LEASE AGREEMENT
THIS LEASE is executed this 2nd day of October, 2003, by and between DUGAN FINANCING LLC, a Delaware limited liability company ("Landlord"), and DESIGN WITHIN REACH, INC., a California corporation ("Tenant").
WITNESSETH:
ARTICLE 1- LEASE OF PREMISES
Section 1.01. Basic Lease Provisions and Definitions.
A. Leased Premises (shown outlined on Exhibit A attached hereto): 2360 Progress Drive, Hebron, Kentucky 41048; Building No. 1 (the "Building"); located in Sky port 275 Business Park (the "Park");
B. Rent able Area: approximately 216,668 square feet;
C. Tenant’s Proportionate Share;
Months 1-9 |
|
0.00 |
% |
Months 10-12 |
|
63.64 |
%** |
Months 13-60 |
|
68.39 |
%; |
D. Minimum Annual Rent*:
Year 1 (months 1-9) |
|
$ |
0.00 |
(9 months) |
Year 1 (months 10-12) |
|
$ |
170,352.00 |
(3 months)** |
Year 2 (months 13-21) |
|
$ |
549,253.35 |
(9 months) |
Year 2 (months 22-24) |
|
$ |
189,584.49 |
(3 months) |
Year 3 (months 25-33) |
|
$ |
568,753.47 |
(9 months) |
Year 3 (months 34-36) |
|
$ |
194,459.52 |
(3 months) |
Year 4 (months 37-45) |
|
$ |
528,128.28 |
(9 months) |
Year 4 (months 46-48) |
|
$ |
182,001.12 |
(3 months) |
Year 5 (months 49-57) |
|
$ |
546,003.36 |
(9 months) |
Year 5 (months 58-60) |
|
$ |
187,417.83 |
(3 months); |
E. Monthly Rental Installments*:
Months 1-9 |
|
$ |
0.00 per month |
|
Months 10-12 |
|
$ |
56,784.00 per month** |
|
Months 13-21 |
|
$ |
61,028.15 per month |
|
Months 22-33 |
|
$ |
63,194.83 per month |
|
Months 34-36 |
|
$ |
64,819.84 per month |
|
Months 37-45 |
|
$ |
58,680.92 per month |
|
Months 46-57 |
|
$ |
60,667.04 per month |
|
Months 58-60 |
|
$ |
62,472.61 per month; |
|
* A schedule of the net Minimum Annual Rent per square foot plus Landlord’s Share of Expenses is attached hereto as Schedule 1.
** Tenant’s Proportionate Share, Minimum Annual Rent and Monthly Rental Installments are calculated on 201,600 square feet of the Leased Premises.
F. Landlord’s Share of Expenses: $0.55 times the rent able area of the Leased Premises which is included in the Minimum Annual Rent;
G. Lease Term: Five (5) years and Zero (0) months;
H. Target Commencement Date: December 1, 2003;
I. Security Deposit: $61,028.15;
J. Guarantor (s): None;
K. Brokers: Duke Realty Services Limited Partnership representing Landlord and Colliers International representing Tenant;
L. Permitted Use: General office, warehousing and distribution of furniture, furnishings and all other merchandise offered in Tenant’s catalogue for sale and related purposes;
M. Address for notices:
Landlord:
Dugan Financing LLC
c/o Duke Realty Services Limited Partnership
Attn: Senior Property Manager
4555 Lake Forest Drive, Suite 400
Cincinnati, OH 45242
With a copy to:
Dugan Financing LLC
c/o Duke Realty Services Limited Partnership
Attn: Nick Anthony
600 East 96th Street, Suite 100
Indianapolis, IN 46240
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