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EXHIBIT 10.22
FOURTH AMENDMENT TO
OFFICE LEASE AGREEMENT
This Fourth Amendment to Office Lease Agreement (the "Amendment") is
made and entered into this 13" day of October, 1999, by and between HASTINGS
ENTERTAINMENT, INC., a Texas corporation ("Hastings") and OMNI CAPITAL
CORPORATION, a Texas corporation ("Omni").
RECITALS
A. On the 3rd day of August, 1994, Hastings and Omni entered into that
certain Office Lease Agreement (the "Office Lease") covering the premises
located at 0000 Xxxxxx Xxxx., Xxxxx 0, Xxxxxxxx, Xxxxx.
B. The Office Lease was amended by (a) that certain Amendment to Office
Lease Agreement dated January 23, 1995, by and between Hastings and Omni, (b)
that certain Lease Amendment dated March 26, 1997, by and between Hastings and
Omni, and (c) that certain Third Lease Amendment dated January 29, 1998, by and
between Hastings and Omni. The Office Lease, as amended, shall hereinafter be
referred to as the "Lease".
X. Xxxxxxxx and Omni desire to amend the Lease.
AGREEMENT
For good and valuable consideration, the receipt and sufficiency of
which is hereby acknowledged, Hastings and Omni agree as follows:
1. Effective as of the date of this Amendment, the Premises (as
defined in the Lease) shall be amended to include the
additional 11,250 square feet of space that is colored blue on
the attached Exhibit "A" (the "Additional Space"). Minimum
Rent (as defined in the Lease) shall be increased by $1,318.75
per month ($2.11 per square foot per annum on 7,500 square
feet of the Additional Space) beginning on February 1, 2000.
There shall be no increase in the Minimum Rent for the
remaining 3,700 square feet of the Additional Space until the
/s/[ILLEGIBLE] Lease is amended in accordance with paragraph six (6)
of this Amendment. Any and all terms and provisions of the
Lease are amended wherever necessary (even though not
specifically addressed in this Amendment) so as to conform to
the amendments set forth in this paragraph.
2. Omni (at its sole cost and expense) agrees to (a) replace the
roof covering the Additional Space, (b) commence work on
replacing the roof on or before November 12, 1999, (c) perform
such work in a good and workmanlike manner, and (d) complete
such work on or before December 13, 1999.
3. Effective when that certain Lease Agreement dated May 25,
1993, by and between Omni and KCI Therapeutic Services, Inc.
expires on March 31, 2000, (a) the Premises shall be amended
to include the additional 5,948 square feet of space that is
colored green on the attached Exhibit "A" (the "KCI Space"),
and (b) Minimum Rent shall be increased by $1,045.86 per month
($2.11 per square foot per annum on the KCI Space). Any and
all terms and provisions of the Lease are amended wherever
necessary (even though not specifically addressed in this
amendment) so as to conform to the amendments set forth in
this paragraph.
4. Omni agrees that the KCI Space shall be delivered to Hastings
on March 31, 2000, (a) in "broom clean" condition, and (b)
with the roof in good condition and repair and not leaking.
5. Contemporaneously with the Lease being amended to include the
KCI Space, that certain Lease Agreement dated February 14,
1998, by and between Hastings and Omni, covering 7,000 square
feet located at 0000 Xxxxxx Xxxx., Space 83-F, Amarillo,
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Texas shall terminate, and Hastings and Omni shall have no
further rights or obligations under such lease, except for any
liabilities or obligations that were incurred or accrued prior
to such termination.
6. Effective October 1, 2000, the Lease shall be amended as
follows:
a. The Lease shall have a new Initial Term of thirty-six
(36) months beginning October 1, 2000.
b. Minimum Rent during the new Initial Term shall be
$143,159.28 per annum, payable in monthly
installments of $11,929.94 each.
x. Xxxxxxxx shall have four (4) options to extend the
term of the Lease for periods of three (3) years
each, with each extended term to begin upon the
expiration of the preceding initial or extended term.
If Hastings desires to exercise an option to extend
the term of the Lease, it shall do so by giving Omni
written notice of Hastings' election to extend the
term of the Lease not later than three (3) months
prior to the expiration of the then current initial
or extended term. If Hastings timely exercises an
option to extend the term of the Lease, the Lease
shall continue on the same provisions, except the
Minimum Rent shall be (i) $12,778.04 per month during
the first extended term, if exercised, (ii)
$14,417.70 per month during the second extended term,
if exercised, (iii) $16,848.92 per month during the
third extended term, if exercised, and (iv)
$18,092.80 per month during the fourth extended term,
if exercised. If Hastings fails to timely exercise
any option to extend the term of the Lease, Hastings
shall not have the right to exercise any succeeding
option to extend the term of the Lease.
7. If Omni desires to lease any of the space that is outlined and
striped in yellow on the attached Exhibit "A" to a third
party, Omni shall promptly give written notice to Hastings
with full information concerning the proposed lease, which
shall include the name and address of the prospective lessee,
the rental amount, and all other terms of the lease. Hastings
shall have the right, for a period of ten (10) days after
receipt of the notice, to elect to lease the space on the same
terms and conditions. If Hastings elects to lease the space,
Hastings and Omni shall execute a lease of such space within
thirty (30) days after the date Hastings elects to lease the
space. If Hastings elects not to lease the space, and Omni
does not lease the space or does not lease the space on the
terms and conditions contained in Omni's notice to Hastings,
the space shall remain subject to Hastings' preferential right
to lease. If Omni leases the space and the lease expires or
terminates, the space shall again be subject to Hastings'
preferential right to lease.
8. By that certain letter agreement dated September 30, 1999,
Hastings waived its right of first refusal to lease space nos.
16, 19-23 and 24-26 in the Building (as defined in the Lease)
that contain 22,880 square feet of space (the "Space"). Omni
has leased the Space to A La Galleria for a three (3) year
term expiring on September 21, 2002 (the "Expiration Date").
Omni will provide Hastings with an executed copy of the three
(3) year lease covering the Space. On the Expiration Date,
Hastings shall have the right to lease the Space, provided
Hastings gives Omni written notice of its intent to lease the
Space at least one hundred twenty (120) days prior to the
Expiration Date. If Hastings timely gives Omni written notice
of its intent to lease the Space, on the Expiration Date the
Premises (as defined in the Lease) shall be amended to include
the Space, and the Minimum Rent (as defined in the Lease)
shall be increased proportionately based on the addition of
the Space. If Hastings does not timely give Omni written
notice of its intent to the lease the Space, Omni shall have
the right to lease the Space to another party.
9. Except as modified by this Amendment, the Lease shall remain
in full force and effect, enforceable in accordance with its
terms.
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10. This Amendment shall be governed by and construed and
enforced in accordance with the laws of the State of Texas.
11. This Amendment shall be binding upon and shall inure to the
benefit of the parties to this Amendment and their respective
successors and assigns.
OMNI CAPITAL CORPORATION
By: /s/ X.X. XXXXXX
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X.X. Xxxxxx, President
HASTINGS ENTERTAINMENT, INC.
By: /s/ XXXX X. XXXXXXXXX
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Xxxx X. Xxxxxxxxx, President
THE STATE OF TEXAS )
)
COUNTY OF POTTER )
This instrument was acknowledged before me on October 14, 1999, by
X.X. Xxxxxx, President of Omni Capital Corporation, a Texas corporation, on
behalf of said corporation.
[SEAL]
/s/ XXXXXX X. XXXXX
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Notary Public, State of Texas
THE STATE OF TEXAS )
)
COUNTY OF POTTER )
This instrument was acknowledged before me on October 22, 1999, by
Xxxx X. Xxxxxxxxx, President of Hastings Entertainment, Inc., a Texas
corporation, on behalf of said corporation.
[SEAL]
/s/ XXXXXX X. XXXXXXX
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Notary Public, State of Texas
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