extended
Term. If Tenant fails to notify Landlord of its exercise of said option at least
one hundred eighty (180) days prior to the end of the Extended Term, or if,
within ninety (90) days after Tenant has notified Landlord of the exercise of
its option to renew, Landlord and Tenant have not agreed on the base rental
rate, and annual escalations thereof, for such renewal term, then in such case,
this option to renew shall terminate and expire and be of no further force or
effect. However, if Tenant timely exercises its option to renew for the said
renewal term, and Landlord and Tenant agree within ninety (90) days thereafter,
on the base rental rate and annual escalations thereof for such renewal term,
then in such case the Lease shall be renewed for a five (5) year term at the
base rental rate and annual escalations thereof as agreed upon by Landlord and
Tenant and otherwise upon the same terms and conditions as this Lease except
that Tenant shall accept the Premises in "as is" condition, and Landlord shall
have no obligation to upfit the same (unless otherwise agreed by Landlord and
Tenant in the renewal negotiations to determine the base rental rate and annual
escalations thereof), and Tenant shall not be deemed to have any additional
renewal option.
5. Holdover. Under Section 3.2. of the Lease, the Monthly Base Rent for
the first month (or any portion thereof) of any holdover by Tenant provided for
therein shall be at One Hundred Ten percent (110%) of the Monthly Base Rent in
effect at the end of the term after which Tenant holds over in the Premises, and
thereafter such Monthly Base Rent for each subsequent month (or portion thereof)
that Tenant holds over in the Premises, shall be One Hundred Fifty percent
(150%) of the Monthly Base Rent in effect at the end of the term after which
Tenant holds over in the Premises. All other provisions of Section 3.2. shall
remain applicable.
6. Building Electricity. Landlord shall, at Landlord's cost, provide
proper electricity supply to the Premises appropriate for general office use,
subject to the terms and conditions of the Lease.
7. Security DePosit. Within thirty (30) days after the full execution of
this Second Lease Amendment, Landlord will refund to Tenant the Security Deposit
previously paid by Tenant and currently being held by Landlord under the Lease.
8. Ratification. Except as specifically amended hereby, all terms and
conditions of the Lease shall remain applicable during the remainder of the
current term and the Extended Term, the Lease shall remain in full force and
effect and the same is hereby ratified, approved, and affirmed.
IN WITNESS WHEREOF, the Landlord and Tenant have executed this Second Lease
Amendment under seal as of the day and year first above written.
WITNESS: LANDLORD:
/s/ L Xxxxxxx By: /s/ X.X. Xxxxxxx (seal)
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X.X. Xxxxxxx
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Print Name and Title
WITNESS: TENANT:
Premier Alliance Group, Inc.
/s/ Jan Cornel By: /s/ Xxxxxx Xxxxxxxx(SEAL)
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Xxxxxx Xxxxxxxx, Partner
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Print Name ant Title
