EXHIBIT 10.11.1

 

BAKER CENTER
AMENDMENT OF LEASE

 

DATE:

 

December 29, 2005

 

 

 

 

 

 

 

BETWEEN:

 

ST. PAUL PROPERTIES, INC.
400 U.S Trust Building
730 Second Avenue South
Minneapolis, MN 55402

 

(“Landlord”)

 

 

 

 

 

AND:

 

ESCHELON TELECOM, INC.
900 U.S. Trust Building
730 Second Avenue South
Minneapolis, MN 55402

 

(“Tenant”)

 

IN RESPECT OF PREMISES IN: Investors, Roanoke and U.S. Trust Buildings,
Minneapolis, Minnesota

 

LANDLORD AND TENANT hereby agree as follows:

 

1.         In this Amendment of Lease:

 

(a)       “Buildings” means Investors and Roanoke Buildings located in the city
of Minneapolis.

(b)      “Premises” means the area defined as Premises under Article 1.00 (0) of
the Lease.

(c)       “Lease” means the lease between Landlord and Tenant dated November 18,
2003; covering the Premises.

(d)      “Amendment Date” means the 29th day of December, 2005.

 

2.         Effective on the Amendment Date, Article 3.01 of the Lease is
deleted, and the following is substituted therefor:

 

3.01       “Term. Notwithstanding Articles 3.02 and 3.03, the term of this Lease
shall be nine (9) years six (6) months, beginning on the first day of the month
of December, 2003 and ending on the last day of the month of May, 2013, unless
terminated earlier as provided in this Lease.

 

3.         Effective on the Amendment Date, Article 4.01 of the lease is deleted
and the following substituted therefore.

 

4.01       “Annual Rent” Tenant shall pay to Landlord as Annual Rent for the
Premises the following:

 

Term

 

SF

 

Rate

 

Annual Rent

 

Monthly
Rent

 

12-1-03 – 11-30-04

 

95,037

 

$

5.50

 

$

522,703.50

 

$

43,558.63

 

12-1-04 – 11-30-05

 

95,037

 

$

7.50

 

$

712,777.50

 

$

59,398,13

 

12-1-05 – 3-31-06

 

95,037

 

$

7.75

 

$

736,536.75

 

$

61,378.06

 

04-1-06 – 11-30-06

 

71,261

 

$

7.75

 

$

552,272.75

 

$

46,022.73

 

12-1-06 – 11-30-07

 

71,261

 

$

8.00

 

$

570,088.00

 

$

47,507.33

 

12-1-07 – 11-30-08

 

71,261

 

$

8.25

 

$

537,903.25

 

$

48,991.94

 

12-1-08 – 11-30-09

 

71,261

 

$

8.50

 

$

605,718.50

 

$

50,476.54

 

12-1-09 – 11-30-10

 

71,261

 

$

8.75

 

$

623,533.75

 

$

51,961.15

 

12-1-10 – 11-30-11

 

71,261

 

$

9.00

 

$

641,349.00

 

$

53,445.75

 

12-1-11 – 5-31-13

 

71.261

 

$

9.25

 

$

659,164.25

 

$

54,930.35

 

 

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Payable in advance and without notice in monthly installments (each equal to
one-twelfth of the Annual Rent) on the Commencement Date and on the first day of
each calendar month thereafter during the Term.

 

4.         Effective on the Amendment Date, the following is added as Article
32.00:

 

ARTICLE 32.00 Additional Premises

 

32.01     “Additional Premises” means the area on the eleventh floors of the
Buildings as indicated on Exhibit 1 attached hereto, hereby deemed to contain
46,664 square feet. For the purpose of calculating Occupancy Costs, 31,611
square feet of the Additional Premises is in the Investors Building, shown on
Exhibit 2 attached hereto and 15,053 square feet of the Additional Space is in
the Roanoke Building, shown on Exhibit 3 attached hereto.

 

32.02     “Term” The Term on the Additional Premises shall commence on the
“Additional Premises Commencement Date” which shall be April 1, 2006, subject to
the substantial completion of Tenant Improvements set forth in Article 33.00 of
this Lease and terminate on the same day of the Premises.

 

32.03     “Rent” Tenant shall pay to Landlord as Annual Rent for the Additional
Premises, the following:

 

Term

 

SF

 

Rate

 

Annual Rent

 

Monthly
Rent

 

4-1-06 – 3-31-07

 

46,664

 

$

9.10

 

$

424,642.40

 

$

 35,386.87

 

4-1-07 – 3-31-08

 

46,664

 

$

9.25

 

$

431,642.00

 

$

 35,970.17

 

4-1-08 – 3-31-09

 

46,664

 

$

 3.35

 

$

436,308.40

 

$

 36,359.03

 

4-1-09 – 3-31-10

 

46,664

 

$

 9.50

 

$

443,308.00

 

$

 36,942.33

 

4-1-10 – 3-31-11

 

46,664

 

$

 9.65

 

$

450,307.60

 

$

 37,525.63

 

4-1-11 – 3-31-12

 

46,664

 

$

 9.75

 

$

454,974.00

 

$

 37,914.50

 

4-1-12 – 11-31-12

 

46,664

 

$

 9.90

 

$

461,973.60

 

$

 38,497.80

 

12-1-12 – 5-31-13

 

46,664

 

$

 9.25

 

$

431,642.00

 

$

 35,970.17

 

 

Payable in advance and without notice in monthly installments (each equal to
one-twelfth of the Annual Rent) on the Additional Premises Commencement Date and
on the first day of each calendar month thereafter during the Term.

 

32.04     “Occupancy Costs” Tenant shall pay to Landlord, at the times and in
the manner provided in Article 4.06 of the Lease, the Occupancy Costs for the
Additional Premises, determined for the Building in which the Additional
Premises are located using Exhibit B-1 for Roanoke portion of Additional
Premises and Exhibit B-2 for Investors portion of Additional Premises.

 

5.         Effective on the Amendment Date the following is added as Article
33.00 of the Lease:

 

ARTICLE 33.00 Landlord Work

 

33.01 “Landlord Work” Prior to the Additional Premises Commencement Date,
Landlord shall construct the Additional Premises in accordance with the plans
and specifications prepared by Tenant and approved by Landlord, (“the Plans”)
which when approved shall be referenced as Exhibit 4 of this Amendment. Landlord
shall contribute an amount equal to $18.00 per square foot leased ($839,952.00)
to offset the cost of the tenant improvements below the ceiling and Tenants
occupancy of the Additional Premises “Tenant Improvement Allowance”. Landlord,
at its expense, will install the ceiling to accommodate the Plans including: a
2x2 ceiling grid, 2x2 acoustic ceiling tiles, HVAC diffusers, sprinkler

 

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heads, 2x4 parabolic light fixtures and life, fire and safety equipment in
accordance with local building codes per the Plans.

 

6.         Effective on the Amendment Date the following is added as Article
34.00 of the Lease:

 

ARTICLE 34.00 Rent Abatement

 

34.01     “Rent Abatement” Provided Tenant is not in default under the Lease,
Tenant shall not be responsible for the payment of Annual Rent and Occupancy
Costs on 22,888 square feet of the Additional Premises for the initial two
months of the Term.

 

7.         Effective on the Amendment Date the following is added as Article
35.00 of the Lease:

 

ARTICLE 35.00 Partial Surrender of Premises

 

35.01     “Partial Surrender of Premises” Tenant, effective on May 31, 2006 –
“Surrender Date” surrenders and yields up that portion of the Premises on the
eighth floor of the U.S. Trust Building, containing 23,776 square feet of space
“Surrendered Premises” to Landlord from and after the Surrender Date for the
unexpired portion of the Term of the Lease, and Landlord hereby accepts this
surrender of the Lease and Surrendered Premises from and after the Surrender
Date. The “Remaining Premises” means that portion of the Premises containing
71,261 square feet.

 

35.02     Tenant shall promptly quit and surrender possession of the Surrendered
Premises to Landlord on the Surrender Date in good order and condition,
reasonable wear and tear and damage by fire other casualty excepted. Any
property of Tenant not removed from the Surrendered Premises on or before the
Surrender Date shall be and become the property of the Landlord absolutely.

 

35.03     The respective rights and obligations of Landlord and Tenant with
respect to the Surrendered Premises shall be preserved and shall survive the
Surrender Date as to all matters arising or accruing prior to the Surrender
Date, but no such rights or obligation will arise or accrue to either of them on
or after the Surrender Date.

 

35.04     Tenant covenants with Landlord that Tenant has in itself the absolute
right, power and authority to surrender the Surrendered Premises as provided
herein, and that Tenant has not taken any action whereby the Surrendered
Premises are or may be charged, encumbered or assigned. Landlord hereby
indemnifies and holds harmless Tenant against any cost incurred by Tenant as a
result of any claim that Landlord does not have in itself the absolute right,
power and authority to accept the surrender of the Surrendered Premises as
provided herein.

 

35.05     The terms and condition of the Lease are confirmed and continued in
full force and effect in respect of the Remaining Premises, provided that from
and after the Surrender Date the Annual Rent for the Remaining Premises shall be
as set out in Section 3 hereof.

 

35.06     This partial surrender of lease shall be binding on the heirs,
administrators, successors and assigns (as the case may be) of the parties
hereto.

 

Except as specifically provided herein, the terms and conditions of this Lease
are confirmed and continued in full force and effect.

 

This Amendment of Lease shall be binding on the heirs, administrators,
successors and assigns (as the case may be) of the parties hereto.

 

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IN WITNESS OF THIS LEASE Landlord and Tenant have properly executed it as of the
date set out on page one.

 

 

LANDLORD:

TENANT:

 

 

ST. PAUL PROPERTIES, INC.

 

 

 

By:

/s/ R. William Insera

 

By:

/s/ Michael A. Donahue.

 

 

 

 

 

 

 

Its:

V.P.

 

Its:

VP Finance & Treasurer

 

 

 

 

 

 

 

1-18-06

 

Michael A. Donahue

Date Executed

Please Print Name

 

 

 

 

 

 

12/30/05

 

 

 

Date Executed

 

 

 

 

 

 

 

Witness to the signature of Tenant if not incorporated.

 

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EXHIBIT 1

 

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EXHIBIT 2

 

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