HOLLADAYBUILDING EAST L.L.C. FIRST LEASE EXTENSION AGREEMENT
Exhibit 10.10
HOLLADAY BUILDING EAST L.L.C.
FIRST LEASE EXTENSION AGREEMENT
THIS AGREEMENT MADE and entered into this 25th day of January 2002, by and between Holladay Building East L.L.C. (“Lessor”) and Overstock.com (“Lessee”).
RECITALS:
A. Beckstrand & Associates, as Lessor, and Lessee previously entered into a Lease Agreement dated November 27, 2001, for the premises located at 6322 South 3000 East, Suite #105 consisting of approximately 3,095 rentable square feet (“the Lease”).
B. Lessor is the present owner of the building in which the leased premises are located.
C. Under the terms of the Lease, Lessee has an option to extend the Lease.
D. Lessee desires to exercise its option to extend the Lease.
NOW, THEREFORE, the parties agree as follows:
1. Extension of Lease. The lease shall be extended for a period of Three (3) years and One (1) month, beginning on January 1, 2004, and terminating on January 31, 2007.
2. Base Rent.
a. January, 2004 — December, 2004: $4,218.37 per month ($16.36 per rsf)
b. January, 2005 — December, 2005: $4,334.42 per month ($16.81 per rsf)
c. January, 2006 — January, 2007: $4,453.07 per month ($17.27 per rsf)
3. Operating Expenses. Effective January, 2004, Lessee shall pay as additional rent, its proportionate share of expenses for the Building (as defined in Sections 4.3 through 4.7 in the Lease Agreement dated January 23, 2002 between Lessee and Lessor for Suite # 100) the terms of which are incorporated herein by this reference. As of January, 2002, Lessor estimates the operating expenses to be approximately $5.75 per rentable square foot of space per year.
4. Tenant Improvements. Lessee accepts the Premises “as is”.
5. Provisions of Lease. During the extended term of the Lease, all terms and conditions of the Lease shall apply except as modified by this Lease Extension Agreement.
IN WITNESS WHEREOF, the parties have executed this Lease Extension Agreement as of the day and year first above written.
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| LESSEE: |
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| HOLLADAY BUILDING EAST L.L.C. |
| OVERSTOCK.COM |
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| By and through is Manager Holladay Building |
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| By | /s/ Jeff Peck |
| By | /s/ Jason Lindsey |
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| Jeff Peck |
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| Its: | Vice President |
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| Its: | CFO |
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| TENANT: OVERSTOCK.COM |
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| Term: | Three (3) Years and One (1) Month | |||||||||
| Monthly Rent Summary per Lease |
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| From/To: | Jan 1, 2004 - Jan 31, 2007 | |||||||||
| OLD MILL CORPORATE CENTER |
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| Annual Increase: |
| Schedule |
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| Building: | 6322 South 3000 East |
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| Useable SF: |
| 2,623 |
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| Suite: | 105 | Note: First Amendment to Lease |
| Rentable SF: |
| 3,095 |
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| dated November 27, 2001 |
| Load Factor: |
| 17.99 | % |
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| USF | RSF |
| Security Dep. |
| $0.00 |
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| Suite #105 | 2546 | 3004 |
| Nonrefund: |
| $0.00 |
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| Kitchen | 77 | 91 |
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| TOTAL: | 2623 | 3095 |
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**RENTAL PAYMENT DUE ON THE FIRST OF THE MONTH**
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| No CAM Due in 2002 and 2003 | Estimated monthly CAM starting Jan., 2004 | ||||
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| Existing Lease dated 11/27/01 | First Amendment to Lease | ||||
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| 2002 | 2003 | 2004 2005 2006 2007 | |||
| JAN | $0.00 | $2,000.00 | $4,218.37 | $4,334.42 | $4,453.07 | $4,453.07 |
| FEB | $0.00 | $2,000.00 | $4,218.37 | $4,334.42 | $4,453.07 |
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| MAR | $0.00 | $2,000.00 | $4,218.37 | $4,334.42 | $4,453.07 |
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| APR | $0.00 | $2,000.00 | $4,218.37 | $4,334.42 | $4,453.07 |
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| MAY | $0.00 | $2,000.00 | $4,218.37 | $4,334.42 | $4,453.07 |
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| JUN | $0.00 | $2,000.00 | $4,218.37 | $4,334.42 | $4,453.07 |
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| JUL | $0.00 | $2,000.00 | $4,218.37 | $4,334.42 | $4,453.07 |
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| AUG | $0.00 | $2,000.00 | $4,218.37 | $4,334.42 | $4,453.07 |
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| SEP | $0.00 | $2,000.00 | $4,218.37 | $4,334.42 | $4,453.07 |
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| OCT | $0.00 | $2,000.00 | $4,218.37 | $4,334.42 | $4,453.07 |
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| NOV | $0.00 | $2,000.00 | $4,218.37 | $4,334.42 | $4,453.07 |
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| DEC | $0.00 | $2,000.00 | $4,218.37 | $4,334.42 | $4,453.07 |
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| 0.00 | 24,000.00 | 50,620.44 | 52,013.04 | 53,436.84 | 4,453.07 |
| NUMBER OF MONTHS (EXTENDED TERM): |
| 37.00 |
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| TOTAL RENT PER EXTENDED TERM OF LEASE: |
| $160,523.39 |
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| ADDITIONAL NOTES: |
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| Total SF | Cost |
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| 3095 | Per SF |
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| Janitorial: | Lessor | (Triple Net Lease effective Jan 1, 2004) |
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| Utilities: | Lessor |
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| Rent/Mo. | 4,218.37 | 16.36 |
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| Taxes: | Lessor |
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| T.I. + # Mo.* | 0.00 | 0.00 |
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| % Complex: | 2.06% |
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| Other/Mo. | 0.00 | 0.00 |
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| BaseRent Schedule: |
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| Jan, 2004 - Dec, 2004: $4,218.37 per month ($16.36 per rsf) |
| Net Rates: | $4,218.37 | $16.36 |
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| Jan, 2005 - Dec, 2005: $4,334.42 per month ($16.81 per rsf) |
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| Jan, 2006 - Jan, 2007: $4,453.07 per month ($17.27 per rsf) |
| *Estimated Cost of Tenant Improvements | |||||||
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| Operating Expenses: See First Lease Extension Agreement. |
| T.I. |
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| $0.00 |
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| Tenant Improvements: Lessee accepts the Premises “as is.” |
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| Interest Rate: | 12.00% |
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OVERSTOCK #105
RENT BREAKDOWN SUMMARY
RENTABLE SQUARE FEET: 3,095
| YEAR | MONTHLY BASE RENT | OVERSTOCK RATE FOR #100 | $15,000 OVER YEARS 3 THROUGH 5 | TOTAL MONTHLY BASE RENT |
| MONTHLY CAM (ESTIMATED) |
| TOTAL MONTHLY PAYMENT |
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| 2002 | $0.00 | N/A | $0.00 | $0.00 |
| N/A |
| $0.00 |
| 2003 | $2,000.00 | N/A | $0.00 | $2,000.00 |
| N/A |
| $2,000.00 |
| 2004 | $3,801.70 | $14.74 | $416.67 | $4,218.37 |
| $1,483.02 |
| $5,701.39 |
| 2005 | $3,917.75 | $15.19 | $416.67 | $4,334.42 |
| $1,483.02 |
| $5,817.44 |
| 2006 | $4,036.40 | $15.65 | $416.67 | $4,453.07 |
| $1,483.02 |
| $5,936.09 |
| 2007 (1 month) | $4,036.40 | $15.65 | $416.67 | $4,453.07 |
| $1,483.02 |
| $5,936.09 |
*NOTE: I have extended the lease term for #105 an extra month to have the two leases expire together.
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