EXHIBIT 10.24

 

THIRD AMENDMENT TO LEASE AGREEMENT

 

THIS THIRD AMENDMENT TO LEASE AGREEMENT (this “Third Amendment”) made this 14th
day of September, 2000 between NEW BOSTON BATTERYMARCH LIMITED PARTNERSHIP, with
a principal place of business at One Longfellow Place, Suite 3612, Boston,
Massachusetts 02114 (“Landlord”) and NETWORK ENGINES, INC. (hereinafter called
“Tenant”).

 

WHEREAS, the Landlord and Tenant entered into a Lease Agreement dated October
19, 1999, as amended by a First Amendment to Lease Agreement dated February 1,
2000 and a Second Amendment to Lease Agreement (the “Second Amendment”) dated
June 1, 2000 whereby the demised premises were expanded to include the
“Expansion Space” (the lease as amended is hereinafter referred to as the
“Lease”).

 

WHEREAS, the parties desire to otherwise amend the Lease;

 

NOW, THEREFORE, for good and valuable consideration, the receipt and sufficiency
of which are hereby acknowledged, and for the mutual promises hereinafter set
forth, Landlord and Tenant agree to amend the Lease, effective as of the date
hereof, as follows:

 

1) Section XLV, Security Deposit, is amended by deleting the last sentence of
the first paragraph and substituting therefor the following:

 

“If at any time after the Commencement Date hereof, Tenant issues an initial
public stock offering that realizes a minimum of $20,000,000.00, the security
deposit will immediately be reduced to $46,525.10.”

 

2) Section V, subsection (A) (2) (as amended by the Second Amendment) is amended
by deleting the following from the end thereof:

 

“In addition to the foregoing, Landlord shall provide an allowance of up to
$115,795.00 (the ‘Expansion Space TI Contribution’) towards the cost of
performing approved Tenant improvements to the Expansion Space (which approval
shall not be unreasonably withheld or delayed and shall be granted in accordance
with the provisions of Section V, subsection (A)(1) hereof), which Tenant
improvements (‘Landlord’s Expansion Space Work’) shall be included in Landlord’s
Work and constructed subject to the terms and conditions of this Lease with
respect to such Landlord’s Work. All references in this Lease to the Landlord’s
Work shall be deemed to include Landlord’s Expansion Space Work.”

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3) Section V, subsection (b) Tenant’s Work. is hereby amended by inserting the
following at the end thereof:

 

“Landlord shall provide an allowance of up to $115,795.00 (the ‘Expansion Space
TI Contribution’) towards the cost of performing approved Tenant improvements to
the Expansion Space (which approval shall not be unreasonably withheld or
delayed and shall be granted in accordance with the provisions of this Section
V, subsection (b), which Tenant improvements (‘Tenant’s Expansion Space Work’)
shall be included in Tenant’s Work and constructed subject to the terms and
conditions of this Lease with respect to such Tenant’s Work. All references in
this Lease to the Tenant’s Work shall be deemed to include Tenant’s Expansion
Space Work.

 

The Expansion Space TI Contribution shall be payable by Landlord to Tenant
within thirty (30) days of written demand therefor, such demand to be
accompanied by copies of paid bills, lien waivers, and other evidence that
Landlord reasonably requires to satisfy itself as to the amount spent and the
items for which such amount was spent. Tenant shall be entitled to that portion
of the Expansion Space TI Contribution equal to the amount of approved costs
actually incurred by Tenant, and shall not be entitled to any portion of the
Expansion Space TI Contribution in excess thereof in cash, credit or otherwise;
any and all costs incurred by Tenant in excess of the Expansion Space TI
Contribution shall be borne by Tenant. Notwithstanding the above, at the request
of Tenant, Landlord shall pay all or a portion of the Expansion Space TI
Contribution directly to Tenant’s contractors or subcontractor’s, upon written
notice from Tenant’s designated authorized representative, at this time Jim
Herlihy, certifying to Landlord that the work has been completed (“Request for
Direct Payment to Contractor”). The Request for Direct Payment to Contractor
shall state the identity and amount due to each contractor, together with copies
of invoices, lien waivers, permits and certificates of occupancy as may be
required, and other evidence that Landlord reasonably requires to satisfy itself
that the amount to be spent and the items for which such amount will be spent
are approved costs.”

 

4) Except as modified herein, all other terms and conditions of the Lease, as
previously amended, will remain in full force and effect and are hereby
ratified.

 

5) This Third Amendment may be executed in multiple counterparts or with
multiple signature pages which, when taken together, shall be deemed to be fully
effective and operative as an original document.

 

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[THE REMAINDER OF THIS PAGE HAS BEEN INTENTIONALLY LEFT BLANK. SIGNATURE PAGE TO
FOLLOW.]

 

IN WITNESS WHEREOF, the parties hereto have caused this Third Amendment to be
executed by their duly authorized representatives as of the day and year first
above written.

 

LANDLORD:

NEW BOSTON BATTERYMARCH LIMITED PARTNERSHIP

 

By its General Partner

New Boston Fund IV, Inc.

By:      

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Title:   Chief Financial Officer  

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Date:

 

9-14-00

 

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TENANT:

NETWORK ENGINES, INC.

By:   /s/ Douglas G. Bryant  

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Title:   Chief Financial Officer  

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Date:

 

9-14-00

 

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FOURTH AMENDMENT TO LEASE AGREEMENT

 

THIS FOURTH AMENDMENT TO LEASE AGREEMENT (the “Amendment”) made this 14th day of
October, 2003 between DAN ROAD BUILDING LLC, a Delaware limited liability
company, with an address in care of Great Point Investors LLC, 98 North
Washington Street, 5th floor, Boston, MA 02114 (“Landlord”) and NETWORK ENGINES,
INC., a Delaware corporation, with an address of 15 Dan Road, Canton, MA 02021
(“Tenant”).

 

WHEREAS, New Boston Batterymarch Limited Partnership, Landlord’s
predecessor-in-interest, and Tenant entered into a Lease Agreement dated October
19, 1999, as amended by a First Amendment to Lease Agreement dated February 1,
2000, a Second Amendment to Lease Agreement dated June 1, 2000 and a Third
Amendment to Lease Agreement dated September 14, 2000 (as amended, the “Lease”),
pursuant to which Tenant leases approximately 51,935 rentable square feet at 15
Dan Road, Canton, Massachusetts (the “Initial Premises”) and approximately
23,159 rentable square feet at 45 Dan Road, Canton, Massachusetts (the
“Expansion Premises”);

 

WHEREAS, Tenant and its subtenant have vacated or are in the process of vacating
the Expansion Premises and Tenant has requested that, effective as of midnight
on October 31, 2003, Tenant be released from its obligations under the Lease
with respect to the Expansion Premises, and Landlord has agreed to do so on the
terms and conditions set forth herein;

 

WHEREAS, Tenant desires to extend the initial term of the Lease for the Initial
Premises through March 30, 2007, and Landlord has agreed to such extension on
the terms and conditions set forth herein; and

 

WHEREAS, Landlord and Tenant desire to memorialize their understanding and
modify the Lease consistent therewith.

 

NOW, THEREFORE, in consideration of the mutual covenants herein contained, and
other good and valuable consideration, the receipt and sufficiency of which are
hereby acknowledged, Landlord and Tenant agree that the Lease shall be amended
as follows:

 

1. Premises. Provided that the Expansion Premises have been vacated and
delivered to Landlord broom clean and vacant of all occupants (including any
subtenants) and otherwise in the condition required by the Lease on or before
October 31, 2003 and Tenant has paid the Termination Fee (as defined below), as
of November 1, 2003, Section I of the Lease is hereby amended by deleting the
second paragraph in its entirety and replacing it with the following:

 

The “Premises” are that portion of the building in Canton, Massachusetts having
a mailing address of 15 Dan Road (the “Building”), as shown on Exhibit A
attached hereto, consisting of approximately 51,935 square feet of net rentable
area at 15 Dan Road (the “Premises”). The Building, which consists of
approximately 142,072 square feet of net rentable area and the parcel of land
(as described in Exhibit A-1) on which both are located are referred to as the
“Property”.

 

2. Term. Section III of the Lease is hereby amended by deleting the first
sentence and replacing it with the following:

 

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“The term of this Lease shall be for a period commencing on March 15, 2000 (the
“Commencement Date”) and terminating at 11:59 p.m. on March 30, 2007 (the
“Termination Date”).”

 

3. Rent. Provided that the Expansion Premises have been vacated and delivered to
Landlord broom clean and vacant of all occupants (including any subtenants) and
otherwise in the condition required by the Lease on or before October 31, 2003
and Tenant has paid the Termination Fee, as of November 1, 2003, Section IV of
the Lease is hereby amended by deleting any provisions regarding Rent for the
Expansion Premises and by modifying the Rent for the Original Premises as
follows:

 

“Tenant shall pay “Rent” at the annual rate of $11.75 per square foot for the
Net Rentable Area of the Premises as set forth in Section I of this Lease.”

 

In the event that the Expansion Premises have not been vacated and delivered to
Landlord broom clean and vacant of all occupants (including any subtenants) and
otherwise in the condition required by the Lease on or before October 31, 2003,
but all of the other terms and conditions of this Fourth Amendment have been
met, then (1) Tenant will remain liable to pay to Landlord Rent, on a per diem
basis, until the Expansion Premises are vacated at the rate of $412 per day, and
(2) the amendments to the Lease set forth in Sections 1, 3 and 4 hereof shall be
effective as of the date that the Expansion Premises are vacated and delivered
to Landlord, broom clean and vacant of all occupants and otherwise in the
condition required by the Lease.

 

4. Additional Rent. Provided that the Expansion Premises have been vacated and
delivered to Landlord broom clean and vacant of all occupants (including any
subtenants) and otherwise in the condition required by the Lease on or before
October 31, 2003 and Tenant has paid the Termination Fee, as of November 1,
2003, (i) Section XI (a) is hereby amended to provide that “Tenant’s Building
Proportionate Share” shall be 36.56%; (ii) Section XI (b) is hereby amended to
provide that “Tenant’s Property Proportionate Share” shall be 18.90%; and (iii)
Section XI (g) is hereby amended to provide that “Taxes and Operating Costs
Excess” shall mean the amount by which the Aggregate Taxes and Operating Costs
in any calendar year exceed three and eighty-two one-hundredths dollars ($3.82)
per square foot per annum.

 

5. Termination Fee. As a condition to the effectiveness of this Amendment,
concurrently with its execution hereof, Tenant shall pay Landlord the sum of
Fifty Four Thousand Dollars ($54,000.00) (the “Termination Fee”).

 

6. Security Deposit. As a condition to the effectiveness of this Amendment, on
or before October 15, 2003, Tenant shall deliver to Landlord an amendment to
Letter of Credit No. SVB00IS1965 issued by Silicon Valley Bank, modifying the
expiration date of such Letter of Credit to April 30, 2007.

 

7. Renewal Option. The first sentence of Section XLX of the Lease shall be
modified to provide for an option for one Extended Term of three years instead
of one Extended Term of five years.

 

8. Brokers. Each party represents and warrants that except for Cushman &
Wakefield and CB Richard Ellis Whittier Partners (the “Brokers”), it has dealt
with no broker,

 

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agent, or other person in connection with this transaction and that, except for
the Brokers, no broker, agent or other person brought about this transaction and
each party agrees to indemnify and hold the other harmless from and against any
claims by any other broker, agent or other person claiming a commission or other
form of compensation by virtue of having dealt with the indemnifying party with
regard to this leasing transaction. The provisions of this paragraph shall
survive the termination of the Lease.

 

9. Incorporation. In all other respects, the terms and provisions of the Lease
are ratified and reaffirmed hereby, are incorporated herein by this reference
and shall be binding upon the parties to this Amendment. Tenant acknowledges
that as of the date of this Amendment, Tenant (a) is not in default under the
terms of the Lease; (b) is not aware of any defense, set-off or counterclaim to
the enforcement by Landlord of the terms of the Lease; and (c) is not aware of
any action or inaction by Landlord that would constitute a default under the
Lease.

 

10. Definitions. All capitalized terms used and not otherwise defined herein,
shall have the meanings ascribed to them in the Lease.

 

SIGNATURES FOLLOW ON NEXT PAGE

 

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IN WITNESS WHEREOF, Landlord and Tenant have caused this Amendment to be duly
executed, under seal, by persons hereunto duly authorized, in multiple copies,
each to be considered an original hereof, as of the day and year first above
written.

 

LANDLORD:

 

DAN ROAD BUILDING LLC

 

By:      

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Name:

Title:

 

TENANT:

 

NETWORK ENGINES, INC.

 

By:   /s/ Douglas G. Bryant  

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Name:   Douglas G. Bryant

Title:     Chief Financial Officer and VP - Finance & Administration

 

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