FREANEL & SON GILBERT, LLC LEASE L-7329 AMEND 1
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LEASE NO L-7329 AMENDMENT NO. 1 C-22-03-111-04-01 AMENDMENT TO LEASE AGREEMENT BETWEEN FREANEL & Son Gilbert, LLC, LESSOR AND MARICOPA COUNTY, LESSEE RECITALS A. Lessor and Lessee are parties to that certain lease Agreement No. L-7329 with Gilbert Towne Center Associates, Limited Partnership and dated December 18, 2002 and approved by the Maricopa County Board of Supervisors. The lease is for premises at 735 N. Gilbert Road, Gilbert, AZ, consisting of 14,700 square feet of area. Effective February 01, 2005 the building for the subject lease was sold to FREANEL & Son Gilbert, LLC with all terms of the original lease remaining in force. B. The term of the lease expires on May 31, 2010. C. Lessor and Lessee now mutually desire to amend the lease to increase the leased area, to amend the lease term, to note the change in ownership and to adjust the annual rental schedule. AGREEMENT NOW THEREFORE, in consideration of the foregoing and other valuable considerations. Lessee and Lessor &free to amend Lease No. L-7329 as follows: 1 Suites 130 and 132 at 745 N. Gilbert Road, consisting of 3,200 square feet shall be included under the terms and conditions of the existing afore mentioned lease and depicted in Exhibit "A". SUITE 134 The original term of the lease shall be extended two (2) additional years from June 1 2010 to May 31. 2012. SUITES 130. 132 The lease term shall be co-terminis with the existing lease and shall be for approximately seven (7) years commencing on the first day of June, 2005 and terminate on the 31 5 day of May 2012. The effective date of this amendment is the date of execution by the Maricopa County Board of Supervisors. Lessee and Lessor may amend the Commencement Date of this Lease by use of Exhibit "C", Commencement Date Confirmation. 3. Lessee agrees to pay as rent, in equal monthly installments, the follows sums: SUITE 134 Year Rate Monthly Annual 10-11 $11.00 s/f $13,475.00 $161.700.00 plus rental tax 11-12 $11.25 slf $13,781.25 $165,375.00 plus rental tax SUITES 130. 132 Year Rate Monthly Annual 05-06 $15.32 s/f $4,085.33 $49,023.96 plus rental tax 06-07 $15.82 s/f $4,218.67 $50,624,04 plus rental tax 07-08 $16.32 s/f $4,352.00 $52.224.00 plus rental tax 08-09 $16.82 s/f $4,485.33 $53,823.96 plus rental tax 09-10 $17.32 s/f $4,618.67 $55.424.16 plus rental tax 10-11 $17.82 s/f $4,752.00 $57,024.00 plus rental tax 11-12 $18.32 s/f $4,885.33 $58,623.96 plus rental tax Lessee agrees to pay all NNN charges on a monthly bases, which are approximately $3.95 per square foot annually. 4. Lessor agrees to make improvements in Suites 130 and 132 as set forth in Exhibit "B" attached hereto and by this reference and made a part thereof at the sole expense of Lessor. Lessor agrees to spend up to $30,000.00 in Tenant Improvements for plans, permits, build-out finish to the Demised Premises. It is currently estimated that the cost for all requested improvements, including signage for the Demised Premises and on the two (2) monument signs will be approximately $60,000.00. Lessee agrees to pay for all improvements above the $30.000.00 allowance within thirty 30-days of billing by Lessor. Article 10 of the lease to be amended to read as follows: Each party (as "indemnitor") agrees to indemnify, defend and hold harmless the other party (as "indemnitee") front and against any and all claims, losses, liability, costs or expenses (including reasonable attorney's fees) (hereinafter collectively referred to as "claims") arising out of bodily injury of any person (including death) or property damage. but only to the extent that such claims which result in vicarious/derivative liability to the indemnitee are caused only by the willful misconduct or gross negligence of the indemnitor, its officers, officials, agents employees, or volunteers. 6. Lessee agrees to install professional window treatments on the storefront windows of Suites 130 & 132 in lieu of a window tinting. 7. Lessee's five (5) year Option to Renew as outlined in Lease at Article 18 for Suite 134 shall be revised as follows: Option: Year one (1) - $11.50 s/f with annual increases of $.25 per square foot per year. Lessee shall have the Option to Renew the lease for one (1) additional term of five (5) years. The minimum Guaranteed Rental shall be as follows: Option: Year one (1) - $19.00 s/f with annual increases of $.25 per square foot per year. 8. The first line of Article 35 shall read as follows: Lessee and Lessor covenant and represent to each other that, except for Keller Williams Realty East Valley, who shall be paid by Lessor pursuant to the terms of a separate agreement, no parties are entitled to be paid a fee or commission in connection with the transaction contemplated by this amendment to the Lease. Not withstanding the maintenance requirements as set forth in Article 13, should Lessee require maintenance or repairs performed pursuant to Article 13, Lessee has the option to request Lessor to perform said maintenance. Upon completion of required maintenance. Lessee shall pay cost of maintenance within thirty days (30) of receipt of invoice from Lessor. 10. The foregoing paragraphs contain all the changes made by this amendment. All other terms arid conditions of the original agreement and as modified by subsequent lease amendments remain the same and in full force and effect. *** ****** ************************************ ******* ***************** IN WITNESS WHEREOF, the parties have signed this Amendment LESSOR: FREANEL & Son Gilbert, LLC LESSEE: Maricopa County Board of Supervisors By: By: YVV\tek Chairman of t oard ATTEST:A Title L14,C DEPUTY Clerk of the Board Date: Date: Lf I p.. DI Oc This Amendment has been reviewed by the undersigned Deputy County Attorney, who has determined that it is proper in form and is within the power and authority granted under the laws of the State of Arizona. 0_2(05/200.5 16:35 FAX 602+84 0 ":4 -: SAiTIN n POLI & BALL Earararr "A" GILBERT TOWNE CENTRE SIM PLAN Exhibit B Tenant Improvements Job Site: Maricopa Work Force 745 N Gilbert Rd Suite 130 & 132 Gilbert, AZ 85234 a) Demo approx 721f of b) Demo back drywall, cut 3070 opening at CMU, install lintel, and wrap opening. c) Remove shells and closet wall with door and repair end walls. d) Build approx 19011 of interior walls with (7) six panel doors, flames and hardware. e) Sidelites at (4) office doors. 0 Insulation in approx 75If of new conference room. g) Frame in header for accordion door. h) (1) New 3070 storefront door. 1) Remove (1) existing restroom door and replace with new 3068 door. j) Install cap on pony walls. k) Remove laundry tub and replace with wall mount sinkffaucet. I) Reroute existing lights to (9) new switches. m) Add (2) exit signs and (3) emergency lights and tie into the existing circuit n) Add (31) duplex outlets per power plan. o) Add (1) new power pole. p) Add (1) supply in IT room. q) Add return air grille in conference room. r) Add (2) AC supplies. s) Change out (4) AC supply grilles to perforated grilles. t) Prime and paint. u) Add carpet, 200 square feet VCT, and 732If covebase. v) Provide dumpster. w) Add (2) floor mount boxes and (1) new circuit panel box. x) Add (33) J Boxes. y) Build approx 20' long x 8' tall accordion wall. z) Demo cabinets and counters in front area. aa) Renovate (I) restroorn in Suite 130 and (1) testroom in Suite 132. bb) Add exit device on exterior door in Suite 130. cc) Add (2) 20 amp-dedicated circuits in IT room. dd) Add (1) TMB, paint, and (2) fire extinguishers. ee) Add (1) new 2x4 T8 electronic ballast troffer light fixtures. COMMENCEMENT DATE CONFIRMATION Landlord: FREANEL & Son Gilbert, L.L.C., an Arizona Limited Liability Company Tenant: Maricopa County a Political Subdivision of the State of Arizona This Commencement Date Confirmation is made by the undersigned Landlord and Tenant pursuant to that certain Office Lease Agreement No. L7297 dated as of December 14, 2000 for certain premises known as Suite 407 in the building commonly known as 1010 East McDowell Road. Lease Commencement Date, Termination Date. Landlord and Tenant hereby agree that the Commencement Date of the Lease is , and the Termination Date of the Lease is LANDLORD: TENANT: FREANEL & Son Gilbert, LLC Maricopa County An Arizona Limited Liability Co. By: By: Its: Its: Real Estate Services Manager