Exhibit 10.1
SECOND LEASE MODIFICATION AGREEMENT
THIS SECOND LEASE MODIFICATION AGREEMENT (this
“Agreement”) is made and entered into as of the
Effective Date (as defined below), by and between PW COMMERCE
CENTER, LP, a Texas limited partnership
(“Landlord”), and
i2 TECHNOLOGIES US, INC., a Nevada corporation
(“Tenant”).
RECITALS
This Agreement is made with reference to the following facts,
intentions and objectives:
A. Colinas Crossing LP, a Delaware limited partnership
(“Colinas”) and predecessor-in-interest to Landlord,
and i2 Technologies, Inc., a Delaware corporation
(“i2 Delaware”) and predecessor-in-interest to
Tenant, entered into that certain Lease dated as of March 24,
1999, a Memorandum of which was recorded on March 26, 1999 as
Document No. 518639 in Book 99059, Page 05490 in the
Official Records of Dallas County, State of Texas (as amended by
letter agreement dated March 24, 1999 from Colinas and
acknowledged on March 24, 1999 by Tenant, Premises Certificate
dated November 1, 1999, Commencement Certificate (undated),
and First Amendment to Lease dated July 2001, all by and
between Colinas and i2 Delaware, and Amended and Restated
First Amendment to Lease dated February 2003 by and between
Landlord and Tenant (the “Amended First Amendment”) (as
so amended, the “Lease”) for certain premises located
at the address commonly known as 11701 Luna Road, Farmers Branch,
Texas 75234, which premises are more particularly described in the
Lease and defined therein as the “Premises.”
B. The Primary Term of the Lease expires as of
May 31, 2010. Tenant desires to extend the Primary Term of the
Lease through March 31, 2014. Landlord has agreed to such
extension of the Primary Term, subject to and on the terms and
conditions set forth below in this Agreement.
C. In addition, Tenant desires to relinquish the entire
fifth (5 th )
and sixth (6 th ) floors of the Building
comprising approximately 63,448 square feet of space (the
“Relinquished Space”) and Landlord has agreed, subject
to and on the terms and conditions set forth below in this
Agreement.
D. In connection with Tenant’s vacation of the
Relinquished Space and the resulting requirement that Landlord
convert the Building from a single-tenant to a multi-tenant format,
Landlord may complete certain improvements to the Building and must
complete the improvements referenced in Paragraph 3.2 ,
as set forth therein. In addition, Tenant shall complete certain
improvements to the Premises (as modified by this Agreement) and
Landlord has agreed to provide a TI Allowance (as defined in
Paragraph 4.2 of this Agreement) therefor, all subject
to and on the terms and conditions set forth below in this
Agreement.
E. Landlord subleases from Tenant space on the third
floor of the Building out of which Landlord operates a management
office, pursuant to that certain Sublease Agreement between Tenant,
as sublandlord, and Landlord, as subtenant, dated
September 12, 2003 (as amended, the
“Sublease”). Landlord desires to terminate the Sublease
and Tenant has agreed, subject to the terms of this Agreement.
F. Accordingly, Landlord and Tenant desire to modify the
Lease as more particularly set forth below.
NOW, THEREFORE, in consideration of the foregoing, the receipt of
which is acknowledged, and of the mutual agreement of the parties
hereto to the terms and conditions hereinafter contained, Landlord
and Tenant agree as follows:
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1.
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Effective Date; Incorporation; Capitalized
Terms.
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Notwithstanding any provisions to the contrary contained herein,
the provisions of this Agreement shall be effective on that date as
of which both Landlord and Tenant have executed this Agreement as
shown next to the respective signatures below (the “Effective
Date”). The provisions of the Recitals set forth above are
hereby incorporated into the body of this Agreement. Capitalized
terms used in this Agreement and not defined shall be deemed to
have the same meaning ascribed to them in the Lease.
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2.
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Building and Reduced Premises; Management
Office; Common Area.
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2.1. Building Area
. Section 1.01(b) of the Lease is hereby modified
to provide that the Building consists of approximately 181,961
square feet of total Rentable Area.
2.2. Reduced Premises; Reduced Premises
Commencement Date . Tenant shall vacate and surrender the
Relinquished Space to Landlord in the condition required under the
provisions of the Lease (the date as of which Tenant vacates and
surrenders the Relinquished Space to Landlord as provided herein
shall be known as the “Reduced Premises Commencement
Date”). As of the Reduced Premises Commencement Date, the
definition of “Premises” under Section 1.01(c) of
the Lease and for all purposes under the Lease shall be modified to
mean floors one (1) through four (4) of the Building
(other than the New Management Office described in
Paragraph 2.4 of this Agreement and as set forth in
Paragraph 2.6 of this Agreement) comprising
approximately 117,647 square feet of Rentable Area.
2.3. Rent for Relinquished Space
.
2.3.1. In addition to Tenant’s payments of Rent
for the Premises (which shall not be limited or otherwise modified
by the provisions of this Paragraph 2.3 ), during the
period of time commencing on April 1, 2009 and continuing
through June 30, 2009, Tenant shall not be responsible for
payment of Base Rent for the Relinquished Space; provided, however,
that Tenant shall pay Tenant’s Pro Rata Share (calculated
based upon the Rentable Area of the Relinquished Space) of all
Operating Expenses and Taxes calculated without regard to any Base
Year, Base Operating Expense or Tax Stop (such amounts are
estimated to equal, in the aggregate, Thirty-Six Thousand
Sixty-Nine and No/100 Dollars ($36,069.00) per month). Tenant shall
also continue to pay Tenant’s Electricity Charge allocable to
the Relinquished Space.
2.3.2. If Tenant does not vacate and surrender the
Relinquished Space to Landlord as provided in
Paragraph 2.2 and the Reduced Premises Commencement
Date does not occur on or prior to 11:59 p.m. local time on
June 30, 2009, Tenant shall be deemed to have irrevocably
(and without any further action required by any party) elected to
continue to lease the Relinquished Space through
July 31, 2009 on the terms and conditions set forth in
the Lease (as amended by this Agreement) except that, in lieu of
the charges set forth in Paragraph 2.3.1 , Tenant shall
pay as Rent for the Relinquished Space monthly Base Rent at a Base
Rental Rate of Seventeen and No/100 Dollars ($17.00) per year
multiplied by the Rentable Area in the Relinquished Space plus
Operating Expenses, Taxes and Tenant’s Electricity Charge
allocable to the Relinquished Space in the same manner as provided
under the Lease without regard to Paragraph 8 of this
Agreement. Except as provided in this Paragraph 2.3.2 ,
any provisions of the Lease that provide for increased Rent upon
the holdover of the Tenant shall not apply to any holding over of
the Relinquished Space for the month of July 2009.
Additionally, notwithstanding any other term of this Agreement or
the Lease but subject to the provisions of this
Paragraph 2.3.2 , Tenant’s failure to vacate the
Relinquished Space on or prior to July 31, 2009, shall not be
a default under the Lease or this Agreement; the foregoing portion
of this sentence shall not apply if Tenant, after initially
vacating the Relinquished Space pursuant to
Paragraph 2.2 , reoccupies any portion of the
Relinquished Space pursuant to Paragraph 13.1 or
otherwise.
2.3.3. If Tenant does not vacate and surrender the
Relinquished Space to Landlord as provided in
Paragraph 2.2 and the Reduced Premises Commencement
Date does not occur on or prior to 11:59 p.m. local time
July 31, 2009, Tenant shall be deemed to have
irrevocably (and
without any further action required by any party) elected to
continue to lease the Relinquished Space through
October 31, 2009 (the period of time commencing on
August 1, 2009 and continuing through
October 31, 2009 shall be known as the “Temporary
Term”) on the terms and conditions set forth in the Lease (as
amended by this Agreement) except that Tenant shall pay as Rent for
the Relinquished Space the respective sums described in
Paragraph 2.3.2 . Except as provided in this
Paragraph 2.3.3 , any provisions of the Lease that
provide for increased Rent upon the holdover of the Tenant shall
not apply to any holding over of the Relinquished Space during the
Temporary Term. Additionally, notwithstanding any other term of
this Agreement or the Lease but subject to the provisions of
Paragraph 2.3.2 and this Paragraph 2.3.3 ,
Tenant’s failure to vacate the Relinquished Space on or prior
to October 31, 2009, shall not be a default under the Lease or
this Agreement; the foregoing portion of this sentence shall not
apply if Tenant, after initially vacating the Relinquished Space
pursuant to Paragraph 2.2 , reoccupies any portion of
the Relinquished Space pursuant to Paragraph 13.1 or
otherwise.
2.3.4. If Tenant does not vacate and surrender the
Relinquished Space to Landlord as provided in
Paragraph 2.2 and the Reduced Premises Commencement
Date does not occur on or prior to 11:59 p.m. local time on
October 31, 2009, Tenant will be deemed to be a tenant at
sufferance with respect to the Relinquished Space and shall be
subject to immediate eviction and removal from the Relinquished
Space and shall pay for each month or partial month of holdover
period in any portion of the Relinquished Space monthly Base Rent
for the Relinquished Space equal to Two Hundred One Thousand Three
Hundred Forty-Two and No/100 Dollars ($201,342.00) per month (in
recognition of Tenant’s failure to timely surrender and
vacate the Relinquished Space to Landlord and thereby delaying
Landlord’s ability to market and lease the Relinquished Space
to other occupant(s)) plus Operating Expenses, Taxes and
Tenant’s Electricity Charge allocable to the Relinquished
Space in the same manner as provided under the Lease without regard
to Paragraph 8 of this Agreement. Landlord’s
recovery of the Base Rent and Additional Rent referenced in the
immediately preceding sentence and right to evict Tenant shall be
Landlord’s sole and exclusive remedies for Tenant holding
over the Relinquished Space after October 31, 2009 and
Landlord hereby releases all other remedies therefor provided,
however that the foregoing portion of this sentence shall not apply
if Tenant, after initially vacating the Relinquished Space pursuant
to Paragraph 2.2 , reoccupies any portion of the
Relinquished Space pursuant to Paragraph 13.1 or
otherwise. The remaining in possession by Tenant or the acceptance
by Landlord of the payment of said Base Rent and Additional Rent as
set forth herein shall not be construed as an extension or renewal
of the Lease for the Relinquished Space. Except as provided in this
Paragraph 2.3.4 , any provisions of the Lease that
provide for increased Rent upon the holdover of the Tenant shall
not apply to any holding over of the Relinquished Space after
October 31, 2009. Additionally, notwithstanding any other term
of this Agreement or the Lease, but subject to the provisions of
Paragraph 2.3.2 , Paragraph 2.3.3 , and
this Paragraph 2.3.4 , Tenant’s failure to vacate
the Relinquished Space on or after October 31, 2009, shall not
be a default under the Lease or this Agreement; the immediately
preceding sentence and the foregoing portion of this sentence shall
not apply if Tenant, after initially vacating the Relinquished
Space pursuant to Paragraph 2.2 , reoccupies any
portion of the Relinquished Space pursuant to
Paragraph 13.1 or otherwise.
2.3.5. The provisions of Section 17.03 of the Lease
shall not apply to any holding over of the Relinquished Space
referenced in this Paragraph 2.3 .
2.4. Management Office
. Pursuant to Section 2.05 of the Lease, within
thirty (30) days following the date that Landlord receives
written notice from Tenant that Tenant has vacated and surrendered
to Landlord that portion of the first (1 st ) floor of the Building
comprising approximately 866 square feet and depicted on
Exhibit C attached hereto and incorporated herein (the
“New Management Office”) in the condition required
under the Lease, Landlord shall vacate and surrender to Tenant in
the condition required under Section 12.0 of the Sublease its
current management office being sublet under the Sublease and shall
relocate its management office to the New Management Office.
Notwithstanding the provisions of Section 2.05 of the Lease,
such relocation shall be at Landlord’s sole cost and expense.
Upon such surrender of the space being sublet under the Sublease,
the Sublease shall be terminated, except for those provisions of
the
Sublease that expressly
survive termination and obligations that accrue prior to or
concurrently with such surrender. Landlord shall pay rent under the
Sublease through the end of the calendar month during which
Landlord surrenders the space subject to the Sublease.
2.5. Designation of Spaces
. Any and all references in the Lease to the terms
“First Space”, “Second Space”, “Third
Space” and “Major Portion” are hereby null and
void and of no further force or effect.
2.6. Common Area
. Notwithstanding any provisions to the contrary set
forth in Section 1.01(p) of the Lease or otherwise, the term
“Common Area” as defined in Section 1.01(p) of the
Lease and as used in the Lease shall include (i) the restrooms
(including the shower areas) located on the first (1
st ) floor of the
Building, (ii) the mail room (if and as constructed by
Landlord as part of Landlord’s Work pursuant to
Paragraph 3 of this Agreement), (iii) the loading
dock(s) serving the Building, (iv) the mechanical, electrical
and other systems rooms serving any portion of the Building,
(v) the Court and (vi) any other portion of the Building
or the Project which is not exclusively located within the
Premises. Landlord shall have the right, at Landlord’s
discretion and at its sole cost and expense, to paint over or
otherwise remove Tenant’s logo from the Court, and,
notwithstanding any other provision of the Lease, Tenant shall not
be obligated to do so.
3.1. Landlord’s Work
. Upon sixty (60) days prior written notice to
Tenant, Landlord, at Landlord’s option (in its sole and
absolute discretion) and at Landlord’s sole cost and expense,
may construct certain improvements to the Premises as shown on the
Preliminary Plan attached hereto and incorporated herein as
Exhibit A using Landlord’s standard building
finishes for the Project (as used herein, “Landlord’s
Work”). Landlord shall supervise construction and Landlord
shall have the right to inspect and reasonably approve all levels
of the construction process.
3.2. New Building Access System
. Irrespective of whether Landlord elects to proceed
with Landlord’s Work as set forth in
Paragraph 3.1 , Landlord shall, at its sole cost and
expense, install a new card access software system in the Building
(the “New Building Access System”) which shall control
access to and from the Building, the Parking Garage and elevators
serving the Building. Landlord’s obligation to complete the
New Building Access System shall not include any installation or
other work contemplated under Paragraph 9 of this
Agreement. Landlord shall use commercially reasonable efforts to
ensure that the New Building Access System is compatible with
Tenant’s current access system. The New Building Access
System shall be operated and maintained by Landlord in accordance
with Section 7.04 and Article 12 of the Lease. The New
Building Access System must be installed as set forth herein and
operational by no later than June 30, 2009.
3.3. Work Within Premises
. Landlord and Tenant agree to communicate and
reasonably cooperate with each other with respect to the
performance of Landlord’s Work such that Landlord is able to
perform Landlord’s Work economically and efficiently without
unreasonable disruption to Tenant’s continuing operations in
the Premises. At Tenant’s request, Landlord shall be
performing (and hereby agrees to perform) Landlord’s Work in
the Premises only after 6:00 p.m. on weekdays and at all hours on
Saturdays and Sundays. However, Tenant understands that those
portions of the Premises in which Landlord is performing
Landlord’s Work will be construction zones in which
construction materials and equipment will be stored during business
hours as well as the hours during which Landlord is actually
performing Landlord’s Work. Accordingly, notwithstanding any
provision to the contrary contained in the Lease and provided that
Landlord does not unreasonably interfere with Tenant’s use of
the Premises for the Permitted Uses, Landlord and Landlord’s
contractors, agents and employees shall have all access and other
rights reasonably required in order to perform and complete
Landlord’s Work and such performance and completion of
Landlord’s Work shall in no way constitute constructive
eviction of Tenant from any portion of the Premises nor shall
Tenant be entitled to abatement or reduction of Base Rent,
Additional Rent or other charges payable by Tenant under the Lease
as a result thereof. Tenant’s reasonable cooperation with
Landlord shall include, without limitation, removing from the
interior walls of the Premises all pictures, posters,
artwork, pins, tape and
other items not intended to receive paint and moving any and all
furniture, equipment and other property away from the portion(s) of
the Premises where Landlord’s Work is being performed prior
to Landlord commencing the relevant portion of Landlord’s
Work.
4.1. New Tenant Improvements; Separate
Utility Meter(s) . Within ninety (90) days
following the Effective Date or such additional time as Tenant may
reasonably require (except as specifically set forth below in this
Paragraph 4.1 ), Tenant shall complete those
improvements generally described and shown on Exhibit B
attached hereto and incorporated herein (the “New Tenant
Improvements”). Approval of plans and specifications for the
New Tenant Improvements and construction and installation of the
New Tenant Improvements shall be governed by the provisions of
Exhibit D-1 attached to the Lease specifically
excluding (i) Section 2.1, (ii) any reference in
Section 2.2 to Landlord’s pre-approval of the
Construction Manager or Bidding Contractor,
(iii) Section 2.3, (iv) any reference to Major
Portion(s), (v) Section 4, (vi) Section 5(i)
and (vii) Section 7(i). Landlord shall not unreasonably
withhold or delay Landlord’s approval of Tenant’s plans
and specifications. Without limiting the foregoing, on or prior to
the Reduced Premises Commencement Date Tenant shall install a
separate utility meter(s) for the data center located within the
Premises and shall pay all electrical and other charges therefor as
a direct reimbursement to Landlord pursuant to
Paragraph 8.5 of this Agreement in addition to
Tenant’s payment of Tenant’s Electricity Charge; such
installation shall be at Tenant’s sole cost and expense,
provided that Tenant may allocate such costs against the Soft Cost
Portion of the TI Allowance subject to and as provided in
Paragraph 4 of this Agreement.
4.2. TI Allowance
. Provided Tenant is not in default under the Lease
beyond any applicable cure periods (or if Tenant is then in
default, upon Tenant’s cure of any such default) and subject
to the provisions of this Paragraph 4.2 and
Paragraph 4.4 , Landlord will pay Tenant an improvement
allowance (the “TI Allowance”) of up to Seven Hundred
Seventy-Six Thousand Two Hundred Sixty and No/100 Dollars
($776,260.00), up to One Hundred Sixteen Thousand Four Hundred
Thirty-Nine and No/100 Dollars ($116,439.00) of which (the
“Soft Cost Portion”) may be allocated by Tenant toward
Soft Construction Costs (as defined below). The remainder of the TI
Allowance shall be allocated only toward Hard Construction Costs
(as defined below). The TI Allowance shall be paid by Landlord
within thirty (30) days after: (i) the New Tenant
Improvements have been completed substantially in accordance with
Tenant’s plans and specifications approved by Landlord as
provided in Paragraph 4.1 of this Agreement and
Exhibit D-1 to the Lease (modified as set forth in
Paragraph 4.1 ) and all permit requirements and
otherwise substantially in compliance with
Paragraph 4.1 of this Agreement and Exhibit D-1 to
the Lease (modified as set forth in Paragraph 4.1 );
(ii) Tenant has paid for all sums, costs and expenses due for
any work, labor, services, materials, supplies or equipment
furnished for, or in connection with, the New Tenant Improvements,
has obtained unconditional lien waivers from all parties providing
such work, labor, services, materials, supplies, or equipment, and
has provided Landlord with copies of such paid invoices and lien
waivers (provided, however, notwithstanding the foregoing, if
Tenant is unable to obtain any such lien waivers, Tenant may bond
around any potential lien claims for which Tenant was unable to
obtain a lien waiver or escrow in a manner reasonably acceptable to
Landlord 125% of the amount of any potential lien claims for which
Tenant was unable to obtain a lien waiver so long as Tenant
continues to diligently pursue such lien waiver(s) (or other
resolution reasonably acceptable to Landlord) and in any event
provides to Landlord all such unconditional lien waiver(s) (or
other resolution which, under applicable laws, prevents any lien
claims against any portion of the Project or Complex or is
otherwise acceptable to Landlord in its sole and absolute
discretion) within eighteen (18) months following the
completion of the New Tenant Improvements); (iii) Tenant has
provided Landlord with copies of invoices and/or receipts
evidencing the amount to be reimbursed up to the full amount of the
TI Allowance. As used herein, “Soft Construction Costs”
shall mean actual, out-of-pocket costs incurred by Tenant in
connection with the New Tenant Improvements and other matters
related to Tenant’s renovation of the Premises to consolidate
its operations from the Relinquished Space into the Premises
including, without limitation, moving,
space planning,
architectural fees, engineering fees, construction drawings,