THIRD AMENDMENT TO LEASE AGREEMENT
THIRD AMENDMENT TO LEASE AGREEMENT
Exhibit 10.29
THIS THIRD AMENDMENT TO LEASE AGREEMENT (“Third Amendment”) is entered into on
September 30, 2003, by XXXX COMPANIES US, INC., a Minnesota corporation (“Landlord”),
PEGASUS SOLUTIONS COMPANIES, a Delaware corporation (“Tenant”), and PEGASUS SOLUTIONS, INC.,
a Delaware corporation (“Guarantor”).
Recitals:
A. Landlord and Tenant entered into that certain Lease Agreement (“Lease”)
for the Premises dated September 14, 2001, as amended by the First Amendment to
Lease Agreement dated as of June 28, 2002, and by the Second Amendment to Lease
Agreement dated February 28, 2003. Undefined capitalized terms in this Third
Amendment are defined in the Lease.
B. Tenant desires to lease an additional 19,975 square feet of Rentable Area
on the third floor of the Building (the “Expansion Space”) for a term coterminous with
the existing Term of the Lease.
C. Upon execution of this Amendment by the parties hereto, the Rentable
Area of the Premises will be 144,959 square feet (as calculated and certified by the
Project Architect) which represents the entire Rentable Area of the Building.
D. Landlord and Tenant wish to amend the Lease to provide for the
expansion of Tenant’s Premises.
Covenants:
NOW, THEREFORE, for good and valuable consideration, the receipt and sufficiency
of which are hereby acknowledged, Landlord and Tenant agree as follows:
1. Landlord will cause Xxxx Companies US, Inc. as the general contractor to
construct and install the tenant improvements for the Expansion Space (the “Expansion
Space Tl”). The Expansion Space Tl will be the improvements shown on the plan
(“Plan”) for the Expansion Space prepared by Evolution Design, who has been
designated by Landlord and Tenant as the Architect for the Expansion Space. If the
Plan has not been completed by the date of this Third Amendment, Landlord and
Tenant will work diligently with the Architect to complete the Plan.
2. Landlord will contribute Forty Dollars ($40.00) per rentable square foot in
the Expansion Space for the cost of design, space planning, construction and
installation of the Expansion Space Tl (“Allowance”). The general contractor will
receive a total fee of eight percent (8%) of the cost of the Expansion Space Tl for its
profit and overhead together with its general conditions and all sales and excise taxes
(“Markups”). The Markups will be a charge against the Allowance. If the final cost of the
Expansion Space Tl exceeds the Allowance, Tenant will reimburse Landlord for the overage before
taking occupancy of the Expansion Space unless Landlord in its sole discretion elects in writing
to amortize the overage over the Term of the Lease.
3. Landlord will deliver the space to Tenant fifty working days (50) from
issuance of a building permit, as such date may be extended by reason of Tenant Delay
or Force Majeure. Any delay in Substantial Completion will not affect the terms and
conditions of the Lease or Tenant’s obligations to Landlord. If Substantial Completion
does not occur on or before thirty (30) days after the 50 working days (the “Adjusted
Delivery Date”), as such date may be extended by reason of Tenant Delay or Force
Majeure, then Tenant’s sole and exclusive remedy will be to receive one (1) day of free
rent credit (for the Expansion Space only) for each day after the Adjusted Delivery Date
until the date of Substantial Completion.
4. The Term of the Lease as to the Expansion Space (the “Expansion
Space Term”) will commence five (5) calendar days after Substantial Completion of the
Expansion Space Tl (the “Expansion Space Commencement
Date”), and will expire
on January 31, 2013 unless the Lease is sooner terminated or thereafter extended as
provided in the Lease.
5. Beginning on the Expansion Space Commencement Date:
| a. | The Rentable Area of the Premises will be increased by the Rentable Area of the Expansion Space which will be calculated by the Architect. | ||
| b. | Tenant’s share of Operating Costs for the Building will be one hundred percent (100%). | ||
| c. | Tenant will pay Annual Base Rent to Landlord for the Expansion Space (in addition to Annual Base Rent for the existing Premises) calculated as set forth below, without prior notice or demand, monthly in installments on the first day of each calendar month during the Term: |
| Years 1–5 | $17.59 per rentable square foot, net of Operating Costs | |||
| Years 6 - End of initial 10-year term $20.23 per rentable square foot, net of Operating Costs | ||||
6. Landlord will pay CB Xxxxxxx Xxxxx and Colliers Classis a brokerage
commission on this transaction per separate agreements with the brokers.
7. Guarantor consents to this Third Amendment.
8. Except
as otherwise expressly provided herein, all other terms and
conditions of the Lease will apply to the Expansion Space commencing on the
Expansion Space Commencement Date unless patently inapplicable.
9. In the event of any inconsistency between the provisions of the Lease (as
earlier amended) and this Third Amendment, this Third Amendment will govern. Except
as expressly provided above, the Lease (as earlier amended) will remain in full force
and effect without change.
LANDLORD:
|
TENANT: | |
XXXX COMPANIES US, INC.,
|
PEGASUS SOLUTIONS COMPANIES, | |
a Minnesota corporation
|
a Delaware corporation |
| By: | By: | |||||||||||||
| Its: | Its: | |||||||||||||
| GUARANTOR: | ||||||||||||||
| PEGASUS SOLUTIONS,
INC., a Delaware corporation |
||||||||||||||
| By: | ||||||||||||||
| Its: | ||||||||||||||
