Exhibit 10.20


 




FIRST AMENDMENT TO LEASE


 


THIS FIRST AMENDMENT TO LEASE (“First Amendment”) made as of the 23rd day of December, 2013, by and between Southport Business Park Limited Partnership, a North Carolina limited partnership (the “Landlord”) and Charles & Colvard, LTD., a North Carolina corporation (the “Tenant”).







WITNESSETH:







WHEREAS, Landlord and Tenant entered into a certain lease (“Lease”) dated as of December 9th, 2013 (the “Lease”), for certain premises located at 170 Southport Drive, Morrisville, Wake County, North Carolina (the “Demised Premises”), the Demised Premises being more particularly described in the Lease; and







WHEREAS, Landlord and Tenant desire to modify the terms of the Lease to change the dates of the Lease and the rent schedule; among other things;







NOW THEREFORE, in consideration of the premises contained herein, the sum of Ten Dollars ($10.00) and other good and valuable consideration, the mutual receipt and sufficiency of which is hereby acknowledged, the parties agree to amend the Lease as follows:








	1.	Page Two and Three:  Section 1.02 — TERM OF THE LEASE










In the first paragraph delete “August 31, 2021” and insert the following in its place:







“the last day of the 89th full calendar month following the Commencement Date (the “Expiration Date”),”







In the second paragraph delete “April 1, 2014” and insert the “April 15, 2014” in its place.








	2.	Page Three and Four:  Section 1.04. RENT AND ADJUSTMENTS TO RENT





 


Delete the "Minimum Rent Chart" shown under the first paragraph and insert the following in its place:







	
Lease Year

	 	
Annual


Minimum Rent

	 	 	
Monthly


Minimum Rent

	 	 	
Annual Minimum


Rent Per Rentable


Square Foot

	 
	
Lease Year 1

	 	
$

	
545,160.00

	 	 	
$

	
45,430.00

	 	 	
$

	
15.00

	 
	
Commencement Date through first 12 full months

	 	 	 	 	 	 	 	 	 	 	 	 
	
Lease Year 2

	 	
$

	
560,151.90

	 	 	
$

	
46,679.33

	 	 	
$

	
15.41

	 
	
Months 13 through 24

	 	 	 	 	 	 	 	 	 	 	 	 
	
Lease Year 3

	 	
$

	
575,556.08

	 	 	
$

	
47,963.01

	 	 	
$

	
15.84

	 
	
Months 25 through 36

	 	 	 	 	 	 	 	 	 	 	 	 
	
Lease Year 4

	 	
$

	
591,383.87

	 	 	
$

	
49,281.99

	 	 	
$

	
16.27

	 
	
Months 37 through 48

	 	 	 	 	 	 	 	 	 	 	 	 
	
Lease Year 5

	 	
$

	
607,646.93

	 	 	
$

	
50,637.24

	 	 	
$

	
16.72

	 
	
Months 49 through 60

	 	 	 	 	 	 	 	 	 	 	 	 
	
Lease Year 6

	 	
$

	
624,357.22

	 	 	
$

	
52,029.77

	 	 	
$

	
17.18

	 
	
Months 61 through 72

	 	 	 	 	 	 	 	 	 	 	 	 
	
Lease Year 7

	 	
$

	
641,527.04

	 	 	
$

	
53,460.59

	 	 	
$

	
17.65

	 
	
Months 73 through 84

	 	 	 	 	 	 	 	 	 	 	 	 
	
Partial Year

	 	 	
N/

	
A

	 	
$

	
54,930.75

	 	 	 	
N/

	
A


	
Months 85 through 89

	 	 	 	 	 	 	 	 	 	 	 	 










	3.	Page Five — SECTION 1.05 — RENT ABATEMENT  Delete this section in its entirety and insert the following in its place:





 


Notwithstanding what is shown on the Minimum Rent Chart, no Monthly Minimum Rent shall be due for the following months (the "Abatement Months"): the first seven (7) full months following the Commencement Date.








	4.	Tenant warrants that it has had no dealings with any broker or agent in connection with this First Amendment, other than Aldene "Dee" Creech Osborne, SIOR of NAI Carolantic Realty and Matthew Cooke of Jones Lang LaSalle Brokerage, Inc., and covenants to pay, hold harmless and indemnify Landlord from and against, any and all cost, expense or liability for any compensation, commissions and charges claimed by any other broker or agent with respect to this First Amendment or the negotiation thereof.










Except as herein amended, the terms and conditions of said Lease shall remain in full force and effect. Each person signing as Landlord or Tenant warrants and represents that she or he is authorized to execute and deliver this First Amendment and to make it a binding obligation of Landlord or Tenant.








2










IN WITNESS WHEREOF, the parties hereto have caused this instrument to be executed the date and year first above written.







	
 

	
LANDLORD:

	
	
 

	
 

	
	
 

	
SOUTHPORT BUSINESS PARK LIMITED 


PARTNERSHIP, a North Carolina limited 


partnership

	
	
 

	
 

	
 

	
	
 

	
By:

	
SOUTHPORT BUSINESS PARK

	
	
 

	
INVESTORS CORPORATION, a North Carolina 


corporation, its general partner

	
	
 

	
 

	
 

	
	
 

	
BY:

	
/s/ Richard G. Sullivan

	
	
 

	
 

	
Richard G. Sullivan

	
	
 

	
 

	
Vice President

	
	
 

	
 

	
 

	
	
 

	
TENANT:

	
	
 

	
CHARLES & COLVARD, LTD, a North 


Carolina corporation

	
	
 

	
 

	
 

	
	
 

	
By:

	
/s/ Randy McCullough

	
	
 

	
 

	
Randy McCullough

	
	
 

	
 

	
President & CEO

	









3










EXHIBIT A - ACCEPTANCE OF DEMISED PREMISES AND EXPIRATION DATE MEMORANDUM







ACCEPTANCE OF DEMISED PREMISES


AND EXPIRATION DATE MEMORANDUM







DATE:


 


	
TO:

	
Randy McCullough


	
 

	
President & CEO


	
 

	
Charles & Colvard, Ltd.


	 	
	
FROM:

	
Stephanie Mesnard


	
 

	
General Manager


	
 

	
Southport Business Park


	 	
	
SUBJECT:

	
Commencement Date/Expiration Date





******************************************************************************


This is to record your official Commencement Date of ________, for the Lease dated ________. Per Section 1.02 - Term of the Lease, Landlord and Tenant each agrees to sign a statement confirming the actual date on which the term begins as soon as it is determined and a confirmation of the Expiration Date. In accordance with the Lease dated ________, this shall serve as a signed statement confirming the actual Commencement Date as ________ and the Expiration Date as ________.


 


	
 /s/ Randy McCullough

	
 

	
 


	
Randy McCullough

	
 

	
Date


	
President & CEO

	
 

	
 


	
Charles & Colvard, Ltd.

	
 

	
 


	
 

	
 

	
 


	
 

	
 

	
 


	
Stephanie Mesnard

	
 

	
Date


	
General Manager

	
 

	
 


	
Southport Business Park

	
 

	
 





 


 



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