EXHIBIT 99.1
SIXTH AMENDMENT TO LEASE
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DATED: June 24, 2003
LANDLORD: ELEVEN INKSTER, L.L.C.
TENANT: TECHTEAM GLOBAL, INC., FORMERLY KNOWN AS
NATIONAL TECHTEAM, INC., A DELAWARE CORPORATION
PREMISES: SPACE IN THE BUILDINGS AT CUMBERLAND TECH CENTER,
11 MILE AND INKSTER ROADS, SOUTHFIELD, MICHIGAN
LEASE: DATED SEPTEMBER 27, 1993, AS AMENDED
BY FIRST AMENDMENT TO LEASE DATED DECEMBER 7, 1993,
SECOND AMENDMENT TO LEASE DATED JANUARY 23, 1995,
THIRD AMENDMENT TO LEASE DATED MARCH 29, 1996,
FOURTH AMENDMENT TO LEASE DATED MARCH 13, 2000, AND
FIFTH AMENDMENT TO LEASE DATED OCTOBER 13, 2000
THE CIRCUMSTANCES OF THIS AMENDMENT ARE:
A. Landlord and Tenant are parties to the above referenced Lease for
the above described Premises which presently includes 57,403 square feet of
Rentable Floor Area located in the Cumberland Tech Center (the "Center") at the
southeast corner of Eleven Mile and Inkster Roads in the City of Southfield,
Oakland County, Michigan. Landlord is the successor to Eleven Inkster
Associates.
B. Pursuant to a Sublease dated August 31, 2000, Tenant previously
subleased from Dura Operating Corp., a Delaware corporation, 43,254 square feet
of Rentable Floor Area located in Building B at the Center (the "Subleased
Premises") commencing September 1, 2000, through and including July 31, 2003
(the "Sublease Term").
C. Under the Fifth Amendment to Lease, the Subleased Premises will be
deemed a part of the Premises under the Lease commencing on August 1, 2003,
following expiration of the Sublease Term.
D. Under the Fourth Amendment to Lease, Basic Monthly Rent became
payable on a "net" basis effective January 1, 2001, and the Tax Base Amount and
Expense Base Amount each were reduced to zero for use in determining Additional
Rent for Real Estate Taxes and Operating Expense for the Center.
E. Tenant has now requested to reduce the Leased Premises by vacating
Building D consisting of 30,817 square feet of Rentable Floor Area effective
July 1, 2003.
F. Landlord and Tenant therefore desire to further amend the Lease to
(i) reduce the Leased Premises by the deletion of Building D effective July 1,
2003, (ii) extend the term of the Lease, and (iii) provide to Tenant a right of
first offer to lease certain space in Building A, all pursuant to the terms of
this Amendment.
THE PARTIES THEREFORE AGREE AS FOLLOWS:
1. Not later than July 1, 2003, Tenant will vacate Building D and
deliver possession of the entire 30,817 square feet of Rentable Floor Area in
Building D to Landlord in broom clean condition and in accordance with the
requirements and provisions of the Lease with respect to termination.
Notwithstanding the foregoing, Tenant's existing communications switch in
Building D may remain in its present location until
not later than October 1, 2003. The removal of the communications switch from
Building D will be coordinated with Landlord and will be accomplished by Tenant
not later than October 1, 2003.
2. The term of the Lease is extended to expire on June 30, 2011.
3. Effective on July 1, 2003, Basic Monthly Rent and Additional Rent,
based on Tenant's Portion of the Real Estate Taxes and Operating Expense for the
Center, will be payable as follows:
TENANT'S PORTION
PREMISES (PERCENTAGE OF BASIC RENTAL RATE
DATES (RENTABLE RENTABLE MONTHLY PER SQUARE FOOT
----- SQUARE FEET) FLOOR AREA) RENT PER YEAR
------------ ----------- ------ --------
July 1, 2003-- July 31, 2003 26,586 24.73% $28,801.50 $13.00/square foot
August 1, 2003-- December 31, 2003 69,840 64.97% $75,660.00 $13.00/square foot
January 1, 2004-- December 31, 2004 69,840 64.97% $78,570.00 $13.50/square foot
January 1, 2005-- December 31, 2005 69,840 64.97% $81,480.00 $14.00/square foot
January 1, 2006-- December 31, 2006 69,840 64.97% $83,517.00 $14.35/square foot
January 1, 2007-- December 31, 2007 69,840 64.97% $85,554.00 $14.70/square foot
January 1, 2008-- December 31, 2008 69,840 64.97% $87,591.00 $15.05/square foot
January 1, 2009-- December 31, 2009 69,840 64.97% $89,628.00 $15.40/square foot
January 1, 2010-- December 31, 2010 69,840 64.97% $91,665.00 $15.75/square foot
January 1, 2011-- June 30, 2011 69,840 64.97% $93,702.00 $16.10/square foot
4. Paragraph 6 of the Fourth Amendment to Lease is deemed null, void
and of no further force or effect.
5. During the period commencing January 1, 2004 and ending June 30,
2006, and provided that this Lease is in effect and Tenant is not in default,
Tenant will have a right of first offer to lease Additional Space in the Center
consisting of the approximately 3,782 square feet of Rentable Floor Area at the
northwest corner of Building A. In the event that Landlord proposes to lease the
Additional Space to others, Landlord will provide written notice to Tenant
specifying the terms upon which Landlord proposes to lease the space, including
the rental rate, term, availability date, and any allowance for improvements.
Tenant may exercise its right to lease the Additional Space by written notice to
Landlord received by Landlord not later than 10 days following Landlord's notice
to Tenant. If Tenant exercises its right by notice to Landlord, the Additional
Space will be included in the leased Premises effective on the availability date
in accordance with all of the terms of the notice from Landlord.
6. As amended hereby, all other terms, conditions and provisions of
the Lease as previously amended shall remain in full force and effect
ELEVEN INKSTER, L.L.C. TECHTEAM GLOBAL, INC.
By: Levine Interests Limited Partnership II,
a Michigan limited partnership, Manager
By: /s/ Seymour J. Levine By: /s/ William F. Coyro, Jr.
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Its: General Partner Its: President and CEO
"LANDLORD" "TENANT"