SECOND LEASE MODIFICATION AGREEMENT
Exhibit 10.73.2
THIS LEASE MODIFICATION AGREEMENT dated for reference the 1st day of April, 2006. In
Pursuance of the Land Transfer Form Act, Part 2
BETWEEN:
000 XXXXX XXXXXX INC.
1100 – 000 Xxxxxxx Xxxxxx
Xxxxxxxxx, X.X.
X0X 0X0)
1100 – 000 Xxxxxxx Xxxxxx
Xxxxxxxxx, X.X.
X0X 0X0)
(the “Landlord”)
AND:
BUSINESS OBJECTS CORP.
000 Xxxxxx Xxxxxx
Xxxxxxxxx, X.X.
X0X 0X0
000 Xxxxxx Xxxxxx
Xxxxxxxxx, X.X.
X0X 0X0
(the “Tenant”)
AND:
BUSINESS OBJECTS AMERICAS
0000 Xxxxxxx Xxxxxxx
Xxx Xxxx, Xxxxxxxxxx
X.X.X. 00000
0000 Xxxxxxx Xxxxxxx
Xxx Xxxx, Xxxxxxxxxx
X.X.X. 00000
(the “Indemnifier”)
WHEREAS:
A. | By a lease dated December 23, 2004, and modified by a lease modification agreement dated September 15, 2005 (together the “Lease”) between the Landlord and the Tenant, the Tenant leased premises on lands legally described as: |
Parcel Identifier: 000-000-000
Strata Xxx 0, Xxxxxxxx Xxx 000, Xxxxxx Plan LMS156,
together with an interest in the common property to the unit entitlement of the strata lot as shown on Form 1
Strata Xxx 0, Xxxxxxxx Xxx 000, Xxxxxx Plan LMS156,
together with an interest in the common property to the unit entitlement of the strata lot as shown on Form 1
(the “Lands”).
B. | The Lease commenced on May 1, 2005, and the initial term of the Lease terminates on April 30, 2015. |
C. | The Landlord and the Tenant have agreed to modify the Lease to include additional premises on the terms and conditions set forth in this agreement (the “Agreement”). | |
D. | The Indemnifier is a party to the Lease and has consented to the modification of the Lease on the terms set out in this Agreement. |
NOW THEREFORE in consideration of the sum of $10.00 paid by each party to each of the other parties
and other good and valuable consideration, the receipt and sufficiency of which is hereby
acknowledged by each party, the Landlord and the Tenant covenant and agree that:
1. | DEFINITIONS | |
In this Agreement: |
(a) | “Additional Premises” means that area adjacent to the Original Leased Premises shown cross-hatched on the plan attached as Schedule “A” hereto, consisting of the Additional Premises Area; | ||
(b) | “Additional Premises Additional Rental” means that portion of Additional Rental that the Tenant is obligated to pay under the Lease in relation to the Additional Premises; | ||
(c) | “Additional Premises Area” means 23,069 square feet of rentable area on the second (2nd) floor of the Building; | ||
(d) | “Additional Premises Minimum Rental” means that portion of Minimum Rental that the Tenant is obligated to pay under the Lease in relation to the Additional Premises as specified in clause 4 of this Agreement; | ||
(e) | “Additional Premises Minimum Rental Free Period” means the period from August 1, 2006 to August 31, 2006; | ||
(f) | “Additional Premises Rental” means that portion of Rental that the Tenant is obligated to pay under the Leas in relation to the Additional Premises; | ||
(g) | “Additional Premises Rental Free Period” means the period from June 1, 2006 to July 31, 2006; | ||
(h) | “Additional Premises Term” means the period commencing on the Effective Date and terminating April 30, 2015, as such term may be renewed pursuant to the Lease; | ||
(i) | “Effective Date” means June 1, 2006; | ||
(j) | “Fixturing Period” means April 1, 2006 to May 31, 2006; | ||
(k) | “Lease” means the Lease referred to in Recital A above, and from and after the Effective Date means the Lease as modified by this Agreement; | ||
(l) | “Original Leased Premises” means the premises demised to the Tenant under the Lease; |
and other words which are capitalized herein will have the meanings given to them in the Lease, or in this Agreement if defined in this Agreement. |
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2. | DEMISE | |
The Landlord hereby demises and leases to the Tenant, and the Tenant hereby leases and takes from the Landlord, the Additional Premises for the Additional Premises Term. | ||
3. | MODIFICATION |
(a) | From and after the Effective Date, the Lease will be modified to include the Additional Premises for the Additional Premises Term as set out in this Agreement and, except for the payment of Minimum Rental for the Additional Premises, all provisions of the Lease will apply to the Additional Premises as they do to the Original Leased Premises, and all references in the Lease to “Premises” will include the Original Leased Premises and the Additional Premises. | ||
(b) | For the purposes of any right of renewal contained in the Lease, including the determination of the rental rate during any such renewal term, the Original Leased Premises and the Additional Premises shall be considered as one premises and any right of renewal exercised by the Tenant must be exercised with respect to both the Original Leased Premises and the Additional Premises. | ||
4. | MINIMUM RENTAL | ||
The Tenant will pay to the Landlord, during the Additional Premises Term (but excluding the Additional Premises Rental Free Period and the Additional Premises Minimum Rental Free Period), additional Minimum Rental (“Additional Premises Minimum Rental”) for the Additional Premises, monthly in advance on the first day of each calendar month, from the Effective Date to and including April 1, 2015 the sum of $16.00 per square foot of Additional Premises Area per annum. Additional Premises Minimum Rental will be treated for all purposes under the Lease as Minimum Rental for the Additional Premises during the Additional Premises Term and any renewal thereof in accordance with the Lease and this Agreement. For greater certainty, the Tenant is not required to pay Additional Premises Rental during the Additional Premises Rental Free Period. The Tenant is also not required to pay Additional Premises Minimum Rental but must pay Additional Premises Additional Rental during the Additional Premises Minimum Rental Free Period. | |||
5. | TENANT IMPROVEMENTS | ||
The Tenant, at its cost, will be responsible for all work required to fixture the Additional Premises for the Tenant’s intended use. Provided that prior to installing any such improvements or fixtures the Tenant shall have received approval of the same in writing from the Landlord, such approval not to be unreasonably refused by the Landlord. | |||
6. | FIXTURING PERIOD | ||
The Tenant shall have possession of the Leased Premises for the Fixturing Period for the purpose of fixturing the Additional Premises. Notwithstanding any other provision of this Agreement and the Lease, the Tenant shall not be required to pay any Rental for the Additional Premises during the Fixturing Period. In the event the Tenant completes its fixturing of the Additional Premises prior to the end of the Fixturing Period, the Tenant may occupy and open for business in the Additional Premises prior to the Effective Date, but the Tenant’s obligation to pay Rental for the Additional Premises shall not begin until the Effective Date. Except with respect to the payment |
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of Rental for the Additional Premises during the Fixturing Period, the Tenant shall be bound by all terms and conditions of this Agreement and the Lease during the Fixturing Period. | |||
7. | DEMOLITION ALLOWANCE | ||
Subject to the provisions of this section 7, and on the basis of the Landlord’s representation that the following areas have been calculated in accordance with BOMA, and provided the Landlord delivers to the Tenant surveyed plans showing the calculation in accordance with BOMA, the Landlord shall pay to the Tenant an allowance (the “Additional Premises Demolition Allowance”) calculated on an amortized basis of $1.87 per square foot of the actual useable area of the Additional Premises Area being an amount equal to $43,139.03. It is expressly understood and agreed that the Additional Premises Demolition Allowance is to be paid for the purpose of reimbursing the Tenant for the demolition work to be carried out by the Tenant on the Additional Premises (the “Additional Premises Demolition Work”). Provided the Tenant is not then in breach of the Lease and this Agreement, and further provided that the Tenant is occupying all of the fourth and fifth floors of the Building, the Additional Premises Demolition Allowance shall be paid by the Landlord after the last to occur of the following: |
(a) | the receipt by the Landlord from the Tenant of a statutory declaration executed no less than sixty (60) days after completion of the Additional Premises Demolition Work stating that there are no claims of builders’ lien or other liens or encumbrances affecting the Additional Premises with respect to work, services, materials and equipment relating to the Additional Premises, and that the Tenant’s designers, contractors, subcontractors, works, and suppliers of materials and equipment have been paid in full for all work and services performed and materials and equipment supplied by them on or to the Additional Premises; | ||
(b) | receipt by the Landlord of a copy of this Agreement duly executed by the Tenant; and | ||
(c) | receipt by the Landlord of a written notice requesting payment of the Additional Premises Demolition Allowance. |
The Landlord agrees that any portion of the Additional Premises Demolition Allowance not applied by the Tenant to reimbursement of the Additional Premises Demolition Work may be used by the Tenant as a credit against the Rental owing. |
8. | TENANT IMPROVEMENT ALLOWANCE | |
Subject to the provisions of this section 8, the Landlord shall pay to the Tenant an allowance (the “Additional Premises Tenant Improvement Allowance”) calculated on an amortized basis of $23.39 per square foot of the Additional Premises Area being an amount equal to $539,583.91. It is expressly understood and agreed that the Additional Premises Tenant Improvement Allowance is to be paid for the purpose of reimbursing the Tenant for a portion of its out of pocket expenses in completing the Tenant’s Work in the Additional Premises, and fully equipping the Additional Premises with all trade equipment, lighting fixtures, furniture and operating equipment, installing appropriate signage and moving into the Additional Premises. Provided the Tenant is not then in material breach of this Agreement, the Additional Premises Tenant Improvement Allowance shall be paid by the Landlord on a monthly draw basis to the Tenant upon receipt by the Landlord of a statutory declaration stating that there are no claims of builders’ lien or other liens or encumbrances affecting the Additional Premises with respect to work, services, materials and equipment relating to the Additional Premises, and that the Tenant’s designers, contractors, subcontractors, works, and suppliers of materials and |
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equipment have been paid in full for all work and services performed and materials and equipment supplied by them on or to the Additional Premises. Notwithstanding the foregoing, the Landlord shall not be obligated to pay the Additional Premises Tenant Improvement Allowance until the Tenant has executed and delivered a copy of this Agreement. The Landlord shall be permitted to set off and deduct from the Additional Tenant Improvement Allowance any outstanding amounts owing by the Tenant to the Landlord pursuant to the Lease or this Agreement, provided that the Tenant is first given forty eight (48) hours notice with respect to such outstanding amounts in order to remedy such breach. | ||
9. | AREA OF LEASED PREMISES | |
The parties agree and acknowledge that as and from the Effective Date the Area of Leased Premises consists of a total rentable area of 94,135 square feet consisting of: |
(a) | 23,069 square feet (2nd floor); | ||
(b) | 23,082 square feet (3rd floor); | ||
(c) | 23,130 square feet (4th floor); | ||
(d) | 21,802 square feet (5th floor); and | ||
(e) | 3,052 square feet (6th floor). |
10. | CONTINUING EFFECT | |
This Agreement as and from the date hereof will be read and construed along with the Lease and treated as a part thereof; and the Lease, as hereby modified, will continue to be of full force and effect; and the Landlord and Tenant confirm and ratify the Lease as hereby modified. |
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11. | ENUREMENT | |
This Agreement will enure to the benefit of and be binding upon each of the Landlord and the Tenant and their respective successors and permitted assigns. |
IN WITNESS WHEREOF the Landlord, the Tenant and the Indemnifier have executed this Agreement as of
the date first above written.
000 XXXXX XXXXXX INC. | (LANDLORD) | |||||||||
Per: |
/s/ Xxxx Xxxxxx | |||||||||
Authorized Signatory | ||||||||||
Print Name: | Xxxx Xxxxxx | |||||||||
BUSINESS OBJECTS CORP. | (TENANT) | |||||||||
Per: | /s/ Xxxxx X. Xxxxx | |||||||||
Authorized Signatory | ||||||||||
Print Name: | Xxxxx X. Xxxxx | |||||||||
BUSINESS OBJECTS AMERICAS | (INDEMNIFIER) | |||||||||
Per: | /s/ Xxxxx X. Xxxxxxx | |||||||||
Authorized Signatory | ||||||||||
Print Name: | Xxxxx X. Xxxxxxx |
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SCHEDULE “A”
PLAN OF ADDITIONAL PREMISES AREA
![(MAP)](https://www.sec.gov/Archives/edgar/data/928753/000095013406015549/f22708f2270801.gif)
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