LEASE EXTENSION AGREEMENT
This Agreement made as of May 15, 2002 between Sprout Development Co., a New
Jersey general partnership (hereinafter referred to as "Landlord") with an
address at 00 Xxxxxxxx Xxx, Xxxxxx, X.X. 00000, and Xxxxxx Electronics, Inc.
formerly the Xxxxxx Group Inc., a New York Corporation (hereinafter referred to
as "Tenant"), with offices at 000 Xxxxx Xxx., Xxxxxxxxx, X.X. 00000. Tenant has
been leasing 8,446 sq. ft. of space from Landlord at 000 Xxxxx 00 Xxxxx,
Xxxxxxx, X.X. 00000, under terms of a lease dated October 18, 1985. This lease
has been subsequently modified by a First Amendment dated June 29, 1993, a
Second Amendment dated February 15, 1996, a Third Amendment dated July 16, 1996,
(the "Lease Agreement") and a corporate guaranty dated June 29, 1993.
Tenant and Landlord agree to extend the Lease Agreement with amendments and
guaranty which will continue to be in effect during the extended lease term from
the current expiration date of June 30, 2003 to June 30, 2015 under the
following terms and conditions.
1. The rent during the extended lease term is as follows based on an initial
rent of $37.77 per sq. ft. with 3% annual increases.
$ Annual Rent $ Monthly Base Rent
7/1/03-6/30/04 319,005 26,584
7/1/04-6/30/05 328,576 27,381
7/1/05-6/30/06 338,432 28,203
7/1/06-6/30/07 348,586 29,049
7/1/07-6/30/08 359,043 29,920
7/1/08-6/30/09 369,815 30,818
7/1/09-6/30/10 380,909 31,742
7/1/10-6/30/11 392,336 32,695
7/1/11-6/30/12 404,107 33,676
7/1/12-6/30/13 416,230 34,686
7/1/13-6/30/14 428,717 35,726
7/1/14-6/30/15 441,578 36,798
2. Landlord agrees to provide a rent credit totaling $27,536 after Tenant
completes construction of a new "theatre room" in 2002 or 2003 at the demised
premises.
3. Landlord agrees to provide a $20,000 rent credit after Tenant completes
construction of a new "cash wrap area" in 2003 at the demised premises.
/s/ /s/
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Tenant Landlord
