EXHIBIT 10.2
FIRST AMENDMENT OF LEASE AGREEMENT
THIS AMENDMENT ("Amendment"), made this 29th day of March, 2002 between Office
Realty Corp., a Minnesota corporation, having an office at c/o Sentinel Real
Estate Corporation, 1251 Avenue of the Americas, 00xx Xxxxx, Xxx Xxxx, Xxx Xxxx
00000-0000, as ("Landlord"), and Xxxxxx Investment Corporation, a Minnesota
corporation, as ("Tenant") having an office at 00 Xxxx Xxxxxx X.X., Xxxxx 000 of
the Xxxxxxxxxx Xxxx xx Xxxxxxxxxx, Xxxxxxxxxxx, Xxxxxxxxx 00000.
W I T N E S S E T H:
WHEREAS, Landlord's predecessor-in-interest, Riverplace Inc., and Tenant entered
into a lease dated March 10, 1999 (the "Lease"), covering premises known and
numbered as Suite 506 in Exposition Hall at Riverplace (the "Demised Premises"),
consisting of approximately 3,276 of net rentable square feet.
WHEREAS, the term of the Lease expires on March 31, 2002.
WHEREAS, Tenant desires to Lease Suite 506 of Exposition Hall for a five (5)
year period commencing on April 1, 2002 and expiring on March 31, 2007.
NOW, THEREFORE, in consideration of the Premises and the mutual covenants
contained herein, Landlord and Tenant hereby agree to amend the Lease, effective
April 1, 2002, as follows:
1. That the term of the Lease shall hereby be extended through and
including March 31, 2007;
2. Tenant shall pay Landlord, on or before the first of each month, as
Base Rent for the Demised Premises, without prior demand being made
therefor and without offset or deduction of any kind, the following
sums:
(a) For the period commencing on April 1, 2002 and expiring on
March 31, 2003, the sum of $31,122.00 per annum, payable in
equal monthly installments, in advance, of $2,593.50.
(b) For the period commencing on April 1, 2003 and expiring on
March 31, 2004, the sum of $32,760.00 per annum, payable in
equal monthly installments, in advance, of $2,730.00.
(c) For the period commencing on April 1, 2004 and expiring on
March 31, 2005, the sum of $34,398.00 per annum, payable in
equal monthly installments, in advance, of $2,866.50.
(d) For the period commencing on April 1, 2005 and expiring on
March 31, 2006, the sum of $36,036.00 per annum, payable in
equal monthly installments, in advance, of $3,003.00.
(e) For the period commencing on April 1, 2006 and expiring on
March 31, 2007, the sum of $37,674.00 per annum, payable in
equal monthly installments, in advance, of $3,139.50.
3. Landlord shall make the following Improvements to the Demised Premises
upon the full execution of the First Amendment of Lease Agreement, at
its sole cost and expense:
(a) Remove all carpeting in place in the Demised Premises;
(b) Install new building standard carpeting throughout the Demised
Premises, such carpeting to be chosen by Tenant from samples
provided by Landlord;
(c) Install carpet baseboards at the base of all interior walls in
place in the Demised Premises;
(d) Paint all interior walls in place in the Demised Premises with
one coat of building standard paint;
Except as expressly set forth hereinabove, Tenant shall accept the
Demised Premises in "as-is" condition. All other improvements to the
Demised Premises shall be performed by Tenant (i) at its sole cost and
expense (ii) in accordance with plans and specifications previously
approved by Landlord in writing, (iii) in full compliance with all
applicable laws, ordinances, rules and regulations of all governmental
authorities having jurisdiction thereover; (iv) in a good and
workmanlike manner, (v) in such a manner as to insure the least
possible interference with all aspects of the Building's operation,
including cooperating fully with Landlord's requests regarding such
items as the location of construction equipment and the times and
manner in which construction will be performed and (vi) in a prompt and
diligent manner to be completed no later than May 30, 2002.
4. Provided Tenant has not committed an act of default under this Lease,
and Landlord cannot provide Tenant adequate expansion premises, Tenant
shall have a one-time option to cancel and terminate this Lease
effective March 31, 2005, upon six (6) months prior written notice to
landlord ("Tenant's Termination Notice"), delivered via certified mail,
return receipt requested. If Tenant does not exercise its one-time
option to terminate the Lease, then such option automatically shall
become null and void and of no further effect hereunder.
5. Tenant represents and warrants to Landlord that Tenant has had no
dealings or negotiations with any broker or agent in connection with
the consummation of this Amendment, and Tenant agrees to pay, hold
harmless and indemnify Landlord from and against any and all costs,
expenses (including attorney's fees and court costs), loss and
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liability for any compensation, commissions or charges claimed by any
broker or agent with respect to this Amendment or the negotiations
hereof if such claim or claims by any such broker or agent are based in
whole or in part on dealings with Tenant or its representatives.
6. Tenant hereby represents and warrants to Landlord that Tenant (i) is
not in default of any of its obligations under the Lease and that such
Lease is valid, binding and enforceable in accordance with its terms,
(ii) has full power and authority to execute and perform this
Amendment, and (iii) has taken all action necessary to authorize the
execution and performance of this Amendment.
7. The recitals set forth hereinabove are incorporated herein by this
reference with the same force and effect as if fully set forth
hereinafter.
8. Capitalized terms not otherwise defined herein shall have the meaning
ascribed to them in the Lease.
9. Except as expressly amended hereby, the Lease and all of the terms,
covenants and conditions of the Lease are hereby confirmed and ratified
and shall remain and continue in full force and effect.
10. This Amendment may not be modified or terminated orally and constitutes
the entire agreement between the parties with respect to the subject
matter hereof.
IN WITNESS WHEREOF, the parties hereto have executed this Amendment of Lease
Agreement the day and year first written above.
LANDLORD: Office Realty Corp.
By: /s/
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(Title)
TENANT: Xxxxxx Investment Corporation
By: /s/ Xxxxxx X. Xxxxxx
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(Title)
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