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EXHIBIT 10.36
NORTH CAROLINA
WAKE COUNTY LEASE MODIFICATION AGREEMENT NO. 2
THIS LEASE MODIFICATION AGREEMENT NO. 2 (the "Agreement") is made and
entered into this 9th day of June, 2000 (the "Execution Date"), by and between
PHOENIX LIMITED PARTNERSHIP OF RALEIGH, a Delaware limited partnership
("Landlord"), and HIGH SPEED NET SOLUTIONS, INC., a Florida corporation
("Tenant").
WITNESSETH:
WHEREAS, Landlord and Tenant entered into that certain Lease Agreement
dated October 15, 1999 (the "Original Lease"), pursuant to which Tenant leased
approximately 1,911 square feet of office space designated as Suite 2120 (the
"Original Premises") in the building known as Two Xxxxxxxx Xxxxxx, Xxxxxxx,
Xxxxx Xxxxxxxx 00000 (the "Building); and
WHEREAS, Landlord and Tenant entered into that certain Lease
Modification Agreement No. 1 dated March 23, 2000 ("Amendment No. 1"), pursuant
to which, on or about May 1, 2000 (the "Target Relocation Date"), Tenant
relocated to approximately 4,874 square feet of office space on the twenty-first
(21st) floor of the Building (the "Relocated Premises"), which Relocated
Premises was also designated as Suite 2120. (The Original Lease and Amendment
No. 1 are incorporated herein by reference in their entirety and hereinafter
collectively referred to as the "Lease". Terms used and not otherwise defined
herein shall have the meaning ascribed to them in the Lease.); and
WHEREAS, Tenant did not move to the Relocated Premises on May 1, 2000,
but moved to the Relocated Premises effective as of June 12, 2000 ("Tenant's
Relocation Date"); and
WHEREAS, Tenant desires to expand back into the Original Premises, and
Landlord agrees to such expansion; and
WHEREAS Landlord and Tenant desire to modify the Lease by (i) setting
forth Tenant's Relocation Date, and (ii) expanding Tenant's obligations with
regard to the Lease for an additional 1,911 square feet of space comprising the
Original Premises, upon the terms and conditions contained herein.
NOW, THEREFORE, in consideration of the premises, rent, mutual
covenants and conditions contained herein, and other good and valuable
consideration, the receipt and sufficiency of which are acknowledged, Tenant and
Landlord hereby agree as follows:
1. BASIC LEASE PROVISIONS. SECTION 2.01 of the Lease is amended to
reflect that, effective as of the Execution Date, Landlord shall let, lease and
demise to Tenant the approximate 1,911 square feet of office space on the
twenty-first (21st) floor in the Building that was the Original Premises
("Expansion No. 1") as further described on the attached EXHIBIT A-1-B, which is
attached hereto and made a part hereof by reference in its entirety. Effective
as of the Execution Date, the Lease is amended accordingly to show that the
Leased Premises shall thereafter contain 6,785 square feet of space, including
the space within Expansion No. 1 and including the description of Expansion No.
1, and the term "Leased Premises" as used in the Lease and in this Agreement,
shall thereafter contain 6,785 square feet of space, including the space within
Expansion No. 1 and including the description of Expansion No. 1.
Notwithstanding the foregoing, Landlord and Tenant acknowledge and agree that
Tenant has been in occupancy of Expansion No. 1 as the Original Premises and
shall remain in occupancy thereof as Expansion No. 1. Effective as of the
Execution Date, SECTION 2.01 of the Lease shall be amended as follows:
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(i) SUBSECTION 2.01(B) of the Lease (Floor/Suite/Square Feet)
is amended by the addition of Expansion No. 1. Therefore, the
third line of SUBSECTION 2.01(B) is amended by deleting the
Square Feet Area of "4,874" and inserting the Square Feet Area
of "6,785" in lieu thereof;
(ii) SUBSECTION 2.01(D) of the Lease (Base Rent) is amended to
reflect the addition of Expansion No. 1 to the Base Rent. Base
Rent for Expansion No. 1 shall be calculated at Eighteen
Dollars and Fifty Cents ($18.50) per square foot per annum,
with such Base Rent for Expansion No. 1 escalating by Fifty
Cents ($.50) per square foot per annum, each Lease Year during
the Term ("Lease Year" shall mean that twelve-month period
from October 1st through the following September 30th of each
year of the Term). Notwithstanding the foregoing, the Base
Rent escalation for Expansion No. 1 (and not for the remainder
of the Leased Premises) (i) shall not be subject to the
provisions of SECTION 4.05 of the Lease, and (ii) shall not
commence until October 1, 2001. Therefore, SUBSECTION 2.01(D)
of the Lease shall be amended by deleting Base Rent chart
currently set forth therein and inserting the following Base
Rent chart in lieu thereof:
--------------------------------- ------------ ------------------------ ------------------------- -----------------------
"DATES: PRICE PER SQUARE FEET AREA (FOR ANNUAL BASE RENT MONTHLY BASE RENT
SQUARE FOOT PURPOSES OF BASE RENT
(BLENDED CALCULATION)
RATE AFTER
6/30/00)
--------------------------------- ------------ ------------------------ ------------------------- -----------------------
10/1/99 through 6/11/00 $16.25 1,911 $31,053.72 $2,587.81
--------------------------------- ------------ ------------------------ ------------------------- -----------------------
6/12/00 through 6/30/00 $16.63 4,874 $81,054.60 $6,754.55
(Base Rent waived for (Base Rent waived for (Base Rent waived for
Expansion No. 1) Expansion No. 1) Expansion No. 1)
--------------------------------- ------------ ------------------------ ------------------------- -----------------------
7/1/00 through 9/30/00 $17.16 6,785 (50% of Base $100,973.46 (50% of $8,414.46 (50% of
Rent waived for Base Rent waived for Base Rent waived for
Expansion No. 1) Expansion No. 1) Expansion No. 1)
--------------------------------- ------------ ------------------------ ------------------------- -----------------------
10/01/00 through 9/30/01 $17.49 6,785 $118,650.24 $9,887.52
--------------------------------- ------------ ------------------------ ------------------------- -----------------------
10/01/01 through 9/30/02 $17.98 6,785 $121,993.92 $10,166.16
--------------------------------- ------------ ------------------------ ------------------------- -----------------------
10/01/02 through 9/30/03 $18.47 6,785 $125,337.72 $10,444.81
--------------------------------- ------------ ------------------------ ------------------------- -----------------------
10/01/03 through 9/30/04 $18.97 6,785 $128,681.40 $10,723.45
--------------------------------- ------------ ------------------------ ------------------------- -----------------------
10/01/04 through 9/30/05 $19.47 6,785 $132,074.04 $11,006.17"
--------------------------------- ------------ ------------------------ ------------------------- -----------------------
Notwithstanding the foregoing, Tenant shall also continue to
be responsible for Additional Rent payments under the Lease.
2. TENANT IMPROVEMENTS FOR EXPANSION NO. 1. Effective as of
the Execution Date, SECTION 7.01 of the Lease shall be amended by the addition
of the following paragraph:
"Landlord and Tenant acknowledge and agree that Tenant has been in
occupancy of Expansion No. 1 as the Original Premises and shall remain
in occupancy thereof (as Expansion No. 1). Tenant has had an
opportunity to inspect and satisfy itself as to the condition of
Expansion No. 1 and agrees to accept the Expansion No. 1 "AS IS,"
"WHERE IS" and "WITH ALL FAULTS"."
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3. AFFIRMATION OF LEASE TERMS. Except as expressly modified herein, the
original terms and conditions of the Lease shall remain in full force and
effect.
4. BINDING AGREEMENT. This Agreement shall be binding upon the parties,
their representatives, heirs, successors and assigns.
5. COUNTERPARTS. This Agreement may be executed in any number of
counterparts, each of which shall be an original, but all of which taken
together shall constitute one and the same instrument.
IN WITNESS WHEREOF, the parties hereto have caused this instrument to
be executed by their duly authorized representatives, this the day and year
first above written.
LANDLORD:
Phoenix Limited Partnership of Raleigh, a Delaware
limited partnership (SEAL)
By: Acquisition Group Inc., Its Managing General
Partner (SEAL)
By: /s/ XXXXX XXXXXXXXX (SEAL)
---------------------------------
Xxxxx Xxxxxxxxx, Vice President
TENANT:
High Speed Net Solutions, a Florida corporation
By: /s/ XXXX X. XXXXXXXXXX
---------------------------------
Name: Xxxx X. Xxxxxxxxxx
Title: Executive Vice President
(Corporate Seal)
ATTEST:
By: ILLEGIBLE
-------------------------------------
Asst. Secretary
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EXHIBIT A-1-B
(page 1 of 2)
EXPANSION NO. 1
Two Hannover Square
000 Xxxxxxxxxxxx Xxxxxx Xxxx, 00XX xxxxx
Xxxxxxx, Xxxxx Xxxxxxxx 00000
[FLOORPLAN]
1,662 Occupied Square Feet
X 1.15 Common Area Percentage Factor
1,911 Square Feet
= Expansion No. 1
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EXHIBIT A-1-B
(page 2 of 2)
ENTIRE LEASED PREMISES (INCLUDING EXPANSION NO. 1)
Two Hannover Square
000 Xxxxxxxxxxxx Xxxxxx Xxxx, Xxxxx 0000
Xxxxxxx, Xxxxx Xxxxxxxx 00000
[FLOORPLAN]
4,874 square feet of Leased Premises prior to Expansion No. 1 plus 1,911 square
feet contained in Expansion No. 1 = 6,785 square feet entire Leased Premises
5,900 Occupied Square Feet
X 1.15 Common Area Percentage Factor
6,785 Square Feet
= Leased Premises (prior to Expansion No. 1) plus
Expansion No. 1 = entire Leased Premises
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