Exhibit 10.3

 

STATE OF NORTH CAROLINA

   

COUNTY OF WAKE

 

SECOND LEASE AMENDMENT

 

This Lease Amendment (the “Amendment”) is made and entered into this 10th day of
October, 2002, by and between Rexford, LLC, a North Carolina Limited Liability
Company, hereinafter referred to as “Landlord” and Tangram Enterprise Solutions,
Inc., hereinafter referred to as “Tenant”;

 

WITNESSETH:

 

THAT WHEREAS, Landlord and Tenant entered into a certain Lease Agreement (the
“Lease”) dated December, 23, 1996 for certain premises (the “Premises”) known as
Suite 301 and Suite 401 containing approximately 49,574 rentable square feet on
the third and fourth floors of the building (the “Building”) located at 11000
Regency Parkway, Cary, North Carolina, and amended May 25, 2000 increasing the
Premises from 49,574 to 64,084; and

 

WHEREAS, Landlord and Tenant have agreed to amend the Lease; and

 

NOW THEREFORE, in consideration of the foregoing premises, and other good and
valuable consideration, the receipt and sufficiency of which is hereby
acknowledged, the parties hereto agree to amend the Lease as follows:

 

  1.   Effective Date: Except as stated otherwise, this amendment shall be
effective on October 1, 2002.

 

  2.   Premises: As of the Effective Date, the Demised Premises shall be Suite
301 and shall contain approximately 16,087 useable square feet and 18,500
rentable square feet (the “New Demised Premises”) as outlined in Exhibit A to
this Second Lease Amendment.

 

  3.   Rent: Monthly Base Rent shall be as set out below:

 

October 1, 2002 to September 30, 2003:     $29,291.67

October 1, 2003 to September 30, 2004:     $29,831.25

 

  4.   Reimbursement of Construction Costs: Tenant shall continue to pay five
hundred forty-three and 11/100 dollars ($543.11) per month through June 30, 2004
for the amortization of construction costs, previously agreed to under the
Lease.

 

  5.   Operating Expenses: Tenant’s Pro Rata Share of Operating Expenses shall
be changed to seven and 3/10 percent (7.3%).

 

  6.   Vacate Premises: Tenant shall vacate the Original Demised Premises, and
the Expansion Office Space, except for the New Demised Premises, on or before
October 31, 2002. Landlord and Tenant agree that Tenant may leave workstations
and furniture (the “Furnishings”) in the Original Demised Premises after October
31, 2002 at no additional charge to Tenant and Paragraph 9, Indemnification and
Insurance, of the Lease shall apply to all areas where Tenant has Furnishings
outside the New Demised

--------------------------------------------------------------------------------

Premise, as if Tenant leased such space. Furthermore, Tenant agrees to remove
such Furnishings anytime after October 31, 2002 with at least two weeks prior
written notice from Landlord.

 

  7.   Contingency: In order to induce Landlord to amend the Lease, Tenant has
agreed to pay Landlord a fee equal to six hundred seventy-three thousand eight
hundred sixty-two and 08/100 dollars ($673,862.08) of which six hundred sixty
thousand dollars ($660,000.00) has already been paid into an escrow account with
Landlord’s attorney. With the execution of this Second Lease Amendment by
Tenant, Tenant shall release the funds held in escrow to the Landlord and shall
submit a certified check to the Landlord in the amount of thirteen thousand
eight hundred sixty-two and 08/100 dollars ($13,862.08).

 

  8.   Signage: Tenant shall have no rights to any signage outside the New
Demised Premises and shall remove all signage that exists outside the New
Demised Premises and shall repair any damage as a result of such removal.

 

  9.   Reception Area: If Tenant elects to lease the Reception Area (the
“Reception Area”), as outlined in Exhibit B after December 31.2002, Tenant shall
give written notice to Landlord by December 15, 2002 and Landlord shall install
a mutually agreed upon demising wall and entrance at Tenant’s costs. If Tenant
elects to vacate the Reception Area Tenant must do so by December 31, 2002 and
Landlord will adjust the square footage of the New Demised Premises by the
square footage of the Reception Area.

 

  10.   Ratification. Except as specifically amended hereby, the Lease shall
remain in full force and effect, and the same is hereby ratified approved and
affirmed.

 

The remainder of this page is intentionally blank

Signature page is attached hereto and incorporated herein by reference

--------------------------------------------------------------------------------

IN WITNESS WHEREOF, the parties hereto have executed this Second Lease Amendment
as of the day and year first above written.

 

LANDLORD: Rexford, LLC

BY: Grubb Management, Inc., Manager

/s/ Salvatore G. Cammarata                      (SEAL)

--------------------------------------------------------------------------------

Salvatore G. Cammarata, Vice President

 

ATTEST:

 

--------------------------------------------------------------------------------

Corporate Secretary

 

(CORPORATE SEAL)

 

TENANT: Tangram Enterprise Solutions, Inc.

By:

 

/s/ John N. Nelli                        (SEAL)

--------------------------------------------------------------------------------

Printed Name:

 

John N. Nelli

--------------------------------------------------------------------------------

Title:

 

Senior VP and CFO

--------------------------------------------------------------------------------

 

ATTEST:

 

--------------------------------------------------------------------------------

            Secretary

 

(CORPORATE SEAL)