Document:

Exhibit 10.2

 

FIRST AMENDMENT TO LEASE

 

this first amendment TO lease (this “Amendment”)
dated August 11, 2000 is intended to amend, and by this reference be incorporated
into, that certain Office Lease dated June 28, 1999; by and between Imperial promenade associates, LLC, a
Delaware limited liability company, as Landlord, and MSC. SOFTWARE CORPORATION,
a Delaware corporation, as Tenant (the “Lease”).

 

Where, and to the extent that, any of the
provisions contained in this Amendment are contrary to or inconsistent with any
provision contained in the Lease, the provisions contained in this Amendment
shall control. All terms not otherwise defined herein but defined in the Lease
shall have the same meaning in this Amendment as in the Lease.

 

The Lease shall be amended in the following respects:

 

1.            Amends Basic Lease
Provisions Item 2:

Address: “2” MacArthur Place

 

2.            Amends Basic Lease
Provisions Item 3:

Description of Premises: Floor(s) 2-7, and approximately 17,784
square feet on Floor 1. Suites 100, 200, 300,400, 500, 600, 700

Rentable Area: approximately 156,663 square feet (see Exhibit
“A-4”)

 

3.            Amends Basic Lease
Provisions Item 4:

Tenant’s Proportionate Share of Operating Costs: 38.5%

 

4.            Amends Basic Lease
Provisions Item 5:

The Basic Annual Rent shall be twelve (12) times the following monthly
amounts:

	
  Partial
  Lease Month:

  	
   

  	
  $    7,780.92 per day ($1.49/rentable sq.
  ft./mo NNN)

  
	
  Mos. 6-65:

  	
   

  	
  $233,427.87
  per month ($1.49/rentable sq. ft/mo NNN)

  

The remainder of Item 5 shall remain unchanged

 

5.            Supplements Basic
Lease Provisions Item 6:

Initial Monthly Installment of Basic Annual Rent Payable Upon Execution
of this Amendment: $47,113.80

 

6.            Amends Basic Lease
Provisions Item 14:

Addresses for Notices:

 

Landlord’s Address for notices is:

3 Imperial Promenade, Ste. 410

South Cost Metro, CA 92707

 

MSC.Software’s address after occupancy of the Premises will be:

2 MacArthur Place, Ste. 700

South Coast Metro, CA 92707

 

7.                                      Replaces Lease
Section 20(a):

 

Rental Abatement. As
consideration for Tenant’s performance of all of its obligations under the
Lease, Landlord hereby conditionally (i) grants Tenant a rent free
fixturization period during months one (1) and two (2) of the Lease Term in the
amount of $466,855.74 (i.e., $233,427.87 per month) (“Fixturization
Period”), and (ii) excuses Tenant from the payment of the monthly installment
of Basic Annual Rent during Months three (3) through five (5) of the term of
this Lease in the amount of $700,283.61 (i.e., $233,427.87 per month)
(“Deferred Rent Period”), together with Tenant’s Proportionate Share of
Operating Costs during such period, provided that Tenant shall not be in an
uncured material default in its obligations under this Lease during months
1-144 of the Lease term only. Should Tenant at any time during months 1-144 of
the Lease term be in default under this Lease and not cure such default within
the cure periods provided in this Lease, then the total sum of such Rent so
conditionally excused shall become immediately due and payable by Tenant to
Landlord.  If at the expiration of the
144th month of the term, Tenant has not so defaulted, Landlord shall waive any
payment of all such Rent so conditionally excused.

 

8.                                      Tenant has
requested and Landlord has agreed to move the current sixth (6th) floor executive floor plan
to the seventh (7th)
floor of the Building and to work with Landlord and Gensler to determine the
most appropriate floor plan for floor six. The changes contemplated for floors
six and seven (the “Revised Floors”) shall cause a Tenant Delay as defined in
the Work Letter.

 

1

 

Attached as Exhibit “A” is a schedule, representing the milestones for
the design and construction of the Revised Floors. The Commencement Date, as
set forth in the Lease, for the Premises (as modified by this Amendment) shall
be based on Substantial Completion of Floors 1 thru 5, and notwithstanding the actual date of Substantial Completion
for the Revised Floors. All other terms and conditions of the Work Letter shall
remain in full force and effect.

 

IN WITNESS WHEREOF, the parties have executed this Amendment as of the
date stated above.

 

 

	
  LANDLORD

  	
   

  	
  TENANT

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  IMPERIAL
  PROMENADE ASSOCIATES, LLC,

  a Delaware limited liablity company

  	
   

  	
  MSC.SOFTWARE
  CORPORATION,

  a Delaware corporation

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  By:

  	
   

  	
   

  	
  By:

  	
  /s/ Louis A
  Greco

  
	
   

  	
    Curtis R. Olson, Managing Member

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  Its:

  	
  LOUIS A. GRECO

  CHIEF FINANCIAL OFFICER

  
	
  Date:

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  Date: 

  	
  August 11, 2000

  
								

 

	
   

  	
   

  	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  Its:

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  Date: 

  	
   

  
								

 

2

 

Exhibit “A”

 

Revised Floors

Design and Construction Milestones

 

 

	
  Milestone

  	
   

  	
  Scheduled Completion Date

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Tenant Approval of Space Plan

  	
   

  	
  08/16/00

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Preliminary Budget Approval

  	
   

  	
  08/24/00

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Issue Construction Documents

  	
   

  	
  10/04/00

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Tenant Approval of Construction Documents

  	
   

  	
  10/18/00

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Issue Final Budget Estimate

  	
   

  	
  10/27/00

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Final Budget Estimate Approval

  	
   

  	
  11/01/00

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Building Permit

  	
   

  	
  11/09/00

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Tenant Improvements

  	
   

  	
  03/01/01

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Floor 6

  	
   

  	
  03/14/01

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Floor 7

  	
   

  	
  03/28/01

  	
   

  

 

3Exhibit 10.3

 

SECOND AMENDMENT TO LEASE

 

THIS SECOND AMENDMENT TO LEASE
(this “Amendment”), dated January 19, 2001 is intended to amend, and by this
reference be incorporated into, that certain Office Lease dated June 28, 1999
by and between IMPERIAL PROMENADE ASSOCIATES, LLC, a Delaware limited liability
company, as “Landlord”, and MSC.SOFTWARE CORPORATION, a Delaware corporation,
as “Tenant”, as previously amended by that certain First Amendment to Lease
dated August 11, 2000 by and between Landlord and Tenant (collectively, the
“Lease”).

 

Where, and to the extent that,
any of the provisions contained in this Amendment are contrary to or
inconsistent with any provision contained in the Lease, the provisions
contained in this Amendment shall control. All terms not otherwise defined
herein but defined in the Lease shall have the same meaning in this Amendment
as in the Lease.

 

The Lease shall be amended
in the following respects:

 

1.             Amends Basic Lease Provisions Item 3:

 

Description of Premises: Floors 1-7, approximately 13,547 square feet
of Floor 8, and Floor 9. Suites 100, 200, 300, 400, 500, 600, 700, 800 and 900

 

Rentable Area: approximately 194,005 square feet (see
Exhibit “A-4”)

 

2.             Amends Basic Lease Provisions Item 4:

 

Tenant’s Proportionate Share of Operating Costs:  47.7%

 

3.             Amends Basic Lease Provisions Item 5:

 

Basic Annual Rent (see Paragraphs 2 and 20) shall be twelve
(12) times the following monthly amounts:

 

	
  Months During Term

  	
   

  	
  Floors 1-7

  	
   

  	
  Floors 8 & 9

  	
   

  	
  Total

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Partial Lease Month:

  	
   

  	
  $

  	
  7,821.31

  	
   

  	
  per day ($1.49/rentable
  sq. ft./mo NNN)

  	
   

  	
  $2,732.82 per day
  ($2.15/rentable sq. ft/mo NNN for Floor 8; $2.30/rentable sq. ft./mo NNN for
  Floor 9)

  	
   

  	
  $10,554.13 per day

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Month 1

  	
   

  	
  $

  	
  1,254.58

  	
   

  	
   ($1.49/rentable sq. ft./mo NNN on  balance of Floor 1 leased under this Amendment) (but see Paragraph 20(a))

  	
   

  	
  $0.00 (unless
  Floors 8 & 9 Commencement Date [hereafter defined] occurs during such
  month)

  	
   

  	
  $1,254.58

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Months 2-5

  	
   

  	
  $

  	
  1,254.58

  	
   

  	
   ($1.49/rentable sq. ft./mo NNN on balance of Floor 1 leased under this Amendment) (but see Paragraph 20(a))

  	
   

  	
  $81,984.65
  ($2.15/rentable sq. ft./mo NNN for Floor 8; $2.30/rentable sq. ft./mo NNN for
  Floor 9 - commencing on Floors 8 & 9 Commencement Date [hereafter
  defined])

  	
   

  	
  $83,239.23 per month

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Months 6-65:

  	
   

  	
  $

  	
  234,639.24

  	
   

  	
   ($1.49/rentable sq. ft./mo NNN)

  	
   

  	
  $81,984.65
  ($2.15/rentable sq. ft./mo NNN for Floor 8; $2.30/rentable sq. ft./mo NNN for
  Floor 9)

  	
   

  	
  $316,623.89 per month

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Months 66-125:

  	
   

  	
  $

  	
   

  	
  *

  	
   

  	
   

  	
  $114,713.26 (12%
  increase over monthly rent during Months 6-65)

  	
   

  	
  *plus $114,713.26 per month

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Months 126-149:

  	
   

  	
  $

  	
   

  	
  **

  	
   

  	
   

  	
  $128,478.85
  (12% increase over monthly rent during Months 66-125)

  	
   

  	
  **plus $128,478.85 per month

  

 

1

 

*Commencing on the first day of the
sixty-sixth (66th) month of the term, Basic Annual Rent for Floors 1-7 shall be
increased by the percentage increase, if any, in the Consumer Price Index,
Urban Wage Earners and Clerical Workers (Los Angeles-Anaheim-Riverside region;
“All Items”; Reference Base Year 1982-1984=100), as published by the United
States Department of Labor, Bureau of Labor Statistics or its successor (the
“Index”), as follows: The Index for the second month preceding the first day of
the sixty-sixth (66th) month of the term shall be compared with the Index for
the second month preceding the Commencement Date, and the Basic Annual Rent for
Floors 1-7 then in effect shall be increased by the lesser of (i) the amount of
the percentage increase, if any, between them, or (ii) ten percent (10%); provided
however, in no event shall the Basic Annual Rent for Floors 1-7 be reduced
by reason of such computation. If the Index ceases to be published, is
published less frequently or is altered in any material respect, then Landlord
shall adopt, at its reasonable discretion, a substitute index or substitute
procedure which reasonably reflects and monitors changes in consumer prices.  

 

**Commencing on the first day of the one
hundred twenty-sixth (126th) month of the term, Basic Annual Rent for Floors
1-7 shall be increased by the percentage increase, if any, in the Index, as
follows: The Index for the second month preceding the first day of the one
hundred twenty-sixth (126th) month of the term shall be compared with the Index
for the second month preceding the sixty-sixth (66th) month of the term, and
the Basic Annual Rent for Floors 1-7 then in effect shall be increased by the
lesser of (i) the amount of the percentage increase, if any, between them, or
(ii) ten percent (10%); provided
however, in no event shall the Basic Annual Rent for Floors 1-7 be reduced
by reason of such computation. If the Index ceases to be published, is
published less frequently or is altered in any material respect, then Landlord
shall adopt, at its reasonable discretion, a substitute index or substitute
procedure which reasonably reflects and monitors changes in consumer prices.

 

***Amount includes monthly installments of
Basic Annual Rent on the Floor 8 Remainder Space (hereafter defined) pursuant
to Paragraph 6 of this Amendment.

 

4.             Supplements
Basic Lease Provisions Item No. 6:

 

Initial Monthly Installment of Basic Annual
Rent Payable Upon Execution of this Amendment:

$ 83,239.23

 

5.             Amends
Basic Lease Provisions Item 10:

 

Target Commencement Date for Floors 1-7: March
1, 2001

 

Target Commencement Date for Floors 8 & 9:  May 1, 2001

 

6.             Replaces
Lease Paragraph 20(d):

 

Expansion Obligation.  Landlord and Tenant acknowledge and agree that
a portion of Floor 8 having a square footage of approximately 9,506 rentable
square feet is currently occupied by another tenant, and that such space shall
not be available for occupancy by Tenant until approximately June, 2006 (the
“Floor 8 Remainder Space”). Notwithstanding the estimated availability date,
Tenant shall be obligated to lease the Floor 8 Remainder Space upon the first
date it becomes available. Tenant shall be obligated to lease the Floor 8
Remainder Space the later of (i) thirty days after Landlord’s delivery of
written notice to Tenant specifying that such space will be available, and (ii)
the actual date that Landlord makes the space available in accordance with this
Amendment.  Landlord shall use
commercially reasonable efforts to make the space available as soon as
practical after the existing tenant vacates the Floor 8 Remainder Space. Tenant
shall be obligated to commence paying Basic Annual Rent on the Floor 8
Remainder Space on the date that Landlord makes such space available to Tenant
with all debris and personal property of the existing tenant removed therefrom
(such date being hereinafter the “Floor 8 Remainder Space Commencement Date”).
From and after the Floor 8 Remainder Space Commencement Date, monthly
installments of Basic Annual Rent shall be increased by the amount of
$20,437.90 per month, subject to adjustment in accordance with Item 5 of the
Basic Lease Provisions; provided,

 

2

 

however, that if the Floor 8
Remainder Space Commencement Date occurs on a date other than the first (1st) day of a calendar month, then Tenant shall pay rent on the Floor 8
Remainder Space for such Partial Lease Month in the amount of $681.26 per day
for each day of such partial month from and after the Floor 8 Remainder Space
Commencement Date. In addition, from and after the Floor 8 Remainder Space
Commencement Date:

 

(i)            Basic Lease Provisions Item 3 shall be deemed
amended as follows:

 

Description of Premises: Floors 1-9. Suites 100, 200, 300, 400, 500,
600, 700, 800, and 900.

 

Rentable Area: Approximately 203,511 square feet (see Exhibit “A-4”)

 

(ii)           Item 4 of the Basic Lease Provisions shall be
deemed amended as follows:

 

Tenant’s Proportionate Share of Operating Costs: 50%

 

7.                                       In connection with the tenant improvements
for Floor 8 (other than the Floor 8 Remainder Space) and Floor 9 only (the
“Floors 8 & 9 Tenant Work”), Landlord shall provide Tenant with an
allowance in the amount of up to Thirty Dollars ($30.00) per usable square foot
of Floor 8 (other than the Floor 8 Remainder Space) and Floor 9 to be used towards
the cost of the design, purchase and construction of the Floors 8 & 9 Tenant
Work, including without limitation all permits and fees, contractors’ charges and
general conditions, performance bond premiums, and construction management fees.
Tenant shall pay the excess of all costs to complete the Floors 8 & 9
Tenant Work over the amount of such allowance available to defray such costs.
Prior to commencement of such Floors 8 & 9 Tenant Work, Landlord shall
prepare and submit to Tenant a written estimate of the costs incurred to date
on such work, the estimated remaining cost to complete such work, and any
amount of such costs in excess of the allowance. Within five (5) days after
receipt of such notice, Tenant shall deliver to Landlord the full amount of
such excess. In addition, within sixty (60) days after completion of the Floors
8 & 9 Tenant Work, Landlord shall determine the actual final costs
therefore and shall submit a written statement of such amount to Tenant. If any
estimate previously paid by Tenant exceeds the amount due hereunder from Tenant
for such work, such excess shall be refunded to Tenant; if any amount is still
due from Tenant for such work, then Tenant shall pay such amount in full within
ten (10) days of receipt of Landlord’s statement. All other terms and
conditions of the existing Work Letter to the Lease, where applicable, shall
apply to the Floors 8 & 9 Tenant Work. With respect to the Floor 8
Remainder Space, if Tenant timely and validly meets its Expansion Obligation as
outlined herein, and such Floor 8 Remainder Space has been previously
built-out, Landlord shall provide Tenant with an improvement allowance of Ten
Dollars ($10.00) per Usable Square Foot of the Floor 8 Remainder Space. If such
portion of the Floor 8 Remainder Space has not been previously built-out,
Landlord shall provide Tenant with an improvement allowance of Thirty Dollars
($30.00) per Usable Square Foot of the Floor 8 Remainder Space. Notwithstanding
the foregoing, (i) Landlord shall, at Landlord’s expense, provide bathrooms on
Floors 8 and 9 meeting the same standards as previously agreed between Landlord
and Tenant for Floors 1-7, and (ii) Landlord shall at Landlord’s expense
install Fiber MPOE Room in an area to be designated by Landlord in the portion
of Floor 1 being leased by Tenant under this Amendment, and such area shall be
designated as a part of the Common Areas of the Building.  The square footage and the rent associated
with such MPOE room, if necessary, shall be deducted from Tenant’s Premises and
shall be confirmed by Lease amendment.

 

8.                                       Notwithstanding the Target Commencement Dates
set forth in Item 10 of the Basic Lease Provisions, Paragraph 1(b) of the Lease
or Paragraph 7 of the Work Letter, (i) the Commencement Date, as set forth in
the Lease, for the Premises (as modified by this Amendment) shall be based on
substantial completion (as defined in Paragraph 7 of the Work Letter) of Floors
1 (excluding that portion of
Floor 1 leased under this Amendment) through 5 only, and notwithstanding the
actual date of substantial completion for the balance of Floor 1 or Floors 6
through 9, and (ii) Tenant’s obligation

 

3

 

to commence the payment of
monthly installments of Basic Annual Rent on Floors 8 and 9 shall commence on
the earlier to occur of substantial completion of the Floors 8 & 9 Tenant
Work or May 1, 2001 (such earlier date being hereafter the “Floor 8 & 9
Commencement Date”), and if such Floors 8 & 9 Commencement Date occurs on a date other than the first
(1st) day of the calendar month, then Tenant
shall pay rent on Floors 8 and 9 for such Partial Lease Month in the amount set
forth in Item 5 of the Basic Lease Provisions for each day of such partial
month from and after the Floors 8 & 9 Commencement Date. Notwithstanding
the foregoing, subject to Tenant Delays and delays outside of the reasonable
control of Landlord, commonly considered force majeure, Landlord shall use
commercially reasonable efforts to substantially complete the Floors 8 & 9 Tenant
Work as soon as possible.

 

IN WITNESS
WHEREOF, the parties have executed this Amendment as of the date stated above.

 

	
  LANDLORD

  	
   

  	
  TENANT

  
	
   

  	
   

  	
   

  
	
  IMPERIAL
  PROMENADE ASSOCIATES, LLC,

  a Delaware limited liability company

  	
   

  	
  MSC SOFTWARE CORPORATION,

  a Delaware corporation

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  By:

  	
  /s/ Curtis
  R. Olson

  	
   

  	
  By:

  	
  /s/ Frank
  Perna

  
	
   

  	
    Curtis R. Olson, Managing Member

  	
   

  	
   

  	
  Its:

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Date:

  	
  1-22-01

  	
   

  	
  Date: 

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  By:

  	
  /s/ Louis A.
  Greco

  
	
   

  	
   

  	
   

  	
   

  	
  Its:

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  Date: 

  	
  1-17-01

  
										

 

4

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