Document:

Exhibit 10.1

 

FOURTH
AMENDMENT TO OFFICE LEASE

 

THIS FOURTH AMENDMENT TO OFFICE LEASE
(hereinafter referred to as this “Fourth Amendment”) is effective as of January 1,
2005 (the “Effective Date”), by and between CALIFORNIA STATE TEACHERS
RETIREMENT SYSTEM, a public entity created pursuant to the laws of the State of
California (hereinafter referred to as “Landlord”), and EARTHLINK, INC., a
Delaware corporation (hereinafter referred to as “Tenant”).

 

W I T N E S S E T H:

 

WHEREAS, Kingston Atlanta Partners, L.P., a
Delaware limited partnership (“Kingston”), and Mindspring Enterprises, Inc., a
Delaware corporation (as the predecessor-in-interest to Tenant) entered into
that certain Office Lease, dated November 16, 1999 (the “Original Lease”);
as amended by that certain First Amendment of Office Lease Agreement (the “First
Amendment”), dated May 15, 2000; as further amended by that certain Second
Amendment of Office Lease Agreement (the “Second Amendment”), dated December 21,
2000 (the “Second Amendment”), as further amended by that certain Third
Amendment of Office Lease Agreement (“Third Amendment”), dated on or about September 25,
2001, and that certain letter agreement dated December 11, 2002 (“Agreement”),
for those certain premises (the “Premises”) located at 1375 Peachtree Street,
Atlanta, Georgia (the “Building”) currently known as Pershing Point Plaza.  The Original Lease, as amended by the First
Amendment, the Second Amendment, the Third Amendment and the Agreement, is
hereinafter referred to collectively as the “Lease.”

 

WHEREAS, Landlord is the
successor-in-interest to Kingston and has acquired all of Kingston’s right,
title and interest in, to and under the Lease; and

 

WHEREAS, Landlord and Tenant desire to
further amend the Lease to extend the term of Lease, and to provide for such
other related matters as are hereinafter set forth;

 

NOW, THEREFORE, for and in consideration of
the Premises and the mutual covenants contained herein and other good and
valuable consideration, the receipt, adequacy and sufficiency of which are
hereby acknowledged and confessed, Landlord and Tenant hereby covenant and
agree as follows:

 

1.                                       Defined Terms.  Capitalized terms used herein, unless
otherwise defined herein, shall have the meanings given such terms in the
Lease.

 

2.                                       The Premises.  Landlord and Tenant hereby agree that
Landlord currently leases to Tenant and Tenant currently leases from Landlord
that certain space in the Building containing 327,810 rentable square feet, as
more particularly described on Exhibit A to the Third Amendment (the “Premises”).

 

 

3.                                       Extension of
Lease Term.  Landlord and Tenant
acknowledges that the current Expiration Date under the Lease is October 1,
2007.  As of the Effective Date, Landlord
and Tenant hereby extend the Lease Term for an additional one hundred seventeen
(117) month period (the “Extension Term”), commencing on the Effective Date,
and terminating on September 30, 2014 (“New Expiration Date”).   Tenant shall continue to lease the Premises
during the Extension Term on the same terms and conditions as the original
Lease Term, except as otherwise set forth herein to the contrary.

 

4.                                       Base Rental.  Notwithstanding anything to the contrary in
the Lease, during the Extension Term, Tenant shall pay Monthly Base Rental for
the Premises in accordance with the Base Rental Schedule attached hereto
and made part hereof as Exhibit A. 
Accordingly, the Base Rental Schedules set forth in the Lease are of no
further force and effect.

 

5.                                       Additional
Rental - Operating Expenses and Property Taxes.  Tenant shall continue to pay all additional
rental under the Lease during the Extension Term.  Landlord and Tenant hereby acknowledge and
confirm that Tenant’s Percentage Share of Operating Expenses and Property Taxes
shall be 83.83% and Tenant’s Percentage Share of actual Building utility
expenses shall be 87.04% during the Extension Term, so long as the Premises
continues to consist of 327,810 rentable square feet.  Landlord and Tenant further acknowledge and confirm
that for purposes hereof, the Building consists of 410,357 rentable square feet
(but shall be deemed to contain 411,634 rentable square feet for purposes of
Tenant’s Percentage Share).

 

6.                                       Tenant
Improvement Allowance.  In
consideration of Tenant entering into this Fourth Amendment, Landlord agrees to
provide to Tenant a tenant improvement allowance equal to Seven Million Three
Hundred Seventy-Five Thousand Seven Hundred Twenty Five and 00/100 Dollars
($7,375,725.00), which amount is based on Twenty-Two and 50/100 Dollars
($22.50) per rentable square foot of the Premises (the “Renewal Allowance”).  The Renewal Allowance may be used in Tenant’s
sole discretion, including to offset and abate Tenant’s obligation to pay Base
Rental during the Extension Term. 
Notwithstanding the foregoing, the parties agree that at least Two
Million Four Hundred Fifty Eight Thousand Five Hundred Seventy Five and 00/100
Dollars ($2,458,575.00), based on Seven and 50/100 Dollars ($7.50) per rentable
square foot of the Premises, shall be used, on or before the New Expiration
Date, for costs relating to the construction of improvements to the Premises
and the relocation, repair or replacement of any and all furniture, fixtures
and equipment located in the Premises (collectively, the “Improvements”). At
Tenant’s election on or before January 15, 2005, and further provided that
Tenant is not in Default under the Lease, Landlord shall credit the Renewal
Allowance against Tenant’s future obligations to pay Monthly Base Rental,
additional rental, or any other charges due and owing by Tenant under the
Lease, provided, however, if Tenant fails to provide Landlord notice of such
election on or before January 15, 2005, Landlord shall pay the Renewal
Allowance to Tenant via check or wire transfer on or before January 28,
2005.  At any time after such payment of
the Renewal Allowance, but no later than the New Expiration Date, Tenant shall
furnish to Landlord evidence reasonably satisfactory to Landlord, including
such invoices, certifications, lien releases, and other documentation as
Landlord may reasonably request, to be assured, to Landlord’s reasonable
satisfaction, that the Improvements have been completed in compliance with the
terms of this Section and the terms of the Lease. In addition to the
foregoing, Landlord acknowledges that Tenant is still entitled to use of that
certain tenant improvement allowance equal to Eighteen and No/100 Dollars ($18.00)
per rentable square foot

 

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for that portion of the Premises known as Floor 5 North comprising
26,830 rentable square feet (“Five North”). 
The Five North allowance shall be used by Tenant in accordance with the
terms of the Lease prior to the Expiration Date, and solely for costs related
to the construction of improvements to Five North and the installation of
furniture, fixtures and equipment to be located in Five North.  Tenant shall have no further right to the
Five North allowance after September 30, 2007.  The rights contained in this Section shall
be personal to the original Tenant signing this Fourth Amendment and shall not
be transferable.

 

7.                                       Right of
First Refusal.

 

(a)                                  Provided that the
Lease is in full force and effect and there exist no Defaults by Tenant under
the Lease , Tenant shall have a right of first refusal (the “Right of First
Refusal”) to lease all of the office space on the third (3rd) floor
and fourth (4th) floor of the North Tower (hereinafter the “First
Refusal Space”), as demarcated on Exhibit B hereto, in accordance with
the terms and conditions contained herein. 
In the event Landlord obtains a bona fide written offer from a
prospective tenant to lease all or any portion of the First Refusal Space on or
before December 31, 2006, and Landlord desires to accept such offer, then
Landlord shall submit to Tenant in writing all of the material terms and
conditions of such proposed offer to lease (hereinafter referred to as the “Offer”)
and Tenant shall have the right and option to lease that portion of the First
Refusal Space covered by the Offer upon the same monetary terms and conditions
as contained in the Lease as modified by this Fourth Amendment, including a
tenant improvement allowance in the amount of Twenty-Two and 50/100 Dollars
($22.50) per square foot for such portion of the First Refusal Space, such
allowance to be reduced on a prorated basis based on the remaining number of
months in the Extension Term.  In the
event Landlord wishes to accept an Offer received after December 31, 2006,
Tenant shall have the right and option to lease that portion of the First
Refusal Space covered by the Offer upon the same monetary terms and conditions
contained in that Offer, including any offer of free rent and tenant
improvement allowances, as embodied in the copy of such Offer, but otherwise
upon the same terms and conditions as the Lease, as hereby amended.  If Tenant shall elect to exercise its right
to lease that portion of the First Refusal Space covered by the Offer, written
notice of such election shall be given to Landlord within ten (10) days from
the time that Tenant first received a copy of the Offer from Landlord
(hereinafter referred to as the “Offer Period”).  If Tenant fails to timely give an unqualified
acceptance of the Offer within the Offer Period, Landlord may proceed with the
lease of the First Refusal Space. Tenant shall commence payment of rent for the
First Refusal Space and the term of the First Refusal Space shall commence upon
the date set forth in the Offer.  The
Lease Term for the First Refusal Space shall be coterminous with Tenant’s lease
of the initial Premises, provided, however, that in no event shall the Lease
Term for the First Refusal Space be less than eighty percent (80%) of the term
for the First Refusal Space as stated in the Offer, and provided further that
any tenant improvement allowance, free rent and/or any other economic incentive
embodied in the Offer shall be reduced on a prorated basis based on the number
of months in such shortened Lease Term for the First Refusal Space.

 

(b)                                 Upon the exercise of
its right to lease the First Refusal Space covered by the Offer, Landlord and
Tenant shall enter into a written agreement modifying and supplementing the
Lease and specifying that the First Refusal Space is a part of the Premises
under the Lease and containing other appropriate terms and provisions relating
to the addition of such area to the Lease, including, without limitation, increasing,
adjusting or augmenting

 

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Monthly Base Rental as a result of the addition of such space.  Notwithstanding anything to the contrary
contained herein, Tenant must elect to exercise its Right of First Refusal, if
at all, with respect to all of the space offered by Landlord to Tenant at any
particular time, and Tenant may not elect to lease only a portion thereof.

 

(c)                                  If a right to lease
pursuant to this Section shall not be exercised within the Offer Period or
shall be waived (no notice is deemed to be a waiver of such right), then
Landlord shall have the right to offer such space to the prospective tenant,
and if such transaction is consummated, Tenant’s rights under this Section shall
automatically terminate and be of no further force or effect as to such portion
of the First Refusal Space.  If a right
to lease pursuant to this Section shall not be exercised within the Offer
Period or shall be waived (no notice is deemed to be a waiver of such right),
and Landlord fails to lease the space covered by the Offer within nine (9)
months after Landlord’s submission of a copy of the Offer to Tenant, then this Section shall
be applicable to any subsequent offer to lease such portion of the First
Refusal Space.

 

(d)                                 Tenant shall take the
First Refusal Space in its “as-is” condition, and Tenant shall be entitled to
construct improvements in the First Refusal Space in accordance with the
provisions of Article 4 of the Lease. In the event the First Refusal
Space is determined to contain any hazardous materials in a manner or quantity
prohibited by federal or State of Georgia laws or regulations including any
hazardous materials which were not in violation of such laws or regulations at
the time they were placed in the First Refusal Space, and the federal
government or the State of Georgia requires the removal or encapsulation of
such hazardous materials, Landlord agrees that it shall, at its sole cost and
expense, cause such remedial measures to be taken as are necessary either to
remove or (if permitted by applicable law) encapsulate such hazardous
materials.

 

(e)                                  Notwithstanding
anything to the contrary in this Section 7, the Right of First Refusal
herein granted shall be void if less than thirty-six (36) months remain in the
Extension Term.

 

(f)                                    The rights
contained in this Section may only be exercised by the Original Tenant or
any Affiliate thereof (and not any other assignee, sublessee or other
transferee of the Original Tenant’s interest in the Lease) if Tenant or any
Affiliate occupies at least fifty percent (50%) of the Premises as of the date
of the First Refusal Notice.  Tenant
shall not have the right to lease First Refusal Space as provided in this Section if,
as of the date of the First Refusal Notice, or, at Landlord’s option, as of the
scheduled date of delivery of such First Refusal Space to Tenant, Tenant is in
Default under the Lease.

 

8.                                       Right of
First Offer.

 

(a)                                  Landlord hereby
grants to Tenant, on the terms and conditions hereof, a right of first offer on
all of the space in the Building that is not, from time to time, included in
the Premises (the “Remaining Space”). 
This provision shall apply to every availability of the Remaining Space
occurring during the Extension Term (as such may be extended).  Notwithstanding the foregoing, such first
offer right of Tenant shall commence only following the expiration or earlier
termination of any existing lease pertaining to the Remaining Space,

 

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including any renewal of such existing lease regardless of whether any
such renewal is consummated pursuant to a lease amendment or a new lease.   Notwithstanding anything to the contrary
contained herein, Tenant must elect to exercise its right of first offer, if at
all, with respect to at least one full floor of the space offered by Landlord
to Tenant at any particular time (a full floor deemed to mean one floor of
either the North Tower or South Tower of the Building and not one full floor of
both Towers).

 

(b)                                 Should any of the
Remaining Space become available for lease during the Extension Term (as such
may be extended) (such available space, the “Available Space”), then
Landlord, before endeavoring to lease any such Available Space to any other
party, shall deliver written notice (the “Availability Notice”) to
Tenant notifying Tenant of the availability of the Available Space, the
anticipated date of such availability (the “Anticipated Delivery Date”) and, if
such Available Space becomes available after December 31, 2006, Landlord’s
good faith determination of the Market Base Rental Rate (as defined below).  Landlord shall deliver such Availability
Notice promptly upon such Available Space becoming available for lease.  Landlord shall not lease the available space
to any other person or entity until the process set forth in this provision has
been fully complied with.

 

Tenant shall have the right, but not the obligation, for a period of
fifteen (15) business days following receipt of the Availability Notice from
Landlord, to elect to include such then offered Available Space within the
Premises (if so elected, the “Additional Space”). For the lease of any
Additional Space that becomes available on or before December 31, 2006, Tenant’s
lease of the Additional Space shall be at the same per square foot rate for
Base Rental as is then applicable to the Premises under this Lease and upon the
same other terms and conditions as in this Lease and for the lease of any
Additional Space that becomes available after December 31, 2006, Tenant’s
lease of the Available Space shall be at the Market Base Rental Rate, except
that, in either case: (i) Tenant’s Percentage Share shall be re-calculated by
adding the square footage of any Additional Space taken by Tenant pursuant
hereto to the numerator used to calculate Tenant’s Percentage Share; and (ii)
the Additional Space shall be delivered to Tenant in accordance with the provisions
of Section 7(d) of this Fourth Amendment. 
If Tenant desires to lease any (or all) of the Available Space, then
Tenant shall deliver to Landlord written notice of its desire to exercise its
first offer right (identifying the Available Space that it wishes to take)
within said fifteen (15) business day period (the “Tenant’s Acceptance”).  In the event Tenant disagrees with Landlord’s
determination of the Market Base Rental Rate, Landlord and Tenant shall, for a
period of ten (10) days after Tenant’s Acceptance, negotiate in good faith to
reach agreement as to such Market Base Rental Rate.  In the event that, notwithstanding the
cooperative efforts of such parties, Landlord and Tenant are unable to agree
upon the Market Base Rental Rate within such ten (10) day period, then Landlord
and Tenant shall mutually select an arbitrator (the “Arbitrator”), who shall be
a real estate broker who (i) is licensed in the State of Georgia, and has a
SIOR or CCIM designation, (ii) has been actively and continuously engaged in
the leasing of office space in the submarket in which the Premises are located
during the preceding ten-year period, and (iii) has represented neither Landlord nor Tenant during the
preceding five-year period.  If the
parties cannot agree on the Arbitrator within five (5) calendar days following
the date of Landlord’s original notice to Tenant stating the Market Base Rental
Rate, then each party shall select a broker who meets the criteria set forth
above by written notice to the other given within thirty-five (35) days
following the date of the Availability Notice, and within five (5) days after
receipt of such selection from both parties, such brokers shall appoint a third
broker; such

 

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third broker shall be the Arbitrator. 
If the two brokers cannot agree on the appointment of the Arbitrator
within said five (5) day period, then either party shall have the right to
apply to the presiding judge of the applicable court for the State of Georgia
for the selection of the Arbitrator.  If
either Landlord or Tenant does not appoint a broker within the thirty-five (35)
day period set forth above, then the single broker selected shall be the
Arbitrator.

 

Within five (5) days after the selection of
the Arbitrator, each party shall submit to the Arbitrator its determination of
the Market Base Rental Rate, which shall include a reasonable amount of
analysis to support such party’s determination of the Market Base Rental
Rate.  The Arbitrator shall be advised
that the determination of the Market Base Rental Rate at issue shall be
governed by the definitions of same set forth below.  Within ten (10) days after its receipt of
each party’s determination of the Market Base Rental Rate, the Arbitrator will
select the submission nearest to its determination of the Market Base Rental
Rate, and such determination shall be binding on the parties.  The parties agree to evenly split the costs
of the Arbitrator.

 

Whenever used in this Lease, the term “Market
Base Rental Rate” shall mean the rental rate per square foot that a willing
landlord would offer to a willing tenant, and that such tenant would accept, in
an arms length transaction for a lease in a similar office building located in
the Midtown submarket of Atlanta, Georgia for space comparable to the space for
which the Market Base Rental Rate is being determined (taking into
consideration use, location and/or floor level within the applicable building,
the definition of rentable floor area, leasehold improvements provided by the
landlord, remodeling credits or allowances granted, quality, age and location
of the applicable building, rental concessions [such as abatements or lease
assumptions], expense pass-through provisions, the provision of free or paid
unassigned parking, the time the particular rate under consideration became
effective, relative operating expenses, relative services provided, etc.).

 

(c)                                  If Tenant elects not
to exercise its first offer right or if Tenant does not deliver the Tenant’s
Acceptance to Landlord within the fifteen (15) business day period after the
Availability Notice, then Tenant shall be deemed to have waived its rights
under this provision as to that availability of the Available Space, and
Landlord may offer to lease such space to a third party upon substantially the
same terms and conditions as contained in the Availability Notice, provided,
however, if the net effective rent of such proposed lease to a third party is
less than 85% of the net effective rent of the offer to Tenant as stated in the
Availability Notice, Landlord, by written notice to Tenant, shall offer to
lease such portion of the Available Space to Tenant on the same terms and
conditions as such third party offer and Tenant shall have five (5) days to
accept such offer by written notice provided to Landlord.  If Tenant fails to provide such notice to
Landlord within five (5) days of Tenant’s receipt of such third party offer
notice from Landlord, Landlord may lease the Available Space upon such terms
and conditions contained in the third party offer.  Tenant’s rights under this provision with
regard to such Available Space shall be reinstated as to such space, and shall
apply to any subsequent availability of such space, once such space has been
re-leased by Landlord to a third party (whether for a term or on a month to
month basis) or if the such space has not been re-leased by Landlord within a
period of three hundred sixty five (365 days) after the expiration of such
fifteen (15) day period.  This
reinstatement of rights applies to the Available Space in whole, or in parts,
provided in no event may Tenant exercise the right herein for less than one
full floor of either the North Tower or South Tower of the Building.

 

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(d)                                 If Tenant delivers
Tenant’s Acceptance to Landlord within the applicable time period, then, within
thirty (30) days of Tenant’s Acceptance, Landlord shall prepare, and Tenant and
Landlord shall execute and deliver to one another, an amendment to this Lease
reasonably satisfactory to both parties, increasing the size of the Premises by
the Additional Space and reflecting any other applicable terms, to be effective
upon execution by both parties, provided that the effectiveness of any exercise
of rights hereunder shall not be impaired by the failure of the parties to
execute such an amendment.

 

(e)                                  Notwithstanding any
other term herein to the contrary, Tenant shall not pay any Monthly Base Rental
for the Additional Space until Landlord has delivered exclusive possession of
such Additional Space to Tenant.  If
exclusive possession of such Additional Space is not delivered within sixty (60)
days of the Anticipated Delivery Date, Tenant may rescind its exercise of
expansion rights (or agreement to the expansion, as the case may be) at any
time thereafter prior to taking possession of such Additional Space.

 

(f)                                    The Lease Term for
the Available Space shall be coterminous with Tenant’s lease of the initial
Premises, provided, however, that in no event shall the Lease Term for the
Available Space be less than eighty percent (80%) of the term for the Available
Space as stated in the Offer, and provided further that any tenant improvement
allowance, free rent and/or any other economic incentive embodied in the Offer
shall be reduced on a prorated basis based on the number of months in such
shortened Lease Term for the Available Space

 

(g)                                 Notwithstanding
anything to the contrary in this Section 8, the Right of First Offer
herein granted shall be void if less than thirty-six (36) months remain in the
Extension Term.

 

(h)                                 The rights contained
in this Section may only be exercised by the Original Tenant or any
Affiliate thereof (and not any other assignee, sublessee or other transferee of
the Original Tenant’s interest in the Lease) if Tenant or any Affiliate
occupies at least fifty percent (50%) of the Premises as of the date of any
Offer of Available Space.  Tenant shall
not have the right to lease the Available Space as provided in this Section if,
as of the date of Tenant’s receipt of such Offer, or, at Landlord’s option, as
of the scheduled date of delivery of such Available Space to Tenant, Tenant is
in Default under the Lease.

 

(i)                                     Notwithstanding
anything herein to the contrary, the Remaining Space is exclusive of any space
designated as retail space in the Building, 
Furthermore, Landlord may exclude from such Remaining Space premises as
customary for use as a management office.

 

9.                                       Contraction
Option.

 

(a)                                  Upon written notice
to Landlord provided by Tenant on or before June 30, 2009 (the “Contraction
Option Date”), Tenant shall have the option (the “Contraction Option”) to
reduce the size of the Premises by returning to Landlord up to one full floor
of the North Tower or the South Tower of the Premises (the “Contraction Space”),
constituting a maximum of 28,098 rentable square feet.  If Tenant exercises this option, the
Contraction Space shall be returned to Landlord effective as of December 31,
2009 (the “Contraction Effective Date”) in the

 

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condition required by Section 2.3 of the Lease.  Upon Tenant’s exercise of this option, this
Lease shall terminate with respect to the Contraction Space as of the
Contraction Effective Date.

 

(b)                                 Landlord and Tenant
shall enter into a written amendment to this Lease prior to the Contraction
Effective Date, which amendment shall include the following:

 

(i)                                     The adjusted
number of square feet of rentable area comprising the Premises, consisting of
the number of square feet of rentable area contained in the Premises
immediately prior to the Effective Date, reduced by the number of square feet
of rentable area comprising the Contraction Space (the “Reduced Premises”).

 

(ii)                                  The adjusted annual
Base Rental for the remainder of the Extension Term, equal to the number of
square feet of rentable area comprising the Reduced Premises times the then
applicable Base Rental per square foot of rentable area, with a similar
adjustment for monthly installments of Base Rent.

 

(iii)                               The adjusted percentage
of Tenant’s Percentage Share, consisting of Tenant’s Percentage Share, as set
forth in Section 4 hereof, reduced by a percentage equal to the number of
square feet of rentable area comprising the Contraction Space divided by the
total number of square feet of rentable area in the Building.  Tenant’s Percentage Share of actual Building
utility expenses shall be similarly reduced.

 

(iv)                              The adjusted number of
parking spaces and parking permits, consisting of the number of parking spaces
designated for use by Tenant, as set forth in Section 5 of the Second
Amendment of Office Lease, reduced by a number equal to 2 parking spaces for
each 1,000 square feet of rentable area comprising the Contraction Space.

 

(v)                                 If the Contraction
Space is a partial floor, the obligation of Tenant, at its sole cost and
expense, to build a demising wall between the remaining Premises and the
Contraction Space, and to perform all electrical and mechanical work in
connection therewith.

 

(c)                                  On or before the
Contraction Effective Date, Tenant shall pay to Landlord a contraction fee (the
“Contraction Fee”) equal to the total unamortized costs of Tenant Improvements
and real estate commissions paid to Tenant’s broker in connection with this
Fourth Amendment which amount equals $17.81 times the number of square feet of
rentable area comprising the Contraction Space.

 

(d)                                 Simultaneously with
(i) the execution and delivery of the amendment described above by Tenant and
Landlord, and (ii) vacancy of the Contraction Space, Tenant and Landlord shall
enter into a cancellation and release agreement, in the form mutually agreed
upon, covering such Contraction Space.

 

10.                                 Modification,
Amendment and/or Deletion of Certain Lease Provisions.  As of the Effective Date, the following
provisions of the Lease are hereby modified, amended and/or deleted by Landlord
and Tenant, as follows:

 

(a)                                  Section 2.5(m).  Section 2.5(m) of the Lease shall be
deleted in its entirety and the following shall be inserted in lieu thereof:

 

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“Notwithstanding
anything contained in the Lease to the contrary, provided Tenant is not in
default hereunder beyond any applicable notice or cure period, Tenant shall
have the right, to assign this Lease or to sublet all or any portion of the
Premises to an Affiliate (as hereinafter defined) without Landlord’s consent;
provided, however, no such assignment or subletting shall relieve Tenant of its
obligations to Landlord hereunder nor release Tenant from its liability under
the Lease.  The term “Affiliate” shall
mean (i) any parent company or any subsidiary which controls or is controlled
by Tenant or is under common control with any subsidiary which controls or is
controlled by Tenant or is under common control with Tenant, or any company into
which or with which Tenant is merged or consolidated, provided that by
operation of law or by effective provisions contained in the instruments of
merger or consolidation the liabilities of the companies participating in such
merger or consolidation are assumed by the company surviving such merger or
created by such consolidation, or (ii) any entity acquiring all or
substantially all of the stock or assets of Tenant.  The term “control” shall mean ownership of
not less than fifty-one percent of the voting rights attributable to the shares
of the controlled company.  Tenant shall
promptly notify Landlord of any such sublease or assignment transaction.  Contemporaneously with any such notice to
Landlord, Tenant shall deliver a counterpart executed copy of such assignment
agreement or sublease, as the case may be. 
Any such assignment or sublease agreement shall provide, inter  alia,
that it is subject to all of the terms and provisions of this Lease.”

 

(b)                                 Section 3.3.

 

(i)  Section 3.3(d)
shall be amended by adding the following:

 

“Notwithstanding anything herein to the
contrary, should fees incurred for any contract service performed by Landlord
or any agent of Landlord increase by more than 5% in any calendar year during
the Lease Term, and provided that fees for such contract service equal or
exceed an annual value of $100,000.00, Landlord shall, at Tenant’s option,
competitively bid such contract service. 
In no event shall any management fees charged to Tenant exceed two
percent (2%) of annual gross receipts for the Building during Landlord’s
ownership of the Building, or two and one-half (2 1⁄2%) of annual gross receipts
at any time after the California State Teachers Retirement System (“CALSTRS”) or
any Affiliate (as such term is defined for Tenant in Section 10 of this
Fourth Amendment) ceases to own the Building.”

 

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The last two sentences of Section 3.3(e) of the Lease shall be
deleted and the following shall be inserted in lieu thereof:

 

“If Tenant’s audit
reveals that Tenant has overpaid Landlord for its share of Operating Expenses,
such overpayment shall be refunded by Landlord to Tenant within thirty (30)
days after Landlord’s receipt of such audit results unless within such thirty
(30) day period Landlord notifies Tenant that it disputes the audit results and
provides Tenant with documentation setting forth in reasonable detail the
reasons for disputing said audit results. 
The parties shall negotiate in good faith to resolve any such dispute
and, if such dispute is not resolved, within forty-five (45) days after
Landlord’s receipt of Tenant’s audit results, then such matter will be resolved
through arbitration in accordance with the provisions of Exhibit “F” of the
Lease.  If such final audit results (as
agreed to by the parties or determined through arbitration) reveal that the
amount of Operating Expenses billed to Tenant is more than five percent (5%) in
excess of Tenant’s share of actual Operating Expenses, then Landlord shall pay
the reasonable costs and expenses incurred by Tenant in connection with such
audit.  Furthermore, if such final audit
results disclose a discrepancy of greater than five percent (5%) in any
category of Operating Expenses for the year under audit, then Tenant shall have
the right to review Landlord’s records of Operating Expenses for such category
for the four (4) calendar years immediately prior to the calendar year under
audit.”

 

(c)                                  Section 4.6.

 

(i)                                     Section 4.6(a)
shall be amended by deleting the phrase “within ninety (90) days of such damage”
and substituting in lieu thereof the phrase “within one hundred eighty (180)
days of such damage.”

 

(ii)                                  Section 4.6(b)
shall be amended by deleting the phrase “within one hundred fifty (150) days
after the date of such damage” and substituting in lieu thereof the phrase “within
two hundred ten (210) days after the date of such damage”.

 

(iii)                               Section 4.6(b) is
further amended by deleting the phrase “the one hundred fifty (150) day period
for restoration” and substituting in lieu thereof the phrase “the two hundred
ten (210) day period for restoration”.

 

(d)                                 Section 7.1(c).  Section 7.1(c) shall be deleted and the
following shall be inserted in lieu thereof:

 

“(c)                            Landlord
shall maintain in effect during the Term: 
(a) fire and extended coverage insurance; (b) liability insurance
covering bodily injury and property damage; and (c) such other insurance as

 

10

 

Landlord
reasonably determines from time to time. 
The insurance coverages in this Section shall be in commercially
reasonable amounts determined by Landlord from time to time consistent with the
insurance requirements of other prudent landlords of commercial office
properties in the midtown Atlanta area. 
Landlord at its option may obtain any of the required insurance directly
or through umbrella policies covering the Building and other assets owned by
Landlord, so long as such umbrella policy(ies) expressly affords the coverage
required of Landlord under this Lease. 
Notwithstanding the foregoing, Landlord shall be entitled to self-insure
pursuant to a bona fide self insurance program as to all or any portion of the
risk of loss that would otherwise be insured by the aforesaid insurance
coverage.  For purposes of Section 7.2
of this Lease, Landlord’s waiver of subrogation and release of Tenant for
liabilities covered by insurance shall extend to liabilities otherwise required
under this Lease to be insured against, regardless of whether Landlord elects
to self insure.”

 

(e)                                  Article VII of
the Lease shall be amended by adding the following as Section 7.6:

 

“7.6                           Landlord Indemnity.  Landlord agrees to indemnify, defend, and
hold Tenant harmless from all claims and all costs, including reasonable
attorneys’ fees, expenses and liabilities, to the extent: (a) occurring in the
common areas of the Building, (b) arising or resulting from any negligence or
willful misconduct of Landlord, or Landlord’s agents, employees or contractors,
or (c) arising from any breach of this Lease by Landlord, except to the extent
caused by the negligence or willful misconduct of Tenant or any agents,
employees, contractors or invitees of Tenant. 
The indemnification obligations of Landlord under this Lease shall
survive the expiration or earlier termination of this Lease.”

 

(f)                                    Section 5(e)
of the Second Amendment shall be deleted and the following shall be inserted in
lieu thereof:

 

“(e)                            The monthly parking rate
for the initial three hundred seventy-six (376) spaces provided to Tenant in
the on-site Parking Facility will be Sixty and No/100 Dollars ($60.00) per
space per month until the Expiration Date. 
Commencing on the October 1, 2007, Tenant shall pay Seventy-Five
and No/100 Dollars ($75.00) per space per month, subject to annual adjustments
based on the then prevailing market rate for such parking spaces, provided that
the annual increase shall not exceed one hundred three percent (103%) of the
previous year on a cumulative basis.  The
monthly parking rate for the remaining one hundred twenty-six (126)

 

11

 

parking spaces in the on-site Parking
Facility and for the additional one hundred (100) parking spaces (wherever
located) shall be the prevailing market rate for such on-site or off-site
parking spaces.  As used herein, the
prevailing market rate for such on-site or off-site parking spaces shall be the
average monthly rate then being charged to tenants for parking spaces in
parking decks serving similar buildings located in the Midtown submarket of
Atlanta, Georgia.  In the event Landlord
or the operator of such Parking Facility wishes to increase the parking rate
for such Parking Facility at any time, Landlord shall provide written notice to
Tenant of its reasonable, good faith determination of the prevailing market rate
for parking spaces.  If Tenant disagrees
with such determination of the prevailing market rate for parking spaces,
Tenant shall, within twenty (20) days after receipt of such notice from
Landlord, provide written notice to Landlord of Tenant’s reasonable, good faith
determination of the prevailing market rate for parking spaces.  If the parties cannot agree upon the
prevailing market rate for parking spaces within five (5) days after Tenant’s
written notice to Landlord, then such matter shall be resolved through
arbitration in accordance with the provisions of Exhibit “F” of the Lease.  Tenant shall pay such monthly charges to
Landlord or, if directed by Landlord, to the operator of the applicable Parking
Facility on or before the first day of each calendar month throughout the
Extension Term, and Tenant shall abide and comply with any and all reasonable
regulations promulgated by Landlord or the owner of the applicable Parking
Facility with respect to such parking spaces.”

 

(g)                                 Extension Options.  Special Stipulation 6 of Exhibit E to the
Lease shall be modified by deleting the first sentence of Subsection (b)
and inserting the following in lieu thereof:

 

“Tenant must
exercise the First Extension Option by written notice to Landlord given at
least twelve (12) months but not more than fifteen (15) months before the New Expiration
Date”

 

Further, in order to avoid any ambiguity, Landlord and Tenant hereby
acknowledge and agree that (i) the Extension Options remain in full force and
effect, and (ii) except as specifically set forth herein, the terms of this
Fourth Amendment shall not replace, amend, limit, reduce or otherwise affect
the rights granted pursuant to Special Stipulation 6 of Exhibit E to the Lease.

 

11.                                 Estoppel.  Tenant hereby certifies and acknowledges,
that as of the date hereof (a) Landlord is not in default in any respect under
the Lease, (b) Tenant does not have any defenses to its obligations under the
Lease, and (c) there are no offsets against rent payable under the Lease except
for any reconciliations of Operating Expenses paid by Tenant for calendar year
2004 or earlier.  Tenant acknowledges and
agrees that: (i) the representations herein set forth constitute a material
consideration to Landlord in entering into this Fourth Amendment; (ii) such

 

12

 

representations are being made by Tenant for purposes of inducing
Landlord to enter into this Fourth Amendment; and (iii) Landlord is relying on
such representations in entering into this Fourth Amendment.

 

12.                                 Brokers.  Except with respect to CB Richard Ellis, Inc.
and the Staubach Company, the brokers involved in this Fourth Amendment (“Brokers”),
Tenant hereby represents and warrants to Landlord that Tenant has not entered
into any agreement or taken any other action which might result in any
obligation on the part of Landlord to pay any brokerage commission, finder’s
fee or other compensation with respect to this Fourth Amendment, and Tenant
agrees to indemnify and hold Landlord harmless from and against any losses,
damages, costs or expenses (including without limitation, attorneys’ fees)
incurred by Landlord by reason of any breach or inaccuracy of such
representation or warranty.  Landlord
shall pay any compensation due to the Brokers pursuant to a separate commission
agreement.

 

13.                                 Landlord’s
Limitation of Liability.  It is
expressly understood and agreed that notwithstanding anything in the Lease (as
hereby amended) to the contrary, and notwithstanding any applicable law to the
contrary, the liability of Landlord hereunder (including any successor
landlord) and any recourse by Tenant against Landlord shall be limited solely
and exclusively to the interest of Landlord in and to the Building, and neither
Landlord, nor any of its constituent partners, shall have any personal
liability therefor, and Tenant hereby expressly waives and releases such
personal liability on behalf of itself and all persons claiming by, through or
under Tenant.  Under no circumstances
shall Landlord or Tenant be liable for injury to the business of the other or
for any loss of income or profit therefrom. 
Nothing herein shall be deemed a waiver of Tenant’s rights to recover
from any party other than Landlord such damages as may be available under
applicable law.

 

14.                                 Landlord
Exculpation; CB Richard Ellis Investors, LLC as Signatory. This Fourth
Amendment is being executed by CB Richard Ellis Investors, LLC (“CB Richard
Ellis”) on behalf of Landlord.  No
present or future officer, director, employee, trustee, partner, member,
manager, retirant, beneficiary, internal investment contractor, investment
manager or agent of Landlord shall have any personal liability, directly or
indirectly, and recourse shall not be had against any such officer, director,
employee, trustee, partner, member, manager, retirant, beneficiary, internal
investment contractor, investment manager or agent under or in connection with
the Amendment, as hereby amended, or any other document or instrument
heretofore or hereafter executed in connection with the Lease, as hereby
amended.  Tenant hereby waives and
releases any and all such personal liability and recourse.  The limitations of liability provided in this
Section 13 are in addition to, and not in limitation of, any limitation on
liability applicable to Landlord provided by law or in any other contract,
agreement or instrument.  Tenant further
acknowledges that CB Richard Ellis has entered into this Fourth Amendment as
investment manager to Landlord and Tenant agrees that all persons dealing with
CB Richard Ellis must look solely to Landlord (for which CB Richard Ellis is
acting as investment manager) for the enforcement of any claims arising under
the Lease, as hereby amended (subject to the limitations upon Landlord’s
liability set forth above), as neither CB Richard Ellis nor any of its
affiliated entities (including, but not limited to CB Richard Ellis, Inc. and
CB Richard Ellis Real Estate Services, Inc.) nor any of their respective
officers, directors, agents, managers, trustees, employees, members, investment
managers, partners or shareholders assume any personal,

 

13

 

corporate, partnership, limited liability company, or other liability
for any of the obligations entered into by CB Richard Ellis as investment
manager for Landlord.

 

15.                                 Acknowledgment,
Representation and Warranty Regarding Prohibited Transactions.  Tenant hereby acknowledges that Landlord is a
unit of the California State and Consumer Services Agency established pursuant
to Title I, Division 1, Part 13 of the California Education Code, Sections
22000 et seq., as amended (the “Ed Code”). As a result, Landlord is prohibited
from engaging in certain transactions with a “school district or other
employing agency” or a “member, retirant or beneficiary” (as those terms are
defined in the Ed Code). In addition, Landlord may be subject to certain
restrictions and requirements under the Internal Revenue Code, 26 U.S.C. Section 1
et seq. (the “Code”). Accordingly, Tenant represents and warrants to Landlord
that (a) Tenant is neither a school district or other employing agency nor a
member, retirant or beneficiary; (b) has not made any contribution or
contributions to Landlord; (c) neither a school district or other employing
agency, nor a member, retirant or beneficiary, nor any person who has made any
contribution to Landlord, nor any combination thereof, is related to Tenant by
any relationship described in Section 267(b) of the Code; (d) neither CB
Richard Ellis, its affiliates, related entities, agents, officers, directors or
employees, nor any State Teachers’ trustee, agent, related entity, affiliate,
employee or internal investment contractor (both groups collectively, “Landlord
Affiliates”) has received or will receive, directly or indirectly, any payment,
consideration or other benefit from, nor does any Landlord Affiliate have any
agreement or arrangement with Tenant or any person or entity affiliated with
Tenant relating to the transactions contemplated by the Lease, as amended
hereby; and (e) no Landlord Affiliate has any direct or indirect ownership
interest in Tenant or any person or entity affiliated with Tenant. Landlord
acknowledges that (i) if the members of Tenant are publicly held companies,
Landlord may own shares in such companies, and (ii) such publicly held
companies may employ former teachers who may have made contributions to
Landlord.

 

16.                                 Counterparts.  This Fourth Amendment may be executed in
several counterparts, each of which shall be deemed an original, but all of
which together shall constitute one and the same agreement.

 

17.                                 No Further
Amendments; Ratification.  Paragraphs
1, 2, 7 and 8 of the Special Stipulations attached to the Lease as Exhibit “E”
are hereby deleted and of no force and effect. 
As expressly amended herein, all terms and conditions of the Lease
remain in full force and effect and are hereby ratified and confirmed by
Landlord and Tenant.  In the event of any
conflict between the terms and conditions of this Fourth Amendment and any of
the terms and conditions of the Lease, the terms and conditions of this Fourth
Amendment shall control.

 

IN WITNESS WHEREOF, the parties have executed
this Fourth Amendment on the date and year first above set forth with intent to
be bound hereby.

 

 

	
   

  	
  LANDLORD:

  
	
   

  	
   

  
	
   

  	
  CALIFORNIA STATE TEACHERS

  RETIREMENT SYSTEM, a public entity

  

 

14

 

	
   

  	
  created pursuant to the laws of the State of

  California

  
	
   

  	
   

  
	
   

  	
  By:

  	
  CB Richard Ellis Investors LLC,

  its Investment Manager

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  Authorized Signatory

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   By:

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  Authorized Signatory

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Attest:

  	
   

  	
   

  
	
   

  	
  Title: 

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  TENANT:

  
	
   

  	
   

  
	
   

  	
  EARTHLINK, INC., a Delaware corporation

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
  Title:

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Attest:

  	
   

  	
   

  
	
   

  	
  Title:

  	
   

  	
   

  
									

 

 

[SIGNATURE PAGE TO FOURTH AMENDMENT TO LEASE
AGREEMENT]

 

15EXHIBIT 10.1

 

OFFICEMAX INCORPORATED

NONSTATUTORY STOCK OPTION AGREEMENT

 

This
Nonstatutory Stock Option (the “Option”) is granted December 31, 2004, by
OFFICEMAX INCORPORATED (the “Company”) to                           
(“Optionee”) pursuant to the Director Stock Compensation Plan (the “Plan”),
subject to the following terms and conditions.

 

1.               This
Option is subject to all the terms and conditions of the Plan, and all
capitalized terms not otherwise defined in this Agreement shall have the
meaning given them in the Plan.

 

2.               The
Company hereby grants Optionee a nonstatutory stock option to purchase up to             
shares of Stock at a price of $2.50 per share.

 

3.               This
Option shall expire on the first day following the third anniversary of
Optionee’s retirement, resignation, or termination as a director of the
Company.

 

4.               Except
as provided in Sections 3.7 and 3.11 of the Plan, this Option shall not be
exercisable until July 1, 2005, and thereafter it shall be exercisable in
full.

 

5.               This
Option may be exercised, in full or in part, from time to time by delivery of
notice to the Company or its agent specifying the number of shares of Stock to
be purchased.  There are three ways to
pay the exercise price for this Option:

 

a.               Optionee
may pay cash.

 

b.              If
Optionee owns shares of Company stock, Optionee may use them in lieu of cash or
in combination with cash.

 

c.               If
legally permitted, Optionee may sell a portion or all of the Option shares.  The exercise price of this Option and any
required fees shall be deducted from the proceeds of the sale.

 

6.               This
Option is nontransferable other than as provided in Section 3.9 of the
Plan.

 

	
   

  	
  OFFICEMAX
  INCORPORATED

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By

  	
   

  	
   

  
	
   

  	
   

  	
  Matthew R. Broad

  
	
   

  	
   

  	
  Executive Vice
  President,

  
	
   

  	
   

  	
  General Counsel
  and

  
	
   

  	
   

  	
  Corporate Secretary

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