Exhibit 10.17
SECOND AMENDMENT TO OFFICE LEASE
This Second Amendment to Office Lease is entered into between Matco
Enterprises, Inc., a Washington Corporation, hereinafter referred to as
"Landlord" and qad. inc, a California Corporation hereinafter referred as to
"Tenant".
This Second Amendment To Office Lease is made in reference to the
following facts:
A. Landlord and Tenant entered into an Office Lease, dated November 30,
1992, for Suites I,K and L located at 0000 Xxxxxxxxxxx Xxxxxx, Xxxxxxxxxxx,
Xxxxxxxxxx, hereinafter "Office Lease".
B. Landlord and Tenant entered into a First Amendment To Office Lease
dated September 9, 1993 whereby Landlord leased Suite C and H to Tenant on
the terms and conditions of the First Amendment To Office Lease.
C. Tenant desires to exercise its right to expand to Suite J provided
for in the Office Lease on the terms and conditions of this Second Amendment
to Office Lease.
IT IS AGREED:
1. ADDITIONAL LEASED PREMISES.
The Additional Leased Premises hereunder is Suite J located at 0000
Xxxxxxxxxxx Xxxxxx, in the City of Carpinteria, County of Santa Xxxxxxx,
State of California, and identified on the floor plan attached hereto as
Exhibit "A". Said Additional Leased Premises contain 10,493 net rentable
square feet in Suite J. The reference to the term Premises in the Office
Lease shall also apply to the Additional Leased Premises as used in this
First Amendment To Office Lease. Landlord acknowledges having waived its
right to exclude Suites 223 and 224 of Suite J from the expansion by Tenant
under the terms of Paragraph 13(c) of the Office Lease.
1.
2. TERM OF LEASE.
The term of this Lease as to Suite J shall commence one (1) day after
notification that the improvements required for the Additional Leased
Premises, Suite J, have been substantially completed and shall terminate with
the termination of the Office Lease.
3. RENT.
(a) Tenant shall pay to Landlord, as minimum monthly rent without
deduction, set off, prior notice or demand, the sum of $13,116.25 ($1.25/per
square foot x 10,493 of net rentable square footage for Suite J) together
with an additional amount due to the annual cost of living adjustment on
January 1, 1994. The rent provided for herein shall be paid in advance on the
first day of each month commencing on date of commencement of the term of the
Lease for the Additional Leased Premises and continuing during the term of
the original Office Lease, which rent shall be in addition to rent provided
for in the Office Lease, and the First Amendment to Office Lease. Minimum
monthly rent for any partial month, including the first month and last month
of the lease as to Suite J shall be prorated at the rate of 1/30th of the
minimum monthly rent per day.
(b) The minimum monthly rent shall be subject to adjustments as
provided for in Paragraph 5(b) of the Office Lease.
4. SECURITY DEPOSIT.
Simultaneously with the execution of the Second Amendment To Office
Lease, Tenant shall deposit with the Landlord $31,583.93 which includes the
sum of $13,116.25 representing the first month's rent, $13,116.25
representing the additional security deposit for the Additional Leased
Premises and the sum of $5,351.43 representing the payment towards the first
month's operating costs and real property taxes.
2.
5. PROPERTY TAXES AND OPERATING COSTS.
Tenant shall pay monthly to Landlord as additional rent its
proportionate share of property taxes, and operating costs which shall be
computed in the manner provided for the Paragraphs 8, 9, and 10 of the Office
Lease taking into account the additional net rentable square footage occupied
by the Tenant in the Additional Leased Premises.
6. TENANT IMPROVEMENTS.
Tenant improvements for the Additional Leased Premises, Suite J, shall
be completed according to the following terms and conditions:
(a) It is acknowledged by Landlord and Tenant that Tenant gave notice
to Landlord of exercising its right to expand into Suite J on or about
November 9, 1994.
(b) Within thirty (30) days of Tenant's notice, Tenant shall provide
Landlord with plans and specifications for the tenant improvements for Suite
J. Provided Tenant has timely delivered to Landlord its plans and
specifications for the tenant improvements for Suite J, Landlord shall have a
maximum of one hundred forty (140) days from Tenant's notice of exercising
its right to expand into Suite J to construct the tenant improvements in
accordance with the plans and specifications provided by Tenant. Landlord
shall deliver possession of the Additional Leased Premises to Tenant for
occupancy promptly and will use every reasonably effort to deliver possession
as soon as possible.
(c) Landlord shall bear the cost of such tenant improvements up to an
amount equal to $15/per square foot of net rentable space of Suite J of
10,493 square feet for a total tenant improvement allowance of $157,395.00.
The cost of tenant improvements in excess of $157,395.00 shall be borne by
Tenant and shall be paid upon substantial completion of the tenant
improvements. The cost of the tenant improvements shall include all "hard"
and "soft" cost associated with the construction of the tenant improvements
as those terms are defined in Paragraph 1(b) of the Office Lease.
3.
Landlord shall complete the tenant improvements in a good and workmanlike
manner.
7. ADDITIONAL TERMS.
Except where inconsistent with this Second Amendment To Office Lease,
the terms and conditions of the Office Lease shall apply equally to the
Additional Leased Premises, Suite J, as to Suites I, L, K, C and H.
IN WITNESS WHEREOF, the parties have executed this Second Amendment To
Office Lease on January 14th, 1994.
LANDLORD: MATCO ENTERPRISES, INC., a
Washington Corporation
By: /s/ Xxxxxx Xxxxxx
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XXXXXX XXXXXX, formerly known as
Xxxxxx Xxxxxx Xxxx, President
TENANT: qad. inc.
By: /s/ Xxx Xxxxxx 1/11/94
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XXX XXXXXX, President
By: /s/ Xxxx Xxxxxx 1/11/94
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XXXX XXXXXX, Vice-President
APPROVED AS TO FORM AND CONTENT:
THE XXXXXXX XXXXXXX COMPANY
By: /s/ Xxxxxxx Xxxxxxx
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XXXXXXX XXXXXXX
4.
Exhibit A
FLOOR PLAN
Suite J is leased premises.
