EXHIBIT 10.22(a)
FIRST AMENDMENT OF LEASE
THIS FIRST AMENDMENT OF LEASE dated this 19th day of October, 1994, is
made and entered into by and between CHIPPEWA LIMITED PARTNERSHIP, (hereinafter
referred to as "Landlord"), and CASE/DATATEL, INC., (hereinafter referred to as
"Tenant"), for the premises known as ▇▇▇▇ ▇▇▇▇▇▇▇▇ ▇▇▇▇▇, is entered into upon
the following terms and conditions:
W I T N E S S E T 11:
WHEREAS, Landlord and Tenant executed and delivered a Lease
Agreement dated October 4, 1989, for the premises known as ▇▇▇▇ ▇▇▇▇▇▇▇▇ ▇▇▇▇▇,
and
WHEREAS, Landlord and Tenant executed and delivered an Assignment of
Lease to ▇▇▇▇▇ ▇▇▇▇ & Associates dated October 4, 1989, and
WHEREAS, Landlord and Tenant desire to amend this Lease Agreement as
hereinafter set forth.
NOW, THEREFORE, in consideration of the mutual covenants and
agreements, the parties hereby agree to amend the Lease Agreement for the 72,342
leasable square feet of space, upon the following terms and conditions:
1. Landlord and Tenant hereby mutually agree to extend the term of
this Lease for an additional five (5) year term commencing November 1, 1994 and
terminating October 31, 1999.
2. Tenant agrees to pay rent to Landlord according to the following
industrial gross rental schedule:
TERM DOLLARS MONTHLY ANNUAL
/S.F. RENTAL RENTAL
11/01/94-10/31/96 $7.40 $44,610.90 $535,330.80
11/01/96-10/31/97 $7.60 $45,816.60 $549,799.20
11/01/97-10/31/99 $8.00 $48,228.00 $578,736.00
3. Tenant's name was changed from Case/Datatel, Inc. to ▇▇▇▇▇
Communications, Inc- and again changed from ▇▇▇▇▇ Communications to Cray
Communications effective September 1, 1992.
4. Current base year (1990-1991) shall remain as base year for the
purpose of determining proportional share of real estate taxes and insurance.
5. Landlord will provide Tenant with a $30,000.00 Tenant Improvement
allowance.
6. Provided the Tenant is not in default of any of the terms and
conditions of this Lease or First Amendment of Lease, Tenant shall have the
First Right of Refusal on any space that becomes available space in the
building, subject to existing leases at then market rental rate. Tenant shall
have ten (10) days to accept or reject the space. Should Tenant elect to lease
the available space, the rent shall be at the same rent Tenant is then paying
for its space then under lease and shall be coterminous with the amended lease
term.
7. Landlord shall allow Tenant to erect a prominent, back-lit
building sign identifying the Tenant, at Tenant's sole cost and expense. Tenant
is responsible for obtaining any permits required for erecting the sign and the
sign will be subject to review by Landlord and Park Covenants.
8. Tenant shall have the option to terminate this Lease Agreement
and First Lease amendment after three (3) years and after four (4) years. Should
the Tenant elect to exercise this termination option after three (3) years, the
cancellation penalty will be $202,598.50. Should the Tenant elect to exercise
this termination option after four (4) years, the cancellation penalty will be
$124,207.50.
9. All other terms and conditions of Tenant's existing Lease shall
remain in full force and effect.
10. Tenant shall provide Landlord Six (6) months written notice of
its desire to renew its Lease. The renewal term shall be five (5) years. The
Lease rate during the renewal term shall be established
using the Three (3) Broker Method. Upon Landlord receiving written notice of
Tenant's desire to renew, Landlord and Tenant shall have fifteen (15) calendar
days to select a Broker. The Landlord and Tenant selected brokers shall then
have seven (7) calendar days to mutually agree upon the third Broker. The three
(3) Brokers shall then have Fourteen (14) calendar days to submit simultaneously
to Landlord and Tenant their opinion of the then Market Renewal Rate for
comparable size, geographic and facility transactions. This option must be
supported by a minimum of five (5) market comparable transactions.
The renewal rate quoted by the Brokers shall be quoted on an Industrial
Gross Basis and the rate shall be flat, i.e. non-escalating during the five (5)
year renewal period. The three (3) Broker rate quotes shall be averaged and then
multiplied by 9.5% to establish a binding rental rate for the renewal period.
Example:
Broker #1 Quote - $5.00
Broker #2 Quote - $6.00
Broker #3 Quote - $5.50
Calculation:
($5.00 + $6.00 + $5.50) (3 x .95) $5.23
Example Renewal Rate:
$5.23 Industrial Gross Flat for five (5) years
IN WITNESS WHEREOF, the parties hereto have executed this Second Amendment
of Lease the day and year first written above.
WITNESS: LANDLORD:
CHIPPEWA LIMITED PARTNERSHIP
By: /s/ ▇▇▇▇▇▇ ▇▇▇▇
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General Partner/ Landlord
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WITNESS: TENANT:
CRAY COMMUNICATIONS, INC.
By: /s/ ▇▇▇ ▇▇▇▇▇▇▇▇
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▇▇▇ ▇▇▇▇▇▇▇▇
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Print Name
Controller
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Title
10/19/94
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Date
