LEASE AGREEMENT
Exhibit 10.24
THIS LEASE (this “Lease”) is made as of February 16, 2010 by and between Genesis Partners, LLC of
Bozeman, Montana, herein referred to as “Landlord”, and Right Now Technologies, Inc., a Montana
corporation, of Bozeman, Montana, hereinafter referred to as “Tenant”.
WITNESSETH:
1. Leased Property. Landlord hereby leases to Tenant the office building located on
the real property in Gallatin County, Montana whose address is 000 Xxxxxxxxxx Xxxx, Xxxxxxx,
Xxxxxxx, consisting of 12,912 square feet as depicted on the attached Exhibit A, together with (i)
the nonexclusive right of ingress and egress for Tenant and its employees, agents, invitees and
contractors between the building and the nearest public streets, and (ii) the exclusive right to
use the parking as depicted on attached Exhibit A for its employees, agents, invitees and
contractors (the “premises”). Landlord represents and agrees that the parking lot will provide, at
all times during the term of this Lease, a parking ratio of not less than four spaces per 1000
square feet of rentable square footage in buildings whose tenants are or will be using the parking
lot.
2. Terms of Lease. The primary term of this Lease shall be for sixty (60) months
commencing on the 13th day of June, 2010, and ending on the 12th day of June, 2015, both
dates inclusive, unless sooner terminated as herein provided.
3. Option to Extend. Upon expiration of the primary term of this Lease, Tenant is
granted an option to extend the term of this Lease for one (1) additional sixty (60) month period,
upon the same terms and conditions as are included in this Lease, subject, however, to
renegotiation of the rent provided in paragraph 4 of this Lease. The primary term and the
extension terms will be collectively referred to in this Lease as the “term.” Tenant shall notify
Landlord within not less than one hundred twenty (120) days prior to the expiration of the primary
term of this Lease or prior to the expiration of each extension term of Tenant’s exercise of its
option to extend this Lease, provided that in the circumstances described in paragraph 13, the
options to extend the term may be exercised earlier as provided in paragraph 13, and if the option
to extend is exercised earlier as provided in paragraph 13, nevertheless, the rental payable as
provided in paragraph 4 shall be determined at the time and in the manner provided in paragraph 4
and this paragraph 3. During the
following sixty (60) day period, Tenant and Landlord shall negotiate and arrive at an agreement or
disagreement of the amount of rent to be paid during the applicable extension term. If Landlord and
Tenant agree upon the rent to be paid during the applicable extension term, Landlord and Tenant
shall at the end of the sixty (60) day period enter into a new written lease or an amendment
agreement setting forth the amount of rental Tenant shall be required to pay pursuant paragraph 4
for the applicable extension term and any other additional terms to which Landlord and Tenant have
agreed. If Tenant and Landlord fail to agree upon the rent to be paid during the applicable
extension term during the sixty (60) day period of negotiations, a fair market appraisal comparison
of comparable properties will be completed by an independent party upon which the Landlord and
Tenant may use to negotiate the amount of rent to be paid during the applicable extension term. If
Tenant and Landlord fail to agree upon the rent to be paid during the applicable extension term
during the sixty (60) day period of negotiations, either Landlord or Tenant may, by written notice
to the other party given within the ensuing thirty (30) day period, elect to invoke the arbitration
provisions of this Lease to determine the rent Tenant shall be required to pay pursuant to
paragraph 4 for the applicable extension term.
4. Rent. Tenant shall pay as rental for the premises for the first year of the primary term
of the Lease the sum of $198,845 computed at the rate of $15.40 per square foot on
12,912 square feet of office space, payable monthly, in advance on the first day of each month, in
installments of $16,570 per month. On each anniversary date of this Lease, beginning on
June 12th, 2011, the annual rent shall be increased by 2%. Rent shall be paid without
notice or demand by Landlord to Landlord at 000 Xxxxxxxxxx Xxxx, Xxxxx 000, Xxxxxxx, Xxxxxxx 00000
or at such other place as Landlord may direct in writing.
5. Covenants. Tenant hereby acknowledges and agrees:
A. Tenant is familiar with the premises. Tenant’s taking of possession of the premises shall
be conclusive evidence that the premises were in good, clean and sanitary condition, are in all
respects satisfactory and acceptable to Tenant, and are in the condition in which Landlord
represented the premises to be.
B. Tenant will keep the premises in a clean and sanitary condition during the term of this
Lease. Landlord shall have no obligation to make any alterations or improvements of any kind in or
about the premises other than as set forth in this Lease. Tenant shall repair or replace promptly
all
damages to the premises due to acts of Tenant, its agents, employees, invitees, or subtenants,
reasonable wear and tear excepted. Tenant also shall not cause any waste to be committed in or
about the premises; Tenant will keep the premises free and clear of any and all refuse and debris;
and Tenant agrees to observe all rules and regulations of the County of Gallatin and State of
Montana in any way relating to maintenance, use and occupancy of the premises.
C. Tenant will not use or permit anything to be used upon the premises which is likely to
deface or damage the premises, or do anything that will increase the rate of insurance thereof
(unless Tenant first agrees to pay any increased premiums), or permit anything to be done upon the
premises or in the areas, sidewalk or streets adjacent to the premises, which will amount to or
create a nuisance.
D. Tenant shall make no alterations in or additions to the premises without first obtaining
Landlord’s written consent, which consent will not be unreasonably withheld, delayed or
conditioned. Tenant shall not erect or permit to be erected upon the premises any signs without
written consent of Landlord, which consent will not be unreasonable withheld, delayed or
conditioned.
E. Tenant agrees, with respect to all alterations or improvements to the premises or any part
thereof, which Tenant undertakes with written consent of Landlord, that Tenant shall in all
instances save Landlord and the premises forever harmless and free from all damages, loss and
liability of every kind and character which may be claimed, asserted or charged, including
liability to adjacent owners or tenants, based upon the acts or negligence of Tenant or its agents,
contractors or employees, for any negligence, or for the failure of any of them to observe and
comply with the requirements of the law, including the regulations and the authorities in the City
of Bozeman, and Tenant will preserve and hold Landlord and the premises free and clear from all
liens or encumbrances for labor and materials furnished. Any and all alterations,
additions, and improvements made by Tenant to or upon the premises (with the exception of
furnishings, equipment, and removable trade fixtures installed by Tenant) shall, upon installation,
be deemed attached and part of the premises, provided however, that if prior to termination of this
Lease, or within fifteen (15) days thereafter, Landlord so directs by written notice to Tenant,
promptly following said termination of this Lease, Tenant shall remove such of the said
additions, improvements, fixtures, and installations placed upon the demised premises by Tenant as
shall by
designated in said notice from Landlord, and Tenant shall repair any damages occasioned by such
removal. Further, in this regard, Tenant hereby agrees that it will, during the continuance of this
Lease, keep the premises and interior of the premises in good condition and repair, reasonable wear
and tear excepted.
F. Tenant may use and occupy the premises for the purpose of a business office and all
activities incidental thereto, including the manufacture of software, and not otherwise. Tenant
shall not use or knowingly permit any part of the premises to by used for any unlawful purposes and
shall comply with all applicable laws and regulations of the County of Gallatin, State of Montana,
and the United States of America.
G. Tenant agrees that Landlord shall not be liable for any damage or injury to persons or
property or for the loss of property sustained by Tenant or by any other person or persons on the
premises due to any act of negligence of Tenant.
H. Tenant agrees that it will not assign this Lease or sublease any portion of the premises or
permit this Lease to transferred by operation of law or otherwise without the written consent of
Landlord, which consent shall not be unreasonably withheld, delayed or conditioned; provided,
however, that any merger and reorganization of Tenant for the purpose of incorporating under
another state law shall not be deemed to be an assignment for purposes of this paragraph and shall
not require Landlord’s consent, or that any merger or change in control of the Tenant shall not be
deemed to be an assignment for the purposes of this paragraph and shall not require Landlord’s
consent. Tenant shall remain responsible under this Lease for any portion of the premises sublet by
Tenant (even if Landlord approved the subletting), unless Landlord shall agree otherwise. Any
subtenant to whom any portion of the property is sublet shall agree to abide by the provisions of
this Lease which are applicable to the sublet portion of the premises, before Landlord will be
required to consent to the proposed subleasing of any portion of the premises.
I. Tenant will permit Landlord, at all reasonable times and after reasonable notice to Tenant
at Landlord’s sole risk and expense and in a manner that causes the least practical disruption to
Tenant, to enter upon the premises (i) to inspect their condition and to make reasonable and
necessary repairs for the protection and preservation of the premises, (ii) to ascertain whether
Tenant has performed its covenants under this Lease, and (iii) to show the premises to persons who
may wish to rent the premises after the expiration of the term of this Lease or to purchase the
premises, provided that any showing of the premises to persons who may wish to rent the premises
shall be only during the last year of the term of the Lease.
J. Tenant, upon leaving the premises, shall at its own expense, remove all dirt, rubbish, and
refuse and upon failure to do so, Landlord may immediately, without further notice, do so at
Tenant’s expense. Tenant shall immediately pay Landlord’s expenses upon receipt of a xxxx for the
same from Landlord.
6. Default and Landlord’s Rights. If the premises shall be deserted or vacated, or if
a trustee or receiver of a substantial portion of Tenant’s property is appointed, or if an order
is entered against Tenant for relief under Title 11 of the United States Code, or there shall be a
default in payment of any rent for more than five (5) days after written notice of such default
from Landlord, or there shall be a default in the performance or any other covenant, agreement,
condition, rule or regulation herein contained, or hereafter established with Tenant’s consent,
which shall continue for more than thirty (30) days (or, if the default is not curable within
thirty (30) days and if Tenant begins to cure the default within such thirty (30) day period and
diligently pursues curing the same, then for such for additional period as shall be reasonably
necessary to cure the default) after Tenant’s receipt of written notice of such default from
Landlord, Tenant’s rights in this Lease (if Landlord so elects, and such election is reserved)
shall thereupon terminate and end without the necessity for any further notice, and Landlord shall
have the right to re-enter and repossess the premises in the manner permitted by law and
dispossess or remove there from Tenant or other occupants thereof and their effects without being
liable to any prosecution or action therefore. Landlord may likewise, at Landlord’s option, and in
addition to any other remedies which Landlord may have upon default, let and relet the premises in
whole or in part, altering, changing or subdividing the same as in its reasonable judgment may
accomplish the best rental results, and upon such terms and for such length of time, whether
lesser or greater than the unexpired portion of the term of this Lease, as Landlord may reasonably
see fit, and Tenant shall be liable to Landlord for any deficiency between the remaining unpaid
rental and the rental so procured by Landlord for the period of said letting or reletting which is
during the remaining term of this Lease and shall further be liable for the reasonable costs of
reletting and alterations or changes required to enable Landlord to let and relet the premises,
the deficiency and costs not to exceed, however, the balance of the unpaid rental due from tenant
for the remaining term of the Lease. Landlord any institute action for
the whole of any such deficiency immediately upon effecting a letting or reletting and shall not
thereafter be precluded from further like action in the event such letting or relettng shall not
cover the entire unexpired portion of the term hereof, or Landlord may monthly, or at such greater
intervals as it may see fit, require Tenant to pay said deficiency then existing, and Tenant agrees
to pay said deficiency to Landlord from time to time when called upon by Landlord to do so. Should
this Lease not be terminated, Landlord may, notwithstanding such letting or reletting, at any time
thereafter elect to terminate it. Tenant, upon termination as herein provided, will yield quiet and
peaceful possession to Landlord, subject to any letting or reletting Landlord has effected of the
premises. If Landlord shall give the notice of termination as herein provided, then, at the
expiration of such period, this Lease shall terminate as completely as if that were the date herein
fixed for the expiration of the term of this Lease, and Tenant shall then surrender the premises to
Landlord.
7. No Waiver of Breach. Tenant agrees that no consent, expressed or implied, by
Landlord to any breach of Tenant’s covenants or agreements shall be deemed a waiver of any
succeeding breach.
8. Notice. It is agreed that all notices herein required to be given shall be
effective upon mailing, postage prepaid, addressed to Landlord at 000 Xxxxxxxxxx Xxxx, Xxxxx 000
Xxxxxxx, Xxxxxxx 00000 or addressed to Tenant at 000 Xxxxxxxxxx Xxxx, Xxxxxxx, Xxxxxxx or such
other place as either may designate in writing to the other. In addition, any notice from Landlord
to Tenant relating to this Lease or the premises shall be deemed duly served if personally
delivered to an officer of Tenant at the premises.
9. Surrender Upon Termination. Tenant shall, upon termination of the term, peacefully
and quietly surrender the premises to Landlord in as good condition as it was at the beginning,
reasonable use and wear and damage by the elements excepted. Tenant shall remove all of its
personal property and trade fixtures (repairing any damage to the premises such removal causes) so
that Landlord can repossess and enjoy the premises not later than noon on the day upon which the
term ends, whether upon notice or by holdover or otherwise. Landlord shall have the right to
enforce this covenant by ejectment, for damages, or for breach of any other condition or covenant
of this Lease.
10. Peaceful Possession. Landlord covenants and agrees, at its sole expense, that the
exterior, structure, the roof and the heating, ventilating, air conditioning, electrical, plumbing
and all
utility systems on or in the premises shall be maintained in good repair and tenantable condition,
excepting damage resulting from neglect or intentional acts of Tenant, its agents, employees,
contractors and invitees. So long as Tenant pays the rent and performs the covenants and agreements
herein contained, Tenant shall peacefully and quietly hold the premises for the primary term and
any extensions thereof.
11. Time of Essence. Time is of the essence of this Lease with respect to the
performance by Tenant and Landlord of their obligations hereunder.
12. Attorney’s Fees. In the event any action to enforce any of the terms of this Lease
is brought, the prevailing party shall be entitled to its reasonable attorney’s fees as provided in
paragraph 25.
13. Liability — Premises. Landlord shall not be responsible or liable (i) for any
personal injury to Tenant or any other person on the premises, or for injury or damage to personal
property or improvements of Tenant or of any third party on the premises unless such injury or
damage is caused by the neglect or omissions of Landlord, its agents or employees; (ii) for injury
or damage caused by the neglect or omissions of Tenant or its agents, contractors, invitees or
employees; or (ii) on account of any inconvenience or annoyance or damage caused by fire,
explosion, earthquake, flood or other causes beyond the control of Landlord. Tenant will obtain
general liability insurance in an amount of not less than $1,000,000 on which Landlord shall be
named as an additional insured. If Tenant shall sublet any portion of the premises, the subtenant
shall also furnish the general liability insurance required of Tenant or be covered under Tenant’s
policy.
In addition, Tenant will at all times hold Landlord harmless from any claim or damages by
reason of any personal injury, property damage, or otherwise, arising from its operation or use of
the premises or any of Tenant’s equipment used in connection therewith, provided the claim or
damage is not caused by negligence or omission of Landlord, its agents, contractors or employees.
Landlord shall carry, at its sole expense, all risk casualty insurance, covering the
premises, in the amount equal to the full replacement cost of the premises. The policy shall be
endorsed so that it may be terminated or amended only upon not less than thirty (30) days prior
written notice to Tenant. The policy shall contain no co-insurance clause, a deductible amount not
exceeding $5,000, and the insurance company’s consent to the waivers of subrogation set forth in
the next sentence. Landlord waives any claims it may have against Tenant and any rights to grant
subrogation rights to
others for any loss, damage or claim which is covered by Landlord’s insurance. In the event that
the premises shall be rendered wholly or partially untenantable by fire, explosion, earthquake, Act
of God, or any other cause beyond the control of Landlord (collectively, the “casualties”),
Landlord (i) shall rebuild and restore the premises as soon as reasonably practicable to the
premises’ former condition and use but only (A) to the extent of the insurance proceeds Landlord
receives, and (B) if the casualties do not occur during the last two (2) years of the term (and for
this purpose the term shall include all extension terms Tenant notifies Landlord it will exercise
on or before thirty (30) days after the occurrence of any of the casualties), or (ii) in
circumstances not described in clause (ii) may, at its option, either terminate this Lease by
written notice given to Tenant within sixty (60) days after the casualty or commence to repair the
premises within sixty (60) days after the casualty. If Landlord shall elect or be required to
repair the premises, the rental hereunder shall be abated in proportion to the part of the premises
that are untenantable, and no rental shall be payable hereunder for the period that said premises
shall be wholly untenantable, provided that in the event any of the casualties is caused by
carelessness, negligence or improper conduct of Tenant, or of Tenant’s agents, employees,
contractors or invitees, the rental shall not be so abated.
All fixtures or improvements placed on the premises by Tenant, which shall be damaged or
destroyed, shall be repaired and replaced by Tenant at its own expense and not at the expense of
Landlord.
If any of the glass or plate glass in the premised shall be damaged or become broken from the
inside, Tenant shall replace, at Tenant’s own cost and expense, all such glass or plate glass
broken. If the glass is damaged or broken from the outside, Landlord shall replace the same at its
own cost and expense.
14. Repairs and Maintenance. Landlord shall bear the entire expense of all repairs,
maintenance, alterations, or improvements to the basic structure (exterior walls, roof, heating,
ventilating, air conditioning, electrical, plumbing and other systems on the premises). Landlord
shall, in addition, bear the entire expense for the repair and maintenance of the parking area,
including landscaping and keeping the parking area free of rubbish, ice and snow. Tenant shall pay
at its own expense, all repairs, maintenance, and alterations of Tenant installed fixtures or
improvements and utilities.
15. Utilities, Taxes Etc. Tenant shall pay for all telephone, water/sewer,
electricity, natural gas, fire system monitoring, security systems, and janitorial services used in
the operation of the premises. Tenant agrees to pay for replacement of light bulbs. Landlord shall
pay for all real property taxes and assessments levied and assessed against the premises and for
snow removal and lawn maintenance.
16. No Smoking Policy. There will be no smoking allowed anywhere in the premises by
anyone. It will be Tenant’s responsibility to convey to and enforce this policy by its employees,
agents and all other invitees.
17. Paragraph Headings. The paragraph headings in this instrument are for convenience
only and do not limit or construe the contents or any paragraphs.
18. Severability. It is the intent of the parties that if a part of this Lease is
invalid, all valid parts that are severable from the invalid part shall remain in effect. If a part
of this Lease is invalid in one or more of it applications, that part remains in effect in all
valid applications that are severable from the invalid applications.
19. Landlord’s Liability. The term “Landlord” as used herein shall mean only the owner
or owners at the time in question of the premises. In the event of any transfer of such title or
interest, Landlord herein named (and in case of any subsequent transfers the then grantor) shall be
relieved from and after the date of such transfer of all liabilities as respects Landlord’s
obligations thereafter to be performed, provided that any funds in the hands of Landlord or the
then grantor at time of such transfer in which Tenant has an interest shall be delivered to the
grantee, who shall assume the obligations of Landlord or the then grantor to Tenant with respect to
those funds. The obligations contained in this Lease to be performed by Landlord shall, subject to
the foregoing provisions of this paragraph 19, be binding on Landlord’s successors and assigns.
20. Supersedes. This Lease supersedes all prior agreements between the parties.
21. Exercise of Rights. The omission of Landlord or Tenant to exercise any right
provided for on the default of the other at any time shall not preclude Landlord or Tenant from the
exercise of such right at any subsequent default of the other or be deemed a waiver thereof or the
right to do so.
22. Binding
Effect. This Lease shall be binding upon and inure to the benefit of the heirs,
successors, administrators, and permitted assigns of the parties hereto.
23. Security Deposit. At the execution of this Lease, Landlord acknowledges Tenant has
paid Landlord the sum of $10,000 as a security deposit. Landlord shall hold and use the security
deposit as security for Tenant’s performance of its obligations under this Lease. At the
termination of this Lease and if at that time Tenant has fully complied with all of its obligations
under this Lease, Landlord shall return the security deposit, without interest (or the part of the
security deposit which Landlord has not applied to satisfy Tenant’s obligations under this Lease),
to Tenant
24. Governing Law. This Agreement and all matters relating thereto shall be governed
by the laws of Montana..
25. Arbitration. Any dispute under this Lease shall be decided by binding arbitration
initiated and conducted in accordance with the commercial arbitration rules of the American
Arbitration Association (“AAA”). The parties shall decide upon the arbitrator. If the parties are
unable to decide upon the arbitrator within ten (10) days after a notice from one party to the
other that a dispute exists under this Lease, the AAA shall select the arbitrator. The decision of
the arbitrator shall be binding. All costs of arbitration shall be borne by the party the
arbitrator determines to be the non-prevailing party. Such costs shall include the costs and
reasonable attorneys’ fees of the prevailing party.
IN WITNESS WHEREOF, the parties have hereunto set their hands as of the date and year first written
above.
| GENESIS PARTNERS, LLC — Landlord |
||||
| By: | ||||
| /s/ Xxxxx Xxxxxx | 2/16/10 | |||
| Xxxxx Xxxxxx, member — Landlord | date | |||
| /s/ Xxxxx Xxxxxx | 2/18/2010 | |||
| Xxxxx Xxxxxx, member — Landlord | date | |||
| /s/ Xxxx Xxxxxxxxx | 2/16/10 | |||
| Xxxx Xxxxxxxxx, member — Landlord | date | |||
| Right Now Technologies, Inc. — Tenant |
||||
| By | /s/ Xxxx Xxxxxxx | 2/19/10 | ||
| Xxxx Xxxxxxx | date | |||
| Chief Financial Officer | ||||
