printer-friendly

Sample Business Contracts

Minnesota-Minneapolis-Retek Plaza Lease [Amendment No. 1] - Ryan 900 LLC and Retek Inc.

Free Customizable Lease Forms

  • Commercial Lease. Start a state-specific lease for the rental of commercial property. Specify the term and rent due, as well as whether the landlord or tenant is responsible for property taxes, insurance, and maintenance and repairs.
  • Commercial Sublease. When a tenant vacates commercial property before the lease term has expired, it may be able to rent the premises to a third party. The tenant would be the sublessor and the third party would be the sublessee. Besides preparing a sublease, both parties will want to review the provisions for assignment or subletting in the original lease agreement between the landlord and the sublessor.
  • Sublease Agreement. Tenants of residential property should prepare a sublease agreement if they are seeking to sublease a room or the entire apartment or house to a third party. All parties should review the original lease agreement to see if there are any restrictions on subletting or assigning the premises.
  • Triple Net Lease. Triple net leases are a type of commercial leases where the tenant has to pay for property taxes, insurance, utilities, and maintenance, in addition to the monthly rent.
  • Office Space Lease. When renting an office space, tenants should understand the amount of the rent and duration of the lease. Other important terms include whether the space can be subleased, which parties are responsible for maintenance, and whether any furniture and furnishings will be provided.

Sponsored Links

                            FIRST AMENDMENT TO LEASE


This First Amendment to Lease, dated as of August 9, 2000 (Amendment),
between RYAN 900, LLC, a Minnesota limited liability company (Landlord), and
RETEK INC., a Delaware corporation (Tenant);

WITNESSETH, that:

WHEREAS, Landlord and Tenant have entered into a Lease dated November 8, 1999
(Lease) for approximately 217,775 rentable square feet on the 8th, 9th, 10th,
11th and 12th floors of the building being developed by Landlord on the block
bounded by Nicollet Mall, LaSalle Avenue, South 9th Street and South 10th Street
in the City of Minneapolis, County of Hennepin, State of Minnesota; and

WHEREAS, Landlord and Tenant desire and intend hereby to amend the Lease as
specifically hereinafter set forth and provided.

NOW, THEREFORE, in consideration of the mutual terms hereof, Landlord and Tenant
agree that the Lease shall be and hereby is amended as follows:

1.       The description of the Premises contained in the Basic Lease
         Information is hereby deleted and replaced in its entirety by the
         following:

         "The Premises will be delivered to Tenant in three phases.

         As of the Commencement Date, the Premises will consist of floors 10 and
         11 and portions of floor 4 and floor 5 of the Building. Each of floors
         10 and 11 consists of approximately 43,505 square feet of Rentable
         Area. The portion of floor 5 included in the Premises consists of
         approximately 26,520 square feet of Rentable Area and is shown
         crosshatched on the 5th floor plan attached hereto as part of Exhibit
         A. The portion of floor 4 included in the Premises consists of
         approximately 42,058 square feet of Rentable Area, and is shown
         crosshatched on the 4th floor plan attached hereto as part of Exhibit
         A. As of the Commencement Date, the Premises will consist of
         approximately 155,588 square feet of Rentable Area.

         As of the later of a) the first day of the third (3rd) full month of
         the Term or b) December 1, 2001 ("Phase 2 Commencement"), the Premises
         will consist of floors 9, 10, 11 and said portions of floor 4 and floor
         5 of the Building. The 9th floor consists of approximately 43,505
         square feet of Rentable Area. As of the Phase 2 Commencement, the
         Premises will consist of approximately 199,093 square feet of Rentable
         Area.

         As of the later of a) the first day of the fifth (5th) full month of
         the Term or b) March 1, 2002 ("Phase 3 Commencement"), the Premises
         will consist of floors 8, 9, 10, 11 and said portions of floor 4 and
         floor 5 of the Building. The 8th floor consists of approximately 43,505
         square feet of Rentable Area. As of the Phase 3 Commencement, the
         Premises will consist of approximately 242,598 square feet of Rentable
         Area."


                                      -1-
<PAGE>   2

2.       The floor plans which are attached hereto as Exhibit A are substituted
         for the floor plans which are attached as Exhibit A to the Lease.

3.       The words "floors 10, 11 and 12" in the second sentence of Section 2.1
         are deleted, and the words "floors 10 and 11 and portions of floor 4
         and floor 5" are substituted in place thereof.

4.       Section 1.2 - Expansion Options - is hereby deleted and replaced in its
         entirety by the following:

         "1.2 Expansion Options. Subject to the terms and conditions set forth
         in this Section 1.2, Landlord grants to Tenant options to add space
         ("EXPANSION SPACE") to the Premises as follows:

                  (a) The maximum Expansion Space shall be approximately 98,510
         square feet of Rentable Area, to be leased at Tenant's option in two
         options (collectively, the "EXPANSION OPTIONS"). The first option
         ("FIRST EXPANSION OPTION") shall be at Tenant's election with respect
         to either seventh floor of approximately 43,505 square feet of Rentable
         Area or sixth and seventh floors each containing approximately 43,505
         square feet of Rentable Area in the Building ("FIRST EXPANSION SPACE").
         The second option ("SECOND EXPANSION OPTION") shall be for a portion of
         floor 4, as shown on the floor plan attached as Exhibit B, consisting
         of no less than 8,500 and no more than 11,500 square feet of Rentable
         Area ("SECOND EXPANSION SPACE").

                  (b) Tenant shall have the right to exercise its Expansion
         Options as follows: Tenant shall have the right to exercise the First
         Expansion Option no later than December 31, 2001. Tenant shall have the
         right to exercise the Second Expansion Option no later than the last
         day of the thirty sixth (36th) full month of the Term which, based upon
         the Scheduled Commencement Date, would be September 30, 2004. If Tenant
         shall fail to exercise any Expansion Option by the dates provided, it
         shall be deemed to have waived the right to exercise the Expansion
         Option in question. Each Expansion Option shall be exercised by Tenant
         giving written notice to Landlord of its election, and as to the First
         Expansion Option, Tenant's determination as to taking one or two
         floors.

                  (c) Unless accelerated as provided herein, Landlord shall
         deliver the First Expansion Space to Tenant, and such space shall
         become a part of the Premises, on the later of January 1, 2003, and the
         date Landlord delivers the First Expansion Space to Tenant with
         Landlord's Work Substantially Complete. The First Expansion Space shall
         be delivered to Tenant in a manner consistent with Section 2.1 as to
         Landlord's construction obligations set forth in the Construction Rider
         defined in Section 2.1 ("LANDLORD'S WORK"), Substantial Completion and
         conditions precedent to delivery to Tenant, and with the same Tenant
         Improvement Allowance provided to Tenant. Tenant shall provide Final
         Tenant Improvement Plans to Landlord for the First Expansion Space no
         later than August 1, 2002. Landlord shall deliver the Second Expansion
         Space to Tenant between the first day of the 39th full month of the
         Term and the first day of the 54th full month of the Term which, based
         upon the Scheduled Commencement Date, would be between December 1, 2004
         and March 1, 2006. The Second Expansion Space shall be delivered to
         Tenant in its "As-Is" condition, but constructed to at least the Base
         Building condition as specified in Exhibits D & E. If the


                                      -2-
<PAGE>   3

         Second Expansion Space has not been constructed beyond the Base
         Building condition set forth in Exhibits D & E, the determination of
         Market Rate will reflect the unimproved condition of the space. The
         space leased pursuant to the Second Expansion Option shall be added to
         the Premises on the date of delivery thereof by Landlord, but Tenant's
         obligation to pay Rent with respect thereto shall not commence until
         the earlier of (i) the date which is four (4) months after such
         delivery date, or (ii) the date on which Tenant commences using such
         space for business purposes.

                  (d) Within thirty (30) days of receiving Tenant's notice
         exercising the Second Expansion Option, Landlord shall give notice of
         Landlord's good faith estimate of the Market Rate for the Second
         Expansion Space. The Market Rate set forth in such notice by Landlord
         shall be controlling unless within thirty (30) days after such notice
         Tenant shall notify Landlord that it objects to Landlord's estimate of
         Market Rate, in which case the Market Rate shall be determined in
         accordance with Section 3.5 of this Lease. If the Market Rate has not
         been determined prior to the date when monthly Rent on the Second
         Expansion Space commences, then Tenant shall pay monthly Rent based
         upon Landlord's estimate until the monthly Rent has been determined, at
         which time Landlord shall pay to Tenant or Tenant shall pay to
         Landlord, as appropriate, the amount equal to the overpayment or
         underpayment of Rent for such Second Expansion Space.

                  (e) If at the time of exercise or at any time thereafter until
         the commencement of the Term as to any Expansion Space, an Event of
         Default exists under this Lease, Tenant will have no right to exercise
         its option as to the relevant Expansion Space and/or to lease such
         Expansion Space.

                  (f) Within ten (10) days after request by Landlord or Tenant,
         the parties will execute an amendment to this Lease, in the form
         prepared by Landlord, adding to the Premises any Expansion Space which
         Tenant has elected to lease, as of the date of commencement of the Term
         with respect to such Expansion Space, and otherwise upon the terms and
         conditions of this Lease.

         Tenant may elect to accelerate the Scheduled Commencement Date for the
         First Expansion Space. Upon written notice of Tenant's intent to
         accelerate the Scheduled Commencement Date and the space to which such
         acceleration applies, Landlord shall make a commercially reasonable
         effort to deliver such space in the condition provided for in this
         Lease as of the date specified by Tenant, but Landlord, acting
         diligently, shall have no liability for failing to so deliver.

         If Tenant exercises its occupancy acceleration right and Landlord
         delivers the First Expansion Space to Tenant prior to its scheduled
         delivery/commencement dates under the Lease and in the condition
         required under this Lease, Tenant shall receive a credit ("Rent
         Credit") against Rent due under this Lease for each month the
         respective delivery dates are accelerated. The Rent Credit will be
         applied against the first installments of Rent coming due after the
         respective accelerated delivery/commencement dates. If the respective
         scheduled delivery/commencement dates are accelerated for any partial
         month, the Rent Credit will be prorated for such partial month on the
         basis of the total number of days in that particular month. The Rent
         Credit will be an amount equal to $1.67 multiplied by the number of
         rentable square feet of space delivery of which is accelerated,
         multiplied by the number of months (or partial months) the respective
         scheduled delivery/commencement dates are accelerated.


                                      -3-
<PAGE>   4

         For example, if Tenant exercises its acceleration right with respect to
         the First Expansion Space (currently scheduled for delivery on January
         1, 2003) and Landlord delivers the First Expansion Space to Tenant on
         October 15, 2002 (with all of the delivery conditions of Section 2.1
         satisfied such that the commencement date for the First Expansion Space
         is October 15, 2002), Tenant will receive a Rent Credit equal to $1.67
         multiplied by the Rentable Area of the First Expansion Space multiplied
         by 2.484 (the partial month happens to be a month with 31 days, and 15
         divided by 31 equals 0.484 when rounded to 3 decimal points)."

5.       The description of Base Rent contained in the Basic Lease Information
         is hereby deleted and replaced in its entirety by the following:

         "Base Rent:
         Months 1-6: The sum of a) $18.12 per rentable square foot per year
         multiplied by 24,823 rentable square feet, plus b) $16.50 per rentable
         square foot per year multiplied by the square foot rentable area of the
         Premises in excess of 24,823 rentable square feet.

         Months 7-60: The sum of a) $18.12 per rentable square foot per year
         multiplied by 24,823 rentable square feet, plus b) $17.93 per rentable
         square foot per year multiplied by the square foot rentable area of the
         Premises in excess of 24,823 rentable square feet.

         Months 61-120: The sum of a) $18.12 per rentable square foot per year
         multiplied by 24,823 rentable square feet, plus b) $18.93 per rentable
         square foot per year multiplied by the square foot rentable area of the
         Premises in excess of 24,823 rentable square feet.

         Months 121-150: The sum of a) $19.62 per rentable square foot per year
         multiplied by 24,823 rentable square feet, plus b) $19.91 per rentable
         square foot per year multiplied by the square foot rentable area of the
         Premises in excess of 24,823 rentable square feet."

6.       The second paragraph of Section 3.1 is hereby deleted and replaced in
         its entirety by the following:

         "Tenant shall receive a credit in the amount of Two Hundred Eighty
         Thousand Nine Hundred Forty Seven and 00/100 Dollars ($280,947.00)
         against Base Rent first due under the terms of this Lease."

7.       Section 4 - SECURITY DEPOSIT - is hereby deleted and replaced in its
         entirety by the following:

         "4. Security Deposit. On or before January 31, 2000, Tenant shall
         deposit with Landlord the amount specified in the Basic Lease
         Information as the Security Deposit (the "SECURITY DEPOSIT") as
         security for the performance of Tenant's obligations under this Lease.
         Landlord may (but shall have no obligation to) use the Security Deposit
         or any portion thereof to cure any Event of Default under this Lease or
         to compensate Landlord for any damage Landlord incurs as a result of
         Tenant's failure to perform any of Tenant's obligations hereunder and
         for which Landlord is entitled to recover under the terms of this
         Lease. In such event Tenant shall pay to Landlord on demand an amount
         sufficient to replenish the Security Deposit. If Tenant is not in
         default at the expiration or termination of this Lease, Landlord shall,
         within thirty (30) days of such expiration or termination, return


                                      -4-
<PAGE>   5

         to Tenant the Security Deposit or the balance thereof then held by
         Landlord and not applied as provided above. Landlord may commingle the
         Security Deposit with Landlord's general and other funds. Landlord
         shall not be required to pay interest on the Security Deposit to
         Tenant.

         The initial amount of the Security Deposit shall be Eleven Million Nine
         Hundred Thousand and 00/100 Dollars ($11,900,000.00). If Tenant's Net
         Worth, consisting of Total Equity and Deferred Revenue, as determined
         in accordance with Generally Accepted Accounting Principles ("NET
         WORTH"), for a period of three (3) consecutive calendar years during
         the Term, as determined at the end of each quarter is greater than
         Seventy Five Million and 00/100 Dollars ($75,000,000.00), the amount of
         the Security Deposit shall, effective immediately on the first day of
         the fourth (4th) consecutive calendar year, be reduced by Three Million
         Seven Hundred Fifty Thousand and 00/100 Dollars ($3,750,000.00).
         Following the twelfth consecutive month after the Security Deposit has
         been reduced by Three Million Seven Hundred Fifty Thousand and 00/100
         Dollars ($3,750,000.00), in which Tenant's Net Worth is, as determined
         at the end of each quarter, greater than Seventy Five Million and
         00/100 Dollars ($75,000,000.00), the amount of the Security Deposit
         shall be reduced by an additional Three Million Seven Hundred Fifty
         Thousand and 00/100 Dollars ($3,750,000.00), effective on the first day
         of the thirteenth (13th) consecutive month.

         The amount of the Security Deposit shall, from time to time upon
         request by Tenant, be further reduced by an amount equal to any
         reduction in Landlord's obligation for Total Remaining Rent, as defined
         in Section 34 of the Lease, provided, however, that the amount of the
         Security Deposit shall not be reduced by reason of Landlord's payment
         of rent. In no event shall the amount of the Security Deposit be
         reduced pursuant to the terms of this paragraph by an amount greater
         than Four Million Four Hundred Thousand and 00/100 Dollars
         ($4,400,000.00).

         During such time as Tenant's Net Worth is greater than Seventy Five
         Million and 00/100 Dollars ($75,000,000.00), no Security Deposit shall
         be required. If as of the end of any fiscal quarter Tenant's Net Worth
         is less than Seventy Five Million and 00/100 Dollars ($75,000,000.00),
         Tenant shall promptly, but in any event within thirty (30) days,
         deposit with Landlord the amount provided for in this Section 4. The
         Security Deposit may be in the form of an unconditional and irrevocable
         letter of credit issued by a national bank reasonably acceptable to
         Landlord. Landlord may draw upon the letter of credit if it is not
         extended or replaced at least thirty (30) days prior to its expiration
         date. Landlord will accept Tenant's unaudited financial statement on
         January 31, 2000, to establish Tenant's Net Worth as of that date."

8.       The amount of the Security Deposit set forth in the Basic Lease
         Information is increased from $7,500,000.00 to $11,900,000.00.

9.       The Rentable Area of the Building set forth in the Basic Lease
         Information is changed from approximately 487,607 square feet to
         approximately 450,976 square feet. The estimated Tenant's Share as of
         the Commencement Date set forth in the Basic Lease Information is
         changed from 26.8% to 34.5%.


                                      -5-
<PAGE>   6

10.      The amount of the Landlord contribution toward the Tenant Improvements
         Allowance with respect to the Premises pursuant to paragraph 2.5(a) of
         Exhibit B to the Lease is hereby reduced by Thirty Five Thousand Two
         Hundred Sixty Three and no/100 Dollars.

11.      Section 36 - Project/Building Name is hereby deleted and replaced in
         its entirety by the following: "36. Project/Building Name. The name
         "Retek on the Mall" shall be affixed as primary building signage above
         the Nicollet Mall entrance to the Building. The Nicollet Mall lobby
         entrance shall be a shared entry for the benefit of Tenant and any
         other tenant occupying all or substantially all of the third floor of
         the Building." The name "Retek" shall be affixed as primary building
         signage at the Tenth Street entrance to the Building.

12.      Exhibit F to the Lease is deleted in its entirety.

13.      Storage Space: Landlord does hereby lease and Tenant does hereby take a
         storage area of approximately 8,000 square feet located on the
         Penthouse level of the Building, for the Term of the Lease, at an
         initial rental rate of $12.00 per square foot. The rental rate for the
         storage space shall be subject to adjustment at three year intervals to
         that charged for similar space in similar buildings in downtown
         Minneapolis, MN. Tenant may, at its sole discretion terminate this
         Lease as to the Storage Space demised by this section, as of the last
         day of each third year, upon ninety (90) days written notice to
         Landlord.

EXCEPT as expressly amended or supplemented herein, the Lease is and shall
remain and continue in full force and effect in accordance with its terms.

IN WITNESS WHEREOF, this Amendment is hereby executed and delivered as of the
date and year first above written.

LANDLORD:                  RYAN 900, LLC

                           BY: /s/ Tim Gray
                              --------------------------------------
                           ITS: CFO
                               -------------------------------------


TENANT:                    RETEK INC.

                           BY: /s/ Gregory A. Effertz
                              --------------------------------------

                           ITS: CFO
                               -------------------------------------


                                      -6-