Exhibit 10.4.2
LEASE RENEWAL AGREEMENT
STATE OF NORTH CAROLINA
COUNTY OF MECKLENBURG
THIS LEASE RENEWAL AGREEMENT made and entered into as of the 1/st/ day of
September, 1996 by and between Atlantic Design Company, Inc., hereinafter called
"TENANT" and Xxxxxxx and Xxxxxxx, hereinafter called "LANDLORD."
WITNESSETH:
WHEREAS, TENANT and LANDLORD entered into a certain Lease Agreement ("Lease")
dated September 1, 1993 for the rental by TENANT of certain property
incorporated herein by reference (the "Premises"), now consisting of 122,320
square feet and described as follows:
5601-1 60,000 Square Feet
5601-2 10,720 Square Feet
5601-3 41,600 Square Feet
5601-4 10,000 Square Feet
all areas approximate, all located at 0000 Xxxxxxxxx Xxxxxxxxx, Xxxxxxxxx, Xxxxx
Xxxxxxxx; and
WHEREAS, the initial Lease term terminated at Midnight on August 31, 1996,
and by the terms of the Lease TENANT prevented such termination by renewing the
Lease upon the same terms and conditions contained in the Lease; and
WHEREAS, TENANT has notified LANDLORD of its desire to renew the Lease for
an additional three (3) year term beginning June 1, 1997 and the parties have
agreed upon the monthly rental to be paid by TENANT to LANDLORD during said
renewal term and the terms and conditions thereof;
NOW, THEREFORE, in consideration of the rents to be paid and the mutual
promises and covenants herein contained, LANDLORD does hereby agree to continue
leasing to TENANT, and TENANT does hereby agree to continue leasing from
LANDLORD, the Premises on the terms and conditions hereinafter set forth:
1. The renewal term of the Lease and the accrual of the rent hereunder shall be
for a period of three (3) years commencing on June 1, 1997 and terminating at
Midnight on May 31, 2000. The rental for the renewal term of the Lease shall
be $855,016.80 and shall be payable in advance in monthly installments of
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$23,750.47 each to LANDLORD's agent, US Commercial, 0000 Xxxxxxxx Xxxx,
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Xxxxx 000, Xxxxxxxxx, Xxxxx Xxxxxxxx 00000 until notice to the contrary is
given by LANDLORD.
2. OPTION TO RENEW. LANDLORD gives TENANT an additional option to renew for a
period of three (3) years under the same terms and conditions in the initial
lease at the rental rate set forth herein increased by the percentage change
in the Consumer Price Index spreadsheet of the U.S. Government, from the date
hereof to the date of the renewal lease agreement, for the narrowest reported
area in which the city of Charlotte, state of North Carolina, is located.
TENANT shall notify LANDLORD in writing of his intent to exercise such option
six (6) months prior to expiration of this Lease.
3. Except as modified by the terms hereof, all terms and conditions of the
initial Lease shall apply throughout the renewal term of the Lease and are
hereby ratified and confirmed by the parties in every respect.
IN WITNESS WHEREOF, the parties hereto have caused these presents to be
executed as of the day and year first above written.
IN TESTIMONY WHEREOF, the LANDLORD and TENANT have caused these presents to
be executed and delivered as of the day and year stated above.
ATTEST: XXXXXXX AND XXXXXXX
/s/ Xxxxxx X. State By: /s/ Xxxxx X. Xxxxxxx, Xx.
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ATTEST: ATLANTIC DESIGN COMPANY, INC.
________________________________ By: /s/ Xxxxx X. Xxxxxxxxx
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STATE OF North Carolina
COUNTY OF Mecklenburg
I, Xxxxx Xxxxxx, a Notary Public in and for said county and state hereby
certify that Xxxxx X. Xxxxxxxxx personally came before me and acknowledged the
due execution of the foregoing instrument.
WITNESS my hand and notarial seal this 25 day of June, 1997.
/s/ Xxxxx Xxxxxx
--------------------------------
Notary Public
My commission expires:
My commission expires February 22, 1998
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STATE OF South Carolina
COUNTY OF Greenville
I, Xxxxxxx X. Xxxx, a Notary Public in and for said county and state hereby
certify that Xxxxx X. Xxxxxxx, Xx. personally came before me and acknowledged
the due execution of the foregoing instrument.
WITNESS my hand and notarial seal this 27 day of June, 1997.
/s/ Xxxxxxx X. Xxxx
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Notary Public
My commission expires: May 31, 1999
STATE OF
COUNTY OF
I, _________________, a Notary Public in and for said county and state
hereby certify that ________________ personally came before me and acknowledged
the due execution of the foregoing instrument.
WITNESS my hand and notarial seal this ___ day of _________________, 19__.
_________________________________
Notary Public
My commission expires:
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January 7, 1997
Xx. Xxxx XxXxxxxxx
Atlantic Design Company
0000 Xxxxxxxxx Xxxxxxxxx
Xxxxxxxxx, XX
Dear Xxxx:
Enclosed is a Letter of Understanding concerning the contingencies to the
renewal of the lease of the property at 5601, 2, 3, 4 Xxxxxxxxx Boulevard.
I have also submitted this to Xxxxx Xxxxxxx today. If you have any questions or
comments please let me know.
Sincerely,
/s/ Xxxxxx X. Xxxxx
Xxxxxx X. Xxxxx
MKW:mjg
Enclosure
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January 7, 1997
LETTER OF UNDERSTANDING
BETWEEN ATLANTIC DESIGN COMPANY, INC., "TENANT"
AND XXXXXXX AND XXXXXXX, "LANDLORD"
Concerning property at 5601-1 through 0000 Xxxxxxxxx Xxxx., Xxxxxxxxx, XX
It is acknowledged that in accordance with the Lease Agreement between the
Parties dated the first day of September, 1993 that Tenant has notified Landlord
of its intent to exercise the option to renew in a manner acceptable to both
Parties.
LANDLORD agrees to:
1. Construct a security fence along the rear property line of approximately
eight feet high with barbed wire, approximately 700 feet long. Landlord will
accommodate Tenant in this area however Tenant needs to identify the subject,
get estimates, etc.
2 Install a second (back-up) pump as part of the operation of the sanitary
sewer system that serves all of the property.
3. Patch areas in the parking lot, approximately 15, and sealcoat the remainder
of the front parking lot.
4. Give option for a new lease at the expiration of the current option extension
for an additional three year period under the same terms and conditions.
Consider Atlantic Design Company, Inc. as the initial tenant in the event a
new building addition of forty to fifth thousand square feet is constructed
contiguous with Building 5601-1. The lease rate will be based on percentage
of the total cost of the addition which shall include the pro-rated value of
the land on which it is constructed. It is proposed that the terms will be
negotiated, however the rate and terms may be determined and contingent upon
the financing terms of a new structure. Not less than a ten year term will
be required to finance a new structure however negotiations might incorporate
the current leased buildings with a xxxxx of rates and terms that in effect
allows a similar amortization.
5. Upgrade the air conditioning system in Building 5601-1 to the minimum
standard. Atlantic Design Company, Inc. will furnish a survey report of the
existing system and recommendations and will pay excess over costs of
installing a minimum system, if any. Landlord's responsibility herewith is
limited to the addition of a minimum of two additional ten ton air
conditioning units.
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TENANT agrees to:
1. Property tax increase. Due to efforts by the Landlord, although taxes have
increased the owner was able to appeal and obtain a reduction in the assessed
value therefore there have been no increases in the dollar amount during the
previous term of your lease.
The above has been discussed between Xxxxxxx and Xxxxxxx, Atlantic Design
Company, Inc. and myself and I believe it to be true and accurate as hereinabove
stated.
Sincerely,
/s/ Xxxxxx X. Xxxxx
Xxxxxx X. Xxxxx
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